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.
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.
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.
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.
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.
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.
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.
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.
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 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.
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.
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.
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 AUCTIONS – LICT 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%:
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 APage 1 of 2
Statements of Operations and Balance Sheet Data
(In Thousands, Except Per Share Data)
STATEMENTS OF OPERATIONS
Three Months Ended
March 31,
2021
2020
Revenues
$32,015
$30,046
Cost and Expenses:
Cost of revenue, excluding depreciation
14,479
13,198
Selling, general and administration
3,173
3,099
Corporate office expenses
946
950
Depreciation and amortization
4,636
4,340
Total Costs and Expenses
23,234
21,587
Operating profit
8,781
8,459
Other Income (Expense)
Investment income
762
113
Interest expense
(385)
(302)
Equity in earnings of affiliated companies
185
53
Gain from the sale of investment (a)
–
13,071
Other
58
(29)
620
12,906
Income Before Income Tax Provision
9,401
21,365
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 Diluted
18,458
19,101
Actual shares outstanding at end of period
18,399
19,008
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.
Rye, NY – April 26, 2021 – LICT Corporation (the “Corporation”; OTC Pink®: LICT) is announcing that its Board of Directors (the “Board”) has initiated a strategic review to accelerate and broaden the development of the Corporation’s businesses. At a special meeting held on April 23, 2021, the Board directed the consideration and analysis of a full range of measures to unlock current and enhance and surface shareholder value.
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 long term debt.
A SPAC gives the Corporation flexibility to seek out and fund transactions in its existing or related businesses or expand into new areas.
In addition, Shareholders 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 at $2,500 per share. LICT is analyzing its current portfolio of companies to determine whether our shareholders might benefit from another such spin-off.
In sum, at the Board’s affirmative direction, the Corporation will 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 to enhance and surface 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.
Rye, New York- March 2, 2021 – LICT Corporation (OTC Pink: LICT) announces that 8,700 shares are eligible for our Shareholder Charitable Contribution program for all registered shareholders. Each registered shareholder will be eligible to designate a charity to which the company will make a donation of $100 per share on behalf of the shareholder.
Forms have been mailed to eligible shareholders and must be returned to LICT by March 8, 2021.
LICT’s Board of Directors will make a motion to repeat the program in 2021.
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
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 4 years, LICT has made more than $5.5 million in charitable contributions.
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.
Revenues increased 1.6% to $31.3 from $30.8 million
EPS from operations rose 8% to $325 from $300 per share
Full Year
Revenues rose $6.1 million or 5.2% to $124.1 from $118 million.
EBITDA from operations was $57.6 versus $54.5 million.
EPS from operations rose to $1,343 from $1,248 per share.
(Y)our “S” in ESG-
SHAREHOLDER DESIGNATED CHARITABLE CONTRIBUTION -The Board of Directors approved in November 2020, a $100. per share, registered shareholder designated charitable contribution. If all shares outstanding are registered in the shareholders’ names at the record date, the total contribution would be approximately $2.2 million. Since the inception of LICT’s program in 2016, and counting this current amount, LICT will have contributed charitable gifts of close to $6.5 million to more than 200 501(c)(3) institutions.
Rye, NY – February 18, 2021 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) reports preliminary, unaudited, financial results for the year ended December 31, 2020.
COVID-19 LICT continues to closely monitor developments and is actively taking steps to mitigate the potential risks related to the COVID-19 pandemic to our teammates and our to customers. LICT provides essential voice and data services to the communities we serve. To protect our team while continuing to provide the essential communications services needed to support remote work and remote learning, we adapted installation and repair service processes to limit customer contact and minimize teammate contact. In addition, LICT changed technician dispatch procedures to further limit contact and provided personal protective equipment, including masks, gloves and sanitizing products. Technicians are encouraged to evaluate the safety risks of each in-person installation or repair and reschedule the appointment if he or she determines that circumstances at the location present risk. Office-based teammates continue to work remotely and, for
teammates that work in the company’s offices, masks and social distancing are required. We thank all our teammates for their focus on their communities.
