RCN Corp. reported improved fourth-quarter results Friday and added that it
was negotiating with lenders to reduce debt.
In a prepared statement, RCN said it is in discussions with its lenders to
amend its credit agreement, which would result in a 'modified business plan
focused on the development of the company's business in existing markets with
limited expansion and no new markets.'
RCN said that if it cannot amend the agreement, it 'may or may not remain in
compliance with certain of its existing bank covenants later in the year.'
For the fourth quarter, RCN reported revenue up 26 percent and a pro forma
cash-flow loss of $34.6 million, a 69 percent improvement over the prior
The company also reported net income in the quarter of $210 million ($2.15
per share), largely due to an extraordinary gain of $408.5 million from the
early retirement of debt. Without that gain, RCN would have had a loss of $198.5
million ($2.03 per share) in the period.
RCN said its Greater Boston market achieved positive cash flow in the period,
one quarter ahead of schedule.
Network connections rose by 46,800 in the quarter to 827,000, and connections
to 'ResiLink' -- its bundled video, voice and data package -- increased to
231,182, a 132 percent gain over the prior year.