Consolidated Communications Holdings Reports Fourth Quarter and Full Year 2006 Results
20 March 2007
Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) today announced results for the fourth quarter and year ended December 31, 2006. The company reported revenues of $81.7 million for the quarter and $320.8 million for the twelve-month period. Adjusted EBITDA and net cash provided by operating activities for the quarter were $35.7 million and $25.0 million, respectively, and for the twelve-month period were $139.8 million and $84.6 million, respectively.
"Throughout 2006, we executed on plan and consistently delivered strong operational and financial results," said Bob Currey, Consolidated's president and chief executive officer. "During the year, we completed the IP backbone network, which facilitated the launch of our IPTV product in Texas, and grew total connections by over 10,000. We successfully completed Phase II of our billing integration, improved our cost structure, and repurchased 3.8 million shares from an initial investor in a cash accretive transaction. For 2006, we generated almost $140.0 million in adjusted EBITDA and excluding results from asset sales, our payout ratio was 76.6 percent."
"Our DSL and IPTV sales and marketing campaigns drove the over 4,600 quarterly increase and 18,300 annual increase in broadband connections. DSL had an outstanding quarter adding over 3,300 subscribers. We ended the year with over 52,700 subscribers, representing a 35.0 percent annual increase. 2006 was our best year ever in terms of net DSL additions."
"We added over 1,300 IPTV subscribers in the fourth quarter, bringing the total subscriber base to nearly 7,000. Illinois subscribers grew by over 800, and we added almost 500 subscribers in Texas. As we did initially in Illinois, we are doing a controlled launch in Texas to ensure the network and back office processes are performing well. To date, everything is on track and results are meeting our expectations. Across both states we now pass almost 90,000 homes, adding almost 17,000 homes in Texas in the fourth quarter. With over 90.0 percent of our IPTV customers taking our triple play, we are the leading network based triple play provider in our markets," Currey concluded.
Operating Statistics at December 31, 2006, Compared to December 31, 2005
-- Total connections were 293,375, an increase of 10,013, or 3.5 percent.
-- Total local access lines were 233,689, a decrease of 8,335, or 3.4
percent. Excluding the impact of the previously announced adjustment
in the third quarter of 2006, access lines would have decreased by
7,555 or 3.1 percent.
-- Broadband connections were 59,686, an increase of 18,348 or 44.4
percent.
-- DSL subscribers were 52,732, an increase of 13,540, or 34.5
percent.
-- IPTV subscribers were 6,954, an increase of 4,808, or 224.0
percent.
-- Long distance lines were 148,181, an increase of 4,299, or 3.0
percent.
-- Total service bundles were 43,175, an increase of 6,548, or 17.9
percent.
Steve Childers, Consolidated's chief financial officer, said, "As expected, our financial results were strong for both the quarter and for the full year. I am also pleased to announce two items that strengthen our capital structure. First, on February 26, 2007, we successfully completed the repricing of our senior secured credit facility. The interest rate on our $464.0 million term debt was lowered by 25 basis points to LIBOR plus 175 basis points. This will result in approximately $1.2 million in annual cash interest savings. Second, in the fourth quarter we executed $150.0 million in interest rate swaps. After giving effect to the new swap arrangements, interest rates on 86.2 percent of our $464.0 million credit facility will be fixed. Had the credit facility repricing and swaps been in effect on December 31, 2006, our weighted average interest rate on term debt would have been 6.60 percent."
Cash Available to Pay Dividends
For the quarter, cash available to pay dividends, or CAPD, was $14.3 million and the dividend payout ratio was 70.2 percent. As of December 31, 2006, cumulative available cash, which is defined in the dividend restriction covenants in the credit facility as the difference between CAPD and dividends paid for the period since September 30, 2005, was approximately $25.4 million. At December 31, 2006, cash and cash equivalents were $26.7 million. The company made capital expenditures of $8.4 million during the fourth quarter, bringing the year-to-date total to $33.4 million.
