Rye, NY – July 19, 2017 – LICT Corporation (“LICT”; OTC Pink®: LICT) reports results for the second quarter ended June 30, 2017.

SECOND QUARTER RESULTS – In 2017, second quarter revenues increased by $4.0 million, or 18.0%, to $26.6 million compared to the corresponding quarter in 2016. Non-regulated revenues surged 10.7%, to $11.5 million from the prior year’s $10.4 million due to increased broadband and competitive local exchange carrier (“CLEC”) revenues. Regulated revenues, including A-CAM, grew 24.2%, to $15.1 million in the second quarter of 2017 from the prior year’s $12.1 million.

EBITDA before corporate costs was $12.2 million as compared to $9.1 million in the previous year’s second quarter, a 34.6% increase.  Non-regulated EBITDA, including affiliate distributions, increased to $4.9 million, from $4.7 million while regulated EBITDA increased to $7.3 million, from $4.4 million.

FULL YEAR RESULTS – Reflecting A-CAM, (Alternative Connect America Cost Model), the company is currently estimating that revenues in 2017 will be approximately $106 million and EBITDA, prior to corporate costs but including cash received from our equity affiliates, will be approximately $49 million, the same as the previous estimates.

EARNINGS PER SHARE – Diluted earnings during the second quarter were $176 per share in 2017 versus $85 per share in 2016.  Shares outstanding at June 30, 2017, were 21,168 versus 21,282 at December 31, 2016.

CAPITAL EXPENDITURES AND DEPRECIATION EXPENSE – In 2017, capital expenditures were $7.6 million for the first half of 2017, of which $3.8 million was for non-regulated activities and $3.7 million, for regulated activities. We expect capital expense in the $18 million range for 2017. This reflects our commitment to provide the communities we serve with enhanced communication capabilities and higher broadband capacities, using A-CAM support. We are accomplishing this through our continued investment in the improvement of our products and network infrastructure, particularly the increased construction of fiber optic facilities for our broadband networks. Through upgraded electronics and fiber extensions deeper into our networks, we have improved the speed, the capacity and the reliability of our broadband service offerings. At June 30, 2017, LICT operations were utilizing 4,272 miles of fiber optic cable, 11,236 miles of copper cable, and 588 miles of coaxial cable.

SHAREHOLDER DESIGNATED CHARITABLE CONTRIBUTION PROGRAM —  On June 21, 2017 we announced we were continuing our shareholder Charitable Contribution Program in 2017 for all registered shareholders. The program was originally adopted in 2016 and all registered shareholders as of July 21, 2017, will be eligible to designate charities to which the company will make a donation of $100 per share on behalf of the shareholder. During 2016, we conducted a similar Shareholder Designated Contribution Program, also at $100 per share and our charitable contributions totaled $991,000, or $699,000 after tax.

BALANCE SHEET – Our net debt was $19.2 million at June 30, 2017, as compared to $22.6 million on December 31, 2016.

REFINANCING THE COMPANY – The Board of Directors and management have implemented measures which have improved liquidity and reduced the Company’s debt position.  At this time, the Board is considering whether the Company should acquire additional leverage which would enable us to explore broader opportunities both within and outside our current industry. In April 2017, we increased our line of credit with CoBank, N.A from $30 million to $50 million and extended it for an additional two years, from December 2017 to December 2019.

SHARE REPURCHASES – During the six months ended June 30, 2017, the Company repurchased 149 shares for $1.3 million at an average price of $8,503 per share. Also during 2017, the company issued 35 shares as a management incentive measure. As of June 30, 2017, 21,168 shares were outstanding.

FCC SPECTRUM AUCTIONS – In this auction, LICT Wireless acquired two 10 MHz licenses in the lower peninsula of Michigan, covering the communities of Traverse City and Alpena, which are areas to which the company is expanding service. Total outlay for the licenses was $686,000 and the company received its excess deposit of $10.3 million in April 2017.

OPERATING STATISTICS – As of June 30, 2017, the Company’s DSL penetration in its franchised telephone service territories, based on its total RLEC voice lines, was 80.7%, compared to 78.5% as of December 31, 2016. Our summary operating statistics are as follows (note, some of the increase in ILEC voice lines represents seasonal activity):

  Dec. 31, Percent
 June 30,IncreaseIncrease
Broadband lines28,631 26,039 2,5929.9%31,78430,6471,1373.7%
Voice Lines    
  Total33,05532,923132 0.4%
Video Subscribers6,1366,219(83)(1.3%)
Revenue Generating Units70,97569,7891,1861.7%


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 anticipated financial results, 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,  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.  Such forward-looking 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 OTC Pink® under the symbol LICT.  For further information visit our website at

Contact:         Robert E. Dolan

Executive Vice President and Chief Financial Officer


Release:         17-8

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