Rye, New York – June 13, 2013 – LICT Corporation (“LICT” or the “Company”) today announces that it is receiving authorization under its line of credit agreement to purchase an additional $1,000,000. of the Company’s stock. Webster Bank, N.A., which provides LICT’s $17.5 million line of credit, has advised the Company that it will modify the agreement to increase from $1 million to $2 million the amount which LICT may spend to re-purchase its stock in 2013. The Company had requested this increase because it has nearly exhausted the original $1 million authorization and believes that stock buy-backs serve the interests both of shareholders and of the Company itself. Modification of the agreement for this purpose is expected to be completed within the next week.
Continue reading LICT Announces Expansion Of Stock Re-purchase ProgramCategory: Press
LICT Corporation Reports First Quarter 2013 Results
Rye, NY – May 20, 2013 – LICT Corporation (Pink Sheets®: LICT) today announced its first quarter 2013 earnings. See attachment A.
FIRST QUARTER RESULTS –During the first quarter of 2013, our revenues were $23.5 million as compared to $23.1 million in 2012, an increase of $0.3 million. EBITDA at $9.1 million was down by $0.6 million compared to 2012 due to the absence of $0.6 million in cash distributions from our equity affiliates in 2012.
Continue reading LICT Corporation Reports First Quarter 2013 ResultsLICT Corporation Announces Fourth Quarter of 2012 Earnings
Rye, NY – April 26, 2013 – LICT Corporation (Pink Sheets®: LICT) today announced its fourth quarter and full year 2012 earnings and preliminary results for the first quarter of 2013.
Continue reading LICT Corporation Announces Fourth Quarter of 2012 EarningsIncreased Availability And Lower Interest Rate On Its Current Line Of Credit
Rye, NY — January 8, 2013 — LICT Corporation (Pink Sheets ©: LICT) is announcing that it has entered into a modification of its line of credit agreement with Webster Bank, N.A.
Continue reading Increased Availability And Lower Interest Rate On Its Current Line Of CreditLICT Corporation Announces Third Quarter of 2012 Earnings
Rye, NY – November 5, 2012 – LICT Corporation (Pink Sheets®: LICT) reported earnings for the third quarter of 2012, showing a 4% increase in revenues and earnings attributable to LICT of $94.78 per share in the third quarter of 2012 as compared to the $90.08 of earnings in the third quarter of 2011.
Continue reading LICT Corporation Announces Third Quarter of 2012 EarningsLICT Corporation Announces Second Quarter of 2012 Earnings
Rye, NY – August 8, 2012 – LICT Corporation (Pink Sheets®: LICT) reported earnings for the second quarter of 2012, showing a 5% increase in revenues, approximately flat EBITDA and operating income, and a 9% increase in net income.
Lenny Higgins, Chief Operating Officer, said “I am very pleased with the growth of non-regulated revenues in the Second Quarter. The efforts of our local management teams are paying off with in-roads into out-of-territory markets. We have a number of initiatives underway that are delivering growth in the broadband, CLEC, fixed wireless and video business segments. Non-regulated revenues in the quarter were 38% of total revenues, versus 34% in the same quarter of 2011, and 32% and 28% for the years 2010 and 2009, respectively.”
SECOND QUARTER 2012 RESULTS –During the second quarter of 2012, our revenues were nearly $24.0 million as compared to $22.7 million in the second quarter of 2011, an increase of $1.2 million, or 5.1%. EBITDA, before corporate expenses, during the second quarter of 2012 was $10.0 million as compared to $10.2 million in the second quarter of 2011.
Non-regulated revenues increased by $1.3 million during the second quarter from the prior year, due primarily to the sale of additional broadband circuits outside of our regulated service territory, additional video revenue (in part due a CATV acquisition in Utah), and increased DSL penetration. Regulated revenues were approximately the same as last year’s second quarter despite lower access lines and minutes, which were offset by $0.2 million favorable out of period adjustments. EBITDA from the company’s regulated operations was $0.4 million lower than last year, offset by increases from the company’s non-regulated operations. Corporate expenses were $0.9 million, an increase of $0.1 million compared to the 2011 quarter.
Earnings from continuing operations were $83.13 per share in the second quarter of 2012 as compared to the $74.88 of earnings in the second quarter of 2011
The numbers cited for the prior year periods reflect a change, beginning in the fourth quarter of 2011, in how the company records certain upfront payments by customers of our non-regulated businesses to cover the initial non-recurring charges for certain long-term service agreements. This resulted in relatively small restatements in the prior year period so that the numbers could be fairly compared between periods. We have provided a table with the Second Quarter 2012, originally reported 2011, and restated 2011 results.
