Hawaiian Telcom Holdco, Inc. (Nasdaq:HCOM) reported financial
results for its first quarter ended March 31. The highlights are as
follows:
- Revenue totaled $96.0 million, resulting in Adjusted EBITDA(1)
of $29.2 million, up 2.0 percent from the same period a year ago.
- Generated net income of $1.8 million, or $0.17 per diluted
share for the quarter, its tenth consecutive quarter of
profitability.
- Consumer revenue increased 2.1 percent year-over-year to $34.6
million, driven by growth in video and high-speed Internet ("HSI")
revenue of $1.7 million and $0.6 million, respectively.
- Enabled a record 18,000 households in the quarter increasing
its total to 83,000 households enabled.
- Hawaiian Telcom TV subscribers more than tripled over the past
year to approximately 11,700 resulting in penetration of
approximately 14 percent of households enabled.
- Added approximately 1,700 HSI consumer and business
subscribers, ending the quarter with approximately 109,300
subscribers, up 4.7 percent year-over-year.
"Our execution in the first quarter demonstrates a solid start
to the year, highlighted by significant expansion of our enhanced
broadband network and strong growth in Hawaiian Telcom TV and HSI
subscribers," said Eric K. Yeaman, Hawaiian Telcom's president and
CEO. "The reach of our enhanced broadband network footprint
expanded 28 percent to 83,000 households in the quarter, allowing
more Oahu consumers the opportunity to experience the future of
home entertainment. Hawaiian Telcom TV continues to transform
our consumer channel, driving our third consecutive quarter of
year-over-year growth in consumer revenue.
"In the business channel, we continue to see growth in our
IP-based services, driven by a 30 percent year-over-year increase
in business data revenue, including revenue from Wavecom Solutions
Corporation. The Wavecom integration efforts are on track and
we remain excited by the synergies and value this transaction
creates for us. In our wholesale channel, we expanded our
product portfolio with the launch of additional Ethernet-based
service offerings, providing our wholesale customers with
cost-effective, viable options to existing legacy service
offerings.
"We continue to make progress in executing our strategic plan
and we remain focused on further improving performance in our key
areas of growth to drive long-term shareholder value," concluded
Yeaman.
First Quarter 2013 Results
First quarter revenue was $96.0 million, compared to $97.6
million in the first quarter of 2012. Revenue growth in the
quarter, driven by video, HSI, and revenues related to the Wavecom
acquisition, was more than offset by a 2.1 percent decline in
access lines and a decrease in equipment and managed services
revenue. Adjusted EBITDA was $29.2 million, up 2.0 percent from the
same period a year ago.
The Company generated net income of $1.8 million, or $0.17 per
diluted share for the quarter, up from $0.2 million, or $0.02 per
diluted share in the same period a year ago. The increase was
due primarily to a one-time $5.1 million loss on early
extinguishment of debt in the first quarter of 2012, net of a $2.1
million increase in depreciation and amortization and a $1.2
million deferred tax provision in the first quarter of 2013.
Consumer Revenue
First quarter consumer revenue totaled $34.6 million, up 2.1
percent year-over-year driven primarily by revenue growth from the
Company's Hawaiian Telcom TV service. Revenue growth in video
and HSI services continues to more than offset lower revenue from
legacy services. The first quarter marked the third
consecutive quarter of year-over-year growth in consumer
revenue.
Video service revenue grew to $2.2 million for the quarter, up
from $0.5 million in the same period a year ago, driven by the
addition of over 7,800 subscribers to reach a total of
approximately 11,700 subscribers at the end of the first quarter.
For the quarter, a record 18,000 additional homes were enabled,
increasing the total number of homes enabled to
83,000. Hawaiian Telcom TV penetration of homes enabled was
approximately 14 percent at the end of the first quarter.
Consumer HSI revenue also was up from the same period a year
ago, led by a 4.6 percent year-over-year increase in consumer HSI
subscribers to approximately 89,500, which was driven primarily by
high HSI pull-through rates with new video subscribers, and
standalone HSI subscriber additions. As of March 31, 2013,
approximately 53 percent of all video subscribers had a triple-play
and 87 percent had a double-play. Increases driven by
next-generation consumer video and HSI services were partially
offset by declines in legacy consumer access and long distance
lines of 8.5 percent and 7.2 percent, respectively.
