Lumos Networks Corp. ("Lumos Networks" or "the Company") (Nasdaq:LMOS),
a fiber-based service provider of data, voice and IP-based
telecommunication services in the Mid-Atlantic region, today announced
financial results for its fourth quarter of 2013 and the full year 2013.
Total revenue in 2013 was $207.5 million compared to $206.9 million in
2012. Total Adjusted EBITDA in 2013 was $96.3 million versus $88.9
million in 2012. Total revenue for the fourth quarter of 2013 was $51.0
million, compared to $52.7 million for the fourth quarter of 2012 and
$51.6 million in the third quarter of 2013. Total Adjusted EBITDA was
$24.0 million for the fourth quarter of 2013, compared to $23.2 million
in the fourth quarter of 2012 and $23.0 million in the third quarter of
"In 2013, Lumos Networks' strategic data revenue grew by 11.3%
year-over-year, which offset declines in our legacy voice revenue
streams, and overall Adjusted EBITDA grew by 8.4% as a result of
effective expense control. We had sequential strategic data revenue
growth in each quarter of 2013 and for the total year strategic data
revenue accounted for more than 50% of our total revenue," said Mr.
Biltz, President and CEO.
"For 2014, we have targeted year-over-year strategic data revenue growth
in the 6% to 8% range and the same level of overall Adjusted EBITDA as
generated in 2013. Total revenue in 2014 is likely to be marginally down
when compared to 2013 as a result of our legacy voice revenue streams,"
continued Mr. Biltz. "In 2014, we plan to continue to tightly control
expenses while making major investments in our fiber optics network and
expansion markets to enhance our capability to increase fiber bandwidth
revenue from both carrier and enterprise customers. We believe that
these investments will position the Company to increase total revenue
and profitability on an annual run-rate basis as we exit 2014,"
concluded Mr. Biltz.
For the first quarter of 2014, the Company expects revenue to be $50 to
$51 million and Adjusted EBITDA $22.5 to $23 million. For the full year
2014, the Company is introducing guidance of $200 to $204 million for
revenue and $94 to $96 million for Adjusted EBITDA.
Please see the schedules accompanying this release for additional
financial guidance, including reconciliations of non-GAAP measures to
Statements made are based on management's current expectations. These
statements are forward-looking and actual results may differ materially.
Please see "Special Note from the Company Regarding Forward-Looking
A conference call and simultaneous webcast, hosted by Timothy G. Biltz,
CEO, Harold L. Covert, CFO, and Will Davis, Director of Investor
Relations, to review these financial and operational results and
financial guidance will be held at 8:00 A.M. (ET) on February 25, 2014.
The webcast may be accessed via the Internet at http://ir.lumosnetworks.com/
and the live call ("Lumos Networks Fourth Quarter 2013 Earnings
Conference Call") may be accessed with the following numbers:
Domestic: 1-888-317-6016International: 1-412-317-6016Canada:
The conference call will be archived and available for replay through
March 7, 2014 before 5:00 P.M. (ET) and may be accessed with the
Domestic: 1-877-344-7529International: 1-412-317-0088Replay
pass codes: Conference ID: 10041144The webcast will also be
archived and the replay may be accessed at http://ir.lumosnetworks.com/.
About Lumos Networks
Lumos Networks is a fiber-based service provider in the Mid-Atlantic
region serving carrier, business and residential customers over a dense
fiber network offering data, voice and IP services. With headquarters in
Waynesboro, VA, Lumos Networks serves Virginia, West Virginia and
portions of Pennsylvania, Kentucky, Ohio, and Maryland over a fiber
network of 7,414 fiber route miles. Detailed information about Lumos
Networks is available at www.lumosnetworks.com.
Adjusted EBITDA is defined as net income attributable to Lumos Networks
before interest, income taxes, depreciation and amortization, accretion
of asset retirement obligations, net income or loss attributable to
noncontrolling interests, other expenses/income, equity-based
compensation charges, acquisition-related charges, amortization of
actuarial losses on retirement plans, employee separation charges,
restructuring-related charges, gain or loss on settlements and gain or
loss on interest rate derivatives. Adjusted EBITDA margin is calculated
as the ratio of Adjusted EBITDA, as defined, to operating revenues.
Adjusted EBITDA is a non-GAAP financial performance measure. It should
not be considered in isolation or as an alternative to measures
determined in accordance with GAAP. Please refer to the schedules herein
and our SEC filings for a reconciliation of these non-GAAP financial
performance measures to the most comparable measures reported in
accordance with GAAP and for a discussion of the presentation,
comparability and use of such financial performance measures.
SPECIAL NOTE FROM THE COMPANY REGARDING FORWARD-LOOKING STATEMENTS
Any statements contained in this presentation that are not statements of
historical fact, including statements about our beliefs and
expectations, are forward-looking statements and should be evaluated as
such. The words "anticipates," "believes," "expects," "intends,"
"plans," "estimates," "targets," "projects," "should," "may," "will" and
similar words and expressions are intended to identify forward-looking
statements. Such forward-looking statements reflect, among other things,
our current expectations, plans and strategies, and anticipated
financial results, all of which are subject to known and unknown risks,
uncertainties and factors that may cause our actual results to differ
materially from those expressed or implied by these forward-looking
statements. Many of these risks are beyond our ability to control or
predict. Because of these risks, uncertainties and assumptions, you
should not place undue reliance on these forward-looking statements.
Furthermore, forward-looking statements speak only as of the date they
are made. We do not undertake any obligation to update or review any
forward-looking information, whether as a result of new information,
future events or otherwise. Important factors with respect to any such
forward-looking statements, including certain risks and uncertainties
that could cause actual results to differ from those contained in the
forward-looking statements, include, but are not limited to: rapid
development and intense competition in the telecommunications and high
speed data transport industry; our ability to offset expected revenue
declines in legacy voice and access products related to the recent
regulatory actions, wireless substitution, technology changes and other
factors; our ability to effectively allocate capital and implement our
"edge-out" expansion plans in a timely manner; our ability to complete
customer installations in a timely manner; adverse economic conditions;
operating and financial restrictions imposed by our senior credit
facility; our cash and capital requirements; declining prices for our
services; our ability to maintain and enhance our network; the potential
to experience a high rate of customer turnover; federal and state
regulatory fees, requirements and developments; our reliance on certain
suppliers and vendors; and other unforeseen difficulties that may occur.
These risks and uncertainties are not intended to represent a complete
list of all risks and uncertainties inherent in our business, and should
be read in conjunction with the more detailed cautionary statements and
risk factors included in our SEC filings, including our Annual Reports
filed on Forms 10-K and our Quarterly Reports filed on Forms 10-Q.
Basic and Diluted Earnings per Common Share Attributable toLumos
Networks Corp. Stockholders:
For the year ended December 31, 2012, selling, general and
administrative expenses include a $2.3 million charge related to
the recognition of employee separation benefits which were
provided for in the separation agreement of an executive officer
who left the Company in April 2012.
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