LICT Corporation Reports Preliminary Fourth Quarter And Full Year 2021 Results

Full Year     

  • Revenues climbed by 4% to a record $129.1 from $124.2 million.
  • EBITDA from operations was $58.0 versus $57.6 million.
  • EPS from operations were $1,374 per share versus $1,336 per share in 2020

Fourth Quarter 

  • Non-Regulated revenues continue to report record results
  • Revenues rose 3.5% to $32.5 from $31.4 million.

Rye, NY – March 7, 2022 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) reports unaudited, financial results for the year end and fourth quarter ended December 31, 2021. 

COVID-19 – LICT continues to closely monitor developments of the new variants of COVID -19. We continue to take steps to mitigate the potential risks related to the COVID-19 pandemic to the communities we serve and our teammates who work efficiently and diligently to serve their respective communities.

CHARITABLE CONTRIBUTIONS – LICT has completed the recent Shareholder Designated Contribution Program. The current program resulted in $0.9 million of designated contributions.  Since the inception of the program in 2016, LICT has contributed $7.3 million to hundreds of 501 (c) 3 organizations.

RESULTS-

Revenues in 2021 totaled $129.1 million compared to $124.2 million for the corresponding quarter in 2020.  EBITDA in 2021 was $53.1 million versus $52.8 million in 2020.

Fourth quarter 2021 revenues rose 4.0% to $32.5 million compared to $31.4 million for the corresponding quarter in 2020.  Fourth quarter EBITDA of $14.2 million in 2021 compared to $14.5 million in 2020.

Broadband revenues increased by 6.8%, to a record $17.3 million from the prior year’s fourth quarter $16.2 million.  Non-regulated EBITDA decreased by 2.8% to $7.0 million, from $7.2 million in the prior year’s fourth quarter. This is reflective of increases in operating costs for the quarter over last year due to increased staffing, customer install expenses and non-recurring year-end adjustments.  

Regulated revenues and EBITDA for the fourth quarter 2021 remained consistent with 2020 at $15.2 million and $7.1 million respectively. 

CORPORATE EXPENSES – Corporate costs increased to $1.1 million in the fourth quarter 2021 compared to $0.4 million in 2020, which benefited from positive year-end adjustments.  

OTHER INCOME/(EXPENSE) – Other income and expenses declined by $3.7 million in the quarter, to an expense of $0.3 in 2021, versus income of $3.4 in 2020.  This reduction was due to the gain on the sale of AWS Topeka Spectrum, in November 2020.  In addition, interest income was lower in 2021 due to lower interest rates and lower cash balances.

EARNINGS PER SHARE  Earnings per share from operations for the fourth quarter of 2021 excluding one-time events were $296 per share as compared to $335 per share for the prior year. Shares outstanding at the end of the fourth quarter of 2021 were 17,871.

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

EMERGENCY BROADBAND BENEFIT (“EBB”) AND AFFORDABLE CONNECTIVITY PROGRAM (“ACP”) – LICT actively participated in the FCC’s EBB Program and continues to participate in the new ACP, which replaced EBB, to support our ongoing commitment to provide affordable broadband to the rural communities we serve and help close the digital divide.  ACP provides eligible consumers with a monthly broadband credit of up to $30 (previously up to $50 monthly EBB discount) and up to $75 monthly discount for households on Tribal Lands (under both EBB and ACP) towards their qualifying broadband plan for the duration of the program. 

FCC AUCTIONS – The conclusion of Auction 110 on November 16, 2021, established LICT as the winning bidder of 24 markets in 5 states for 3.45- 3.55 GHz band licenses.  These newly acquired licenses, along with the various other licenses we have won in past auctions, will further the Company’s efforts to expand our network reach.

STRATEGIC REVIEW – The Company continues to systematically seek, analyze and evaluate a full range of means to expand the scope and scale of its businesses and to accelerate growth across all of them, thereby enhancing our shareholders’ value. To support this strategic initiative, in February 2022, Matt Goldfarb joined LICT as a special advisor. Mr. Goldfarb is a seasoned investment professional with substantial operating and transactional expertise across various industries. 

