Global Crossing's Recurring Adjusted EBITDA up 91%, Cash Revenue up 46%, from Third Quarter of 1999, Pro Forma for M&A Activity

Data Products comprise 59% of Telecommunications Services Segment Cash Revenue for the quarter, up from 46% one year ago, Pro Forma for acquisitions and dispositions.

Announced sale of GlobalCenter to Exodus Communications for shares currently valued at approximately $3.2 billion, together with a 10-year agreement estimated to exceed $4 billion to be the primary provider of bandwidth to Exodus.

Announced agreement with Garban Intercapital to outsource its European and Asian communications network.

Financing to build the Global Crossing Network completed with the proceeds from Asia Global Crossing's recent IPO and debt financing.

The inauguration of service on South America Crossing and to Panama advances Latin America Network.

Commercial service initiated on Global Crossing's Voice over Internet Protocol (VoIP) backbone with seven VoIP gateway centers in North America now operational.

Hamilton, Bermuda - November 13, 2000 - Global Crossing Ltd. (NYSE: GX), which is building and offering services over the world's most extensive global IP-based fiber optic network, today reported third quarter 2000 financial results that exceeded the consensus estimates of analysts who follow the company. The Company reported, for its continuing operations, Cash Revenue of $1,367 million, Recurring Adjusted EBITDA of $355 million, and a Recurring Net Loss of $572 million, or $0.65 per share.

Tom Casey, Chief Executive Officer of Global Crossing, said, "We are very pleased to have once again exceeded our financial targets, and we continue to see strong demand. As we complete the sales of the ILEC and GlobalCenter, we will continue to sharpen our focus on our targeted customer sets: multinational corporations (MNC's), carriers, next-generation Internet service providers, and governments. Our top priority is to drive revenue growth from these customers, and increase margins by streamlining our organization and cost structure to match the requirements of serving these key customers."

Summary of Quarterly Results

Results for continuing operations exclude Global Crossing's incumbent local exchange carrier business (ILEC), which the Company has agreed to sell to Citizens Communications for an estimated $3.65 billion in cash. GlobalCenter, which the Company has agreed to sell to Exodus Communications, is included in the reported results from continuing operations, due to Global Crossing's continuing equity investment in Exodus. The Company's investment in Exodus will be accounted for on the equity basis following completion of the transaction.

Thus, the "Continuing Operations" section of the table below summarizes the quarterly results of the Company and its subsidiaries excluding the ILEC for the three months ended September 30, 2000 and June 30, 2000. Results for the three months ended June 30, 2000 include the results of IPC Communications and IXnet from June 15, 2000.

The "Discontinued Operations-ILEC" section of the table summarizes the quarterly operating results of the discontinued operations of the ILEC for the three months ended September 30, 2000 and June 30, 2000.

  Summary of Operations: Sequential

 

Three Months Ended

 

Change

 

September 30,

2000

 

June 30, 2000

 

Amount

 

Percent

 

(Unaudited)

 

(Unaudited)

 

(in millions)

Continuing Operations (1)

 

 

 

 

 

 

 

Cash Revenue

$1,367

 

$ 1,226

 

$141

 

      12%

Recurring Adjusted EBITDA

$   355

 

$  336

 

$  19

 

        6%

 

 

 

 

 

 

 

Discontinued Operations ILEC*

 

 

 

 

 

 

 

Cash Revenue

$   187

 

$  189

 

($  2)

 

     (1%)

Recurring Adjusted EBITDA

$   95

 

$    99

 

($  4)

 

     (4%)

 

 

 

 

 

 

 

 

*See accompanying schedules attached hereto.

 (1) The Reported amounts in the table above reflect the Company's quarterly results for continuing operations for the three months ended September 30, 2000 and June 30, 2000.  Results for the three months ended June 30, 2000 include the results of IPC Communications and IXnet from June 15, 2000.

 For comparability, most period-to-period comparisons throughout this press release will be discussed giving Pro Forma effect to all acquisitions (Frontier, Global Marine, Racal, Hutchison Global Crossing and IPC/IXnet) and for the dispositions of both the ILEC and GlobalCenter, as if each had occurred on January 1, 1999. Proforma year-over-year comparisons are summarized in the table below, and detailed proforma quarter-to-quarter comparisons are shown in the attached schedules.

