Eaglewood Energy Inc EWDYF

Motient Reports Third Quarter Results

[NewsFlash10]

Motient Corporation (ticker: MTNT, exchange: NASDAQ) News Release - 25-Oct-2000 -------------------------------------------------------------------------------- Motient Corporation Reports Third Quarter 2000 Financial Results; Accelerating Growth of Wireless Email Services Fuels Results And Charts Path for Future Growth RESTON, Va., Oct. 25 /PRNewswire/ -- Motient Corporation (Nasdaq: MTNT) today announced financial results for the third quarter 2000. Subscribers on the Motient Network grew by 19,200 in the third quarter and totaled 189,200 at quarter end. Quarterly net subscriber activations grew 138 percent over the same period in 1999. Net service revenues grew to $19.8 million, compared with $17.3 million for the third quarter 1999. Total revenue, including equipment sales, rose to $26.7 million in the third quarter of 2000, compared with $23.0 million for the same quarter of the previous year. Subscriber growth was driven primarily by eLink(SM) with over 15,500 net subscriber additions, or a 76% percent sequential increase over the second quarter of this year. "eLink(SM) represents Motient's fastest growing product for the second straight quarter, as consumer demand for wireless email and internet access continues unabated," said Walter V. Purnell, Jr., President and CEO of Motient Corporation. "Our actions this quarter to further enhance our wireless email/internet applications focus the company on a potentially huge opportunity for future growth." The company reported a third quarter consolidated EBITDA loss of ($44.2) million and a consolidated net loss of ($92.8) million, or ($1.87) per share, as compared to an EBITDA loss of ($19.0) million and a net loss of ($66.0) million, or ($1.45) per share, for the same quarter of the previous year. Included in Motient's consolidated net loss of ($92.8) million for the third quarter 2000 are the results of XM Satellite Radio Holdings Inc. (XM Radio) of ($27.9) million operating expenses and depreciation & amortization, $8.0 million interest income, $13.4 million minority interest income, and a loss to common shareholders of ($45.8) million for beneficial conversion charges and preferred stock dividends of XM Radio, all of which Motient is required to consolidate as a result of its controlling voting interest in XM Radio. Additionally, results include an inventory write down of approximately $3.6 million related to certain first generation hand-held devices. Excluding the net losses from XM Radio and the inventory write down, the company generated third quarter EBITDA loss of ($13.5) million and a net loss of ($37.0) million or ($0.75) per share. "This was a transforming quarter for Motient," said Purnell. "During this quarter we narrowed our focus through the announced sale of our retail transportation business. This and other actions create a significant opportunity for additional liquidity, provide important fuel for accelerated advertising and product development, and enable Motient to bring a broader array of products and applications to our key audience of mobile professionals." Motient achieved the following successes during the third quarter: Continued accelerating growth of the company's eLink(SM) family of wireless Internet offerings through its distribution relationships with Skytel, a Division of MCI Worldcom; Metrocall; TSR Wireless and new Value Added Application Providers such as Outercurve. Skytel expanded their distribution of "Skytel eLink(SM)" by introducing the product in Staples, Office Depot and CompUSA retail outlets. Commenced initial shipments of BlackBerry(TM) by Motient to a series of large enterprise customers. This offering combines the power of BlackBerry's Microsoft exchange integration with Motient's broader network coverage. Completed technical integration with Critical Path, one of the nations largest email and messaging outsource providers, serving over 14 million users. Commenced initial sales and marketing activities via Critical Path reseller, Navipath. Completed