- Delivered another quarter of strong access line
performance.
- Continued solid operating cash flow and dividend payout
ratio.
- Successfully completed refinancing of our credit
facility.
- Internal restructuring yields $2.5 million in future
annual expense reductions.
Consolidated Communications Holdings, Inc. (Nasdaq:CNSL)reported
results for the second quarter ended June 30, 2011.
Second quarter 2011 financial summary:
- Revenue was $92.6 million.
- Net cash from operations was $30.1 million.
- Adjusted EBITDA was $45.9 million.
- Dividend payout ratio was 55.1%.
- Cash and cash equivalents ended at $82.0 million.
"We delivered a solid quarter of cash from operations and a
comfortable dividend payout ratio," said Bob Currey, President and
Chief Executive Officer. "Operationally, we produced another strong
access line performance and grew broadband subscribers by
1.3%."
"The quarter also included the completion of two important
strategic initiatives. First, we were pleased with the terms of our
refinancing that successfully extended $409.1 million of our term
loan by three years and our undrawn $50 million revolver by nearly
two and half years. Second, we realigned functional
responsibilities to bring customer facing employees into a single
group and identified approximately $2.5 million in annual expense
reductions to be implemented throughout the rest of the year,"
Currey concluded.
Operating Statistics at June 30, 2011, Compared to June
30, 2010.
|
Period Ended June 30, |
|
|
|
2011 |
2010 |
Increase/(decrease) |
% |
|
|
|
|
|
Total connections |
462,704 |
454,075 |
8,629 |
1.9% |
Local access lines |
232,360 |
242,282 |
(9,922) |
(4.1)% |
DSL subscribers |
108,581 |
103,428 |
5,153 |
5.0% |
IPTV subscribers |
31,218 |
26,074 |
5,144 |
19.7% |
ILEC VOIP lines |
8,799 |
8,605 |
194 |
2.3% |
CLEC access line equivalents |
81,746 |
73,686 |
8,060 |
10.9% |
"We were pleased to deliver another solid quarter of financials
despite a $0.7 million access settlement that negatively impacted
both revenue and earnings. In addition, the extension of
maturities on a portion of our debt was a positive outcome
providing us with additional balance sheet flexibility," said Steve
Childers, Chief Financial Officer.
Cash Available to Pay Dividends
For the quarter, cash available to pay dividends, or CAPD, was
$21.1 million, and the dividend payout ratio was 55.1%. At
June 30, 2011, cash and cash equivalents were $82.0 million,
representing an increase of $28.4 million over the prior year. The
Company made capital expenditures of $10.7 million compared to
$10.9 million in the second quarter of 2010.
Financial Highlights for the Second Quarter Ended June
30, 2011
- Revenues were $92.6 million, compared to $95.7 million in the
same period of 2010. Revenue declined by $1.6 million year
over year after excluding $0.8 million from the operator service
business unit that was divested last year and the $0.7 million
access dispute settlement. Declines in local calling services,
network access, long distance and subsidies were partially offset
by increases in data and internet services.
- Depreciation and amortization was $22.0 million, compared to
$21.5 million for the same period in 2010.
- Income from operations was $14.7 million, compared to $17.2
million in the second quarter of 2010. The decrease is mainly
due to the restructuring and refinancing expenses totaling $3.0
million in the quarter.
- Interest expense, net was $12.4 million, compared to $13.0
million in the same quarter last year. The improvement is
primarily the result of a lower weighted average cost of debt as
the result of better rates on interest rate swaps. This was
partially offset by the higher interest rate associated with the
amend and extend transaction which closed on June 8,
2011.
- Other income, net was $6.3 million, compared to $6.6 million
for same period in 2010. Cash distributions from our wireless
partnerships were $5.8 million for the current quarter and $6.5
million in the second quarter of 2010.
- Net income attributable to common stockholders was $5.4
million, compared to $7.0 million in the second quarter of
2010. The decline was primarily due to refinancing and
restructuring costs of $1.9 million, net of tax. "Adjusted net
income applicable to common stockholders" excludes certain items in
the manner described in the table provided in this release. On
that basis, "adjusted net income attributable to common
stockholders" was $7.7 million, compared to $8.0 million in the
same quarter of 2010.
