For Period Ended September 30, 2020
For Period Ended June 30, 2020
For Period Ended March 31, 2020
Rye, NY – May 22, 2020 – LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) reports financial results for the quarter ending March 31, 2020.
COVID-19 RESPONSE – During the first quarter, LICT companies each responded to the COVID-19 pandemic by:
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 make a contribution to that charity. In 2016 through 2019, 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 $5.5 million in charitable contributions.
FIRST QUARTER RESULTS – In 2020, LICT’s reported first quarter revenues increased $1.8 million to $30.0 million compared to $28.2 million for the corresponding quarter in 2019. Reported EBITDA was $13.7 million in the first quarter of 2020, as compared to $12.8 million in the first quarter of 2019.
Non-regulated revenues gained 10.4%, to $14.6 million from the prior year’s $13.2 million due to increased broadband and competitive local exchange carrier (“CLEC”) revenues. Regulated revenues increased by 3.3%, to $15.5 million in the first quarter of 2020, from the prior year’s $15.0 million. This was in large part due to the original A-CAM companies who were below the cap not receiving the incremental A-CAM funding until May of 2019 and by the conversion of LICT’s Wisconsin properties to A-CAM II for an annual increase of $.7 million, which was not received until the third quarter of 2019. Non-regulated EBITDA 15.1% to $6.2 million, from $5.4 million, while regulated EBITDA increase by $0.2 million to $7.6 million from $7.4 million in 2019.
EARNINGS PER SHARE – Diluted earnings per share during the first quarter were $324 per share, excluding the gain on the sale of Modoc in 2020, as compared to $265 per share, excluding gain on sale of equity interest in 2019. The gain stemming from the sale of Modoc added $504 of earnings per share after-tax in the first quarter. Shares outstanding at March 31, 2020 were 19,008 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. In May 2018, the FCC expanded the A-CAM program retroactive to January 1, 2017. Accordingly, in 2018, LICT recorded additional A-CAM revenues of $5.8 million, of which $2.9 million related to the year ended December 31, 2018 and the other half related to 2017.
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.
Key Events during the first quarter:
2020 OUTLOOK – In spite of the COVID-19 pandemic impact on economic conditions in our service areas, LICT is maintaining its guidance for 2020. The company expects to continue its strong financial performance in 2020 with total revenues of $120 to $124 million, EBITDA in the range of $54 to $56 million, and total capital expenditures between $25 and $27 million. The balance sheet is expected to continue to improve throughout 2020 as a result of solid cash generation from operations and cash proceeds from the MODOC Partnership sale. 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. At this time, the Board continues to re-evaluate its acquisition activity and related refinancing alternatives.
CAPITAL EXPENDITURES – In the first quarter of 2020, capital expenditures were $5.0 million, of which $2.2 million was for non-regulated activities and $2.8 million for regulated activities. In order to expand the Company’s non-regulated fiber initiatives and provide a high level of broadband to our customers in the rural areas of the United States, our current plan calls for capital expenditures of between $25 and $27 million in 2020. This capital investment enables us to offer enhanced broadband speeds and increase the overall fiber route miles in our network. As of March 31, 2020, LICT operations deployed 4,697 miles of fiber optic cable, 11,837 miles of copper cable, and 704 miles of coaxial cable.
SHARE REPURCHASES – During the three months ended March 31, 2020, the Company repurchased 180 shares for $3.1 million, with an average price of $17,241 per share. As of March 31, 2020, 19,008 shares were outstanding.
OPERATING STATISTICS – As of March 31, 2020, the Company’s DSL penetration in its franchised telephone service territories, based on its total Incumbent Local Exchange Carrier (“ILEC”) voice lines, was 86.0%, as compared to 80.3% at December 31, 2019. Our summary operating statistics are as follows:
March 31, 2020 | December 31, 2019 | Percent | ||
Increase (Decrease) |
Increase (Decrease) |
|||
Broadband lines | 34,725 | 33,893 | 832 | 2.5% |
Voice Lines | ||||
ILEC | 24,372 | 25,535 | (1,163) | (4.6%) |
CLEC | 7,536 | 7,388 | 148 | 2.0% |
Total | 31,908 | 32,923 | (1,015) | (3.1%) |
Video Subscribers | 4,545 | 4,884 | (339) | (6.9%) |
Revenue Generating Units | 71,178 | 71,700 | (522) | (0.7%) |
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This release contains certain forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation anticipated financial results, financing, capital expenditures and corporate transactions. It should be recognized that such information is based upon certain assumptions, projections and forecasts, including without limitation, business conditions and financial markets, regulatory and other approvals, and the cautionary statements set forth in documents filed by LICT on its website, www.lictcorp.com. As a result, there can be no assurance that any possible transactions will be accomplished or be successful, or that financial targets will be met. Such forward-looking information is subject to uncertainties, risks and inaccuracies, which could be material.
LICT Corporation is a holding company with subsidiaries in broadband and other telecommunications services that actively seeks acquisitions, principally in its existing business areas.
LICT Corporation is listed on the OTC Pink® under the symbol LICT. For further information visit our website at http://www.lictcorp.com.