Business Revenue
First quarter business revenue totaled $40.5 million, down $1.6
million from the same period a year ago, due primarily to a $3.1
million year-over-year decrease in equipment and managed services
revenue, mostly related to a $2.7 million sale of equipment to a
large Hawaii-based public school in the first quarter of
2012. Additionally, the year-over-year decline in legacy
business access and long distance revenues contributed to the
decline in business revenue. These decreases were largely
offset by revenues added as a result of the Wavecom
acquisition.
Wholesale Revenue
First quarter wholesale revenue totaled $17.2 million, down 7.2
percent from the same period a year ago. Wholesale carrier
data revenue declined $0.7 million year-over-year to $15.5 million,
mainly due to the elimination of revenue previously recognized that
related to Wavecom. Switched carrier access revenue declined $0.6
million year-over-year to $1.8 million, largely attributable to the
overall declines in access lines and minutes of use, as well as the
impact of intercarrier compensation reform.
Operating Expenses, Capital Expenditures and
Liquidity
Operating expenses, exclusive of depreciation and amortization,
one-time charges and non-cash stock compensation, decreased 3.2
percent to $66.8 million, primarily due to decreased cost of goods
related to lower equipment sales, as well as a decline in costs
related to employee benefits and various maintenance contracts,
partially offset by increased direct cost of goods related to video
and increased wages due to higher headcount primarily related to
the Wavecom acquisition.
Capital expenditures totaled $23.3 million in the first quarter,
up from $19.8 million in the first quarter 2012, due primarily to
investments in broadband network infrastructure and expansion of
video enabled households. Overall, total capital expenditures for
2013 are expected to be approximately $80.0 million.
At the end of first quarter 2013, the Company had $55.9 million
in cash and cash equivalents compared to $67.0 million at the end
of 2012. The reduction is related primarily to temporary uses
of working capital, mandatory debt prepayment, and higher capital
expenditures during the quarter. Net Debt(2) was $237.5
million, resulting in a Net Debt to Adjusted EBITDA ratio as of
March 31, 2013 of 1.94x.
Conference Call
The Company will host a conference call to discuss its first
quarter 2013 results at 8:00 a.m. (Hawaii Time), or 2:00 p.m.
(Eastern Time) on Monday, May 6, 2013.
To access the call, participants should dial (800) 688-0836
(US/Canada), or (617) 614-4072 (International) ten minutes prior to
the start of the call and enter passcode 42075535.
A live webcast of the conference call, including a slide
presentation, will be available from the Investor Relations section
of the Company's website at http://hawaiiantel.com. The
webcast will be archived at the same location.
A telephonic replay of the conference call will be available one
hour after the conclusion of the call until 11:59 p.m. (Eastern
Time) May 13, 2013. Access the replay by dialing (888)
286-8010 and entering passcode 57648418. Alternatively, the
replay can be accessed by dialing (617) 801-6888 and entering
passcode 57648418.
Use of Non-GAAP Financial Measures
This press release contains information about adjusted earnings
before interest, taxes, depreciation and amortization (Adjusted
EBITDA) and Net Debt. These are non-GAAP financial measures used by
Hawaiian Telcom management when evaluating results of operations.
Management believes these measures also provide users of the
financial statements with additional and useful comparisons of
current results of operations with past and future periods.
Non-GAAP financial measures should not be construed as being more
important than comparable GAAP measures. Detailed reconciliations
of Adjusted EBITDA and Net Debt to comparable GAAP financial
measures have been included in the tables distributed with this
release and are available in the Investor Relations section at
www.hawaiiantel.com.
