RYE, N.Y., March 30, 2015 /PRNewswire/ -- LICT Corporation
("LICT"; OTC Pink®: LICT) reports preliminary, unaudited
results for the fourth quarter ended December 31, 2014. LICT's financial
statements for the year ended December 31,
2014 are in the process of being finalized, including final
review of impairment of goodwill, and audited by the company's firm
of independent certified public accountants. This process
could result in adjustments to our preliminary fourth quarter 2014
results.
FOURTH QUARTER RESULTS – Revenues increased by $0.8 million, or 4.0%, to $21.7 million compared to the corresponding
quarter in 2013. EBITDA before corporate costs was
$9.4 million, as compared to
$9.1 million in the previous year's
fourth quarter.
Regulated revenues were $13.3
million in the 2014 quarter, the same as the prior year
quarter. Non-regulated revenues increased 10.1% to $8.3 million from the prior year's $7.5 million, principally due to increased
broadband and competitive local exchange carrier ("CLEC") revenues.
Operating costs, excluding depreciation, increased by $0.6 million from $12.1
million to $12.8
million. Corporate expenses were $0.3 million, which was $0.4 million lower than the fourth quarter of
2013, due to certain accrual adjustments for compensation and audit
fees.
In December 2014, the Company
closed the sale of its DFT Communications Corporation ("DFT")
subsidiary to Brick Skirt Holdings, Inc., an entity owned by DFT's
founding family, the Maytums of Fredonia,
NY. DFT provides broadband, voice and other
telecommunications services in areas of western New York State, principally the Dunkirk/Fredonia, Cassadaga and Jamestown areas. Effective as of the
sale, LICT is treating the results of DFT as a discontinued
operation and its contributions to LICT's consolidated operating
results have been separated from amounts previously reported.
Earnings per share, excluding the results of DFT, during the
fourth quarter were $101 in 2014
versus $80 in 2013, an increase of
26.7%. Shares outstanding at December
31, 2014, were 22,272 versus 22,486 at December 31, 2013.
FULL YEAR RESULTS – For the year ended December 31, 2014, LICT recorded revenues of
$85.9 million and EBITDA, prior to
corporate costs but including cash received from our equity
affiliates, of $37.8 million. The
company is currently expecting that revenues in 2015 will be
approximately $87 million and EBITDA,
prior to corporate costs but including cash received from our
equity affiliates, will be approximately $38
million.
CAPITAL EXPENDITURES AND DEPRECIATION EXPENSE – In 2014, capital
expenditures were $4.9 million for
the fourth quarter and $16.3 million
for the full year. This reflects our commitment to provide
the communities we serve with enhanced communication capabilities
and our continued investment in the improvement of our products and
in our network infrastructure, particularly our broadband networks.
Through upgraded electronics and fiber extensions deeper into our
networks, we have improved the speed, the capacity and the
reliability of our broadband service offerings.
FCC SPECTRUM AUCTION 97-Advanced Wireless Service (AWS-3) – A
subsidiary of the Company, Lynch 3G Communications Corporation,
participated in the Federal Communications Commission ("FCC")
Auction 97, Advanced Wireless Services (AWS-3) Spectrum. We were
outbid by behemoths, some of which received small business
discounts. The Auction concluded in February 2014 and the subsidiary received back
from the FCC its Auction deposit of $19.0
million.
BROADBAND REGULATION – In April
2014, the FCC ordered further modifications to
Intercarrier Compensation ('ICC') and the Universal Service
Fund ("USF"), and issued a Further Notice of Proposed Rulemaking
("FNPRM"). Due to the many unresolved items in the FNPRM, which may
impact "rate-of-return carriers" including many of our companies,
it is not possible to predict the impact that the FCC's ICC and USF
reforms will have on LICT's future revenues at this time. ICC
and USF programs generate, on a combined basis, approximately 40%
of our revenues. We believe that government policy will
continue to encourage and support communication services in rural
areas, but there is no certainty that such support will be
continued at historical levels. As a result of this, as well as
opportunities created from new technologies, including the
internet, we have focused on developing non-regulated, high speed
businesses, such as broadband service by fiber optic and DSL
technologies, to supplement our traditional rural telephone
services.
