NEW YORK, Dec. 23, 2003 (PRIMEZONE) -- Globix Corporation (OTCBB:GBXX) today reported financial results for the fourth quarter and fiscal year 2003, which ended September 30, 2003. The company also announced that it had repurchased $19.0 million of its outstanding 11% Senior Notes during the fiscal year 2003. In October of 2004 or the first quarter of fiscal year 2004 the company purchased an additional $7.0 million of its 11% Senior Notes.
For the quarter ending September 30, 2003 revenues were $13.8 million, compared to $18.0 million in 2002, a decrease of $4.2 million or 23.3% less than the same period a year earlier. Cost of revenues in the fourth quarter of 2003 were $4.5 million, compared to $6 million in 2002, a reduction of $1.5 million or 25%. Gross profit margin was $9.3 million or 67.4% in the fourth quarter of 2003, compared to $12 million or 66.7% in the fourth quarter of 2002. Sales, general and administrative costs for the fourth quarter of 2003 decreased $7.9 million or 42.5%, from $18.6 million in 2002 to $10.7 million in 2003. Loss from operations for the quarter ended September 30, 2003 was $4.0 million, compared to $10.1 million in 2002. Net loss attributable to common shareholders was $0.46 per share, compared to $0.83 per share for the same period last year.
For the fiscal year ended September 30, 2003 revenues decreased 26.6% to $60.1 million, from $82.0 million for the fiscal year ended September 30, 2002. Cost of revenue for 2003 decreased to $20.0 million from $32.6 million, a decrease of $12.6 million or 38.7%. Gross profit margin increased to 66.8% in 2003, compared to 60.0% in 2002. Selling, general and administrative expenses were $44.4 million or 73.4% of revenue for the year ended September 30, 2003, compared to $86.5 million or 105.5% for the year ended September 30, 2002. Loss from operations was approximately $18.4 million for the fiscal year 2003, compared to $98.7 million in 2002. Net loss for the fiscal year 2003 was $25.3 million, or $1.54 basic and diluted loss per share, compared to a net income of $138.8 million, or $2.68 basic earnings per share and $2.02 diluted earnings per share, respectively, for the fiscal year ended September 30, 2002. The existence of positive net income in fiscal year 2002 was due to $427.1 million in income from the discharge of indebtedness in connection with the company's emergence from bankruptcy in April 2002.
GLOBIX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands, Except Share and Per Share Data)
Consolidated Statement
of Operations Data
September 30, September 30,
2003 2002
Revenue $13,810 $18,021
Operating costs
and expenses:
Cost of revenues
(excluding
depreciation,
amortization,
payroll and
occupancy shown
below) 4,491 5,953
Selling, general
and administrative 10,716 18,564
Loss (gain) on
impairment of
assets
Restructuring and
other charges
(credits) (1,020)
Depreciation and
amortization 3,623 3,606
----------- -----------
Total operating
costs and expenses 17,810 28,123
Other operating
income -- --
----------- -----------
Loss from operations ( 4,000) (10,102)
Interest and
financing expense,
net ( 3,769) (3,503)
Other income
(expense) 626 (12)
Gain (loss) on
debt discharge 98 --
Reorganization
items -- --
Fresh start
accounting
adjustments -- --
Minority interest
in subsidiary (333) --
----------- -----------
Loss before income
taxes (7,378) (13,617)
Income tax expense 167 --
----------- -----------
Net loss ($ 7,545) ($13,617)
Dividends and
accretion on
preferred stock -- --
------------ ------------
Net loss
attributable to
common stockholders ($ 7,545) ($13,617)
------------ ------------
Loss per common
share:
Basic loss per
share attributable
to common stockholders ($ 0.46) ($ 0.83)
----------- -----------
Weighted average
common shares
outstanding -
basic 16,460,000 16,460,000
------------ -----------
Diluted loss per
share attributable
to common stockholders ($ 0.46) ($ 0.83)
------------ ------------
Weighted average
common shares
outstanding
- diluted 16,460,000 16,460,000
----------- -----------
Successor Predecessor
Company Company
----------------------------- ------------
Consolidated Year Ended Five Months Seven Months
Statement of Sept. 30, Ended Sept. 30, Ended April 30,
Operations Data 2003 2002 2002
Revenue $ 60,177 $ 30,723 $ 51,273
Operating costs
and expenses:
