Hungarian Telephone and Cable Corp. (AMEX:HTC) today announced
results for the third quarter and nine months ended September 30,
2006. RESULTS FOR THIRD QUARTER Hungarian Telephone�s income from
operations and net income attributable to common stockholders,
determined in accordance with U.S. generally accepted accounting
principles (GAAP), were $6.2 million and $5.8 million,
respectively, for the three months ended September 30, 2006,
compared with income from operations of $11.4 million and net
income attributable to common stockholders of $6.5 million in the
same period last year. Diluted earnings per share were $0.41 for
the quarter ended September 30, 2006, compared with $0.46 in the
same period last year. Hungarian Telephone reported a net foreign
exchange gain of $4.5 million for the quarter ended September 30,
2006, compared to a net foreign exchange loss of $1.8 million for
the third quarter of 2005. The gain for the quarter reflects the
appreciation of the Hungarian forint against the euro during the
period. For the quarter ended September 30, 2006, the Hungarian
forint appreciated by approximately 3% compared to June 30, 2006
levels. Included in the results for the quarter is a $0.8 million
loss due to changes in the fair value of Hungarian Telephone�s
interest rate swaps. This loss is due to a downward movement, as of
September 30, 2006, versus June 30, 2006, in the market value of
the Company�s interest rate swaps. For the quarter ended September
30, 2006, Hungarian Telephone reported net telephone service
revenues of $26.7 million, versus $31.1 million for the third
quarter of 2005. This decrease in net telephone service revenues
between the periods is the result of a lower number of access lines
in service during 2006 versus 2005, as well as competitive
pressures within the market, which have affected call tariffs and
the calling patterns of customers within Hungarotel�s operating
areas. Adjusted EBITDA and pro-forma net income were $12.7 million
and $2.7 million, respectively, compared with $18.1 million and
$5.2 million in the same period last year. The decrease in
pro-forma net income and adjusted EBITDA between the two periods is
primarily the result of lower revenues between the periods, as well
as higher selling, general and administrative expenses between the
two periods. Pro-forma diluted earnings per share were $0.19 for
the quarter ended September 30, 2006. A reconciliation of GAAP to
Non-GAAP financial measures has been provided in the financial
statement tables included in the press release. An explanation of
these measures is also included below under the heading �Non-GAAP
Financial Measures." Cash flow from operations for the third
quarter of 2006 was $2.6 million, while capital expenditure was
$4.4 million for the period. Hungarian Telephone had cash of $34.7
million at September 30, 2006. RESULTS FOR NINE MONTHS Hungarian
Telephone�s income from operations and net income attributable to
common stockholders, determined in accordance with U.S. generally
accepted accounting principles (GAAP), were $19.2 million and $1.0
million, respectively, for the nine months ended September 30,
2006, compared with income from operations of $25.3 million and net
income attributable to common stockholders of $6.6 million in the
same period last year. Diluted income per share was $0.07 for the
nine months ended September 30, 2006, compared with $0.47 in the
same period last year. Hungarian Telephone reported a net foreign
exchange loss of $11.2 million for the nine months ended September
30, 2006, compared to a net loss of $6.3 million for the same
period in 2005. The loss for the period reflects the significant
devaluation of the Hungarian forint against the euro, of
approximately 8%, during the nine months ended September 30, 2006,
between December 31, 2005 and September 30, 2006 levels. Included
in the results for the nine months is a $2.3 million benefit due to
changes in the fair value of Hungarian Telephone�s interest rate
swaps. This benefit is due to an upward movement, as of September
30, 2006, versus December 31, 2005, in the market value of interest
rate swaps. For the nine months ended September 30, 2006, Hungarian
Telephone reported net telephone service revenues of $81.0 million,
versus net telephone service revenues of $82.2 million for the same
period in 2005. This decrease in net telephone service revenues
between the periods is the result of a lower number of access lines
in service during 2006 versus 2005, as well as competitive
pressures within the market, which have affected call tariffs and
the calling patterns of customers within Hungarotel�s operating
areas, partially offset by the inclusion of PanTel�s revenues for
nine months in 2006 compared to seven months in the same period in
2005. Adjusted EBITDA and pro-forma net income were $38.3 million
and $8.9 million, respectively, compared with $43.0 million and
$13.8 million in the same period last year. The decrease in
pro-forma net income and adjusted EBITDA between the two periods is
primarily the result of lower revenues between the periods, as well
as higher selling, general and administrative expenses between the
two periods. Pro-forma diluted earnings per share were $0.62 for
the nine months ended September 30, 2006. A reconciliation of GAAP
to Non-GAAP financial measures has been provided in the financial
statement tables included in the press release. An explanation of
these measures is also included below under the heading �Non-GAAP