the year 2000 phase of the UPS wireless package tracking solution. More than 85% of the rollout is complete. Approximately 43,000 UPS package delivery personnel now use Motient's wireless data network to transmit package delivery status and receive dispatch information. Announced a new wireless service with Yahoo!, which provides a unique wireless extension of Yahoo! content. Created jointly by Motient and Neomar developers, the new product enables Yahoo! users to access their personalized Yahoo! content, calendar, email and instant messaging services anywhere in Motient's broad coverage area. The instant messaging "friends" list wirelessly updates itself and wirelessly synchronizes with the user's Web-based list, making it the first service offering ever to wirelessly synchronize between a wireless device and an Internet-enabled PC. The co-branded offering is expected to be available in November through Yahoo! Shopping, Spiegel, ePhones and through a variety of retail outlets beginning early in 2001. Expanded future capacity of the terrestrial network through successful participation in the recent FCC 800MHz auction, and through private transactions. The company acquired 187 new licenses and now holds licenses for 726 frequencies across 430 Metropolitan areas in all 50 states, Puerto Rico and the U.S. Virgin Islands. Jointly announced with Aether Systems, Inc., the purchase by Aether of Motient's retail transportation business. The deal provides significant additional funding for Motient and enables the company to concentrate its resources on the growing wireless email and internet- access opportunity. The company will hold a conference call to discuss the results today at 10:00 a.m. Eastern Daylight Time. To participate in the call, please dial 1-800-946-0785, 5-10 minutes prior to the scheduled conference call time. The Pass code for the call is 526086. About Motient Motient (www.motient.com) owns and operates an integrated terrestrial/satellite network and provides a wide range of two-way mobile and Internet communications services principally to business-to-business customers and enterprises. The company provides its industry-leading eLink(SM) two-way wireless email service to customers accessing email through corporate servers, Internet Service Provider (ISP) and Mail Service Provider (MSP) accounts, and paging network suppliers. Motient serves a variety of markets including mobile professionals, telemetry, transportation, field service, and nationwide voice dispatch offering coverage to all 50 states, Puerto Rico, the U.S. Virgin Islands, and hundreds of miles of U. S. coastal waters. eLink is a service mark of Motient Corporation. BlackBerry is a trademark of Research In Motion Limited. Factors that could cause actual results to differ materially from those in the forward-looking statements in this press release include uncertainties associated with our extension into new wireless markets, our substantial indebtedness, our continuing need for capital, the impact of technological change on our business, dependence on availability of our satellite and terrestrial networks, our dependence on third party equipment vendors, regulatory risks, the impact of competitive services and pricing, as well as other risks described in our registration statement on Form S-3 (File No. 333- 42104) and in our annual report on Form 10-K for the year ended December 31, 1999 and our other periodic filings and reports with the Securities and Exchange Commission. Copies of the filings are available upon request from Motient Corporation's Investor Relations Department. FINANCIAL HIGHLIGHTS (in thousands, except per share amounts) (unaudited) Three Months Ended Nine Months Ended Sept. 30, Sept. 30, 2000 1999 2000 1999 Consolidated Income Statement Data Service revenues $19,810 $17,290 $55,182 $50,076 Revenue from equipment sales $6,847 $5,680 $19,333 $15,997 Total Revenues $26,657 $22,970 $74,515 $66,073 Cost of service and operations $18,573 $17,287 $55,365 $51,673 Cost of equipment sold $7,091 $6,045 $20,296 $17,167 