Alaska Communications Systems Group, Inc. (NASDAQ: ALSK) today
reported financial results for the fourth quarter and full year
ended December 31, 2018.
“Our 2018 results are robust with total revenue growth of 2.5%
for full year 2018 and annual adjusted EBITDA growth of 4.9%. Free
cash flow performance was strong at $7.2 million while our capital
expenditures position us for continued growth in future years.
“These results reflect our continued performance in Business and
Wholesale, driven by our growth engine of the larger Enterprise and
Carrier customers. Our technology differentiation was further
strengthened by investments in Fixed Wireless, satellite, and
Software Defined Networking, along with continued investments in
our fiber network particularly in support of 5G wireless
backhaul.
“Attention to prudent cost management has been and will continue
to be a focus reflecting our commitment to adjusted EBITDA and
adjusted free cash flow improvements.
“With clear line of sight to continued growth in our Enterprise
and Carrier customer segment, combined with the recent balance
sheet refinancing work, we have conviction about high quality
future operating results, while we continue to explore all
strategic opportunities for shareholder value creation,” said Anand
Vadapalli, president and CEO of Alaska Communications.
Revenue Highlights
- Total revenue:
- Revenue grew to $58.7 million for the
fourth quarter of 2018, compared to $54.9 in the fourth quarter of
2017. Annual revenue grew to $232.5 million for 2018, from $226.9
million in 2017.
- Total broadband revenue was $31.5
million for the fourth quarter of 2018, compared to $28.4 million
for the fourth quarter of 2017, and was $125.4 million for 2018,
compared to $123.1 million for 2017.
- Business and wholesale:
- Business and wholesale revenue was
$37.0 million for the fourth quarter of 2018, compared to $33.1
million for the fourth quarter of 2017. 2018 revenue was $144.6
million, comprising 62.2 percent of total revenue, compared to
$139.1 million for 2017, comprising 61.3 percent of total
revenue.
- Business and wholesale broadband
revenue was $25.0 million for the fourth quarter of 2018 compared
to $22.1 million for the fourth quarter of 2017, and was $99.3
million for 2018, compared to $97.6 million for 2017.
- Consumer:
- Consumer revenue was $9.2 million for
the fourth quarters of 2018 and 2017. 2018 revenue was $37.3
million, comprising 16.0 percent of total revenue, compared to
$37.1 million for 2017, comprising 16.4 percent of total
revenue.
- Consumer broadband revenue was $6.4
million for the fourth quarter of 2018, compared to $6.2 million
for the fourth quarter of 2017, and was $26.1 million for 2018,
compared to $25.4 million for 2017.
- Regulatory:
- Regulatory revenue was $12.5 million
for the fourth quarter of 2018, compared to $12.6 million for the
fourth quarter of 2017. 2018 revenue was $50.6 million, comprising
21.8 percent of total revenue, compared to $50.7 million for 2017,
comprising 22.3 percent of total revenue.
Financial Metrics
- Net income for the fourth quarter of
2018 was $1.7 million, compared to net loss of $2.9 million in the
fourth quarter of 2017. 2018 net income was $9.1 million, compared
to net loss of $6.1 million for 2017.
- Net cash provided by operating
activities for the fourth quarter of 2018 was $9.3 million,
compared to $4.7 million in the fourth quarter of 2017. 2018 cash
provided by operating activities was $56.2 million, compared to
$30.4 million for 2017.
- Capital expenditures for the fourth
quarter of 2018 were $12.5 million, compared to $8.9 million fourth
quarter of 2017. 2018 capital expenditures were $38.0 million,
compared to $32.9 million in 2017.
Non-GAAP Metrics:
- Adjusted EBITDA for the fourth quarter
of 2018 was $14.1 million, compared to $15.0 million for the fourth
quarter of 2017. 2018 Adjusted EBITDA was $60.2 million, compared
to $57.3 million for 2017.
