Citizens Communications Reports 2001 Year-End and Fourth-Quarter Financial Results.Business Editors STAMFORD Stamford, town, England Stamford, town (1991 pop. 18,127), in the Parts of Kesteven, Lincolnshire, E central England, on the Welland River. It is a market town. Products include diesel engines, electrical equipment, bricks, and tiles. , Conn.--(BUSINESS WIRE)--March 7, 2002 Citizens Communications Citizens Communications is the parent company of Frontier Telephone, providing telephone and internet access in 24 states. The company headquarters are located at 3 High Ridge Park in Stamford, Connecticut. (NYSE NYSE See: New York Stock Exchange :CZN, CZB) today reported financial results for the year and quarter ended December December: see month. 31, 2001. The following information should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with our financial statements and footnotes contained in our 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. to be filed with the Securities and Exchange Commission. 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: revenue for 2001 was $2.46 billion, up 36 percent from $1.80 billion in 2000. Consolidated fourth-quarter revenue was $665.8 million, an increase of 38 percent above 2000 fourth-quarter consolidated revenue of $482.3 million. 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. 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 was $233.0 million for 2001, an increase of $111.2 million or 91 percent above 2000 operating income of $121.8 million. Fourth-quarter 2001 operating income was $26.4 million, 296 percent above 2000 fourth-quarter operating income of $6.7 million. Operating income reflects the impact of the write down of Global Crossing 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 , assimilation Assimilation The absorption of stock by the public from a new issue. Notes: Underwriters hope to sell all of a new issue to the public. See also: Issuer, Underwriting Assimilation and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). expenses and the acceleration acceleration, change in the velocity of a body with respect to time. Since velocity is a vector quantity, involving both magnitude and direction, acceleration is also a vector. In order to produce an acceleration, a force must be applied to the body. of depreciation of certain assets related to restructuring which are described below. 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 from continuing operations was $865.4 million for 2001, an increase of 70 percent above 2000 EBITDA of $509.4 million. Fourth-quarter 2001 EBITDA was $245.0 million, 112 percent above 2000 fourth-quarter EBITDA of $115.8 million. EBITDA is operating income plus depreciation and amortization. EBITDA is a measure commonly used to analyze an·a·lyze v. 1. To examine methodically by separating into parts and studying their interrelations. 2. To separate a chemical substance into its constituent elements to determine their nature or proportions. 3. companies on the basis of operating performance. EBITDA is not a measure of financial performance nor is it an alternative to cash flow as a measure of liquidity and may not be comparable to similarly titled measures of other companies. Consolidated net loss for 2001 was $89.7 million, and net loss per share was 38 cents, compared to last year's consolidated net loss of $28.4 million and 11 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . Net loss for 2001 included: the pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain of $139.3 million from the sale of gas operations in Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. ; the write down of Global Crossing receivables of $21.2
million as a result of Global Crossing filing for bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most ; the
recognition of a $79.0 million loss resulting from the decline in value
of the company's investment in Adelphia A`del´phi`an. 1. (Bot.) A "brotherhood," or collection of stamens in a bundle; - used in composition, as in the class names, Monadelphia, Diadelphia, etc. s> Communications; extraordinary after tax expense of $43.6 million related to discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of the application of Statement of Financial Accounting Standard No. 71 (FAS 71); restructuring expenses of $19.3 million related to the company's plans to close its Sacramento Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. call center by the end of this month and its operations support center in Plano, Texas Plano (IPA: /ˈpleɪnoʊ/) is a wealthy suburb of Dallas, Texas, located to the north, mainly within Collin County, but also extending into Denton County. According to the 2000 U.S. by April 2002 and restructuring expenses at Electric Lightwave Light in the infrared, visible and ultraviolet ranges, which falls between x-rays and microwaves. Wavelengths are between 10 nanometers and one millimeter. , Inc.; and acquisition assimilation expense of $21.4 million related to the completed acquisitions, representing incremental costs Costs which are additional costs to the Service appropriations that would not have been incurred absent support of the contingency operation. See also financial management. incurred in advance of the respective acquisitions which are solely related to the preparation for businesses to be acquired. Fourth-quarter 2001 net loss was $108.3 million or 39 cents per share, compared to a net loss of $40.2 million or 15 cents per share in the fourth quarter of 2000. Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. - 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". Segment ("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. Segment") 2001 revenue from the company's ILEC Segment was $1.59 billion, up 65 percent from $963.7 million for 2000. Acquisitions of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 334,500 telephone access lines completed at various times during the second half of 2000 and the acquisition on June June: see month. 29, 2001 of Frontier frontier, in U.S. history, the border area of settlement of Europeans and their descendants; it was vital in the conquest of the land between the Atlantic and the Pacific. Corp.'s approximately 1.1 million lines accounted for $569.8 million of the increase. The remainder is the result of internal growth. Excluding acquisitions, 2001 ILEC Segment revenue grew by 6 percent. Fourth-quarter 2001 revenue from this segment was $510.7 million, up 94 percent from $263.3 million for the 2000 fourth quarter. Acquisitions accounted for $219.5 million of this increase. On a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). reporting basis, ILEC Segment operating income for 2001 was $221.0 million, up 40 percent from $157.9 million for 2000 and EBITDA for 2001 was $766.2 million, up 76 percent from $434.1 million for 2000. However, one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. nonrecurring charges Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". impacting both operating income and EBITDA totaled $57.7 million for 2001 and $39.9 million for 2000. These charges consisted of the write down of Global Crossing receivables in 2001 and assimilation and restructuring expenses in both years. Operating income also reflected accelerated depreciation Accelerated Depreciation Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years of the life of an asset. Notes: The straight-line depreciation method spreads the cost evenly over the life of an asset. of $22.0 million in 2001 related to the change in useful lives of certain assets resulting from our restructuring. On a GAAP reporting basis, ILEC Segment operating income for the fourth quarter of 2001 was $33.0 million and EBITDA for the fourth quarter of 2001 was $230.6 million, up 89 percent from $122.1 million in the fourth quarter of 2000. However, one-time nonrecurring charges impacting operating income and EBITDA totaled $27.1 million for the fourth quarter of 2001 and $15.8 million for the 2000 quarter. Operating income also reflected accelerated depreciation of $13.2 million in 2001 related to the change in useful lives of certain assets resulting from our restructuring. On a sequential One after the other in some consecutive order such as by name or number. quarter basis, fourth quarter 2001 revenue increased 0.7 percent from $507.2 million to $510.7 million; access lines decreased 0.4 percent or 9,100 lines to 2,481,400, principally due to the soft business environment in Rochester Rochester (rŏch`ĕstər, –ĭstər). 1 City (1990 pop. 70,745), seat of Olmsted co., SE Minn.; inc. 1858. as well as normal seasonality of winter migration. Average monthly revenue per access line increased 1.2 percent to $68.48. Competitive Local Exchange Carrier Segment; Electric Lightwave, 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 :ELIX E`lix´ v. t. 1. To extract. ) ("ELI-CLEC") 2001 revenue from ELI-CLEC totaled $226.6 million compared to $244.0 million for 2000, a decrease of 7 percent. Fourth-quarter revenue for 2001 was $50.3 million compared to $63.0 million in the prior year's fourth quarter, a decrease of 20 percent. ELI-CLEC operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for 2001 was $73.2 million, a $13.3 million increase from the $59.9 million operating loss for 2000. ELI-CLEC EBITDA for 2001 was $5.8 million, a $4.0 million increase over $1.8 million EBITDA for 2000. ELI-CLEC operating income and EBITDA for the fourth quarter and the year ended December 31, 2001 was affected by a workforce reductions, restructuring related to exiting certain long-haul long haul n. 1. A long distance: It is a long haul from New York to Los Angeles. 