Financial Highlights for the Fourth Quarter Ended December 31, 2006
-- Revenues were $81.7 million, compared to $81.2 million in the fourth
quarter of 2005. The increase was driven by a $1.8 million increase
in Data and Internet Services due to growth in DSL and IPTV
subscribers and a $0.4 million increase in Network Access Services
primarily due to increases in switched access rates. These increases
were substantially offset by declines in Subsidies and Long Distance.
The reduction in Subsidies revenue was primarily attributable to
declines in Universal Service Fund draws associated with changes in
national average loop cost and lower recoverable expenses. These
reductions were partially offset by a $0.5 million prior period
subsidy receipt. The decrease in Long Distance was primarily related
to a decline in the average rate per minute associated with the
increased penetration of our unlimited long distance plan.
-- Income from operations was $4.8 million, compared to $15.0 million in
the fourth quarter of 2005. The primary driver of the decrease was an
$11.2 million impairment charge associated with the customer list
valuations assigned to our operator services and telemarketing
businesses. The non-cash impairment charge was associated with two
non-core businesses and has no impact on the credit agreement
covenants that govern our ability to pay dividends.
-- Interest expense, net was $11.6 million, compared to $10.6 million in
the same quarter last year. The increase was primarily driven by the
increase in bank debt associated with the share repurchase in the
third quarter of 2006.
-- Income tax expense/(benefit) was $(3.3) million, compared to $7.2
million in the fourth quarter of 2005. The fourth quarter of 2006
reflects the impact of the impairment charge. Impacting the fourth
quarter of 2005 was $4.6 million in incremental tax expense associated
with the company's tax-free reorganization plan made in connection
with the IPO.
-- Net loss was $0.5 million, compared to a net loss of $2.1 million in
the fourth quarter of 2005.
-- Net loss per common share was $0.02. A number of factors affected
2006 and 2005 net income per share in ways that make comparisons
difficult. "Adjusted net income per share" excludes these factors as
presented in the table provided in this release. On that basis,
"adjusted net income per share" for the quarter ended December 31,
2006 was $0.21.
-- Adjusted EBITDA was $35.7 million and net cash provided by operating
activities was $25.0 million, compared to $35.6 million and $32.2
million, respectively, for the fourth quarter of 2005. Total net debt
to last twelve month Adjusted EBITDA coverage ratio was 4.1 times to
one, and all other coverage ratios were also within compliance levels
of our credit facility.
Financial Highlights for the Twelve Months Ended December 31, 2006
-- Revenues were $320.8 million, compared to $321.4 million for the prior
year period. The reduction reflects decreases in Subsidies, Local
Calling Services and Long Distance revenues, partially offset by
increases in Network Access Services revenue associated with increased
demand for special access circuits, increased Data and Internet
Services revenue driven by growth in both DSL and IPTV subscribers,
and increased Other Operations revenue.
-- Net income was $13.3 million, compared to a net loss of $4.5 million
for the prior year period. The year-over-year increase was due to
operating efficiency improvements, the deferred tax benefit
attributable to the changes in the Texas franchise tax law, lower non-
cash stock compensation expense, and lower interest expense.
-- Net income per common share was $0.47. A number of factors affected
2006 and 2005 net income per share in ways that make comparisons
difficult. "Adjusted net income per share" excludes these factors as
presented in the table provided in this release. On that basis,
"adjusted net income per share" for the year ended December 31, 2006
was $0.67.
-- Adjusted EBITDA was $139.8 million and net cash provided by operating
activities was $84.6 million, compared to $136.8 million and $79.3
million, respectively. The increase in Adjusted EBITDA was primarily
due to operating efficiency improvements and increased cash
distributions from cellular partnership investments, partially offset
by a net $3.0 million decrease in prior period subsidy receipts.
Financial Guidance
For 2007, the company provides the following guidance: Capital expenditures are expected to be in the range of $32 million to $34 million; cash interest expense is expected to be in the range of $43.5 million to $45 million; and cash income taxes are expected to be in the range of $12 million to $14 million.
