Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - NTS, INC. | nts_8k.htm |
| EX-99.2 - FTTP TRENDLINE CHARTS REFERRED TO IN PRESS RELEASE DATED MARCH 22, 2013 - NTS, INC. | nts_ex992.htm |
| EX-99.1 - PRESS RELEASE DATED MARCH 22, 2013 - NTS, INC. | nts_ex991.htm |
EXHIBIT 99.3
4Q FY2012
Financial Results
CONFERENCE
CALL
CALL
Presenters
2
• Guy Nissenson, President & CEO
• Niv Krikov, CFO
Safe Harbor Statement
This presentation may contain forward-looking statements. The words or phrases "would be", "will allow", "should“, "intends to",
"will likely result", "are expected to", "will continue", "is anticipated", "estimate", "plan", "project", or similar expressions are
intended to identify "forward-looking statements". Actual results could differ materially from those projected in the forward-looking
statements as a result of a number of risks and uncertainties. These risks and uncertainties include issues related to the ability to:
obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new
agreements; issues related to rapidly changing technology and evolving standards in the industries in which the Company and its
subsidiaries operate; the Company’s ability to compete effectively and adjust to rapidly changing market dynamics; the unpredictable
nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and/or registration
statement. In addition, these and other factors may cause financials results to fluctuate from one financial quarter to another.
Statements made herein are as of the date of this presentation and should not be relied upon as of any subsequent date. The
Company cautions not to place undue reliance on such statements. Unless otherwise required by applicable law, we do not
undertake, and we specifically disclaim any obligation, to update any forward-looking statements to reflect occurrences,
developments, unanticipated events or circumstances after the date of such statement. You should carefully review the risks and
uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange
Commission.
"will likely result", "are expected to", "will continue", "is anticipated", "estimate", "plan", "project", or similar expressions are
intended to identify "forward-looking statements". Actual results could differ materially from those projected in the forward-looking
statements as a result of a number of risks and uncertainties. These risks and uncertainties include issues related to the ability to:
obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new
agreements; issues related to rapidly changing technology and evolving standards in the industries in which the Company and its
subsidiaries operate; the Company’s ability to compete effectively and adjust to rapidly changing market dynamics; the unpredictable
nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and/or registration
statement. In addition, these and other factors may cause financials results to fluctuate from one financial quarter to another.
Statements made herein are as of the date of this presentation and should not be relied upon as of any subsequent date. The
Company cautions not to place undue reliance on such statements. Unless otherwise required by applicable law, we do not
undertake, and we specifically disclaim any obligation, to update any forward-looking statements to reflect occurrences,
developments, unanticipated events or circumstances after the date of such statement. You should carefully review the risks and
uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange
Commission.
3
Recent Progress: 4Q12
4
• Continued steady revenue growth
– Fiber revenues grew 34.8% to $4.9 million
– Total revenues increased 1.6% to $14.9
million
million
• EBITDAS grew 26.8% to $3.2 million
• 1Q13: Began signing customers in Iowa
Park, TX
Park, TX
• 1Q13 significantly outpacing 4Q in new
customer additions
customer additions
– 608 customers added in first 2 months of
1Q13
1Q13
|
|
2012
|
2011
|
|
2012
|
2011
|
|
Revenues
Services on FTTP Network
Growth Rate
|
$ 4,878
34.8%
|
$ 3,619
|
|
$ 18,220
39.9%
|
$ 13,023
|
|
|
|||||
|
Leased loop services &other
Growth Rate
|
$ 10,058
-9.2%
|
$ 11,081
|
|
$ 41,650
-6.7%
|
44,635
|
|
Total Revenues
Growth Rate
|
$ 14,936
1.6%
|
$ 14,700
|
|
$ 59,870
3.8%
|
$ 57,658
|
|
Expenses
Cost of Services
% of Sales
|
6,812
45.6%
|
7,101
48.3%
|
|
27,490
45.9%
|
28,026
48.6%
|
|
|
|||||
|
SG&A Expenses
% of Sales
|
5,064
33.9%
|
5,310
36.1%
|
|
20,802
34.7%
|
21,040
36.5%
|
|
Depreciation & Amortization
|
1,475
|
1,501
|
|
6,274
|
5,351
|
|
Financing expense, net
|
1,666
|
549
|
|
5,551
|
3,380
|
|
Total Expenses
% of Sales
|
15,256
102.1%
|
14,924
101.5%
|
|
60,804
101.6%
|
58,667
101.8%
|
|
Net Income (loss)
|
(249)
|
(587)
|
|
(547)
|
(1,167)
|
|
Basic & diluted income (loss)
per share |
$ (0.01)
|
$ (0.02)
|
|
$ (0.01)
|
$ (0.05)
|
|
Basic & diluted weighted
averaged number of shares
|
41,186,596
|
24,363,212
|
|
41,186,596
|
24,363,212
|
|
EBITDAS
|
$ 3,200
|
$ 2,524
|
|
$ 11,862
|
$ 8,992
|
|
% of sales
|
21.4%
|
17.2%
|
|
19.8%
|
15.6%
|
Income Statement
(in thousands, except per share data)
Quarter Ended December 31,