FULL YEAR FORECAST – LICT Corporation currently expects 2012 revenues to be approximately $95 million, up from the 2011 full year revenues of $93 million, and 2012 EBITDA, before corporate expenses, including cash received from our equity affiliates, to be approximately the same as the $39 million of 2011. This forecast represents a slight increase in revenues from our previous forecast due to additional CLEC revenues, with roughly the same expectations for EBITDA.
CAPITAL EXPENDITURES – Capital expenditures were $3.7 million for in the second quarter of 2012 versus $4.4 million in the comparable quarter of 2011. The company expects to invest approximately $15 million in 2012 compared to $17.8 million in 2011.
BROADBAND REGULATION – In November 2011, the Federal Communications Commission (“FCC”) ordered significant modifications to Intercarrier Compensation (‘ICC’) and the Universal Service Fund (“USF”), and issued a Further Notice of Proposed Rulemaking (“FNPRM”). Due to the numerous items in the FNPRM impacting rate-of-return carriers, such as our companies, it is not possible to fully predict the impact the FCC’s ICC and USF reforms will have on LICT’s future revenues at this time. However, such modifications may have a negative impact on already declining regulated revenues, which is why management has been focused on growing our non-regulated businesses. ICC and USF programs generate, on a combined basis, approximately 40% of our revenues, in part due to our cost structure necessary to serve our rural communities. The Company currently believes that the regulations now in place will likely result in a negative impact on 2012 revenue and EBITDA of approximately $0.7 million, which has been included in the full year forecast above.
OPERATING STATISTICS – As of June 30, 2012, the company’s in-territory DSL penetration, based on total RLEC voice lines, was 60.7%, compared to 58.6% as of December 31, 2011. As recently as 2007, penetration was only 30%. The overall trend in our rural markets has been a decrease in the number of phone lines (reflecting overall trends in the industry, as consumers reduce their number of traditional phone lines, often transitioning to cellular or VOIP communications), offset by increased demand for DSL or other internet service.
Our summary operating statistics are as follows:
| Jun. 30, 2012 | Dec. 31, 2011 | Increase (Decrease) | Percent Increase (Decrease) | |
| ILEC voice lines | 38,199 | 38,420 | (221) | (0.6%) |
| CLEC voice lines | 6,690 | 6,535 | 155 | 2.4% |
| Total voice lines | 44,889 | 44,955 | (66) | (0.1%) |
| Broadband lines | 26,685 | 25,623 | 1,062 | 4.1% |
| LD Resale lines | 23,142 | 22,750 | 392 | 1.7% |
| Video Subscribers | 7,460 | 7,594 | (134) | (1.8%) |
ILEC voice lines are telephone access lines within a service territory where one of our companies is designated the incumbent communications provider, under federal and state regulation. CLEC voice lines are telephone access lines in a service territory in which another company is the designated incumbent communications provider. Broadband lines are principally DSL internet service, usually provided within our normal service areas. LD Resale lines are access lines for which the subscriber has chosen our companies as the long distance carrier; for these lines we use third parties to complete the telephone call.
BALANCE SHEET – As of June 30, 2012, the Company had approximately $7.1 million in cash and $80.7 million in total debt, resulting in net debt of $73.6 million, or 2.1 times 2011 total EBITDA, This is a 17% reduction from the net debt of $88.6 million as of December 31, 2011 and a 19% reduction from the net debt as of June 30, 2011.
REFINANCING THE COMPANY –We have had a long-term goal of simplifying our financial structure. To date, we have paid off the debt associated with our Michigan and New Mexico operations. Such debt repayments, made with proceeds from the sale of spectrum as well as borrowings from our line of credit facility, permit the cash flow from these two operations to be up-streamed and used for general corporate purposes.
SHARE REPURCHASES – LICT repurchased 81 shares for $169,886 in the first six months of 2012 at an average price of $2,097 per share. As of June 30, 2012 and December 31, 2011, shares outstanding were 23,457 and 23,538, respectively.
STRATEGIC INITIATIVES – Our operating subsidiaries are in the process of developing and launching several wireless and wireline broadband initiatives. We anticipate that these initiatives will provide an excellent complement to our strong rural telephony (RLEC) base, and provide the communities that we serve with both the telephony and broadband tools necessary to participate successfully in today’s economy.