Dividend Payments
The company paid its latest quarterly dividend of $0.38738 per common share on February 1, 2007 to stockholders of record on January 15, 2007. On March 5, 2007, the company's board of directors declared its next quarterly dividend of $0.38738 per common share, which is payable on May 1, 2007 to stockholders of record at the close of business on April 15, 2007. The board of directors has indicated its intention to continue paying the quarterly dividend at the current level for 2007.
Conference Call Information
The company will host a conference call today at 11:00 a.m. Eastern Time / 10:00 a.m. Central Time. The call is being webcast and can be accessed from the "Investor Relations" section of the company's website at http://www.consolidated.com . The webcast will also be archived on the company's website. If you do not have internet access, the conference call dial-in number is 1-800-642-1783. International parties can access the call by dialing 1-706-679-5600. A telephonic replay of the conference call will also be available starting two hours after completion of the call until March 12, 2007 at midnight Eastern Time. To hear the replay, parties in the United States and Canada should call 1-800-642-1687 and international parties should call 1-706-645-9291 and enter pass code 7168732.
Use of Non-GAAP Financial Measures
This press release, as well as the conference call, includes disclosures regarding "Adjusted EBITDA", "cash available to pay dividends", "cumulative available cash", "total net debt to last twelve month Adjusted EBITDA coverage ratio", and "adjusted net income per share", all of which are non-GAAP financial measures. Accordingly, they should not be construed as alternatives to net cash from operating or investing activities, cash and cash equivalents, cash flows from operations or net income (loss) as defined by GAAP and are not, on their own, necessarily indicative of cash available to fund cash needs as determined in accordance with GAAP. In addition, not all companies use identical calculations, and these non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. A reconciliation of the differences between these non-GAAP financial measures and the most directly comparable financial measures presented in accordance with GAAP is included in the tables that follow.
Adjusted EBITDA, which corresponds to pro forma Bank EBITDA as used and defined in the prospectus dated July 21, 2005 filed in connection with the IPO, is comprised of historical EBITDA, as adjusted for certain adjustments permitted and contemplated by our credit facility.
EBITDA is defined as net earnings (loss) before interest expenses, income taxes, depreciation and amortization on an historical basis. We believe net cash provided by operating activities is the most directly comparable financial measure to EBITDA under GAAP. EBITDA is a non-GAAP financial measure.
Cash available to pay dividends represents Adjusted EBITDA plus cash interest income less (1) cash interest expense (after giving pro forma effect to the IPO as if it had been completed on July 1, 2005), (2) capital expenditures and (3) cash taxes.
We present Adjusted EBITDA and cash available to pay dividends for several reasons. Management believes Adjusted EBITDA and cash available to pay dividends are useful as a means to evaluate our ability to fund our estimated uses of cash (including interest on our debt) and pay dividends. In addition, we have presented Adjusted EBITDA and cash available to pay dividends to investors in the past because they are frequently used by investors, securities analysts and other interested parties in the evaluation of companies in our industry, and management believes presenting them here provides a measure of consistency in our financial reporting. Adjusted EBITDA and cash available to pay dividends, referred to as Available Cash in our credit agreement, and cumulative available cash are also components of the restrictive covenants and financial ratios contained in the agreements governing our debt that require us to maintain compliance with these covenants and limit certain activities, such as our ability to incur debt and to pay dividends. The definitions in these covenants and ratios are based on Adjusted EBITDA, cash available to pay dividends and cumulative available cash after giving effect to specified charges. As a result, management believes the presentation of Adjusted EBITDA and cash available to pay dividends, as supplemented by these other items, provide important additional information to investors. In addition, Adjusted EBITDA and cash available to pay dividends provide our board of directors with meaningful information to determine, with other data, assumptions and considerations, our dividend policy and our ability to pay dividends under the restrictive covenants in the agreements governing our debt and to measure our ability to service and repay debt.
These non-GAAP financial measures have certain shortcomings. In particular, Adjusted EBITDA does not represent the residual cash flows available for discretionary expenditures, since items such as debt repayment and interest payments are not deducted from such measure. Similarly, while we may generate cash available to pay dividends, we are not required to use any such cash to pay dividends, and the payment of any dividends is subject to declaration by our board of directors, compliance with applicable law and the terms of our credit agreement and the indenture governing our senior notes.