CAPITAL EXPENDITURES – In the fourth quarter of 2021, capital expenditures increased by $0.4 million to $9.2 million, of which $4.2 million was for non-regulated activities and $5.0 million for regulated activities.  The full year capital expenditures increased by $3.8 million or 13.5% to $32.0 million.  We expect to increase our capital expenditures in 2022 to facilitate fiber deployment enabling us to increase broadband speed offerings and extend our networks in the communities we serve.

As of December 31, 2021, LICT owns and operates 5,832 miles of fiber optic cable, 11,522 miles of copper cable, 816 miles of coax cable and 83 towers. 

SHARE REPURCHASES – During the twelve months ended December 31, 2021, the Company repurchased 662 shares (3.6% of shares outstanding) for $15.2 million, with an average price of $22,986 per share. On December 31, 2021, 17,871 shares were outstanding, with 825 shares still available for authorized repurchase with a target of 40% of our Net Income.

OPERATING STATISTICS / BROADBAND DEPLOYMENT – As of December 31, 2021, the Company’s broadband penetration in its Incumbent Local Exchange Carrier (“ILEC”) telephone service territories, based on its total ILEC voice lines, was 93.3%, as compared to 90.8% at December 31, 2020.  As a result of our increased capital expenditures, the Company’s broadband lines grew by 10.3% for the year, to just under 44,000 units.  This increase offsets our voice and video line losses resulting in an overall growth of 4.0%:

 December 31, 2021December 31, 2020Increase
(Decrease) 
Percent
Increase
(Decrease)
 
Broadband lines      43,93939,8254,11410.3%
Voice Lines    
ILEC23,64424,005(361)(1.5%)
CLEC7,0437,456(413)(5.5%)
  Total30,68731,461(774)(2.5%)
Video Subscribers4,1174,406(289)(6.6%)
Revenue Generating Units78,74375,6923,0514.0%

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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 anticipated financial results, financing, capital expenditures and corporate transactio11ns.  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.  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 http://www.lictcorp.com.

LICT Corporation Shareholder Designated Charitable Contribution Program

Rye, New York- November 23, 2021 – LICT Corporation (OTC Pink: LICT) announced today it will continue its  Shareholder Charitable Contribution program for all registered shareholders. Each registered shareholder will be eligible to designate a  charity to which the company will donate $100 per share on behalf of the shareholder.

At LICT, we believe charitable giving is a cornerstone of society and an obligation for those with means to make a difference in the world. As an organization, LICT will have no control over the donations, but we are happy to make them on behalf of our shareholders

Over the past 5 years, LICT has made more than $6.0 million in charitable contributions.

If a shareholder’s shares are registered in “street name” (i.e. a bank, broker or other institution holding the shares for the shareholder), those shares will not be eligible to participate in this charitable program.  Therefore, any shareholder who has shares that are currently held in street name but wishes to participate in this program should contact the institution holding the shares to arrange for their registration in the shareholder’s own name.

Shareholders will have until December 17, 2021, to register shares in their own name to participate in the program.

LICT will then distribute a charitable contribution form to all registered shareholders. Completed forms must be returned to LICT no later than January 14, 2022, for the charitable contribution to be made. Only charities that are recognized 501(c)3 organizations will be qualified to receive the donation from LICT on the shareholder’s behalf. A list of eligible charities is available at: Guidestar.org

If all shares outstanding are registered in the shareholders’ names at the record date, the total contribution would be approximately $2 million.

Please email us at shareholdergiving@lictcorp.com  with any questions.

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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 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, financial markets 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 successful or that financial or other targets will be met.  Such forward-looking information is subject to uncertainties, risks and inaccuracies, which could be material.

LICT is a holding company with subsidiaries in broadband and other telecommunications services that actively seeks acquisitions, principally in its existing business areas.  LICT is listed on the OTC Pink ® under the symbol LICT.  For further information, please visit our website listed above.

LICT CORPORATION REPORTS THIRD QUARTER 2021 RESULTS

                    – Non-Regulated Revenues Report Record Results

                    – Shareholder Designated Contribution Program -$100. per share

Rye, NY – November 12, 2021 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) reports unaudited, financial results for the quarter ended September 30, 2021.

COVID-19 – LICT continues to closely monitor developments of the new variants of COVID -19. We continue to take steps to mitigate the potential risks related to the COVID-19 pandemic to the communities we serve and our teammates who work efficiently and diligently to serve their respective communities.

