Rye, NY – May 15, 2023 – LICT Corporation (the “Corporation”; OTC Pink®: LICT) is today announcing the formal submission of a Form 10 Registration Statement with the U.S. Securities and Exchange Commission (‘SEC’) for the spin-off of its Michigan operations to a wholly owned subsidiary, MachTen, Inc. (MachTen). The Form 10 submission is preliminary and is subject to change upon SEC review. LICT expects a third quarter distribution to its shareholders.
LICT is undergoing a strategic review of its operations to determine whether our shareholders might benefit from ways to surface value including additional spin-offs. LICT’s history of spin-offs include CIBL, Inc., spun off in 2007, initially traded beginning in 2008 at around $200 per share; it has recently traded as high as $1,800 per share. Likewise, ICTC Group, Inc., spun off in 2010, initially traded at around $15 per share and was acquired in 2018 for $65 per share. Indeed, LICT was itself a spin-off from Lynch Corporation and started trading at $2,500 per share.
The Board continues to analyze and evaluate a full range of means to raise capital, permitting the Company to expand the scope and scale of its businesses, accelerate growth, and to provide speed, and accessibility to our customers, while growing our shareholders’ intrinsic value.
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.
Rye, NY – May 3, 2023 – LICT Corporation (the “Corporation”; OTC Pink®: LICT) is announcing that at its April 27, 2023 Board of Directors (the “Board”) Meeting, evaluations of all alternatives for a CEO (as previously announced) and to provide capital were discussed, in its objective to accelerate and broaden the development of high speed connections to the communities that we serve.
Sound Broadband LLC, our newly formed, wholly owned, wireless company, under the leadership of Dylan Larmore, has initiated the installation of wireless broadband services in areas we serve in Michigan and New Mexico. Sound Broadband will analyze how the implementation of wireless broadband services in our other locations could efficiently provide faster broadband speeds to the many communities we serve.
Shareholders of LICT have benefited through spin-offs. CIBL, Inc., spun off in 2007, initially traded beginning in 2008 at around $200 per share; it has recently traded as high as $1,800 per share. Likewise, ICTC Group, Inc., spun off in 2010, initially traded at around $15 per share and was acquired in 2018 for $65 per share. Indeed, LICT was itself a spin-off from Lynch Corporation and started trading at $2,500 per share. The spin-off of our Michigan subsidiary is in the final stages, with projections for an early third quarter distribution. LICT is analyzing its current portfolio of companies to determine whether our shareholders might benefit from other such spin-offs.
Acquisitions in our existing operations are under consideration and the Corporation has been authorized to negotiate an enlarged line of credit with CoBank.
The Board continues to champion the Corporation’s continued analysis and evaluation of a full range of means to expand the scope and scale of its businesses, accelerating growth, to provide speed, and accessibility to our customers, while enhancing our shareholders’ value.
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.
Rye, NY – March 14, 2023 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) reports unaudited, financial results for the quarter ended December 31, 2022.
The Company wishes Kevin Errity well upon his departure and success in his future endeavors.
CHARITABLE CONTRIBUTIONS – LICT has completed the recent Shareholder Designated Contribution Program. The current program resulted in $1.1 million of designated contributions for 2022. Equally important, is that since the inception of the program in 2016, LICT has contributed $8.4 million to designated 501 (c) 3 organizations chosen by shareholders.
RESULTS – FULL YEAR
Revenues in 2022 were $131.3 million, an increase of $2.2 million, compared to $129.1 million in 2021. EBITDA in 2022 was $57.6 million versus $57.8 million in 2021.
Earnings per share for the full year of 2022 were $1,311 per share as compared to $1,368 per sharefor the prior year.
RESULTS – 4TH QUARTER
Fourth quarter 2022 revenues totaled $33.1 million compared to $32.5 million for the corresponding quarter in 2021. EBITDA was $14.4 million in the fourth quarter of 2022 as compared to $14.0 million in 2021.
Non-regulated revenues for the fourth quarter of 2022 increased 4.6%, to $18.1 million from the prior year’s fourth quarter $17.2 million. Non-regulated EBITDA was $7.5 million, versus the $6.9 million earned in the same period last year. The increase in revenues was driven by the sale of broadband services throughout our network.
Regulated revenues were $15.0 million in the fourth quarter of 2022 versus the prior year’s fourth quarter of $15.3 million. Regulated EBITDA was $6.9 million compared to $7.1 million last year.
Corporate costs were unchanged at $1.1 million in the fourth quarter of 2022 versus 2021.
Earnings per share for the fourth quarter of 2022 were $272 per share as compared to $291 per sharefor the prior year. Shares outstanding as of December 31, 2022 were 17,341.
