Fourth quarter results saw record levels of consolidated operating revenues of $108.9 million. For the year 2000, consolidated operating revenues were a record $352.0 million, or 127.7% higher than the previous year. Net loss applicable to common stockholders for the fourth quarter totaled $137.3 million, or $1.94 per share, compared with $60.8 million, or $1.01 per share, for the same period in the prior year.
Consolidated revenues increased by 96% to $108.9 million in the December 2000 quarter, from $55.6 million in the December 1999 quarter and were 17% higher than the consolidated revenues of $93.5 million for the September 2000 quarter. Consolidated revenues were comprised of voice revenue (includes local, long-distance and other revenues) of $88.5 million in the December 2000 quarter as compared with $43.8 million in the December 1999 quarter and data revenue (includes internet, dedicated access and data services) of $20.4 million in the December 2000 quarter as compared with $11.8 million in the December 1999 quarter. Average revenue per installed access line in the December 2000 quarter was approximately $50 per month, in line with $51 per month in the prior quarter. Consolidated revenues in the December 2000 quarter included $9.5 million of reciprocal compensation revenue, or 8.7% of revenues. The Company continues to expect calendar 2001 revenues to be approximately $500 million, with first quarter 2001 revenue at approximately the same level as December 2000 quarterly revenue.
Consolidated gross margin as a percent of sales was 47.6% in the December 2000 quarter as compared with 45.6% of sales in the September 2000 quarter. Consolidated EBITDA losses for the December 2000 quarter were $34.2 million versus a $25.2 million EBITDA loss for the September 2000 quarter. Consolidated EBITDA losses were greater than expected due to an additional $15 million charge related to potentially uncollectible accounts receivable associated primarily with internet service providers.
In addition to the Company’s EBITDA loss for the December 2000 quarter, the Company recorded a restructuring charge totaling $5.4 million comprised primarily of direct costs associated with the previously announced revision of the Company’s business plan from 200 markets to its current 80 market business plan. The Company will record an additional $3.6 million charge to earnings in the first quarter of calendar 2001 for severance costs associated with the related layoff of approximately 210 employees in January 2001.
As a result of continued revenue growth combined with cost reduction efforts associated with the revised business plan, the Company expects EBITDA losses to decrease to approximately $15-17 million for the first quarter of calendar 2001 and to approximately $20-25 million for calendar 2001.
The Company’s fourteen Class of 1996 markets continue to demonstrate strong financial results with sequential quarterly revenue growth of 4.8% in the December 2000 quarter and gross margin as a percentage of sales of 72.6%. Revenue for the Class of 1996 markets has increased 56.2% as compared with the December 1999 quarter, with gross margins in excess of 72.5% of revenues for each of the past five quarters. As such, EBITDA for these markets before allocation of corporate overhead has increased 71.8% from an annualized $73.4 million for the December 1999 quarter to an annualized $126.1 million for the December 2000 quarter. Furthermore, from the December 1999 quarter to the December 2000 quarter, the eight Class of 1997/1998 markets’ revenues increased 82.6% from $8.1 million to $14.8 million. Gross margins for these markets increased 105.7% during the same period and annualized EBITDA before allocation of corporate overhead increased from $3.4 million to $11.3 million, or to 19.0% of revenues in the December 2000 quarter.
With all nine of the Company’s regional Class 5 switches operational in the Class of 1999 markets, the Company’s total service resale conversion effort contributed to the improvement of these markets’ negative gross margin from a negative 27.4% of revenues in the September 2000 quarter to a negative 17.0% of revenues in the December 2000 quarter on sequential quarterly revenue growth of 18.3%. As such, EBITDA losses before allocation of corporate overhead in these markets were relatively unchanged at negative $26.6 million from the September 2000 quarter to the December 2000 quarter. The Company expects this to be these markets’ peak EBITDA loss period, and that EBITDA losses will decrease throughout calendar 2001. The Company believes the results in all of its Class market categories continue to validate its business plan model as a facilities based integrated communications provider.
The Company’s focus on collection efforts and accounts receivable during the December 2000 quarter resulted in an improvement in days sales outstanding in accounts receivable from 105 days as of September 30, 2000 to 78 days as of December 31, 2000.
During the December 2000 quarter, the Company and its consolidated subsidiaries invested approximately $233.8 million in capital expenditures related primarily to local market construction, regional network ring activations, and the central office build-out for the Class of 1999 and 2000 markets. Capital expenditures for calendar 2000 totaled $712.8 million. As of December 31, 2000, total gross property, plant and equipment of the Company and its consolidated subsidiaries, was approximately $1.7 billion.
During the December 2000 quarter, the Company funded a portion of its free cash flow deficit with draws of approximately $150.3 million under a $500.0 million bank credit commitment, $87.5 million in proceeds from the sale to Adelphia of assets in six markets the Company has decided not to pursue in its revised business plan, and increases in working capital. As of December 31, 2000, $500.0 million was drawn on the bank credit facility. The Company expects to fund its projected future cash flow deficits through a combination of additional bank or institutional indebtedness and proceeds from the recently completed common stock rights offering in which Adelphia exercised rights providing the Company with $460.9 million in proceeds.
