UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-0001
FORM 10-Q
(MARK ONE)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended March 31, 2005 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number 000-50706
ESCHELON TELECOM, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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41-1843131 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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730 Second Avenue |
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55402 |
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(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code: (612) 376-4400
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer as defined in Rule 12b-2 of the Exchange Act. Yes o No ý
As of May 11, 2005, the number of outstanding shares of the Registrant’s Common Stock, par value $.01 per share, was 5,568,587 shares; the number of outstanding shares of the Registrant’s Series A Convertible Preferred Stock, par value $.01 per share, was 77,526,136 shares, convertible into 97,032,770 shares of Common Stock; and the number of outstanding shares of the Registrant’s Series B Convertible Preferred Stock, par value $.01 per share, was 20,205,736 shares, convertible into 20,790,577 shares of Common Stock.
ESCHELON TELECOM, INC.
INDEX TO FORM 10-Q
2
Eschelon Telecom, Inc.
(In Thousands, Except Share and Per Share Amounts)
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December 31, |
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March 31, |
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(Unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
26,435 |
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$ |
13,080 |
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Restricted cash |
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722 |
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651 |
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Available-for-sale securities |
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6,194 |
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12,753 |
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Accounts receivable, net of allowance for doubtful accounts of $817 and $715, respectively |
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18,941 |
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19,156 |
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Other receivables |
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2,976 |
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2,891 |
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Inventories |
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2,873 |
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3,252 |
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Prepaid expenses |
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2,410 |
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1,948 |
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Discontinued assets held for sale |
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— |
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1,023 |
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Total current assets |
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60,551 |
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54,754 |
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Property and equipment, net |
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102,849 |
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102,960 |
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Other assets |
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1,985 |
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1,982 |
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Goodwill |
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38,776 |
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38,776 |
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Intangible assets, net |
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32,958 |
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33,374 |
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Total assets |
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$ |
237,119 |
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$ |
231,846 |
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Liabilities and stockholders’ deficit |
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Current liabilities: |
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Accounts payable |
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$ |
8,375 |
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$ |
8,536 |
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Accrued telecommunication costs |
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7,616 |
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8,403 |
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Accrued office rent |
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2,336 |
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2,282 |
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Accrued interest expense |
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4,070 |
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615 |
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Accrued expenses |
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5,998 |
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5,156 |
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Deferred revenue |
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7,300 |
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7,323 |
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Accrued compensation expenses |
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3,588 |
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4,381 |
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Capital lease obligation, current maturities |
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1,629 |
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1,369 |
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Discontinued liabilities held for sale |
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— |
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807 |
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Total current liabilities |
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40,912 |
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38,872 |
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Long-term liabilities: |
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Commitments and contingencies (See Note 5) |
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Other long-term liabilities |
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630 |
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772 |
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Capital lease obligation, less current maturities |
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2,824 |
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3,215 |
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Notes payable |
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137,778 |
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138,718 |
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Total liabilities |
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182,144 |
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181,577 |
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Series A convertible preferred stock, $0.01 par value per share; 100,000,000 shares authorized; issued and outstanding shares - 77,526,136 shares at December 31, 2004 and March 31, 2005 |
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48,155 |
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48,931 |
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Series B convertible preferred stock, $0.01 par value per share; 25,000,000 shares authorized; 20,000,000 shares issued and outstanding at December 31, 2004 and March 31, 2005 |
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15,000 |
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15,303 |
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Stockholders’ deficit: |
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Common stock, $0.01 par value per share; 200,000,000 shares authorized; issued and outstanding shares - 4,758,518 shares at December 31, 2004; and 4,894,208 at March 31, 2005 |
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48 |
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49 |
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Additional paid-in capital |
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115,832 |
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114,777 |
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Accumulated other comprehensive income |
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30 |
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55 |
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Accumulated deficit |
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(124,056 |
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(128,824 |
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Deferred compensation |
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(34 |
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(22 |
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Total stockholders’ deficit |
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(8,180 |
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(13,965 |
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Total liabilities and stockholders’ deficit |
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$ |
237,119 |
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$ |
231,846 |
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See accompanying notes.
3
Eschelon Telecom, Inc.