CTE Reports 2004 First Quarter Results; CTE Reports First Quarter Diluted Earnings Per Share of $0.65.Business Editors/High-Tech Writers 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)--May 6, 2004 -- 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. Achieves 2% 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: Switched Access Line Growth; 1% Consolidated Revenue Growth; 3% Consolidated Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. Growth; and, Record 36% 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 Subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. Growth 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 review CTE's 2004 first quarter results, and update 2004 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 1-800-374-0705. The conference call passcode is 6802395. 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. The conference call will be archived and available for replay for 48 hours following the call. To access the replay, please call 1-800-642-1687, passcode 6802395. The webcast will also be available for replay for 48 hours at www.ct-enterprises.com. Commonwealth Telephone Enterprises, Inc. ("CTE") (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 ), today announced financial results for the 2004 first quarter. Note: As communicated in CTE's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for fiscal year 2003, CTE has changed its segment reporting segment reporting A type of financial reporting in which the firm discloses information by identifiable industry segments. For example, Union Pacific Corporation reports revenues, income, assets, depreciation, and capital expenditures for each of four . The Commonwealth Telephone Company ("CT") segment now includes the results of Commonwealth Long Distance Company ("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 reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. of long-distance long-dis·tance adj. 1. Covering a long distance: a long-distance runner; operating under long-distance supervision. 2. services, and the portion of Jack Flash(R) ("Jack Flash"), the 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 ("DSL") product offering in CT's franchise area. "Other" includes Commonwealth Communications ("CC"), a provider of telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. 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; epix(R) Internet Services ("epix"), which provides 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 services; and our corporate entity. The 2003 Form 10-K includes three years of historical annual segment data revised to reflect this change. The accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. tables to this Earnings Release include 2003 quarterly segment data reflecting this change for comparison purposes. In addition, a condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated Statement of Cash Flows for the three months ended March 31, 2004, and March 31, 2003, is included in the accompanying tables and will be included on an ongoing basis. CTE Consolidated Results For the 2004 first quarter, CTE reported 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 $0.65, versus 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 $1.20 in the 2003 first quarter. CTE's 2003 first quarter reported results included an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain of $13.2 million, or $0.56 per diluted share, in connection with the previously announced adoption of new accounting rules on asset retirement obligations Asset Retirement Obligations provide for future disposal of assets as required by SFAS 143 [1]. Firms must recognize the ARO liability in the period it was acquired, generally acquisition. under SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 143 (Statement of Financial Accounting Standards No. 143), which became effective on January January: see month. 1, 2003. Excluding this gain, CTE's 2003 first quarter net income was $15.0 million, reflecting diluted EPS of $0.64. CTE ended the 2004 first quarter with a total of 477,980 switched access lines installed, reflecting an increase of 9,395 switched access lines installed in the past 12 months, or a growth rate of 2%. CTE's consolidated revenues in the 2004 first quarter were $84.4 million, a growth rate of 1% versus the 2003 first quarter. The 2003 first quarter revenues, which were $83.2 million, included approximately $2.0 million of access revenues that are not reflected in the 2004 first quarter due to the percent local usage ("PLU PLU Pacific Lutheran University PLU People Like Us (LGBT community) PLU Price Look-Up PLU Primary Logical Unit PLU Product Look-Up PLU Phi Lambda Upsilon (National Chemistry Honor Society) ") issue relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Verizon Communications
Verizon Communications, Inc. Inc., that was discussed in CTE's 2003 third quarter Form 10-Q Form 10-Q See 10-Q. . CTE's consolidated operating income in the 2004 first quarter was $26.4 million, versus $25.7 million in last year's first quarter. The 2003 first quarter reflected roughly $2.0 million of operating income that is not reflected in the 2004 first quarter due to the PLU issue mentioned above. For the 2004 first quarter, CTE reported net income of $14.6 million, versus reported net income of $28.2 million in the 2003 first quarter, which included $13.2 million, or $0.56 per diluted share, in connection with the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. adoption of SFAS 143. Consolidated capital expenditures ("CAPEX") were $9.3 million in the 2004 first quarter, versus CAPEX of $7.4 million in the year ago quarter. The increased CAPEX versus last year's first quarter is primarily attributed to additional network modernization modernization Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, and efficiency improvement activity at CT, and additional growth and network modernization activity at 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 . The table below sets forth highlights of CTE's 2004 first quarter consolidated results, versus the 2003 first quarter:
2004 2003 % Change
First Quarter First Quarter Inc./(Dec.)