- Diluted net income per common share was $0.18, compared to
$0.24 in the second quarter of 2010. "Adjusted diluted net
income per share" excludes certain items in the manner described in
the table provided in this release. On that basis, "adjusted
diluted net income per share" for the current quarter was $0.26,
compared to $0.27 in the same period the prior year.
- Adjusted EBITDA was $45.9 million, compared to $46.0 million
for the same period in 2010.
- Net cash provided from operating activities was $30.1 million,
compared to $31.3 million for the second quarter in
2010.
- The total net debt to last twelve month adjusted EBITDA
coverage ratio was 4.32 times to one.
Financial Highlights for the Six Months Ended June 30,
2011
- Revenues were $188.1 million, compared to $194.0 million in the
same period of 2010. Revenue declined by $3.5 million year
over year after excluding the $1.7 million from the operator
service business unit that was divested last year and the $0.7
million access dispute settlement. Local calling, long
distance, network access and subsidies were all lower due to the
loss of access lines. These declines were partially offset by
increases in our data and internet revenue.
- Net Income attributable to common stockholders was $12.7
million, compared to $14.0 million in the prior year
period. The decline is primarily due to refinancing and
restructuring costs of $1.9 million, net of tax.
- Diluted net income per common share was $0.42, compared to
$0.47 for the same period in 2010. "Adjusted diluted net
income per common share" as described in the table provided in this
release was $0.52 versus $0.52 for the six months ended June 30,
2010.
- Adjusted EBITDA increased $0.6 million to $93.7 million,
compared to $93.1 million for the same period in 2010.
- Net cash provided from operating activities increased $6.1
million to $61.2 million, compared to $55.1 million for the six
month period in 2010.
Financial Guidance
For 2011, the Company is reiterating its full year guidance for
capital expenditures and cash interest expenses of $38.0 million to
$41.0 million and $45.0 million to $48.0 million,
respectively. In addition to the impacts from the refinancing,
the Company is increasing its estimates on the benefits of bonus
deprecation and, as a result, is lowering its cash tax guidance by
$5.0 million to a new range of $9.0 million to $11.0 million from
previous guidance of $14.0 million to $16.0
million.
Dividend Payments
On August 1, 2011, the Company's board of directors declared its
next quarterly dividend of $0.38738 per common share, which is
payable on November 1, 2011 to stockholders of record at the close
of business on October 15, 2011.
Conference Call Information
The Company will host a conference call today at 11:00 a.m.
Eastern Time / 10:00 a.m. Central Time to discuss second quarter
earnings and developments with respect to the Company. The
call is being webcast and archived on the "Investor Relations"
section of the Company's website at
http://www.consolidated.com. If you do not have internet
access, the conference call dial-in number is 1-877-374-3981 with
pass code 81927799. International parties can access the call
by dialing 1-253-237-1158. A telephonic replay of the
conference call will also be available starting two hours after
completion of the call until August 11, 2011 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.
Use of Non-GAAP Financial Measures
This press release, as well as the conference call, includes
disclosures regarding "EBITDA", "adjusted EBITDA", "cash available
to pay dividends" and the related "dividend payout ratio", "total
net debt to last twelve month adjusted EBITDA coverage ratio",
adjusted diluted net income per share" and "adjusted net income
attributable to common stockholders", 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, net income
or net income per share 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 the 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 is comprised of EBITDA, adjusted for certain
items as permitted or required by the lenders under the credit
facility in place at the end of each quarter in the periods
presented. The tables that follow include an explanation of
how adjusted EBITDA is calculated for each of the periods
presented. EBITDA is defined as net earnings before interest
expense, income taxes, depreciation and amortization on a
historical basis. We believe net cash provided by operating
activities is the GAAP financial measure most directly comparable
to EBITDA.
Cash available to pay dividends represents adjusted EBITDA plus
cash interest income less (1) cash interest expense, (2) capital
expenditures and (3) cash taxes; this calculation differs in
certain respects from the similar calculation used in the credit
agreement.
We present adjusted EBITDA, cash available to pay dividends and
the related dividend payout ratio for several
reasons. Management believes adjusted EBITDA, cash available
to pay dividends and the dividend payout ratio 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, cash available to pay dividends and
the dividend payout ratio 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, 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 and cash available to pay dividends
after giving effect to specified charges. In addition,
adjusted EBITDA, cash available to pay dividends and the dividend
payout ratio 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. We present the related "total net debt to last twelve
month adjusted EBITDA coverage ratio" principally to put other
non-GAAP measures in context and facilitate comparisons by
investors, security analysts and others; this ratio differs in
certain respects from the similar ratio used in our credit
agreement.
