Attached files
| file | filename |
|---|---|
| 8-K - FORM 8K - Enventis Corp | form8-k.htm |
Investor Update
Third Quarter 2009
Earnings Conference Call
Earnings Conference Call
October 29, 2009
NASDAQ: HTCO
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Information set forth in this presentation contains financial estimates
and other forward-looking statements that are subject to risks and
uncertainties; therefore, actual results might differ materially from such
statements, whether as a result of new information, future events or
otherwise. You are cautioned not to place undue reliance on these
forward-looking statements. A discussion of factors that may effect
future results is contained in HickoryTech’s filings with the Securities
and Exchange Commission. HickoryTech disclaims any obligation to
update and revise statements contained in this presentation based on
new information or otherwise.
and other forward-looking statements that are subject to risks and
uncertainties; therefore, actual results might differ materially from such
statements, whether as a result of new information, future events or
otherwise. You are cautioned not to place undue reliance on these
forward-looking statements. A discussion of factors that may effect
future results is contained in HickoryTech’s filings with the Securities
and Exchange Commission. HickoryTech disclaims any obligation to
update and revise statements contained in this presentation based on
new information or otherwise.
Forward Looking Statement
HTCO | Q3-09 Earnings | 10.29.09
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Third Quarter 2009 Highlights
Increased cash position, release of income tax reserves,
and strong balance sheet
and strong balance sheet
•Company reported total revenue of $34.9 M
•Net Income totaled $6.1 M, or $0.47 per diluted share
- Net Income included a release of income tax reserves of $4.4 M
•Operating income of $4.7 M
•Enventis Sector transport services revenue increased 37% to $8.8 M
•Telecom Sector broadband revenue grew 12% totaling $3.1 M
HTCO | Q3-09 Earnings | 10.29.09
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Total Company Results
Note: Net income in Q3-09 included a $4.4 M release of income tax reserve.
HTCO | Q3-09 Earnings | 10.29.09
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Telecom Sector Results
HTCO | Q3-09 Earnings | 10.29.09
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Telecom Network Access Revenue
*Q2-2007 network access revenue includes $1.9 million IXC settlement.
Note: Q3-07 and Q3-09: Interstate rate change/decreases effective.
*IXC Settlement
HTCO | Q3-09 Earnings | 10.29.09
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Enventis Sector
Results
Results
Note: Numbers prior to inter-segment eliminations.
HTCO | Q3-09 Earnings | 10.29.09
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Enventis Product Line Results
Note: Numbers prior to inter-segment eliminations.
HTCO | Q3-09 Earnings | 10.29.09
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Enventis Revenue
$2.2M
$8.8 M
$6.6 M
2006 2007 2008 2009
HTCO | Q3-09 Earnings | 10.29.09
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Operating Cash Flow: 2009 YTD
Dividend Payout
Ratio is 44%
of Operating
Cash Flow
of Operating
Cash Flow
(Dollars in Millions)
Note1 Debt Service includes interest expense and mandatory principal repayments.
HTCO | Q3-09 Earnings | 10.29.09
$11.5 M
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Company management believes EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), a non-GAAP financial
measure, provides useful information regarding the Company’s debt position, its cash flow, and its overall valuation.
measure, provides useful information regarding the Company’s debt position, its cash flow, and its overall valuation.
HTCO | Q3-09 Earnings | 10.29.09
Company management believes Net Income minus the income tax reserve release, a non-GAAP financial measure, provides
useful information regarding the Company’s overall operating results.
useful information regarding the Company’s overall operating results.
Reconciliation of Non-GAAP Financial
Measures
Measures
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CP Telecom Acquisition
HickoryTech Corporation closed Aug. 1, 2009 on its acquisition of
CP Telecom, a facilities-based telecommunications provider,
serving Minneapolis, St. Paul and northern Minn.
CP Telecom, a facilities-based telecommunications provider,
serving Minneapolis, St. Paul and northern Minn.
•$6.6 M final acquisition price
•Strategic initiative to expand SMB focus and product line
•Increases fiber capacity in Minneapolis and St. Paul through long-term
leases, adds network colocations and strategic Points of Presence
leases, adds network colocations and strategic Points of Presence
•Expands sales agent distribution channel
•Projected synergies through off-net circuit migration to HT network,
billing system conversion, agent sales channel
billing system conversion, agent sales channel
•2008 unaudited fiscal revenue was $10 million
•36 employees based in Duluth and Minneapolis
HTCO | Q3-09 Earnings | 10.29.09
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Company management believes EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), a non-GAAP financial
measure, provides useful information regarding the Company’s debt position, its cash flow, and its overall valuation.
Reconciliation of Non-GAAP Financial
Measures
Measures
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Summary
Consistent Operating Results, Increased Cash Position
• Strong growth in Enventis transport services
• Continued Telecom stability and broadband growth
• Increased cash position, strong balance sheet
• Clear focus on growing business-to-business services
• Successful close of CP Telecom acquisition
HTCO | Q3-09 Earnings | 10.29.09
Focused on creating shareholder value.
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HickoryTech Network and Service
Area
Area
2,400 fiber optic miles