Financial Measures." Cash flow from operations for the nine months
ended September 30, 2006 was $32.2 million, while capital
expenditure was $13.5 million for the nine month period. In
addition, for the nine months ended September 30, 2006, Hungarian
Telephone repaid $12.1 million of debt under its senior credit
agreement as scheduled. COMMENTS FROM TORBEN V. HOLM Commenting on
these results, Torben V. Holm, Hungarian Telephone�s President and
Chief Executive Officer stated, �The third quarter numbers for HTCC
reflect the volatility that has characterized the Hungarian economy
over the last few months. Under such circumstances it is important
to focus on long-term trends. I am happy to report that there are
positives. We are now more than compensating for the loss of net
revenue due to the loss of lines in Hungarotel�s original core
areas by gains of new customers in the residential market elsewhere
in Hungary. Sales in the corporate market are continuing well and
with recent changes in the regulatory environment we are also now
able to address the lower end of this market segment with ULL-based
broadband products. Finally, on the wholesale front, we continue to
expand our international footprint which enables us to both attract
new customers and develop existing relationships even if
competition has heated up.� Mr. Holm went onto say, �Thus far, 2006
has been a period of stabilization and cost containment. During the
next phase, growth in revenues and earnings should materialize.�
NON-GAAP FINANCIAL MEASURES Hungarian Telephone uses certain
non-GAAP financial measures in evaluating its performance. These
include pro-forma net income and Adjusted EBITDA. A reconciliation
of the differences between these non-GAAP financial measures and
the most comparable financial measures calculated and presented in
accordance with GAAP is included in the tables that follow. The
non-GAAP financial measures referred to in this press release are
by definition not measures of financial performance under generally
accepted accounting principles and are not alternatives to
operating income or net income/loss reflected in the statement of
operations and are not necessarily indicative of cash available to
fund all cash flow needs. The non-GAAP financial measures used by
Hungarian Telephone may not be comparable to similarly titled
measures of other companies. Pro-forma net income is net (loss)
income without taking into account the recorded foreign exchange
gain/loss, fair value changes on interest rate swaps and non-cash
stock compensation accounting charges. Prior to January 1, 2006,
Hungarian Telephone applied variable option accounting for stock
options issued and outstanding as a result of modifications to its
stock option plans effective October 1, 2004. Effective January 1,
2006, with Hungarian Telephone�s adoption of SFAS 123R, Hungarian
Telephone has ceased variable option accounting, however it records
as compensation expense the fair value of option grants based upon
the Black-Scholes valuation model. Given the non-cash nature of
expensing stock options and the potentially volatile effect on the
statement of operations, management believes that its exclusion
from pro-forma net income provides additional information in
measuring the financial performance of Hungarian Telephone. The
fair value changes on interest rate swaps is non-cash and
represents the value to be paid/received by Hungarian Telephone, at
the balance sheet date, if it were to terminate its interest rate
swap obligations. Hungarian Telephone is required under the terms
of its credit agreement to maintain, at all times, some form of
interest rate hedging protection. Adjusted EBITDA is cash flow from
operations adjusted for changes in working capital, income taxes
paid, interest paid, interest received, stock based compensation
charges and other miscellaneous changes. Management uses these
non-GAAP financial measures for various purposes including:
measuring and evaluating Hungarian Telephone�s financial and
operational performance; making compensation decisions; planning
and budgeting decisions; and financial planning purposes. Hungarian
Telephone believes that presentation of these non-GAAP financial
measures is useful to investors because it (i) reflects
management�s view of core operations and cash flow generation upon
which management bases financial, operational, compensation and
planning decisions and (ii) presents measurements that investors
and its lending banks have indicated to management are important in
assessing Hungarian Telephone and its liquidity. While Hungarian
Telephone utilizes these non-GAAP financial measures in managing
its business and believes they are useful to management and to
investors for the reasons described above, these non-GAAP financial
measures have certain shortcomings. In particular, Adjusted EBITDA
does not take into account changes in working capital and financial
statement items below income from operations, and the resultant
effect of these items on Hungarian Telephone�s cash flow. Pro-forma
net income does not take into account the foreign exchange
gains/losses, however these gains/losses may recur in future
periods depending upon currency movements. Management compensates
for the shortcomings of these measures by utilizing them in
conjunction with their comparable GAAP financial measures. The
information in this press release should be read in conjunction
with the financial statements and footnotes contained in our
documents filed with the U.S. Securities and Exchange Commission.