Since the COVID-19 outbreak, LICT has:
Initiated charitable contributions to support members of our community that have been impacted by the economic fallout from the pandemic. Each of LICT’s teammates have contributed to help schools and local charitable organizations support community members effected by COVID-19.
Provided free or discounted services to families to support remote learning.
Set up community Wi-Fi hotspots so community members can stay connected to family, work, and learning
FOURTH QUARTER – In 2020, LICT’s fourth quarter revenues were $31.3 million compared to $30.8 million for the corresponding quarter in 2019. EBITDA was $14.5 million in the fourth quarter of 2020 and 2019. In addition, we received cash of $0.7 million in 2019 from our equity investment in Modoc which was sold at the beginning of 2020.
Non-regulated revenues increased by $2.0 million or 14%, to $16.2 million from the prior year’s $14.2 million, of which about $1.2 million resulted from an increase in sales to our broadband offerings and our video cable modem service. The increased demand for broadband speeds from both new customers as well as existing customers increasing speeds, is partially driven by the continued need for both remote learning and remote work. Non-regulated EBITDA rose just over 25% to $7.3 million, from $5.8 million.
Regulated revenues slipped to $15.1 million in the fourth quarter of 2020 from the prior year’s reported $16.6 million. Regulated EBITDA was $7.2 million compared to $8.8 million last year. The year-to-year decline in regulated revenues and EBITDA is traceable to a fourth quarter 2019 adjustment increasing revenues by $0.8 million related to the cost recovery mechanism reviews.
In the fourth quarter of 2019, LICT completed the sale of its New Hampshire operation, and is treating the results of the New Hampshire operation as a discontinued operation. Also, in the fourth quarter of 2020, LICT completed the sale of its Topeka AWS spectrum license.
FULL YEAR RESULTS – Revenues for 2020 were $124.1 million and EBITDA of $57.6 million compared to 2019 revenues of $118.0 million and EBITDA of $54.5. In addition, we received cash of $0.6 million in 2020 versus $2.5 million in 2019, which is included in Exhibit A.
EARNINGS PER SHARE – Diluted earnings per share from operations during the fourth quarter of 2020 were $325 per share as compared to $300 per share in 2019. The full year diluted earnings per share from operations for 2020 was $1,343, which excludes the $512 for the gain on the sale of Modoc Limited Partnership in January 2020, compared to $1,248 at December 31, 2020. Shares outstanding at December 31, 2020 were 18,533 and 19,188 at December 31, 2019.
ALTERNATIVE – CONNECT AMERICA COST MODEL (“A-CAM”) PROGRAM –All LICT telephone companies have elected to participate in the Federal Communications Commission (“FCC’s”) A-CAM and A-CAM II programs and received $32.1 million in 2020 for A-CAM and A-CAM II revenues.
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.
BALANCE SHEET – LICT benefited from strong cash from operations in addition to the proceeds from the MODOC Partnership sale. At 2020 year-end we had a net cash position 0f $24.1 million up from $3.7 million on December 31, 2019.
2021 OUTLOOK – LICT’s initial guidance for 2021 estimates total 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 non-regulated revenue growth and potentially impact bad debt expense as an economic contraction may impair customers’ ability to purchase and pay for service.
FCC SPECTRUM AUCTIONS – LICT Wireless Broadband Company, LLC (“LICT Wireless”), a wholly owned subsidiary , participated in FCC Auction 105 – CBRS band which ended on August 25, 2020. In this auction, LICT acquired 162 licenses in 78 counties for $4.6 million of spectrum CBRS band licenses.
In Auction 904, also known as Rural Development Opportunity Fund or “RDOF”, which was held October 29, 2020 to November 23, 2020, LICT was awarded 8 census block groups in 3 states. Auction 904 is a part of the Federal Communications Commission’s Universal Service Fund supporting the expansion of broadband internet services to underserved rural areas of the United States.
In addition, LICT Wireless is a qualified bidder in Auction 107- C-Band, which is ongoing.