- Adjusted free cash outflow for the
fourth quarter of 2018 was $3.0 million, compared to free cash
inflow of $2.3 million for the fourth quarter of 2017. 2018
Adjusted free cash flow was $7.2 million, compared to $8.8 million
for 2017.
Reconciliations of non-GAAP financial measures to GAAP financial
measures can be found in tables at the end of this release.
Balance Sheet Metrics
- Cash was $15.0 million at December 31,
2018, compared to $16.2 million at December 31, 2017.
- Net debt was $161.2 million at December
31, 2018, compared to $177.2 million at December 31, 2017.
Laurie Butcher, Alaska Communications senior vice-president of
finance, said, “We are pleased to report that we met or exceeded
our guidance in all areas for 2018. Additionally, on January 15,
2019 we closed a transaction securing favorable terms for a new
senior credit facility in a volatile market, while increasing
access to capital. As we enter 2019, we are well positioned to
perform to our business plan which is expected to generate
attractive adjusted free cash flow for the year.”
2019 Guidance
The company sets guidance as follows:
- Total Revenue to be between $230
million and $235 million
- Adjusted EBITDA to be between $60
million and $62 million
- Capital Expenditures to be between $40
million and $42 million
- Adjusted Free Cash Flow to be between
$10 million and $12 million
Conference Call
The Company will host a conference call and live webcast on
Thursday, March 7, 2019 at 2:00 p.m. Eastern Time to discuss the
results. Parties in the United States and Canada can access the
call at 1-888-205-6786 and enter pass code 366695. All other
parties can access the call at 1-856-344-9315 and use the same
code. There will be a live question and answer session after the
prepared remarks.
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, 2019
at 5:00 p.m. Eastern Time. To hear the replay, parties in the U.S.
and Canada can call 1-888-203-1112 and enter pass code 8903679. All
other parties can call 1-719-457-0820 and enter pass code
8903679.
About Alaska Communications
Alaska Communications (NASDAQ: ALSK) is the leading provider of
advanced broadband and managed IT services for businesses and
consumers in Alaska. The company operates a highly reliable,
advanced statewide data network with the latest technology and the
most diverse undersea fiber optic system connecting Alaska to the
contiguous U.S. For more information, visit
www.alaskacommunications.com or www.alsk.com.
Non-GAAP Measures
In an effort to provide investors with additional information
regarding our financial results, we have provided certain non-GAAP
financial information, including Adjusted EBITDA, Adjusted Free
Cash Flow and Net Debt. Adjusted EBITDA eliminates the effects of
period to period changes in costs that are not directly
attributable to the underlying performance of the Company’s
business operations and is used by Management and the Company’s
Board of Directors to evaluate current operating financial
performance, analyze and evaluate strategic and operational
decisions and better evaluate comparability between periods.
Adjusted Free Cash Flow is a non-GAAP liquidity measured used by
Management and the Company’s Board of Directors to assess the
Company’s ability to generate cash and plan for future operating
and capital actions. Adjusted EBITDA and Adjusted Free Cash Flow
are common measures utilized by our peers (other telecommunications
companies) and we believe they provide useful information to
investors and analysts about the Company’s operating results,
financial condition and cash flows. Net Debt provides Management
and the Company’s Board of Directors with a measure of the
Company’s current leverage position. The definition and computation
of these non-GAAP measures are provided on Schedules 4, 6 and 9 to
this press release. Adjusted EBITDA and Adjusted Free Cash Flow
should not be considered a substitute for Net Income, Net Cash
Provided by Operating Activities and other measures of financial
performance recorded in accordance with GAAP. Reconciliations of
our non-GAAP measures to our nearest GAAP measures can be found in
the tables in this release. Other companies may not calculate
non-GAAP measures in the same manner as Alaska Communications. The
Company does not provide reconciliations of guidance for Adjusted
EBITDA to Net Income, and Adjusted Free Cash Flow to Net Cash from
Operating Activities, in reliance on the unreasonable efforts
exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The
Company does not forecast certain items required to develop the
comparable GAAP financial measures. These items are charges and
benefits for uncollectible accounts, certain other non-cash
expenses, unusual items typically excluded from Adjusted EBITDA and
Adjusted Free Cash Flow, and changes in operating assets and
liabilities (generally the most significant of these items,
representing cash inflows of $9.9 million in the twelve-month
period of 2018).
