Alaska Communications Systems Reports Second Quarter 2000 Revenue of $81.9 Million Compared to $74.0 Million for 1999.Business/High Tech Editors ANCHORAGE Anchorage (ăng`kərĭj), city (1990 pop. 226,338), Anchorage census div., S central Alaska, a port at the head of Cook Inlet; inc. 1920. , Alaska--(BUSINESS WIRE)--July 27, 2000 Alaska Communications Systems This article is about the current telecommunications company. For the historical "Alaska Communications System", see AT&T Alascom. Alaska Communications Systems, (or ACS) is a telecommunications corporation, headquartered in Anchorage, Alaska. Group, Inc. ("ACS (Asynchronous Communications Server) See network access server. ") (Nasdaq:ALSK) reported today consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: second quarter 2000 revenues of $81.9 million, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of $29.5 million, and a net loss of $2.7 million, or $.08 per share. Operating Revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. increased $7.8 million over the second quarter of 1999, or 10.6%. The net loss of $2.7 million improved from the preceding quarter's net loss by $0.4 million, or 14.1%. EBITDA, or Earnings Before Interest, Taxes, Depreciation and Amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Chuck chuck a hand grip to be attached to intramedullary pins to enable the surgeon to rotate or drive them into bone. Robinson, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of ACS said, "The ACS team has had a very productive quarter. In May we announced the agreement by which ACS would acquire Matanuska Matanuska may refer to:
Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the Alaska Alaska (əlă`skə), largest in area of the United States but third smallest (exceeding only Vermont and Wyoming) in population, occupying the northwest extremity of the North American continent, separated from the coterminous United States , Inc. with over 25,000 Internet customers. The results we are releasing today for the second quarter 2000 again demonstrate that we are on target with our plan. The acquisition of Internet Alaska announced in June has provided a framework around which to restructure our Internet, Customer Premise PREMISE Productivity in Embedded Software Engineering of Electronics Based Equipment Equipment and Long Distance businesses. We expect that this action will have a positive impact both on our cost structure and our ability to serve customers better with a broader range of services. We have also set the stage for continuing cost reductions that will impact the next several quarters." Robinson added, "Through consolidation and selective capital investment, we expect continued improvement in operating efficiencies, particularly as planned information technology and back office transitions are concluded. Additional efficiencies will be gained through measured reduction in workforce positions, primarily through attrition Attrition The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry. Notes: and the elimination of unfilled job openings. These actions should achieve annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. savings in excess of $10 million by the end of 2000." Second Quarter 2000 Highlights: The second quarter 2000 consolidated results include the operations acquired by ACS on May 14, 1999. The second quarter 1999 results represent the combined results of the acquired companies prior to their acquisition by ACS plus the consolidated results of ACS from May 15, 1999 through June 30, 1999. -- Revenues increased to $81.9 million from $74.0 million in the prior year, or $7.8 million and 10.6%. Local telephone, cellular, and interexchange network, data services and other revenues all increased compared to the second quarter 1999 combined operating results. -- Local telephone revenues grew 8.4%, from $61.8 million in the second quarter of 1999 to $67.0 million in the second quarter of 2000. Access lines grew 4.0% to 331,589 in the second quarter of 2000 over the corresponding quarter in 1999. -- Cellular revenues grew to $10.1 million or 18.3% over the same quarter in 1999. Customer growth was 5.8% over the same period from 69,581 to 73,594. The average monthly cellular revenue per unit ("ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. ") increased from $41.52 to $46.07 over the same period as a result of the introduction of new statewide and national pricing programs and the initial benefits of the digital upgrade completed in the first quarter of 2000. Additionally, new reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. contracts at the beginning of 2000 eliminated approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 700 non-revenue producing phones and increased ARPU from reseller phones by 19%. -- Interexchange network, data services and other revenues, which includes primarily long distance, data and Internet services revenues, increased from $3.7 million in 1999 to $4.8 million in 2000 -- an increase of $1.1 million, or 30.1%. -- Long distance revenues rose from $2.6 million in 1999 to $3.0 million in 2000, or 15.4% as total customers grew to 35,605. Long distance minutes of use increased from 17.3 million minutes to 19.0 million, or 9.8%, from 1999 to 2000. -- Internet revenues grew from $1.3 million in the second quarter of 1999 to $1.5 million in the second quarter of 