CTE Reports Third Quarter 1998 Results.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)--Nov. 4, 1998-- 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: Revenues Grow Record 16% Over Prior Year CLEC (Competitive Local Exchange Carrier) An organization offering local telephone service that is not one of the traditional telephone companies. The Telecommunications Act of 1996 allowed competition to the incumbent telcos (ILECs), enabling new companies (CLECs) Switched Access Lines Increase 23% Over Prior Quarter Successful Common Stock Rights Offering Raises Gross Proceeds of $78 million 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) today announced its 1998 third quarter financial results, achieving record consolidated revenue growth of 16% over the 1997 third quarter; industry-leading 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. (traditional telephone operation) switched access line growth of 7% over last year; and a 23% sequential One after the other in some consecutive order such as by name or number. quarterly increase in switched access lines deployed in its facilities-based CLEC operation. The 1998 third quarter results marked CTE's third consecutive quarter of 15% or greater consolidated revenue growth (quarter over prior year same quarter comparison). CTE's consolidated results reflect the combined financial performance of its unique combination of telecom assets: Commonwealth Telephone Company, its 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"); and 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., its facilities-based Competitive Local Exchange Carrier ("CLEC"). CTE Consolidated Results CTE's consolidated revenues for the 1998 third quarter were $57.7 million versus $50.4 million in the 1997 third quarter, an increase of 15%. The 1997 third quarter included a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. one- time National Exchange Carrier Association revenue settlement (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") of $763 thousand. Excluding the impact of the favorable NECA settlement, the 1997 third quarter revenues were $49.6 million. On a normalized basis, the 1998 third quarter revenues of $57.7 million were $8.1 million, or 16% greater than the adjusted 1997 third quarter revenues of $49.6 million. CTE's record revenue growth was primarily driven by continued strong growth in switched access lines and increased penetration of vertical services in its ILEC business, as well as accelerating switched access line additions and solid revenue growth in CTE's rapidly expanding facilities-based CLEC. As expected, CTE's consolidated 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 (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. declined versus the 1997 third quarter reflecting the impact of increased 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. associated with the expansion of the company's facilities-based CLEC into the Southern Upstate New York Upstate New York is the region of New York State north of the core of the New York metropolitan area. It has a population of 7,121,911 out of New York State's total 18,976,457. Were it an independent state, it would be ranked 13th by population. market since last year's third quarter. On a consolidated basis, CTE reported diluted EPS of $0.15 on income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $4.5 million, versus diluted EPS of $0.17 on income from continuing operations of $5.0 million in the year ago quarter. Earnings per share for the current quarter and prior periods reflect the addition of 3.68 million common shares issued in connection with the recently completed common stock rights offering. Diluted EPS for the third quarter of 1998 on the basis of the ILEC operation alone was $0.30, versus a diluted ILEC EPS figure of $0.28 in the 1997 third quarter. Excluding the favorable impact of the NECA settlement, ILEC diluted EPS for the 1997 third quarter was $0.26, resulting in an ILEC diluted EPS growth rate of 15% in the third quarter of 1998 versus the normalized 1997 third quarter figure. "The 1998 third quarter was an outstanding one for CTE both financially and operationally," said Michael I Michael I, Byzantine emperor Michael I (Michael Rangabe), d. c.845, Byzantine emperor (811–13), son-in-law of Nicephorus I. He supported orthodoxy against iconoclasm and recalled Theodore of Studium from exile. . Gottdenker, CTE president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "The pace of switched access line additions in both our ILEC and