RESULTS-

Driven by broadband services, third quarter non-regulated revenues increased 9%, to a record $17.1 million from the prior year’s third quarter $15.6 million. Non-regulated EBITDA rose over 9% to $7.3 million, from $6.7 million.

Regulated revenues on the other hand slipped to $15.2 million from last year’s third quarter revenues of $16.5. This shortfall is traceable to a reduction from DSL detariffing and a cost study revision associated with network changes. Last year’s third quarter included a non-recurring receivable of $0.6 million driven by changes in the computation of the cost recovery mechanism. Regulated EBITDA was $7.4 million compared to $8.8 million last year.

Overall revenues in LICT’s third quarter were $32.3 million compared to $32.2 million for the corresponding quarter in 2020. EBITDA was $14.7 million in the third quarter of 2021 as compared to $15.5 million in 2020.

OTHER EXPENSES – A decline in other expenses to $300,000 from $500,000 was mostly due to a decrease in interest expense reflecting payment of a large portion of  the $50 million loan from CoBank in 2020.

EARNINGS PER SHARE Earnings per share from operations for the third quarter of 2021 were $342 per share for the third quarter as compared to $371 per sharein the prior year’s third quarter. LICT’s guidance, for 2021 revenue and EBITDA, remains unchanged with revenues of $127 – $131 million and EBITDA in the range of $58 to $60 million.

Full year we expect earnings per share to be $1,435 per share versus $1,353  in 2020. Shares outstanding at the end of the third quarter of 2021 were 17,960.

EMERGENCY BROADBAND BENEFIT (“EBB”) PROGRAM – LICT is actively participating in the FCC’s $3.2 billion EBB 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 with a broadband credit of up to $50 per month (up to $75 for households on Tribal Lands) towards their qualifying broadband plan for the duration of the program.

FCC AUCTIONS – LICT is currently participating in Auction 110. During the third quarter of 2021, we continued our efforts to deploy the spectrum licenses we were awarded in various auctions which will enable us to provide increases speeds to some of our more remote customers. In addition, we are engaged in the filing process required by the FCC for the markets we were awarded in Auction 904, the Rural Digital Opportunities Fund auction.

STRATEGIC REVIEW – As previously stated, the Company continues to systematically seek, analyze and evaluate a full range of means to expand the scope and scale of its businesses to accelerate growth across all of them, and thereby enhance our shareholders’ value.

CAPITAL EXPENDITURES – In the third quarter of 2021, capital expenditures increased by $1.7 million to $8.1 million, of which $3.5 million was for non-regulated activities and $4.6 million for regulated activities. LICT’s guidance on capital expenditures is increasing to a range of $31 and $33 million  this year from $28 million invested in 2020 as we have increased deployment of fiber in the communities we serve. Our capital spending enables us to meet and exceed our A-CAM requirements, by accelerating our broadband deployment, offering enhanced broadband speeds, and increase the overall fiber route miles in our network.

As of September, 30, 2021, LICT owns and operates 5,411 miles of fiber optic cable, 11,499 miles of copper cable, 775 miles of cable and 83 towers. 

SHARE REPURCHASES – During the nine months ended September 30, 2021, the Company repurchased 573 shares for $12.9 million, with an average price of $22,600 per share. On September 30, 2021, 17,960 shares were outstanding, with 914 shares still available for authorized repurchase mostly on an opportunistic basis.

SHAREHOLDER CONTRIBUTION PROGRAM – LICT’s Board of Directors has approved $100 per share for this year’s  Shareholder Designated Charitable Contribution Program. For the past 6 years LICT has extended to registered shareholders, the opportunity to designate a 501(c) 3 charity to which LICT will contribute $100. per share. Details regarding the program will be issued under separate cover.

OPERATING STATISTICS / BROADBAND DEPLOYMENT – As of September 30, 2021, the Company’s broadband penetration in its franchised telephone service territories, based on its total Incumbent Local Exchange Carrier (“ILEC”) voice lines, was 93.3%, as compared to 90.8% at December 31, 2020.