Forward-Looking Statements
In addition to historical information, this release includes
certain statements and predictions that constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. In particular, any statement, projection
or estimate that includes or references the words "believes",
"anticipates", "intends", "expected", or any similar expression
falls within the safe harbor of forward-looking statements
contained in the Reform Act. Actual results or outcomes may
differ materially from those indicated or suggested by any such
forward-looking statement for a variety of reasons, including, but
not limited to, Hawaiian Telcom's ability to maintain its market
position in communications services, including voice, video,
Internet, data, wireless, and advanced communication and network
services; general economic trends affecting the purchase or supply
of communication services; world and national events that may
affect the ability to provide services; changes in the regulatory
environment; any rulings, orders or decrees that may be issued by
any court or arbitrator; restrictions imposed under various credit
facilities and debt instruments; work stoppages caused by labor
disputes; adjustments resulting from year-end audit procedures; and
Hawaiian Telcom's ability to develop and launch new products and
services. More information on potential risks and uncertainties is
available in recent filings with the Securities and Exchange
Commission, including Hawaiian Telcom's 2012 Annual Report on Form
10-K. The information contained in this release is as of May 6,
2013. It is anticipated that subsequent events and developments may
cause estimates to change.
About Hawaiian Telcom
Hawaiian Telcom Holdco, Inc., headquartered in Honolulu, is
Hawaii's leading provider of integrated communications solutions
for business and residential customers. With roots in Hawaii
beginning in 1883, the Company offers a full range of services
including voice, video, Internet, data, wireless, and advanced
communication and network services supported by the reach and
reliability of its network and Hawaii's only 24/7 state-of-the-art
network operations center. With employees statewide sharing a
commitment to innovation and a passion for delivering superior
service, Hawaiian Telcom provides an Always OnSM customer
experience. For more information, visit
www.hawaiiantel.com.
The Hawaiian Telcom Holdco, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=10087
(1) Adjusted EBITDA is EBITDA plus
non-recurring costs not expected to occur regularly in the ordinary
course of business. EBITDA is defined as net income plus
interest expense (net of interest income and other), income taxes,
depreciation and amortization, and non-cash stock compensation. The
Company believes both of these non-GAAP measures, Adjusted EBITDA
and EBITDA, are meaningful performance measures for investors
because they are used by our Board and management to evaluate
performance, enhance comparability between periods and make
operating decisions. Our use of Adjusted EBITDA and EBITDA may not
be comparable to similarly titled measures used by other companies
in the telecommunications industry. A detailed reconciliation
of Adjusted EBITDA to comparable GAAP financial measures has been
included in the tables distributed with this release.
(2) Net Debt provides a useful measure of
liquidity and financial health. The Company defines Net Debt as the
sum of the face amount of short-term and long-term debt and
unamortized premium and/or discount, offset by cash and cash
