Broomfield-based Level 3 Communications reported Thursday that its first-quarter net loss nearly quadrupled after the company incurred a large one-time charge as part of a debt restructuring.
The company posted a loss of $647 million, or 44 cents a share, compared with a net loss of $168 million, or 20 cents a share, for the first quarter of 2006.
This year’s first-quarter loss included a $427 million charge, or 29 cents per share, connected to the refinancing of about $3 billion in long-term debt.
Level 3 stock dropped 45 cents, or 7 percent, to close at $5.73 a share Thursday. The fiber-optic-communications network operator provides high- speed Internet connections for businesses.
Excluding the one-time charge, Level 3 posted a net loss of 15 cents a share in the first quarter. Analysts polled by Thomson Financial expected the company to post a loss of 22 cents a share.
The company recorded revenue of $1.056 billion for the first quarter of 2007, compared with revenue of $822 million during the same quarter a year ago. It said it reduced $110 million in annualized interest expenses as part of its debt restructuring.
“While we see opportunity to improve our balance sheet … we think the heavy lifting is behind us,” Level 3 chief executive James Crowe said during a conference call with analysts.
Crowe didn’t rule out the possibility of another acquisition by the company, which has spent about $3.9 billion in cash and stock to acquire seven companies since December 2005.
“The M&A environment continues to be robust,” Crowe said in response to a question about mergers and acquisitions. “We think consolidation is sensible.”