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. Because adjusted EBITDA is a component of the
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.
We present the non-GAAP measures adjusted diluted net income per
share and adjusted diluted net income attributable to common
stockholders because our net income and net income per share are
regularly affected by items that occur at irregular intervals or
are non-cash items. We believe that disclosing these measures
assists investors, securities analysts and other interested parties
in evaluating both our company over time and the relative
performance of the companies in our industry.
About Consolidated
Consolidated Communications Holdings, Inc. is an established
rural local exchange company providing voice, data and video
services to residential and business customers in Illinois, Texas
and Pennsylvania. Each of the operating companies has been
operating in its local market for over 100 years. As of June 30,
2011, the Company had 232,360 ILEC access lines, 81,746 Competitive
Local Exchange Carrier (CLEC) access line equivalents, 108,581 DSL
subscribers, 31,218 IPTV subscribers and 8,799 VOIP lines. The
Company offers a wide range of telecommunications services,
including local and long distance service, custom calling features,
private line services, high-speed Internet access, digital TV,
carrier access services and directory publishing.
Safe
Harbor
Any statements contained in this press release other than
statements of historical fact, including statements about
management's beliefs and expectations, are forward-looking
statements and should be evaluated as such. These statements are
made on the basis of management's views and assumptions regarding
future events and business performance. Words such as "estimate,"
"believe," "anticipate," "expect," "intend," "plan," "target,"
"project," "should," "may," "will" and similar expressions are
intended to identify forward-looking statements. Forward-looking
statements (including oral representations) involve risks and
uncertainties that may cause actual results to differ materially
from any future results, performance or achievements expressed or
implied by such statements. These risks and uncertainties include
economic and financial market conditions generally and economic
conditions in Consolidated's service areas; changes in the
valuation of pension plan assets, as well as a number of other
factors related to our business, including various risks to
shareholders of not receiving dividends and risks to Consolidated's
ability to pursue growth opportunities if Consolidated continues to
pay dividends according to the current dividend policy; various
risks to the price and volatility of Consolidated's common stock;
the substantial amount of d-ebt and Consolidated's ability to
refinance it or incur additional debt in the future; Consolidated'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, including changes to subsidies,
rapid development and introduction of new technologies and intense
competition in the telecommunications industry; risks associated
with Consolidated's possible pursuit of acquisitions; 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 Consolidated's network; high costs of regulatory compliance;
the competitive impact of legislation and regulatory changes in the
telecommunications industry; and liability and compliance costs
regarding environmental regulations. These and other risks and
uncertainties are discussed in more detail in Consolidated's
filings with the Securities and Exchange Commission, including our
reports on Form 10-K and Form 10-Q. Many of these risks are
beyond management's ability to control or predict. All
