Citizens Communications Reports Financial Results for the Second Quarter of 2001.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)--Aug. 7, 2001 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 June June: see month. 30, 2001. Consolidated second-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 $505.7 million, an increase of 21 percent from the second quarter of 2000. For the six months ended June 30, 2001, consolidated revenue from continuing operations was $1.13 billion, an increase of 30 percent from the same period of 2000. Second quarter 2001 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 totaled $174.9 million, a 45 percent increase over 2000 second quarter EBITDA of $120.6 million. For the six months ended June 30, 2001, EBITDA from continuing operations totaled $368.5 million, a 44 percent increase over EBITDA of $255.3 million for the same period of 2000. The current and year-ago quarters include $153.8 million and $98.0 million of EBITDA, respectively, from the company's 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. and 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. operations. The current and year-ago quarters also include $10.0 million and $10.8 million of EBITDA, respectively, from the company's gas operations and $11.1 million and $11.8 million, respectively, of EBITDA from the company's electric operations. The current and year-ago six-month periods ended June 30 include $306.9 million and $193.5 million of EBITDA, respectively, from the company's ILEC and Electric Lightwave operations. The current and year-ago six-month periods ended June 30 also include $38.8 million and $35.3 million of EBITDA, respectively, from the company's gas operations and $22.8 million and $26.5 million, respectively, of EBITDA from the company's electric operations. Second quarter consolidated net loss was $0.6 million compared to consolidated net income of $3.0 million for the prior year quarter. For the six months ended June 30, 2001, consolidated net income was $19.1 million compared to consolidated net income of $10.3 million for the same period of the prior year. Telecommunications - 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) Revenue for the second quarter of 2001 from the company's ILEC operations was $288.8 million, up 27 percent from $227.4 million for the 2000 second quarter. Acquisitions completed in the second half of 2000 representing approximately 340,700 access lines accounted for $52.5 million of the increase. Revenue for the six months ended June 30, 2001 from the company's ILEC was $576.1 million, up 27 percent from $453.7 million for the same period in 2000. Acquisitions accounted for $100.6 million of the increase. ILEC EBITDA for the second quarter was $149.0 million, up 50 percent from $99.2 million in the prior year period, resulting in an EBITDA margin of 52 percent. Second quarter ILEC EBITDA results included $7.1 million of 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 expense related to acquisitions of telephone access lines that are pending. Absent this one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. expense, continuing ILEC EBITDA was $156.1 million, a 46 percent increase over the prior year's corresponding period, for an EBITDA margin of 54 percent for the 2001 second quarter compared to 47 percent in the second quarter of 2000. ILEC EBITDA for the six months ended June 30, 2001 was $298.0 million, up 48 percent from $201.1 million in the prior year period, resulting in an EBITDA margin of 52 percent. ILEC EBITDA results for the six months ended June 30, 2001 included $12.5 million of assimilation expense related to acquisitions of telephone access lines that are pending. Absent this one-time expense, continuing ILEC EBITDA was $310.6 million, a 46 percent increase over the prior year's corresponding period, for an EBITDA margin of 54 percent for the six months ended June 30, 2001 compared to 47 percent in the same period of 2000. 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 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. ) Second quarter ELI revenue totaled $60.4 million compared to $60.6 million for the prior year period. ELI revenue for the six months ended June 30, 2001 was $123.0 million, compared to $117.4 million for the same period in 2000. ELI second quarter EBITDA was $4.1 million, a $5.5 million improvement over the $1.4 million loss of the year ago second quarter. ELI EBITDA for the six months ended June 30, 2001 was $7.4 million, a $15.5 million improvement over the $8.1 million loss of the same period in 2000. The 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. has informed ELI that its Class A Common Stock failed to maintain a minimum bid price of $5.00 for 30 consecutive trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. and thus does not meet the minimum listing criteria of Nasdaq for shares listed on the National Market System. ELI has filed an application for its listing to be transferred to the Nasdaq SmallCap Market. As part of the application process, Citizens Communications has agreed to convert approximately 25.3 million shares of ELI's Class B Common Stock into the same number of shares of ELI's Class A Common Stock. Listing on Nasdaq's SmallCap Market requires that the market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. of ELI's Class A Common Stock be at least $35 million. 