CAPITAL EXPENDITURES – We continue to focus our capital investments to increase speeds which enables us to better serve our communities for remote work and remote learning, with enhanced broadband speeds through the increase of overall fiber route miles in our network. In the fourth quarter of 2020, capital expenditures were $8.8 million, of which $4.2 million was for non-regulated activities and $4.6 million for regulated activities, bringing our full year capital expenditures to $28.2 million dollars for 2020 compared to $24.9 million in 2019.
As of December 31, 2020, LICT operations deployed 5,211 miles of fiber optic cable, 11,490 miles of copper cable, 762 miles of coaxial cable and 56 towers.
SHARE REPURCHASES – During the twelve months ended December 31, 2020, the Company repurchased 655 shares for $11.0 million, with an average price of $16,821 per share. As of December 31, 2020, 18,533 shares were outstanding.
OPERATING STATISTICS / BROADBAND DEPLOYMENT – As of December 31, 2020, the Company’s broadband penetration in its franchised telephone service territories, based on its total Incumbent Local Exchange Carrier (“ILEC”) voice lines, was 90.8%, as compared to 84.8% at December 31, 2019. The Company’s broadband RGUs grew by 12.5% to just under 40,000 units, outpacing our voice and video line loss resulting in a overall growth of 5.0%. Our capital spending will enable us to meet A-CAM requirements, offer enhanced broadband speeds, and increase the overall fiber route miles in our network. Our summary operating statistics excludes New Hampshire operations, which was sold in 2019, are as follows:
December 31, 2020
December 31, 2019
Increase (Decrease)
Percent Increase (Decrease)
Broadband lines
39,825
35,393
4,432
12.5%
Voice Lines — ILEC — Out of franchise
24,005 7,456
24,520 7,525
(515) (69)
(2.1%) (0.9%)
Total
31,461
32,045
(584)
(1.8%)
Video Subscribers
4,406
4,628
(222)
(4.8%)
Revenue Generating Units
75,692
72,066
3,626
5.0%
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 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 (OTC Pink: LICT) announces today that 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 make a donation of $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 4 years, LICT has made more than $5.5 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 February 12, 2021 to register shares in their own name to participate in the program. Our current plan is to distribute, a charitable contribution form that must be returned to LICT no later than March 8, 2021, 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 $2.2 million.
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.
Revenues increased by 15% to $32.2 million from $28 million.
EBITDA grew 22% to $15.5 million from $12.7 million.
Earnings per share rose to $371 per share versus $263 per share in 2019.
Broadband connections increased by 10% to 39,157 since December 2019 connections of 35,393.
Rye, NY – November 23, 2020 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) reports financial results for the quarter ending September 30, 2020.
LICT continues to closely monitor developments and is actively taking steps to mitigate the potential risks related to the COVID-19 pandemic to the Company, its teammates and its customers. LICT provides essential voice and data services to its customers. To protect its employees while continuing to provide the essential communications services needed to support remote work and remote learning, the Company adapted installation and repair service processes to limit customer contact and minimize teammate contact. In addition, LICT changed technician dispatch procedures to further limit contact and provided personal protective equipment, including masks, gloves and sanitizing products. Technicians are encouraged to evaluate the safety risks of each in-person installation or repair and reschedule the appointment if he or she determines that circumstances at the location present risk. Office-based teammates have been working remotely since the middle of March and, for teammates that work in the company’s offices, masks and social distancing are required. We thank all our teammates for their focus on their communities.
Since the COVID-19 outbreak, LICT companies have:
Providing free or discounted services to families to support remote learning.
Setting up community Wi-Fi hotspots so community members can stay connected to family, work, and learning; and
Committing not to disconnect customers that are unable to pay their bills because of the economic effects of the pandemic.
Initiated charitable contributions to support members of our community that have been impacted by the economic fallout from the pandemic. Each of LICT’s 338 teammates have contributed to help schools and local charitable organizations support community members effected by COVID-19. In addition, during the Second Quarter of 2020 (y)our teammates designated $247,000 to local schools and various charitable organizations within our local communities to support them in dealing with the challenges presented by the Covid-19 pandemic.
