Integra Telecom Achieves Solid EBITDA Positive Status Company-Wide.Business Editors & High-Tech Writers PORTLAND, Ore.--(BUSINESS WIRE)--April 25, 2002 Business decision to invest in growth, combined with sound fiscal management delivers strong returns for community and company Integra Telecom Integra Telecom, Inc.[1] is a facilities-based, integrated communications carrier, dedicated to providing a better choice for businesses in eight western states. , a provider of local, long-distance and Internet services for small and midsize businesses, reports that it is solidly 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 positive. On a 2001 revenue increase of 59 percent to $66.2 million, the company became EBITDA positive in December of last year. Continued strong revenue growth has expanded EBITDA margins yielding four consecutive months, including all of first quarter 2002, as EBITDA positive. "Achieving this important milestone for four consecutive months provides both a testament to the dedication and commitment of our team, and terrific validation of our business model," said Dudley Slater, chief executive officer of Integra Telecom. "As a growth company we are right where we planned to be. This significant event occurred on schedule in the fourth quarter of 2001 and is the result of careful growth and execution of a sound business model." EBITDA is an accounting acronym meaning "earnings before interest, tax, depreciation and amortization." In lay terms, to be EBITDA positive means to have positive cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses . "As an investor, EBITDA is an important measure we continually evaluate for our portfolio companies. Clearly Integra's achievement in this area demonstrates a critical ability to balance growth with sound fiscal management," said George Morgan George Morgan may refer to:
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. Capital Investors, one of Integra's lead shareholders. Business decision to invest in growth pays off for company, customers, community Since its founding through 1999, when it raised substantial capital to expand its operations into new markets, the company has historically reported positive EBITDA results. As a locally based, on-net provider, the company incurs substantial up-front cost prior to generating any revenue when it expands into new geographic markets. In 1999, the company elected to invest more than $100 million in plant and facilities to meet the unique service needs of small and midsize businesses in four new states. This up-front investment is recovered incrementally over time, as Integra captures market share and serves a larger and larger base of customers. "Consistent sales growth, stable gross margins and a loyal customer base are key in a recurring revenue business like telecommunications," commented Jim Huesgen, president and chief financial officer of Integra Telecom. "It is gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. to report these results at a time when many in our industry are struggling as a result of excessive debt, unrealistic expansion plans, poor planning and a soft economy." New service and job creation has positive impact on many As a result of the company's investments in the markets that it serves, it has made services available to more than 2 million potential customer access line equivalents for small and midsize businesses, and created a total of more than 600 new jobs. Customers such as Walter J. Spafford, LCSW LCSW Licensed Clinical Social Worker , of Vancouver, Wash.-based Professional Management Services, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , choose Integra because of its focus on their specific needs, as well as the company's longevity. "It was important for our group to find a communication company that understands the needs of small business. Everyone at Integra has provided exceptional service from the start," says Spafford. "Integra clearly continues to improve on its 15-year track record, and we're convinced they'll be around for the long term." About Integra Telecom Integra Telecom is a facilities-based integrated communications carrier committed to providing a local, quality service alternative, offering on-net voice and data services to commercial and institutional customers through a single, user-friendly relationship. Integra's combined operations For the department of the British War Office during World War II, see . In the military, combined operations are operations conducted by forces of two or more allied nations acting together for the accomplishment of a single mission. See also
Which past endurance sting the tender cit. - Emerson. Group, and Shaw Ventures. Integra Telecom is a registered trademark of Integra Telecom Inc. |
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