------------- ------------- -----------
Total Access Lines 477,980 468,585 2%
Revenues $84.4M $83.2M 1%
Operating Income $26.4M $25.7M 3%
Depreciation and Amortization $17.6M $17.6M -
CAPEX $ 9.3M $ 7.4M 26%
Reported EPS $0.65 $1.20* (46%)
* Includes an after-tax gain of $13.2 million, or $0.56 per diluted
share, which was recorded in the 2003 first quarter in connection
with the previously announced adoption of new accounting rules on
asset retirement obligations under SFAS 143 (Statement of Financial
Accounting Standards No. 143), effective January 1, 2003. Excluding
this gain, 2003 first quarter diluted EPS would have been $0.64.
"We are off to a solid start in 2004," said Michael J. Mahoney, CTE's president and chief executive officer. "Our consolidated access line growth was 2%, and we achieved reported consolidated revenue growth of 1%, despite absorbing ab·sorb tr.v. ab·sorbed, ab·sorb·ing, ab·sorbs 1. To take (something) in through or as through pores or interstices. 2. To occupy the full attention, interest, or time of; engross. the loss of $2.0 million of revenues related to the PLU issue and mandated access rate reductions at CTSI. We grew our operating income by 3% versus last year's first quarter, primarily on the strength of high-margin access revenue growth at Commonwealth Telephone Company, as well as diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d cost control across all of our operations." Initial $100 Million of Authorized Stock Authorized Stock The maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation. This figure is usually listed in the capital accounts section of the balance sheet. Repurchases Substantially Completed CTE announced on April 12, 2004, that it had substantially completed the initial $100 million of authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: common stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. in connection with its previously announced $150 million total Board authorized common stock repurchase program. Since the stock repurchase program began last November November: see month. , CTE has repurchased 2,589,010 common shares in open market and block transactions at an average all-in cost All-In Cost Shorthand for "all-included" costs, which are expressed as the interest paid or received for total costs of a financial transaction. Notes: All-in costs include the spread, commission, interest payments, and any other fees resulting from the transaction. of approximately $38.30 per share, or just over $99 million. Nearly all of these share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. were settled on or before March 31, 2004. Repurchased shares have been placed in Treasury and may be used for the Company's employee benefit plans or for other general corporate purposes. No time limit has been set for the completion of the remaining $50 million of authorized common stock repurchases. The remaining authorized repurchases will be executed at CTE's discretion, based on ongoing assessments of the Company's capital needs and the market value of CTE's common stock. Commonwealth Telephone Company ("CT") Results CT had a total of 337,577 switched access lines installed at the end of the 2004 first quarter - down slightly from the 338,003 switched access lines installed at the end of last year's first quarter. CT's residential additional line penetration was 38% at the end of the quarter. CT's business line growth in the 2004 first quarter was 3% versus the 2003 first quarter. CT's 2004 first quarter revenues grew 5% to $57.5 million, versus revenues of $54.7 million in the 2003 first quarter. CT's first quarter revenue growth was primarily driven by increased access revenues - which resulted from both an increase in 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 in 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) (National Exchange Carrier Association) average schedule settlement formula that took effect in July July: see month. 