ABOUT HUNGARIAN TELEPHONE AND CABLE CORP. Hungarian Telephone and
Cable Corp. is the leading alternative telecommunications service
provider in the Republic of Hungary with a presence in other
countries in Central and Eastern Europe. Note: This press release
contains forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. These and all
forward-looking statements are only predictions or statements of
current plans that are constantly under review by Hungarian
Telephone. Such statements are qualified by important factors that
may cause actual results to differ from those contemplated,
including as a result of those factors detailed from time to time
in Hungarian Telephone�s Securities and Exchange Commission
filings. The foregoing information should be read in conjunction
with Hungarian Telephone�s filings with the U.S. Securities and
Exchange Commission including, but not limited to, reports on Forms
10-K and 10-Q. Hungarian Telephone has no obligation to update or
revise these forward-looking statements to reflect the occurrence
of future events or circumstances. Hungarian Telephone and Cable
Corp. Financial Highlights (In Millions, Except Per Share Data)
(unaudited) � Statements of Income � Three Months Ended Nine Months
Ended September 30, September 30, �2006� 2005� 2006� 2005� �
Measured Service Revenues $8.1� $12.2� $26.0� $33.5� Subscription
Revenues 5.9� 6.1� 18.2� 18.8� Net Interconnect Charges (2.9) (3.1)
(8.9) (9.2) Net Measured Service and Subscription Revenues 11.1�
15.2� 35.3� 43.1� Connection Fees 0.1� 0.2� 0.5� 0.7� Wholesale
revenues, net 0.9� 1.8� 2.5� 3.3� Other Operating Revenues, net:
Provision of direct lines 9.0� 8.8� 26.7� 22.2� VPN services 1.5�
2.1� 4.8� 5.2� Internet Services (including ADSL access) 2.6� 1.8�
7.3� 4.3� Other 1.5� 1.2� 3.9� 3.4� Other Operating Revenues Total
14.6� 13.9� 42.7� 35.1� Telephone Service Revenues, Net 26.7� 31.1�
81.0� 82.2� � Income from Operations 6.2� 11.4� 19.2� 25.3�
Interest Expense 3.3� 3.5� 10.4� 10.6� Fair Value Changes on
Interest Rate Swaps Gain (Loss) (0.8) 1.4� 2.3� (2.4) Net Income
5.8� 6.5� 1.0� 6.6� Net Income Per Common Share: Basic $0.45�
$0.51� $0.08� $0.52� Diluted $0.41� $0.46� $0.07� $0.47� Weighted
Average Number of Shares Outstanding: Basic 12.8� 12.7� 12.8� 12.7�
Diluted 14.2� 14.4� 14.3� 14.4� Balance Sheet � Quarter Ended Year
Ended September 30, December 31, 2006� 2005� (unaudited) � Current
Assets $80.6� $69.6� Property, Plant and Equipment, net 158.5�
164.2� Total Assets $303.6� $298.8� � Total Current Liabilities
$98.8� $66.3� Long Term Debt 130.6� 158.2� Total Stockholders
Equity 71.6� 70.9� Total Liabilities and Stockholders Equity
$303.6� $298.8� Reconciliation of Non-GAAP Financial Measures: �
Net Income to Pro-Forma Net Income Excluding Certain Items (In
Millions) (unaudited) � Three Months Ended Nine Months Ended
September 30, September 30, 2006� 2005� 2006� 2005� � Net Income as
Reported $5.8� $6.5� $1.0� $6.6� � Foreign Exchange (Gains) Loss
(4.5) 1.8� 11.2� 6.3� � Stock Based Compensation Charge (Non-Cash)
0.0� (1.9) 0.5� (0.2) � Fair Value Changes on Interest Rate Swaps
(Gain) Loss 0.8� (1.4) (2.3) 2.4� � Deferred Income Tax effect on
Pro-Forma Adjustments 0.6� 0.2� (1.5) (1.3) Pro-Forma Net Income
Excluding Certain Items $2.7� $5.2� $8.9� $13.8� � Net Income Per
Share Fully Diluted to Pro-Forma Net Income Per Share Fully Diluted
Excluding Certain Items (unaudited) � Three Months Ended Nine
Months Ended September 30, September 30, 2006� 2005� 2006� 2005� �
Net Income as Reported $0.41� $0.46� $0.07� $0.47� � Foreign
Exchange (Gains) Loss (0.32) 0.13� 0.78� 0.44� � Stock Based
Compensation Charge (Non-Cash) 0.00� (0.13) 0.03� 0.00� � Fair
Value Changes on Interest Rate Swaps (Gain) Loss 0.06� (0.10)
(0.16) 0.17� � Deferred Income Tax effect on Pro-Forma Adjustments