2. A long period of time: Over the long haul the candidates performed well. markets with an associated expense of $4.2 million and lower-than-anticipated revenue primarily due to a downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in economic conditions that affected carriers, 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. and related e-businesses; a decline in data services due to the expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of a material contract; and a decrease in reciprocal Bilateral; two-sided; mutual; interchanged. Reciprocal obligations are duties owed by one individual to another and vice versa. A reciprocal contract is one in which the parties enter into mutual agreements. compensation. ELI-CLEC fourth-quarter operating loss for 2001 was $19.8 million, a $7.0 million increase from the $12.8 million operating loss for 2000. ELI-CLEC fourth-quarter 2001 EBITDA was $.6 million, a $4.5 million decrease from $5.1 million EBITDA for the 2000 fourth quarter. ELI-CLEC's Class A Common Stock is currently traded on the Nasdaq National Market System, but the stock does not meet minimum bid price and market value of public float requirements for continued listing. If the stock is unable to regain compliance by May 15, 2002, the stock could be subject to delisting Delisting When the stock of a company is removed from a stock exchange. Notes: Reasons for delisting include violating regulations and/or failure to meet financial specifications set out by the stock exchange. at that time. Public Services Public services is a term usually used to mean services provided by government to its citizens, either directly (through the public sector) or by financing private provision of services. Segment The gas and electric segments accounted for $639.5 million of 2001 consolidated revenue, compared to $597.8 million 2000. The year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. results include $83.3 million in operating income from the company's Public Services operations, compared to $23.5 million for the same period in 2000. The year-end results include $90.3 million in EBITDA from the company's Public Services operations, compared to $71.4 million for the same period in 2000. In the fourth-quarter of 2001, the gas and electric segments accounted for $105.0 million of consolidated revenue, compared to $157.2 million in 2000. The decrease is primarily due to the sale of Louisiana CODE, OF LOUISIANA. In 1822, Peter Derbigny, Edward Livingston, and Moreau Lislet, were selected by the legislature to revise and amend the civil code, and to add to it such laws still in force as were not included therein. Gas, the largest of Citizens' four gas divisions, on July July: see month. 2, 2001, for $363.4 million, resulting in a pre-tax gain of $139.3 million. Fourth-quarter 2001 operating income includes $12.4 million in operating income from the company's Public Services operations, compared to a 2000 fourth-quarter operating loss for Public Services of $21.7 million. Fourth-quarter 2001 EBITDA includes $12.9 million in EBITDA from the company's Public Services operations, compared to a 2000 fourth-quarter EBITDA loss for Public Services of $12.8 million. Discussion Citizens is monitoring the bankruptcy proceedings bankruptcy proceedings n. the bankruptcy procedure is: a) filing a petition (voluntary or involuntary) to declare a debtor person or business bankrupt, or, under Chapter 11 or 13, to allow reorganization or refinancing under a plan to meet the debts of the party of Global Crossing Ltd. and its affiliates to determine the effect on Citizens' operations and financial position. Citizens purchased its Frontier local exchange telephone business from Global Crossing in June 2001 for $3.37 billion, subject to final purchase price adjustment. Citizens is integrating the Frontier telephone business with Citizens' other telecommunications operations and has ongoing commercial relationships with Global Crossing affiliates. Citizens will reserve approximately $30 million to reflect its best estimate of the net realizable value Net realizable value (NRV) is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. of receivables incurred from these commercial relationships during 2001 and up to the date of the bankruptcy filing in 2002. Citizens recorded a write down of such receivables in the amount of $21.2 million for the fourth quarter of 2001, with the remainder recorded in the first quarter of 2002 for receivables generated after December 31, 2001 and prior to the Global Crossing bankruptcy filing on January January: see month. 28, 2002. On February February: see month. 13, 2002, Citizens Communications announced that it would recognize a $79 million write down in its year ended December 31, 2001, financial statements on its holdings of 3,059,000 shares of Class A Common Stock of Adelphia Communications Corp. This non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. does not impact the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of these securities, which were stated at current market values on prior balance sheets. This charge reflects a decline in current trading values that have persisted for more than a six-month period. Citizens has previously reported this decline as an item of comprehensive loss in the equity section of its balance sheets. Citizens continues to hold the Adelphia shares. Beginning in the third quarter of 2001, Citizens' ILEC Segment operations no longer met the criteria criteria (krītēr´ē  ),n. for application of FAS No. 71. We recorded a non-cash extraordinary charge of $43.6 million net of tax in our income statement to write off 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. assets and liabilities recorded on our balance sheet in the past. As previously announced, we completed the sale of our water and wastewater Wastewater is any water that has been adversely affected in quality by anthropogenic influence. It comprises liquid waste discharged by domestic residences, commercial properties, industry, and/or agriculture and can encompass a wide range of potential contaminants and treatment operations on January 15, 2002, for $855.7 million in cash and $123.8 million in assumed debt and other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. . The pre-tax gain on this disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of , which will be reflected in the results of operations for the first quarter of 2002, is estimated to be $303.6 million. On November November: see month. 