2000. -- Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased $2.5 million, or 3.7%, from $67.4 million for the second quarter of 1999 to $69.9 million for the second quarter of 2000. As a percentage of revenues, operating expenses for the second quarter dropped to 85.4% as compared to 91.1% for the second quarter 1999 combined operating results. -- Local telephone expenses decreased from $41.0 million for the second quarter 1999 to $38.4 million for the second quarter 2000 -- a decrease of $2.6 million, or 6.2%. - Cellular expenses increased $0.1 million, or 1.4%, for the second quarter 2000 compared to the second quarter 1999. As a percent of revenue, cellular operating expenses declined from 72.8% in the second quarter of 1999 to 62.4% in 2000. Management expects that cellular expenses as a percentage of cellular revenue will continue to decline as cellular penetration The successful unauthorized breach of a security perimeter. See penetration test. and subscribers increase over time. -- Interexchange network, data services and other expenses increased by $1.9 million, or 32.9%. The increase in interexchange network, data services and other was the result of additional circuit and other costs associated with developing the Company's statewide network and Internet infrastructure and increases in minutes of use for long distance as discussed above. -- EBITDA was $29.5 million compared to the combined second quarter 1999 EBITDA of $21.1 million - an increase of $8.4 million or 39.9%. EBITDA margin increased from 28.5% in the second quarter of 1999 to 36.1% in the second quarter of 2000. Acquisition Activities: -- On May 25, 2000, ACS announced the signing of a Definitive Agreement to acquire Matanuska Telephone Association, Inc. ("MTA (1) (Message Transfer Agent or Mail Transfer Agent) The store and forward part of a messaging system. See messaging system. (2) See M Technology Association. 1. (messaging) MTA - Message Transfer Agent. ") for $187.5 million in cash. MTA is a local exchange carrier with approximately 57,000 access lines and 12,500 cellular customers. The acquisition of MTA is expected to close in the first quarter of 2001, subject to an affirmative AFFIRMATIVE. Averring a fact to be true; that which is opposed to negative. (q.v.) 2. It is a general rule of evidence that the affirmative of the issue must be proved. Bull. N. P. 298 ; Peake, Ev. 2. 3. vote of its membership and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approval. -- On June 14, 2000, ACS announced the acquisition of Internet Alaska, Inc. Internet Alaska is a dial-up Refers to using the regular "dial-up" telephone network to send data from a computer to a remote network or to a remote device. The computer's digital data are converted to analog signals in the same frequency range as human voice by a modem. internet service provider ("ISP (1) See in-system programmable. (2) (Internet Service Provider) An organization that provides access to the Internet. Connection to the user is provided via dial-up, ISDN, cable, DSL and T1/T3 lines. ") with over 25,000 customers. The acquisition of Internet Alaska makes ACS the second largest ISP in the State of Alaska, with approximately 42,000 dial-up and dedicated customers. "Based on our progress to date," Robinson continued, " ACS plans to restructure and improve its network enterprise services. This initiative will involve the consolidation of ACS' existing Internet operations, Internet Alaska, and ACS Long Distance into Digitech Solutions, a unit of Internet Alaska. This restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). will provide our customers with access to our expanding line of high speed data services, data networking, Internet access See how to access the Internet. , web hosting Making a Web site available on the Internet. Many ISPs host a few personal Web pages for an individual at no additional cost above the monthly service fee, but the address is subordinate to the ISP; for example, www.friendlyisp.com/pat_smith. , web design and server hosting services as well as ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. voice services. Our goal is to be a full service business partner in providing strategic business solutions to our customers, in a way that drives down the costs of providing those services." ACS is the leading diversified diversified (di·verˑ·s , facilities based telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. carrier in Alaska, offering local telephone service, wireless, long distance, data, and Internet services to business and residential customers throughout Alaska. ACS currently serves approximately 330,000 access lines and 74,000 cellular customers throughout the State. Members of the ACS senior management team have played significant roles in bringing advanced technology to Alaska for more than four decades. ACS is traded on Nasdaq under the symbol "ALSK." Statements contained in this press release that are not historical fact are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " that involve a number of known and unknown risks or uncertainties. Additional factors, which may affect actual results, are contained in the Company's filings with the SEC. Forward-looking statements in this release are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions contained in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995.
