PNV Inc. Reports Fiscal 2000 Q4 and Year End Financial Results
14 September 2000
PNV Inc. Reports Fiscal 2000 Q4 and Year End Financial Results
PNV Continues to Invest in State-of-Art Communication Services
For Trucking Community
CORAL SPRINGS, Fla., Sept. 14 PNV, Inc. ,
the leading provider of bundled telecommunications, cable TV and Internet
access services to drivers in the privacy and convenience of their truck cabs,
today reported unaudited net revenue of $5.6 million for the company's fourth
quarter, ending June 30, 2000. This represents an 18 percent increase over
third quarter 2000 and a 126 percent increase over fourth quarter 1999. For
the company's fiscal year 2000, overall revenue increased 107 percent to
$17.5 million.
"PNV's revenue is derived from multiple and recurring sources, including
subscriber fees for bundled in-cab voice and entertainment services, Internet
access services, long distance calling cards, and advertising in PNV's media
properties. Our revenue growth, which occurred in all lines of business,
reflects PNV's corporate strategy of offering business to business (B2B) and
business to consumer (B2C) communications and information services to many
segments of the trucking industry, and building multiple revenue streams,"
said Bob May, president and CEO.
"However, we're disappointed that our quarterly results did not meet our
internal expectations, primarily because of higher than anticipated
expenditures. Our increased expenses were the result of our ongoing
investment in building a national communications network, our marketing
expenses associated with our AOL relationship and the completion of our
network quality initiatives. We are committed to reducing our expenses," said
May. PNV also engaged McKinsey & Company to assist with the company's near
term subscriber acquisition strategy, capital strategy and expense reduction
initiatives.
Usage of PNV's national private network increased 15% over last quarter to
274,000 activations. Compared to the third quarter 2000, PNV's total
subscriber base remained unchanged at approximately 43,000, which represents a
20% increase over the prior year subscriber base.
The company reported an unaudited net loss to common shareholders of
$20 million or ($1.25) per share, for the quarter ending June 30, 2000. For
the 2000 fiscal year, PNV reported an unaudited net loss to common
shareholders of $87 million or ($7.88) per share. As of June 30, PNV had
approximately $37 million in cash on hand and accounts payable, accrued
expenses and interest of $8 million. Accordingly, PNV may not have sufficient
cash to meet current business plan requirements for fiscal year 2001.
An Expanded and Enhanced Network
PNV expanded its communications network significantly during the past
year, and now offers services at 397 truck stops in 43 states, an increase of
71 sites in the fourth quarter. Sixteen full-service locations were opened in
the fourth quarter and 55 began offering PNV "Express Port" service, a low
capital cost communications and information solution for smaller locations.
PNV's Strategic Partnerships
PNV continued to strengthen its relationships and partnerships with fleet
operators, carriers and manufacturers. The company recently signed a two-year
agreement with Tyson Foods Inc. to provide telecommunications and Internet
services to its over-the-road fleet of 954 professional truck drivers. Tyson
is one of the largest private fleet operators in the United States and this is
PNV's first major private fleet contract. Additionally, both Peterbilt and
Kenworth recently introduced the availability of factory installed wiring of
PNV connectors as standard equipment on selected models of Class 8 trucks.
PNV INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(UNAUDITED)
Three Months Ended
March 31, June 30,
1999 2000 1999 2000
Net Revenues $2,288 $4,722 $2,456 $5,557
Loss from operations (6,985) (16,205) (12,983) (17,512)
Net Loss (9,202) (18,079) (14,996) (19,997)
Preferred stock
dividends and
amortization of
preferred stock
issuance cost (729) -- (708) --
Accretion of series C
Preferred shares to
fair value -- -- (88) --
Net loss attributable
to common
stockholders $(9,931) $(18,079) $(15,792) $(19,997)
Basic and diluted
net loss per share $(2.30) $(1.14) $(3.65) $(1.25)
Shares used to compute
basic and diluted net
loss per share 8,757,295 15,890,602 4,321,025 15,944,864
Fiscal Year Ended
June 30,
1999 2000
Net Revenues $8,453 $17,489
Loss from operations (31,846) (58,982)
Net Loss (39,772) (67,788)
Preferred stock dividends and amortization
of preferred stock issuance cost (2,843) (5,826)
Accretion of series C Preferred shares
to fair value (88) (13,440)
Net loss attributable to common stockholders $(42,703) $(87,054)
Basic and diluted net loss per share $(9.89) $(7.88)
Shares used to compute basic
and diluted net loss per share 4,318,456 11,044,001