2003. CT's revenue growth in the first quarter was also driven by increased toll revenues, strong DSL revenue growth, and a 6% increase in enhanced services Enhanced service is service offered over commercial carrier transmission facilities used in interstate communications, that employs computer processing applications that act on the format, content, code, protocol, or similar aspects of the subscriber's transmitted information; revenues. CT's 2004 first quarter operating income was $26.4 million, a 12% increase over last year. This solid growth in operating income was primarily driven by growth in high-margin access revenues, and continued focus on cost control. CT's 2004 first quarter CAPEX were $5.1 million, versus $3.7 million in the 2003 first quarter. The increased CAPEX in the first quarter versus last year resulted primarily from increased network modernization and efficiency improvement activity versus last year's first quarter. CTSI, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("CTSI") During the 2004 first quarter, CTSI installed 1,736 net access lines, ending the quarter with 140,403 net access lines installed - a growth rate of 8% versus the 2003 first quarter. At the end of the 2004 first quarter, 98% 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 2004 first quarter was 91%/9%. CTSI's 2004 first quarter revenues were $20.6 million, versus revenues of $21.5 million in the 2003 first quarter. CTSI's 2003 first quarter revenues included approximately $2.0 million of access revenues, which are not included in the 2004 first quarter revenues due to the PLU issue. CTSI's 2004 first quarter revenues also reflect FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. (Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. ) mandated access rate reductions that went into effect in June June: see month. 2003. CTSI's operating income in the 2004 first quarter was $1.7 million, versus operating income of $3.2 million in the 2003 first quarter. The year-over-prior-year-same-quarter decrease in operating income results primarily from the effect of the PLU issue, as well as other access revenue reductions resulting from the FCC mandated changes to access rates mentioned above. CTSI's 2004 first quarter capital expenditures were $4.0 million, versus $3.1 million in the year ago quarter. The increased CAPEX in the first quarter versus last year was primarily due to growth and increased network modernization activity. Jack Flash(R) DSL In the 2004 first quarter, CTE's DSL (digital subscriber line) product, Jack Flash(R), installed a record 1,299 net new DSL subscribers, a growth rate of 36% versus last year's first quarter. Jack Flash(R) had a total of 14,289 installed DSL subscribers at the end of the 2004 first quarter. Jack Flash(R) is marketed in CTE's CT and CTSI 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 modems. 2004 Guidance Outlined The table below sets forth CTE's consolidated 2004 full year guidance, which Mr. Mahoney will discuss on this morning's conference call and webcast:
Previously Communicated Updated
2004 Full Year 2004 Full Year
Item Guidance Guidance*
---- -------- ---------
Consolidated CTE Access Line
Growth 2% - 3% Unchanged
Revenue Growth 0% - (1%) Unchanged
Operating
Income $93M - $94M $97M - $98M
Depreciation
and
Amortization $73M - $74M $71M - $72M
Effective Tax
Rate 38% Unchanged
Diluted EPS -
2Q04 n/a $0.64 - $0.65
Diluted EPS -
FY04 $2.36 - $2.39 $2.55 - $2.57
CAPEX $50M - $52M $48M - $50M
* Does not reflect the remaining authorized $50 million of stock
repurchases.
"I am pleased to be in a position to raise our earnings guidance for the full year," said Mahoney. "Our solid first quarter financial performance, coupled with the accretive effect of our stock repurchases, has led us to increase our 2004 reported diluted EPS guidance to a range of $2.55 to $2.57 per share, from our prior reported diluted EPS guidance of $2.36 to $2.39." 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 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 seventh largest publicly held independent local exchange carrier, 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 ("CTSI"), a local exchange carrier operating in competitive markets outside CT's territory, that formally commenced operations in 1997. Jack Flash(R), a broadband data service that uses DSL technology to offer high-speed Internet access and digital connectivity solutions, is offered throughout CTE's service territories. CTE's support businesses include epix(R) Internet Services (www.epix.net), one of the Northeast's largest rural Internet Service Providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. ("ISPs"), and Commonwealth Communications, a provider of telecommunications equipment and facilities management services. 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, reductions in rates or traffic that is subject to access charges, changes in the competitive environment in which the Company operates and receipt of necessary approvals.