our CLEC was excellent - and the performance of this key driver resulted in record overall revenue growth for CTE. We remain driven to perfect our core ILEC business, and to continue to aggressively take advantage of the tremendous CLEC growth opportunity before us. We are well positioned to achieve our strategic objectives as we move forward and the third quarter results are indicative of our ability to execute our plans in the market place." Strong ILEC (Traditional Telephone Operation) Results - Year over Year Comparison In the 1998 third quarter, Commonwealth Telephone Company ("CT") continued to achieve very strong financial and operating results. Highlights of the quarter, versus the 1997 third quarter, include: o 7% switched access line growth o 7% revenue growth(1) o 12% 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(1) o 14% 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(1) o 17% net income growth(1) (1) The 1998 third quarter growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. reflect a comparison to the normalized 1997 third quarter results (1997 third quarter adjusted to exclude the favorable impact of a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. $763K NECA revenue settlement). At the end of the 1998 third quarter, CT had 271,451 switched access lines installed, a 7% increase versus the 253,862 access lines installed at the end of the 1997 third quarter, or net switched access line additions of 17,589 over the past twelve months. The growth in switched access lines was primarily driven by CT's highly successful residential second line marketing campaign. In the 1998 third quarter, CT revenues reached $39.2 million, versus normalized (for the NECA settlement) revenues of $36.6 million in the 1997 third quarter, or a revenue growth rate of 7%. The 7% increase in revenues versus the 1997 third quarter was driven by the solid gain in switched access lines, along with increased penetration of high-margin vertical services, particularly Caller ID A telephone company service that sends the caller's telephone number between the first and second ring of the call. If the calling number is not blocked, the calling number is displayed on the handset or base station of the called party. and Voice Mail. In the 1998 third quarter, CT produced EBITDA of $22.4 million, versus normalized (for the NECA settlement) EBITDA of $20.0 million in the 1997 third quarter, or an EBITDA growth rate of 12%. CT's EBITDA margin was 57% for the 1998 third quarter. "Our objective for our core ILEC business is to perfect it. This means continuing to grow revenues aggressively by applying innovative means to market a broad array of products and services to our customers, controlling costs, maintaining our industry- leading EBITDA margins and maximizing the cash flow and value created by this efficient, profitable and steadily growing component of our overall business," said Gottdenker. CLEC Continues Successful Expansion - Sequential Quarter Comparison In the 1998 third quarter, CTSI, Inc. ("CTSI") continued to construct network, install lines and grow revenues at a brisk Brisk as a proper name may refer to:
o 23% sequential quarterly switched access line growth o 24% sequential quarterly revenue growth o A continued reduction in EBITDA losses At the end of the 1998 third quarter, CTSI had 35,933 switched access lines installed versus 10,347 lines installed at the end of the 1997 third quarter, and versus the 29,169 switched access lines installed at the end of the 1998 second quarter, or a sequential quarterly increase of 23%. In the 1998 third quarter, CTSI added 6,764 switched access lines. This figure compares to 5,958 switched access lines added in the 1998 second quarter and 5,193 added in the 1998 first quarter. CTSI's revenues increased to $6.2 million in the 1998 third quarter versus $1.5 million in the 1997 third quarter, and versus $5.0 million in the 1998 second quarter, or a sequential quarterly growth rate of 24%. CTSI's EBITDA loss was $2.0 million in the 1998 third quarter versus a $3.6 million loss in the 1997 third quarter, and versus a $2.4 million loss in the 1998 second quarter. "CTSI had an outstanding third quarter," said Gottdenker. "The addition of nearly 6,800 switched access lines was an important achievement. We continue to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the opportunities in the four select markets we currently serve - Northeastern north·east n. 1. Abbr. NE The direction or point on the mariner's compass halfway between due north and due east, or 45° east of due north. 