CTE Achieves EBITDA of $39 Million for the 2002 Second Quarter, Reflecting 15% Growth, Versus 2001 Second Quarter EBITDA of $34 Million, Excluding CTSI's Expansion Markets.Business Editors DALLAS Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. , Pa.--(BUSINESS WIRE)--July 23, 2002 Commonwealth Telephone Enterprises, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CTCO CTCO Chicago Transportation Coordination Office , CTCOB)--
CTE Reports 2002 Second Quarter Diluted Earnings Per Share ("EPS")
of $0.60, and Recurring EPS of $0.60 Excluding a $0.05 Charge
Related to WorldCom Receivables and a $0.05 Positive
Settlement in Connection with 2000 Restructuring Charge
Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. J. Mahoney Mahoney could refer to:
abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) this morning. Mr. Mahoney will discuss CTE's 2002 second quarter results and review 2002 full year guidance. The call is expected to last approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 30 minutes. To access today's conference call, please call 1-800-482-2225. The conference call passcode is 2033904. The simultaneous webcast can be accessed via the Internet Internet 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 at www.ct-enterprises.com or www.nasdaq.com. The conference call will be archived and available for replay for 48 hours following the call. To access the replay, please call 1-888-211-2648, passcode 2033904. The webcast will also be available for replay for 48 hours at www.ct-enterprises.com and www.nasdaq.com. Commonwealth Telephone Enterprises, Inc. ("CTE") (NASDAQ: CTCO, CTCOB) today announced financial results for the 2002 second quarter. CTE reported 2002 second quarter diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of ("EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ") of $0.60, versus a reported diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS of $0.41 in the 2001 second quarter. CTE's 2002 second quarter recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. diluted EPS was $0.60, which reflects the exclusion exclusion /ex·clu·sion/ (eks-kloo´zhun) 1. a shutting out or elimination. 2. surgical isolation of a part, as of a segment of intestine, without removal from the body. of a $2.0 million charge, or $0.05 per share, related to WorldCom The former name of MCI. Based in Jackson, MS, WorldCom, Inc. was a major, international telecommunications carrier. It was founded in 1983 by Bernard Ebbers as Long Distance Discount Service (LDDS), a reseller of AT&T WATS lines to small businesses. receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed , and a $2.1 million, or $0.05 per share, positive settlement in connection with CTE's 2000 restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. . This compares to recurring EPS of $0.30 in the 2001 second quarter, adjusted by $0.11 due to a positive settlement in connection with CTE's 2000 restructuring charge, and certain non-recurring revenues that impacted CTSI's 2001 second quarter results. "I am pleased to report today that our second quarter results reflect the continuation continuation - continuation passing style of our established positive trends," said Michael J. Mahoney, CTE's president and chief executive officer. "Our 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: results were solid across the board. Excluding the 2001 impact of CTSI's expansion markets, on a consolidated basis we achieved revenue growth of 5%, 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 growth of 15% and a 49% EBITDA margin. "These results were driven by the continued excellent performance of both our RLEC RLEC Rural Local Exchange Carrier RLEC Report Log Exception Condition and RLEC `edge-out' operations," continued Mahoney. "The combined operations For the department of the British War Office during World War II, see . In the military, combined operations are operations conducted by forces of two or more allied nations acting together for the accomplishment of a single mission. See also