 September 30,December 31, Percent
 IncreaseIncrease
 20212020(Decrease)(Decrease)
Broadband lines            43,48039,8253,6559.2%
Voice Lines    
ILEC23,89624,005(109)(0.5%)
Out of franchise6,9197,456(537)(7.2%)
  Total30,81531,461(646)(2.1%)
Video Subscribers4,1794,406(227)(5.2%)
Revenue Generating Units78,47475,6922,7823.7%

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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 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, 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.  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 http://www.lictcorp.com.

LICT CORPORATION

       

    Exhibit A

Statements of Operations and Selected Balance Sheet Data

 

Page 1 of 2

(In Thousands, Except Per Share Data)

         
           

STATEMENTS OF OPERATIONS

         
 

       Three

Months Ended

 

         Nine Months Ended

 

September 30,

 

September 30,

 

2021

2020

 

2021

2020

       

Revenues

$32,314

$32,183

$96,616

$92,736

Cost and Expenses:

Cost of revenue, excluding depreciation

14,624

13,739

43,622

40,487

Selling, general and administration

2,960

2,911

9,149

9,186

Corporate Office Expenses

880

1,207

2,743

3,220

Charitable Contributions

183

247

Depreciation and amortization

4,919

4,453

14,210

12,867

Total Costs and Expenses

23,383

22,310

69,907

66,007

Operating profit

8,931

9,873

26,709

26,729

Other Income (Expense)

Investment income

7

16

791

283

Interest expense

(277)

(481)

(981)

(1,269)

Equity in earnings of affiliated companies

29

235

53

Gain from the sale of investment (a)

13,071

Other

(31)

16

5

12

(272)

(449)

50

12,150

 

Income Before Income Tax Provision

8,659

9,424

26,759

38,879

Provision for income taxes

(2,497)

(2,481)

(7,337)

(10,358)

    

Net Income

$6,162

$6,943

$19,422

$28,521

   

 

Capital Expenditures

$8,132

$6,460

$22,763

$19,348

   

 

 

Weighted Average Shares- Basic and Diluted

18,026

18,701

18,214

18,866

Actual shares outstanding at end of period

17,960

18,673

 

17,960

18,673

Earnings Per Share:

$342

$371

$1,066

$1,512

Earnings Per Share excluding the gain from the sale of an investment(a)

$342

$371

$1,066

$1,002

(a) Please note for the nine months ended September 30, 2020, includes the gain of $13.1 million stemming from the sale of MODOC which added $510 to earnings per share.

 

 

 

 

 

See EBITDA on page 2

LICT Corporation                                                                                                                                            Exhibit A                                                                                                   

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

 (In Thousands, Except Per Share Data)

 

 

SELECTED BALANCE SHEET DATA

September 30,

December 31,

 
 

2021

2020

 

 

 

 

Cash and Cash Equivalents

$42,738

$67,324

 

Other short-term investments

$20,000

$20,000

Long-Term Debt (including current portion)

 $(47,325)

$(63,176)

 

     Net Cash

$15,413

$24,148

 
     

Shareholders’ Equity

$187,047

$180,595

 
     

Shares Outstanding

17,960

18,533

 
     
       

EBITDA

     

EBITDA is an established measure of operating performance and liquidity that is commonly reported and widely used by analysts, investors, and other interested parties in the telecommunications industry because it eliminates many differences in financial, capitalization, and tax structures. We believe that EBITDA trends are a valuable indicator of whether our operations can produce sufficient operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.

           

EBITDA is calculated as Operating Profit from Continuing Operations plus depreciation and amortization expense and charitable contributions.

 

 Three Months Ended

 

Nine Months Ended

 

September 30,

 

 September 30,

 

2021

2020

 

2021

2020

EBITDA Reconciliation:

     

 

Operating Profit from Continuing Operations

$8,931

 

        $9,873  

 

$26,709

$26,729

 Additions:

    Corporate expenses

880

1,207

2,743

3,220

    Charitable contributions

183

247

    Depreciation and amortization

4,919

4,453

14,210

12,867

EBITDA from Operations Before Corporate Expenses

14,730

15,533

 

43,845

43,063

Corporate Expenses

(880)

(1,207)

(2,743)

(3,220)

EBITDA

$13,850

$14,326

 

$41,102

$39,843

LICT Corporation Shareholder Designated Charitable Contribution Program

Rye, New York- October 20, 2021 – LICT Corporation (OTC Pink: LICT) announced today that its Board is in final discussions regarding continuing its Shareholder Charitable Contribution program for all registered shareholders. Each registered shareholder will be eligible to designate a  501(c)3 charity to which the company will make a donation of $100 per share on behalf of the shareholder. It is currently anticipated that more details will be announced before year end regarding the mechanics and timing of the contributions.

