Citizens Communications Reports 82 Percent Increase in Third Quarter EBITDA.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)--Nov. 13, 2001 Q3 '01 Revenue Increases 46 Percent from Q3 '00 Revenue 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 quarter ended September September: see month. 30, 2001. Highlights of the quarter include: This is the first full quarter reporting 2.5 million telephone access lines, reflecting the acquisition of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1.1 million 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. lines on June June: see month. 29. 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. 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. Local Exchange (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. ) operating results were in line with previously announced 2001 guidance targets of $1.55 billion in annual revenue, $800 million in annual 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 before 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). and acquisition 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 expenses, and annual capital expenditures of $400 million. Completed the replacement of the $6.15 billion, 364-day credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities with $4.5 billion of debt and committed facilities Committed Facility A credit facility whereby terms and conditions are clearly defined by the lending institution and imposed upon the borrowing company. Notes: In committed facilities, the borrowing companies must meet specific requirements set forth by the lending with a weighted average maturity of 10-1/2 years 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 the issuance of approximately $750 million of its Common Stock and equity-linked securities. Began de-leveraging by reducing net debt and long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. liabilities (net of cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments) by $340 million. Completed the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of the Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. Gas division for $363.4
million on July July: see month. 2, 2001 and recognized a $139.3 million pre-tax pre-tax adj → anterior al impuestopre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain. Citizens recorded restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. in the quarter related to its previously announced consolidation of operations support functions of Citizens and Frontier. The charges include a $13.0 million charge to 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. and $8.8 million to depreciation. Results include a $43.6 million non-cash 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. charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the 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 FAS No. 71. 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: third-quarter revenue 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 , which includes revenue from the company's telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , electric and gas operations, was $661.1 million, an increase of 46 percent from the third quarter of 2000. For the nine months ended September 30, 2001, consolidated revenue from continuing operations was $1,791.1 million, an increase of 36 percent from the same period in 2000. Third quarter 2001 EBITDA from continuing operations totaled $251.9 million, an 82 percent increase over third quarter 2000 EBITDA of $138.3 million. For the nine months ended September 30, 2001, EBITDA from continuing operating operations was $620.4 million, an increase of 58 percent from the comparable period in 2000. Consolidated net loss for the third quarter of 2001 was $.4 million, compared to net income of $1.5 million for the same period in 2000. For the nine months ended September 30, 2001, net income was $18.6 million compared to $11.8 million for the corresponding period in 2000. The current and year-ago quarters include EBITDA of $237.6 million and $111.0 million, respectively, from the company's ILEC operations. Third quarter 2001 EBITDA loss from the company's 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. operation was $2.1 million compared to $4.8 million in EBITDA for the comparable period in 2000. The current quarter also includes $15.9 million in EBITDA from the company's 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. operations, compared to $22.3 million for the same period 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, which was sold on July 2, 2001 for $363.4 million, resulting in a pre-tax gain of $139.3 million. Citizens' results for the third quarter of 2001 include a $43.6 million non-cash after-tax charge relating to