OPERATING STATISTICS – As of December 31,
2014, the Company's DSL penetration in its franchised
telephone service territories, based on total RLEC voice lines, was
71.6%, compared to 68.5% as of December
31, 2013. Our summary operating statistics, excluding
DFT in 2013, are as follows:
|
|
|
Dec. 31,
|
|
|
Percent
|
|
Dec. 31,
|
|
Increase
|
Increase
|
|
2014
|
|
2013
|
|
(Decrease)
|
(Decrease)
|
|
ILEC voice
lines
|
28,001
|
|
29,018
|
|
(1,017)
|
(3.5%)
|
|
CLEC voice
lines
|
5,019
|
|
4,165
|
|
854
|
20.5%
|
|
Total voice
lines
|
33,020
|
|
33,183
|
|
(163)
|
(0.5%)
|
|
Broadband
lines
|
26,072
|
|
24,546
|
|
1,526
|
6.2%
|
|
LD Resale
lines
|
15,531
|
|
15,211
|
|
320
|
2.1%
|
|
Video
Subscribers
|
6,117
|
|
6,575
|
|
(458)
|
(7.0%)
|
BALANCE SHEET - As of December 31,
2014, the company had approximately $18.2 million in cash and $73.5 million in total debt. In
February 2015, the Auction 97 deposit
was returned and the associated loan was repaid. Pro forma
for the return of the deposit, the company's net debt at
December 31, 2014 was of $36.3 million.
REFINANCING THE COMPANY – In December
2014, the Company secured a $30
million line of credit agreement to replace its existing
$25 million line of credit. This
replacement line expires in December 2017. The line provides
the company with increased financial flexibility for potential
shareholder compensation, expanded business initiatives, higher
borrowing capacity, and a lower interest rate.
SHARE REPURCHASES – During the year ended December 31, 2014, the Company repurchased 214
shares for $0.8 million at an average
price of $3,618 per share.
As of December 31, 2014,
22,272 shares were outstanding. We have 755 shares left in
our 1,000 share buyback authorization.
This release contains certain forward-looking information within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, including without limitation anticipated financial
results, financing, capital expenditures and corporate
transactions. It should be recognized that such information
is based upon certain assumptions, projections and forecasts,
including without limitation business conditions and financial
markets, regulatory and other approvals, and the cautionary
statements set forth in documents filed by LICT on its website,
www.lictcorp.com. As a result, there can be no assurance that
any possible transactions will be accomplished or be successful or
that financial targets will be met, and such information is subject
to uncertainties, risks and inaccuracies, which could be
material.
LICT Corporation is a holding company with subsidiaries in
broadband and other telecommunications services that actively seeks
acquisitions, principally in its existing business areas.
LICT Corporation is listed on the OTC Pink® under the
symbol LICT. For further information visit our website at
http://www.lictcorp.com.
Release:
15-1
|
LICT
CORPORATION
|
|
|
|
Exhibit
A
|
|
Statements of
Operations and Selected Balance Sheet Data
|
|
Page 1 of
2
|
|
Preliminary and
Un-Audited
|
|
|
|
|
|
|
(In Thousands, Except
Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENTS OF
OPERATIONS
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2014
|
2013
|
|
2014
|
2013
|
|
|
|
|
|
|
|
Revenues
|
$21,669
|
$20,830
|
|
$85,857
|
$80,757
|
|
|
|
|
|
|
|
Cost and
Expenses:
|
|
|
|
|
|
|
Cost of revenue,
excluding depreciation
|
9,918
|
9,333
|
|
38,064
|
36,342
|
|
Selling, general and
administration
|
2,840
|
2,779
|
|
11,398
|
11,406
|
|
Corporate office
expense
|
314
|
738
|
|
2,622
|
3,112
|
|
Depreciation and
amortization
|
4,378
|
4,606
|
|
17,659
|
16,456
|
|
Operating profit
(a)
|
4,219
|
3,374
|
|
16,114
|
13,441
|
|
|
|
|
|
|
|
Other
Income(Expense)
|
|
|
|
|
|
|
Investment
income
|
28
|
26
|
|
446
|
492
|
|
Interest
expense
|
(905)
|
(993)
|
|
(3,783)
|
(4,107)
|
|
Equity in earnings of
affiliated companies
|
769
|
295
|
|
2,025
|
1,643
|
|
Other
gains/(losses)
|
(106)
|
(131)
|
|
(51)
|
279
|
|
(214)
|
(803)
|
|
(1,363)
|
(1,693)
|
|
|
|
|
|
|
|
Income Before
Income Tax Provision
|
4,005
|
2,571
|
|
14,751
|
11,748
|
|
Provision For Income
Taxes
|
(1,743)
|
(772)
|
|
(5,889)