COMMONWEALTH TELEPHONE ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(Dollars in Thousands)
(GAAP)
THREE MONTHS ENDED MARCH 31, 2004
---------------------------------
CT CTSI OTHER TOTAL
-- ---- ----- -----
Sales $57,516 $20,552 $6,312 $84,380
Costs & Expenses (excluding other
operating expenses) 19,464 13,804 7,119 40,387
Depreciation & Amortization 11,693 5,089 825 17,607
------- ------- ------ -------
Operating Income (Loss) 26,359 1,659 (1,632) 26,386
Interest and Dividend Income 1,076
Interest Expense (4,487)
Other Income, net 17
Equity in Income of Unconsolidated
Entities 235
-------
Income before Income Taxes and
Cumulative Effect of Accounting
Change 23,227
Provision for Income Taxes 8,662
-------
Income before Cumulative Effect of
Accounting Change 14,565
Cumulative Effect of Accounting
Change, Net of Tax -
-------
Net Income $14,565
=======
THREE MONTHS ENDED MARCH 31, 2003
---------------------------------
CT CTSI OTHER TOTAL
-- ---- ----- -----
Sales $54,721 $21,495 $6,942 $83,158
Costs & Expenses (excluding other
operating expenses) 19,556 13,284 6,987 39,827
Depreciation & Amortization 11,688 5,060 879 17,627
------- ------- ------ -------
Operating Income (Loss) 23,477 3,151 (924) 25,704
Interest and Dividend Income 706
Interest Expense (2,388)
Other Income, net 35
Equity in Income of Unconsolidated
Entities 231
-------
Income before Income Taxes and
Cumulative Effect of Accounting
Change 24,288
Provision for Income Taxes 9,334
-------
Income before Cumulative Effect of
Accounting Change 14,954
Cumulative Effect of Accounting
Change, Net of Tax 13,230
-------
Net Income $28,184
=======
COMMONWEALTH TELEPHONE ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(GAAP)
THREE MONTHS ENDED
MARCH 31,
-----------------------
2004 2003
----------- -----------
Basic Earnings per
Average Common Share:
Income before Cumulative Effect of Accounting
Change $0.66 $0.64
Cumulative Effect of Accounting Change, Net of
Tax $0.00 $0.56
-----------------------
Net Income $0.66 $1.20
=======================
Weighted Average Common Shares Outstanding 22,142,626 23,436,706
Diluted Earnings per
Average Common Share:
Income before Cumulative Effect of Accounting
Change $0.65 $0.64
Cumulative Effect of Accounting Change, Net of
Tax $0.00 $0.56
-----------------------
Net Income $0.65 $1.20
=======================
Weighted Average Common Shares and Common Stock
Equivalents Outstanding 22,304,350 23,577,898
COMMONWEALTH TELEPHONE ENTERPRISES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in Thousands)
MARCH 31, DECEMBER 31,
2004 2003
-----------------------
ASSETS
CURRENT ASSETS:
Cash and Temporary Cash Investments $303,499 $336,035
Accounts Receivable and Unbilled Revenues, net
of Allowance for Doubtful Accounts of $2,432
in 2004 and $2,329 in 2003 45,694 50,240
Other Current Assets 15,145 9,387
Deferred Income Taxes 15,755 17,016
-----------------------
Total Current Assets 380,093 412,678
-----------------------
PROPERTY PLANT AND EQUIPMENT (NET OF
ACCUMULATED DEPRECIATION OF $467,158 IN 2004
AND $452,989 IN 2003) 402,040 410,485
INVESTMENTS 9,746 10,204
DEFERRED CHARGES AND OTHER ASSETS 17,704 18,286
-----------------------
TOTAL ASSETS $809,583 $851,653
=======================
COMMONWEALTH TELEPHONE ENTERPRISES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in Thousands)
MARCH 31, DECEMBER 31,
2004 2003
------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes Payable $65,000 $65,000
Capital Lease Obligation 745 777
Current Maturities of Long Term Debt 5,623 5,623
Accounts Payable 26,726 29,135
Advance Billings and Customer Deposits 5,423 5,212
Accrued Expenses 49,650 54,331
Accrued Restructuring Expenses 715 812
------------------------
Total Current Liabilities 153,882 160,890
------------------------
LONG TERM DEBT 322,493 323,898
CAPITAL LEASE OBLIGATION 901 1,082
DEFERRED INCOME TAXES 81,645 79,876