the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of FAS No. 71. Citizens has historically applied FAS No. 71 because its ILEC properties were predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. regulated 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. following a cost of service/rate of return approach. Beginning in the third quarter of 2001, these properties no longer met the criteria criteria (krītēr´ē  ),n. for application of FAS No. 71 due to the continuing process of deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. and the introduction of competition to our existing rural local exchange telephone properties, and our expectation that these trends will continue for all Citizens' properties. Restructuring expense of $13.0 million for the three and nine months ended September 30, 2001 is related to Citizens' previously announced plan to close 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. The restructuring resulted in the reduction of 749 employees. These expenses primarily consist 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 $3.1 million through the first quarter of 2002. Telecommunications - ILEC The current quarter is the first full quarter reflecting the acquisition of Frontier Corp. on June 29, 2001. Access lines at the end of the third quarter of 2001 totaled approximately 2.5 million and include approximately 1,229,000 access lines acquired since September 30, 2000. ILEC revenue for the third quarter of 2001 was $507.2 million, compared to $246.8 million for the same period in 2000. Acquisitions accounted for $245.5 million of the increase. Excluding acquisitions, revenue grew by 6 percent, led by access line growth of 3 percent. A 26 percent increase in the third quarter of 2001 in data and long-distance long-dis·tance adj. 1. Covering a long distance: a long-distance runner; operating under long-distance supervision. 2. revenue, excluding acquisitions, reflects Citizens' continuing efforts to provide a more comprehensive set of services to its customers. Revenue for the nine months ended September 30, 2001 from the ILEC was $1,083.3 million, compared to $700.5 million for the same period in 2000 for a 55 percent increase year-over-year. Acquisitions accounted for $350.3 million of this increase. ILEC EBITDA for the third quarter was $237.6 million, compared to $111.0 million in the same period of 2000. Third-quarter ILEC EBITDA results were affected by restructuring charges of $13.0 million and $5.1 million related to acquisition assimilation expense. Absent these expenses, EBITDA for the third quarter of 2001 would have been $255.7 million, compared to $123.5 million for the same period in 2000. The ILEC EBITDA margin for the third quarter of 2001, after restructuring and acquisition assimilation expense, was 50.4 percent, compared to 50.0 percent for the same period in 2000, reflecting the lower margins at the recently acquired Frontier properties as well as the current expenses of operating and consolidating the Citizens and Frontier operations. The current quarter also includes an $8.8 million increase in depreciation due to the reduction in useful life of certain assets which will be phased out as a result of the restructuring. Operating results through the second quarter of 2002 will reflect the current expenses of two operations centers The facility or location on an installation, base, or facility used by the commander to command, control, and coordinate all crisis activities. See also base defense operations center; command center. until the consolidation and integration is completed during 2002. The accelerated level of depreciation expense will also continue over the next three quarters. ILEC EBITDA for the nine months ended September 30, 2001 was $535.7 million, up 72 percent from $312.1 million in the prior year period, resulting in an EBITDA margin of 49 percent. ILEC EBITDA for the nine months ended September 30, 2001 includes the above-described restructuring charges and assimilation expense related to acquisitions of telephone access lines. Absent these restructuring charges and assimilation expense, continuing ILEC EBITDA was $566.3 million, a 68 percent increase over the prior year's corresponding period, for an EBITDA margin of 52 percent for the nine months ended September 30, 2001 compared to 48 percent for the same period of 2000. ILEC Financings During the third quarter of 2001, the company completed the long-term financing Long-term financing Liabilities repayable in more than one year plus equity. of Citizens' local exchange access line acquisitions. The company sold $1.75 billion in long-term debt securities in August and completed bank financings of $1 billion of committed five-year revolving and 10-year-term debt during October