Because Adjusted EBITDA is a component of Dividend Payout Ratio and the ratio of total net debt to last twelve month Adjusted EBITDA, these measures are also subject to the material limitations discussed above. In addition, the ratio of total net debt to last twelve month Adjusted EBITDA is subject to the risk that we may not be able to use the cash on the balance sheet to reduce our debt on a dollar-for-dollar basis. Management believes these ratios are useful as a means to evaluate our ability to incur additional indebtedness in the future and, together with adjusted net income per share, assist investors, securities analysts and other interested parties in evaluating the companies in our industry.
For a more detailed discussion of these and other limitations on the use of these non-GAAP financial measures, please see the section entitled "Dividend Policy and Restrictions" in our prospectus dated July 21, 2005. The prospectus is not incorporated by reference in this release.
About Consolidated
Consolidated Communications Holdings, Inc. is an established rural local exchange company (RLEC) providing voice, data and video services to residential and business customers in Illinois and Texas. Each of the operating companies has been operating in its local market for over 100 years. With approximately 234,000 local access lines, 53,000 DSL subscribers and 7,000 IPTV subscribers, Consolidated Communications offers a wide range of telecommunications services, including local and long distance service, custom calling features, private line services, dial-up and high-speed Internet access, digital TV, carrier access services, and directory publishing. Consolidated Communications is the 15th largest local telephone company in the United States.
Safe Harbor
Any statements contained in this press release that are not statements of historical fact, including statements about management's beliefs and expectations, are forward-looking statements and should be evaluated as such. The words "anticipates", "believes", "expects", "intends", "plans", "estimates", "targets", "projects", "should", "may", "will" and similar words and expressions are intended to identify forward-looking statements. Such forward-looking statements reflect, among other things, the company's current expectations, plans, strategies and anticipated financial results and involve a number of known and unknown risks, uncertainties and factors that may cause the actual results to differ materially from those expressed or implied by these forward-looking statements. These risks include, but are not limited to the following: various risks to stockholders of not receiving dividends and risks to the company's ability to pursue growth opportunities if the company continues to pay dividends according to the current dividend policy; various risks to the price and volatility of the common stock; the substantial amount of debt and the company's ability to incur additional debt in the future; the company's need for a significant amount of cash to service and repay the debt and to pay dividends on the common stock; restrictions contained in the debt agreements that limit the discretion of management in operating the business; the ability to refinance the existing debt as necessary; regulatory changes, rapid development and introduction of new technologies and intense competition in the telecommunications industry; risks associated with the company's possible pursuit of acquisitions; economic conditions in the company's service areas in Illinois and Texas; system failures; losses of large customers or government contracts; risks associated with the rights-of-way for the network; disruptions in the relationship with third party vendors; losses of key management personnel and the inability to attract and retain highly qualified management and personnel in the future; changes in the extensive governmental legislation and regulations governing telecommunications providers and the provision of telecommunications services; telecommunications carriers disputing and/or avoiding their obligations to pay network access charges for use of the company's network; high costs of regulatory compliance; the competitive impact of legislation and regulatory changes in the telecommunications industry; liability and compliance costs regarding environmental regulations, and the other risks identified in the section entitled "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2005, as well as in the other documents that we file from time to time with the Securities and Exchange Commission.
Many of these risks are beyond management's ability to control or predict. All forward-looking statements attributable to the company or persons acting on the company's behalf are expressly qualified in their entirety by the cautionary statements and risk factors contained in this press release and the company's filings with the Securities and Exchange Commission. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the Securities and Exchange Commission, the company does not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.