SHAREHOLDER DESIGNATED CHARITABLE CONTRIBUTION PROGRAM — As previously mentioned, 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 2019, the company made $100 per share contributions on behalf of its shareholders to their designated charities
THIRD QUARTER RESULTS – In 2020, LICT’s third quarter revenues were $32.2 million compared to $28.0 million for the corresponding quarter in 2019. EBITDA was $15.5 million in the third quarter of 2020 as compared to $12.7 million in the third quarter of 2019. Non-regulated revenues gained 11%, to $15.6 million from the prior year’s $14.0 million resulting from an increase of 7% related to sales of broadband, out of franchise and 3% related to video cable modem revenues. Non-regulated EBITDA rose 15% to $6.8 million, from $5.9 million.
Regulated revenues increased by 18.6% to $16.6 million in the third quarter of 2020 from the prior year’s recorded $14.0 million. Regulated EBITDA was $8.8 million compared to $6.2 million last year. The significant increase in regulated revenues and EBITDA was largely related to the accrual to the net revenue reduction in the amount of $1.8 million in the third quarter of 2019 related to the review of the computation under the cost recovery mechanisms, offset by an incremental $0.6 million for A-CAM
ALTERNATIVE – CONNECT AMERICA COST MODEL (“A-CAM”) PROGRAM – All of LICT’s telephone companies have elected to participate in the Federal Communications Commission (“FCC’s”) A-CAM and A-CAM II programs and will receive $32.1 million in 2020 for A-CAM and A-CAM II revenues.
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.
2020 OUTLOOK – LICT is maintaining its guidance for 2020 with total revenues of $120 – $124 million, EBITDA in the range of $54 to $56 million, and total capital expenditures between $25 and $27 million. We are aware that the effect of the COVID-19 pandemic may impact non-regulated revenue growth and potentially impact bad debt expense as an economic contraction may impair customers’ ability to purchase and pay for service. At the same time, we have seen an increase in the demand for broadband, as we support our communities’ remote work and distance learning needs.
FCC SPECTRUM AUCTIONS – LICT Wireless Broadband Company, LLC (“LICT Wireless”), a wholly owned subsidiary of the Company, participated in FCC Auction 105 – CBRS band which ended on August 25, 2020. In this auction the Company acquired $4.6 million of spectrum CBRS band licenses.
LICT is a qualified bidder in Auction 904 also known as Rural Development Opportunity Fund or RDOF which began on October 29, 2020. Auction 904 is a reverse auction to receive funding as part of the Federal Communications Commission’s Universal Service Fund supporting the expansion of broadband internet services to underserved rural areas of the United States. In addition, LICT Wireless is a qualified bidder for Auction 107 C-Band which is scheduled to begin on December 8, 2020.
CAPITAL EXPENDITURES – In the third quarter of 2020, capital expenditures were $6.4 million, of which $3.3 million was for non-regulated activities and $3.1 million for regulated activities. To expand the Company’s fiber initiatives and provide a high level of broadband to our customers, our plan calls for capital expendituresof $25 – $27 million in 2020. This capital investment enables us to better serve our communities, for remote work and virtual learning with enhanced broadband speeds through the increase of overall fiber route miles in our network.
As of September 30, 2020, LICT operations deployed 5,061 miles of fiber optic cable, 11,478 miles of copper cable, and 757 miles of coaxial cable.
SHARE REPURCHASES – During the nine months ended September 30, 2020, the Company repurchased 515 shares for $8.5 million, with an average price of $16,588 per share. As of September 30, 2020, 18,673 shares were outstanding. On August 5, 2020, LICT Board of Director’s approved a 374 increase to the Company’s share repurchase program. That increase brought the number of approved but not yet repurchased shares to 1,000 as of that date.
