Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Lumos Networks Corp. | d920376d8k.htm |
| EX-99.2 - EXHIBIT 99.2 - Lumos Networks Corp. | d920376dex992.htm |
| EX-10.1 - EXHIBIT 10.1 - Lumos Networks Corp. | d920376dex101.htm |
EXHIBIT 99.1
| Contact: | Will Davis | |
| Vice President of Investor Relations and Chief of Staff | ||
| Phone: 917-519-6994 | ||
| Email: davisw@lumosnet.com |
Lumos Networks Corp. Reports First Quarter 2015 Results
Delivers 1Q15 Revenue of $50.5 million and Adjusted EBITDA of $22.5 Million
Reiterates 2015 Revenue and Adjusted EBITDA Guidance of Approximately $202 Million and
Approximately $92 Million, respectively
Maintains Target of 2015 Data Revenue of $116 Million, up 9% Year-over-Year
1Q15 Fiber to the Cell (“FTTC”) Revenue Reaches $6.3 million, up 14% sequentially
Delivers 4% Year-over-Year Enterprise Data Revenue growth
WAYNESBORO, VA – May 5, 2015 – Lumos Networks Corp. (“Lumos Networks”, “Lumos” 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 the first quarter of 2015.
Total revenue in the first quarter of 2015 was $50.5 million, up nearly 1% from the prior year period while total Adjusted EBITDA was over $22.5 million, up slightly on a sequential basis and essentially flat from the prior year period. Total Data segment revenue in the first quarter of 2015 was $27.8 million, up over 6% from the prior year period and up approximately 2% sequentially. Data revenue constituted 55% of total revenue up from 52% in the prior year period.
“Our first quarter results demonstrate that our transformation into a fiber bandwidth infrastructure provider is taking shape,” said Timothy G. Biltz, President and CEO of Lumos Networks. “Our data revenue growth accelerated on a year-over-year basis to over 6%. We expect this momentum to continue through the rest of the year and we maintain our target for $116 million in total data revenue in 2015, up 9% from 2014. This strength, combined with better than expected trends within our R&SB segment, lead us to reiterate our 2015 revenue and Adjusted EBITDA guidance of approximately $202 million and approximately $92 million, respectively.”
Mr. Biltz continued, “Our FTTC segment surpassed $6 million in quarterly revenue for the first time and we are on track to achieve our target of $29 million in FTTC revenue in 2015, up 45% from 2014. Additionally, our Enterprise Data segment achieved over $11 million in quarterly revenue for the first time, growing over 4% from the prior year period. Better R&SB cash flow performance underscores our efforts to maximize cash flow from our legacy businesses to fund our fiber expansion.”
“We now expect to have the vast majority of our 665-mile network expansion in Richmond and into Hampton Roads, Petersburg and Norfolk completed by the end of 2015,” Mr. Biltz said. “This acceleration of our build completion gives us further confidence that we will be able to generate $4-5 million in FTTC revenue from this project in 2016 and will provide the opportunity to begin pursuing Enterprise and Carrier End user opportunities on a fully lit network one quarter sooner than expected. We believe that this network expansion will increase our Enterprise addressable market by $135 million, or approximately 60%, versus our current fiber footprint.”
Robert E. Guth, Chairman of the Board of Lumos Networks noted, “On behalf of the Board of Directors, I am pleased to announce the extension of Timothy Biltz’s CEO employment contract for an additional two years, through April of 2018. This extension is well-earned by Tim and will provide for great continuity as he and the entire Lumos team continue to grow and transform the business.”