2. An area or region lying in the northeast. 3. PA, Harrisburg Harrisburg, city (1990 pop. 52,376), state capital and seat of Dauphin co., SE Pa., on the Susquehanna River; settled c.1710 by John Harris, who established a trading post and operated a ferry there; inc. 1791. PA, Central PA and Southern Upstate New York. "Our CLEC EBITDA losses continue to decline as we successfully maintain a high-percentage of lines both on-net Connected to the Internet, or connected to a LAN or WAN. Contrast with off-net. and on-switch, thereby enhancing our margin performance. At the end of the 1998 third quarter, 93% of our CLEC switched access lines were served by our owned switches, with 32% served solely by our owned network with no reliance on leased facilities from the incumbent Refers to an entity that is currently in power. For example, in politics, the "incumbent senator" is the person who holds that office today. An "incumbent company" is an organization that has been providing goods and services for some time. See ILEC. provider. "CTSI's growth in switched access lines installed drove a strong increase in revenues," said Gottdenker. "In the 1998 third quarter, CTSI recorded revenues of $6.2 million, indicative of an 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. revenue run rate of nearly $25 million. Given that we launched this business just over 21 months ago, we are very pleased with the scale we are achieving and the overall `day-in and day-out' execution of our CLEC strategic plan." CTE Common Stock Rights Offering Successfully Concluded During the 1998 third quarter, CTE launched a highly successful common stock rights offering. As a result of the rights offering, which expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. on October October: see month. 23, CTE issued 3.68 million new shares of common stock and received gross proceeds of just over $78 million, which were immediately used to reduce CTE's outstanding debt. Level 3 Telecom Holdings, Inc., CTE's largest shareholder, which owned approximately 48% of the outstanding Common Stock and approximately 48% of the outstanding Class B Common Stock prior to the rights offering, exercised all of the 1.8 million rights it received. In addition to Level 3 Telecom Holdings, Inc., CTE Board of Directors' members Jim Crowe Crowe may refer to: People
To learn more about the origins of the name, see McCourt origins McCourt may refer to the following individuals:
German conductor noted for his interpretations of Mozart and Mahler. Noun 1. Walter - German conductor (1876-1962) Bruno Walter Scott, Jr. each purchased additional shares through the rights offering. "This successful transaction leaves CTE with an extremely strong balance sheet," said Gottdenker. "Between the outstanding cash flow generated by our ILEC operation, and our ability to access existing untapped credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities , we enjoy an excellent capital position." Shareholders of record at the close of business on September September: see month. 25, 1998, received one transferable subscription right for every five shares of common stock or Class B common stock held. Rights holders were permitted to purchase, at a subscription price of $21.25 per share, one share of common stock for each right held. To the extent rights were not exercised, holders exercising their rights were permitted to oversubscribe o·ver·sub·scribe tr.v. o·ver·sub·scribed, o·ver·sub·scrib·ing, o·ver·sub·scribes To subscribe for (something) in excess of available supply: The opera season was oversubscribed. for the unpurchased shares at the same $21.25 price. The number of shares requested pursuant to the oversubscription privilege Oversubscription privilege In a rights issue, arrangement by which shareholders are given the right to apply for any shares that are not taken up. oversubscription privilege was significantly greater; in fact, over 10 times greater, than the number of shares available. The available shares were allocated to the holders exercising the oversubscription privilege pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. based on the number of shares requested. Each holder exercising the oversubscription privilege received just over 8% of the shares requested. The rights offering was the last step for the Company in the recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. plan that resulted in the Company spinning off its former subsidiaries RCN Corporation RCN Corporation, (NASDAQ: RCNI), founded in 