LICT Corporation Reports First Quarter 2022 Results

Rye, NY – June 2, 2022 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) reports unaudited, financial results for the quarter ended March 31, 2022.

Non-regulated revenues for the first quarter of 2022 increased by 6.7%, or $1.1 million, to $17.5 million from the prior year’s first quarter $16.4 million, driven by broadband and cable modem sales. Non-regulated EBITDA was $7.1 million, unchanged from 2021.

Regulated revenues were $15.0 million in the first quarter of 2022 versus the prior year’s first quarter of $15.6 million. Regulated EBITDA was $6.9 million compared to $7.3 million last year.

Total revenues in the first quarter of 2022 were $32.5 million compared to $32.0 million for the corresponding quarter in 2021. EBITDA was $14.0 million in the first quarter of 2022 as compared to $14.4 million in 2021.

OTHER INCOME (EXPENSE) – Other income increased approximately $0.1 million to $0.7 million versus $0.6 million in the prior year’s first quarter. This reflects a dividend of $0.5 million from a minority investment in Aureon vs. $0.2 million in the prior year. (We carry this investment at the historical cost of $3.0 million, however, LICT’s share of the book value of the investment is probably closer to $9.0 million.) This was offset by a decrease of Patronage Capital and affiliated income of $0.2 million.

EARNINGS PER SHARE Diluted earnings per share from operations for the first quarter of 2022 were $347 per share as compared to $378 per sharein 2021.

ALTERNATIVE – CONNECT AMERICA COST MODEL (“A-CAM”) PROGRAM –All LICT telephone companies participate in the Federal Communications Commission’s (“FCC’s”) A-CAM and A-CAM II programs. The A-CAM program is designed to increase broadband speed and expand the deployment of broadband capabilities throughout the nation’s rural areas with mandatory build-out requirements for receipt of support. LICT received $8.0 million in each of the first quarters of 2022 and 2021 for A-CAM and A-CAM II revenues. LICT is actively building and expanding broadband facilities. 

AFFORDABLE CONNECTIVITY PROGRAM – LICT is actively participating in the FCC Affordable Connectivity Program (“ACP”) (previously the Emergency Broadband Benefit Program) to support our ongoing commitment to provide affordable broadband to the rural communities we serve and help close the digital divide.  This program provides consumers who are eligible a broadband credit of up to $30 per month (up to $75 for households on Tribal Lands) towards their qualifying internet plan.  We offer a variety of broadband options that qualify under the ACP.

BALANCE SHEET – During the first quarter of 2022, LICT received back $12.3 million from its 2021 deposit of $20.0 million related to FCC Spectrum Auction 110.   LICT also paid down $25.0 million of the CoBank revolving credit facility.

2022 OUTLOOK – LICT’s guidance for 2022 revenues, EBITDA and capital expenditures remains unchanged and are estimated at approximately $131 million and $58 million respectively.  In addition, capital expenditures are expected to exceed the $32 million of 2021.  Full year earnings per share are expected to be about $1,350 per share in 2022.

FCC SPECTRUM AUCTIONS LICT Wireless Broadband Company, LLC (“LICT Wireless”), a wholly owned subsidiary, participated in FCC Auction 110 – 3.45- 3.55 GHz band licenses which ended on November 16, 2021.  The FCC announced the results of this auction on January 14, 2022, and LICT acquired twelve licenses of $7.7 million. During the first quarter we continued our efforts to deploy the spectrum licenses we have acquired through various auctions, which will enable us to reach some of our more remote customers with increased speeds.  

CAPITAL EXPENDITURES – In the first quarter of 2022, capital expenditures were $7.4 million, of which $3.5 million was for non-regulated and $3.9 million for regulated projects. 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, 2022, LICT owns and operates 5,759 miles of fiber optic cable, 11,515 miles of copper cable, 778 miles of coaxial cable and 84 towers.