Year Ended December 31,
5
Balance Sheet Highlights
6
|
|
As of 12/31/12
|
As of 12/31/11
|
|
Current Assets
|
|
|
|
Cash
|
$ 3,909
|
$ 6,564
|
|
Accounts receivable, net
|
5,157
|
3,762
|
|
Prepaid expenses and other receivables
|
3,809
|
2,577
|
|
Total Current Assets
|
13,912
|
13,680
|
|
Bond Issuance Costs, Net
|
854
|
1,143
|
|
Fixed Assets, Net
|
89,468
|
71,250
|
|
Total Assets
|
$ 108,483
|
$ 91,527
|
|
Current Liabilities
|
|
|
|
Short-term bank credit and current maturities
of notes payable |
2,542
|
1,766
|
|
Trade payables
|
8,499
|
6,690
|
|
Other liabilities and accrued expenses
|
5,069
|
4,622
|
|
Current maturities of bonds
|
3,627
|
3,723
|
|
Total Current Liabilities
|
20,161
|
17,277
|
|
Notes Payable to the US Department of Agriculture, Net of
Current Maturities |
35,520
|
21,380
|
|
Notes Payable, Net of Current Maturities
|
14,411
|
11,308
|
|
Bonds Payable, Net of Current Maturities
|
7,027
|
10,903
|
|
Other Long-Term Liabilities
|
1,680
|
73
|
|
Total Liabilities
|
81,079
|
63,860
|
|
Total Stockholders’ Equity
|
27,404
|
27,667
|
(in thousands)
Organic FTTP Growth
EBITDAS
Margin
Margin
Q1 Est. >$5.25M
Fiber Metrics
As of December 31, 2012:
–Total Fiber Passings: 44,116
–Total Fiber Customers: 9,460
• Business Fiber Customers: 2,452
• Residential Fiber Customers: 7,008
–Fiber ARPU: $177
• Fiber ARPU for Business: $393
• Fiber ARPU for Residential: $101
–Churn:
• Fiber Avg. Churn: 1.1%
– Fiber Business Churn: 0.7%
– Fiber Residential Churn: 1.5%
8
COVERAGE MAP
9
COVERAGE MAP
Plainview
Iowa Park
Littlefield
Levelland
Smyer
Burkburnett
Lamesa
Ropesville
Wilson
Brownfield
Meadow
Hale Center
Abernathy
Lubbock
New Deal
Whitharral
Wolffort
h
h
10
Tickfaw
Independence
Ponchatoula
Pine Grove
Natalbany
Franklinton
Montpelier
Amite
Hammond
COVERAGE MAP
● = Pre-PRIDE FTTP buildout
○ = 2011 FTTP buildout
● = 2012 FTTP buildout
● = 2013 FTTP buildout
● = Smart Build network
11
Enhanced Board As of December 2012
Alan L. Bazaar
•Partner and Co-CEO of Hollow Brook Wealth Management LLC since 2010
•Previously Managing Director and Portfolio Manager at Richard L. Scott Investments, LLC
•Has served on boards including Media Sciences International, Inc. and Airco Industries, Inc.
Don C. Bell III
•Telecom and technology entrepreneur and investor; has been a private investor since 2011
•General Partner of Tidal Capital, an investment fund focused on Internet communications investments
•Previously served as the President/CEO and Owner of Tidal Research, an Internet advertising company he founded and subsequently sold
•Has held senior executive positions at two portfolio companies of Goldman Sachs Capital Partners: IPC Systems (a telecom products and
services company) and Clearwire (a wireless broadband services provider)
services company) and Clearwire (a wireless broadband services provider)
Richard K. Coleman Jr.
•Private investor and technological advisor
•Founder and President of Rocky Mountain Venture Services assisting multiple technology companies to plan and launch new business
ventures and restructuring initiatives.
ventures and restructuring initiatives.
•Previously CEO of Vroom Technologies, COO of Metronet Communications, and President of US West Long Distance and has held various
officer level positions with Frontier Communications, Centex Telemanagement, and Sprint Communications
officer level positions with Frontier Communications, Centex Telemanagement, and Sprint Communications
•Has served on boards including Colorado’s Internet and Telecommunications Alliance, ZenAstra Photonics and NxGen Networks, Inc.
Jeffrey E. Eberwein
•Private investor
•Previously Portfolio Manager at Soros Fund Management, Viking Global Investors and Cumberland Associates
•Currently serves on the board of directors of Goldfield Corporation, Digirad Corporation and Hope for New York
Andrew J. MacMillan
•Corporate communications professional with 18 years of experience in the global securities industry and 18+ years of direct investment
banking and related experience
banking and related experience
•Independent management consultant for MacMillan Marketing Consulting providing marketing and communications advisory to clients
•Previously Director, Global Communications & Marketing of AXA Rosenberg and held various corporate communication positions including
SVP of Corporate Communications & Government Affairs at Ameriprise Financial, Head of Corporate Communications at Barclays Capital and
SVP of Corporate Communications of The Nasdaq Stock Market
SVP of Corporate Communications & Government Affairs at Ameriprise Financial, Head of Corporate Communications at Barclays Capital and
SVP of Corporate Communications of The Nasdaq Stock Market
Added 5 New Board Members:
12
Macro Trends in Our Favor and
Strategy Going Forward
Strategy Going Forward
13
Macro Trends:
•Rural broadband a long-term growing market
•Increasing need for bandwidth
•Growing shift to Internet TV
Strategy:
•Drive FTTP growth
•Convert passings to customers to drive high margin FTTP growth
•Selectively evaluate “smart builds”
•Continue to aggressively manage costs
14
Q & A
Thank You