Rye, NY – December 24, 2014 – LICT Corporation (“LICT”; OTC Pink ®: LICT) announces the sale of its DFT Communications Corporation (“DFT”) subsidiary to DFT’s founding family, The Maytums, of Fredonia, NY.
The Maytum family founded the Dunkirk & Fredonia Telephone Company in 1898.LICT had acquired DFT from the Maytums in 1996. DFT provides telecommunications services in western New York State, principally through its two local telephone companies serving the Dunkirk/Fredonia and Cassadaga areas. DFT also operates an Internet access company and an alarm/security company.
LICT announced the signing of the definitive agreement for this transaction on May 20, 2014, and the New York Public Service Commission (“NYPSC”) approved the transaction on December 12, 2014.
In its Order approving this transaction, the NYPSC stated that the Maytum family’s local management would be “in tune [with] and responsive to the needs of the local communities” involved. The NYPSC also noted the many “consecutive years of service quality commendations” it has issued to both of the DFT telephone companies.
For the nine months ended September 30, 2014, DFT contributed $11.8 million to LICT’s total revenues of $76 million, or 15.5%, and $2.3 million to LICT’s EBITDA from operations of $30.7 million, or 8.3%. Detailed financial terms are not being released at this time, but as a result of the transaction LICT will receive cash and notes as well as 20% in Brick Skirt’s equity. As of September 30, 2014, LICT had approximately $11.0 million in cash and $67.0 million in total debt resulting in net debt of $56.0 million.
Pro-Forma for the sale of DFT Communications, including estimated tax payments, net debt would be estimated at $39.8 million. This amount does not include any funding requirements for the ongoing Auction 97 – Advanced Wireless Service (AWS-3) Licenses in which a subsidiary of LICT is participating.
Mark Maytum, speaking for the purchasers, said “We look forward to growing our companies’ businesses and serving our community, throughout western New York. We also look forward to continuing the productive partnership we have had with LICT for the past 18 years.”
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This release contains certain forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation future financial results, anticipated financing, capital expenditures and corporate transactions. It should be recognized that such information is based upon certain assumptions, projections and forecasts, including without limitation business conditions and financial markets, regulatory and other approvals, and the cautionary statements set forth in documents filed by LICT on its website, www.lictcorp.com. As a result, there can be no assurance that any possible transactions will be accomplished or be successful or that financial targets will be met, and such information is subject to uncertainties, risks and inaccuracies, which could be material.
LICT Corporation is a holding company with subsidiaries in broadband and other telecommunications services that actively seeks acquisitions, principally in its existing business areas.
LICT Corporation is listed on the Pink Sheets® under the symbol LICT. Its World Wide Web address is: http://www.lictcorp.com.
Contact: Robert E. Dolan
Executive Vice President and Chief Financial Officer