• Revenues increased 6.6% to $32.0 from $30.0 million.
  • EBITDA from operations was $14.3 versus $13.7 million.
  • EPS from operations rose 17% to $378 from $324 per share.

Rye, NY – May 20, 2021 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) reports unaudited, financial results for the quarter ended March 31, 2021.

(Y)our “S” in ESG-

SHAREHOLDER DESIGNATED CHARITABLE CONTRIBUTION PROGRAM — In 2016, the Company adopted a Shareholder Designated Charitable Contribution Program. Under the Program, all registered shareholders are eligible to designate charities and the company will a make a contribution to that charity. In 2016 through 2020, the company made $100 per share contribution on behalf of its shareholders to their designated charities. LICT is committed to giving back to our communities and, over the past four years, LICT has made over $6.0 million in charitable contributions.

COVID-19 – LICT continues to closely monitor developments as we begin to see pandemic related restrictions lifted.  The voice and data services we provide are essential to the communities we serve. We will continue to take steps to mitigate the potential risks related to the COVID-19 pandemic to our teammates and customers. 

FIRST QUARTER – In 2021, LICT’s first quarter revenues were $32.0 million compared to $30.0 million for the corresponding quarter in 2020. EBITDA was $14.3 million in the first quarter of 2020 as compared to $13.7 million in 2019.

Non-regulated revenues increased 13%, or $1.9 million, to $16.4 million from the prior year’s first quarter $14.5 million, driven by broadband and cable modem sales. Non-regulated EBITDA rose just over 15% to $7.1 million, from $6.2 million.

Regulated revenues were $15.6 million in the first quarter of 2021 versus the prior year’s first quarter of $15.5 million. Regulated EBITDA was $7.2 million compared to $7.6 million last year. The quarter over quarter decline in EBITDA is predominantly due to expenses related to increased customer installs, maintenance of fiber and additional testing for compliance with A-CAM reporting.

OTHER INCOME – Other income increased by $0.6 million due to an increase of Patronage Capital of $0.3 million related to our $50 million line of credit with CoBank, and $0.3 million investment income from an affiliated company.

EARNINGS PER SHARE Diluted earnings per share from operations for the first quarter of 2021 was $378 per share as compared to $324 per sharein 2020, which excludes the $504 gain per share on the sale of MODOC.

ALTERNATIVE – CONNECT AMERICA COST MODEL (“A-CAM”) PROGRAM –All LICT telephone companies have elected to participate in the FCC’s A-CAM and A-CAM II programs. The A-CAM program is designed to speed and expand the deployment of broadband capabilities throughout the nation’s rural areas and replaced two prior USF mechanisms for companies electing A-CAM. LICT received $8.0 million in the first quarter of 2021 for A-CAM and A-CAM II revenues, as compared to $8.1 million in the first quarter of 2020.

The FCC’s A-CAM program, which commenced January 1, 2017, with revisions in 2018 and 2019, and the addition of A-CAM II in Wisconsin in 2019, is designed to increase broadband speed and expand broadband deployment in rural portions of the country with mandatory build-out requirements for receipt of support. A-CAM and A-CAM II replaced two prior legacy FCC Universal Service Fund (“USF”) mechanisms which LICT had been receiving.  LICT is actively building and expanding broadband facilities. 

EMERGENCY BROADBAND BENEFIT – LICT is actively participating in the Federal Communications Commission’s (“FCC”) $3.2 billion Emergency Broadband Benefit Program to support our ongoing commitment to provide broadband to the rural communities we serve and help close the digital divide.  This program provides consumers who are eligible for a broadband credit of up to $50 per month (up to $75 for households on Tribal Lands) towards their qualifying internet plan for the length of the program and we offer a variety of broadband options that qualify under the Emergency Broadband Benefit program.

BALANCE SHEET – LICT benefited from strong cash from operations in the first quarter of 2021.  In addition, this  reflects  the return of a portion of our FCC deposit of $20 million for Auction 107, as well as the reduction of the borrowings against our line of credit by $30.0 million dollars.  At the end of the first quarter of 2021 our net cash position totaled $22.1 million.

2021 OUTLOOK – LICT’s guidance for 2021 remains unchanged with revenues of $127 – $131 million, EBITDA in the range of $58 to $60 million, and total capital expenditures between $27 and $29 million. We are aware that the effect of the COVID-19 pandemic may impact revenue growth.