Contacts: Dan Hopkins, President and CFO
Stephen Moore, Vice President of Finance
914/921-8821
Rye, New York – April 27, 2020 –Salvatore M. Salibello has been appointed to the LICT Corporation Board of Directors and will serve as the Chairman of the Audit Committee. Mr. Salibello is a Certified Public Accountant and a Senior Member of Bright Side Group, LLC. He is the Founder, and served as the Managing Partner, of the certified public accounting firm, Salibello & Broder LLP until its sale to BDO USA, LLP. Mr. Salibello has over forty years of experience in public accounting. He serves on several boards and board committees for investment funds in the Gabelli/GAMCO Fund Complex. He was a director of Nine West, Inc., a group of companies in the ladies’ footwear and accessories business and served as Chairman of its Audit Committee. Mr. Salibello also serves on numerous non-profit boards and is the Chairman of the Board of Directors of John Cabot University, an American university in Rome, Italy.
Mario J. Gabelli, Chairman and Chief Executive Officer of LICT, stated, “We are delighted that Mr. Salibello will be joining the LICT Board of Directors. Sal brings a vast amount of experience to the LICT Board and will fill a key role as Chairman of the Audit Committee. “
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This release contains certain forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, including without limitation anticipated financial results, financing, capital expenditures and corporate transactions. It should be recognized that such information is based upon certain assumptions, projections and forecasts, including without limitation business conditions, financial markets and the cautionary statements set forth in documents filed by LICT on its website, www.lictcorp.com. As a result, there can be no assurance that any possible transactions will be successful or that financial or other targets will be met. Such forward-looking information is subject to uncertainties, risks and inaccuracies, which could be material.
LICT is a holding company with subsidiaries in broadband and other telecommunications services that actively seeks acquisitions, principally in its existing business areas. LICT is listed on the OTC Pink ® under the symbol LICT. For further information, please visit our website listed above.
LICT CORPORATION BOARD OF DIRECTORS HAS APPROVED CHARITABLE GIVING TO HELP OUR COMMUNITIES COPE WITH HEALTH AND ECONOMIC ISSUES RELATED TO COVID-19
Rye, New York – April 14, 2020 – The Board of Directors of LICT Corporation (“LICT” OTC Pink ®: LICT) approved a charitable contribution program in order to help our communities cope with the effects of the Covid-19 pandemic. In particular, each of our 338 teammates, together with their companies are ready, at their option, to work with school districts in our service areas to identify families in need and is donating the needed equipment to get children who are “sheltered at home” back to learning.
LICT is committed to giving back to our communities and over the past four years, LICT has made over $5.5 million in charitable contributions.
In addition to the charitable contributions, LICT is committed to providing high speed connectivity to the businesses and families in need in the communities we serve. During this pandemic, LICT is committed to:
Dan Hopkins, President and Chief Financial Officer of LICT, said “Our mission is to improve the communities that we serve. Our commitment to that mission is even greater in times of crisis when our communities need us more than ever. We understand the critical importance of staying connected to learning and we want to make sure that children have the equipment and connectivity they need so that they don’t fall behind. Our teammates live in the communities we serve, and we believe it is our responsibility to step up and help out when our communities are in need”.
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This release contains certain forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, including without limitation anticipated financial results, financing, capital expenditures and corporate transactions. It should be recognized that such information is based upon certain assumptions, projections and forecasts, including without limitation business conditions, financial markets and the cautionary statements set forth in documents filed by LICT on its website, www.lictcorp.com. As a result, there can be no assurance that any possible transactions will be successful or that financial or other targets will be met. Such forward-looking information is subject to uncertainties, risks and inaccuracies, which could be material.
LICT is a holding company with subsidiaries in broadband and other telecommunications services that actively seeks acquisitions, principally in its existing business areas. LICT is listed on the OTC Pink ® under the symbol LICT. For further information, please visit our website listed above.
LICT Corporation Principal Executive Offices
401 Theodore Fremd Avenue
Rye, New York 10580
Phone: 914/921-8821
Fax: 914/921-6410
Mario J. Gabelli
• Chairman & Chief Executive Officer of LICT Corporation
• Chairman, Chief Executive Officer & Chief Investment Officer of GAMCO Investors, Inc.
Salvatore Muoio
• Managing Member of S. Muoio Co. LLC
Philip J. Lombardo
• Founder and Chief Executive Officer of Citadel Communications
Marc J. Gabelli
• Co-Chairman – GGCP, Inc.
Gary L. Sugarman
• Private Investor & Principle — Richfield Associates FL, Inc.
Salvatore M. Salibello- CPA
• Senior Member of Bright Side Group, LLC.
Robert E. Dolan – CPA
• Former CFO- LICT Corporation
Mario J. Gabelli
• Chairman of the Board & Chief Executive Officer
Evelyn C. Jerden
• Senior Vice President- Regulatory Dynamics
Stephen J. Moore
• Vice President-Finance
2022 Annual Meeting of Shareholders Presentation
Sidoti Fall Conference 2020 Presentation Slides
2018 Annual Meeting of Shareholders (May 21, 2018) Presentation Slides
2018 Shareholder Contribution Program FAQs
2017 Annual Meeting of Shareholders (May 31, 2017) Presentation Slides
Annual Meeting of Shareholders – May 26,2016 Presentation
Stock Price Information:
The Company’s shares are quoted on OTC Pink® under the symbol “LICT”. The Company has approximately 85 stockholders of record. LICT disseminates quarterly and audited annual financial statements as well as press releases to its shareholders and the financial community. Pink Sheets under the symbol LICT.
To obtain additional information regarding LICT Corporation, please contact us via email.