 

Proforma Year-over-Year Comparisons (1)

 

Three Months Ended

 

Change

 

September 30,

2000

 

September 30, 1999

 

Amount

 

Percent

 

(Unaudited)

 

(Unaudited)

 

(in millions)

Global Crossing

 

 

 

 

 

 

 

Service Revenue

$     909

 

$     710

 

$     199

 

28%

Cash Revenue

$1,316

 

$     902

 

$  414

 

46%

Recurring Adjusted EBITDA

$   379

 

$   198

 

$   181

 

91%

 

 

 

 

 

 

 

Telecommunications Services Segment: 

 

 

 

 

 

 

 

Service Revenue

$   791

 

$ 625

 

$166

 

    27%

Cash Revenue

$1,198

 

$ 818

 

$380

 

    46%

Recurring Adjusted EBITDA

$   345

 

$ 180

 

$165

 

    92%

 

 

 

 

 

 

Telecommunications Services-Customers: 

 

 

 

 

 

 

 

Carrier Cash Revenue

$   756

 

$   397

 

 $359

 

     90%

Carrier Service Revenue

$   349

 

$   205

 

 $144

 

     70%

Commercial Service Revenue

$   402

 

$   375

 

 $ 27

 

       7%

Consumer Service Revenue

$   39

 

$    46

 

 ($  7)

 

   (15%)

Telecommunications Services-Products:

 

 

 

 

 

 

 

Data Cash Revenue

$   712

 

$ 379

 

$333

 

    88%

Data Service Revenue

$   306

 

$ 187

 

$119

 

    64%

Switched Voice Service Revenue

$   383

 

$ 336

 

$  47

 

     14%

CLEC Service Revenue

$   63

 

$   57

 

$    6

 

     11%

Consumer LD Service Revenue

$   39

 

$   46

 

($  7)

 

   (15%) 

(1) The Pro Forma amounts in the table above reflect, for both periods presented, the Company's acquisitions of Frontier, Global Marine, Racal, Hutchison Global Crossing and IPC/IXnet and the dispositions of both the ILEC and GlobalCenter, as if each had occurred on January 1, 1999. 

Highlights of the Quarter

Pro Forma Cash Revenue of $1,316 million was up 46% from the third quarter of 1999, and 4% sequentially from the second quarter 2000, while Pro Forma Recurring Adjusted EBITDA of $379 million increased 91% from the previous year's third quarter, and 6% sequentially. 
Cash Revenue and Revenue for discontinued operations, consisting of the ILEC, was $187 million, and Recurring Adjusted EBITDA relating to these operations was $95 million.
Pro Forma Service Revenue of $909 million, which reflects neither the cash portion of the change in deferred revenue nor any sales-type lease revenue, increased 28% from the third quarter of 1999, and 6% sequentially. Pro Forma Revenue of $962 million was up 11% from the third quarter of 1999 and 1% sequentially, reflecting the continuing trend of circuit sales under contract terms that require revenue to be recognized over the life of the circuit rather than upon activation.

Network Build & Service Offerings

During the quarter, Global Crossing continued its successful record of completing on budget the announced segments of its 101,000 route mile worldwide network, which is 60% complete and will serve five continents, 27 countries and more than 200 major cities by the middle of 2001. During the quarter, the Company completed the landing of the South America Crossing (SAC) undersea system in Argentina, Rio de Janeiro, Brazil, and Valparaiso, Chile. After the quarter-end, circuits between the U.S. and Buenos Aires, Argentina, were activated for five customers on SAC, representing initiation of service on that system. The Company inaugurated service in Fort Amador, Panama completing a key link in the Pan American Crossing (PAC) undersea system which connects Panama to Mexico and the Mid-Atlantic Crossing (MAC) undersea system. In Europe, Global Crossing completed the Irish and Southern Rings, extending the reach of the Pan European Crossing (PEC) system to 37 of the 46 cities planned for service by mid-2001.
Global Crossing continued its expansion of product capabilities across its global fiber optic network. At the end of the third quarter, private line services were available in 16 European cities, Tokyo, Hong Kong, the major cities of North America and Mexico. Additionally, data products such as ATM, Frame Relay and IP services are now available in North America, the United Kingdom, continental Europe, Tokyo and Hong Kong. 