equivalents. A detailed reconciliation of Net Debt has been
included in the tables distributed with this release.
|
|
Hawaiian Telcom Holdco,
Inc. |
Consolidated Statements
of Income |
(Unaudited, dollars in
thousands, except per share amounts) |
|
|
|
|
Three Months
Ended |
|
March
31, |
|
2013 |
2012 |
|
|
|
Operating revenues |
$ 95,965 |
$ 97,574 |
|
|
|
Operating expenses: |
|
|
Cost of revenues
(exclusive of depreciation and amortization) |
40,284 |
40,799 |
Selling, general and
administrative |
28,379 |
29,026 |
Depreciation and
amortization |
18,717 |
16,588 |
|
|
|
Total operating
expenses |
87,380 |
86,413 |
|
|
|
Operating income |
8,585 |
11,161 |
|
|
|
Other income (expense): |
|
|
Interest
expense |
(5,540) |
(5,986) |
Loss on early
extinguishment of debt |
-- |
(5,112) |
Interest income and
other |
15 |
12 |
|
|
|
Total other
expense |
(5,525) |
(11,086) |
|
|
|
Income before income tax provision
(benefit) |
3,060 |
75 |
|
|
|
Income tax provision
(benefit) |
1,212 |
(132) |
|
|
|
Net income |
$ 1,848 |
$ 207 |
|
|
|
|
|
|
Net income per common share
-- |
|
|
Basic |
$ 0.18 |
$ 0.02 |
Diluted |
$ 0.17 |
$ 0.02 |
|
|
|
Weighted average shares
used to compute net income per common share -- |
|
Basic |
10,291,897 |
10,201,039 |
Diluted |
10,890,917 |
10,434,026 |
|
|
Hawaiian Telcom Holdco,
Inc. |
Consolidated Balance
Sheets |
(Unaudited, dollars in
thousands, except per share amounts) |
|
|
|
|
March 31, |
December 31, |
|
2013 |
2012 |
|
|
|
Assets |
|
|
|
|
|
Current assets |
|
|
Cash and cash
equivalents |
$ 55,942 |
$ 66,993 |
Receivables, net |
34,354 |
34,082 |
Material and
supplies |
12,148 |
11,352 |
Prepaid expenses |
4,658 |
5,161 |
Deferred income taxes,
current |
5,727 |
5,727 |
Other current assets |
1,768 |
2,181 |
Total current assets |
114,597 |
125,496 |
Property, plant and equipment,
net |
508,907 |
507,197 |
Intangible assets, net |
38,001 |
39,075 |
Goodwill |
1,415 |
1,569 |
Deferred income taxes |
101,295 |
102,680 |
Other assets |
9,720 |
9,075 |
|
|
|
Total assets |
$ 773,935 |
$ 785,092 |
|
|
|
Liabilities and Stockholders'
Equity |
|
|
|
|
|
Current liabilities |
|
|
Current portion of long-term
debt |
$ 1,612 |
$ 3,000 |
Accounts payable |
29,804 |
36,351 |
Accrued expenses |
17,731 |
20,537 |
Advance billings and customer
deposits |
15,633 |
15,185 |
Other current
liabilities |
3,963 |
3,961 |
Total current
liabilities |
68,743 |
79,034 |
Long-term debt |
291,865 |
292,410 |
Employee benefit obligations |
129,060 |
132,004 |
Other liabilities |
5,383 |
4,784 |
Total liabilities |
495,051 |
508,232 |
|
|
|
Commitments and contingencies (Note
12) |
|
|
|
|
|
Stockholders' equity |
|
|
Common stock, par value of
$0.01 per share, 245,000,000 shares authorized and 10,291,897
shares issued and outstanding at March 31, 2013 and December 31,
2012 |
103 |
103 |
Additional paid-in
capital |
166,002 |
165,941 |
Accumulated other comprehensive
loss |
(28,335) |
(28,450) |
Retained earnings |
141,114 |
139,266 |
Total stockholders' equity |
278,884 |
276,860 |
|
|
|
Total liabilities and stockholders'
equity |
$ 773,935 |
$ 785,092 |
|
|
Hawaiian Telcom Holdco,
Inc. |
Consolidated Statements
of Cash Flows |
(Unaudited, dollars in
thousands) |
|
|
|
|
Three Months
Ended |
|
March
31, |
|
2013 |
2012 |
|
|
|
Cash flows from operating
activities: |
|
|
Net income |
$ 1,848 |
$ 207 |
Adjustments to reconcile net income to
net cash provided by operating activities |
|
|
Depreciation and
amortization |
18,717 |
16,588 |
Loss on early extinguishment of
debt |
