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.
Rye, NY – November 12, 2020 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) has closed the sale of its 10 MHz AWS Federal Communications Commission (FCC) License in the Topeka, Kansas Basic Trading Area. LICT had announced the signing of a definitive agreement for this transaction on August 14, 2020.
This transaction monetized an FCC license which was a non-core asset of our business. The proceeds from this sale will further strengthen the financial condition and liquidity of LICT.
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.
Rye, New York – October 7, 2020 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) announces today, that Mr. Matthew Favre, has been appointed to the newly created position of Senior Vice President- Broadband of LICT as of January 1, 2021.
Mr. Favre will be responsible for the growth and increased development of the Company’s broadband products.
Mr. Favre joined LICT in 2017, serving as President and General Manager of Western New Mexico Telephone Company.
Matt has had a distinguished career in the Cable and Telecommunications industries. Before joining LICT at the Company’s Western New Mexico operation, Matt spent 14 years with Charter Communications including as GM of Georgia/Alabama.
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.
Rye, NY – September 3, 2020 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) is privileged to announce today that Robert E. Dolan has agreed to re-join the Company in an active consulting role overseeing the operations and financial teams while we search for a Chief Operating Officer. Mr. Dolan has served the Company for 29 years in various capacities, including, Chief Executive Officer, Chief Financial Officer and Executive Vice President. Mr. Dolan will continue to serve on the Company’s Board of Directors.
The Company is also announcing that Daniel E. Hopkins has resigned and will be leaving the Company effective October 2020. Mr. Hopkins has been serving the Company as President and Chief Financial Officer since November of 2019.
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.
Rye, NY – August 14, 2020 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) is announcing the signing of a definitive agreement to sell its 10 MHz AWS Federal Communications Commission (FCC) License in the Topeka, Kansas Basic Trading Area.
The transaction is subject to FCC consent and is expected to close in the fourth quarter of 2020 or the first quarter of 2021.
Dan Hopkins, President and Chief Financial Officer of LICT said, “We are pleased to announce this transaction to monetize an FCC license which is a non-core asset of the business. The proceeds from this asset sale will further strengthen the financial condition and liquidity of LICT.”
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.
Rye, NY – August 6, 2020 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) reports financial results for the quarter ending June 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 with other teammates. 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 of our teammates for their focus on their communities.
At the beginning of the COVID-19 outbreak, LICT companies each responded by:
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;
Committing not to disconnect customers that are unable to pay their bills because of the economic effects of the pandemic; and
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.
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 2019, the Company made $100 per share contributions on behalf of its shareholders to their designated charities. 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.
SECOND QUARTER RESULTS – In 2020, LICT’s second quarter revenues were $30.5 million compared to $30.9 million for the corresponding quarter in 2019. EBITDA was $13.8 million in the second quarter of 2020 as compared to $15.2 million in the second quarter of 2019.
Non-regulated revenues gained 11.0%, to $15.0 million from the prior year’s $13.5 million resulting from increased sales of broadband and competitive local exchange carrier (“CLEC”) revenues. Non-regulated EBITDA rose 14.1% to $6.5 million, from $5.7 million. Regulated revenues were $15.5 million in the second quarter of 2020 from the prior year’s recorded $17.4 million, which included an incremental $1.1 million for A-CAM. Regulated EBITDA was $7.3 million compared to $9.6 million last year which included $1.1 million of incremental
Equity in earnings of affiliated companies (Modoc)
26
Charitable Contributions
10
Reductions in other Regulated Revenues
4
Total EPS change
$84
Shares outstanding at June 30, 2020 were 18,719 versus 19,188 at December 31, 2019.
ALTERNATIVE – CONNECT AMERICA COST MODEL (“A-CAM”) PROGRAM – Effective January 1, 2017, ten of LICT’s rural telephone companies elected to participate in the Federal Communications Commission’s (“FCC”) A-CAM program. The A-CAM program is designed to increase speed and expand the deployment of broadband capabilities throughout the nation’s rural areas and replaced two prior Universal Service Fund (“USF”) mechanisms for companies electing A-CAM. On February 25, 2019, the FCC further expanded the A-CAM program for those companies whose support was initially capped and offered LICT companies an additional $4.6 million in annual A-CAM funding, retroactive to January 1, 2019. With this latest increase, these capped companies have now been offered the fully funded support contemplated by the initial A-CAM program. In addition, the FCC extended the A-CAM annual support payments, for all A-CAM companies, capped and uncapped, for two additional years to December 31, 2028. Acceptance of these additional years requires the companies to provide a higher threshold of speed to a greater number of locations. The Company’s subsidiaries have accepted this A-CAM expansion program and are building out and upgrading their networks to meet the additional requirements.
On May 2, 2019, the FCC further expanded the A-CAM program, referred to as A-CAM II, to companies still receiving legacy USF support, HCLS and ICLS, in their service territories. LICT’s two Wisconsin companies elected to participate and received $1.1 million in annual A-CAM II funding for the full year ending December 31, 2019. The Company’s subsidiaries received the 2019 year to date incremental funding in the 3rd quarter of 2019. As of 2019, all of LICT’s rural telephone companies have elected A-CAM or A-CAM II regulation and all will receive the support through 2028. A-CAM and A-CAM II revenues were $32.3 million in 2019.