11, 2001, Citizens Communications completed the sale of its Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. gas division to Kinder Morgan Kinder Morgan Inc. NYSE: KMI is an American energy company. It is also, through a subsidiary, the general partner of and owner of many of the interests in Kinder Morgan Energy Partners, a publicly traded pipeline and terminal limited partnership. for $8.9 million in cash. Citizens continues to pursue the disposition of its remaining utility assets. Restructuring expense for the ILEC Segment for the year and quarter ended December 31, 2001 is $15.1 million and $2.1 million, respectively. This expense relates to Citizens' previously announced plans to close its operations support center in Plano, Texas and its Sacramento call center. The expense primarily consists of severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when , benefits, retention, early lease termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. costs and other planning and communication costs. We expect to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. additional costs of approximately $1.4 million through the second quarter of 2002. Guidance Guidance for 2002 for the company's ILEC Segment and ELI-CLEC Segment is reaffirmed as follows: Guidance for the ILEC Segment is revenue of $2.1 billion; adjusted EBITDA (operating income plus depreciation and amortization), before restructuring expenses of $1.09 billion; capital expenditures of $437.5 million; interest expense of $420.0 million; and free cash flow of $232.5 million. Excluding purchase of leased assets. About Citizens Communications Citizens Communications serves 2.5 million access lines in 24 states. Citizens owns 85 percent of Electric Lightwave, Inc. (NASDAQ:ELIX), a facilities-based, integrated communications provider that offers a broad range of services to telecommunications-intensive businesses throughout the 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. . This document contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in the statements. These and all forward-looking statements (including oral representations) are only predictions or statements of current plans that are constantly under review by the company. All forward-looking statements may differ from actual results because of, but not limited to, changes in the local and overall economy, changes in market conditions for debt and equity securities, the nature and pace of technological changes, the number and effectiveness of competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. in the company's markets, success in overall strategy, changes in legal or regulatory policy, changes in legislation, the company's ability to identify future markets and successfully expand existing ones, the mix of products and services offered in the company's target markets, the effects of acquisitions and dispositions and the ability to effectively integrate businesses acquired. These important factors should be considered in evaluating any statement contained herein and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. made buy the company or on its behalf. The foregoing information should be read in conjunction with the company's filings with the U.S. Securities and Exchange Commission including, but not limited to, reports on Forms 10-K and 10-Q. The company does not intend to update or revise these forward-looking statements to reflect the occurrence of future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or .
Citizens Communications Company
Consolidated Financial Data
(unaudited)
For the quarter ended
December 31,
------------------------
%
(Amounts in thousands -
except per-share amounts) 2001 2000 Change
-------------------------
Income Statement Data
Continuing operations (1)
Revenue $ 665,849 $ 482,339 38%
Cost of services 122,271 142,834 -14%
Depreciation and amortization 218,602 109,124 100%
Other operating expenses 267,358 208,570 28%
Restructuring expenses (2) 6,325 (649) -
Write-down of Global Crossing
receivables (2) 21,200 - -
Acquisition assimilation expenses 3,715 15,799 -76%
Operating income 26,378 6,661 296%
Investment and other income
(loss), net (3) (82,036) (11,563) -
Gain on sale of assets - - -
Interest expense 121,293 58,467 107%
Income tax expense (benefit) (63,988) (21,228) -201%
Convertible preferred dividends 1,552 1,552 -
Income (loss) from continuing
operations (114,515) (43,693) -162%
Income from discontinued operations,