First Quarter 2015 Highlights
| • | The Company ended 1Q15 with 907 unique FTTC sites, up 49 sequentially and an increase of 274 from the prior year. Additionally, Lumos ended the first quarter with 1,236 total FTTC connections, up 50% from the prior year. The Company continues to target 1,300 FTTC connections by the end of 2Q15 and 1,700 by the end of 2015. |
| • | In the first quarter of 2015, the Company renewed Enterprise accounts worth $161,000 in monthly recurring charges (“MRC”) and the Company reiterates its target to renew $725,000 in MRC in 2015, up 17% from the $619,000 in 2014. In the first half of 2015, the Company is targeting to renew Enterprise accounts worth over $17 million in total contract value, up more than 50% from the first half of 2014. |
| • | Lumos Networks added 133 route miles of fiber, all of which are Company-owned, with an average strand count of over 68 strands. Additionally, Lumos added 53 Enterprise lit buildings in the quarter, a pace approximately 50% higher than the average over the previous three years and a factor in Lumos delivering accelerating revenue trends in its Enterprise segment. |
Business Outlook
For the full year 2015, the Company reiterates its financial guidance for revenue of approximately $202 million, Adjusted EBITDA of approximately $92 million and capital expenditures of approximately $112 million.
Please see the schedules accompanying this release for additional financial guidance, including reconciliations of non-GAAP measures to GAAP results.
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 Statements.”
Conference Call
A conference call and simultaneous webcast, hosted by Timothy G. Biltz, CEO, Johan Broekhuysen, CFO, and Will Davis, Vice President of Investor Relations and Chief of Staff, to review these financial and operational results and financial guidance will be held at 8:30 A.M. (ET) on May 6, 2015.
The webcast may be accessed via the Internet at http://ir.lumosnetworks.com/ and the live call (“Lumos Networks First Quarter Earnings Conference Call”) may be accessed with the following numbers:
Domestic: 1-877-510-3772
International: 1-412-902-4135
Canada: 1-855-669-9657
The conference call will be archived and available for replay through March 20, 2015 and may be accessed with the following numbers:
Domestic: 1-877-344-7529
International: 1-412-317-0088
Canada: 1-855-669-9658
Replay pass codes: Conference ID: 10063676
The webcast will also be archived and the replay may be accessed at http://ir.lumosnetworks.com/.
About Lumos Networks
Lumos Networks is a leading fiber-based service provider in the Mid-Atlantic region serving Carrier, Enterprise and Data Center customers, offering end to end connectivity in 23 markets in Virginia, Pennsylvania, West Virginia, Maryland, Ohio and Kentucky. With a fiber network of 7,955 fiber route miles and over 363,000 total fiber strand miles, Lumos Networks connects 907 unique Fiber to the Cell sites, 1,236 total FTTC connections, 31 data centers, 1,530 on-net buildings and over 2,460 total on-net locations. In 2014, Lumos Networks generated over $106 million in data revenue over our fiber network. Detailed information about Lumos Networks is available at www.lumosnetworks.com.
Non-GAAP Measures
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 non-controlling interests, other income or expenses, 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 swap 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 Report filed on Form 10-K.
Exhibits:
| • | Condensed Consolidated Balance Sheets |
| • | Condensed Consolidated Statements of Income |
| • | Condensed Consolidated Statements of Cash Flows |
| • | Summary of Operating Results, Customer and Network Statistics |
| • | Reconciliation of Net Income Attributable to Lumos Networks Corp. to Operating Income |
| • | Reconciliation of Operating Income to Adjusted EBITDA |
| • | Business Outlook |
Lumos Networks Corp.