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Six Months Ended June 30, 2000 and 1999
(Unaudited, in Thousands, Except per Share Amounts)
Three Six Three and Six
Months Ended Months Ended Months Ended
June 30, 2000 June 30, 2000 June 30, 1999
------------ ------------ -------------
Operating
Revenues
Local Telephone $ 67,009 $ 131,469 $ 31,801
Cellular 10,079 18,710 4,567
Interexchange
network, data
services and
other 4,773 8,768 1,914
------------ ------------- -------------
Total Operating
Revenues 81,861 158,947 38,282
Operating
Expenses
Local telephone 38,450 75,917 21,984
Cellular 6,289 11,771 2,992
Interexchange
network, data
services and
other 7,610 13,392 2,839
Depreciation and
amortization 17,565 34,691 8,093
------------ ------------ -------------
Total operating
expenses 69,914 135,771 35,908
Operating income 11,947 23,176 2,374
Other income
(expense):
Interest
expense (15,933) (31,835) (7,852)
Interest income
and other 1,282 2,844 (357)
Equity in
earnings of
minority
investments (11) (153) 89
------------ ------------ -------------
Total other
income (expense) (14,662) (29,144) (8,120)
Loss before
income taxes (2,715) (5,968) (5,746)
Income tax
benefit 19 134 --
------------ ------------ -------------
Net loss (2,696) (5,834) (5,746)
============ ============ =============
Net loss per
share -- basic
and diluted $ (0.08) $ (0.18) $ (0.29)
Weighted average
shares
outstanding 32,793 32,745 20,083
EBITDA $ 29,512 $ 57,867 $ 10,467
Note -- Consolidated results of operations for the three and six
months ended June 30, 1999 are the same because the Company had no
operations prior to its acquisition of substantially all of its
operations on May 14, 1999.
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
SUPPLEMENTARY INFORMATION
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
For the Three and Six Months Ended June 30, 2000 and 1999
(Unaudited, in Thousands except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2000 1999 2000 1999
Consolidated Combined Consolidated Combined
------------ -------- ------------ --------
Operating
revenues:
Local
telephone 67,009 61,836 131,469 121,624
Cellular 10,079 8,519 18,710 15,772
Interexchange
network, data
services and
other 4,773 3,669 8,768 7,650
---------- -------- ---------- --------
Total operating
revenues 81,861 74,024 158,947 145,046
Operating
expenses:
Local telephone 38,450 41,008 75,917 75,918
Cellular 6,289 6,203 11,771 11,246
Interexchange
network, data
services and
other 7,610 5,724 13,392 10,168
Depreciation and
amortization 17,565 14,473 34,691 31,274
---------- -------- ---------- --------
Total operating
expenses 69,914 67,408 135,771 128,606
Operating income 11,947 6,616 23,176 16,440
Other income
(expense):
Interest
expense (15,933) (9,417) (31,835) (12,378)
Interest income
and other 1,282 932 2,844 2,116
Equity in
earnings of
minority
investments (11) (773) (153) (1,282)
---------- -------- ---------- --------
Total other
income (expense) (14,662) (9,258) (29,144) (11,544)
Loss before
income taxes (2,715) (2,642) (5,968) 4,896
Income taxes
(benefit) (19) 1,235 (134) 3,944
---------- -------- ---------- --------
Net loss $ (2,696) $ (3,877) $ (5,834) $ 952
========== ======== ========== ========
Net loss per
share -- basic
and diluted $ (0.08) $ (0.18)
Weighted average
shares
outstanding 32,793 32,745
EBITDA $ 29,512 $ 21,089 $ 57,867 $ 47,714
Note -- The Combined Statement of Operations includes the
operating activity of the entities acquired on May 14, 1999 combined
with the consolidated operating results of ACS and Subsisidiaries from
May 15, 1999 through June 30, 1999.
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(Unaudited, in Thousands)
June 30, Dec 31,
2000 1999
---- ----
Cash and cash
equivalents $ 79,992 $ 101,994
Property, plant and
equipment, net 452,097 449,827
Total assets 929,311 934,443
Long-term debt and
capital lease obligations 616,716 612,756
Stockholders' equity 244,024 247,968
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
KEY OPERATING STATISTICS
(Unaudited)
Quarter Ended
------------------------------
June 30, June 30,
2000 1999
---- ----
Local telephone:
Total access lines 331,589 318,227
Cellular:
Ending subscribers 73,594 69,581
Penetration 16.0% 15.1%
Minutes of Use 31,278,334 25,501,634
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