net of tax 6,200 3,495 77%
Extraordinary expense -
discontinuation of Statement
of Financial Accounting Standards
No. 71, net of tax - - -
Net income (loss) (108,315) (40,198) -169%
Carrying costs of equity forward
contracts - - -
Available to common shareholders (108,315) (40,198) -169%
EBITDA and Capital Expenditure
Data (4)
EBITDA from continuing operations $ 244,980 $ 115,785 112%
Capital expenditures from
continuing operations 164,009 105,834 55%
Capital expenditures from assets
held for sale 16,225 21,464 -24%
Total cash capital expenditures 180,234 127,298 42%
Cash Flow Data
Cash flow - operating activities $ 116,936 $ 36,541 220%
Cash flow - investing activities (191,829) (268,546) 29%
Cash flow - financing activities 49,736 245,622 -80%
Cash flow - discontinued operations 43,902 (28,541) 254%
Balance Sheet Data
Cash and investments
Total assets
Net plant (continuing operations)
Assets held for sale
Assets of discontinued operations
Long-term debt (continuing operations)
Less: Equity units
Less: Cash and short-term investments
Net debt
Equity
Shares of common stock outstanding
Weighted average shares outstanding 279,675 261,295 7%
Per-Share Data (5)
Available to common shareholders from
continuing operations per
common share $(0.41) $(0.17) -141%
Available to common shareholders per
common share (0.39) (0.15) -160%
Book value per share
Other Financial Data
Long-term debt to long-term debt
and equity
Common equity market capitalization
(in billions)
Equity market capitalization
(in billions)
Market capitalization (in billions) (6)
For the year ended
December 31,
---------------------------
%
(Amounts in thousands - except
per-share amounts) 2001 2000 Change
---------------------------
Income Statement Data
Continuing operations (1)
Revenue $ 2,456,99 $1,802,358 36%
Cost of services 599,378 481,673 24%
Depreciation and amortization 632,336 387,607 63%
Other operating expenses 930,330 771,997 21%
Restructuring expenses (2) 19,327 (649) -
Write-down of Global Crossing
receivables (2) 21,200 - 100%
Acquisition assimilation expenses 21,380 39,929 -46%
Operating income 233,042 121,801 91%
Investment and other income (loss),
net (3) (65,541) 15,572 -
Gain on sale of assets 139,304 - 100%
Interest expense 379,326 187,366 102%
Income tax expense (benefit) (14,805) (16,132) 8%
Convertible preferred dividends 6,210 6,210 -
Income (loss) from continuing
operations (63,926) (40,071) -60%
Income from discontinued operations,
net of tax 17,875 11,677 53%
Extraordinary expense -
discontinuation of Statement of
Financial Accounting Standards
No. 71, net of tax 43,631 - 100%
Net income (loss) (89,682) (28,394) -216%
Carrying costs of equity forward
contracts (13,650) - 100%
Available to common shareholders (103,332) (28,394) -264%
EBITDA and Capital Expenditure
Data (4)
EBITDA from continuing operations $ 865,378 $ 509,408 70%
Capital expenditures from continuing
operations 463,870 455,700 2%
Capital expenditures from assets
held for sale 66,844 80,939 -17%
Total cash capital expenditures 530,714 536,639 -1%
Cash Flow Data
Cash flow - operating activities $ 520,379 $ 299,503 74%
Cash flow - investing activities (3,650,250)(1,273,711) -187%
Cash flow - financing activities 3,141,389 1,017,434 209%
Cash flow - discontinued operations 14,926 (49,328) 130%
Balance Sheet Data
Cash and investments $ 357,077 $ 284,445 26%
Total assets 10,553,600 6,955,006 52%
Net plant (continuing operations) 4,512,038 3,520,712 28%
Assets held for sale 1,107,937 1,282,152 -14%
Assets of discontinued operations 746,791 717,602 4%
Long-term debt (continuing
operations) 5,994,906 3,062,289 96%
Less: Equity units 460,000 - 100%
Less: Cash and short-term
investments 215,869 70,086 208%
--------------------
Net debt 5,319,037 2,992,203 78%
====================
Equity 1,946,142 1,720,001 13%
Shares of common stock outstanding 281,289 262,661 7%
Weighted average shares outstanding 273,721 260,767 5%
Per-Share Data (5)
Available to common shareholders from
continuing operations per common
share $ (0.28) $ (0.15) -87%
Available to common shareholders per
common share (0.38) (0.11) -245%
Book value per share 7.11 6.60 8%
Other Financial Data
Long-term debt to long-term debt and
equity 75% 64%
Common equity market capitalization
(in billions) $ 3.00 $ 3.45
Equity market capitalization
(in billions) $ 3.18 $ 3.66
Market capitalization
(in billions) (6) $ 9.21 $ 6.48
(1) Includes our Incumbent Local Exchange Carrier (ILEC), Electric
Lightwave, Inc. (ELI), (our Competitive Local Exchange Carrier)
and our natural gas and electric businesses. The natural gas and
electric businesses are presented in continuing operations in the
selected income statement data and as assets held for sale in the
balance sheet data. We report our water and wastewater businesses
as discontinued operations. Continuing operations reflect the
elimination of intercompany transactions (see segment footnote in
the SEC Form 10-K).
(2) Represents the write-down of the net realizable value of Global
Crossing receivables as a result of Global's filing for
bankruptcy. See footnote 21 in the SEC Form 10-K. See footnote 14
in the SEC 10-K Form for an explanation of restructuring expenses.