CTSI California Traffic Safety Institute CTSI Corbett Technology Solutions, Inc. (Chantilly, VA) CTSI Central Terminal Signaling Interface added over 6,000 new access lines in the second quarter, and now serve 454,938 access lines - a growth rate of 6% versus last year's second quarter. "Overall, the first half of 2002 has continued the positive trends we established last year," added Mahoney. "Our RLEC and RLEC `edge-out' operations remain on very solid tracks both operationally and financially. We have continued to grow cash flow and strengthen our balance sheet through reduced debt - our debt to EBITDA ratio is now at 1.2 times. Given our excellent performance in the quarter, I am raising our EPS guidance for the 2002 full year to a range of $2.14 to $2.18. I remain confident in our ability to achieve our operating and financial objectives for the 2002 full year." CTE Consolidated Results CTE's consolidated reported revenues in the 2002 second quarter were $78.3 million, a growth rate of 2% versus the 2001 second quarter, which included revenues in CTSI's expansion markets. Consolidated reported EBITDA was $38.6 million versus $32.1 million in last year's second quarter, an increase in reported EBITDA of 20%. Consolidated reported capital expenditures were $14.0 million, versus $17.1 million in the 2001 second quarter. Excluding the 2001 impact of the CTSI expansion markets (i.e., CTSI's non- non- word element [L.]not . non- pref. Not: noninvasive. "edge-out" markets) which CTSI has exited, CTE's 2002 second quarter consolidated revenue growth was 5%. Excluding the 2001 second quarter EBITDA impact of CTSI's expansion markets, CTE's 2002 second quarter EBITDA growth was 15%, while the consolidated EBITDA margin expanded to 49%, an increase of 400 basis points versus the 45% EBITDA margin in the 2001 second quarter. The above results reflect the impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of $2.0 million of WorldCom receivables, which impacted CTE's consolidated revenues and EBITDA. Excluding the impact of the WorldCom receivables charge, CTE's consolidated revenue growth in the 2002 second quarter would have been 7%, and consolidated EBITDA growth and EBITDA margin would have been 21% and 51%, respectively. The table below sets forth highlights of CTE's 2002 second quarter consolidated results versus the 2001 second quarter, which exclude the results of CTSI's expansion markets as footnoted:
2002 2001 % Change
Second Quarter Second Quarter Inc./(Dec.)
Total Access Lines(a) 454,938 429,061 6%
Revenue(a) $78.3M $74.7M 5%
EBITDA(a) $38.6M $33.6M 15%
EBITDA Margin(a) 49% 45% 9%
CAPEX $14.0M $17.1M (18%)
Total Debt $190.8M $269.8M (29%)
Debt/EBITDA (Last 12 months) 1.2x 2.5x (52%)
Recurring EPS $0.60 $0.30 100%
(a) Excludes impact of exited CTSI expansion markets.
Commonwealth Telephone Company ("CT") Results CT had a total of 335,467 access lines installed at the end of the 2002 second quarter - a growth rate of 4% versus last year. CT's solid growth in switched access lines resulted from a combination of continued residential additional line marketing success, as well as from steady growth in the number of business lines installed in CT's territory. CT's residential additional line penetration The successful unauthorized breach of a security perimeter. See penetration test. was 40% at the end of the quarter, while business line growth was 6% versus the 2001 second quarter. CT's 2002 second quarter revenues grew 3% to $47.5 million, versus revenues of $46.3 million in the 2001 second quarter. CT's 2002 second quarter EBITDA was $30.2 million, a 3% increase over last year, resulting in a 63% EBITDA margin versus 63% in last year's second quarter. Excluding the impact of the WorldCom charge, which was booked against CT's second quarter revenues, CT's revenue growth in the quarter would have been 7%. This solid fundamental "top-line" performance was driven by CT's access line growth, as well as increased access minutes of use and a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. change to the NECA NECA National Electrical Contractors Association NECA National Exchange Carrier Association NECA National Electrical and Communications Association (Australia) NECA National Electricity Code Administrator (Australia) settlement formula that went into effect in the 2001 third quarter. In terms of EBITDA performance, excluding the WorldCom charge, CT's