Condensed Consolidated Balance Sheets
| March 31, 2015 | December 31, 2014 | |||||||
| (In thousands) | ||||||||
| ASSETS |
||||||||
| Current Assets |
||||||||
| Cash and cash equivalents |
$ | 12,654 | $ | 14,140 | ||||
| Marketable securities |
29,433 | 16,870 | ||||||
| Restricted cash 1 |
3,154 | 4,208 | ||||||
| Accounts receivable, net |
22,409 | 22,925 | ||||||
| Other receivables |
1,289 | 2,113 | ||||||
| Income tax receivable |
221 | 172 | ||||||
| Prepaid expenses and other |
4,719 | 4,321 | ||||||
| Deferred income taxes |
8,350 | 5,601 | ||||||
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|
|
|||||
| Total Current Assets |
82,229 | 70,350 | ||||||
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|
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| Securities and investments |
1,021 | 914 | ||||||
| Property, plant and equipment, net |
444,660 | 429,451 | ||||||
| Other Assets |
||||||||
| Goodwill |
100,297 | 100,297 | ||||||
| Other intangibles, net |
13,738 | 15,884 | ||||||
| Deferred charges and other assets |
6,107 | 5,718 | ||||||
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|||||
| Total Other Assets |
120,142 | 121,899 | ||||||
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| Total Assets |
$ | 648,052 | $ | 622,614 | ||||
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| LIABILITIES AND EQUITY |
||||||||
| Current Liabilities |
||||||||
| Current portion of long-term debt |
$ | 10,506 | $ | 10,227 | ||||
| Accounts payable |
14,520 | 20,257 | ||||||
| Dividends payable |
— | 3,152 | ||||||
| Advance billings and customer deposits |
13,733 | 14,029 | ||||||
| Accrued compensation |
1,197 | 1,516 | ||||||
| Accrued operating taxes |
5,257 | 4,618 | ||||||
| Other accrued liabilities |
4,162 | 4,223 | ||||||
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| Total Current Liabilities |
49,375 | 58,022 | ||||||
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| Long-Term Liabilities |
||||||||
| Long-term debt, excluding current portion |
388,872 | 363,156 | ||||||
| Retirement benefits |
17,812 | 18,257 | ||||||
| Deferred income taxes |
92,663 | 87,864 | ||||||
| Other long-term liabilities |
1,728 | 1,746 | ||||||
| Income tax payable |
93 | 110 | ||||||
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| Total Long-term Liabilities |
501,168 | 471,133 | ||||||
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| Stockholders’ Equity |
96,693 | 92,677 | ||||||
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| Noncontrolling Interests |
816 | 782 | ||||||
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| Total Equity |
97,509 | 93,459 | ||||||
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| Total Liabilities and Equity |
$ | 648,052 | $ | 622,614 | ||||
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| 1 | During 2010, the Company received a Federal stimulus award providing 50% funding to bring broadband services and infrastructure to Alleghany County, Virginia. The Company was required to deposit 100% of its grant ($8.1 million) into pledged accounts in advance of any reimbursements, to be drawn down ratably following reimbursement approvals. |
Lumos Networks Corp.
Condensed Consolidated Statements of Income
| Three months ended March 31, | ||||||||
| (In thousands, except per share amounts) |
2015 | 2014 | ||||||
| Operating Revenues |
$ | 50,495 | $ | 50,090 | ||||
| Operating Expenses |
||||||||
| Network access costs |
9,712 | 10,714 | ||||||
| Selling, general and administrative 1 |
19,834 | 17,932 | ||||||
| Depreciation and amortization |
11,868 | 10,659 | ||||||
| Accretion of asset retirement obligations |
34 | 27 | ||||||
| Restructuring charges |
633 | — | ||||||
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|
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| Total Operating Expenses |
42,081 | 39,332 | ||||||
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| Operating Income |
8,414 | 10,758 | ||||||
| Other Income (Expenses) |
||||||||
| Interest expense |
(3,486 | ) | (3,974 | ) | ||||
| Gain on interest rate swap derivatives |
82 | 109 | ||||||
| Other (expenses) income, net |
(243 | ) | 180 | |||||
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| Income Before Income Tax Expense |
4,767 | 7,073 | ||||||
| Income Tax Expense |
2,009 | 2,978 | ||||||
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| Net Income |
2,758 | 4,095 | ||||||
| Net Income Attributable to Noncontrolling Interests |
(34 | ) | (33 | ) | ||||
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| Net Income Attributable to Lumos Networks Corp. |
$ | 2,724 | $ | 4,062 | ||||
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| Basic and Diluted Earnings per Common Share Attributable to Lumos Networks Corp. Stockholders: |
||||||||
| Earnings per share - basic and diluted |
$ | 0.12 | $ | 0.18 | ||||
| Cash Dividends Declared per Share - Common Stock |
$ | — | $ | 0.14 | ||||
| 1 | Includes equity-based compensation expense related to all of the Company’s share-based awards and the Company’s 401(k) matching contributions of $1.2 million and $0.8 million for the three months ended March 31, 2015 and 2014, respectively. |
Lumos Networks Corp.