Cost of
revenues
(excluding
depreciation,
amortization,
payroll and
occupancy
shown below) 19,990 10,458 22,123
Selling,
general and
administrative 44,430 29,313 57,206
Loss (gain)
on impairment
of assets 2,578
Restructuring
and other
charges
(credits) (1,020) 24,834
Depreciation
and
amortization 15,523 6,060 28,115
------------ ------------ ------------
Total operating
costs and
expenses 78,923 45,831 134,856
Other operating
income 345 -- --
------------ ------------ ------------
Loss from
operations (18,401) (15,108) (83,583)
Interest and
financing
expense, net (13,962) (5,866) (32,487)
Other income
(expense) 1,232 (157) (509)
Gain (loss) on
debt discharge 6,023 -- 427,066
Reorganization
items -- -- (7,762)
Fresh start
accounting
adjustments -- -- (148,569)
Minority
interest in
subsidiary -- -- 5,778
------------ ------------ ------------
Income (loss)
before income
taxes (25,108) (21,131) 159,934
Income tax
expense 167 -- --
------------ ------------ -----------
Net income
(loss) ($ 25,275) ($ 21,131) $ 159,934
Dividends and
accretion on
preferred stock -- -- ($ 3,178)
------------ ------------ ------------
Net income
(loss)
attributable
to common
stockholders ($ 25,275) ($ 21,131) $ 156,756
Earnings (loss)
per common share:
Basic earnings
(loss) per share
attributable to
common
stockholders ($ 1.54) ($ 1.28) $ 3.96
------------ ------------ ------------
Weighted average
common shares
outstanding -
basic 16,460,000 16,460,000 39,618,856
------------ ------------ ------------
Diluted earnings
(loss) per share
attributable to
common
stockholders ($ 1.54) ($ 1.28) $ 3.30
-------- ------------ ------------
Weighted average
common shares
outstanding -
diluted 16,460,000 16,460,000 48,507,456
------------- ------------ ------------
About Globix:
Globix (http://www.globix.com) is a leading provider of managed Internet applications and infrastructure services for enterprises. Globix delivers and supports applications and services via its secure Data Centers, high-performance global Tier 1 IP backbone, and content delivery network. Through Aptegrity, its managed services group, Globix provides remote management of custom and off-the-shelf web-based applications. By managing such complex e-commerce, database, content management and customer relationship management software for its clients, Globix helps them to protect Internet revenue streams, reduce technology operating costs and operating risk, and improve user satisfaction. Globix's Clients are companies that use the Internet to provide business benefits and sustain a competitive advantage in their markets. Our Clients include operating divisions of Fortune 100 companies as well as mid-sized enterprises in a number of vertical markets including health care, media and publishing, technology and financial services. Globix and its subsidiaries have operations in New York, London, Santa Clara and Atlanta.
Risk Factors and Forward-Looking Statements:This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These statements are based on current information and expectations and are subject to risks and uncertainties that could cause the company's actual results to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties include: the company's ability to retain existing customers and attract new customers; its ability to match its operating cost structure with revenue to achieve positive cash flow; the sufficiency of existing cash and cash flow to complete the company's business plan and fund its working capital requirements; risks associated with making acquisitions; restrictions on our financial and operating flexibility due to the terms of our existing indebtedness and our high degree of leverage; the insolvency of vendors and other parties critical to the company's business; the company's existing debt obligations and history of operating losses; its ability to integrate, operate and upgrade or downgrade its network; the company's ability to recruit and retain qualified personnel needed to staff its operations; potential market or technological changes that could render the company's products or services obsolete; changes in the regulatory environment; and other changes that are discussed in the company's Annual Report on Form 10-K and other documents that the company files with the Securities and Exchange Commission.