1993 and based in Herndon, Virginia, is the first American facilities-based competitive provider of bundled telephone, cable television and high speed Internet service delivered over its own fiber-optic local network to consumers in (NASDAQ: RCNC RCNC Royal Corps of Naval Constructors (naval architects, mechanical, electrical engineers for UK Royal Navy) RCNC Royal Corps of Naval Constructors ) and Cable Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). , Inc. (NASDAQ: CABL CABL Consolidation of Administration at Battalion Level CABL Cabling Subsystem ). About CTE Headquartered in Dallas, PA, Commonwealth Telephone Enterprises, Inc., is a diversified diversified (di·verˑ·s telecommunications company See telecom company. providing advanced solutions to deliver communications, information and entertainment services to business and residential users in a rapidly expanding set of select United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. markets. CTE is organized into two principal operating segments: Commonwealth Telephone Company ("CT"), the nation's 10th largest independent Incumbent Local Exchange Carrier ("ILEC") 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, Inc. ("CTSI"), a Competitive Local Exchange Carrier ("CLEC") which formally commenced operations in 1997. Additionally, CTE operates three support businesses that provide expertise to its two principal operating segments. These businesses consist of Commonwealth Communications, a telecommunications engineering Telecommunications Engineers or Telecom Engineers come in a variety of different types from basic circuit designers to strategic mass developments. A Telecom Engineer is responsible for designing and overseeing the installation of telecommunications equipment and facilities, such and consulting business, epix(TM) 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 Services (www.epix.net) 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 facilities-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 CTE can be reached at www.ct-enterprises.com. -0-
COMMONWEALTH TELEPHONE ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(000'S)
3RD QUARTER 1998
CT CTSI OTHER TOTAL
Sales $ 39,166 $ 6,205 $ 12,377 $ 57,748
Costs & Expenses
before Corporate
Management Fees
and Depreciation
& Amortization 15,443 8,004 11,787 35,234
Corporate Management Fees 1,371 217 433 2,021
Depreciation & Amortization 7,627 1,415 738 9,780
Operating income (loss) 14,725 (3,431) (581) 10,713
Interest & Dividend
income 618 -- 22 640
Interest expense (1,775) (1) (1,594) (3,370)
Other (expense) income, net (61) 45 1 (15)
Income (loss)
from continuing
operations before
income taxes 13,507 (3,387) (2,152) 7,968
Provision (benefit)
for income taxes 5,575 (1,096) (731) 3,748
Income (loss) from
continuing operations
before equity in
unconsolidated
entities 7,932 (2,291) (1,421) 4,220
Equity in income
of unconsolidated
entities -- 243 -- 243
Income (loss) from
continuing operations 7,932 (2,048) (1,421) 4,463
Discontinued operations -- -- 5 5
Net income (loss) 7,932 (2,048) (1,416) 4,468
Preferred Stock
Dividend and
Accretion Requirements -- 1,062 1,062 --
Net Income (Loss)
to Common Shareholders $ 7,932 ($ 2,048) ($ 2,478) $ 3,406
3RD QUARTER 1997(a)
CT CTSI OTHER TOTAL
Sales $ 37,352 $ 1,457 $ 11,550 $ 50,359
Costs & Expenses
before Corporate
Management Fees
and Depreciation
& Amortization 14,237 4,744 10,329 29,310
Corporate Management Fees 2,315 318 375 3,008
Depreciation & Amortization 7,132 317 602 8,051
Operating income (loss) 13,668 (3,922) 244 9,990
Interest & Dividend
income 746 113 - 859
Interest expense (2,044) -(479) (2,523)
Other (expense) income, net (48) -- 10 (38)
Income (loss)
from continuing
operations before
income taxes 12,322 (3,809) (225) 8,288
Provision (benefit)
for income taxes 5,072 (1,331) (276) 3,465
Income (loss) from
continuing operations
before equity in
unconsolidated
entities 7,250 (2,478) 51 4,823
Equity in income
of unconsolidated
entities -- -- 138 138
Income (loss) from
continuing operations 7,250 (2,478) 189 4,961
Discontinued operations -- (3,790) (3,790)
Net income (loss) 7,250 (2,478) (3,601) 1,171
Preferred Stock
Dividend and
Accretion Requirements 1,062 1,062
Net Income (Loss)
to Common Shareholders $ 7,250 ($ 2,478) ($ 4,663) $ 109
(a) CTE and CT Sales, EBITDA, Net Income and Diluted Earnings per
Share for the quarter and nine months ended September 30, 1997
include a favorable one-time National Exchange Carrier
Association (NECA) revenue settlement for $763K, $763K, $446K and
$.02, respectively.