* * * *
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 future financial results, anticipated 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, and such 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 Pink Sheets® under the symbol LICT. Its World Wide Web address is: http://www.lictcorp.com.
Contact: Robert E. Dolan
Executive Vice President and Chief Financial Officer
914/921-8821
Release: 12-6
LICT Corporation Announces First Quarter of 2012 Earnings
Rye, NY – May 18, 2012 – LICT Corporation (Pink Sheets®: LICT) today announced its earnings for the first quarter of 2012 (see Exhibit A).
FIRST QUARTER 2012 RESULTS –During the first quarter of 2012, our revenues were $23.1 million as compared to $22.2 million in 2011, an increase of $0.9 million, or 4.2%. EBITDA, before corporate expenses, including cash received from our equity affiliates (that is, less than 50%, ownership in cellular and other partnership interests) generated during the first quarter of 2012 was $9.7 million, the same as the first quarter of 2011. The Company has restated the 2011 first quarter for a change in accounting that was recorded in the fourth quarter of 2011. The change relates to how the company records upfront payments by customers to cover non- recurring charges for its non-regulated business.
In addition, in May 2012, the General Partner in our Modoc Partnership, of which we own 25%, informed us that 2011 earnings they had previously reported to us, including the earnings reported in the First Quarter of 2011, were overstated. This overstatement was corrected in our Fourth Quarter 2011 reported results, but the first quarter results for 2011 were not restated to reflect this change. The Modoc Partnership provides cellular service in California RSA #2.
Non-regulated revenues increased by $1.0 million during the first quarter, from the prior year, due primarily to the sale of additional broadband circuits outside of our regulated service territory, additional video revenue (in part due a CATV acquisition in Utah), and increased DSL penetration. Regulated revenues were down slightly during the quarter due to lower access lines, minutes, and other variances in regulated revenues from our rate of return model. EBITDA from the company’s operations, including cash received from equity affiliates, was the same in both 2012 and 2011, due to increased non-regulated EBITDA of $0.5 million offset by lower regulated EBITDA, and lower distributions from the Modoc Partnership. Corporate office expenses were $0.9 million, an increase of $0.2 million compared to the 2011 quarter.
On February 16, 2012, the Company closed on the previously announced sale of its eight 700MHz licenses for $12.8 million. This resulted in a net gain of $7.7 million, or $324.15 per share.
Earnings from continuing operations were $83.45 per share in the first quarter of 2012, excluding unusual gains, as compared to $90.71 per share in the first quarter of 2011. Reported results of $421.62 per share in the first quarter of 2012 included the $324.15 from the gain on sale of spectrum, as discussed above, and a $0.3 million income tax benefit, or $14.02 per share, from the expiration of uncertain income tax positions.
Lenny Higgins, Chief Operating Officer, said “I am very pleased with growth of non- regulated revenues in the First Quarter. The efforts of our local management teams are paying off with in-roads into out-of-territory markets. We have a number of initiatives underway that represent attractive opportunities for growth in the broadband, CLEC, fixed wireless and video business segments.”
FULL YEAR FORECAST – The Company currently expects 2012 revenues to be $94.7 million, up from the 2011 full year revenues of $92.6 million, and EBITDA, before corporate expenses, including cash received from our equity affiliates, to be $39.3 million, an increase of $0.2 million compared to 2011 as expansion costs in new markets hampered EBITDA from operating companies. This forecast represents a $0.7 million increase in revenues from our previous forecast due to additional sales of circuits, and a $0.3 million decrease in EBITDA, due predominantly to lower than expected distributions from our Modoc Partnership, offset by the increased EBITDA from the higher revenues.
CAPITAL EXPENDITURES – Capital expenditures were $2.3 million for 2012 versus
$3.4 million in 2011. The company is currently reevaluating its overall capital expenditure program in light of the potential changes in Broadband Regulation discussed below.
BROADBAND REGULATION – In November 2011, the Federal Communications Commission (“FCC”) ordered significant modifications to Intercarrier Compensation (‘ICC’) and the Universal Service Fund (“USF”), and issued a Further Notice of Proposed Rulemaking (“FNPRM”). Due to the numerous items in the FNPRM impacting rate-of-return carriers, such as our companies, it is not possible to fully predict the impact the FCC’s ICC and USF reforms will have on LICT’s future revenues at this time. However, such modifications may have a negative impact on already declining regulated revenues. ICC and USF programs generate, on a combined basis, approximately 40% of our revenues, in part due to our cost structure necessary to serve our rural communities.