forward-looking statements attributable to Consolidated or persons
acting on behalf of us are expressly qualified in their entirety by
the cautionary statements and risk factors contained in this press
release and Consolidated'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, Consolidated 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 Holdings, Inc. |
Condensed Consolidated
Balance Sheets |
(Dollars in thousands, except
par value) |
|
|
June 30, |
December 31, |
|
2011 |
2010 |
|
(Unaudited) |
|
ASSETS |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 82,007 |
$ 67,654 |
Accounts receivable, net |
37,058 |
42,012 |
Prepaid expenses and other current
assets |
25,372 |
26,584 |
Total current assets |
144,437 |
136,250 |
Property, plant and equipment, net |
344,181 |
356,057 |
Intangibles, net and other assets |
706,463 |
717,239 |
Total assets |
$ 1,195,081 |
$ 1,209,546 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
Current liabilities: |
|
|
Current portion of long-term debt |
$ 4,400 |
$ -- |
Current portion of capital lease
obligation |
170 |
132 |
Accounts payable |
10,799 |
9,972 |
Accrued expenses and other current
liabilities |
57,989 |
65,488 |
Total current liabilities |
73,358 |
75,592 |
|
|
|
Capital lease obligation less current
portion |
4,619 |
3,993 |
Long-term debt |
875,600 |
880,000 |
Other long-term liabilities |
175,026 |
178,086 |
Total liabilities |
1,128,603 |
1,137,671 |
|
|
|
Stockholders' equity: |
|
|
Common stock, $0.01 par value |
299 |
298 |
Paid in capital |
88,741 |
98,126 |
Accumulated other comprehensive loss |
(27,778) |
(31,471) |
Total Consolidated Communications Holdings,
Inc. |
|
|
stockholders' equity |
61,262 |
66,952 |
Noncontrolling interest |
5,216 |
4,922 |
Total stockholders' equity |
66,478 |
71,875 |
Total liabilities and stockholders'
equity |
$1,195,081 |
$ 1,209,546 |
|
|
Consolidated
Communications Holdings, Inc. |
Condensed Consolidated
Statements of Operations |
(Dollars in thousands, except
per share amounts) |
(Unaudited) |
|
|
|
|
|
|
Three Months
Ended |
Six Months
Ended |
|
June
30, |
June
30, |
|
2011 |
2010 |
2011 |
2010 |
|
|
|
|
|
Revenues |
$ 92,623 |
$ 95,737 |
$ 188,064 |
$ 194,039 |
Operating expenses: |
|
|
|
|
Cost of services and products |
34,267 |
35,649 |
69,951 |
71,589 |
Selling, general and administrative
expenses |
21,687 |
21,390 |
42,386 |
44,193 |
Depreciation and amortization |
21,987 |
21,460 |
44,145 |
43,002 |
Income from operations |
14,682 |
17,238 |
31,582 |
35,255 |
Other income (expense): |
|
|
|
|
Interest expense, net |
(12,397) |
(13,047) |
(24,336) |
(25,952) |
Other income, net |
6,307 |
6,620 |
13,451 |
12,986 |
Income before income taxes |
8,592 |
10,811 |
20,697 |
22,289 |
Income tax expense |
3,079 |
3,638 |
7,687 |
8,064 |
Net income |
5,513 |
7,173 |
13,010 |
14,225 |
Less: Net income attributable to
noncontrolling interest |
162 |
124 |
294 |
255 |
|
|
|
|
|
Net income attributable to Consolidated
Communications Holdings, Inc. |
$ 5,351 |
$ 7,049 |
$ 12,716 |
$ 13,970 |
|
|
|
|
|
Diluted net income attributable to
Consolidated Communications Holdings, Inc. per common share |
$ 0.18 |
$ 0.24 |
$ 0.42 |
$ 0.47 |
|
|
Consolidated
Communications Holdings, Inc. |
Condensed Consolidated
Statements of Cash Flows |
(Dollars in thousands) |
(Unaudited) |
|
|
Three Months
Ended |
Six Months
Ended |
|
June
30, |
June
30, |
|
2011 |
2010 |
2011 |
2010 |
|
|
|
|
|
OPERATING ACTIVITIES |
|
|
Net income |
$ 5,513 |
$ 7,173 |
$ 13,010 |
$ 14,225 |
Adjustments to reconcile net income to
cash provided by operating activities: |
|
|
Depreciation and amortization |
21,987 |
21,460 |
44,145 |
43,002 |
Non-cash stock compensation |
579 |
616 |
1,090 |
1,119 |