Global Crossing began its migration to a next-generation voice-over-packet network by initiating commercial service over its Voice over Internet Protocol (VoIP) backbone on its North American Crossing (NAC) terrestrial system. Core VoIP gateway centers are now located in seven U.S. cities, with core VoIP gateway centers to be placed in 15 additional cities in the U.S. and seven internationally by the end of 2000. The Company plans to transfer all of its backbone voice traffic from the circuit-switched network to the packet-based network by the end of 2002. The migration to VoIP enables Global Crossing to build new revenue streams through the creation and delivery of new and innovative voice and data services, and to significantly reduce the capital, real estate, and operating costs of voice transmission.

GlobalCenter Sale to Exodus

The sale of GlobalCenter to Exodus Communications, announced on September 28, 2000, for 99.5 million to 115.7 million shares of Exodus common stock, creates the premier complex web hosting company with unmatched scale and global presence. The combined company will have 32 Internet data centers exceeding 2.6 million square feet and more than 4,000 customers. As part of the transaction, 

Exodus and Global Crossing signed a 10-year network services agreement pursuant to which Exodus will purchase 50% or more of its future network needs outside of Asia from Global Crossing. In addition, Exodus and the Company's Asia Global Crossing affiliate agreed to form a joint venture to provide complex web hosting and managed services in Asia. Exodus will manage and operate the joint venture with an ownership interest of 67%, with Asia Global Crossing owning 33%. The joint venture is expected to purchase at least 67% of its capacity requirements from Asia Global Crossing. The value of the combined network services agreement is estimated to exceed $4 billion over the ten-year contract life. Exodus and Global Crossing also signed a marketing services agreement whereby Global Crossing will offer and co-brand Exodus' web hosting services to Global Crossing customers. 

New Customer Additions

Global Crossing expanded its services to the worldwide financial community by signing a network outsourcing agreement with Garban-Intercapital, the world's leading derivatives, securities and money broker. Garban is outsourcing its European and Asian communications network to Global Crossing, enabling Garban to replace its disparate legacy networks with a state-of-the-art IP-protocol virtual private 

Network (VPN). The agreement provides Garban access to the latest technology without significant capital investments, and allows Garban to migrate more rapidly from voice-based brokering to the delivery of IP-based transaction services across multiple continents. Global Crossing's expertise in global trading systems, combined with its unique global integrated optical IP network, enable Global Crossing to offer unmatched capabilities in providing global VPN's.

Capital Raising & Strategic Investments

The Company and its affiliates arranged approximately $2,137 million in financing by increasing the size of its corporate credit facility ($1,250 million), by completing Asia Global Crossing's initial public offering of its common stock ($479 million, including exercise of the underwriters' over-allotment option), and AGC's issuance of 13.375% Senior Notes ($408 million). When combined with the $3.65 billion in estimated pre-tax cash proceeds from the sale of the ILEC, the Company's existing sources, and the Company's expected operating cash flow, Global Crossing expects to be in a position to fully fund all of its anticipated business expansion plans without further financing activities.

Global Crossing continues to make a number of strategic investments in companies that are developing new technologies and/or products complementary to Global Crossing's worldwide products and services. At the end of the third quarter, the Company had unrealized gains of approximately $700 million from its investment portfolio.

Pro Forma Segment Results

TELECOMMUNICATIONS SERVICES SEGMENT (excludes ILEC, Installation and Maintenance Segment, and Global Center)

During the third quarter of 2000, the Company continued to see significant growth in the Telecommunications Services Segment, which is comprised of commercial, consumer and carrier businesses for bandwidth, data, voice, audio/video conferencing and other value-added services. This segment excludes the ILEC and the Installation and Maintenance Segment (and excludes GlobalCenter for proforma presentation).  As highlighted in the table above, the Company continued to experience strong growth in Pro Forma Cash Revenue from data products which now account for 59% of Telecommunications Services Cash Revenue, up from 57% in the second quarter of 2000 and from 46% in the third quarter of 1999. Service Revenue, which excludes all of the effects of IRU sales, also grew strongly in the Telecommunications Services segment, driven by growth in the carrier customer sector and in all data products, which were sold to both carrier and commercial customers.

