LICT Corporation Reports Third Quarter 2017 Results

Rye, NY – October 16, 2017 – LICT Corporation (“LICT”; OTC Pink®: LICT) reports results for the third quarter ended September 30, 2017.

THIRD QUARTER RESULTS – In 2017, third quarter revenues increased by $3.7 million, or 16.2%, to $26.6 million compared to$22.9 million in 2016. Non-regulated revenues gained 9.4%, to $11.7 million from the prior year’s $10.7 million due to increased broadband and competitive local exchange carrier (“CLEC”) revenues. Regulated revenues, bolstered by A-CAM, jumped 22.2%, to $14.9 million in the third quarter of 2017 from the prior year’s $12.2 million.

EBITDA before corporate costs was $12.4 million as compared to $9.4 million in the previous year’s third quarter, a 31.1% increase.  Non-regulated EBITDA, including affiliate distributions, increased to $5.4 million, from $5.2 million while regulated EBITDA increased to $7.0 million, from $4.3 million.

FULL YEAR RESULTS – Reflecting A-CAM, (Alternative Connect America Cost Model), the company continues to estimate revenues in 2017 to be approximately $106 million and EBITDA, prior to corporate costs and charitable contributions but including cash received from our equity affiliates, will be approximately $49 million.

SHAREHOLDER DESIGNATED CHARITABLE CONTRIBUTION PROGRAM —  On June 21, 2017 we announced we were continuing our Shareholder Designated Charitable Contribution Program in 2017 for all registered shareholders. The program was originally adopted in 2016, and for 2017 all registered shareholders as of July 21, 2017, were eligible to designate charities to which the company would make a donation of $100 per share on behalf of the shareholder. During the third quarter of 2017, the Company made total charitable contributions of $1,139,000, or $740,000 after tax.  In the third quarter of 2016, we conducted a similar program, also at $100 per share and our charitable contributions totaled $991,000, or $699,000 after tax. We thank all for their participation in our giving back program.

EARNINGS PER SHARE – Diluted earnings during the third quarter, including charitable contributions of $35 per share in 2017 and $30 per share in 2016, surged by 105% to $167 per share in 2017 versus $81 per share in 2016.  Shares outstanding at September 30, 2017, were 20,804 versus 21,282 at December 31, 2016.

CAPITAL EXPENDITURES – In 2017, capital expenditures were $13.4 million for the first nine months of 2017, of which $6.5 million was for non-regulated activities and $6.9 million for regulated activities. In order to expand our non-regulated fiber initiatives, we are increasing our expected capital expenditures to a $21 million range for 2017, up from our previous estimate of $18 million. This increased capital, with ACAM support enables us to offer enhanced broadband speeds and increases the overall fiber route miles in our network. At September 30, 2017, LICT operations deployed 4,272 miles of fiber optic cable, 11,236 miles of copper cable, and 588 miles of coaxial cable.

LIQUIDITY EVENT FROM INVESTMENT IN SPECTRUM ACQUISITION COMPANY – On May 9, 2017 and September 19, 2017, LICT noted a liquidity event with regard to an investment in PTPMS Communications, LLC (“PTPMS”). By way of background, a subsidiary of LICT has a 49% limited liability company interest in PTPMS, which acquired 22 spectrum licenses at auction from the Federal Communications Commission (“FCC”).  In 2012, PTPMS sold all of its licenses to the predecessor-in-interest of a subsidiary of Straight Path Communications, Inc. (“Straight Path”). In that transaction, PTPMS received an interest of 20% in the net proceeds.  In May 2017, Straight Path announced that it had entered into a transaction to sell itself for gross proceeds of $3.1 billion. In public filings with the SEC relating to this transaction, Straight Path expressly recognized that PTPMS continues to hold a financial interest in PTPMS’ former licenses.

BALANCE SHEET – Our net debt was $21.1 million at September 30, 2017, as compared to $22.6 million on December 31, 2016. As background, LICT acquired $5.4 million of its shares through September 30, 2017.

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 evaluating opportunities both within and outside our current operations.

SHARE REPURCHASES – During the nine months ended September 30, 2017, the Company repurchased 513 shares for $5.4 million.  As of September 30, 2017, 20,804 shares were outstanding.

OPERATING STATISTICS – As of September 30, 2017, the Company’s DSL penetration in its franchised telephone service territories, based on its total RLEC voice lines, was 81.3%, compared to 78.5% as of December 31, 2016. Our summary operating statistics are as follows:

  Dec. 31, Percent
 Sept. 30,IncreaseIncrease
Broadband lines28,631 26,039 2,5929.9%31,50730,1971,3104.3%
Voice Lines    
  Total33,21032,923287 0.9%
Video Subscribers6,0206,219(199)(3.2%)
Revenue Generating Units70,73769,3391,3982.0%


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:         17-12

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