second quarter EBITDA growth would have been 10% versus the 2001 second quarter, and its EBITDA margin would have been 65%. CT's 2002 second quarter CAPEX was $8.0 million versus $10.1 million in the 2001 second quarter. CTSI "Edge-Out" Market Results (Note: The results discussed below reflect only the performance of CTSI's "edge-out" markets.) During the 2002 second quarter, CTSI installed 3,570 net access lines, ending the quarter with 119,471 cumulative net access lines installed, a growth rate of 14% versus the 2001 second quarter. At the end of the 2002 second quarter, 97% of CTSI's access lines were "on-switch," and 53% were "on-net Connected to the Internet, or connected to a LAN or WAN. Contrast with off-net. " (defined as 100% on CTSI's owned network). CTSI's business/residential line split at the end of the 2002 second quarter was 88%/12%. CTSI's 2002 second quarter revenues were $21.3 million, a growth rate of 18% versus revenues of $18.1 million in the 2001 second quarter. Adjusting for the previously mentioned non-recurring revenues, CTSI's 2001 second quarter revenues were $17.5 million. CTSI's EBITDA in the 2002 second quarter was $7.9 million, versus EBITDA of $4.2 million in the 2001 second quarter, reflecting an EBITDA margin of 37%. CTSI's EBITDA growth and margin expansion in the 2002 second quarter were primarily driven by high-margin access revenue growth, and by continued overall cost control, including reduced expenses resulting from a 500 basis point increase in the percentage of "on-net" access lines versus the year ago quarter. CTSI's 2002 second quarter capital expenditures were $5.4 million, versus $5.5 million in the year ago quarter. The $5.4 million of CAPEX in the 2002 second quarter was substantially all success-based in support of line growth. Jack Flash(R) DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary In the 2002 second quarter, CTE's DSL (digital subscriber line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and ) product, Jack Flash(R), installed 632 net new DSL subscribers. Jack Flash(R) had 8,511 installed DSL subscribers at the end of the 2002 second quarter. Jack Flash(R) is marketed in CTE's CT and CTSI "edge-out" geographies. Jack Flash(R) utilizes DSL technology to provide broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). connectivity A generic term for connecting devices to each other in order to transfer data back and forth. It often refers to network connections, which embraces bridges, routers, switches and gateways as well as backbone networks. over standard telephone lines at speeds over 50 times faster than today's traditional 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. modems. 2002 Full Year Guidance The table below sets forth CTE's previously communicated 2002 full year guidance, as well as revised 2002 full year guidance, which Mr. Mahoney will discuss on this morning's conference call and webcast:
Previously Revised
Communicated 2002
2002 Full Year Full Year
Item Guidance Guidance
CT Access Line Growth 3% - 4% Unchanged
Revenue
Growth Rate 4% - 5% Unchanged
EBITDA $125M - $128M Unchanged
EBITDA Margin 63% - 65% Unchanged
CAPEX $30M - $35M Unchanged
CTSI Net Access Lines
("Edge-Out" Installed - FY02 13,500 - 14,500 Unchanged
Markets Only) Net Access Lines
Installed - Per Quarter 2,500 - 3,500 Unchanged
Revenue Growth Rate 12% - 15% 13% - 16%
EBITDA $26M - $28M $26M - $29M
EBITDA Margin 30% - 35% Unchanged
CAPEX $20M - $25M Unchanged
DSL DSL Subscribers 8,500 - 9,000 9,000 - 9,500
EBITDA Breakeven Unchanged
Consolidated
CTE Reported Revenue Growth 3% - 4% Unchanged
Revenue Growth (a) 4.5% - 5.5% Unchanged
Reported EBITDA $150M - $156M $150M - $157M
Effective Tax Rate Approx. 40% Unchanged
Reported Diluted EPS
- 3Q02 $0.47 - $0.48 $0.49 - $0.51
Reported Diluted EPS
- 4Q02 $0.52 - $0.54 $0.54 - $0.56
Diluted EPS - FY02 $2.00 - $2.05(b)$2.14 - $2.18(b)
CAPEX $65M - $70M $60M - $65M
Year-End Total Debt $160M - $170M Unchanged
(a) Excludes the impact of CTSI's expansion markets.
(b) Excludes 1Q02 $0.06 charge in connection with Voluntary
Retirement Program, 2Q02 $0.05 positive settlement related to
4Q00 restructuring charge, and 2Q02 $0.05 charge in connection
with WorldCom receivables.
