CTE Raises Earnings Per Share Guidance; CTE Expects to Exceed Current 2001 Quarterly and Full Year Earnings Estimates.Business Editors DALLAS, Pa.--(BUSINESS WIRE)--June 21, 2001 Michael J. Mahoney, president 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 Commonwealth Telephone Enterprises, Inc. ("CTE (Coefficient of Thermal Expansion) The difference between the way two materials expand when heat is applied. This is very critical when chips are mounted to printed circuit boards, because the silicon chip expands at a different rate than the plastic board. ") (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), announced this morning that CTE is raising its second quarter and full year fully 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. ") guidance based primarily on improved 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 performance in its CTSI CTSI Census Tract Street Index (US Census Bureau) CTSI California Traffic Safety Institute CTSI Corbett Technology Solutions, Inc. (Chantilly, VA) CTSI Central Terminal Signaling Interface , Inc. ("CTSI") operation. CTE also raised its third and fourth quarter EPS guidance. Mr. Mahoney made his remarks in a previously scheduled conference call and simultaneous webcast. The conference call will be archived and available for replay for 48 hours beginning later this morning. To access the replay, please call 1-800-625-5288, passcode 1088484. The webcast will also be available for replay for 48 hours at www.ct-enterprises.com. "This morning, I am raising our second quarter EPS guidance to a range of $0.26 - $0.27," Mahoney told the conference call audience. "The primary driver of this increase is substantially improved EBITDA performance at CTSI. In the quarter, CTSI's revenues are anticipated to be slightly better than our previous forecast, while CTSI's costs are expected to be significantly lower. In addition to the excellent EBITDA trend at CTSI, a modest reduction in CT's costs and reduced corporate overhead are contributing to our improved forecast." As of this morning, the First Call consensus EPS estimate for CTE was $0.19. CTE's previously communicated second quarter diluted EPS guidance was $0.18 - $0.19. "Having spent five months focused on the execution of our CTSI "edge-out" strategy, and knowing the operating efficiencies we have and will achieve, we are in a position to revise our prior 2001 internal forecast, and upwardly revise our publicly communicated guidance," stated Mahoney. "Accordingly, we are also raising our third quarter, fourth quarter and full year EPS guidance today. I am very pleased with the operating and financial performance of both CTSI and CT as we approach the end of the second quarter. I expect to discuss our second quarter results in detail and to provide updated guidance for the remainder of the year when we release our second quarter earnings around the first week of August." The table below sets forth CTE's previously communicated quarterly and full year diluted EPS guidance versus the revised guidance provided by Mr. Mahoney during this morning's conference call and webcast:
Previous Diluted EPS Guidance
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1Q01A $0.25
2Q01 $0.18 - $0.19
3Q01 $0.23 - $0.25
4Q01 $0.25 - $0.27
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FY01 $0.91 - $0.96
Revised Diluted EPS Guidance
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1Q01A $0.25
2Q01 $0.26 - $0.27
3Q01 $0.27 - $0.29
4Q01 $0.29 - $0.31
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FY01 $1.07 - $1.12
About CTE Headquartered in Dallas, PA, Commonwealth Telephone Enterprises, Inc., serves a growing base of business and residential customers with the full array of state-of-the-art data and voice telecommunications products and services, including broadband data services and high-speed Internet 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 incumbent local exchange carrier ILEC, short for incumbent local exchange carrier, is a local telephone company in the United States that was in existence at the time of the break up of AT&T into the Regional Bell Operating Companies (RBOCs) also known as the "Baby Bells". ("ILEC (Incumbent Local Exchange Carrier) A traditional local telephone company such as one of the Regional Bell companies (RBOCs). Contrast with CLEC. See ELEC and TELRIC. "), which has been operating in various rural Pennsylvania markets since 1897; and, CTSI, Inc. ("CTSI"), a local exchange carrier operating outside CT's territory that 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 49,000 dial-up Internet access See dial-up. subscribers; and, Jack Flash(R), a broadband data service that uses 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 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 services; and, CLD, a switch-based long-distance reseller. 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 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" for forward-looking statements. Certain information included in this press release is forward-looking. Such forward-looking information involves important risks and uncertainties that could significantly affect results expressed in any forward-looking statements made in this press release. 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 policies, the pricing and availability of equipment, materials and inventories, technological developments and changes in the competitive environment in which the Company operates. |
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