October: see month. . These financings provide excess liquidity and financial flexibility. Since May 2001, Citizens has issued $4.5 billion of debt and committed bank facilities with a weighted average maturity of 10 1/2 years in conjunction with the issuance of approximately $750 million of Common Stock and equity-linked securities. In the third quarter of 2001, Citizens began de-leveraging by reducing net debt and long-term liabilities Long-Term Liabilities Recorded on the balance sheet, a company's liabilities for leases, bond repayments and other items due in more than one year. Notes: A company's long-term liabilities are accounted for by its debt obligations to other parties which last longer than (net of cash and short-term investments) by $340 million. 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. ) Third quarter Electric Lightwave, Inc. (ELI Eli (ē`lī), in the Bible, high priest and judge of Israel, teacher of the boy Samuel. 1. (language) ELI - An early system on the IBM 705 and IBM 650. [Listed in CACM 2(5):16 (May 1959)]. 2. ) revenue totaled $53.3 million, compared to $63.6 million for the same period in 2000. Although revenue for the quarter was down 16 percent from the corresponding period in 2000, the Network Services component of revenue grew 21 percent due to sales of additional circuits to new and existing customers as ELI concentrated upon its targeted customer base. The revenue decrease was primarily due to reduced rates for 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, the non-renewal of a take-or-pay contract with a major customer, and reduced demand from ISPs and other carriers for Internet-related traffic. ELI revenue for the nine months ended September 30, 2001 was $176.3 million, compared to $181.0 million for the same period in 2000. ELI's gross margin during the third quarter of 2001 was 68 percent. ELI's third-quarter 2001 EBITDA loss of was $2.1 million was impacted by a workforce reduction with an associated expense of $1.4 million, and lower-than-anticipated revenue for the quarter. ELI EBITDA for the third quarter of 2000 was $4.8 million. ELI EBITDA for the nine months ended September 30, 2001 was $5.2 million, compared to a $3.3 million EBITDA loss for the same period in 2000. ELI'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 that were applicable on September 27, 2001. On that date Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. , Inc. implemented a moratorium A suspension of activity or an authorized period of delay or waiting. A moratorium is sometimes agreed upon by the interested parties, or it may be authorized or imposed by operation of law. until January January: see month. 2, 2002, at which time compliance with the minimum requirements for listing on the Nasdaq National and SmallCap Markets will start anew a·new adv. 1. Once more; again. 2. In a new and different way, form, or manner. [Middle English : a, of (from Old English of; see of) + new . If ELI's Class A Common Stock does not meet the requirements of the National Market System for 30 consecutive days, and is unable to regain compliance within 90 days, 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 In September, the California Public Utilities Commission The California Public Utilities Commission (CPUC; also often commonly referred to as simply the PUC) [1] is a state Public Utilities Commission which regulates privately-owned utilities in the state of California, including electric power, (PUC (Public Utility Commission) A regulatory body in every state in the U.S. that governs public utilities within its jurisdiction such as electricity, gas, oil, sewer, water, transportation and telephone service. Some states call it the Public Service Commission (PSC). ) approved the sale of Citizens' water operations to American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Water Works. The proposed $835 million sale is still pending an appeal of the PUC order. The company currently is working toward a closing before year end. Gas and Electric third-quarter revenues totaled $101.7 million versus $143.1 million for the prior year's quarter. Public Services EBITDA was $15.9 million for the third quarter of 2001, compared to $22.3 million for the same period in 2000, primarily due to the sale of Louisiana Gas. Revenues for the nine months ended September 30, 2001 totaled $534.5 million versus $440.6 million for the same period in 2000. For the nine months ended September 30, 2001, Public Services EBITDA was $77.4 million compared to $84.1 million for the same period of 2000. Guidance for the ILEC for the year ended 2001 is reaffirmed at $1.55 billion in annual revenue, $800 million in annual EBITDA before restructuring and acquisition assimilation expenses, and annual capital expenditures of $400 million. For Electric Lightwave, 2001 guidance is being lowered to $228 million in revenue, $10 million in EBITDA, and capital expenditures of $55 million. About Citizens Communications Citizens Communications serves approximately 2.5 million access lines in 24 states and is acquiring an additional 70,000 access lines. It owns 85 percent of Electric Lightwave, Inc. (NASDAQ: ELIX). More information on Citizens may be found at www.czn.net 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 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. 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 . TABLES FOLLOW