About CTE Headquartered in Dallas, PA, Commonwealth Telephone Enterprises, Inc., serves a growing base of business and residential customers with the full array of technologically advanced data and voice telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. products and services, including broadband data services and high-speed Internet See broadband. access, delivered over its 100% digitally switched, fiber-rich network. CTE's primary operating segments are: Commonwealth Telephone Company ("CT"), the nation's eighth largest publicly held independent rural local exchange carrier ("RLEC"), which has been operating in various rural Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York markets since 1897; and, CTSI, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("CTSI"), an RLEC "edge-out" local exchange carrier operating outside CT's territory, that formally commenced operations in 1997. CTE's support businesses include epix(R) Internet Services (www.epix.net), one of the northeast's largest rural ISPs with over 44,000 dial-up Internet access See dial-up. subscribers; and, Jack Flash(R), a broadband data service that uses DSL technology to offer high-speed Internet access and digital connectivity solutions. Additionally, CTE operates two other support businesses that provide expertise to its CT and CTSI operations. These businesses are Commonwealth Communications, a provider of telecommunications equipment and facilities management The management of a user's computer installation by an outside organization. All operations including systems, programming and the datacenter can be performed by the facilities management organization on the user's premises. services; and, CLD CLD Called CLD Cloud CLD Cleared CLD Chronic Lung Disease CLD Council for Learning Disabilities CLD Cooled CLD Chronic Liver Disease CLD Clear Direction Flag CLD Certified LabVIEW Developer CLD Causal Loop Diagram , a switch-based long-distance long-dis·tance adj. 1. Covering a long distance: a long-distance runner; operating under long-distance supervision. 2. reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. . A web site featuring current information regarding Commonwealth Telephone Enterprises, Inc. can be found on the Internet at www.ct-enterprises.com. 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. 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 provides a "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. " for forward-looking statements. Certain information included in this press release is forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. . Such forward-looking information involves important risks and uncertainties that could significantly affect expected results in the future and cause them to be different from those expressed in any forward-looking statements made by, or on behalf of, the Company. These risks and uncertainties include, but are not limited to, uncertainties related to the Company's ability to further penetrate its markets and the related costs of that effort, economic conditions, acquisitions and divestitures, government 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. policies, the pricing and availability of equipment, materials and inventories, technological developments and changes in the competitive environment in which the Company operates.
COMMONWEALTH TELEPHONE ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
(Dollars in Thousands)
2ND QUARTER 2002
-------------------------------------------
CT CTSI OTHER TOTAL
-- ---- ----- -----
Sales $ 47,543 $ 21,324 $ 9,433 $ 78,300
Costs & Expenses
(excluding other operating
expenses itemized below) 17,063 13,347 9,029 39,439
Management Fees 300 99 (99) 300
---- --- ---- ----
EBITDA 30,180 7,878 503 38,561
Depreciation & Amortization 11,262 4,630 613 16,505
Restructuring Charges