Installation and Maintenance Services Segment

The installation and maintenance business segment, consisting of the Company's Global Marine subsidiary, reported revenue of $118 million, a decline of approximately 1% as compared to the second quarter of 2000. Recurring Adjusted EBITDA increased to $34 million in the third quarter from $24 million in the second quarter of 2000. During the quarter, the Company experienced an increase in installation revenue from $79 million in the second quarter to $83 million due to the commencement of the intra-Asian submarine cable network (APCN) and an increase in Recurring Adjusted EBITDA due to the completion of a major installation contract. The increase in installation revenue was offset by a decrease of maintenance revenue due to the redeployment of vessels from maintenance activities to installation projects. 

Discontinued Operations - Incumbent Local Exchange Carrier

The Company's discontinued operations, consisting of its ILEC segment, reported revenue of $187 million for the quarter with Recurring Adjusted EBITDA of $95 million. On July 12, Global Crossing announced an agreement to sell this business, acquired as part of its acquisition of Frontier, to Citizens Communications for an estimated $3.65 billion in cash. The transaction, which is subject to regulatory approvals, is expected to be completed within six months. 

Definition of Terms Used

Throughout this press release, Pro Forma results have been discussed, which give effect to all acquisitions (Frontier, Global Marine, Racal, Hutchison Global Crossing and IPC/IXnet) and for the dispositions of both the ILEC and GlobalCenter, as if each had occurred on January 1, 1999.
In this press release, Revenue refers to revenue reported on the Company's statements of operations under Generally Accepted Accounting Principles. Cash Revenue refers to Revenue plus the cash portion of the change in deferred revenue. Service Revenue excludes all impacts of IRU sales, and refers to Revenue less any revenue recognized immediately for circuit activations that qualified as sales type leases. Adjusted EBITDA refers to operating income (loss) plus goodwill and intangibles amortization, depreciation and amortization, non-cash cost of capacity sold, stock related expense and the cash portion of the change in deferred revenue, which definition is consistent with the financial covenants contained in the Company's major financing agreements. Recurring Adjusted EBITDA refers to Adjusted EBITDA plus one-time merger and integration expenses and other non-recurring expenses. For all periods presented, net income generated by the ILEC business is reported as "Income from discontinued operations, net of taxes" on the Condensed Consolidated Statements of Operations.

About Global Crossing

Global Crossing Ltd. (NYSE: GX) is building and offering services over the world's most extensive global IP-based fiber optic network, which will have more than 101,000 route miles, serving five continents, 27 countries and more than 200 major cities. Global Crossing's operations are headquartered in Hamilton, Bermuda, with principal offices in Los Angeles, California; London, England; Amsterdam, The Netherlands; Madison, New Jersey; Rochester, New York; Dublin, Ireland and Miami, Florida. Visit Global Crossing at www.globalcrossing.com on the Web.

# # #

Statements made in this press release that state the Company's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to complete systems within currently estimated time frames and budgets; the ability to compete effectively in a rapidly evolving and price competitive marketplace; changes in the nature of telecommunications regulation in the United States and other countries; changes in business strategy; the successful integration of newly-acquired businesses; the impact of technological change; and other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission.

Click here to go to the Financial Tables

Contact Global Crossing

Analysts / Investors
Ken Simril 
+1 310 385 5200
investors@globalcrossing.com
Press
Kim Polan 
+ 1 212 687 8080
kpolan@sardverb.com

Tom Goff 
+ 1 310 385 5231
tgoff@globalcrossing.com

 