Unusual Charge -- Inventory write-down $3,587 $0 $3,587 $0 Sales and advertising $8,633 $5,548 $22,479 $16,018 General and administrative $5,834 $4,613 $16,598 $14,090 Operating expenses from XM Radio consolidation $27,118 $8,506 $56,930 $8,506 Depreciation and amortization (including $751 and $1,290 of Depreciation and amortization relating to XM Radio for the three and nine months ended September 30,2000) $9,932 14,911 $28,220 $42,315 Operating Loss ($54,111) ($33,940) ($128,960) ($83,696) Interest Expense, Net (including $8,048 and $21,046 of Net Interest Income relating to XM Radio for the three and nine months ended September 30, 2000) $6,263 $17,146 $22,120 $46,335 Equity in Loss of XM Radio $0 $0 $0 $6,692 Unusual item -- Unrealized gain (loss) on marketable securities $0 $(2,807) $3,925 $(2,690) Unusual item -- Gain on conversion of note payable $0 $0 $32,854 $0 Minority Interest $13,391 $0 $24,074 $0 Consolidated Net Loss before extraordinary item and XM Radio Preferred Stock Dividend ($46,983) ($53,893) ($90,227) ($139,413) Extraordinary loss on extinguishments of debt ($0) ($12,132) ($417) ($12,132) XM Radio Preferred Stock Dividend and Beneficial Conversion Charge ($45,775) $0 ($47,026) $0 Consolidated Net Loss Attributable to Common Shareholders ($92,758) ($66,025) ($137,670) ($151,545) Consolidated Net Loss Per Share ($1.87) ($1.45) ($2.79) ($4.12) Consolidated EBITDA ($44,179) ($19,029) ($100,740) ($41,381) Weighted average shares outstanding 49,532 45,421 49,378 36,740 FINANCIAL HIGHLIGHTS (in thousands, except per share amounts) (unaudited) Three Months Ended Nine Months Ended Sept. 30, Sept. 30, 2000 1999 2000 1999 Summary data excluding XM Radio and unusual items: Operating Loss ($22,655) ($24,791) ($67,153) ($74,547) EBITDA ($13,474) ($10,523) ($40,223) ($32,875) Net Loss ($36,967) ($36,660) ($110,320) ($115,605) Net Loss Per Share ($0.75) ($0.81) ($2.23) ($3.15) Balance Sheet Data, Excluding XM Radio Sept. 30, 2000 Dec. 31, 1999 Cash and cash equivalents $371 $776 Total assets $600,164 $504,983 Debt and capital leases (incl. Current portions) $473,944 $477,226 Stockholders' equity (deficit) $47,927 ($17,226) Consolidated Balance Sheet Data Sept. 30, 2000 Dec 31, 1999 Cash and cash equivalents $313,082 $51,474 Total assets $1,577,864 $809,948 Debt and capital leases (incl. Current portions) $737,726 $477,610 Stockholders' equity (deficit) $47,927 ($17,226) OPERATIONAL HIGHLIGHTS (unaudited) Subscribers by Market Segment -- as of: 9/30/99 12/31/99 3/31/00 6/30/00 9/30/00 Elink N/A 2,848 6,234 15,090 30,653 Field Service N/A 46,183 44,885 43,349 43,878 Transportation N/A 56,053 62,711 71,161 73,637 Telemetry N/A 12,948 13,923 14,881 15,121 Maritime N/A 5,684 6,030 6,234 6,423 Other N/A 17,022 17,250 19,328 19,494 Total N/A 140,738 151,033 170,043 189,206 Subscribers by Market Segment -- as of: 9/30/99 12/31/99 3/31/00 6/30/00 9/30/00 Elink 1% 2% 4% 9% 16% Field Service 37% 33% 30% 25% 24% Transportation 36% 40% 42% 42% 39% Telemetry 10% 9% 9% 9% 8% Maritime 4% 4% 4% 4% 3% Other 12% 12% 11% 11% 10% Average Revenue per Subscriber per Month by Market Segment 9/30/99 12/31/99 3/31/00 6/30/00 9/30/00 Elink (see note below) N/A N/A $22 $17 $11 Field Service N/A N/A $51 $50 $46 Transportation N/A N/A $28 $29 $27 Telemetry N/A N/A $25 $25 $26 Maritime (see note below) N/A N/A $68 $62 $42 Other (see note below) N/A N/A $53 $55 $89 Weighted Average $45 $43 $39 $38 $37 Notes to Motient Q3'00 the Unaudited Operational Highlights: When normalized for late quarter loading of units across all channels, and delayed sell through in reseller channels, eLink(SM) ARPU was $30. When normalized for one-time contract adjustment, Maritime ARPU was $58. "Other" category includes revenue additions for certain capacity and technology licensing agreements with no related subscriber additions. SOURCE Motient Corporation CONTACT: Eric Swank, Vice President, Corporate Planning and Investor Relations, 703-758-6121, or [e-mail], or David Wonderling, Manager, Public Relations, 703-716-6375, or [e-mail], both of Motient Corporation/