OTHER LONG TERM LIABILITIES 23,210 23,178
COMMON SHAREHOLDERS' EQUITY:
Common Stock 24,093 24,014
Additional Paid-in Capital 275,299 267,076
Deferred Compensation (12,208) (6,451)
Other Comprehensive Loss (2,257) (2,490)
Retained Earnings 39,465 24,900
Treasury Stock at Cost, 2,540,590 shares at
March 31, 2004 and 1,207,016 at December 31,
2003 (96,940) (44,320)
------------------------
Total Common Shareholders' Equity 227,452 262,729
------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $809,583 $851,653
========================
COMMONWEALTH TELEPHONE ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Dollars in Thousands)
(GAAP)
THREE MONTHS ENDED
MARCH 31,
------------------
2004 2003
---- ----
NET CASH PROVIDED BY OPERATING ACTIVITIES $28,246 $25,561
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Property, Plant & Equipment (9,323) (7,381)
Other 1,027 753
------- -------
Net Cash Used in Investing Activities (8,296) (6,628)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Redemption of Long-Term Debt (1,406) (2,252)
Proceeds from Exercise of Stock Options 1,949 1,471
Capital Lease Payments (213) (33)
Stock Repurchases (52,816) -
------- -------
Net Cash Used in Financing Activities (52,486) (814)
------- -------
Net (Decrease)/Increase in Cash and Temporary Cash
Investments (32,536) 18,119
------- -------
Cash and Temporary Cash Investments at Beginning
of Period 336,035 34,935
------- -------
Cash and Temporary Cash Investments at End of
Period $303,499 $53,054
======= =======
COMMONWEALTH TELEPHONE ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(Dollars in Thousands)
(GAAP)
THREE MONTHS ENDED JUNE 30, 2003
--------------------------------
CT CTSI OTHER TOTAL
-- ---- ----- -----
Sales $54,206 $21,474 $7,321 $83,001
Costs & Expenses (excluding other
operating expenses itemized below) 19,293 13,827 7,205 40,325
Depreciation & Amortization 11,523 5,109 877 17,509
Restructuring Reversals - - - -
------- ------- ------ -------
Operating Income (Loss) 23,390 2,538 (761) 25,167
Interest and Dividend Income 474
Interest Expense (2,208)
Other Income (Expense), net (1,193)
Equity in Income of Unconsolidated
Entities 1,423
-------
Income before Income Taxes and
Cumulative Effect of Accounting
Change 23,663
Provision for Income Taxes 8,449
-------
Net Income $15,214
=======
THREE MONTHS ENDED SEPTEMBER 30, 2003
-------------------------------------
CT CTSI OTHER TOTAL
-- ---- ----- -----
Sales $57,565 $21,702 $5,694 $84,961
Costs & Expenses (excluding other
operating expenses itemized
below) 20,058 14,444 6,016 40,518
Depreciation & Amortization 11,786 5,225 869 17,880
Restructuring Reversals - - - -
------- ------- ------ -------
Operating Income (Loss) 25,721 2,033 (1,191) 26,563
Interest and Dividend Income 1,006
Interest Expense (4,429)
Other Income (Expense), net 45
Equity in Income of
Unconsolidated Entities 201
-------
Income before Income Taxes and
Cumulative Effect of Accounting
Change 23,386
Provision for Income Taxes 8,723
-------
Net Income $14,663
=======
THREE MONTHS ENDED DECEMBER 31, 2003
------------------------------------
CT CTSI OTHER TOTAL
-- ---- ----- -----
Sales $57,335 $20,665 $6,602 $84,602
Costs & Expenses (excluding other
operating expenses itemized
below) 20,823 14,055 7,292 42,170
Depreciation & Amortization 11,947 5,354 820 18,121
Restructuring Reversals - (1,636) - (1,636)
------- ------- ------ -------
Operating Income (Loss) 24,565 2,892 (1,510) 25,947
Interest and Dividend Income 1,186
Interest Expense (4,535)
Other Income (Expense), net 229
Equity in Income of Unconsolidated
Entities 843
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Income before Income Taxes and
Cumulative Effect of Accounting
Change 23,670
Provision for Income Taxes 8,866
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Net Income $14,804
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