SHARE REPURCHASES – During the three months ended March 31, 2022, the Company repurchased 245 shares for $5.9 million, with an average price of $24,153 per share. On March 31, 2022, 17,626 shares were outstanding. 

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. From 2016 through 2021, the company donated $100 per share on behalf of its registered shareholders to their designated charities. LICT is committed to giving back to our communities and since the inception of the program, has made over $7.5 million in charitable contributions.

OPERATING STATISTICS / BROADBAND DEPLOYMENT – As of March 31, 2022, the Company’s broadband penetration in its franchised telephone service territories, based on its total Incumbent Local Exchange Carrier (“ILEC”) voice lines, was 95.6%, as compared to 93.3% at December 31, 2021.   During the first quarter, the Company’s broadband lines grew by 1.3% to just over 44,500 units. This increase offset our voice and video line loss.

   March 31,December 31, Percent
Broadband lines            44,50643,9395671.3%
Voice Lines    
Out of franchise6,9907,043(53)(0.8%)
Video Subscribers4,0194,117(98)(2.4%)
Revenue Generating Units78,89378,7431500.2%


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 3
Statements of Operations 
(In Thousands, Except Per Share Data) 
 Three Months Ended 
March 31, 
Cost and Expenses:   
Cost of revenue, excluding depreciation15,23514,479 
Selling, general and administration3,2233,173 
Corporate office expenses1,134946  
Charitable contributions141  
Depreciation and amortization5,1614,636 
Total Costs and Expenses24,89423,234 
Operating profit7,5718,781  
Other Income (Expense)   
Investment income894762 
Interest expense(291)(385) 
Equity in earnings of affiliated companies50185 
Income Before Income Tax Provision8,2959,401 
Provision for Income Taxes(2,123)(2,427) 
     Net Income$6,172$6,974 
Capital Expenditures$7,450$7,123 
Weighted Average Shares- Basic and Diluted17,78618,458  
Actual shares outstanding at end of period17,62618,399 
Earnings Per Share:$347$378  
                                                                                                              LICT CORPORATION  Exhibit A Page 2 of 3
Balance Sheet   
(In Thousands, Except Per Share Data)   
 March 31, 2022December 31, 2021 
Current assets:   
Cash and cash equivalents$27,049$42,466 
Receivables, less allowances of $153 and $169, respectively  6,366  7,180 
Material and supplies9,1768,212 
Prepaid expenses and other current assets5,35024,068 
Total current assets47,94181,926 
Property, plant and equipment:125,858123,473 
Other intangibles24,13416,392 
Investments in and advances to affiliated entities2,7653,822 
Other assets10,54810,476 
Total assets$259,294$284,137 
Current liabilities:   
  Trade accounts payable$4,031$4,388 
  Accrued interest payable12154 
  Accrued liabilities7,9297,720 
  Current maturities of long-term debt57725,577 
     Total current liabilities12,54937,839 
Long-term debt21,74821,748 
Deferred income taxes24,94725,025 
Other liabilities9,5939,323 
   Total liabilities68,83793,935 
Total shareholders’ equity190,457190,202 
Total liabilities and shareholders’ equity$259,294$284,137 

LICT Corporation                                                                                                                                            Exhibit A                                                                                                   

Statements of Operations and Selected Balance Sheet Data-Continued                                  Page 3 of 3  (in thousands, Except Per Share Data)

    SELECTED DATAMar. 31,Dec. 31,
Cash and Cash Equivalents$27,049$42,466
Other short-term investments20,000
Long-Term Debt (including current portion)(22,325)(47,325)
     Net Cash$4,724$15,141
Shares Outstanding17,62617,871
 Three Months Ended
March 31,
EBITDA Reconciliation:
Operating Profit from Continuing Operations$7,571  $ 8,781
    Corporate Expenses1,134946
    Charitable Contributions141
    Depreciation and amortization5,1614,636
EBITDA from Operations before Corporate Expenses14,00714,363
    Corporate Expenses(1,134)(946)
Charitable Contributions(141)
EBITDA$12,732$ 13,417