Corporation (NASDAQ:HTCO) today reported fourth quarter revenue of
$46.2 million. Net income for the fourth quarter totaled $1.9 million,
and earnings per share totaled $0.14 per diluted share.
"For the quarter and full year we delivered strong Fiber and Data
revenue growth, a key objective in our plan to expand fiber access
networks and further diversify our company's revenue stream," said John
Finke, HickoryTech's president and chief executive officer. "More than
three-fourths of our revenue is from business and broadband services and
our Fiber and Data segment revenue is now larger than our Telecom
Segment revenue, signifying Enventis' strong position as a leading
business and broadband provider. Looking forward, we are focused on
increasing our profitability, growth in strategic business services and
delivering the best customer experience through a unified brand."
Fiber and Data Segment (before inter-segment eliminations)
Equipment Segment (before inter-segment eliminations)
Telecom Segment (before inter-segment eliminations)
Total Company Capex, Depreciation and AmortizationCapital
expenditures in the fourth quarter totaled $7.2 million, which is down
from $11.5 million of capital expenditures in the fourth quarter 2012.
Depreciation and amortization expense increased $596,000 or 9 percent in
the fourth quarter, primarily attributed to investments in capital
expenditures associated with fiber network expansion and funding of
success-based projects associated with routine capital expenditures to
enhance our network.
Consolidated Fiscal 2013 Results
Debt PositionLong-term debt and current maturities,
including capitalized leases, totaled $135.2 million at Dec. 31, 2013.
The 2013 debt balance represents a year-over-year decrease of $1.6
million as a result of operating cash flow applied to ongoing debt
In the fourth quarter, the company closed on an amendment to its credit
facility, which provides financing for six years through December 31,
2019, a reduction in interest costs, and expanded terms and features
within the agreement. The Company has an unused revolving credit line of
$30 million within the credit facility, and access to additional term
debt for acquisitions.
DividendHickoryTech increased its fourth quarter 2013
dividend 3.4 percent to $0.15 cents per share of HickoryTech common
stock, representing the company's fifth dividend increase in the past
six years. The company declared the first quarter 2013 dividend of $0.15
payable March 5. HickoryTech has paid a cash dividend to shareholders
for more than 65 years.
"The strong free cash flow generated across our business segments allows
us to invest in strategic growth initiatives, pay down debt and pay a
shareholder dividend," added Finke. "Being a vibrant communications
provider for more than a century requires adaptability, stability and
commitment. We believe we are well positioned to deliver shareholder and
customer value. As the next step in our unified brand strategy, we will
ask for shareholder approval on our 2014 proxy to change our corporate
name to Enventis Corporation aligning our service brand and corporate
Fiscal Outlook for 2014The Company expects revenue in 2014
to be within a range of $189 million to $199 million. Net income is
expected to be in a range of $6.4 million to $8.4 million. EBITDA is
expected to be in a range of $47.0 to $49.5 million. Capital
expenditures are expected to be $24 million to $28 million with
approximately 60 percent of capex expected for success-based
opportunities. The company expects its year-end 2014 debt balance to be
in a range of $133 million to $135 million.
Conference Call and WebcastHickoryTech will hold a
conference call and webcast on Tuesday, March 4 at 9 a.m. CT to review
the company's fourth quarter and fiscal 2013 results. The conference
call dial-in number is 877-372-0867, conference ID 59515217. A
simultaneous webcast with audio and presentation will be available at http://investor.hickorytech.com.
About HickoryTech CorporationHickoryTech Corporation is a
leading communications provider serving business and residential
customers in the upper Midwest and is doing business as Enventis. With
headquarters in Mankato, Minn., the corporation has 520 employees and an
expanded, multi-state fiber network spanning more than 4,200 route miles
serving Minnesota, Iowa, North Dakota and South Dakota. The company
provides IP-based voice and data solutions, MPLS networking, data center
and managed hosted services and communication systems to businesses
across a five-state region. The company also offers broadband Internet,
Digital TV, voice and data services to businesses and consumers in
southern Minnesota and northwest Iowa. The Company trades on the NASDAQ,
and is a member of the Russell 2000 Index. For more information, visit www.enventis.com.
Non-GAAP MeasuresTo supplement the Company's financial
statements presented in accordance with GAAP, the Company provides
certain non-GAAP financial measures of financial performance and
position. The Company's reference to these non-GAAP measures should be
considered in addition to results prepared under current accounting
standards, but are not a substitute for, or superior to, GAAP results.
These non-GAAP measures are provided to enhance investors' overall
understanding of the Company's current financial performance, financial
position and ability to generate cash flows. In many cases non-GAAP
financial measures are used by analysts and investors to evaluate the
Company's performance and financial position. Reconciliation to the
nearest GAAP measure included in this press release can be found in the
financial table included below.
Forward-looking statementCertain statements included in
this press release that are not historical facts are "forward-looking
statements." Such forward-looking statements are based on current
expectations, estimates and projections about the industry in which
HickoryTech operates and management's beliefs and assumptions. The
forward-looking statements are subject to uncertainties. These
statements are not guarantees of future performance and involve certain
risks, uncertainties and probabilities. Therefore, actual outcomes and
results may differ materially from what is expressed or forecasted in
such forward-looking statements. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the
date on which they were made. HickoryTech undertakes no obligation to
update any of its forward-looking statements, except as required by law.
Three Months EndedDecember 31
Twelve Months EndedDecember 31
December 31, 2012
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