(Reversals) - (2,057) - (2,057)
Voluntary Employee
Retirement Program - - - -
Operating Income (Loss) 18,918 5,305 (110) 24,113
Interest and Dividend
Income 423 - 68 491
Interest Expense (1,355) - (1,893) (3,248)
Other Income (Expense), net (100) 501 (22) 379
Income (Loss) before Income
Taxes 17,886 5,806 (1,957) 21,735
Provision (Benefit) for
Income Taxes 7,004 2,726 (748) 8,982
Income (Loss) before
Equity in
Unconsolidated Entities 10,882 3,080 (1,209) 12,753
Equity in Unconsolidated
Entities - 1,345 - 1,345
Net Income (Loss) $ 10,882 $ 4,425 $ (1,209) $ 14,098
======== ======== ========= =========
2ND QUARTER 2001
-------------------------------------------
CT CTSI OTHER TOTAL
-- ---- ----- -----
Sales $ 46,252 $ 19,834 $ 10,381 $ 76,467
Costs & Expenses
(excluding other operating
expenses itemized below) 16,610 16,977 10,473 44,060
Management Fees 300 99 (99) 300
---- --- ---- ---
EBITDA 29,342 2,758 7 32,107
Depreciation & Amortization 10,484 4,206 1,330 16,020
Restructuring Charges
(Reversals) - (3,410) - (3,410)
Voluntary Employee
Retirement Program - - - -
Operating Income (Loss) 18,858 1,962 (1,323) 19,497
Interest and Dividend
Income 276 - 89 365
Interest Expense (2,155) - (2,597) (4,752)
Other Income (Expense), net (365) 489 177 301
Income (Loss) before Income
Taxes 16,614 2,451 (3,654) 15,411
Provision (Benefit) for
Income Taxes 7,017 1,303 (1,306) 7,014
Income (Loss) before
Equity in
Unconsolidated Entities 9,597 1,148 (2,348) 8,397
Equity in Unconsolidated
Entities - 1,272 - 1,272
Net Income (Loss) $ 9,597 $ 2,420 $ (2,348) $ 9,669
======== ======== ========= =======
COMMONWEALTH TELEPHONE ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
(Dollars in Thousands)
SIX MONTHS ENDED JUNE 30, 2002
-------------------------------------------
CT CTSI OTHER TOTAL
-- ---- ----- -----
Sales $ 96,159 $ 42,205 $ 18,332 $ 156,696
Costs & Expenses (excluding
other operating
expenses itemized below) 34,176 26,480 17,547 78,203
Corporate Management Fees 600 198 (198) 600
---- ---- ----- ----
EBITDA 61,383 15,527 983 77,893
Depreciation & Amortization 22,284 9,125 2,069 33,478
Restructuring Charges
(Reversals) - (2,057) - (2,057)
Voluntary Employee
Retirement Program - - 2,333 2,333
Operating Income (Loss) 39,099 8,459 (3,419) 44,139
Interest and Dividend
Income 1,230 - 142 1,372
Interest Expense (2,652) - (3,945) (6,597)
Other Income (Expense), net (95) 491 (26) 370
Income (Loss) before Income
Taxes 37,582 8,950 (7,248) 39,284
Provision (Benefit) for
Income Taxes 14,570 3,965 (2,525) 16,010
Income (Loss) before Equity
in Unconsolidated Entities 23,012 4,985 (4,723) 23,274
Equity in Unconsolidated
Entities - 1,573 - 1,573
Net Income (Loss) $ 23,012 $ 6,558 $ (4,723) $ 24,847
======== ======== ========= =========
SIX MONTHS ENDED JUNE 30, 2001
-------------------------------------------
CT CTSI OTHER TOTAL
-- ---- ----- -----
Sales $ 92,930 $ 40,492 $ 19,991 $ 153,413
Costs & Expenses (excluding
other operating
expenses itemized below) 33,850 35,883 19,834 89,567
Corporate Management Fees 600 198 (198) 600
---- ---- ----- ---
EBITDA 58,480 4,411 355 63,246
Depreciation & Amortization 20,801 8,154 2,633 31,588
Restructuring Charges
(Reversals) - (3,410) - (3,410)
Voluntary Employee
Retirement Program - - - -
Operating Income (Loss) 37,679 (333) (2,278) 35,068
Interest and Dividend
Income 1,223 - 342 1,565
Interest Expense (4,061) (1) (6,296) (10,358)
Other Income (Expense), net (396) 513 (45) 72
Income (Loss) before Income
Taxes 34,445 179 (8,277) 26,347
Provision (Benefit) for
Income Taxes 14,545 555 (2,909) 12,191
Income (Loss) before Equity
in Unconsolidated Entities 19,900 (376) (5,368) 14,156
Equity in Unconsolidated
Entities - 1,409 - 1,409
Net Income (Loss) $ 19,900 $ 1,033 $ (5,368) $ 15,565
======== ======== ========= ========
COMMONWEALTH TELEPHONE ENTERPRISES, INC.