- Tables Follow -
Consolidated Communications
Condensed Consolidated Balance Sheets
(Dollars in thousands)
December 31,
2006 2005
ASSETS
Current assets:
Cash and cash equivalents $26,672 $31,409
Accounts receivable, net 34,396 35,503
Prepaid expenses and other current assets 13,149 12,123
Total current assets 74,217 79,035
Property, plant and equipment, net 314,381 335,088
Intangibles and other assets 500,981 531,827
Total assets $889,579 $945,950
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $11,004 $11,743
Accrued expenses and other current
liabilities 54,742 56,116
Total current liabilities 65,746 67,859
Long-term debt 594,000 555,000
Other long-term liabilities 111,180 120,889
Total liabilities 770,926 743,748
Minority interests 3,695 2,974
Stockholders' equity:
Common stock, $0.01 par value 260 297
Paid in capital 199,858 254,162
Accumulated deficit (87,362) (57,533)
Accumulated other comprehensive income 2,202 2,302
Total stockholders' equity 114,958 199,228
Total liabilities and stockholders' equity $889,579 $945,950
Consolidated Communications
Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2006 2005 2006 2005
Revenues $81,678 $81,225 $320,767 $321,429
Operating expenses:
Cost of services
and products 25,329 26,436 98,093 101,159
Selling, general
and administrative
expenses 23,746 23,274 94,693 98,791
Impairment of
intangible assets 11,240 - 11,240 -
Depreciation and
amortization 16,554 16,527 67,430 67,379
Income from operations 4,809 14,988 49,311 54,100
Other income (expense):
Interest expense,
net (11,558) (10,631) (42,899) (53,443)
Other income, net 2,881 780 7,260 5,816
Income (loss) before
income taxes (3,868) 5,137 13,672 6,473
Income tax (benefit)
expense (3,347) 7,234 405 10,935
Net income (loss) (521) (2,097) 13,267 (4,462)
Dividends on redeemable
preferred shares - - - (10,263)
Net income (loss)
applicable to
common stockholders $(521) $ (2,097) $13,267 $(14,725)
Net income (loss) per
common share $(0.02) $(0.49) $0.47 $(0.83)
Consolidated Communications
Condensed Consolidated Statements of Cash Flows
(Dollars in thousands)
Three Months Ended Year Ended
December 31, December 31,
2006 2005 2006 2005
OPERATING ACTIVITIES
Net Income (loss) $(521) $(2,097) $13,267 $(4,462)
Adjustments to reconcile
net income (loss) to
cash provided
by operating
activities:
Depreciation and
amortization 16,554 16,527 67,430 67,379
Non-cash stock
compensation 607 1,346 2,482 8,590
Other adjustments,
net 6,533 14,380 8,083 18,013
Changes in operating
assets and
liabilities, net 1,857 2,073 (6,669) (10,220)
Net cash provided
by operating
activities 25,030 32,229 84,593 79,300
INVESTING ACTIVITIES
Proceeds from sale
of investments - - 5,921 -
Proceeds from sale
of assets 225 - 815 -
Capital expenditures (8,351) (9,498) (33,388) (31,094)
Net cash used in
investing
activities (8,126) (9,498) (26,652) (31,094)
FINANCING ACTIVITIES
Proceeds from
issuance of stock - (209) - 67,589
Proceeds from
issuance of
long-term
obligations - - 39,000 5,688
Payments made on
long-term
obligations - (11,825) - (86,934)
Payment of deferred
financing costs - (815) (262) (5,552)
Purchase of treasury
shares (87) - (56,823) (12)
Distribution to
preferred shareholders - - - (37,500)
Dividends on common
stock (10,043) (12,160) (44,593) (12,160)
Net cash provided
by (used in)
financing
activities (10,130) (25,009) (62,678) (68,881)
Net increase (decrease)
in cash and cash
equivalents 6,774 (2,278) (4,737) (20,675)
Cash and cash equivalents
at beginning of period 19,898 33,687 31,409 52,084
Cash and cash equivalents
at end of period $26,672 $31,409 $26,672 $31,409
Consolidated Communications
Consolidated Revenue by Category
(Dollars in thousands)
(Unaudited)
Three months ended Twelve Months Ended
December 31, December 31,
2006 2005 2006 2005
Telephone Operations
Local calling services $20,947 $21,115 $85,131 $88,203