Forward-Looking Statements
This press 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 the Company’s control. Such
factors include, without limitation, Federal and Alaska Universal
Service Fund changes, funding through the rural health care
universal service support mechanism and our ability to comply with
the regulatory requirements to receive those support payments,
adverse economic conditions, the effects of competition in our
markets, our relatively small size compared with our competitors,
the Company’s ability to compete, manage, integrate, market,
maintain, and attract sufficient customers for its products and
services, adverse changes in labor matters, including workforce
levels, our ability to service our debt and refinance as required,
labor negotiations, employee benefit costs, our ability to control
other operating costs, disruption of our supplier’s provisioning of
critical products or services, the actions of activist
shareholders, the impact of natural or man-made disasters, changes
in Company's relationships with large customers, unforeseen changes
in public policies, regulatory changes, changes in technology and
standards, our internal control over financial reporting, and
changes in accounting standards or policies, which could affect
reported financial results. For further information regarding risks
and uncertainties associated with the Company’s business, please
refer to the Company's SEC filings, including, but not limited to,
the sections entitled "Risk Factors" and "Management's Discussion
and Analysis of Financial Condition and Results of Operations" in
our annual report on Form 10-K and quarterly reports on Form 10-Q.
Copies of the Company's SEC filings may be obtained by contacting
its investor relations department at (907) 564-7556 or by visiting
its investor relations website at www.alsk.com.
Schedule 1 ALASKA
COMMUNICATIONS SYSTEMS GROUP, INC. CONSOLIDATED SCHEDULE OF
OPERATIONS (Unaudited, In Thousands Except Per Share
Amounts) Three Months Ended Twelve Months
Ended December 31, December
31, 2018 2017
2018 2017
Operating revenues $ 58,689 $ 54,935 $ 232,468 $ 226,905
Operating expenses: Cost of services and sales (excluding
depreciation and amortization) 27,914 26,318 107,509 104,604
Selling, general & administrative 17,249 14,281 66,647 66,612
Depreciation and amortization 8,572 9,193 33,908 36,317 Loss (gain)
on disposal of assets, net
69
(23 ) 125
50 Total operating expenses
53,804 49,769
208,189 207,583
Operating income 4,885 5,166 24,279 19,322
Other income and (expense): Interest expense (3,238 ) (3,525 )
(13,429 ) (14,860 ) Loss on extinguishment of debt - - - (7,527 )
Interest income 82 7 156 34 Other (expense) income, net
(56 ) (154
) 23
(615 ) Total other income and (expense)
(3,212 )
(3,672 ) (13,250
) (22,968 )
Income (loss) before income tax benefit (expense) 1,673 1,494
11,029 (3,646 ) Income tax benefit (expense)
39 (4,470 )
(2,041 )
(2,584 ) Net income (loss) 1,712
(2,976 ) 8,988 (6,230 ) Less net loss attributable to
noncontrolling interest
(8 )
(29 ) (92
) (129 ) Net
income (loss) attributable to Alaska Communications
$
1,720 $ (2,947
) $ 9,080
$ (6,101 ) Net income
(loss) per share attributable to Alaska Communications: Net income
(loss) applicable to common shares
$
1,720 $ (2,947
) $ 9,080
$ (6,101 ) Basic and
Diluted
$ 0.03 $
(0.06 ) $ 0.17
$ (0.12 )
Weighted average shares outstanding: Basic
53,185 52,448
53,042 52,232
Diluted
54,277
52,448 53,840
52,232 Schedule 2
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC. CONSOLIDATED
BALANCE SHEETS (Unaudited, In Thousands Except Per Share
Amounts) December 31, December 31,