0.04� 0.02� (0.10) (0.09) � Pro-Forma Net Income Excluding Certain
Items $0.19� $0.38� $0.62� $0.99� Cash Flow from Operations to
Adjusted EBITDA (In Millions) (unaudited) � Three Months Ended Nine
Months Ended September 30, September 30, 2006� 2005� 2006� 2005� �
Cash Flow from Operations $2.6� $16.7� $32.2� $38.0� � Changes in
Working Capital 7.7� (0.8) (1.2) (0.2) Income Taxes Paid 0.3� 0.4�
1.1� 0.5� Interest Paid 2.1� 0.0� 7.7� 4.8� Interest Received (0.3)
(0.2) (0.8) (0.6) Stock based compensation charge (non-cash) 0.0�
2.0� (0.6) 0.3� Other 0.3� 0.0� (0.1) 0.2� Adjusted EBITDA $12.7�
$18.1� $38.3� $43.0� Hungarian Telephone and Cable Corp. (AMEX:HTC)
today announced results for the third quarter and nine months ended
September 30, 2006. RESULTS FOR THIRD QUARTER Hungarian Telephone's
income from operations and net income attributable to common
stockholders, determined in accordance with U.S. generally accepted
accounting principles (GAAP), were $6.2 million and $5.8 million,
respectively, for the three months ended September 30, 2006,
compared with income from operations of $11.4 million and net
income attributable to common stockholders of $6.5 million in the
same period last year. Diluted earnings per share were $0.41 for
the quarter ended September 30, 2006, compared with $0.46 in the
same period last year. Hungarian Telephone reported a net foreign
exchange gain of $4.5 million for the quarter ended September 30,
2006, compared to a net foreign exchange loss of $1.8 million for
the third quarter of 2005. The gain for the quarter reflects the
appreciation of the Hungarian forint against the euro during the
period. For the quarter ended September 30, 2006, the Hungarian
forint appreciated by approximately 3% compared to June 30, 2006
levels. Included in the results for the quarter is a $0.8 million
loss due to changes in the fair value of Hungarian Telephone's
interest rate swaps. This loss is due to a downward movement, as of
September 30, 2006, versus June 30, 2006, in the market value of
the Company's interest rate swaps. For the quarter ended September
30, 2006, Hungarian Telephone reported net telephone service
revenues of $26.7 million, versus $31.1 million for the third
quarter of 2005. This decrease in net telephone service revenues
between the periods is the result of a lower number of access lines
in service during 2006 versus 2005, as well as competitive
pressures within the market, which have affected call tariffs and
the calling patterns of customers within Hungarotel's operating
areas. Adjusted EBITDA and pro-forma net income were $12.7 million
and $2.7 million, respectively, compared with $18.1 million and
$5.2 million in the same period last year. The decrease in
pro-forma net income and adjusted EBITDA between the two periods is
primarily the result of lower revenues between the periods, as well
as higher selling, general and administrative expenses between the
two periods. Pro-forma diluted earnings per share were $0.19 for
the quarter ended September 30, 2006. A reconciliation of GAAP to
Non-GAAP financial measures has been provided in the financial
statement tables included in the press release. An explanation of
these measures is also included below under the heading "Non-GAAP
Financial Measures." Cash flow from operations for the third
quarter of 2006 was $2.6 million, while capital expenditure was
$4.4 million for the period. Hungarian Telephone had cash of $34.7
million at September 30, 2006. RESULTS FOR NINE MONTHS Hungarian
Telephone's income from operations and net income attributable to
common stockholders, determined in accordance with U.S. generally
accepted accounting principles (GAAP), were $19.2 million and $1.0
million, respectively, for the nine months ended September 30,
2006, compared with income from operations of $25.3 million and net
