Citizens Utilities Reports Financial Results for the Three Months Ended March 31, 1999.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)--May 12, 1999-- Revenue Increased 8% 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. 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. Grew 7% Free Cash Flow Increased 21% Citizens Utilities (NYSE NYSE See: New York Stock Exchange : CZN, CZNPr) today reported financial results for the quarter ended March 31, 1999. Consolidated revenues were $438 million, 8% higher than last year's first quarter. This increase was driven by strong revenue growth in the company's telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. businesses. Net income was $55 million, a 104% increase over the $27 million reported for the prior year quarter. First-quarter earnings per share were 21 cents, up 110% from 10 cents for the comparable prior year period. Net income and earnings per share included the following special items: a one time 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. gain of $42.9 million, or 17 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. , from the sale of Citizens' interest in Centennial Cellular Corp. (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 :CYCL CYCL - A frame language. ["Building Large Knowledge-Based Systems", Doug B. Lenat et al, A-W 1990]. ) and $4.5 million, or 2 cents loss per share, related to Year 2000 and separation costs. Commenting on the first-quarter results, Citizens' Chief Financial Officer Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. J. DeSantis said, "Our consolidated financial results continue to reflect our commitment to grow Electric Lightwave. We were pleased to have been able to more than offset Electric Lightwave's planned losses for the quarter with a substantial gain from the sale of our 16% interest in Centennial Cellular. "Citizens Communications revenues grew 11% over the comparable prior year period to $227 million, operating income increased 7% to $41 million, operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. grew 15% to $96 million, and free cash flow increased 21% to $57 million." DeSantis further stated, "These results were driven by increases in all major revenue components and improvements in 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 capital utilization. "Citizens Public Services' operating income of $31 million and operating cash flow of $45 million were only slightly below the prior year quarter despite a 4% decline in revenues, to $173 million, due to warmer-than-normal weather. The 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. sector successfully mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. this weather related-decline in revenue through improved operating efficiencies," DeSantis said. Regarding Electric Lightwave's impact on Citizens' results, DeSantis said, "Electric Lightwave's growth continues to accelerate and Citizens remains steadfast in its support of that growth. Revenues for the first quarter were $38 million, or 96% above the level of the prior year quarter. Electric Lightwave's owned and leased gross property, plant and equipment as of March 31, 1999 totaled $694 million, up 52% from one year ago." Electric Lightwave reported its first-quarter results on May 3. Citizens Utilities provides telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. and public services including gas distribution, electric distribution, water distribution and wastewater treatment services to approximately 1.8 million customers in 22 states. Citizens owns 83% of Electric Lightwave, Inc., a leading full-service, facilities-based integrated communications services provider. 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 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, the company's ability to obtain the necessary regulatory and tax approvals and complete the separation process, 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, weather conditions, changes in legal or regulatory policy, changes in legislation, the company's ability to identify future markets and successfully expand existing ones and the mix of products and services offered in the company's target markets. Although Citizens continues to pursue its separation plans, the increased opportunities that have recently become available to acquire telecommunications properties which fit within Citizens' acquisition criteria and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. planning require it to consider the possible advantages of other transactions, besides separation, to enhance security holder value. Therefore, Citizens is continuing to investigate and review opportunities for the acquisition of new telecommunications properties and the sale or other disposition of public services properties. 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 has no obligation 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 Utilities Company and Subsidiaries
Consolidated Financial Data
(unaudited)
For the quarter ended
March 31,
---------------------------
%
1999 1998 Change
--------------------------------
Income Statement Data
Revenues $ 437,514 $ 403,863 8%
Cost of services 107,682 108,032 0%
Depreciation and amortization 75,641 63,597 19%
Other operating expenses 211,449 175,556 20%
Operating income 42,742 56,678 -25%
Special items (1) (6,419) (400)
Operating income including
special items 36,323 56,278 -35%
Investment and other income 11,686 12,722 -8%
Interest expense 29,813 26,806 11%
Special items (2) 69,499 (2,334)
Income taxes 31,518 11,529 173%
Convertible preferred dividends 1,552 1,552 0%
Net income 54,625 26,779 104%
Per-Share Data (3)
Basic net income per share
of common stock $ 0.21 $ 0.10 110%
Weighted average shares
outstanding 259,517 258,890 0%
(1) Special items consist of Y2K and separation costs.
(2) In the first quarter of 1999, the company recorded a pre-tax gain
of $69.5 million ($42.9 million, net of tax) on the sale of
Centennial Cellular stock. In the first quarter of 1998, Electric
Lightwave, Inc. recorded a pre-tax charge to earnings of $2.8
million ($2.3 million net of tax) for the cumulative effect of a
change in accounting principle.
(3) Adjusted for subsequent stock dividends and stock splits.
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