GLOBAL CROSSING LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended September 30, 2000 and June 30, 2000
(Unaudited)
(in thousands, except share and per share amounts)
Reported (1) Pro forma (2)
Three Months Ended Three Months Ended
September 30,
2000
June 30, 
2000
September 30, 2000 June 30, 2000
REVENUE  $    1,013,072  $     918,420  $      961,740  $     953,548
EXPENSES
Cost of sales          599,875        631,182          554,085        641,427
Operations, administrative and maintenance          132,075        100,205          132,075        113,450
Sales and marketing            96,128          85,056            86,336          89,028
Network development            31,568          26,503            31,568          29,244
General and administrative          227,222        180,428          207,420        186,699
Depreciation and amortization          160,427        126,952          153,531        130,169
Goodwill and intangibles amortization          235,461        159,501          161,191        156,755
Total Expenses       1,482,756      1,309,827       1,326,206      1,346,772
OPERATING LOSS         (469,684)       (391,407)         (364,466)       (393,224)
Equity in loss of affiliates           (11,128)         (13,429)           (11,128)         (13,429)
Minority interest             6,640            3,101              6,640            3,101
Other income (expense):
Interest income            23,598          32,661            23,598          33,636
Interest expense         (111,944)         (94,303)         (111,944)       (102,392)
Other expense, net           (10,657)           (8,185)           (10,652)           (8,143)
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EXTRAORDINARY ITEM         (573,175)       (471,562)         (467,952)       (480,451)
Benefit from income taxes            23,783          77,404            11,431          63,851
LOSS FROM CONTINUING OPERATIONS         (549,392)       (394,158)         (456,521)       (416,600)
Income from discontinued operations, net            23,090          28,784            23,090          28,784
LOSS BEFORE EXTRAORDINARY ITEM         (526,302)       (365,374)         (433,431)       (387,816)
   Extraordinary loss on retirement of debt, net           (17,795)                   -           (17,795)                 -  
NET LOSS         (544,097)       (365,374)         (451,226)       (387,816)
Preferred stock dividends           (58,258)         (58,540)           (58,258)         (58,540)
Conversion of preferred stock into common stock                     -         (92,277)                     -         (92,277)
NET LOSS APPLICABLE TO COMMON SHAREHOLDERS  $     (602,355)  $    (516,191)  $     (509,484)  $    (538,633)
NET INCOME (LOSS) PER COMMON SHARE
Loss from continuing operations applicable to common shareholders
Basic and Diluted  $           (0.69)  $         (0.66)  $           (0.59)  $         (0.68)
Income from discontinued operations, net
Basic and Diluted  $            0.02  $          0.04  $            0.03  $          0.03
Extraordinary loss on retirement of debt, net
Basic and Diluted  $           (0.02)  $             -    $           (0.02)  $             -  
Net loss applicable to common shareholders
Basic and Diluted  $           (0.69)  $         (0.62)  $           (0.58)  $         (0.65)
Shares used in computing income (loss) per share
Basic and Diluted    878,397,391  830,903,109    878,397,391  830,903,109
(1) The Reported amounts in the table above reflect the Company's quarterly results for continuing operations for the three months ended September 30, 2000 and June 30, 2000.  Results for the three months ended June 30, 2000 include the results of IPC Communications and IXnet from June 15, 2000.
(2) The Pro forma amounts in the table above reflect, for both periods presented,  the Company's acquisitions of Frontier, Global Marine, Racal, Hutchison Global Crossing and IPC/IXnet and the dispositions of both the ILEC and GlobalCenter, as if each had occurred on January 1, 1999.
RECURRING NET LOSS AND NET LOSS PER COMMON SHARE
Net loss applicable to common shareholders  $     (602,355)  $    (516,191)  $     (509,484)  $    (538,633)
Tycom Claim Settlement            19,000                   -            19,000                   -
Merger-related expenses and severance              6,231          13,354              5,742          23,984
Extraordinary loss on retirement of debt,net            17,795                   -            17,795                   -
Reversal of tax provision related to prior year adjustments                     -         (73,040)                     -         (73,040)
Conversion of preferred stock into common stock - 92,277 - 92,277
Income from discontinued operations, net (23,090) (28,784) (23,090) (28,784)
Other (income) expense, net 10,657 8,185 10,652 8,143
RECURRING NET LOSS APPLICABLE TO COMMON
SHAREHOLDERS  $     (571,762)  $    (504,199)  $     (479,385)  $    (516,053)
Recurring net loss applicable to common shareholders
Basic and Diluted  $           (0.65)  $         (0.61)  $           (0.55)  $         (0.62)
ADJUSTED EBITDA AND RECURRING ADJUSTED EBITDA
Operating loss  $     (469,684)  $    (391,407)  $     (364,466)  $    (393,224)
Goodwill and intangibles amortization 235,461 159,501 161,191 156,755
Depreciation and amortization 160,427        126,952          153,531        130,169
Stock related expense              8,879            7,837              8,879          17,757
Non-cash cost of capacity sold            40,854        112,318            40,854        112,318
Cash portion of the change in deferred revenue 353,908        307,891 353,908        307,891
ADJUSTED EBITDA  $329,845  $     323,092  $353,897  $     331,666
Merger-related expenses and severance 6,231          13,354 5,742          23,984
Tycom Claim Settlement            19,000 -            19,000 -
RECURRING ADJUSTED EBITDA  $355,076  $     336,446  $378,639  $     355,650
(1) The Reported amounts in the table above reflect the Company's quarterly results for continuing operations for the three months ended September 30, 2000 and June 30, 2000.  Results for the three months ended June 30, 2000 include the results of IPC Communications and IXnet from June 15, 2000.
(2) The Pro forma amounts in the table above reflect, for both periods presented,  the Company's acquisitions of Frontier, Global Marine, Racal, Hutchison Global Crossing and IPC/IXnet and the dispositions of both the ILEC and GlobalCenter, as if each had occurred on January 1, 1999