Network access services 16,859 16,411 68,135 64,385
Subsidies 12,623 13,406 47,588 53,936
Long distance services 3,551 3,969 15,178 16,283
Data and Internet services 8,385 6,630 30,917 25,804
Other services 8,808 9,151 33,385 33,675
Total Telephone Operations 71,173 70,682 280,334 282,286
Other Operations 10,505 10,543 40,433 39,143
Total operating revenues $81,678 $81,225 $320,767 $321,429
Consolidated Communications
Schedule of ARPU Calculations
(Dollars in thousands, except average revenue per user data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2006 2005 2006 2005
Ending Access Lines 233,689 242,024 233,689 242,024
Average Access Lines 234,783 243,756 238,399 248,214
Telephone Operations Revenue $71,173 $70,682 $280,334 $282,286
Prior period subsidy settlements $481 $83 $(1,313) $1,704
Telephone Operations, excluding
prior period subsidy settlements $70,692 $70,599 $281,647 $280,582
Monthly Telephone Operations ARPU $101.05 $96.66 $97.99 $94.77
Monthly Telephone Operations ARPU,
excluding prior period subsidy
settlements $100.37 $96.54 $98.45 $94.20
ARPU, or average revenue per user, reflects revenue per average access
line
Consolidated Communications
Schedule of Adjusted EBITDA Calculation
(Dollars in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2006 2005 2006 2005
Historical EBITDA:
Net cash provided by
operating activities $25,030 $32,229 $84,593 $79,300
Adjustments:
Compensation from
restricted share plan (607) (1,346) (2,482) (8,590)
Other adjustments, net (6,533) (14,380) (8,083) (18,013)
Changes in operating assets
and liabilities (1,857) (2,073) 6,669 10,220
Interest expense, net 11,558 10,631 42,899 53,443
Income taxes (3,347) 7,234 405 10,935
Historical EBITDA (1) 24,244 32,295 124,001 127,295
Adjustments to EBITDA:
Integration, restructuring
and Sarbanes-Oxley (2) 601 1,994 3,684 7,400
Professional service
fees (3) - - - 2,867
Other income, net (4) (2,881) (780) (7,143) (3,036)
Investment
distributions (5) 1,849 771 5,516 1,590
Pension curtailment
gain (6) - - - (7,880)
Intangible assets
impairment (7) 11,240 11,240
Non-cash compensation (8) 607 1,346 2,482 8,590
Adjusted EBITDA $35,660 $35,626 $139,780 $136,826
Footnotes for Adjusted EBITDA:
(1) Historical EBITDA is defined as net earnings (loss) before interest
expense, income taxes, depreciation and amortization on a historical
basis.
(2) Represents certain expenses associated with integrating and
restructuring the Texas and Illinois businesses and Sarbanes-Oxley
start-up costs. For the fourth quarter 2006, this is comprised of
$0.4M in severance costs and $0.2M in billing integration costs. For
YTD 2006, this is comprised of $2.0M in severance, $0.8M in Sarbanes-
Oxley start-up costs and $0.9M in billing integration costs.
(3) Represents the aggregate professional service fees paid to certain
large equity investors prior to our initial public offering. Upon
closing of the initial public offering, these agreements terminated.
(4) Other, net includes the equity earnings from our investments,
dividend income and certain other miscellaneous non-operating items.
Key man life insurance proceeds of $2.8 million received in
June 2005 are not deducted to arrive at Adjusted EBITDA.
(5) For purposes of calculating Adjusted EBITDA, we include all cash
dividends and other cash distributions received from our investments.
(6) Represents a one-time $7.9 million curtailment gain associated with
the amendment of our Texas pension plan. The gain was recorded in
general and administrative expenses. However, because the gain is
non-cash and non-recurring, it is excluded from Adjusted EBITDA.
(7) Upon completion of our annual impairment review and as a result of a
decline in estimated future cash flows in the telemarketing and
operator services business, we determined that the value of the
customer lists associated with these businesses was impaired.