(3) Includes $12,222 of minority interest for the year ended
12/31/2000.
(4) EBITDA is operating income plus depreciation and amortization.
EBITDA is a measure commonly used to analyze companies on the
basis of operating performance. It is not a measure of financial
performance under generally accepted accounting principles and
should not be considered as an alternative to net income as a
measure of performance nor an alternative to cash flow as a
measure of liquidity and may not be comparable to similarly titled
measures of other companies (see segment footnote in the SEC Form
10-K).
(5) Calculated based on weighted average shares outstanding.
(6) Equity market capitalization plus long-term debt.
Citizens Communications Company
Financial and Operating Data by Service
For the quarter ended For the year ended
December 31, December 31,
---------------------- ------------------
(Dollars in thousands, % %
except operating data) 2001 2000 Change 2001 2000 Change
---------------------- ---------------------
ILEC
Select Income Statement Data
Revenue
Network access
services $ 193,092 $121,384 59% $654,641 $451,402 45%
Local network
services 191,860 95,321 101% 582,662 326,878 78%
Long distance and
data services 73,130 31,258 134% 208,274 106,662 95%
Directory services 25,433 10,125 151% 72,375 37,424 93%
Other 27,203 5,180 425% 76,101 41,377 84%
Total revenue 510,718 263,268 94% 1,594,053 963,743 65%
Network access
expense 48,414 15,688 209% 129,408 67,060 93%
Depreciation and
amortization 197,570 80,623 145% 545,273 276,250 97%
Other operating
expenses 204,674 109,724 87% 640,688 422,608 52%
Restructuring
expenses (1) 2,146 - 100% 15,148 - 100%
Write-down of Global
Crossing
receivables (2) 21,200 - 100% 21,200 - 100%
Acquisition
assimilation
expenses (3) 3,715 15,799 -76% 21,380 39,929 -46%
Total expense 477,719 221,834 115% 1,373,097 805,847 70%
Operating income 32,999 41,434 -20% 220,956 157,896 40%
EBITDA and Capital
Expenditure Data
EBITDA (4) $ 230,569 $122,057 89% $766,229 $434,146 76%
EBITDA margin (5) 45% 46% - 48% 45% -
Cash capital
expenditures 152,509 85,106 79% 408,464 345,395 18%
Balance Sheet Data
Total assets $7,072,288 $3,558,562 99%
Net plant 3,633,967 2,593,746 40%
Operating Data
Access lines:
Embedded properties
excluding
acquisitions 1,386,400 1,371,200 1%
Acquired properties 1,095,000 - 100%
Total access lines 2,481,400 1,371,200 81%
Switched access minutes
of use (in millions) (6)
Excluding
acquisitions 1,877 1,598 17% 7,501 5,755 30%
Acquisitions 1,206 - 100% 2,436 - 100%
Total MOU 3,083 1,598 93% 9,937 5,755 73%
Employees 7,920 4,212 88%
(1) Represents expenses associated with our plan to close our
operations support center in Plano, Texas by April 2002.
See footnote 14 in the SEC 10-K Form for an explanation of
restructuring expenses.
(2) Represents the write-down of the net realizable value of Global
Crossing receivables as a result of Global's filing for
bankruptcy.
See footnote 21 in the SEC 10-K Form for an explanation.
(3) Represents expenses associated with the completed and pending
acquisitions.
(4) EBITDA is operating income plus depreciation and amortization.
EBITDA is a measure commonly used to analyze companies on the
basis of operating performance.
It is not a measure of financial performance under generally
accepted accounting principles and should not be considered as an
alternative to net income as a measure of performance nor an
alternative to cash flow as a measure of liquidity and may not be
comparable to similarly titled measures of other companies (see
segment footnote in the SEC Form 10-K).
(5) EBITDA divided by total revenue.
(6) Acquisitions represent minutes of use from entities acquired after
December 31, 2000.
Citizens Communications Company
Financial and Operating Data by Service
For the quarter ended For the year ended
December 31, December 31,
---------------------- ---------------------------
(Dollars in
thousands, except % %
operating data) 2001 2000 Change 2001 2000 Change
---------------------- --------------------------
Electric
Lightwave, Inc.