Loss on disposal of assets |
-- |
884 |
4 |
888 |
Other adjustments, net |
36 |
331 |
660 |
1,440 |
Changes in operating assets and
liabilities, net |
2,009 |
819 |
2,294 |
(5,602) |
Net cash provided by operating
activities |
30,124 |
31,283 |
61,203 |
55,072 |
INVESTING ACTIVITIES |
|
|
Return of capital in excess of
earnings |
56 |
-- |
56 |
-- |
Proceeds from sale of investments |
-- |
35 |
-- |
35 |
Proceeds from sale of assets |
281 |
458 |
396 |
972 |
Capital expenditures |
(10,653) |
(10,885) |
(20,704) |
(21,820) |
Net cash used in investing
activities |
(10,316) |
(10,392) |
(20,252) |
(20,813) |
FINANCING ACTIVITIES |
|
|
Payments made on long-term
obligations |
(37) |
(103) |
(71) |
(344) |
Refinancing fees |
(3,399) |
-- |
(3,399) |
-- |
Dividends on common stock |
(11,598) |
(11,553) |
(23,128) |
(23,099) |
Net cash used in financing
activities |
(15,034) |
(11,656) |
(26,598) |
(23,443) |
Net change in cash and cash equivalents |
4,774 |
9,235 |
14,353 |
10,816 |
Cash and cash equivalents at beginning of
period |
77,233 |
44,339 |
67,654 |
42,758 |
Cash and cash equivalents at end of
period |
$ 82,007 |
$ 53,574 |
$ 82,007 |
$ 53,574 |
|
|
Consolidated
Communications Holdings, Inc. |
Consolidated Revenue by
Category |
(Dollars in thousands) |
(Unaudited) |
|
|
Three Months
Ended |
Six Months
Ended |
|
June
30, |
June
30, |
|
2011 |
2010 |
2011 |
2010 |
|
|
|
|
|
Telephone Operations |
|
|
|
|
Local calling services |
$ 21,981 |
$ 23,210 |
$ 44,049 |
$ 47,020 |
Network access services |
19,292 |
20,883 |
40,680 |
42,085 |
Subsidies |
11,107 |
11,820 |
22,655 |
24,024 |
Long distance services |
4,121 |
4,730 |
8,418 |
9,363 |
Data and Internet services |
20,018 |
18,681 |
39,647 |
36,682 |
Other services |
8,290 |
8,389 |
16,753 |
17,322 |
Total Telephone Operations |
84,809 |
87,713 |
172,202 |
176,496 |
Other Operations |
7,814 |
8,024 |
15,862 |
17,543 |
Total operating revenues |
$ 92,623 |
$ 95,737 |
$ 188,064 |
$ 194,039 |
|
|
Consolidated
Communications Holdings, Inc. |
Schedule of Adjusted
EBITDA Calculation |
(Dollars in thousands) |
(Unaudited) |
|
|
Three Months
Ended |
Six Months
Ended |
|
June
30, |
June
30, |
|
2011 |
2010 |
2011 |
2010 |
EBITDA: |
|
|
|
|
Net cash provided by operating
activities |
$ 30,124 |
$ 31,283 |
$ 61,203 |
$ 55,072 |
Adjustments: |
|
|
|
|
Compensation from restricted share
plan |
(579) |
(616) |
(1,090) |
(1,119) |
Other adjustments, net |
(36) |
(1,215) |
(664) |
(2,327) |
Changes in operating assets and
liabilities |
(2,009) |
(819) |
(2,294) |
5,602 |
Interest expense, net |
12,397 |
13,047 |
24,336 |
25,952 |
Income taxes |
3,079 |
3,638 |
7,687 |
8,064 |
EBITDA (1) |
42,976 |
45,318 |
89,178 |
91,244 |
|
|
|
|
|
Adjustments to EBITDA (2): |
|
|
|
|
Other, net (3) |
(3,558) |
(6,519) |
(9,293) |
(12,791) |
Investment distributions (4) |
5,858 |
6,562 |
12,743 |
13,512 |
Non-cash compensation (5) |
579 |
616 |
1,090 |
1,119 |
Adjusted EBITDA |
$ 45,855 |
$ 45,977 |
$ 93,718 |
$ 93,084 |
|
|
|
|
|
Footnotes for Adjusted
EBITDA: |
|
|
|
|
(1) EBITDA is defined as net
earnings before interest expense, income taxes, depreciation and
amortization on a historical basis. |
(2) These adjustments
reflect those required or permitted by the lenders under the credit
facility in place at the end of each of the quarters included in
the periods presented. |
(3) Other, net includes the
equity earnings from our investments, dividend income, income
attributable to noncontrolling interests in subsidiaries and
certain miscellaneous items. |
(4) For purposes of
calculating adjusted EBITDA, we include all cash dividends and
other cash distributions received from our investments. |
(5) 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 Holdings, Inc. |