OPERATING STATISTICS – As of September 30, 2020, the Company’s broadband penetration in its franchised telephone service territories, based on its total Incumbent Local Exchange Carrier (“ILEC”) voice lines, was 89.6%, as compared to 82.4% at December 31, 2019. During the first nine months of 2020 we have added 3,764 broadband connections bringing our total broadband connections to 39,157.
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 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,
2020
2019
2020
2019
Revenues
$32,183
$28,037
$92,736
$87,145
Cost and Expenses:
Cost of revenue, excluding depreciation
13,739
13,016
40,487
38,225
Selling, general and administration
2,911
2,943
9,186
8,832
Corporate office expenses
1,207
1,086
3,220
3,235
Charitable contributions
—
—
247
—
Depreciation and amortization
4,453
4,669
12,867
14,048
Total Costs and Expenses
22,310
21,714
66,007
64,340
Operating profit
9,873
6,323
26,729
22,805
Other Income (Expense)
Investment income
16
67
283
309
Interest expense
(481)
(289)
(1,269)
(1,107)
Equity in earnings of affiliated companies
—
807
53
1,974
Other
16
7
13,083
2,503
(449)
592
12,150
3,679
Income Before Income Tax Provision
9,424
6,915
38,879
26,484
Provision for Income Taxes
(2,481)
(1,885)
(10,358)
(6,734)
Income from continuing operations
6,943
5,030
28,521
19,750
Income from discontinued operations before taxes
—
92
—
202
Provision for income taxes
—
(18)
—
(33)
Income from discontinued operations after taxes
—
74
—
169
Net Income
$ 6,943
$5,104
$28,521
$19,919
Capital Expenditures
$6,433
$7,048
$19,348
$18,587
Weighted Average Shares:
Basic
18,701
19,388
18,866
19,576
Diluted
18,701
19,423
18,866
19,611
Actual shares outstanding at end of period
18,673
19,320
18,673
19,320
Earnings Per Share: **
Basic
$371
$263
$1,512
$1,018
Dilutive
$371
$263
$1,512
$1,016
** Please note that operating results include cash received from the partial proceeds from the sale of assets by a minority position owned by the Company, $2.5 million in the first quarter of 2019. These proceeds are included in other income-other, on the Income Statement above. The after-tax impact of this item on earnings per share for the nine months ended September 30, 2019 is approximately $94 per share. The gain of $13.1 million stemming from the sale of MODOC added $510 of earnings per share for the nine months ended September 30, 2020.
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
Sept 30,
Dec. 31,
2020
2019
Cash and cash equivalents and short-term investments
$84,313
$28,415
Long-Term Debt (including current portion)
$63,177
$24,678
Liabilities, including taxes, other than debt
$40,475
$35,386
Shareholders’ Equity
$174,323
$154,345
Shares Outstanding at Date
18,673
19,188
EBITDA
Three Months Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
EBITDA
Operating subsidiaries
$15,533
$12,078
$43,063
$40,088
Cash received from equity affiliates
—
662
542
1,787
On-going operating subsidiaries
15,533
12,740
43,605
41,875
Charitable Contributions
—
—
(247)
—
Corporate Office Expense
(1,207)
(1,086)
(3,220)
(3,235)
EBITDA
14,326
11,654
40,138
38,640
Depreciation and amortization
(4,453)
(4,669)
(12,867)
(14,048)
Deduct cash received from equity affiliates
—
(662)
(542)
(1,787)
Operating profit
$9,873
$6,323
$26,729
$22,805
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, as well as non-cash and non-operating charges to earnings. We believe that EBITDA trends are a valuable indicator of whether our operations are able to produce sufficient operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.
EBITDA equals net income (loss), before interest expense, income tax expense (benefit), depreciation and amortization expense, investment income, equity in earnings of affiliated companies, gain (loss) on sale of investment, impairment charges, and net income from discontinued operations. EBITDA also now includes the cash distributions we receive from the equity in earnings of affiliated companies. Although we do not have majority voting control of such companies, we have the ability to significantly influence financial and accounting policies. The inclusion of cash received from equity companies is a change from past practice.