Select Income
Statement Data
Revenue
Network services $23,372 $22,633 3% $ 101,338 $77,437 31%
Local telephone
services 15,177 23,231 -35% 73,291 98,643 -26%
Long distance
services 2,980 3,728 -20% 12,294 16,318 -25%
Data services 8,790 13,377 -34% 39,717 51,579 -23%
Total revenue 50,319 62,969 -20% 226,640 243,977 -7%
Network access
expense 16,596 17,294 -4% 67,610 74,105 -9%
Restructuring
expense 4,179 - 100% 4,179 - 100%
Gross margin 29,544 45,675 -35% 154,851 169,872 -9%
Depreciation and
amortization 20,375 17,882 14% 79,022 61,663 28%
Other operating
expenses 28,949 40,562 -29% 149,022 168,085 -11%
Total expense 70,099 75,738 -7% 299,833 303,853 -1%
Operating loss (19,780)(12,769) -55% (73,193) (59,876) -22%
EBITDA and Capital
Expenditure Data
EBITDA(1) $ 595 $ 5,113 -88% $ 5,829 $ 1,787 226%
Cash capital
expenditures(2) 10,683 15,817 -32% 54,589 108,909 -50%
Balance Sheet Data
Total assets $ 902,348 $ 949,774 -5%
Gross plant 1,037,349 978,327 6%
Operating Data
Access Line
Equivalents 148,787 200,231 -26%
Route miles 6,754 5,924 14%
Fiber miles 354,083 297,284 19%
Customers 2,243 2,246 0%
Buildings
connected 859 851 1%
Employees 823 1,161 -29%
Revenue per
employee $61,141 $54,237 13% $ 275,383 $ 210,144 31%
(1) EBITDA is operating income plus depreciation and amortization.
EBITDA is a measure commonly used to analyze companies on the
basis of operating performance. It is not a measure of
financial performance under generally accepted accounting
principles and should not be considered as an alternative to
net income as a measure of performance nor an alternative to
cash flow as a measure of liquidity and may not be comparable
to similarly titled measures of other companies (see segment
footnote in the SEC Form 10-K).
(2) Excludes capitalized leases.
Citizens Communications Company
Financial and Operating Data by Service
For the quarter ended
December 31,
------------------------------
(Dollars in thousands, %
except operating data) 2001 2000 Change
------------------------------
Gas Sector (1)
Select Income Statement Data
Revenue
Residential distribution $ 19,762 $ 44,391 -55%
Commercial distribution 24,038 27,810 -14%
Industrial distribution 5,674 21,106 -73%
Total distribution 49,474 93,307 -47%
Other 1,673 10,692 -84%
Total revenue 51,147 103,999 -51%
Gas purchased 29,996 81,300 -63%
Gross margin 21,151 22,699 -7%
Depreciation and amortization (2) 152 153 -1%
Other operating expenses 15,296 38,438 -60%
Total expense 45,444 119,891 -62%
Operating income 5,703 (15,892) -
EBITDA and Capital Expenditure Data
EBITDA (3) $ 5,855 $ (15,739) -
Cash capital expenditures 7,949 15,413 -48%
Balance Sheet Data
Assets held for sale
Net plant
Operating Data
Customers
Employees
Customers per employee
Gross margin (net revenue)
per employee $ 42,990 $ 22,232 93%
Billion Cubic Feet of gas
throughput (BCF) 5.4 22.8 -76%
For the year ended
December 31,
------------------------------
(Dollars in thousands, %
except operating data) 2001 2000 Change
------------------------------
Gas Sector (1)
Select Income Statement Data
Revenue
Residential distribution $ 195,620 $ 161,925 21%
Commercial distribution 137,310 121,890 13%
Industrial distribution 65,914 63,060 5%
Total distribution 398,844 346,875 15%
Other 12,690 27,876 -54%
Total revenue 411,534 374,751 10%
Gas purchased 282,061 229,538 23%
Gross margin 129,473 145,213 -11%
Depreciation and amortization (2) 609 19,228 -97%
Other operating expenses 80,948 117,717 -31%
Total expense 363,618 366,483 -1%
Operating income 47,916 8,268 480%
EBITDA and Capital Expenditure Data
EBITDA (3) $ 48,525 $ 27,496 76%
Cash capital expenditures 34,138 51,457 -34%
Balance Sheet Data
Assets held for sale $ 441,654 $ 667,651 -34%
Net plant 354,991 531,885 -33%
Operating Data
Customers 188,800 473,527 -60%
Employees 492 1,021 -52%
Customers per employee 384 464 -17%
Gross margin (net revenue)
per employee $ 263,157 $ 142,226 85%
Billion Cubic Feet of gas
throughput (BCF) 46.1 73.7 -37%
(1) Our Louisiana and Colorado gas operations were disposed of by sale
on July 2, 2001 and November 30, 2001, respectively. The sale of
these operations affects comparability of data presented.