COMMONWEALTH TELEPHONE ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(000'S)
NINE MONTHS ENDED SEPTEMBER 30, 1998
CT CTSI OTHER TOTAL
Sales $ 115,500 $ 15,084 $ 36,078 $ 166,662
Costs & Expenses
before Corporate
Management Fees
and Depreciation
& Amortization 45,230 21,434 33,798 100,462
Corporate Management
Fees 4,043 528 1,263 5,834
Depreciation & Amortization 22,011 3,264 2,048 27,323
Operating income (loss) 44,216 (10,142) (1,031) 33,043
Interest & Dividend income 2,151 - 144 2,295
Interest expense (5,409) (1) (4,162) (9,572)
Other (expense) income, net (259) 503 28 272
Income (loss) from
continuing operations
before income taxes 40,699 (9,640) (5,021) 26,038
Provision (benefit)
for income taxes 16,788 (2,863) (1,944) 11,981
Income (loss) from
continuing operations
before equity in
unconsolidated entities 23,911 (6,777) (3,077) 14,057
Equity in income of
unconsolidated entities 1,433
Income (loss) from
continuing operations 23,911 (5,344) (3,077) 15,490
Discontinued operations -- - (26
Net income (loss) 23,911 (5,344) (3,103) 15,464
Preferred Stock
Dividend and
Accretion Requirements -- 3,187 3,187 --
Net Income (Loss)
to Common Shareholders $ 23,911 ($ 5,344) ($ 6,290) $ 12,277
NINE MONTHS ENDED SEPTEMBER 30, 1997 (a)
CT CTSI OTHER TOTAL
Sales $ 107,943 $ 2,569 $ 34,813 $ 145,325
Costs & Expenses
before Corporate
Management Fees
and Depreciation
& Amortization 41,854 9,344 32,433 83,631
Corporate Management
Fees 5,242 429 817 6,488
Depreciation & Amortization 20,656 496 1,662 22,814
Operating income (loss) 40,191 (7,700) (99) 32,392
Interest & Dividend income 2,448 176 1 2,625
Interest expense (6,177) -(479) (6,656)
Other (expense) income, net (218) (10) 1,236 1,008
Income (loss) from
continuing operations
before income taxes 36,244 (7,534) 659 29,369
Provision (benefit)
for income taxes 14,918 (2,635) 413 12,696
Income (loss) from
continuing operations
before equity in
unconsolidated entities 21,326 (4,899) 246 16,673
Equity in income of
unconsolidated entities -1,433 -- 1,359 1,359
Income (loss) from
continuing operations 21,326 (4,899) 1,605 18,032
Discontinued operations (26) -- (36,159) (36,159)
Net income (loss) 21,326 (4,899) (34,554) (18,127)
Preferred Stock
Dividend and
Accretion Requirements 3,187 3,187
Net Income (Loss)
to Common Shareholders $ 21,326 ($ 4,899) ($ 37,741) ($ 21,314)
(a) CTE and CT Sales, EBITDA, Net Income and Diluted Earnings per
Share for the quarter and nine months ended September 30, 1997
include a favorable one-time National Exchange Carrier
Association (NECA) revenue settlement for $763K, $763K, $446K and
$.02, respectively.
COMMONWEALTH TELEPHONE ENTERPRISES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Dollars in Thousands, Except Per Share Data)
(Unaudited)
QUARTER ENDED NINE MONTHS ENDED
September 30, September 30,
1998 1997(a) 1998 1997(a)
Sales $57,748 $50,359 $166,662 $145,325
Costs & Expenses, Excluding
Management Fees and
Depreciation and Amortization 35,234 29,310 100,462 83,631
Management Fees 2,021 3,008 5,834 6,488
Depreciation and Amortization 9,780 8,051 27,323 22,814
Operating Income 10,713 9,990 33,043 32,392
Interest & Dividend Income 640 859 2,295 2,625
Interest Expense (3,370) (2,523) (9,572) (6,656)
Other (Expense) Income , Net (15) (38) 272 1,008
Income From Continuing
Operations Before
Income Taxes 7,968 8,288 26,038 29,369
Provision for Income
Taxes 3,748 3,465 11,981 12,696
Income From Continuing
Operations Before Equity
in Unconsolidated Entities 4,220 4,823 14,057 16,673
Equity in Income of
Unconsolidated Entities 243 138 1,433 1,359
Income From Continuing
Operations 4,463 4,961 15,490 18,032
Discontinued Operations 5 (3,790) (26) (36,159)
Net Income (Loss) 4,468 1,171 15,464 (18,127)
Preferred Stock Dividend and
Accretion Requirements 1,062 1,062 3,187 3,187
Net Income (Loss) to
Common Shareholders $ 3,406 $ 109 $ 12,277 ($21,314)
(a) CTE and CT Sales, EBITDA, Net Income and Diluted Earnings per
Share for the quarter and nine months ended September 30, 1997
include a favorable one-time National Exchange Carrier
Association (NECA) revenue settlement for $763K, $763K, $446K and
$.02, respectively.