 

GLOBAL CROSSING LTD. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION - CONSOLIDATED
For the Three Months Ended September 30, 2000 and June 30, 2000
(Unaudited)
(In thousands)
Reported (1) Pro forma (2)
Three Months Ended Three Months Ended
September 30, June 30, September 30, June 30,
2000 2000 2000 2000
TELECOMMUNICATION SERVICES:
CASH REVENUE:
     Commercial  $      453,538 358,513  $      402,206 393,641
     Consumer 39,482 40,889 39,482 40,889
     Carrier 755,884 707,667 755,884 707,667
Total Telecommunications 
Services Cash Revenue
1,248,904 1,107,069 1,197,572 1,142,197
REVENUE:
     Commercial 453,538 358,513 402,206 393,641
     Consumer 39,482 40,889 39,482 40,889
     Carrier:
     Sales Type Lease Revenue 52,583 98,833 52,583 98,833
     Service Revenue 349,393 300,943 349,393 300,943
Total Carrier 401,976 399,776 401,976 399,776
Total Telecommunications Services Revenue 894,996 799,178 843,664 834,306
Total Telecommunications Services Service Revenue 842,413 700,345 791,081 735,473
RECURRING OPERATING LOSS         (454,717)          (377,371)        (349,988) (368,558)
RECURRING ADJUSTED EBITDA 321,365 312,048 344,928 331,252
CASH PAID FOR CAPITAL EXPENDITURES 1,194,495 961,039 1,036,806 901,830
TOTAL ASSETS 22,824,213 23,069,954 21,244,970    21,461,627
 
INSTALLATION AND MAINTENANCE:
CASH REVENUE 118,076 119,242 118,076 119,242
REVENUE 118,076 119,242 118,076 119,242
RECURRING OPERATING INCOME (LOSS) 10,264 (682) 10,264 (682)
RECURRING ADJUSTED EBITDA 33,711 24,398 33,711 24,398
CASH PAID FOR CAPITAL EXPENDITURES 9,157 19,678 9,157 19,678
TOTAL ASSETS 1,307,920 1,327,778 1,307,920 1,327,778
NONRECURRING RESULTS:
OPERATING LOSS          (25,231)            (13,354)          (24,742)         (23,984)
ADJUSTED EBITDA          (25,231)            (13,354)          (24,742)         (23,984)
RECURRING OPERATING INCOME (LOSS)                    -                      -                    -                   -
RECURRING ADJUSTED EBITDA                    -                      -                    -                   -
CASH PAID FOR CAPITAL EXPENDITURES                    -                      -                    -                   -
TOTAL ASSETS       2,473,451         2,504,133       2,473,451      2,504,133
 
CONSOLIDATED:
CASH REVENUE 1,366,980 1,226,311 1.315,648 1,261,439
SERVICE REVENUE 960,489           819,587         909,157        854,715
REVENUE 1,013,072           918,420         961,740        953,548
OPERATING LOSS (469,684) (391,407) (364,466)       (393,224)
ADJUSTED EBITDA 329,845           323,092         353,897        331,666
RECURRING OPERATING LOSS (444,453) (378,053)        (339,724)       (369,240)
RECURRING ADJUSTED EBITDA 355,076           336,446         378,639        355,650
CASH PAID FOR CAPITAL EXPENDITURES 1,203,652           980,717 1,045,963        921,508
TOTAL ASSETS  $ 26,605,584  $   26,901,865  $ 25,026,341  $25,293,538
 