(8) Represents compensation expenses in connection with our Restricted
Share Plan, which because of the non-cash nature of the expenses are
being excluded from Adjusted EBITDA.
Consolidated Communications
Cash Available to Pay Dividends
(Dollars in thousands)
(Unaudited)
Three Twelve Three October 1,
Months Months Months 2005 to
Ended Ended Ended Dec. 31
Dec. 31, Dec. 31, Dec. 31, 2006
2006 2006 2005 (4)
Adjusted EBITDA $35,660 $139,780 $35,626 $175,406
- Cash interest expense (10,855) (40,613) (9,384) (49,997)
- Capital Expenditures (8,351) (33,388) (9,498) (42,886)
+ Proceeds from asset sales (1) - 6,594 - 6,594
- Cash income taxes (2,163) (8,237) (172) (8,409)
+ Cash interest income 95 745 174 919
- Repurchases of stock (2) (87) (87) - (87)
Cash available to pay dividends $14,299 $64,794 $16,746 $81,540
Quarterly Dividend $10,043 $44,593 $11,537 $56,130
Payout Ratio 70.2% 68.8% 68.9% 68.8%
Adjusted Payout ratio (3) 70.2% 76.6% 68.9% 74.9%
(1) Represents $590 and $83 of proceeds from the sale of idle property
during the three months ended September 30, 2006 and March 31, 2006,
respectively; and $5,921 of proceeds from the redemption of class C
shares of RTB stock in the three months ended June 30, 2006.
(2) Represents the cancellation of stock by employees to pay
withholding tax on shares vesting under the Company's Long Term
Incentive Plan.
(3) Represents the payout ratio excluding the effect of asset
sales.
(4) Represents cumulative available cash for the period from October 1,
2005 to December 31, 2006.
Consolidated Communications
Total Net Debt to LTM Adjusted EBITDA Ratio
(Dollars in thousands)
(Unaudited)
Summary of Outstanding Debt
Senior Notes $130,000
Term loan D 464,000
Total debt as of December 31, 2006 $594,000
Less cash on hand (26,672)
Total net debt as of December 31, 2006 $567,328
Adjusted EBITDA for the last twelve
months ended December 31, 2006 $139,780
Total Net Debt to last twelve months
Adjusted EBITDA 4.1x
Consolidated Communications
Adjusted Net Income Per Share
(Dollars in thousands)
(Unaudited)
Three Months Twelve
Ended Months Ended
December 31, December 31,
2006 2006
Reported net income applicable to
common stockholders $(521) $13,267
Deferred tax adjustment (811) (5,979)
Returns to provision tax true-up (408) 399
Third Quarter 2006 Litigation
Settlement, net of tax - 280
Impairment, net of tax 6,294 6,294
Severance, net of tax 243 1,115
Billing integration, net of tax 94 528
Sarbanes Oxley start-up costs, net of tax - 420
Non-cash compensation 607 2,482
Adjusted income applicable to common
stockholders $5,498 $18,806
Weighted average number of shares
outstanding 26,003,117 28,170,501
Adjusted net income per share $0.21 $0.67
Calculations above assume a 44.0 percent effective tax rate.
Consolidated Communications
Key Operating Statistics
December 31, December 31,
2006 2005
Local access lines in service
Residential 155,354 162,231
Business (1) 78,335 79,793
Total local access lines (1) 233,689 242,024
IPTV subscribers
Illinois 6,342 2,146
Texas 612 -
Total IPTV subscribers 6,954 2,146
DSL subscribers 52,732 39,192
Broadband Connections 59,686 41,338
Total connections (1) 293,375 283,362
Long distance lines 148,181 143,882
Dial-up subscribers 11,942 15,971
Service bundles 43,175 36,627
IPTV Homes passed
Illinois 35,843 19,500
Texas 54,129 -
Total homes passed 89,972 19,500
(1) Reflects cumulative line loss associated with MCIMetro's ISP
regrooming of 5,332 at 12/31/05 and 5,380 at 12/31/06.
Source: prnewswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
Related Articles
|