Condensed Consolidated Statements of Cash Flows
| Three Months Ended March 31, | ||||||||
| (In thousands) |
2015 | 2014 | ||||||
| Cash Flows from Operating Activities: |
||||||||
| Net income |
$ | 2,758 | $ | 4,095 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation |
9,722 | 8,364 | ||||||
| Amortization |
2,146 | 2,295 | ||||||
| Accretion of asset retirement obligations |
34 | 27 | ||||||
| Deferred income taxes |
1,916 | 2,803 | ||||||
| Gain on interest rate swap derivatives |
(82 | ) | (109 | ) | ||||
| Equity-based compensation expense |
1,225 | 834 | ||||||
| Amortization of debt issuance costs |
413 | 371 | ||||||
| Retirement benefits, net of cash contributions and distributions |
(108 | ) | (475 | ) | ||||
| Excess tax benefits from share-based compensation |
— | (148 | ) | |||||
| Other |
158 | 135 | ||||||
| Changes in operating assets and liabilities, net |
(1,082 | ) | 1,575 | |||||
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| Net Cash Provided by Operating Activities |
17,100 | 19,767 | ||||||
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| Cash Flows from Investing Activities: |
||||||||
| Purchases of property, plant and equipment |
(29,224 | ) | (18,117 | ) | ||||
| Broadband network expansion funded by stimulus grant |
(649 | ) | 196 | |||||
| Purchases of available-for-sale marketable securities |
(22,853 | ) | (7,003 | ) | ||||
| Proceeds from sale or maturity of available-for-sale marketable securities |
10,220 | 7,804 | ||||||
| Change in restricted cash |
1,054 | — | ||||||
| Cash reimbursement received from broadband stimulus grant |
1,054 | — | ||||||
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| Net Cash Used in Investing Activities |
(40,398 | ) | (17,120 | ) | ||||
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| Cash Flows from Financing Activities: |
||||||||
| Proceeds from issuance of long-term debt |
28,000 | — | ||||||
| Payment of debt issuance costs |
(861 | ) | — | |||||
| Principal payments on senior secured term loans |
(1,938 | ) | (688 | ) | ||||
| Cash dividends paid on common stock |
(3,152 | ) | (3,091 | ) | ||||
| Principal payments under capital lease obligations |
(98 | ) | (112 | ) | ||||
| Proceeds from stock option exercises and employee stock purchase plan |
17 | 20 | ||||||
| Excess tax benefits from share-based compensation |
— | 148 | ||||||
| Other |
(156 | ) | (21 | ) | ||||
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| Net Cash Provided by (Used in) Financing Activities |
21,812 | (3,744 | ) | |||||
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| Decrease in cash and cash equivalents |
(1,486 | ) | (1,097 | ) | ||||
| Cash and cash equivalents: |
||||||||
| Beginning of Period |
14,140 | 14,114 | ||||||
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| End of Period |
$ | 12,654 | $ | 13,017 | ||||
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Lumos Networks Corp.