In addition to our Shareholder Giving Program, as we have done in the past, LICT will extend the opportunity for each of our Teammates to allocate a 501(c)3 charity to whom the Company will make a donation. Our Teammates welcome the opportunity to continue to support the 501(c)3 recipients in in the communities they serve.

Over the past 5 years, LICT has made more than $6.0 million in charitable contributions.

At LICT, we believe charitable giving is a cornerstone of society and an obligation for those with means to make a difference in the world. As an organization, LICT will have no control over the donations, but we are happy to make them on behalf of our shareholders and Teammates.

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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 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, financial markets 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 successful or that financial or other targets will be met.  Such forward-looking information is subject to uncertainties, risks and inaccuracies, which could be material.

LICT is a holding company with subsidiaries in broadband and other telecommunications services that actively seeks acquisitions, principally in its existing business areas.  LICT is listed on the OTC Pink ® under the symbol LICT.  For further information, please visit our website listed above.

LICT Corporation Announces Receipt of Offer for its Shares

Rye, New York – October 13, 2021 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT)  is announcing that we  received an offer to purchase all of LICT’s outstanding stock.  Although the price which has been offered represents a price above market, our Board believes it is below the intrinsic value of our enterprise.

In addition, we continue to move on with our previously announced financial engineering.

This announcement is being made to inform our shareholders that the offer described above has been received. We plan to issue no further communication on this offer until Auction 110 concludes.

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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 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, 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.  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 http://www.lictcorp.com.

AUCTION 110

Due to Provisions in Upcoming Auction 110, Gary L. Sugarman,

Who Joined the LICT Corporation Board of Directors in 2006 Has Resigned

Rye, NY – August 27, 2021 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) is today announcing the resignation of Gary L. Sugarman from its Board of Directors.  His resignation is effective immediately.  

Mr. Sugarman’s resignation is in response to a Rule of the Federal Communications Commission (“FCC”), Section 20.22(b)(4)i,  which was first adopted in 2014, amended in 2015 into its current form)  providing that an “attributable interest” in wireless spectrum is created by a person’s service as an officer or director in a licensee or its controlling entity.  That attributable interest is then counted toward the cap on the amount of spectrum which an entity may hold and since Gary serves on the Board of another telecommunications provider, this FCC Rule “greatly limits either company’s options in” spectrum auctions and other spectrum-related matters. 

Mr. Sugarman has a lengthy and distinguished record of service with LICT.  He first served as President of Brighton Communications, Inc., a subsidiary of Lynch Corporation  from 1991 through 1993.  Then after his departure from Brighton, he continued to serve as a closely involved advisor to LICT for the next thirteen years, from 1993 through 2006, at which time he joined LICT’s Board.  He served as a Director of LICT from September 2006 through April 2008 and returned as a Director in February 2019.  At the time of his resignation, he was serving as the Chairman of the Board’s Regulatory Committee and as a member of the Audit Committee. 

Speaking for the Company, Mario J. Gabelli, Chairman and Chief Executive Officer, said that “We will greatly miss Gary and his insightful knowledge of rural telecommunications.  We are profoundly appreciative of his contribution to the Company’s development over his long service as a manager, an advisor and a Director.  His efforts played a major role in LICT’s progress in bringing broadband services and capacities to rural Americans.” 

Any action which the Board decides to take regarding the vacancy created by Mr. Sugarman’s resignation will be announced at the appropriate time. 

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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 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, 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.  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 http://www.lictcorp.com.

LICT Corporation Reports Second Quarter 2021 Results

  • Revenues increased 5.8% to $32.3 from $30.5 million.
  • EBITDA from operations was $14.8 versus $13.8 million.
  • EPS from operations rose 13% to $346 from $307 per share.
  • Capital Expenditure increases accelerate our broadband deployment

Rye, NY – August 4, 2021 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) reports unaudited, financial results for the quarter ended June 30, 2021.