Cash Available to Pay
Dividends |
(Dollars in thousands) |
(Unaudited) |
|
|
Three Months Ended June 30,
2011 |
Six Months Ended June 30,
2011 |
Adjusted EBITDA |
$ 45,855 |
$ 93,718 |
|
|
|
- Cash interest expense |
(11,820) |
(23,227) |
- Capital expenditures |
(10,653) |
(20,696) |
- Cash income taxes |
(2,325) |
(4,824) |
|
|
|
Cash available to pay dividends |
$ 21,057 |
$ 44,971 |
|
|
|
Dividends Paid |
$ 11,598 |
$ 23,128 |
Payout Ratio |
55.1% |
51.4% |
|
|
Consolidated
Communications Holdings, Inc. |
Total Net Debt to LTM
Adjusted EBITDA Ratio |
(Dollars in thousands) |
(Unaudited) |
|
Summary of Outstanding Debt |
|
|
Term loan |
$ 880,000 |
|
Capital leases |
4,789 |
|
Total debt as of June 30, 2011 |
$ 884,789 |
|
Less cash on hand |
(82,007) |
|
Total net debt as of June 30, 2011 |
$ 802,782 |
|
|
|
|
Adjusted EBITDA for the last twelve months
ended June 30, 2011 |
$ 185,858 |
|
|
|
|
Total Net Debt to last twelve months |
|
|
Adjusted EBITDA |
4.32 |
x |
|
|
Consolidated
Communications Holdings, Inc. |
Adjusted Net Income and
Per Share Attributable to Common Stockholders |
(in thousands, except per share
amounts) |
(Unaudited) |
|
|
Three Months
Ended |
Six Months
Ended |
|
June 30, |
June 30, |
June 30, |
June 30, |
|
2011 |
2010 |
2011 |
2010 |
Reported net income attributable to common
stockholders |
$ 5,351 |
$ 7,049 |
$ 12,716 |
$ 13,970 |
Loss on disposal of assets, net of tax |
-- |
526 |
-- |
526 |
Severance, net of tax |
308 |
-- |
301 |
-- |
Refinancing charges, net of tax |
1,631 |
-- |
1,598 |
-- |
Non-cash stock compensation, net of tax |
372 |
408 |
686 |
714 |
Adjusted net income attributable to common
stockholders |
$ 7,662 |
$ 7,983 |
$ 15,301 |
$ 15,210 |
|
|
|
|
|
Weighted average number of shares
outstanding |
29,593 |
29,483 |
29,593 |
29,483 |
Adjusted diluted net income per share |
$ 0.26 |
$ 0.27 |
$ 0.52 |
$ 0.52 |
|
Calculations above assume a 35.8
and 33.7 percent effective tax rate for the three months ended June
30, 2011 and 2010, respectively. The assumed effective
tax rates for the six months ended June 30, 2011 and 2010 are 37.1
and 36.2 percent, respectively. |
|
|
Consolidated
Communications Holdings, Inc. |
Key Operating
Statistics |
(Unaudited) |
|
|
|
|
|
June 30, |
March 31, |
June 30, |
|
2011 |
2011 |
2010 |
Local access lines in service |
|
|
|
Residential |
138,538 |
139,707 |
143,283 |
Business |
93,822 |
95,221 |
98,999 |
Total local access lines |
232,360 |
234,928 |
242,282 |
Total IPTV subscribers |
31,218 |
30,380 |
26,074 |
ILEC DSL subscribers (1) |
108,581 |
107,634 |
103,428 |
ILEC Broadband Connections |
139,799 |
138,014 |
129,502 |
ILEC VOIP subscribers |
8,799 |
8,665 |
8,605 |
CLEC Access Line Equivalents (2) |
81,746 |
81,631 |
73,686 |
|
|
|
|
Total connections |
462,704 |
463,238 |
454,075 |
|
|
|
|
Long distance lines (3) |
175,439 |
174,944 |
170,374 |
|
|
|
|
IPTV Homes passed |
209,609 |
207,796 |
197,766 |
IPTV penetration of homes passed |
15% |
15% |
13% |
|
(1) Includes only ILEC
DSL. CLEC DSL is included in CLEC access line
equivalents. |
(2) CLEC access line equivalents
represent a combination of voice services and data
circuits. The calculations represent a conversion of data
circuits to an access line basis. Equivalents are calculated
by converting data circuits (basic rate interface (BRI), primary
rate interface (PRI), DSL, DS-1, DS-3, and Ethernet) and
SONET-based (optical) services (OC-3 and OC-48) to the equivalent
of an access line. |
(3) Excludes CLEC LD
subscribers. |
|
|
CONTACT: Company Contact:
Matt Smith
Treasurer & Director of Finance
217-258-2959
matthew.smith@consolidated.com
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