Operating Results, Customer and Network Statistics
| (Dollars in thousands) | Three months ended: | |||||||||||||||||||
| March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | ||||||||||||||||
| Revenue, Gross Margin and Adjusted EBITDA |
||||||||||||||||||||
| Revenue |
||||||||||||||||||||
| Enterprise Data |
11,027 | 10,833 | 10,470 | 10,445 | 10,586 | |||||||||||||||
| Transport |
10,473 | 10,962 | 11,279 | 11,225 | 10,907 | |||||||||||||||
| FTTC |
6,267 | 5,515 | 4,739 | 5,037 | 4,644 | |||||||||||||||
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| Total Data |
27,767 | 27,310 | 26,488 | 26,707 | 26,137 | |||||||||||||||
| Residential and Small Business |
17,265 | 17,423 | 17,668 | 18,290 | 18,647 | |||||||||||||||
| RLEC Access |
5,463 | 5,952 | 6,360 | 5,168 | 5,306 | |||||||||||||||
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| Total Revenue |
50,495 | 50,685 | 50,516 | 50,165 | 50,090 | |||||||||||||||
| Gross Margin |
||||||||||||||||||||
| Data |
86.9 | % | 85.5 | % | 85.1 | % | 85.3 | % | 84.0 | % | ||||||||||
| Residential and Small Business |
64.9 | % | 67.0 | % | 64.3 | % | 65.7 | % | 64.9 | % | ||||||||||
| Adjusted EBITDA1 |
||||||||||||||||||||
| Data |
12,367 | 12,629 | 12,984 | 13,395 | 12,717 | |||||||||||||||
| Residential and Small Business |
5,627 | 4,623 | 4,503 | 5,230 | 5,544 | |||||||||||||||
| RLEC Access |
4,517 | 4,621 | 5,214 | 4,098 | 4,306 | |||||||||||||||
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| Adjusted EBITDA before Curtailment Gain |
22,511 | 21,873 | 22,701 | 22,723 | 22,567 | |||||||||||||||
| Curtailment Gain2 |
— | 567 | 10,207 | — | — | |||||||||||||||
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| Total Adjusted EBITDA |
22,511 | 22,440 | 32,908 | 22,723 | 22,567 | |||||||||||||||
| Adjusted EBITDA Margin1 |
||||||||||||||||||||
| Data |
44.5 | % | 46.2 | % | 49.0 | % | 50.2 | % | 48.7 | % | ||||||||||
| Residential and Small Business |
32.6 | % | 26.5 | % | 25.5 | % | 28.6 | % | 29.7 | % | ||||||||||
| RLEC Access |
82.7 | % | 77.6 | % | 82.0 | % | 79.3 | % | 81.2 | % | ||||||||||
| Total Adjusted EBITDA Margin |
44.6 | % | 44.3 | % | 65.1 | % | 45.3 | % | 45.1 | % | ||||||||||
| Capital Expenditures |
29,224 | 19,949 | 26,863 | 19,171 | 18,117 | |||||||||||||||
| Adjusted EBITDA less Capital Expenditures |
(6,713 | ) | 2,491 | 6,045 | 3,552 | 4,450 | ||||||||||||||
| Fiber Network Statistics |
||||||||||||||||||||
| Fiber Route-Miles |
7,955 | 7,822 | 7,645 | 7,548 | 7,467 | |||||||||||||||
| Fiber Miles3 |
363,189 | 354,118 | 352,347 | — | — | |||||||||||||||
| Fiber Markets |
23 | 23 | 23 | 23 | 23 | |||||||||||||||
| FTTC Unique Towers |
907 | 858 | 708 | 673 | 633 | |||||||||||||||
| FTTC Total Connections |
1,236 | 1,153 | 961 | 876 | 824 | |||||||||||||||
| On-Network Buildings |
1,530 | 1,477 | 1,456 | 1,420 | 1,387 | |||||||||||||||
| Data Centers4 |
31 | 31 | 28 | 26 | 25 | |||||||||||||||
| R&SB Statistics |
||||||||||||||||||||
| Competitive Voice Connections |
81,456 | 83,406 | 85,683 | 88,941 | 92,440 | |||||||||||||||
| Video Subscribers |
5,472 | 5,352 | 5,309 | 5,155 | 5,073 | |||||||||||||||
| Fiber-to-the-Premise Broadband Connections |
6,602 | 6,358 | 6,119 | 5,906 | 5,846 | |||||||||||||||
| Premises Passed by Fiber5 |
18,142 | 17,461 | 17,102 | 16,631 | — | |||||||||||||||
| RLEC Access Lines |
26,746 | 27,257 | 27,716 | 28,081 | 28,381 | |||||||||||||||
| 1 | Adjusted EBITDA is a non-GAAP measure. See definition on page 2 of this earnings release. Adjusted EBITDA margin is calculated as the ratio of Adjusted EBITDA, as defined, to Total Revenue. |