2020 OUTLOOK – Economic conditions in our service areas demand for broadband services remain robust and, as a result, LICT is maintaining its guidance for 2020. The Company expects to continue its strong financial performance in 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. The effect of the COVID-19 pandemic may impact non-regulated revenue growth and potentially impact bad debt expense as the economic contraction may impair customers’ ability to purchase and pay for service.
GROWING THE COMPANY – The Board of Directors and management have implemented measures which have improved liquidity and reduced the Company’s debt position.
FCC SPECTRUM AUCTIONS – The Company has applied to participate in two FCC auctions in 2020: Auction 105 – CBRS band and Auction 904 also known as Rural Development Opportunity Fund or RDOF. Auction 105, for which our application has been accepted, began on July 23, 2020 and is ongoing. Auction 904 is a reverse auction to receive funding as part of the Federal Communications Commission’s Universal Service Fund. The objective of Auction 904 is to provide funding for the expansion of broadband internet services to underserved rural areas of the United States. Bidding in Auction 904 is anticipated to begin on October 29, 2020.
These auctions cover areas within LICT’s service areas providing LICT with opportunities to bring broadband to underserved rural communities within and outside of our subsidiaries’ operations.
CAPITAL EXPENDITURES – In the second quarter of 2020, capital expenditures were $7.8 million, of which $4.8 million was for non-regulated activities and $3.1 million for regulated activities. In order to expand the Company’s fiber initiatives and provide a high level of broadband to our customers, our current plan calls for capital expenditures of $25 million – $27 million in 2020. This capital investment enables us to offer enhanced broadband speeds and will increase the overall fiber route miles in our network.
As of June 30, 2020, LICT operations deployed 5,019 miles of fiber optic cable, 11,470 miles of copper cable, and 752 miles of coaxial cable.
SHARE REPURCHASES – During the six months ended June 30, 2020, the Company repurchased 469 shares for $7.7 million, with an average price of $16,470 per share. As of June 30, 2020, 18,719 shares were outstanding.
OPERATING STATISTICS – As of June 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 84.4%, as compared to 82.2% at December 31, 2019.
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
Six Months Ended
June 30,
June 30,
2020
2019
2020
2019
Revenues
$30,507
$30,865
$60,553
$59,048
Cost and Expenses:
Cost of revenue, excluding depreciation
13,350
12,570
26,748
25,149
Selling, general and administration
3,176
3,072
6,275
5,889
Corporate Office Expenses
1,063
1,127
2,013
2,149
Charitable Contributions
247
—
247
—
Depreciation and amortization
4,074
4,500
8,414
9,379
Total Costs and Expenses
22,110
21,269
43,697
42,566
Operating profit
8,397
9,596
16,856
16,482
Other Income (Expense)
Investment income
154
68
267
242
Interest expense
(486)
(386)
(788)
(818)
Equity in earnings of affiliated companies
—
664
53
1,167
Other
25
3
13,067
2,496
(307)
349
12,599
3,087
Income Before Income Tax Provision
8,090
9.945
29,455
19,569
Provision for Income Taxes
(2,323)
(2,300)
(7,877)
(4,849)
Income from continuing operations
5,767
7,645
21,578
14,720
Income from discontinued operations before taxes
—
71
—
110
Provision for income taxes
—
(5)
—
(15)
Income from discontinued operations after taxes
—
66
—
95
Net Income
$ 5,767
$7,711
$21,578
$14,815
Capital Expenditures
$7,842
$6,654
$12,899
$11,501
Weighted Average Shares:
Basic
18,593
19,581
18,593
19,672
Diluted
18,593
19,616
18,593
19,707
Actual shares outstanding at end of period
18,719
19,544
18,719
19,544
Earnings Per Share: **
Basic Net Income
$307
$391
$1,139
$748
Dilutive Earnings Per Share
$307
$390
$1,139
$747
** 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 first half of 2019 is approximately $93 per share. The gain of $13.1 million stemming from the sale of MODOC added $504 of earnings per share in the first half of 2020.
See EBITDA on page 2
LICT Corporation Exhibit A Statements of Operations and Selected Balance Sheet Data-Continued Page 2 of 2 (In Thousands, Except Per Share Data)
SELECTED BALANCE SHEET DATA
June 30,
Dec. 31,
2020
2019
Cash and Cash Equivalents
$84,544
$8,415
Other short-term investments
2,000
20,000
Long-Term Debt (including current portion)
63,117
24,678
Liabilities, including taxes, other than debt
$42,463
$35,386
Shareholders’ Equity
$168,199
$154,345
Shares Outstanding at Date
18,719
19,188
EBITDA
EBITDA is an established measure of operating performance and liquidity that is commonly reported and widely used by analysts, investors, and other interested parties in the telecommunications industry because it eliminates many differences in financial, capitalization, and tax structures, 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.
