Excerpts: “Global Crossing’s Recurring Adjusted EBITDA up 91%, Cash Revenue up 46%, from Third Quarter of 1999, Pro Forma for M&A Activity.”

• 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.
• 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.
• 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.
• 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.
• 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.
• 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. 

Source: CNN