XO Holdings Reports Fourth Quarter and 2008 Financial Results

HERNDON, VA--(Marketwire - March 16, 2009) - XO Holdings, Inc. (OTCBB: XOHO) today announced its fourth quarter and full year 2008 financial and operational results, reporting year-over-year growth in revenue, adjusted EBITDA and net income.

Total revenue for the fourth quarter of 2008 was $375.2 million, an increase of $11.5 million, or 3.2 percent, compared to the same period last year. Overall, total 2008 revenue was $1.478 billion, an increase of $48.9 million, or 3.4 percent, compared to 2007. The increase in revenue for both the fourth quarter and full year was driven by growth in Data and IP services, which is a strategic area of focus for the company as it transitions to profitable higher-growth services.

Adjusted EBITDA (a non-GAAP financial measure) was $34.4 million in the fourth quarter of 2008, compared to $19.5 million in the same period last year, resulting from network optimization savings initiatives and lower selling, general & administrative expenses (SG&A). Adjusted EBITDA increased to $110.0 million for the full year 2008, compared to $106.7 million for 2007.

Net income for the fourth quarter 2008 was $21.5 million compared to a net loss of $55.1 million for the same period last year. For the full year 2008, the company had a net loss of $75.3 million compared to a net loss of $117.4 million in 2007. Net income for the fourth quarter and full year 2008 was impacted by an investment gain of $35.9 million related to the $57.4 million Allegiance cash settlement.

"We continue to deliver consistent growth in critical strategic areas for the company, especially in Data and IP -- not only in the quarter but for the entire year," said Carl J. Grivner, chief executive officer of XO Holdings. "We believe that our customers clearly recognize the value of our network and our products."

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