| 2 | The Company recorded a gain totaling $10.8 million in the second half of 2014 related to the curtailment of medical benefits under the Company’s postretirement plan, which was not allocated to the operating segments. |
| 3 | Fiber miles are calculated as the fiber route miles multiplied by the number of fiber strands within each cable (represents an average of 46 fibers per route as of March 31, 2015) and are based on the results of the Company’s conversion of its fiber records to a centralized fiber management system in the third quarter of 2014. |
| 4 | Data centers reported include both commercial and private data centers and Company-owned facilities offering commercial data center services. |
| 5 | Includes residential and small business locations passed by fiber and available for service. Approximately 93% of the premises passed by fiber and available for service as of March 31, 2015 were residential. |
Lumos Networks Corp.
Reconciliation of Net Income Attributable to Lumos Networks Corp. to Operating Income
| (In thousands) |
||||||||
| Three months ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| Net Income Attributable to Lumos Networks Corp. |
$ | 2,724 | $ | 4,062 | ||||
| Net Income Attributable to Noncontrolling Interests |
34 | 33 | ||||||
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| Net Income |
2,758 | 4,095 | ||||||
| Interest expense |
3,486 | 3,974 | ||||||
| Gain on interest rate swap derivatives |
(82 | ) | (109 | ) | ||||
| Income tax expense |
2,009 | 2,978 | ||||||
| Other expenses (income), net |
243 | (180 | ) | |||||
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| Operating Income |
$ | 8,414 | $ | 10,758 | ||||
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Lumos Networks Corp.
Reconciliation of Operating Income to Adjusted EBITDA
| (Dollars in thousands) |
2015 | 2014 | ||||||
| For The Three Months Ended March 31, | ||||||||
| Operating Income |
$ | 8,414 | $ | 10,758 | ||||
| Depreciation and amortization and accretion of asset retirement obligations |
11,902 | 10,686 | ||||||
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| Sub-total: |
20,316 | 21,444 | ||||||
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| Amortization of actuarial losses |
337 | 64 | ||||||
| Equity-based compensation |
1,225 | 834 | ||||||
| Restructuring charges |
633 | — | ||||||
| Employee separation charges |
— | 225 | ||||||
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| Adjusted EBITDA |
$ | 22,511 | $ | 22,567 | ||||
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| Adjusted EBITDA Margin |
44.6 | % | 45.1 | % | ||||
Lumos Networks Corp.
Business Outlook 1 (as of May 5, 2015)
| (In millions) | 2015 Annual Guidance 1 |
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| Operating Revenues |
approximately $ | 202 | ||
| Adjusted EBITDA |
approximately $ | 92 | ||
| Capital Expenditures |
approximately $ | 112 | ||
| Cash, Cash Equivalents and Marketable Securities (at end of period) |
approximately $ | 5 | ||
| Reconciliation of Operating Income to Adjusted EBITDA: |
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| Operating Income |
approximately $ | 32 | ||
| Depreciation and amortization |
approximately $ | 53 | ||
| Equity based compensation charges |
approximately $ | 6 | ||
| Amortization of actuarial losses |
approximately $ | 1 | ||
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| Adjusted EBITDA |
approximately $ | 92 | ||
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| 1 | These estimates are based on management’s current expectations. These estimates are forward-looking and actual results may differ materially. Please see “Special Note from the Company Regarding Forward-Looking Statements” in the Lumos Networks Corp. first quarter 2015 earnings release dated May 5, 2015. |