On Command Reports ‘Best Performing Quarter’ In 15 Months

DENVER— On Command Corp., a provider of in-room, interactive services, business information and guest services for the lodging industry, reported positive first quarter results, and deemed it the “best performing quarter” in 15 months. On Commands said first quarter revenue and operating cash flow (EBITDA and non-recurring relocation and restructuring expenses) was $57.4 million (down $5 million) and $15.2 million (up $600,000) from the corresponding period in 2001. The decrease in first quarter revenue, compared to the same period in 2001, is attributable to an approximate 5.5% decrease in hotel occupancy rates for the quarter. The increase in operating cash flow results is primarily attributable to effectively controlling operating costs and increased revenue from short programming features, the digital music product and TV Internet servicesy. Highlights for the first quarter include the following: — Seeing an increased quarter-over-quarter operating cash flow margin (operating cash flow divided by total revenue) to 26.5% from 23.5%, which is the “best performing quarter” for 15 months. — Realizing $4.8 million in quarter-over-quarter cost-savings benefits as a result of the companys restructuring plan. — Launching digital upgrade to tape-based platform. — Executing agreements with new and existing hotels totaling more than 15,700 rooms. — Adding digital music product to 24,000 rooms in the first quarter. — Implementing industrys first full-screen, power-up TV channel with hotel customization capability. — Creating a new TV Internet browser with AOL, Hotmail and Yahoo compatibility. — Having first $1 million-grossing feature titles in more than eight months. With respect to On Commands financial results for the year ending December 31, 2002, On Command reaffirmed its expectation of total revenue to be between $235 million and $245 million and operating cash flow to be between $64 million and $68 million. On Commands 2002 capital expenditure plan is expected to be approximately $60 million.