CTSI SEGMENT
(UNAUDITED)
(Dollars in Thousands)
2ND QUARTER 2002
--------------------------------
CTSI CTSI TOTAL
Edge-out Expansion CTSI
-------- --------- ----
Sales $ 21,324 $ - $ 21,324
Costs & Expenses (excluding
other operating
expenses itemized below) 13,347 - 13,347
Management Fees 99 - 99
--- -- ---
EBITDA $ 7,878 $ - $ 7,878
======== ========= ========
2ND QUARTER 2001
----------------------------------
CTSI CTSI TOTAL
Edge-out Expansion CTSI
-------- --------- ----
Sales $ 18,094 $ 1,740 $ 19,834
Costs & Expenses (excluding
other operating
expenses itemized below) 13,769 3,208 16,977
Management Fees 99 - 99
--- -- --
EBITDA $ 4,226 $ (1,468) $ 2,758
======== ========= =======
SIX MONTHS ENDED JUNE 30, 2002
----------------------------------
CTSI CTSI TOTAL
Edge-out Expansion CTSI
Sales $ 42,205 $ - $ 42,205
Costs & Expenses (excluding
other operating
expenses itemized below) 26,480 - 26,480
Corporate Management Fees 198 - 198
---- -- ----
EBITDA $ 15,527 $ - $ 15,527
========= ======== =========
SIX MONTHS ENDED JUNE 30, 2001
----------------------------------
CTSI CTSI TOTAL
Edge-out Expansion CTSI
Sales $ 34,929 $ 5,563 $ 40,492
Costs & Expenses (excluding
other operating
expenses itemized below) 27,670 8,213 35,883
Corporate Management Fees 198 - 198
---- -- ---
EBITDA $ 7,061 $ (2,650) $ 4,411
======== ========= =======
COMMONWEALTH TELEPHONE ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
QUARTER ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
----------------------------------------------
2002 2001 2002 2001
Basic Earnings per
Average Common Share:
Net Income (Loss) $0.60 $0.42 $1.06 $0.68
===================== ======================
Weighted Average Common
Shares Outstanding 23,374,395 23,049,794 23,363,307 22,989,850
Diluted Earnings per
Average Common Share:
Net Income (Loss) $0.60 $0.41 $1.05 $0.66
===================== ======================
Weighted Average Common
Shares and Common Stock
Equivalents Outstanding 23,690,464 23,472,540 23,683,912 23,450,962
COMMONWEALTH TELEPHONE ENTERPRISES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in Thousands)
June 30, December 31,
2002 2001
----------------------------------
ASSETS
CURRENT ASSETS:
Cash and Temporary Cash
Investments $ 23,471 $ 27,298
Accounts Receivable from
Related Parties 11 249
Other Current Assets 58,045 61,994
Deferred Income Taxes 21,326 20,115
----------------------------------
Total Current Assets 102,853 109,656
----------------------------------
PROPERTY PLANT AND EQUIPMENT
(NET OF ACCUMULATED
DEPRECIATION OF $405,627
IN 2002 AND $381,888 IN 2001) 418,755 428,916
INVESTMENTS 9,498 9,428
DEFERRED CHARGES AND OTHER
ASSETS 18,120 16,604
----------------------------------
TOTAL ASSETS $ 549,226 $ 564,604
==================================
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes Payable $ 65,000 $ 65,000
Current Maturities of Long
Term Debt 9,010 9,010
Advance Billings and Customer
Deposits 5,144 5,258
Accrued Interest 1,558 1,701
Accrued Income Taxes 948 -
Accrued Restructuring Expenses 4,060 7,381
Accounts Payable to Related
Parties 1,354 1,424
Other Current Liabilities 76,844 92,985
--------------------------------
Total Current Liabilities 163,918 182,759
--------------------------------
COMMONWEALTH TELEPHONE ENTERPRISES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in Thousands)
June 30, December 31,
2002 2001
----------------------------------
LONG TERM DEBT 116,805 151,309
CAPITAL LEASE OBLIGATION 251 317
DEFERRED INCOME TAXES 42,324 33,779
OTHER DEFERRED CREDITS 34,726 30,924
COMMON SHAREHOLDERS' EQUITY:
Common Stock 27,291 27,265
Additional Paid-in Capital 256,308 255,570
Deferred Compensation (4,103) (4,306)
Other Comprehensive Loss (3,007) (2,879)
Retained Earnings 45,692 20,845
Treasury Stock at Cost, 3,821,883
shares at June 30, 2002
and at December 31, 2001 (130,979) (130,979)
----------------------------------
Total Common Shareholders' Equity 191,202 165,516
----------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 549,226 $ 564,604
==================================
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