Assets 2018 2017
Current assets: Cash and cash equivalents $ 13,351 $ 4,354
Restricted cash 1,634 11,814 Short-term investments 134 - Accounts
receivable, net of allowance of $3,936 and $2,729 31,472 32,535
Materials and supplies 6,737 7,046 Prepayments and other current
assets
12,169 6,115
Total current assets 65,497 61,864 Property, plant
and equipment 1,390,622 1,357,929 Less: accumulated depreciation
and amortization
(1,017,442 )
(991,816 ) Property, plant and
equipment, net 373,180 366,113 Deferred income taxes 498
3,394 Other assets
16,010
11,415 Total assets
$
455,185 $ 442,786
Liabilities and Stockholders' Equity Current
liabilities: Current portion of long-term obligations $ 2,289 $
17,030 Accounts payable, accrued and other current liabilities
40,957 36,148 Advance billings and customer deposits
4,024 4,213 Total
current liabilities 47,270 57,391 Long-term obligations, net
of current portion 168,023 168,959 Deferred income taxes 2,315 596
Other long-term liabilities, net of current portion
67,827 61,330 Total
liabilities
285,435
288,276 Commitments and contingencies Alaska
Communications stockholders' equity: Common stock, $.01 par value;
145,000 authorized 533 525 Additional paid in capital 160,514
158,969 Retained earnings (accumulated deficit) 10,439 (3,579 )
Accumulated other comprehensive loss
(2,675
) (2,396 ) Total
Alaska Communications stockholders' equity 168,811 153,519
Noncontrolling interest
939
991 Total stockholders' equity
169,750 154,510
Total liabilities and stockholders' equity
$
455,185 $ 442,786
Schedule 3
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC. CONSOLIDATED
STATEMENT OF CASH FLOWS (Unaudited, In Thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
2018 2017
2018 2017 Cash Flows from
Operating Activities: Net income (loss) $ 1,712 $ (2,976 ) $ 8,988
$ (6,230 )
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization 8,572 9,193 33,908 36,317 Loss (gain)
on the disposal of assets, net 69 (23 ) 125 50 Amortization of debt
issuance costs and debt discount 331 412 1,353 2,363 Loss on
extinguishment of debt - - - 7,527 Amortization of deferred
capacity revenue (1,101 ) (911 ) (4,098 ) (3,512 ) Stock-based
compensation 548 667 1,757 1,509 Income tax (benefit) expense (39 )
4,470 2,041 2,584 Charge for uncollectible accounts 374 1,015 2,745
3,577 Other non-cash expense, net 57 145 225 575 Income taxes
receivable (692 ) (8,629 ) (729 ) (8,052 ) Changes in operating
assets and liabilities
(515 )
1,355 9,880
(6,302 ) Net cash provided by
operating activities
9,316
4,718 56,195
30,406 Cash Flows from Investing
Activities: Capital expenditures (12,525 ) (8,891 ) (37,957 )
(32,945 ) Capitalized interest (545 ) (368 ) (2,001 ) (1,140 )
Change in unsettled capital expenditures 1,584 (507 ) (227 ) 1,500
Proceeds on sale of assets
-
34 1
40 Net cash used by investing activities
(11,486 ) (9,732
) (40,184 )
(32,545 ) Cash Flows from
Financing Activities: Repayments of long-term debt (1,866 ) (2,088
) (31,030 ) (176,466 ) Proceeds from the issuance of long-term debt
- - 14,000 183,000 Debt issuance costs and discounts - - - (5,559 )
Cash paid for debt extinguishment - - - (5,522 ) Cash proceeds from
noncontrolling interest - - 40 75 Payment of withholding taxes on
stock-based compensation (5 ) (4 ) (415 ) (605 ) Proceeds from
issuance of common stock
100
123 211
239 Net cash used by financing activities
(1,771 )
(1,969 ) (17,194
) (4,838 )
Change in cash, cash equivalents and restricted cash (3,941 )
(6,983 ) (1,183 ) (6,977 ) Cash, cash equivalents and
restricted cash, beginning of period
18,926
23,151 16,168