income attributable to common stockholders of $6.6 million in the
same period last year. Diluted income per share was $0.07 for the
nine months ended September 30, 2006, compared with $0.47 in the
same period last year. Hungarian Telephone reported a net foreign
exchange loss of $11.2 million for the nine months ended September
30, 2006, compared to a net loss of $6.3 million for the same
period in 2005. The loss for the period reflects the significant
devaluation of the Hungarian forint against the euro, of
approximately 8%, during the nine months ended September 30, 2006,
between December 31, 2005 and September 30, 2006 levels. Included
in the results for the nine months is a $2.3 million benefit due to
changes in the fair value of Hungarian Telephone's interest rate
swaps. This benefit is due to an upward movement, as of September
30, 2006, versus December 31, 2005, in the market value of interest
rate swaps. For the nine months ended September 30, 2006, Hungarian
Telephone reported net telephone service revenues of $81.0 million,
versus net telephone service revenues of $82.2 million for the same
period in 2005. This decrease in net telephone service revenues
between the periods is the result of a lower number of access lines
in service during 2006 versus 2005, as well as competitive
pressures within the market, which have affected call tariffs and
the calling patterns of customers within Hungarotel's operating
areas, partially offset by the inclusion of PanTel's revenues for
nine months in 2006 compared to seven months in the same period in
2005. Adjusted EBITDA and pro-forma net income were $38.3 million
and $8.9 million, respectively, compared with $43.0 million and
$13.8 million in the same period last year. The decrease in
pro-forma net income and adjusted EBITDA between the two periods is
primarily the result of lower revenues between the periods, as well
as higher selling, general and administrative expenses between the
two periods. Pro-forma diluted earnings per share were $0.62 for
the nine months ended September 30, 2006. A reconciliation of GAAP
to Non-GAAP financial measures has been provided in the financial
statement tables included in the press release. An explanation of
these measures is also included below under the heading "Non-GAAP
Financial Measures." Cash flow from operations for the nine months
ended September 30, 2006 was $32.2 million, while capital
expenditure was $13.5 million for the nine month period. In
addition, for the nine months ended September 30, 2006, Hungarian
Telephone repaid $12.1 million of debt under its senior credit
agreement as scheduled. COMMENTS FROM TORBEN V. HOLM Commenting on
these results, Torben V. Holm, Hungarian Telephone's President and
Chief Executive Officer stated, "The third quarter numbers for HTCC
reflect the volatility that has characterized the Hungarian economy
over the last few months. Under such circumstances it is important
to focus on long-term trends. I am happy to report that there are
positives. We are now more than compensating for the loss of net
revenue due to the loss of lines in Hungarotel's original core
areas by gains of new customers in the residential market elsewhere
in Hungary. Sales in the corporate market are continuing well and
with recent changes in the regulatory environment we are also now
able to address the lower end of this market segment with ULL-based
broadband products. Finally, on the wholesale front, we continue to
expand our international footprint which enables us to both attract
new customers and develop existing relationships even if
competition has heated up." Mr. Holm went onto say, "Thus far, 2006
has been a period of stabilization and cost containment. During the
next phase, growth in revenues and earnings should materialize."