Citizens Communications Company
Consolidated Financial Data
(unaudited)
For the quarter For the nine months
ended ended
September 30, September 30,
--------------------------------------------
--------------------------------------------
(Amounts in thousands - % %
except per-share amounts) 2001 2000 Change 2001 2000 Change
--------------------------------------------
--------------------------------------------
Income Statement Data
Continuing operations(1)
Revenue $661,121 $452,710 46% $1,791,144 $1,320,019 36%
Cost of Services 123,214 114,497 8% 477,107 338,839 41%
Depreciation and
amortization 193,662 95,859 102% 413,734 278,483 49%
Other operating
expenses 267,892 187,373 43% 662,972 563,427 18%
Restructuring expenses 13,002 - 100% 13,002 - 100%
Acquisition assimilation
expense 5,119 12,539 -59% 17,665 24,130 -27%
Operating income 58,232 42,442 37% 206,664 115,140 79%
Investment and other
income, net(2) 3,070 5,096 -40% 16,495 27,135 -39%
Gain on sale of assets 139,304 - 100% 139,304 - 100%
Interest expense 123,452 49,559 149% 258,033 128,899 100%
Income tax expense 39,610 (202)19709% 49,183 5,096 865%
Convertible preferred
dividends 1,553 1,553 - 4,658 4,658 -
Income (loss) from
continuing operations 35,991 (3,372)1167% 50,589 3,622 1297%
Income from discontinued
operations,
net of tax 7,199 4,838 49% 11,675 8,182 43%
Extraordinary expense-
discontinuation of
Statement of Financial
Accounting Standards
No. 71, net of tax 43,631 - 100% 43,631 - 100%
Net income (loss) (441) 1,466 -130% 18,633 11,804 58%
Carrying cost of equity
forward contracts 1,003 - 100% 13,650 - 100%
Available to common
shareholders (1,444) 1,466 -198% 4,983 11,804 -58%
EBITDA and Capital Expenditure
Data(3)
EBITDA from continuing
operations $251,894 $138,301 82% $620,398 $393,623 58%
EBITDA from
discontinued
operations 20,043 14,422 39% 42,052 33,811 24%
Total Company
EBITDA 271,937 152,723 78% 662,450 427,434 55%
EBITDA from continuing
operations before
restructuring
and acquisition
assimilation
expenses 270,015 150,840 79% 651,065 417,753 56%
Cash capital
expenditures
from continuing
operations 115,768 97,561 19% 299,861 349,866 -14%
Cash capital
expenditures
from assets
held for sale 16,918 19,720 -14% 50,619 59,475 -15%
Cash capital
expenditures
from discontinued
operations 7,823 34,596 -77% 20,716 69,072 -70%
Total Company cash
capital
expenditures 140,509 151,877 -7% 371,196 478,413 -22%
Balance Sheet Data
Cash and
investments $297,542 $418,075 -29%
Total assets 10,385,131 6,519,811 59%
Net plant
(continuing operations) 4,537,291 3,255,120 39%
Assets held for sale 1,093,939 1,129,055 -3%
Assets of discontinued operations 743,238 638,891 16%
Long-term debt (continuing operations) 6,243,591 2,925,680 113%
Equity 1,986,136 1,849,104 7%
Shares of common stock outstanding 280,036 261,820 7%
Weighted average
shares
outstanding 285,615 260,309 10% 271,346 260,046 4%
Per-Share Data(4)
Available to
common shareholders
from continuing
operations $0.12 $(0.01) 1026% $0.14 $0.01 905%
Available to
common shareholders
per common share $(0.01) $0.01 -190% $00.02 $0.05 -60%
EBITDA per share
from continuing
operations 0.88 0.53 66% 2.29 1.51 51%
EBITDA per
share from
discontinued
operations 0.07 0.06 27% 0.15 0.13 19%
Total Company
EBITDA per share 0.95 0.59 62% 2.44 1.64 49%
Book value per share 7.32 7.11 3%
Other Financial Data
Long-term debt to
long-term debt
and equity 76% 61%
Common equity market
capitalization
(in billions) $2.63 $3.50
Equity market capitalization
(in billions) $2.81 $3.72
Market capitalization
(in billions)(5) $9.05 $6.65
(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 are reporting our water and wastewater businesses as
discontinued operations.
Prior year has been restated to conform to current presentation.
Continuing operations reflect the elimination of intercompany
transactions (see segment footnote in the SEC Form 10-Q).
(2) Includes $12,222 of minority interest for the nine months ended
9/30/2000.
(3) EBITDA is operating income plus depreciation and amortization.
(4) Calculated based on weighted average shares outstanding.
(5) Equity market capitalization plus long-term debt.