COVID-19 – LICT continues to closely monitor developments of the new variants of COVID -19.  We continue to take steps to mitigate the potential risks related to the COVID-19 pandemic to our teammates and customers. 

SECOND QUARTER – In 2021, LICT’s second quarter revenues were $32.3 million compared to $30.5 million for the corresponding quarter in 2020. EBITDA was $14.8 million in the second quarter of 2021 as compared to $13.8 million in 2020.

Non-regulated revenues increased 12%, or $1.8 million, to $16.8 million from the prior year’s second quarter $15.0 million, driven by broadband and cable modem sales. Non-regulated EBITDA rose just over 12% to $7.3 million, from $6.5 million.

Regulated revenues totaled $15.5 million in the second quarter of both 2021 and 2020. Regulated EBITDA was $7.5 million compared to $7.3 million last year. 

In April 2021, CentraCom, the Company’s Utah operation, closed on the acquisition of assets and operations of NeboNet, a fixed wireless Internet Service Provider located in Nephi, Utah. NeboNet offered high speed wireless Internet service in the counties of Juab and Boxer Elder, Utah. CentraCom will expand and enhance the bandwidth capabilities of the network throughout these communities. 

OTHER INCOME – Other income/(expense) for the second quarter of 2021 and 2020 totaled $0.3 million, mostly due to  the $50 million drawdown from CoBank  in the prior year, which we have reduced to $10 million.

EARNINGS PER SHARE Earnings per share from operations for the second quarter of 2021 were $346 per share as compared to $307 per sharein the prior year’s second quarter.

ALTERNATIVE – CONNECT AMERICA COST MODEL (“A-CAM”) PROGRAM – LICT included $8.0 million in the second quarter of 2021 for A-CAM and A-CAM II revenues, about the same as the $8.1 million in the second quarter of 2020.

All LICT telephone companies have elected to participate in the Federal Communications Commission’s (“FCC”) A-CAM and A-CAM II programs. The A-CAM program commenced January 1, 2017, with revisions in 2018 and 2019. A-CAM II was implemented by the FCC in 2019, which LICT adopted in Wisconsin. The A-CAM program is designed to accelerate and expand the deployment of broadband capabilities throughout the nation’s rural areas with mandatory build-out requirements for receipt of support.  LICT is actively building and expanding broadband facilities. A-CAM and A-CAM II replaced two prior USF mechanisms for companies electing A-CAM.

EMERGENCY BROADBAND BENEFIT (“EBB”) PROGRAM – LICT is actively participating in the FCC’s $3.2 billion EBB 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 with a broadband credit of up to $50 per month (up to $75 for households on Tribal Lands) towards their qualifying internet plan for the duration of the program. 

FCC AUCTIONS – During the second quarter of 2021 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 are engaged in the filing process required by the FCC for the markets we were awarded in Auction 904, the Rural Digital Opportunities Fund auction, as well as planning to  participate in the upcoming Auction 110.

2021 OUTLOOK – LICT’s guidance for 2021 revenue and EBITDA remains unchanged with revenues of $127 – $131 million and EBITDA in the range of $58 to $60 million.  LICT’s guidance on capital expenditures is increasing to a range of $31 and $33 million as we have increased deployment of fiber in the communities we serve. The effect of the COVID-19 pandemic may impact revenue growth, in the second half of 2021.

STRATEGIC REVIEW – As previously stated, the Company continues to systematically seek, analyze and evaluate a full range of means to expand the scope and scale of its businesses to accelerate growth across all of them, and thereby enhance our shareholders’ value.

CAPITAL EXPENDITURES – In the second quarter of 2021, capital expenditures were $7.5 million, of which $4.1 million was for non-regulated activities and $3.4 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 June 30, 2021, LICT owns and operates 5,325 miles of fiber optic cable, 11,494 miles of copper cable, 770 miles of coaxial cable and 83 towers.  During the quarter, we added 26 towers as a result of our acquisition of NeboNet in Utah.

SHARE REPURCHASES – During the six months ended June 30, 2021, the Company repurchased 453 shares for $10.1 million, with an average price of $22,200 per share. On June 30, 2021, 18,080 shares were outstanding. 

OPERATING STATISTICS / BROADBAND DEPLOYMENT – As of June 30, 2021, the Company’s broadband penetration in its franchised telephone service territories, based on its total Incumbent Local Exchange Carrier (“ILEC”) voice lines, was 93.3%, as compared to 90.8% at December 31, 2020.