NON-GAAP FINANCIAL MEASURES Hungarian Telephone uses certain
non-GAAP financial measures in evaluating its performance. These
include pro-forma net income and Adjusted EBITDA. A reconciliation
of the differences between these non-GAAP financial measures and
the most comparable financial measures calculated and presented in
accordance with GAAP is included in the tables that follow. The
non-GAAP financial measures referred to in this press release are
by definition not measures of financial performance under generally
accepted accounting principles and are not alternatives to
operating income or net income/loss reflected in the statement of
operations and are not necessarily indicative of cash available to
fund all cash flow needs. The non-GAAP financial measures used by
Hungarian Telephone may not be comparable to similarly titled
measures of other companies. Pro-forma net income is net (loss)
income without taking into account the recorded foreign exchange
gain/loss, fair value changes on interest rate swaps and non-cash
stock compensation accounting charges. Prior to January 1, 2006,
Hungarian Telephone applied variable option accounting for stock
options issued and outstanding as a result of modifications to its
stock option plans effective October 1, 2004. Effective January 1,
2006, with Hungarian Telephone's adoption of SFAS 123R, Hungarian
Telephone has ceased variable option accounting, however it records
as compensation expense the fair value of option grants based upon
the Black-Scholes valuation model. Given the non-cash nature of
expensing stock options and the potentially volatile effect on the
statement of operations, management believes that its exclusion
from pro-forma net income provides additional information in
measuring the financial performance of Hungarian Telephone. The
fair value changes on interest rate swaps is non-cash and
represents the value to be paid/received by Hungarian Telephone, at
the balance sheet date, if it were to terminate its interest rate
swap obligations. Hungarian Telephone is required under the terms
of its credit agreement to maintain, at all times, some form of
interest rate hedging protection. Adjusted EBITDA is cash flow from
operations adjusted for changes in working capital, income taxes
paid, interest paid, interest received, stock based compensation
charges and other miscellaneous changes. Management uses these
non-GAAP financial measures for various purposes including:
measuring and evaluating Hungarian Telephone's financial and
operational performance; making compensation decisions; planning
and budgeting decisions; and financial planning purposes. Hungarian
Telephone believes that presentation of these non-GAAP financial
measures is useful to investors because it (i) reflects
management's view of core operations and cash flow generation upon
which management bases financial, operational, compensation and
planning decisions and (ii) presents measurements that investors
and its lending banks have indicated to management are important in
assessing Hungarian Telephone and its liquidity. While Hungarian
Telephone utilizes these non-GAAP financial measures in managing
its business and believes they are useful to management and to
investors for the reasons described above, these non-GAAP financial
measures have certain shortcomings. In particular, Adjusted EBITDA
does not take into account changes in working capital and financial
statement items below income from operations, and the resultant
effect of these items on Hungarian Telephone's cash flow. Pro-forma
net income does not take into account the foreign exchange
gains/losses, however these gains/losses may recur in future
periods depending upon currency movements. Management compensates
for the shortcomings of these measures by utilizing them in
conjunction with their comparable GAAP financial measures. The
information in this press release should be read in conjunction
with the financial statements and footnotes contained in our
documents filed with the U.S. Securities and Exchange Commission.
ABOUT HUNGARIAN TELEPHONE AND CABLE CORP. Hungarian Telephone and
Cable Corp. is the leading alternative telecommunications service
provider in the Republic of Hungary with a presence in other
countries in Central and Eastern Europe. Note: This press release
contains forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. These and all
forward-looking statements are only predictions or statements of
current plans that are constantly under review by Hungarian
