Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Enventis Corp | form8k.htm |
Exhibit 99.1
Investor Overview
Sidoti Conference
January 2012
Sidoti Conference
January 2012
NASDAQ: HTCO
Safe Harbor Statement
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. This presentation also contains certain
non-GAAP financial measures. Reconciliations of these non-GAAP
measures to the most directly comparable GAAP measures are
available in our presentation.
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. This presentation also contains certain
non-GAAP financial measures. Reconciliations of these non-GAAP
measures to the most directly comparable GAAP measures are
available in our presentation.
Founded in 1898 as Mankato Citizens Telephone Company
Named by Forbes as one of best 100 small companies
in America
in America
Employees: 460
Shares outstanding: 13.4 million, Market Cap: $152 million
NASDAQ: HTCO, 52-week range: $8.15 - $12.45
2010 Revenue: $162 million
Service Area: Minn., Iowa, No Dakota, So. Dakota, Wisc.
a leading communications
service provider
service provider
Transforming HickoryTech
Enventis
Acquisition
Acquisition
CP Telecom
Acquisition
Acquisition
Greater MN
Broadband
Collaborative
Project
Initiated
Broadband
Collaborative
Project
Initiated
Close on IdeaOne
Acquisition
Acquisition
Phase 2 of Broadband
Project fiber build
Building a Regional
Communications Company…
Communications Company…
Fiber network
expansion to
So. Dakota,
No. Dakota
expansion to
So. Dakota,
No. Dakota
Building a Regional
Communications Company
• IdeaOne acquisition will add extensive
Fargo, No Dakota metro network,
adds 225 fiber route miles
Fargo, No Dakota metro network,
adds 225 fiber route miles
• Greater Minnesota Broadband Project adds
430 fiber route miles
430 fiber route miles
Extensive Five-state network currently
includes 3,250 fiber route miles
includes 3,250 fiber route miles
Key Strategic Initiatives
Strategic Growth through organic and external growth
Diverse Customer Base and Services
Customers range from national carrier to residential
IdeaOne Acquisition (pending)
|
|
|
|
Transaction Price
|
$28 million, cash transaction with routine
adjustments for capital expenditures and working capital adjustments |
|
Financing Structure
|
Use existing liquidity through cash reserves
and term debt under existing credit facility |
|
Closing Conditions
|
Regulatory approvals from State (North
Dakota and Minnesota) and Federal (FCC) levels |
|
Anticipated Closing Date
|
End of First Quarter 2012
|
|
Approximate Transaction
Multiples |
2.3x estimated 2011 IdeaOne Revenue
5.8x estimated 2011 IdeaOne EBITDA |
News and Events
70% of YTD 2011 revenue is from Business & Broadband Services
Increased Revenue Diversification
2011 YTD revenue includes Q1, Q2, Q3
2006
2011 YTD
Dividend Return
• More than 60 years of recurring dividend payments
• Increased dividend in 2010 and 2011
• Q4-2011 dividend increased to $0.14 per share, +4%
2011 annual dividends will total $0.545 per share
• Dividend yield range: 5-6%
2010 Free Cash Flow
Free Cash Flow = $9.4 M
Dividend Payout is
73% of $9.4 M
73% of $9.4 M
($ in Millions)
Growth Goal: Double Value
HickoryTech Strengths
Diverse revenue streams / markets, emerging
growth through business revenue stream and fiber
network expansion
growth through business revenue stream and fiber
network expansion
More than 60 years of dividend return, yield 5-6%
Increased dividend in 2011 and 2010
Experienced company with 114-year track record
of financial stability
of financial stability
Strong cash flow, strong balance sheet,
high level of recurring revenue
high level of recurring revenue
Focused on doubling the value of HickoryTech by
growing EBITDA, strategic services, managing debt
growing EBITDA, strategic services, managing debt
Questions
NASDAQ: HTCO
Appendix
• Greater Minnesota Broadband Project
• 2011 Fiscal Outlook
• Q3-2011 Highlights
• Revenue Diversification
• Debt Balance
• Reconciliation
• $24 M project funded with
$16.8 M NTIA Grant Award and
$7.2 M HickoryTech investment
$16.8 M NTIA Grant Award and
$7.2 M HickoryTech investment
• Construction of 430 fiber optic
miles includes two northern routes
miles includes two northern routes
• Partners: education, health care
and state/government entities
and state/government entities
Middle-mile project will add high-
capacity fiber network throughout rural
Minn. and connect anchor institutions
capacity fiber network throughout rural
Minn. and connect anchor institutions
2011 Fiscal Outlook Increased
2011 Guidance increased in third quarter earnings released Nov. 1, 2011
Q3-2011 Highlights
• Revenue totaled $45.2 million, +4%
– Equipment revenue up 43%
– Fiber and data organic revenue growth of 14%
– Broadband revenue grew 5%
• New favorable financing agreement secured
• Increased fiscal 2011 outlook
• Increased quarterly dividend 4% to $0.14 per share
• HickoryTech named one of Forbes 100 Best Small Companies
70% of YTD 2011 revenue is from Business Sector & Broadband Services
Revenue Diversification
Pie includes Q1-Q3 2011 revenue
Debt Balance
New senior debt agreement secured in Q3-11
• Q3-11 net debt was $109.3 M,
down $9.6 M from 12/31/10
down $9.6 M from 12/31/10
Reconciliation
Reconciliation
(Dollars in thousands)