(2) Our gas operations are reported as "held for sale". Accordingly,
we ceased to record depreciation expense effective October 1,
2000.
(3) EBITDA is operating income plus depreciation and amortization.
EBITDA is a measure commonly used to analyze companies on the
basis of operating performance. It is not a measure of financial
performance under generally accepted accounting principles and
should should not be considered as an alternative to net income as
a measure of performance nor an alternative to cash flow as a
measure of liquidity and may not be comparable to similarly titled
measures of other companies (see segment footnote in the SEC Form
10-K).
Citizens Communications Company
Financial and Operating Data by Service
For the quarter ended
December 31,
-----------------------------
(Dollars in thousands, except %
operating data) 2001 2000 Change
-----------------------------
Electric Sector
Select Income Statement Data
Revenue
Residential distribution $ 22,533 $ 21,037 7%
Commercial distribution 15,563 17,316 -10%
Industrial distribution 7,112 14,512 -51%
Total distribution 45,208 52,865 -14%
Other 8,693 327 2558%
Total revenue 53,901 53,192 1%
Electric energy and fuel
oil purchased 27,419 29,450 -7%
Gross margin 26,482 23,742 12%
Depreciation and
amortization (1) 299 8,822 -97%
Other operating expenses 19,455 20,767 -6%
Total expense 47,173 59,039 -20%
Operating income 6,728 (5,847) -
EBITDA and Capital Expenditure
Data
EBITDA (2) $ 7,027 $ 2,975 136%
Cash capital expenditures 8,276 6,051 37%
Balance Sheet Data
Assets held for sale
Net plant
Operating Data
Customers
Employees
Customers per employee
Gross margin (net revenue)
per employee $ 78,582 $ 71,512 10%
Megawatt hours sold 468,487 466,396 0%
Megawatt hours generated 99,920 95,062 5%
Megawatt hours purchased 391,096 391,342 0%
Citizens Communications Company
Financial and Operating Data by Service
For the year ended
December 31,
-----------------------------
%
(Dollars in thousands, except
operating data) 2001 2000 Change
-----------------------------
Electric Sector
Select Income Statement Data
Revenue
Residential distribution $ 96,888 $ 106,842 -9%
Commercial distribution 65,688 62,521 5%
Industrial distribution 45,054 47,269 -5%
Total distribution 207,630 216,632 -4%
Other 20,385 6,440 217%
Total revenue 228,015 223,072 2%
Electric energy and fuel
oil purchased 123,223 113,965 8%
Gross margin 104,792 109,107 -4%
Depreciation and
amortization (1) 6,434 28,629 -78%
Other operating expenses 63,023 65,252 -3%
Total expense 192,680 207,846 -7%
Operating income 35,335 15,226 132%
EBITDA and Capital Expenditure
Data
EBITDA (2) $ 41,769 $ 43,855 -5%
Cash capital expenditures 32,706 29,482 11%
Balance Sheet Data
Assets held for sale $ 666,283 $ 544,656 22%
Net plant 450,662 421,443 7%
Operating Data
Customers 128,432 123,562 4%
Employees 337 332 2%
Customers per employee 381 372 2%
Gross margin (net revenue) per
employee $ 310,955 $ 328,636 -5%
Megawatt hours sold 1,988,732 1,943,370 2%
Megawatt hours generated 415,690 391,216 6%
Megawatt hours purchased 1,725,884 1,719,308 0%
(1) Our electric operations are reported as "held for sale".
Accordingly, we ceased to record depreciation expense effective
January 1, 2001.
(2) EBITDA is operating income plus depreciation and amortization.
EBITDA is a measure commonly used to analyze companies on the
basis of operating performance. It is not a measure of financial
performance under generally accepted accounting principles and
should not be considered as an alternative to net income as a
measure of performance nor an alternative to cash flow as a
measure of liquidity and may not be comparable to similarly titled
measures of other companies (see segment footnote in the SEC form
10-K).
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