Telephone. Such statements are qualified by important factors that
may cause actual results to differ from those contemplated,
including as a result of those factors detailed from time to time
in Hungarian Telephone's Securities and Exchange Commission
filings. The foregoing information should be read in conjunction
with Hungarian Telephone's filings with the U.S. Securities and
Exchange Commission including, but not limited to, reports on Forms
10-K and 10-Q. Hungarian Telephone has no obligation to update or
revise these forward-looking statements to reflect the occurrence
of future events or circumstances. -0- *T Hungarian Telephone and
Cable Corp. Financial Highlights (In Millions, Except Per Share
Data) (unaudited) Statements of Income Three Months Nine Months
Ended Ended September 30, September 30, 2006 2005 2006 2005 ------
------ ------ ------ Measured Service Revenues $8.1 $12.2 $26.0
$33.5 Subscription Revenues 5.9 6.1 18.2 18.8 Net Interconnect
Charges (2.9) (3.1) (8.9) (9.2) ------ ------ ------ ------ Net
Measured Service and Subscription Revenues 11.1 15.2 35.3 43.1
Connection Fees 0.1 0.2 0.5 0.7 Wholesale revenues, net 0.9 1.8 2.5
3.3 Other Operating Revenues, net: Provision of direct lines 9.0
8.8 26.7 22.2 VPN services 1.5 2.1 4.8 5.2 Internet Services
(including ADSL access) 2.6 1.8 7.3 4.3 Other 1.5 1.2 3.9 3.4
------ ------ ------ ------ Other Operating Revenues Total 14.6
13.9 42.7 35.1 ------ ------ ------ ------ Telephone Service
Revenues, Net 26.7 31.1 81.0 82.2 ------ ------ ------ ------
Income from Operations 6.2 11.4 19.2 25.3 Interest Expense 3.3 3.5
10.4 10.6 Fair Value Changes on Interest Rate Swaps Gain (Loss)
(0.8) 1.4 2.3 (2.4) Net Income 5.8 6.5 1.0 6.6 Net Income Per
Common Share: Basic $0.45 $0.51 $0.08 $0.52 Diluted $0.41 $0.46
$0.07 $0.47 Weighted Average Number of Shares Outstanding: Basic
12.8 12.7 12.8 12.7 Diluted 14.2 14.4 14.3 14.4 *T -0- *T Balance
Sheet Quarter Ended Year Ended September 30, December 31, 2006 2005
-------------- ------------ (unaudited) Current Assets $80.6 $69.6
Property, Plant and Equipment, net 158.5 164.2 Total Assets $303.6
$298.8 Total Current Liabilities $98.8 $66.3 Long Term Debt 130.6
158.2 Total Stockholders Equity 71.6 70.9 Total Liabilities and
Stockholders Equity $303.6 $298.8 *T -0- *T Reconciliation of
Non-GAAP Financial Measures: Net Income to Pro-Forma Net Income
Excluding Certain Items (In Millions) (unaudited) Three Months Nine
Months Ended Ended September 30, September 30, -------------
------------- 2006 2005 2006 2005 ------- ----- ------ ------ Net
Income as Reported $5.8 $6.5 $1.0 $6.6 Foreign Exchange (Gains)
Loss (4.5) 1.8 11.2 6.3 Stock Based Compensation Charge (Non-Cash)
0.0 (1.9) 0.5 (0.2) Fair Value Changes on Interest Rate Swaps
(Gain) Loss 0.8 (1.4) (2.3) 2.4 Deferred Income Tax effect on
Pro-Forma Adjustments 0.6 0.2 (1.5) (1.3) ------- ----- ------
------ Pro-Forma Net Income Excluding Certain Items $2.7 $5.2 $8.9
$13.8 ======= ===== ====== ====== *T -0- *T Net Income Per Share
Fully Diluted to Pro-Forma Net Income Per Share Fully Diluted
Excluding Certain Items (unaudited) Three Months Nine Months Ended
Ended September 30, September 30, ------------- ------------- 2006
2005 2006 2005 ------ ------ ------ ------ Net Income as Reported
$0.41 $0.46 $0.07 $0.47 Foreign Exchange (Gains) Loss (0.32) 0.13
0.78 0.44 Stock Based Compensation Charge (Non-Cash) 0.00 (0.13)
0.03 0.00 Fair Value Changes on Interest Rate Swaps (Gain) Loss
0.06 (0.10) (0.16) 0.17 Deferred Income Tax effect on Pro-Forma
Adjustments 0.04 0.02 (0.10) (0.09) ------ ------ ------ ------
Pro-Forma Net Income Excluding Certain Items $0.19 $0.38 $0.62
$0.99 ====== ====== ====== ====== *T -0- *T Cash Flow from
Operations to Adjusted EBITDA (In Millions) (unaudited) Three
Months Nine Months Ended Ended September 30, September 30,
------------- ------------- 2006 2005 2006 2005 ------ ------
------ ------ Cash Flow from Operations $2.6 $16.7 $32.2 $38.0
Changes in Working Capital 7.7 (0.8) (1.2) (0.2) Income Taxes Paid
0.3 0.4 1.1 0.5 Interest Paid 2.1 0.0 7.7 4.8 Interest Received
(0.3) (0.2) (0.8) (0.6) Stock based compensation charge (non- cash)
0.0 2.0 (0.6) 0.3 Other 0.3 0.0 (0.1) 0.2 ------ ------ ------
------ Adjusted EBITDA $12.7 $18.1 $38.3 $43.0 ====== ====== ======
====== *T
Hungarian Telephone (AMEX:HTC)
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From May 2024 to Jun 2024
Hungarian Telephone (AMEX:HTC)
Historical Stock Chart
From Jun 2023 to Jun 2024