OPERATING STATISTICS – As of March 31, 2012, the company’s in-territory DSL penetration, based on total RLEC voice lines, was 59.9%, compared to 58.6% as of December 31, 2011. Our summary operating statistics are as follows:
| Mar. 31, 2012 | Dec. 31, 2011 | Increase (Decrease) | Percent Increase (Decrease) | |
| ILEC voice lines | 38,173 | 38,420 | (247) | (0.6%) |
| CLEC voice lines | 6,620 | 6,535 | 85 | 1.3% |
| Total voice lines | 44,793 | 44,955 | (162) | (0.4%) |
| Broadband lines | 26,213 | 25,623 | 590 | 2.3% |
| LD Resale lines | 22,860 | 22,750 | 110 | 0.5% |
| Video Subscribers | 7,518 | 7,594 | (76) | (1.0%) |
BALANCE SHEET – As of March 31, 2012, the company had approximately $8.6 million in cash and $80.6 million in total debt, resulting in net debt of $72.0 million and compared to net debt of $88.6 million as of December 31, 2011. In February 2012, LICT sold eight 700 MHz spectrum licenses and paid off $7.6 million of debt at a subsidiary and $0.8 million from the line of credit, resulting in net debt of $72.0 million or 2.2 times 2011 total EBITDA. Note, our taxes payable were $3.4 million at March 31, 2012.
REFINANCING THE COMPANY – As a result of our acquisitions, LICT’s debt structure currently consists of a maze of loans from federally-backed institutions, commercial banks, and seller notes. This structure is cumbersome and costly in terms of maintenance of facilities and flexibility with regard to terms of potential mergers, acquisitions, dispositions and other shareholder initiatives. As such, the company is considering various refinancing initiatives which will enhance our ability to take the operational steps necessary to position the organization for future success.
SHARE REPURCHASES – LICT repurchased 46 shares for $97,203 in the first quarter of 2012. As of March 31, 2012 and December 31, 2011, shares outstanding were 23,492 and 23,538.
STRATEGIC INITIATIVES – Our operating subsidiaries are in the process of developing and launching several wireless and wireline broadband initiatives. We anticipate that these initiatives will provide an excellent complement to our strong RLEC base, and provide the communities that we serve with the telephony and broadband tools necessary to compete in today’s economy.
* * * *
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 future financial results, anticipated 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, and such 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 Pink Sheets® under the symbol LICT. Its World Wide Web address is: http://www.lictcorp.com.
Contact: Robert E. Dolan
Executive Vice President and Chief Financial Officer
914/921-8821
Release: 12-5
LICT Corporation Announces Fourth Quarter Earnings and Corrections to Preliminary Results
Rye, NY – May 9, 2012 – LICT Corporation (Pink Sheets®: LICT) today announced its earnings for the fourth quarter of 2011 (see Exhibit A). Audited Financial Statements are expected to be available next week.
On March 13, 2012, the Company announced preliminary fourth quarter and full year earnings. Two significant adjustments were made to the preliminary results including a $3.1 million impairment of goodwill and a $1.4 million reduction in equity income.
Continue reading LICT Corporation Announces Fourth Quarter Earnings and Corrections to Preliminary ResultsLICT Corporation Announces Preliminary Fourth Quarter Earnings
Rye, NY – March 13, 2012 – LICT Corporation (Pink Sheets®: LICT) today announced its preliminary earnings for the fourth quarter of 2011 (see Exhibit A). All data are subject to final closing adjustments, including completion of the Company’s internal goodwill valuation. Audited Financial Statements are expected to be available by April 30, 2012.
Continue reading LICT Corporation Announces Preliminary Fourth Quarter EarningsLICT Closes Sale Of 700 MHz Licenses
Rye, New York – February 16, 2012 – LICT Corporation (“LICT”) today closed the previously-announced sale of its eight 700MHz licenses, which cover Catron County, New Mexico; Chautauqua County, New York; Dubuque, Iowa; Elmira, New York; Gogebic County, Michigan; Grant County, New Mexico; Las Cruces, New Mexico; and San Juan County, New Mexico. The transaction will result in a net gain of $7.7 million to LICT, or approximately $325 per share, after transaction costs and income taxes.
Continue reading LICT Closes Sale Of 700 MHz Licenses