23,145 Cash, cash
equivalents and restricted cash, end of period
$
14,985 $ 16,168
$ 14,985 $
16,168 Supplemental Cash Flow Data:
Interest paid $ 3,531 $ 3,630 $ 14,254 $ 14,504 Income taxes
(refunded) paid, net $ (1 ) $ (322 ) $ 3 $ (946 )
Schedule 4 ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
ADJUSTED EBITDA (Unaudited, In Thousands)
Three Months Ended Twelve Months
Ended December 31, December
31, 2018 2017
2018 2017 Net income
(loss) $ 1,712 $ (2,976 ) $ 8,988 $ (6,230 ) Add (subtract):
Interest expense 3,238 3,525 13,429 14,860 Loss on extinguishment
of debt - - - 7,527 Interest income (82 ) (7 ) (156 ) (34 )
Depreciation and amortization 8,572 9,193 33,908 36,317 Other
expense (income), net 56 154 (23 ) 615 Loss (gain) on the disposal
of assets, net 69 (23 ) 125 50 Income tax (benefit) expense (39 )
4,470 2,041 2,584 Stock-based compensation 548 667 1,757 1,509 Net
loss attributable to noncontrolling interest
8
29 92
129 Adjusted EBITDA
$ 14,082 $
15,032 $ 60,161
$ 57,327
NonGAAP Measures:
The Company provides certain non-GAAP financial information,
including Adjusted EBITDA, Adjusted Free Cash Flow and Net Debt.
Adjusted EBITDA eliminates the effects of period to period changes
in costs that are not directly attributable to the underlying
performance of the Company’s business operations and is used by
Management and the Company’s Board of Directors to evaluate current
operating financial performance, analyze and evaluate strategic and
operational decisions and better evaluate comparability between
periods. Adjusted Free Cash Flow is a non-GAAP liquidity measure
used by Management to assess the Company’s ability to generate cash
and plan for future operating and capital actions. Adjusted EBITDA
and Adjusted Free Cash Flow are common measures utilized by our
peers (other telecommunications companies) and we believe they
provide useful information to investors and analysts about the
Company’s operating results, financial condition and cash flows.
Net Debt provides Management and the Board of Directors with a
measure of the Company’s current leverage position.
The Company does not provide reconciliations of guidance for
Adjusted EBITDA to Net Income, and Adjusted Free Cash Flow to Net
Cash Provided by Operating Activities, in reliance on the
unreasonable efforts exception provided under Item 10(e)(1)(i)(B)
of Regulation S-K. The Company does not forecast certain items
required to develop the comparable GAAP financial measures. These
items are charges and benefits for uncollectible accounts, certain
other non-cash expenses, unusual items typically excluded from
Adjusted EBITDA and Adjusted Free Cash Flow, and changes in
operating assets and liabilities (generally the most significant of
these items, representing cash inflows of $9.9 million in the
twelve-month period ended December 31, 2018).
Adjusted EBITDA and Adjusted Free Cash Flow are not GAAP
measures and should not be considered a substitute for net income,
net cash provided by operating activities, or net cash provided or
used. Adjusted EBITDA as computed above is not consistent with the
definition of Consolidated EBITDA referenced in our 2017 Senior
Credit Facility and 2019 Senior Credit Facility, and other
companies may not calculate Non-GAAP measures in the same manner we
do.
Adjusted EBITDA is defined as net income (loss) before interest
expense and income, loss on extinguishment of debt, depreciation
and amortization, other income and expense, gain or loss on asset
purchases or disposals, provision for income taxes, stock-based
compensation, and net loss attributable to noncontrolling
interest.