BROADBAND INITIATIVES –
-ReConnect Loan and Grant Program – The ReConnect Loan and Grant Program of the US Department of Agriculture, furnishes loans and grants to provide funds for the costs of construction, improvement, or acquisition of facilities and equipment needed to provide broadband service in eligible rural areas. To date, the Company has accepted a $6.3 million ReConnect III grant, of which LICT has a 25% commitment, from the United States Department of Agriculture (USDA) to build fiber to additional customers in Kansas. In addition, LICT recently accepted 100% grants in New Mexico, California and Michigan for a total of $62.0 million. We are awaiting announcements by USDA on the balance of our ReConnect III applications.
-Affordable Connectivity Program – LICT continues its participation in the FCC Affordable Connectivity Program (“ACP”) to support the Company’s 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.
-Alternative – Connect America Cost Model (“A-CAM”) Program – 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 is actively building and expanding broadband facilities.
CAPITAL EXPENDITURES – In the fourth quarter of 2022, capital expenditures from operations increased by $9.0 million to $17.4 million. Full year 2022 capital expenditures from operations increased by $17.1 million to $48.3 million versus $31.2 million in 2021. Our capital spending enables us to offer enhanced broadband speeds, increase the overall fiber route miles in our network and meet and exceed our A-CAM requirements.
SHARE REPURCHASES – During the twelve months ended December 31, 2022, the Company repurchased 530 shares (3.1% of shares outstanding) for $12.3 million, with an average price of $23,204 per share. On December 31, 2022, 17,341 shares were outstanding, with 795 shares still available for authorized repurchase with a target of 40% of our Net Income.
AUREON INVESTMENT – 2022 investment income includes a dividend of $0.5 million from a minority investment in Aureon versus $0.2 million in the prior year. We carry this investment at our historical cost of $3.0 million, however, LICT’s share of the book value of the investment is estimated to be closer to $9.0 million.
STRATEGIC INITIAVES – Sound Broadband, LLC, a wireless company providing 5G wireless services within LICT’s footprint and beyond, was formed in the fourth quarter of 2022. LICT continues the process of finalizing the spinoff of our Michigan operation as well as evaluating acquisitions and other growth opportunities.
OPERATING STATISTICS/BROADBAND DEPLOYMENT – As of December 31, 2022, LICT owns and operates 6,703 miles of fiber optic cable, 11,258 miles of copper cable, 831 miles of coaxial cable and 85 towers. The Company’s broadband penetration in its franchised telephone service territories, based on its total Incumbent Local Exchange Carrier (“ILEC”) voice lines, was 98.6%, as compared to 93.3% at December 31, 2021. During 2022, the Company’s broadband lines grew by 4.6% to 46,000 units. This increase offsets our voice and video line losses for the year:
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.
Rye, New York- December 6, 2022 – LICT Corporation (OTC Pink: LICT) 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
Rye, NY – November 30, 2022 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) reports unaudited, financial results for the quarter ended September 30, 2022.
Non-regulated revenues for the third quarter of 2022 increased 6.0%, to $18.1 million from the prior year’s third quarter $17.1 million. Non-regulated EBITDA was $7.9 million, versus the $7.4 million earned in the same period last year.
Regulated revenues were $14.8 million in the third quarter of 2022 versus the prior year’s third quarter of $15.2 million. Regulated EBITDA was $6.5 million compared to $7.3 million last year. Total revenues in the third quarter of 2022 were $32.9 million compared to $32.3 million for the corresponding quarter in 2021. EBITDA was $14.4 million in the third quarter of 2022 as compared to $14.7 million in 2021.
Rye, NY – October 28, 2022 – LICT Corporation ( OTC Pink®: LICT) is duly obliged to inform its Shareholders, that on October 27, 2022, the United States Department of Agriculture’s, Rural Utilities Service released an announcement including information pertaining to LICT.
Rye, NY – October 4, 2022 – LICT Corporation ( OTC Pink®: LICT) plans to launch a separate wireless company to provide 5G wireless services to business and residential customers within the LICT footprint and additional markets. The new company will provide next generation technology to keep up with growing market trends.
Dylan Larmore will lead these efforts. LICT currently operates 84 towers and has licensed spectrum within 13 states
Rye, NY – August 16, 2022 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) reports unaudited, financial results for the quarter ended June 30, 2022.
Driven by broadband sales, non-regulated revenues for the second quarter of 2022 increased 5.4%, to $17.7 million from the prior year’s second quarter $16.8 million. Non-regulated EBITDA was $7.5 million, versus the $7.3 million earned in the same period last year.
Regulated revenues were $15.0 million in the second quarter of 2022 versus the prior year’s second quarter of $15.5 million. Regulated EBITDA was $7.2 million compared to $7.5 million last year.
Total revenues in the second quarter of 2022 were $32.7 million compared to $32.3 million for the corresponding quarter in 2021. EBITDA was $14.7 million in the second quarter of 2022 as compared to $14.8 million in 2021.
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.
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 sharefor 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%:
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.