 June 30,December 31, Percent
 IncreaseIncrease
 20212020(Decrease)(Decrease)
Broadband lines            40,60739,8257822.0%
Voice Lines    
ILEC23,95724,005(48)(0.2%)
Out of franchise6,8977,456(559)(7.5%)
  Total30,85431,461(607)(1.9%)
Video Subscribers4,3074,406(99)(2.2%)
Revenue Generating Units75,76875,692760.1%

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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 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, 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.  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 Continues Share Repurchase Program and Evaluation of Businesses

Rye, New York – July 13, 2021 – LICT Corporation (“LICT” or the “Company”, OTC Pink ®: LICT) is today announcing that its Board of Directors (the “Board”) has increased the Company’s authorization to  repurchase its stock to a total of 1,000 shares. Prior to this increase, there had been 335 shares remaining for repurchase under the Board’s prior authorizations. LICT continues its buyback program because it believes that the current market under values the long-term prospects of the company.

As previously stated, the Company continues to systematically seek, analyze and evaluate a full range of means to expand the scope and scale of its businesses, to accelerate growth across all of them, and thereby enhance our shareholders’ value.

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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 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, 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.  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 http://www.lictcorp.com.

Kevin Errity Joins Corporate Executive Team as Chief Operating Officer

Rye, NY – May 26, 2021 – LICT Corporation (the “Corporation”; OTC Pink®: LICT) is privileged to announce that Kevin Errity has joined LICT as Chief Operating Officer. 

Mr. Errity has been engaged in the telecommunications industry throughout his entire business career of nearly 30 years.  Since beginning with AT&T in 1993, he has held executive positions in sales, sales engineering and operations.  He has also had substantial experience with mergers and acquisitions of telecommunications firms. 

Most recently Mr. Errity served as a Senior Vice President of ExteNet Systems, a provider of custom fiber optic infrastructure for financial, carrier and enterprise clients.  Prior to that, he played a leading executive role in the development of PAETEC Communications from a start-up operation into a $2 billion enterprise at its 2012 merger with Windstream Communications.

Mario J. Gabelli, Chairman of the Corporation’s Board, said “We are delighted that Kevin is joining LICT.  His deep experience in many areas of telecommunications will greatly strengthen our executive team as we prepare to accelerate the development of our businesses.”  Mr. Errity echoed those thoughts, saying “I look forward with great enthusiasm to being a member of this dynamic enterprise.  I believe LICT has a bright future and will dedicate all my efforts to its rapid achievement.”

Mr. Errity’s office will be located at the Corporation’s headquarters location in Rye, NY.

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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 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, 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.  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 http://www.lictcorp.com.

LICT CORPORATION REPORTS FIRST QUARTER 2021 RESULTS

  • 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
 IncreaseIncrease
 20212020(Decrease)(Decrease)
Broadband lines            40,55639,8257311.8%
Voice Lines    
ILEC23,73924,005(266)(1.1%)
Out of franchise7,4237,456(33)(0.4%)
  Total31,16231,461(299)(1.0%)
Video Subscribers4,3074,406(99)(2.2%)
Revenue Generating Units76,02575,6923330.4%

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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 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, 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.  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 http://www.lictcorp.com.

                                                                                                              LICT CORPORATIONExhibit A Page 1 of 2
Statements of Operations and Balance Sheet Data 
(In Thousands, Except Per Share Data) 
 
STATEMENTS OF OPERATIONS 
 Three Months Ended 
March 31, 
20212020  
 
Revenues$32,015$30,046 
   
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  
Other58(29) 
62012,906 
   
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)

    SELECTED BALANCE SHEET DATAMar. 31,Dec. 31,
20212020
   
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$180,595
Shares Outstanding18,39918,533
 Three Months Ended
March 31,
20212020
EBITDA Reconciliation:
Operating Profit from Continuing Operations$ 8,781                 $ 8,459
 Additions:  
    Depreciation and amortization4,6364,340
    Corporate Expenses946950
EBITDA from Operations before Corporate Expenses14,36313,749
Corporate Expenses(946)(950)
EBITDA$ 13,417$ 12,799