Citizens Communications Company
Financial and Operating Data by Service
For the quarter For the nine months
ended ended
September 30, September 30,
--------------------------------------------------
--------------------------------------------------
(Dollars in
thousands, except % %
operating data) 2001 2000 Change 2001 2000 Change
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-------------------------------------------------
ILEC
Select Income
Statement Data
Revenue
Network access
services $189,034 $114,725 65% $461,549 $330,018 40%
Local network
services 194,398 83,633 132% 390,802 231,557 69%
Long distance and
data services 71,860 26,422 172% 135,144 75,404 79%
Directory services 25,253 9,376 169% 46,942 27,299 72%
Other 26,657 12,611 111% 48,898 36,197 35%
Total revenue 507,202 246,767 106% 1,083,335 700,475 55%
Network access
expense 45,846 16,723 174% 80,994 51,372 58%
Depreciation and
amortization 173,014 65,857 163% 347,703 195,628 78%
Other operating
expenses 205,619 106,542 93% 436,014 312,883 39%
Restructuring
expenses(1) 13,002 - 100% 13,002 - 100%
Acquisition assimilation
expense(2) 5,119 12,539 -59% 17,665 24,130 -27%
Total expense 442,600 201,661 119% 895,378 584,013 53%
Operating income 64,602 45,106 43% 187,957 116,462 61%
EBITDA and Capital
Expenditure Data
EBITDA(3) $237,616 $110,963 114% $535,660 $312,090 72%
EBITDA margin(4) 47% 45% 4% 49% 45% 11%
EBITDA before
restructuring and
acquisition assimilation
expenses 255,737 123,502 107% 566,327 336,220 68%
EBITDA margin before
acquisition
assimilation
expenses 50% 50% 1% 52% 48% 9%
Cash capital
expenditures 107,166 76,912 39% 255,955 259,002 -1%
Balance Sheet Data
Total assets $7,067,649 $3,038,634 133%
Net plant 3,626,720 2,339,053 55%
Operating Data
Access Lines:(4)
Embedded properties
excluding acquisitions 1,261,406 1,223,876 3%
Acquired properties 1,229,058 - 100%
Total Access lines 2,490,464 1,223,876 103%
Switched access minutes of use
(in millions)(5)
Excluding
acquisitions 1,676 1,454 15% 5,037 4,157 21%
Acquisitions 1,426 - 100% 1,817 - 100%
Total MOU 3,102 1,454 113% 6,854 4,157 65%
Employees 7,759 4,193 85%
(1) Represents expenses associated with our plan to close our
operations support center in Plano, Texas by April 2002.
(2) Represents expenses associated with the completed and pending
acquisitions.
(3) EBITDA is operating income plus depreciation and amortization.
(4) EBITDA divided by total revenue.
(5) Acquisitions represent minutes of use from entities acquired
after September 30, 2000.
Citizens Communications Company
Financial and Operating Data by Service
For the quarter For the nine months
ended ended
September 30, September 30,
---------------------------------------------
---------------------------------------------
(Dollars in thousands, % %
except operating data) 2001 2000 Change 2001 2000 Change
---------------------------------------------
---------------------------------------------
Electric Lightwave, Inc.
Select Income Statement Data
Revenue
Network services $26,077 $21,627 21% $77,966 $54,804 42%
Local telephone
services 14,450 25,187 -43% 58,114 75,412 -23%
Long distance services 3,131 3,728 -16% 9,314 12,590 -26%
Data services 9,672 13,068 -26% 30,927 38,202 -19%
Total revenue 53,330 63,610 -16% 176,321 181,008 -3%
Network access expense 17,232 17,821 -3% 51,014 56,811 -10%
Gross margin 36,098 45,789 -21% 125,307 124,197 1%
Depreciation and
amortization 19,919 16,306 22% 58,647 43,782 34%
Other operating
expenses 38,221 41,013 -7% 120,073 127,521 -6%
Total expense 75,372 75,140 0% 229,734 228,114 1%
Operating loss (22,042) (11,530) -91% (53,413) (47,106) -13%
EBITDA and Capital
Expenditure Data
EBITDA(1) $(2,123) $4,776 -144% $5,234 $(3,324) 257%
Cash capital
expenditures(2) 8,602 20,649 -58% 43,906 90,864 -52%
Balance Sheet Data
Total assets $923,476 $906,280 2%
Gross plant 1,029,724 962,454 7%
Operating Data
Access Line Equivalents 172,372 203,911 -15%
Route miles 6,737 5,921 14%
Fiber miles 353,785 297,208 19%
Customers 2,245 2,915 -23%
Buildings connected 860 850 1%
Employees 928 1,156 -20%
Revenue per employee $57,468 $55,026 4% $190,001 $156,581 21%
Reciprocal compensation
received
(in thousands) $2,697 $9,202 -71% $18,422 $29,228 -37%
(1) EBITDA is operating income plus depreciation and amortization.
(2) Excludes capitalized leases.
Citizens Communications Company
Financial and Operating Data by Service
For the quarter For the nine months
ended ended
September 30, September 30,
---------------------------------------------------
---------------------------------------------------
(Dollars in thousands,
except operating % %
data) 2001 2000 Change 2001 2000 Change
---------------------------------------------------
---------------------------------------------------
Gas Sector(1)
Select Income Statement Data
Revenue
Residential
distribution $11,069 $28,112 -61% $175,858 $117,534 50%
Commercial
distribution 19,718 26,897 -27% 113,272 94,080 20%
Industrial
distribution 6,193 19,336 -68% 60,240 44,038 37%
Total
distribution 36,980 74,345 -50% 349,370 255,652 37%
Other 737 5,987 -88% 11,017 15,101 -27%
Total revenue 37,717 80,332 -53% 360,387 270,753 33%
Gas purchased 24,988 48,182 -48% 252,065 148,238 70%
Gross margin 12,729 32,150 -60% 108,322 122,515 -12%
Depreciation and
amortization(2) 152 6,707 -98% 457 19,076 -98%
Other operating
expenses 8,860 24,233 -63% 65,652 79,279 -17%
Total expense 34,000 79,122 -57% 318,174 246,593 29%
Operating income 3,717 1,210 207% 42,213 24,160 75%
EBITDA and Capital
Expenditure Data
EBITDA(3) $3,869 $7,917 -51% $42,670 $43,236 -1%
Cash capital
expenditures 8,035 12,305 -35% 26,189 36,043 -27%
Balance Sheet Data
Assets held
for sale $441,089 $598,048 -26%
Net plant 354,313 514,908 -31%
Operating Data
Customers 200,062 467,870 -57%
Employees 533 989 -46%
Customers per employee 375 473 -21%
Gross margin
(net revenue)
per employee $23,882 $32,508 -27% $203,231 $123,878 64%
Billion Cubic Feet
of gas
throughput
(BCF) 3.1 13.2 -77% 40.7 50.9 -20%
(1) Our Louisiana Gas operations were disposed of by sale on July
2, 2001. The sale of this operation 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.
Citizens Communications Company
Financial and Operating Data by Service
For the quarter For the nine months
ended ended
September 30, September 30,
-----------------------------------------------
-----------------------------------------------
(Dollars in thousands, % %
except operating data) 2001 2000 Change 2001 2000 Change
----------------------------------------------
----------------------------------------------
Electric Sector
Select Income Statement Data
Revenue
Residential
distribution $28,291 $28,227 0% $74,355 $74,276 0%
Commercial
distribution 18,691 18,666 0% 50,125 50,233 0%
Industrial
distribution 12,668 13,168 -4% 37,942 36,841 3%
Total distribution 59,650 60,061 -1% 162,422 161,350 1%
Other 4,303 2,709 59% 11,692 8,529 37%
Total revenue 63,953 62,770 2% 174,114 169,879 2%
Electric energy and
fuel oil
purchased 36,149 32,540 11% 95,804 84,514 13%
Gross margin 27,804 30,230 -8% 78,310 85,365 -8%
Depreciation and
amortization(1) 335 6,729 -95% 6,135 19,806 -69%
Other operating
expenses 15,821 15,816 0% 43,568 44,486 -2%
Total expense 52,305 55,085 -5% 145,507 148,806 -2%
Operating income 11,648 7,685 52% 28,607 21,073 36%
EBITDA and Capital
Expenditure Data
EBITDA(2) $11,983 $14,414 -17% $34,742 $40,879 -15%
Cash capital
expenditures 8,883 7,415 20% 24,430 23,432 4%
Balance Sheet Data
Assets held for sale $652,850 $531,007 23%
Net plant 440,143 417,561 5%
Operating Data
Customers 132,129 123,572 7%
Employees 340 335 1%
Customers per employee 389 369 5%
Gross margin
(net revenue) per
employee $81,776 $90,239 -9% $230,324 $254,821 -10%
Megawatt hours sold 582,441 578,505 1% 1,520,245 1,476,974 3%
Megawatt hours
generated 104,755 92,865 13% 315,770 296,154 7%
Megawatt hours
purchased 530,605 527,151 1% 1,334,788 1,327,966 1%
(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.
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