INCUMBENT LOCAL EXCHANGE CARRIER:
CASH REVENUE 186,628           188,677         186,628        188,677
REVENUE 186,628 188,677         186,628        188,677
OPERATING INCOME           39,289             46,714           39,289          46,714
ADJUSTED EBITDA           94,272             98,589           94,272          98,589
RECURRING OPERATING INCOME           39,994             46,714           39,994          46,714
RECURRING ADJUSTED EBITDA           94,977             98,589           94,977          98,589
CASH PAID FOR CAPITAL EXPENDITURES 42,949 50,870 42,949 50,870
TOTAL ASSETS       2,825,057         2,897,823       2,825,057      2,897,823
 
(1) The Reported amounts in the table above reflect the Company's quarterly results for continuing operations for the three months ended September 30, 2000 and June 30, 2000.  Results for the three months ended June 30, 2000 include the results of IPC Communications and IXnet from June 15, 2000.

(2) The Pro forma amounts in the table above reflect, for both periods presented,  the Company's acquisitions of Frontier, Global Marine, Racal, Hutchison Global Crossing and IPC/IXnet and the dispositions of both the ILEC and GlobalCenter, as if each had occurred on January 1, 1999.

 

GLOBAL CROSSING LTD AND SUBSIDIARIES
Supplemental Information
For the Three Months ended September 30, 2000 and June 30, 2000
(Unaudited)
(In thousands)
    Reported (1) Proforma (2)
Three Months Ended Three Months Ended
September 30, 2000 June 30, 2000 September 30, 2000 June 30, 2000
TELECOMMUNICATIONS SERVICES:
PRODUCT CASH REVENUE
Switched Voice           383,041             384,281            383,041           384,281
  CLEC (Local and LD)              62,574               62,472              62,574             62,472
Total Voice Products  $       445,615  $        446,753  $       445,615  $       446,753
Data           763,807             619,427            712,475           654,555
  Consumer Long Distance              39,482               40,889              39,482             40,889
TOTAL PRODUCT CASH REVENUE  $    1,248,904  $     1,107,069  $    1,197,572  $   1,142,197
PRODUCT REVENUE
Switched Voice           383,041             384,281            383,041           384,281
  CLEC (Local and LD)              62,574               62,472              62,574             62,472
Total Voice Products  $       445,615  $        446,753  $       445,615  $       446,753
Data
     Sales Type Lease Revenue              52,583               98,833              52,583             98,833
       Service Revenue           357,316             212,703            305,984           247,831
     Total Data Revenue           409,899             311,536            358,567           346,664
Consumer Long Distance              39,482               40,889              39,482             40,889
Total Product Revenue  $       894,996  $        799,178  $       843,664  $       834,306
MINUTES: (3)
Commercial        1,696,957         1,671,634        1,696,957        1,671,634
Consumer           265,029             265,709            265,029           265,709
Carrier        5,923,442         5,465,847        5,923,442        5,465,847
TOTAL MINUTES        7,885,428         7,403,190        7,885,428        7,403,190
INCUMBENT LOCAL EXCHANGE CARRIER
ACCESS LINES1:
Commercial                   342                    343                      (1) (0.3%)
Consumer                   751                    746                        5 0.7%
TOTAL ACCESS LINES                1,093                 1,089                        4 0.4%
(1) The Reported amounts in the table above reflect the Company's quarterly results for continuing operations for the three months ended September 30, 2000 and June 30, 2000.  Results for the three months ended June 30, 2000 include the results of IPC Communications and IXnet from June 15, 2000.
(2) The Pro forma amounts in the table above reflect, for both periods presented,  the Company's acquisitions of Frontier, Global Marine, Racal, Hutchison Global Crossing and IPC/IXnet and the dispositions of both the ILEC and GlobalCenter, as if each had occurred on January 1, 1999.
(3) Data presented for Former Frontier Corporation (excluding ILEC) Only