Alaska Communications Completes the Sale of its Wireless Business
February 02 2015 - 2:15PM
Business Wire
-Net proceeds being used to deleverage
balance sheet, achieving one of the lowest leverage levels in the
industry-
Alaska Communications (NASDAQ:ALSK), has closed the sale of its
wireless assets to General Communication, Inc. (NASDAQ:GNCMA). Net
proceeds from this transaction will be used to pay down debt. A
stronger balance sheet, combined with revenue and earnings growth,
better positions the company to pursue additional opportunities to
create shareholder value.
“We can now focus on our business broadband and managed IT
solutions strategy, which provides our greatest areas of growth and
highest levels of profitability. Our broadband assets are already
yielding industry-leading revenue growth. As we focus our attention
and resources on reliable broadband and managed IT solutions, we
look to be the partner of choice for Alaska businesses fortifying
our customer relationships by delivering improved service,” said
Alaska Communications President and CEO Anand Vadapalli.
“When we announced this transaction in December 2014, we said
that by eliminating the negative margins associated with the retail
wireless business and by realizing additional synergies, we were
targeting a pro-forma run-rate EBITDA of $54 million and a leverage
ratio of 3.1x annual EBITDA. The operational plan to perform at or
better than these levels is underway. We will provide a
comprehensive update of this plan at our 2014 earnings conference
call scheduled for Thursday, March 5, 2015,” said Alaska
Communications CFO Wayne Graham.
Alaska Communications Fourth Quarter and Full Year 2014
Financial Results
Further information about the benefits of the transaction,
including the final net proceeds and the plan to achieve synergies
will be provided during the Fourth Quarter and Full Year 2014
Financial Results earnings call. The Company will release financial
results for the fourth quarter and full year 2014 shortly after
markets close Wednesday March 4, 2015. The company will host a
conference call and live webcast Thursday, March 5, 2015, at 5:00
p.m. Eastern time to discuss the results. The live webcast will
include a slide presentation. Parties in the United States and
Canada can access the call at 1-888-554-1422 and enter passcode
563023. All other parties can access the call at
1-719-457-2663.
The live webcast of the conference call will be accessible from
the "Events Calendar" section of the Company's website
(www.alsk.com). The webcast will be archived for a period of 90
days. A telephonic replay of the conference call will also be
available two hours after the call and will run until April 6, 2015
at 4:00 p.m. Eastern Time. To hear the replay, parties in the
United States and Canada can call 1-888-203-1112 and enter pass
code 1673988 9717877. All other parties can call 1-719-457-0820 and
enter pass code 1673988 9717877.
About Alaska Communications
Alaska Communications (NASDAQ:ALSK) is a leading provider of
advanced broadband and managed service solutions for businesses and
consumers in Alaska. The Company operates a highly reliable,
advanced statewide data and voice network with the latest
technology and the most diverse undersea fiber optic system
connecting Alaska to the contiguous United States. For more
information, visit www.alaskacommunications.com or
www.alsk.com.
Non-GAAP Financial Measures
This release includes information related to management's
estimate of adjusted EBITDA. Adjusted EBITDA, in this context, may
not be consistent with EBITDA measures used by other companies, are
not measurements under generally accepted accounting principles
(GAAP) and should not be considered a substitute for other measures
of financial performance recorded in accordance with GAAP.
Management of Alaska Communications believes that EBITDA provides
useful information to investors. Due to the complexities of
estimating cash from operations in future periods, the company is
not able to provide a reconciliation of adjusted EBITDA to its
nearest GAAP measure.
Forward-Looking Statements
This release includes certain "forward-looking statements," as
that term is defined in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are based on
management's beliefs as well as on a number of assumptions
concerning future events made using information currently available
to management. Readers are cautioned not to put undue reliance on
such forward-looking statements, which are not a guarantee of
performance and are subject to a number of uncertainties and other
factors, many of which are outside Alaska Communications control.
For further information regarding risks and uncertainties
associated with the company's business, please refer to Alaska
Communications' SEC filings.
Investor Relations:Alaska CommunicationsTiffany Dunn,
907-564-7556Manager, Board and Investor
RelationsACSInvestors@acsalaska.com
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