COMMONWEALTH TELEPHONE ENTERPRISES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Dollars in Thousands, Except Per Share Data)
(Unaudited)
Quarter Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Basic Earnings (Loss)
Per Average Common
Share
Income From Continuing
Operations $ 0.15 $ 0.17 $ 0.56 $ 0.67
Discontinued Operations -- ($ 0.17) -- ($ 1.64)
Net Income (Loss) to
Common Shareholders $ 0.15 -- $ 0.56 ($ 0.97)
Weighted Average Common
Shares Outstanding 22,071,524 22,001,656 22,052,284 21,999,477
Diluted Earnings (Loss)
Per Average Common
Share
Income From Continuing
Operations $ 0.15 $ 0.17 $ 0.54 $ 0.67
Discontinued Operations -- ($ 0.17) -- ($ 1.63)
Net Income (Loss)
to Common Shareholders $ 0.15 -- $ 0.54 ($ 0.96)
Weighted Average Common
Shares and Common Stock
Equivalents Outstanding 22,624,170 22,387,696 22,659,701 22,243,656
Note: The weighted average common shares outstanding and earnings
per share for prior periods have been restated to reflect the Common
Stock Rights Offering in September, 1998.
COMMONWEALTH TELEPHONE ENTERPRISES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Dollars in Thousands)
(Unaudited)
September 30, December 31,
1998 1997
Assets
Current Assets:
Cash and Temporary Cash Investments $ 5,528 $ 14,017
Accounts Receivable
From Related Parties 427 3,743
Other Current Assets 56,996 48,510
Deferred Income Taxes 7,353 5,170
Total Current Assets 70,304 71,440
Property, Plant and Equipment
(Net of Accumulated
Depreciation of $242,122 as of
September 30, 1998 and $223,051
in 1997) 320,850 287,956
Investments 9,689 8,815
Deferred Charges and Other Assets 8,741 5,456
Total Assets $409,584 $373,667
Liabilities and Shareholders' Equity
Current Liabilities:
Current Maturities of Long-term Debt $ 9,010 $ 9,010
Advance Billings & Customer Deposits 3,992 3,540
Accrued Taxes 1,004 1,498
Accrued Interest 566 638
Accounts Payable to Related Parties 1,361 7,944
Other Current Liabilities 55,427 52,828
Total Current Liabilities $ 71,360 $ 75,458
COMMONWEALTH TELEPHONE ENTERPRISES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Dollars in Thousands)
(Unaudited)
September 30, December 31,
1998 1997
Long-term Debt $ 191,090 $ 167,347
Deferred Income Taxes and Investment
Tax Credits 43,244 42,086
Other Deferred Credits 8,977 8,328
Redeemable Preferred Stock 43,754 42,517
Common Shareholders' Equity:
Common Stock 22,380 22,377
Additional Paid-in Capital 149,633 151,041
Retained Earnings 16,027 3,750
Treasury Stock At Cost,
3,983,650 Shares
at September 30, 1998
and 4,048,218 Shares
at December 31, 1997 (136,881) (139,237)
Total Common Shareholders' Equity 51,159 37,931
Total Liabilities and Shareholders' Equity $ 409,584 $ 373,667
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