Citizens Communications Reports Financial Results for the Third Quarter of 2000.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, 2000 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) today reported financial results for the quarter and nine months ended September September: see month. 30, 2000. Effective with the third quarter of 2000, the company has reclassified its gas segment as "Assets Held for Sale" and is no longer including them in the results of Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . After giving effect to the reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. described above, consolidated third quarter revenue was $389.9 million, an increase of 16 percent above 1999's third quarter consolidated revenue of $337.1 million. The reclassification of the company's gas segment accounted for $80.3 million and $65.6 million of third quarter 2000 and 1999 revenue, respectively. Consolidated earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Third quarter consolidated net income was $1.5 million or 1 cent per share, compared to consolidated net income of $11.9 million or 5 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. in the third quarter of 1999. Net income for the nine months ended September 30, 2000 was $11.8 million or 4 cents per share, compared to $74.3 million or 29 cents per share for the nine-month period in 1999. Net income for the year ago period included a $42.9 million gain (net of tax) on the sale of an investment. Compared to the prior year periods, net income for the quarter and nine months ended September 30, 2000 was affected by higher depreciation and amortization expense of $89.1 million and $258.7 million, respectively, as well as higher interest expense of $45.0 million and $116.3 million, respectively. The higher interest expense in both periods was primarily due to increased debt levels 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. . 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") Third quarter revenue from the company's ILEC Segment was $246.8 million, up 10 percent from the $223.7 million for the 1999 third quarter. Recently completed acquisitions of approximately 200,000 access lines accounted for $15.6 million or 68 percent of the increase. The remainder is a result of internal growth. ILEC Segment EBITDA for the third quarter was $111.0 million, up 18 percent from $94.2 million in the third quarter of 1999. Third quarter 2000 ILEC Segment EBITDA included $12.5 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 the pending acquisitions of telephone access lines. Absent this expense, EBITDA from the company's ILEC Segment increased to $123.5 million, or 31 percent over the prior year period, resulting in an EBITDA margin of 50 percent for the year 2000 third quarter compared to 42 percent in the third quarter of 1999. 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") Third quarter revenue from ELI-CLEC totaled $63.6 million compared to $48.6 million, an increase of 31 percent over the prior year third quarter. ELI-CLEC third quarter EBITDA was $4.8 million, a $13.7 million improvement over the $8.9 million EBITDA loss for the prior year's third quarter. Commenting on the results, Citizens' chairman and chief executive officer Leonard Leon·ard , Ray Charles Known as "Sugar Ray." Born 1956. American boxer who won the 1976 Olympic light welterweight title. He held five world titles as both a welterweight and middleweight between 1979 and 1987. Noun 1. Tow said, "We are extremely pleased with these results as they represent significant milestones for both Citizens and Electric Lightwave. Citizens has reached its interim target of a 50 percent EBITDA margin at its incumbent local exchange business, and Electric Lightwave has reported its first EBITDA positive quarter. We expect these upward trends to continue as we proceed with our transformation of Citizens into a growing, high-margin business." About Citizens Communications Citizens Communications serves 1.2 million access lines in 16 states. In 1999 and 2000, Citizens agreed to purchase over 2 million additional access lines in 19 states in transactions that began to close in June June: see month. of 2000. Citizens also owns 86 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. . 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 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
Consolidated Financial Data
(unaudited)
For the quarter ended For the nine months ended
September 30, September 30,
------------------------- --------------------------
% %
2000 1999 Change 2000 1999 Change
---- ---- ------ ---- ----- ------
(Amounts in
thousands
- except
per-share
amounts)
Income Statement
Data
Revenue from
continuing
operations(1) $389,941 $337,091 16% $1,150,140 $1,048,698 10%
Operating
income
from
continuing
operations(2) 34,757 18,543 87% 94,067 64,776 45%
Income from
discontinued
operations,
net of tax 6,683 8,272 -19% 13,672 13,459 2%
Net income(2) 1,467 11,906 -88% 11,804 31,389 -62%
EBITDA Data(3)
EBITDA from
continuing
operations
before
acquisition
assimilation
expenses $136,426 $ 88,258 55% $ 376,874 $ 267,041 41%
EBITDA from
continuing
operations 123,887 88,258 40% 352,744 267,041 32%
EBITDA from
discontinued
operations 28,837 29,960 -4% 74,691 71,045 5%
Total Company
EBITDA 152,724 118,218 29% 427,435 338,086 26%
Per Share
Data(4)
Basic net
income per
share of
common
stock(2) $ 0.01 $ 0.05 -80% $ 0.04 $ 0.12 -67%
EBITDA per share
from continuing
operations 0.47 0.34 38% 1.34 1.03 30%
EBITDA per share
from
discontinued
operations 0.11 0.11 0% 0.28 0.27 4%
Total Company
EBITDA per share 0.58 0.45 29% 1.62 1.30 25%
EBITDA per share
from continuing
operations
before
acquisition
assimilation
expenses 0.52 0.34 52% 1.43 1.03 39%
Weighted average
shares
outstanding 264,749 260,607 2% 263,725 260,118 1%
(1) Continuing operations are comprised of the company's
Telecommunications, its Competitive Local Exchange Carrier (Electric
Lightwave, Inc.) and the company's natural gas businesses. The company
still intends to sell the natural gas segment and is continuing to
actively pursue a buyer for those gas operations for which it does not
yet have signed agreements
The company is reporting its electric and water/wastewater
businesses as discontinued operations.
(2) The nine months ended September 30, 1999 excludes the gain on
sale of investment of $42.9 million (net of tax).
(3) Operating income plus depreciation and amortization.
(4) Calculated based on weighted average shares outstanding.
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