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. Gas and Electric second-quarter revenues totaled $157.6 million versus $131.3 million for the prior year quarter. Public Services EBITDA was $21.1 million, a decrease of 7 percent from the second quarter of 2000. Revenues for the six months ended June 30, 2001 totaled $432.8 million versus $297.5 million for the same period in the prior year. For the six months ended June 30, 2001, Public Services EBITDA was $61.6 million as compared to $61.8 million for the same period of 2000. Acquisitions and Divestitures Update On June 29, Citizens Communications completed the purchase from Global Crossing Ltd. of 1.1 million local exchange telephone access lines owned by Frontier Telephone. The purchase price was $3.4 billion. On July July: see month. 2, 2001, Citizens Communications completed the sale of its Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. Gas operations to Atmos Energy Atmos Energy (NYSE: ATO), headquartered in Dallas, Texas, is the largest distributor of natural gas in the United States, serving 3.1 million customers nationwide. Atmos acquired TXU's natural gas and pipeline holdings in 2004. Corporation for approximately
$363.4 million in cash. On July 20, 2001, Citizens Communications
notified Qwest Communications
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 $11 million. About Citizens Communications Citizens Communications serves 2.5 million access lines in 24 states and has contracted to acquire an additional 70,000 access lines. Citizens owns 85 percent of Electric Lightwave, Inc. (NASDAQ:ELIX), a facilities-based, integrated communications provider offering a broad range of services to telecommunications-intensive businesses in the West. More information about Citizens can 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 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 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 by 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
Financial and Operating Data by Service
(unaudited)
For the quarter ended
June 30,
(Amounts in thousands - %
except per-share amounts) 2001 2000 Change
Income Statement
Data (1)
Revenue from continuing
operations $ 505,741 $ 418,607 21%
Operating income from
continuing operations 60,549 33,966 78%
Income from discontinued
operations, net of tax 3,367 2,663 26%
Net income (649) 3,012 -122%
Carrying cost of equity
forward contracts 12,647 - 100%
Net income (loss)
available to common
shareholders (13,296) 3,012 -541%
EBITDA Data (2)
EBITDA from continuing
operations before
acquisition assimilation
expenses $181,977 $ 128,226 42%
EBITDA from continuing
operations 174,915 120,609 45%
EBITDA from discontinued
operations 13,532 11,418 19%
Total Company EBITDA 188,447 132,027 43%
Per Share Data
Net income available to
common shareholders
per common share $ (0.05) $ 0.01 -600%
EBITDA per share from
continuing operations 0.65 0.46 41%
EBITDA per share from
discontinued operations 0.05 0.04 25%
Total Company EBITDA
per share 0.70 0.51 37%
EBITDA per share from
continuing operations
before acquisition
assimilation expenses 0.67 0.49 37%
Shares of common stock
outstanding 289,038 261,901 10%
Weighted average shares
outstanding 269,879 261,215 3%
For the six months ended
June 30,
(Amounts in thousands - %
except per-share amounts) 2001 2000 Change
Income Statement Data (1)
Revenue from continuing
operations $ 1,130,023 $ 867,309 30%
Operating income from
continuing operations 148,432 72,698 104%
Income from discontinued
operations, net of tax 4,476 3,344 34%
Net income 19,074 10,338 85%
Carrying cost of equity
forward contracts 12,647 - 100%
Net income (loss)
available to common
shareholders 6,427 10,338 -38%
EBITDA Data (2)
EBITDA from continuing
operations before
acquisition assimilation
expenses $ 381,050 $ 266,913 43%
EBITDA from continuing
operations 368,504 255,322 44%
EBITDA from discontinued
operations 22,009 19,389 14%
Total Company EBITDA 390,513 274,711 42%
Per Share Data
Net income available to
common shareholders
per common share $ 0.02 $ 0.04 -50%
EBITDA per share from
continuing operations 1.38 0.98 41%
EBITDA per share from
discontinued operations 0.08 0.07 14%
Total Company EBITDA
per share 1.46 1.05 39%
EBITDA per share from
continuing operations
before acquisition
assimilation expenses 1.43 1.02 40%
Shares of common stock
outstanding 289,038 261,901 10%
Weighted average shares
outstanding 266,898 261,426 2%
(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 on our balance sheet.
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) EBITDA is operating income plus depreciation and amortization.
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion