Delivers 2Q14 Revenue of $50.2 Million and Adjusted EBITDA of $22.7 Million
Maintains 2014 Revenue and Adjusted EBITDA Guidance of Approximately $200 Million and $90 Million, Respectively
Reiterates FTTC Installation Targets of 825 at YE14 and Over 40% FTTC Revenue Growth in 2014
Project Ark On Track for 3Q14 Launch
Annualized Fiber Data Adjusted EBITDA of Nearly $54 Million
WAYNESBORO, Va.–(BUSINESS WIRE)–
Lumos Networks Corp. (“Lumos Networks” or the “Company”) (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 second quarter of 2014.
Total revenue for the second quarter of 2014 was $50.2 million, compared to $52.3 million for the second quarter of 2013 and $50.1 million in the first quarter of 2014. Total Adjusted EBITDA in the second quarter of 2014 was $22.7 million, compared to $24.6 million in the second quarter of 2013 and $22.6 million in the first quarter of 2014.
Total Data segment revenue in the second quarter of 2014 was $26.7 million, up over 2% sequentially, and constituted over 53% of total revenue versus 49% in the prior year period. Total Adjusted EBITDA for the Data segment reached $13.4 million in the second quarter of 2014, and Adjusted EBITDA margin for the Data segment was 50.2% in the second quarter, up from 48.7% in the first quarter.
Lumos Networks President and CEO Timothy G. Biltz said, “I am satisfied that Lumos Networks delivered results in the second quarter that slightly exceeded our internal targets and maintained its annual 2014 guidance for revenue and Adjusted EBITDA of $200 million and $90 million, respectively. Our FTTC operations continued its strong performance, growing 8.5% sequentially and surpassing $5 million in quarterly revenues. We see a strong pipeline for both FTTC sales and installations for the rest of 2014.”
Mr. Biltz continued, “While Transport revenue grew slightly quarter on quarter, we continue to believe Transport revenue will decline in the range of 8-10% in 2014 due to the churn of TDM circuits as carriers groom their networks. Our Enterprise revenue dipped slightly sequentially due to previously disclosed churn events, but our goal is for accelerated growth in 2015 due to the following initiatives: new customer renewal and retention programs, increased reach of our Carrier End User distribution channels, and the connection to more commercial data centers.”
“My focus remains on continuing to aggressively invest in the fiber infrastructure and personnel necessary to support long-term fiber contracts in key growth areas like Fiber to the Cell, Data Center Connectivity, Carrier End User and Edge-Out markets like Richmond, Virginia,” Mr. Biltz said. “Our primary mission is building our fiber revenue backlog through 2014 in order to accelerate our Data revenue growth in 2015.”
“To that end,” Mr. Biltz finished, “Lumos Networks made significant progress in expanding its fiber network in the second quarter, adding over 80 route miles, substantially completing the build of a critical long-haul route in Virginia between Richmond and Charlottesville, connecting a Peak 10 data center in Richmond, connecting 33 on-net buildings and connecting 40 additional FTTC sites.”
Highlights
- The Company ended the second quarter of 2014 with 673 Fiber to the Cell (“FTTC”) sites connected, up 40 sequentially, which represents a year-over-year increase in total FTTC sites of approximately 45%. Lumos Networks reiterates its guidance of reaching 825 FTTC sites by year end 2014 and reiterates its target of selling 500 to 700 unique and second FTTC circuits during 2014. Lumos Networks maintains its target for 1,500 FTTC sites within the next few years.
- Lumos Networks reiterates its target for connected commercial data centers of 20 by year end 2014. During the quarter, Lumos Networks connected to Peak 10 in Richmond, Virginia, its fourteenth connected commercial data center with several more in the short-term pipeline. As Enterprise bandwidth traffic moves increasingly into the Cloud, the Company believes that this segment will constitute an increasingly large percentage of total Enterprise revenue.
- The Company added approximately 80 fiber route miles in the second quarter of 2014, all of which were constructed and owned by Lumos Networks, and had a fiber network totaling approximately 7,550 route miles at the end of the quarter. Additionally, the Company added 33 on-net buildings in the quarter to reach 1,420.
- Project Ark, an 850-mile MEF certified Carrier Ethernet MPLS/IP network overlay designed primarily for FTTC traffic, which will allow up to 1 terabyte of total bandwidth traffic, is on track for completion in 3Q14. The Company continues to expect to begin migrating fiber bandwidth traffic onto the Ark in 4Q14.
- As of the end of the second quarter of 2014, the Company’s 110-mile fiber market in Richmond, Virginia had annualized Enterprise and Transport sales bookings of approximately $4.2 million.
- On July 29, 2014, the Board of Directors of Lumos Networks declared a dividend on its common stock in the amount of $0.14 per share to be paid on October 9, 2014 to stockholders of record on September 11, 2014.
Business Outlook
For the full year 2014, the Company maintains its financial guidance for revenue of approximately $200 million and Adjusted EBITDA of approximately $90 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, Interim 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 9:30 A.M. (ET) on August 7, 2014.
The webcast may be accessed via the Internet at http://ir.lumosnetworks.com/ and the live call (“Lumos Networks Second 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 August 28, 2014 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: 10050045
The webcast will also be archived and the replay may be accessed at http://ir.lumosnetworks.com/.
About Lumos Networks
Lumos Networks is a fiber-based service provider in the Mid-Atlantic region serving carrier, business and residential customers over a dense fiber network offering data, voice and IP services. With headquarters in Waynesboro, VA, Lumos Networks serves Virginia, West Virginia and portions of Pennsylvania, Kentucky, Ohio, and Maryland over a fiber network of approximately 7,550 fiber route miles. 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 noncontrolling interests, other expenses/income, 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 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 for the year ended December 31, 2013.
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 | ||||||
| June 30, 2014 | December 31, 2013 | |||||
| (In thousands) | ||||||
| ASSETS | ||||||
| Current Assets | ||||||
| Cash and cash equivalents | $ | 9,804 | $ | 14,114 | ||
| Marketable securities | 36,596 | 38,480 | ||||
| Restricted cash 1 | 4,324 | 4,324 | ||||
| Accounts receivable, net | 22,687 | 22,917 | ||||
| Other receivables | 820 | 1,588 | ||||
| Income tax receivable | 795 | 1,116 | ||||
| Prepaid expenses and other | 4,301 | 3,960 | ||||
| Deferred income taxes | 7,189 | 7,289 | ||||
| Total Current Assets | 86,516 | 93,788 | ||||
| Securities and investments | 767 | 699 | ||||
| Property, plant and equipment, net | 396,946 | 378,723 | ||||
| Other Assets | ||||||
| Goodwill | 100,297 | 100,297 | ||||
| Other intangibles, net | 20,477 | 25,071 | ||||
| Deferred charges and other assets | 7,965 | 7,722 | ||||
| Total Other Assets | 128,739 | 133,090 | ||||
| Total Assets | $ | 612,968 | $ | 606,300 | ||
| LIABILITIES AND EQUITY | ||||||
| Current Liabilities | ||||||
| Current portion of long-term debt | $ | 10,250 | $ | 6,688 | ||
| Accounts payable | 12,090 | 13,076 | ||||
| Dividends payable | 3,131 | 3,091 | ||||
| Advance billings and customer deposits | 13,771 | 13,502 | ||||
| Accrued compensation | 1,295 | 2,185 | ||||
| Accrued operating taxes | 4,394 | 4,375 | ||||
| Other accrued liabilities | 3,981 | 3,992 | ||||
| Total Current Liabilities | 48,912 | 46,909 | ||||
| Long-Term Liabilities | ||||||
| Long-term debt, excluding current portion | 367,194 | 373,290 | ||||
| Retirement benefits | 16,782 | 16,848 | ||||
| Deferred income taxes | 84,273 | 79,087 | ||||
| Other long-term liabilities | 2,775 | 2,832 | ||||
| Income tax payable | 419 | 328 | ||||
| Total Long-term Liabilities | 471,443 | 472,385 | ||||
| Stockholders’ Equity | 91,885 | 86,333 | ||||
| Noncontrolling Interests | 728 | 673 | ||||
| Total Equity | 92,613 | 87,006 | ||||
| Total Liabilities and Equity | $ | 612,968 | $ | 606,300 | ||
| 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 June 30, | Six months ended June 30, | ||||||||||||||
| (In thousands, except per share amounts) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
| Operating Revenues | $ | 50,165 | $ | 52,311 | $ | 100,255 | $ | 104,845 | ||||||||
| Operating Expenses | ||||||||||||||||
| Network access costs | 10,190 | 10,501 | 20,904 | 21,655 | ||||||||||||
| Selling, general and administrative 1 | 18,487 | 18,896 | 36,419 | 36,916 | ||||||||||||
| Depreciation and amortization | 11,210 | 10,796 | 21,869 | 20,359 | ||||||||||||
| Accretion of asset retirement obligations | 30 | 33 | 57 | 64 | ||||||||||||
| Restructuring charges | – | – | – | 40 | ||||||||||||
| Total Operating Expenses | 39,917 | 40,226 | 79,249 | 79,034 | ||||||||||||
| Operating Income | 10,248 | 12,085 | 21,006 | 25,811 | ||||||||||||
| Other Income (Expenses) | ||||||||||||||||
| Interest expense | (3,812 | ) | (3,406 | ) | (7,786 | ) | (6,534 | ) | ||||||||
| (Loss) gain on interest rate swap derivatives | (16 | ) | 267 | 93 | 454 | |||||||||||
| Other income (expense), net | 170 | (907 | ) | 350 | (882 | ) | ||||||||||
| Income Before Income Tax Expense | 6,590 | 8,039 | 13,663 | 18,849 | ||||||||||||
| Income Tax Expense | 2,711 | 3,241 | 5,689 | 7,573 | ||||||||||||
| Net Income | 3,879 | 4,798 | 7,974 | 11,276 | ||||||||||||
| Net Income Attributable to Noncontrolling Interests | (33 | ) | (36 | ) | (66 | ) | (105 | ) | ||||||||
| Net Income Attributable to Lumos Networks Corp. | $ | 3,846 | $ | 4,762 | $ | 7,908 | $ | 11,171 | ||||||||
| Basic and Diluted Earnings per Common Share Attributable to Lumos Networks Corp. Stockholders: | ||||||||||||||||
| Earnings per share – basic | $ | 0.17 | $ | 0.22 | $ | 0.36 | $ | 0.51 | ||||||||
| Earnings per share – diluted | $ | 0.17 | $ | 0.22 | $ | 0.35 | $ | 0.51 | ||||||||
| Cash Dividends Declared per Share – Common Stock | $ | 0.14 | $ | 0.14 | $ | 0.28 | $ | 0.28 | ||||||||
| 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 $1.3 million for the three months ended June 30, 2014 and 2013, respectively, and $2.0 million and $2.4 million for the six months ended June 30, 2014 and 2013, respectively. | ||
| Lumos Networks Corp. | ||||||||
| Condensed Consolidated Statements of Cash Flows | Six Months Ended June 30, | |||||||
| (In thousands) | 2014 | 2013 | ||||||
| Cash Flows from Operating Activities: | ||||||||
| Net income | $ | 7,974 | $ | 11,276 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | 17,275 | 15,447 | ||||||
| Amortization | 4,594 | 4,912 | ||||||
| Accretion of asset retirement obligations | 57 | 64 | ||||||
| Deferred income taxes | 5,383 | 6,765 | ||||||
| Gain on interest rate swap derivatives | (93 | ) | (454 | ) | ||||
| Equity-based compensation expense | 1,986 | 2,353 | ||||||
| Amortization of debt issuance costs | 738 | 472 | ||||||
| Write off of unamortized debt issuance costs | – | 890 | ||||||
| Retirement benefits, net of cash contributions and distributions | (813 | ) | (208 | ) | ||||
| Excess tax benefits from share-based compensation | (149 | ) | (179 | ) | ||||
| Other | 128 | (84 | ) | |||||
| Changes in operating assets and liabilities, net | 938 | (5,822 | ) | |||||
| Net Cash Provided by Operating Activities | 38,018 | 35,432 | ||||||
| Cash Flows from Investing Activities: | ||||||||
| Purchases of property, plant and equipment | (37,288 | ) | (26,724 | ) | ||||
| Broadband network expansion funded by stimulus grant | 196 | (30 | ) | |||||
| Purchases of available-for-sale marketable securities | (12,461 | ) | – | |||||
| Proceeds from sale or maturity of available-for-sale marketable securities | 14,174 | – | ||||||
| Change in restricted cash | – | 979 | ||||||
| Cash reimbursement received from broadband stimulus grant | – | 979 | ||||||
| Net Cash Used in Investing Activities | (35,379 | ) | (24,796 | ) | ||||
| Cash Flows from Financing Activities: | ||||||||
| Proceeds from issuance of long-term debt | – | 375,000 | ||||||
| Payment of debt issuance costs | – | (4,849 | ) | |||||
| Principal payments on senior secured term loans | (1,375 | ) | (307,500 | ) | ||||
| Borrowings from revolving credit facility | – | 15,000 | ||||||
| Principal payments on revolving credit facility | – | (18,521 | ) | |||||
| Termination payments of interest rate swap derivatives | – | (858 | ) | |||||
| Cash dividends paid on common stock | (6,195 | ) | (6,071 | ) | ||||
| Principal payments under capital lease obligations | (1,145 | ) | (194 | ) | ||||
| Proceeds from stock option exercises and employee stock purchase plan | 1,630 | 101 | ||||||
| Excess tax benefits from share-based compensation | 149 | 179 | ||||||
| Other | (13 | ) | (91 | ) | ||||
| Net Cash (Used in) Provided by Financing Activities | (6,949 | ) | 52,196 | |||||
| (Decrease) increase in cash and cash equivalents | (4,310 | ) | 62,832 | |||||
| Cash and cash equivalents: | ||||||||
| Beginning of Period | 14,114 | 2 | ||||||
| End of Period | $ | 9,804 | $ | 62,834 | ||||
| Lumos Networks Corp. | ||||||||||||||
| Operating Results, Customer and Network Statistics | ||||||||||||||
| (Dollars in thousands) | Three months ended: | Six months ended: | ||||||||||||
| June 30, 2014 | March 31, 2014 | December 31, 2013 | September 30, 2013 | June 30, 2013 | June 30, 2014 | June 30, 2013 | ||||||||
| Revenue and Adjusted EBITDA | ||||||||||||||
| Revenue | ||||||||||||||
| Enterprise Data | 10,445 | 10,586 | 10,617 | 10,600 | 10,511 | 21,031 | 21,011 | |||||||
| Transport | 11,225 | 10,907 | 11,927 | 11,644 | 12,028 | 22,132 | 24,039 | |||||||
| FTTC | 5,037 | 4,644 | 4,399 | 3,850 | 3,167 | 9,681 | 6,025 | |||||||
| Total Data | 26,707 | 26,137 | 26,943 | 26,094 | 25,706 | 52,844 | 51,075 | |||||||
| Residential and Small Business | 18,290 | 18,647 | 19,094 | 20,055 | 20,453 | 36,937 | 41,510 | |||||||
| RLEC Access | 5,168 | 5,306 | 4,966 | 5,478 | 6,152 | 10,474 | 12,260 | |||||||
| Total Revenue | 50,165 | 50,090 | 51,003 | 51,627 | 52,311 | 100,255 | 104,845 | |||||||
|
Adjusted EBITDA1 |
||||||||||||||
| Data | 13,395 | 12,717 | 14,012 | 13,013 | 13,355 | 26,112 | 26,479 | |||||||
| Residential and Small Business | 5,230 | 5,544 | 5,916 | 5,690 | 6,356 | 10,774 | 13,053 | |||||||
| RLEC Access | 4,098 | 4,306 | 4,104 | 4,343 | 4,840 | 8,404 | 9,714 | |||||||
| Total Adjusted EBITDA | 22,723 | 22,567 | 24,032 | 23,046 | 24,551 | 45,290 | 49,246 | |||||||
| Adjusted EBITDA Margin1 | 45.3% | 45.1% | 47.1% | 44.6% | 46.9% | 45.2% | 47.0% | |||||||
| Capital Expenditures | 19,171 | 18,117 | 22,613 | 18,997 | 11,692 | 37,288 | 26,724 | |||||||
| Adjusted EBITDA less Capital Expenditures | 3,552 | 4,450 | 1,419 | 4,049 | 12,859 | 8,002 | 22,522 | |||||||
| Fiber Network Statistics | ||||||||||||||
| Fiber Route-Miles2 | 7,548 | 7,467 | 7,414 | —- | —- | 7,548 | —- | |||||||
| Fiber Markets | 23 | 23 | 23 | 23 | 23 | 23 | 23 | |||||||
| Fiber to the Cell Sites | 673 | 633 | 608 | 540 | 465 | 673 | 465 | |||||||
| On-Network Buildings | 1,420 | 1,387 | 1,344 | 1,303 | 1,273 | 1,420 | 1,273 | |||||||
| Data Centers | 14 | 13 | 12 | 12 | 12 | 14 | 12 | |||||||
| R&SB Statistics | ||||||||||||||
| Competitive Voice Connections | 88,941 | 92,440 | 95,730 | 98,296 | 102,189 | 88,941 | 102,189 | |||||||
| Video Subscribers | 5,155 | 5,073 | 5,034 | 4,975 | 4,767 | 5,155 | 4,767 | |||||||
| RLEC Access Lines | 28,081 | 28,381 | 28,886 | 29,518 | 30,129 | 28,081 | 30,129 | |||||||
| 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 updated its total fiber route miles as of December 31, 2013 to include both long-haul and metro route miles. Previously, the Company had only disclosed long-haul miles. Quarterly trend information prior to December 31, 2013 is not comparable and is therefore not being presented herein. | |
| Note: Certain prior period revenue and Adjusted EBITDA amounts have been reclassified to conform with the current year presentation. | ||
| Lumos Networks Corp. | ||||||||||||||||
| Reconciliation of Net Income Attributable to Lumos Networks Corp. to Operating Income | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Net Income Attributable to Lumos Networks Corp. | $ | 3,846 | $ | 4,762 | $ | 7,908 | $ | 11,171 | ||||||||
| Net Income Attributable to Noncontrolling Interests | 33 | 36 | 66 | 105 | ||||||||||||
| Net Income | 3,879 | 4,798 | 7,974 | 11,276 | ||||||||||||
| Interest expense | 3,812 | 3,406 | 7,786 | 6,534 | ||||||||||||
| Loss (gain) on interest rate swap derivatives | 16 | (267 | ) | (93 | ) | (454 | ) | |||||||||
| Income tax expense | 2,711 | 3,241 | 5,689 | 7,573 | ||||||||||||
| Other (income) expense, net | (170 | ) | 907 | (350 | ) | 882 | ||||||||||
| Operating Income | $ | 10,248 | $ | 12,085 | $ | 21,006 | $ | 25,811 | ||||||||
| Lumos Networks Corp. | ||||||||||
| Reconciliation of Operating Income to Adjusted EBITDA | ||||||||||
| (Dollars in thousands) | 2014 | 2013 | ||||||||
| For The Three Months Ended June 30, | ||||||||||
| Operating Income | $ | 10,248 | $ | 12,085 | ||||||
| Depreciation and amortization and accretion of asset retirement obligations | 11,240 | 10,829 | ||||||||
| Sub-total: | 21,488 | 22,914 | ||||||||
| Amortization of actuarial losses | 64 | 309 | ||||||||
| Equity-based compensation | 1,152 | 1,328 | ||||||||
| Restructuring charges | – | – | ||||||||
| Employee separation charges | 19 | – | ||||||||
| Adjusted EBITDA | $ | 22,723 | $ | 24,551 | ||||||
| Adjusted EBITDA Margin | 45.3% | 46.9% | ||||||||
| For The Six Months Ended June 30, | ||||||||||
| Operating Income | $ | 21,006 | $ | 25,811 | ||||||
| Depreciation and amortization and accretion of asset retirement obligations | 21,926 | 20,423 | ||||||||
| Sub-total: | 42,932 | 46,234 | ||||||||
| Amortization of actuarial losses | 128 | 619 | ||||||||
| Equity based compensation | 1,986 | 2,353 | ||||||||
| Restructuring charges | – | 40 | ||||||||
| Employee separation charges | 244 | – | ||||||||
| Gain on settlements, net | – | – | ||||||||
| Adjusted EBITDA | $ | 45,290 | $ | 49,246 | ||||||
| Adjusted EBITDA Margin | 45.2% | 47.0% | ||||||||
| Lumos Networks Corp. | ||||||||||
| Business Outlook 1 (as of August 6, 2014) | ||||||||||
|
(In millions) |
2014 Annual | |||||||||
|
Guidance (1) |
||||||||||
| Operating Revenues | approximately $200 | |||||||||
| Adjusted EBITDA | approximately $90 | |||||||||
| Capital Expenditures | approximately $75 | |||||||||
| Cash, Cash Equivalents and Marketable Securities (at end of period) | $ 27 | to | $ 32 | |||||||
| Reconciliation of Operating Income to Adjusted EBITDA: | ||||||||||
| Operating Income | approximately $38 | |||||||||
| Depreciation and amortization | approximately $47 | |||||||||
| Equity based compensation charges | approximately $4 | |||||||||
| Amortization of actuarial losses | approximately $1 | |||||||||
| Adjusted EBITDA | approximately $90 | |||||||||
|
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. second quarter 2014 earnings release dated August 6, 2014. | |
Will Davis
Vice President of Investor Relations and Chief of Staff
917-519-6994
davisw@lumosnet.com
PR Archives: Latest, By Company, By Date