|
(4,294)
|
|
Net Income before
discontinued operations
|
2,262
|
1,799
|
|
8,862
|
7,454
|
|
Net Income (Loss)
from discontinued operations
|
(258)
|
56
|
|
57
|
593
|
|
Net Gain from sale of
discontinued operation
|
759
|
--
|
|
759
|
--
|
|
Noncontrolling
Interests
|
--
|
--
|
|
--
|
(18)
|
|
Net Income
attributable to LICT
|
$2,763
|
$1,855
|
|
$9,678
|
$8,065
|
|
|
|
|
|
|
|
Capital
Expenditures
|
$4,938
|
$6,271
|
|
$16,307
|
$18,562
|
|
|
|
|
|
|
|
Weighted Average
Shares Used In Earnings
|
|
|
|
|
|
|
Per Share
Computations
|
22,312
|
22,486
|
|
22,368
|
22,724
|
|
Actual shares
outstanding at end of period
|
22,272
|
22,486
|
|
22,272
|
22,486
|
|
|
|
|
|
|
|
Basic and Diluted
Earnings Per Share
|
|
|
|
|
|
|
Net income
|
$101.38
|
$80.01
|
|
$396.19
|
$328.03
|
|
Net Income (Loss) from
discontinued operations
|
(11.56)
|
2.49
|
|
2.55
|
26.10
|
|
Net Gain from sale of
discontinued operation
|
34.02
|
--
|
|
33.93
|
--
|
|
Noncontrolling
interests
|
--
|
--
|
|
--
|
0.79
|
|
Net income
attributable to LICT
|
$123.84
|
$82.50
|
|
$432.67
|
$354.92
|
|
|
|
|
|
|
|
(a) see EBITDA on
page 2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LICT
Corporation
Statements of
Operations and Selected Balance Sheet
Data-Continued
Preliminary and
Un-Audited
(in thousands, Except
Per Share Data)
|
Exhibit A
Page 2 of 2
|
|
SELECTED BALANCE
SHEET DATA
|
Dec.
31,
|
Dec.
31,
|
|
2014
|
2013
(Note)
|
|
Cash and Cash
Equivalents
|
$18,155
|
$8,774
|
|
Auction 97 and 96
Deposits
|
19,000
|
11,000
|
|
|
|
|
Notes
Payable
|
$--
|
$17,200
|
|
Long-Term Debt
(including current portion)
|
58,466
|
46,129
|
|
Total
Debt
|
$58,466
|
$63,329
|
|
|
|
|
Short-Term Loan from
Affiliate
|
15,000
|
11,000
|
|
Liabilities,
including taxes, other than debt
|
$32,415
|
$32,898
|
|
|
|
|
Shareholders' Equity
attributable to LICT
|
$98,504
|
$89,563
|
|
|
|
|
Shares Outstanding at
Date
|
22,272
|
22,486
|
|
|
|
|
|
Note: The December
31, 2013 Balance Sheet Data has been adjusted to exclude amounts
associated with DFT Communications Corporation which is being
treated as a discontinued operation.
|
|
|
|
EBITDA
|
|
EBITDA is an
established measure of operating performance and liquidity
that is commonly reported and widely used by analysts, investors,
and other interested parties in the telecommunications industry
because it eliminates many differences in financial,
capitalization, and tax structures, as well as non-cash and
non-operating charges to earnings. We believe that EBITDA trends
are a valuable indicator of whether our operations are able to
produce sufficient operating cash flow to fund working capital
needs, service debt obligations, and fund capital
expenditures.
|
|
|
EBITDA equals net
income (loss), before interest expense, income tax expense
(benefit), depreciation and amortization expense, investment
income, equity in earnings of affiliated companies, gain (loss) on
sale of investment, impairment charges, and net income from
discontinued operations. EBITDA also now includes the cash
distributions we receive from the equity in earnings of affiliated
companies. Although we do not have majority voting control of
such companies, we have the ability to significantly influence
financial and accounting policies. The inclusion of cash received
from equity companies is a change from past practice.
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Dec.
31,
|
|
Dec.
31,
|
|
2014
|
2013
|
|
2014
|
2013
|
|
EBITDA
|
|
|
|
|
|
|
Operating
Subsidiaries
|
$8,911
|
$8,718
|
|
$36,395
|
$33,009
|
|
Cash received from
equity affiliates
|
500
|
375
|
|
1,438
|
975
|
|
9,411
|
9,093
|
|
37,833
|
33,984
|
|
Corporate Office
Expense
|
(314)
|
(738)
|
|
(2,622)
|
(3,112)
|
|
Total
EBITDA
|
9,097
|
8,355
|
|
35,211
|
30,872
|
|
Depreciation and
amortization
|
(4,378)
|
(4,606)
|
|
(17,659)
|
(16,456)
|
|
Less Cash received
from equity affiliates, above
|
(500)
|
(375)
|
|
(1,438)
|
(975)
|
|
Operating
profit
|
$4,219
|
$3,374
|
|
$16,114
|
$13,441
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lict-corporation-reports-preliminary-fourth-quarter-2014-results-300057504.html
SOURCE LICT Corporation