Schedule 5 ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
RECONCILIATION OF NET CASH PROVIDED BY
OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW
(Unaudited, In Thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
2018 2017
2018 2017 Net cash
provided by operating activities $ 9,316 $ 4,718 $ 56,195 $ 30,406
Adjustments to reconcile net cash provided
by operating activities to adjusted free cash flow:
Capital expenditures (12,525 ) (8,891 ) (37,957 ) (32,945 )
Milestone payments received for special projects - - 1,850 -
Deferred cost of sales for special projects (500 ) - (500 ) -
Amortization of deferred capacity revenue 1,101 911 4,098 3,512
Amortization of GCI capacity revenue (522 ) (523 ) (2,071 ) (2,072
) Amortization of debt issuance costs and debt discount (331 ) (412
) (1,353 ) (2,363 ) Interest expense 3,238 3,525 13,429 14,860
Interest paid (3,531 ) (3,630 ) (14,254 ) (14,504 ) Interest income
(82 ) (7 ) (156 ) (34 ) Income taxes receivable 692 8,629 729 8,052
Income taxes refunded (paid), net 1 322 (3 ) 946 Charge for
uncollectible accounts (374 ) (1,015 ) (2,745 ) (3,577 ) Other
expense (income), net 56 154 (23 ) 615 Net loss attributable to
noncontrolling interest 8 29 92 129 Other non-cash expense, net (57
) (145 ) (225 ) (575 ) Changes in operating assets and liabilities
515 (1,355
) (9,880 )
6,302 Adjusted free cash flow
$
(2,995 ) $
2,310 $ 7,226
$ 8,752 Schedule 6
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC. ADJUSTED FREE
CASH FLOW (Unaudited, In Thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
2018 2017
2018 2017 Adjusted
EBITDA $ 14,082 $ 15,032 $ 60,161 $ 57,327 Less: Capital
expenditures (12,525 ) (8,891 ) (37,957 ) (32,945 ) Amortization of
GCI capacity revenue (522 ) (523 ) (2,071 ) (2,072 ) Income taxes
refunded (paid), net 1 322 (3 ) 946 Interest paid
(3,531 ) (3,630
) (14,254 )
(14,504 ) (2,495
) 2,310
5,876 8,752 Impact
of special projects: Milestone payments received for special
projects - - 1,850 - Deferred cost of sales for special projects
(500 ) -
(500 )
- (500 )
- 1,350
- Adjusted free cash flow*
$ (2,995 ) $
2,310 $ 7,226
$ 8,752 * Quarterly
Adjusted Free Cash Flow fluctuates and should not be viewed as an
indicator of annual performance. Onetime events, seasonality of
capital spend and the timing of interest payments may result in
negative Adjusted Free Cash Flow in one or more quarters.
NonGAAP Measures:
Adjusted Free Cash Flow is a non-GAAP liquidity measure and is
defined as Adjusted EBITDA, less recurring operating cash
requirements which include capital expenditures, less cash income
taxes refunded or paid, cash interest paid, amortization of GCI
capacity revenue and cash receipts and payments, deferred costs and
amortized revenue and expense associated with certain prefunded
special projects as defined in the 2019 Senior Credit Facility.
Amortization of deferred revenue associated with our
interconnection agreement with GCI is excluded from Adjusted Free
Cash Flow because no cash was received by the Company in connection
with this agreement. Amortization of all other deferred revenue,
including that associated with other IRU capacity arrangements, is
included in Adjusted Free Cash Flow because cash was received by
the Company, typically at contract inception, and is being
recognized as revenue over the term of the relevant agreement.
Items associated with certain prefunded special projects as defined
in the 2019 Senior Credit Facility are excluded from Adjusted Free
Cash Flow primarily due to the magnitude and timing of the cash
receipts relative to the subsequent recognition of revenue and
expense.
See Schedule 3 for Net cash provided by operating activities,
Net cash used by investing activities, and Net cash used by
financing activities.
See Schedule 5 for the reconciliation of net cash provided by
operating activities to Adjusted Free Cash Flow.