FCC SPECTRUM AUCTIONSLICT Wireless Broadband Company, LLC (“LICT Wireless”), a wholly owned subsidiary, participated in FCC Auction 107 – 3.7 GHz band which ended on February 18, 2021.  In this auction, LICT acquired 5 licenses in 5 Partial Economic Areas (PEA) for $4.3 million of spectrum 3.7 GHz band licenses.  In March 2021, the FCC returned $15.7 million which is our $20.0 million original deposit less the $4.3 million in licenses we were highest bidder on.

During the first quarter we continued our efforts to deploy the spectrum licenses we were awarded in Auction 105 of last year which will enable us to reach some of our more remote customers with increased speeds.  In addition, we continue the filing process required by the FCC for the 5 markets we were awarded in the RDOF auction. 

STRATEGIC REVIEW –  As previously announced, LICT has initiated a strategic review to accelerate and broaden the Corporation’s businesses. The actions to be explored will include, among others, the possible creation of a Special Purpose Acquisition Corporation (“SPAC”); the spin-off of one or more of the Corporation’s subsidiaries as a separate entity; potential strategic and accretive acquisitions in the Corporation’s current or adjacent industries; and the possibility of raising additional capital by such means as a rights offering to the Corporation’s existing shareholders.

CAPITAL EXPENDITURES – In the first quarter of 2021, capital expenditures were $7.1 million, of which $4.6 million was for non-regulated activities and $2.5 million for regulated activities. Our capital spending will enable us to meet and exceed our A-CAM requirements, offer enhanced broadband speeds, and increase the overall fiber route miles in our network.

As of March 31, 2021, LICT owns and operates 5,251 miles of fiber optic cable, 11,492 miles of copper cable, 767 miles of coaxial cable and 57 towers.

SHARE REPURCHASES – During the three months ended March 31, 2021, the Company repurchased 134 shares for $2.6 million, with an average price of $19,100 per share. On March 31, 2021, 18,399 shares were outstanding. 

OPERATING STATISTICS / BROADBAND DEPLOYMENT – As of March 31, 2021, the Company’s broadband penetration in its franchised telephone service territories, based on its total Incumbent Local Exchange Carrier (“ILEC”) voice lines, was 91.9%, as compared to 90.8% at December 31, 2020.   During the first quarter the Company’s broadband lines grew by 1.8% to just over 40,500 units, this marginal increase offset our voice and video line loss resulting in an overall growth of 0.4%:

 March 31,December 31, Percent
Broadband lines            40,55639,8257311.8%
Voice Lines    
Out of franchise7,4237,456(33)(0.4%)
Video Subscribers4,3074,406(99)(2.2%)
Revenue Generating Units76,02575,6923330.4%


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

                                                                                                              LICT CORPORATIONExhibit A Page 1 of 2
Statements of Operations and Balance Sheet Data 
(In Thousands, Except Per Share Data) 
 Three Months Ended 
March 31, 
Cost and Expenses:   
Cost of revenue, excluding depreciation14,47913,198 
Selling, general and administration3,1733,099 
Corporate office expenses946950  
Depreciation and amortization4,6364,340 
Total Costs and Expenses23,23421,587 
Operating profit8,7818,459  
Other Income (Expense)   
Investment income762113 
Interest expense(385)(302) 
Equity in earnings of affiliated companies18553 
Gain from the sale of investment (a)13,071  
Income Before Income Tax Provision9,40121,365 
Provision for Income Taxes(2,427)(5,554) 
     Net Income$6,974$15,811 
Capital Expenditures$7,123$4,996 
Weighted Average Shares- Basic and Diluted18,45819,101  
Actual shares outstanding at end of period18,39919,008 
Earnings Per Share:$378$828  
Earnings Per Share excluding the gain from the sale of an investment(a)$378$324  

(a) Please note the Three Months ended March 31, 2020 includes the gain of $13.1 million stemming from the sale of MODOC which added $504 to earnings per share.

LICT Corporation                                                                                                                                            Exhibit A                                                                                                   

Statements of Operations and Selected Balance Sheet Data-Continued                                  Page 2 of 2  

(in thousands, Except Per Share Data)

Cash and Cash Equivalents$55,231$67,324
Other short-term investments$          –$20,000
Long-Term Debt (including current portion)$33,176$63,176
     Net Cash$22,055$24,148
Shareholders’ Equity$184,897$180,595
Shares Outstanding18,39918,533
 Three Months Ended
March 31,
EBITDA Reconciliation:
Operating Profit from Continuing Operations$ 8,781                 $ 8,459
    Depreciation and amortization4,6364,340
    Corporate Expenses946950
EBITDA from Operations before Corporate Expenses14,36313,749
Corporate Expenses(946)(950)
EBITDA$ 13,417$ 12,799