Broomfield-based Level 3 Communications reported today that its first quarter net loss more than doubled compared with the same quarter a year ago after the company took a large one-time charge to restructure debt.
The company posted a net loss of $647 million, or 44 cents a share, compared with a net loss of $237 million, or 20 cents a share, during the first quarter of 2006.
This year’s first quarter loss included a $427 million charge, or $0.29 per share, connected to the restructure about $3 billion in long-term debt. Last year’s fourth quarter loss included a one-time charge of $54 million, or 5 cents a share.
Level 3 stock dropped about 5 percent during midday trading to $5.85 a share. The fiber-optic communications network operator provides high-speed Internet connections for companies.
Excluding the one-time charge, Level 3 posted a net loss of 15 cents a share during the first quarter of this year. Analysts polled by Thomson Financial expected the company to post a loss of 22 cents a share.
The company posted revenue of $1.056 billion for the first quarter 2007, compared to revenue of $846 million for the fourth quarter a year ago.
The company said its debt restructuring has led to a $110 million reduction in annualized interest expenses.
“We think the heavy lifting is behind us,” Level 3 chief executive James Crowe said about the company’s balance sheet work on a conference call with analysts today.
Level 3 has acquired several companies over the past year. Level 3 president Kevin O’Hara said today that “significant progress” has been made on the integration of those companies.
“We are pleased with our results for the first quarter, particularly with the substantial progress we made in reducing and restructuring our long-term debt and the integration of our acquired businesses, as well as the continued revenue growth from our core services,” Crowe said in a statement.