Schedule 7 ALASKA
COMMUNICATIONS SYSTEMS GROUP, INC. REVENUE BY CUSTOMER
GROUP (Unaudited, In Thousands) Three Months
Ended Twelve Months Ended December
31, December 31,
2018 2017
2018 2017 Business and
wholesale revenue Business broadband $ 14,898 $ 12,298 $ 60,934 $
61,559 Business voice and other 7,341 6,590 28,429 26,508 Managed
IT services 1,806 1,215 5,742 4,293 Equipment sales and
installations 1,257 1,695 5,127 4,412 Wholesale broadband 10,141
9,829 38,362 36,081 Wholesale voice and other
1,545 1,464
6,000 6,267 Total
business and wholesale revenue
36,988
33,091 144,594
139,120 Growth in business and wholesale 11.8 %
3.9 % Consumer revenue Broadband 6,418 6,241 26,144 25,441 Voice
and other
2,803
2,978 11,158
11,676 Total consumer revenue
9,221 9,219
37,302 37,117 Total
business, wholesale, and consumer revenue
46,209 42,310
181,896 176,237 Growth in
business, wholesale and consumer revenue 9.2 % 3.2 % Growth in
broadband revenue 10.9 % 1.9 % Regulatory revenue Access
7,557 7,701 30,878 30,974 High cost support
4,923 4,924
19,694 19,694 Total
regulatory revenue
12,480
12,625 50,572
50,668 Total revenue
$
58,689 $ 54,935
$ 232,468 $
226,905 Growth in total revenue 6.8 % 2.5 %
Schedule 8 ALASKA
COMMUNICATIONS SYSTEMS GROUP, INC. KEY OPERATING
STATISTICS (Unaudited) Three Months Ended
December 31, September 30, December 31,
2018 2018
2017 Voice: Business access lines
69,382 70,110 71,699 Consumer access lines 25,784 26,497 29,262
Voice ARPU business $ 25.64 $ 25.35 $ 23.29 Voice ARPU
consumer $ 34.04 $ 32.05 $ 31.65
Broadband: Business
connections 15,234 15,372 15,293 Consumer connections 32,793 32,741
33,904 Broadband ARPU business $ 324.37 $ 332.33 $ 267.44
Broadband ARPU consumer $ 65.00 $ 65.61 $ 60.72
Monthly
Average Churn: Business voice 1.0 % 0.8 % 0.9 % Consumer
broadband 2.3 % 2.8 % 2.7 % Consumer voice 1.2 % 1.4 % 1.6 %
Schedule 9 ALASKA COMMUNICATIONS SYSTEMS
GROUP, INC. LONG TERM DEBT AND NET DEBT (Unaudited,
In Thousands) December 31, December 31,
2018 2017 2017 senior
secured credit facility due 2023 $ 171,750 $ 178,350 Debt discount
- 2017 senior secured credit facilities due 2023 (2,024 ) (2,668 )
Debt issuance costs - 2017 senior secured credit facilities due
2023 (2,182 ) (2,869 ) 6.25% convertible notes due 2018 - 10,044
Debt discount - 6.25% convertible notes due 2018 - (18 ) Debt
issuance costs - 6.25% convertible notes due 2018 - (4 ) Capital
leases and other long-term obligations
2,768
3,154 Total debt 170,312 185,989
Less current portion
(2,289 )
(17,030 ) Long-term obligations,
net of current portion
$ 168,023
$ 168,959 Total debt $
170,312 $ 185,989 Plus debt discounts and debt issuance costs
4,206 5,559
Gross debt 174,518 191,548 Cash and cash equivalents (13,351 )
(4,354 ) Restricted cash held for 6.25% convertible notes due 2018
- (10,044
) Net debt
$ 161,167
$ 177,150
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190306005759/en/
Media ContactHeather Cavanaugh, 907-564-7722Director, External
Affairs and Corporate Communications
Investor ContactTiffany Smith, 907-564-7556Manager, Board and
Investor Relationsinvestors@acsalaska.com
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Alaska Communications Sy... (NASDAQ:ALSK)
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