-- |
5,112 |
Employee retirement
benefits |
(2,722) |
(1,796) |
Provision for
uncollectibles |
553 |
889 |
Stock based
compensation |
423 |
340 |
Deferred income
taxes |
1,297 |
-- |
Changes in operating assets and
liabilities: |
|
|
Receivables |
(825) |
(1,487) |
Material and
supplies |
(796) |
(1,421) |
Prepaid expenses and other
current assets |
605 |
100 |
Accounts payable and accrued
expenses |
(4,987) |
(7,064) |
Advance billings and customer
deposits |
448 |
809 |
Other current
liabilities |
2 |
105 |
Other |
303 |
92 |
Net cash provided by operating
activities |
14,866 |
12,474 |
|
|
|
Cash flows from investing
activities: |
|
|
Capital expenditures |
(23,254) |
(19,814) |
Net cash used in investing
activities |
(23,254) |
(19,814) |
|
|
|
Cash flows from financing
activities: |
|
|
Repayment of capital lease and
installment liability |
(163) |
-- |
Repayment of debt including
premium |
(2,138) |
(306,000) |
Proceeds from borrowing |
-- |
295,500 |
Loan refinancing costs |
-- |
(4,130) |
Taxes paid related to net share
settlement of equity awards |
(362) |
(45) |
Net cash used in financing
activities |
(2,663) |
(14,675) |
|
|
|
Net change in cash and cash
equivalents |
(11,051) |
(22,015) |
Cash and cash equivalents, beginning of
period |
66,993 |
82,063 |
|
|
|
Cash and cash equivalents, end of
period |
$ 55,942 |
$ 60,048 |
|
|
|
Supplemental disclosure of cash flow
information: |
|
|
Interest paid, net of amounts
capitalized |
$ 5,236 |
$ 10,556 |
|
|
Hawaiian Telcom Holdco,
Inc. |
Revenue by Category and
Channel |
(Unaudited, dollars in
thousands) |
|
|
|
|
|
|
Three Months
Ended |
|
|
|
March
31, |
Change |
|
2013 |
2012 |
Amount |
Percentage |
|
|
|
|
|
Wireline Services |
|
|
|
|
Local voice services |
$ 35,028 |
$ 35,697 |
$ (669) |
-1.9% |
Network access
services |
|
|
|
|
Business data |
6,186 |
4,761 |
1,425 |
29.9% |
Wholesale carrier
data |
15,464 |
16,177 |
(713) |
-4.4% |
Subscriber line access
charge |
9,657 |
9,836 |
(179) |
-1.8% |
Switched carrier
access |
1,768 |
2,384 |
(616) |
-25.8% |
|
33,075 |
33,158 |
(83) |
-0.3% |
Long distance
services |
6,574 |
7,448 |
(874) |
-11.7% |
High-Speed Internet |
9,616 |
8,976 |
640 |
7.1% |
Video |
2,204 |
497 |
1,707 |
343.5% |
Equipment and managed
services |
5,379 |
8,509 |
(3,130) |
-36.8% |
Other |
3,377 |
2,380 |
997 |
41.9% |
|
95,253 |
96,665 |
(1,412) |
-1.5% |
Wireless |
712 |
909 |
(197) |
-21.7% |
|
$ 95,965 |
$ 97,574 |
$ (1,609) |
-1.6% |
|
|
|
|
|
Channel |
|
|
|
|
Business |
$ 40,516 |
$ 42,097 |
$ (1,581) |
-3.8% |
Consumer |
34,647 |
33,942 |
705 |
2.1% |
Wholesale |
17,232 |
18,561 |
(1,329) |
-7.2% |
Other |
3,570 |
2,974 |
596 |
20.0% |
|
$ 95,965 |
$ 97,574 |
$ (1,609) |
-1.6% |
|
|
Hawaiian Telcom Holdco,
Inc. |
Schedule of Adjusted
EBITDA Calculation |
(Unaudited, dollars in
thousands) |
|
|
|
|
Three Months
Ended |
|
March
31, |
|
2013 |
2012 |
|
|
|
Net income |
$ 1,848 |
$ 207 |
Income tax provision
(benefit) |
1,212 |
(132) |
Interest expense and
other income and expense, net |
5,525 |
11,086 |
Depreciation and
amortization |
18,717 |
16,588 |
Non-cash stock
compensation |
423 |
340 |
EBITDA |
27,725 |
28,089 |
Non-recurring
costs |
651 |
503 |
Severance
costs |
408 |
-- |
Wavecom integration
costs |
386 |
-- |
|
|
|
Adjusted EBITDA |
$ 29,170 |
$ 28,592 |
|
|
Hawaiian Telcom Holdco,
Inc. |
Net Debt to LTM
Adjusted EBITDA Ratio |
(Unaudited, dollars in
thousands) |
|
|
Long-term debt as of March 31,
2013 |
$ 293,477 |
Less cash on
hand |
(55,942) |
Total Net Debt as of March 31,
2013 |
$ 237,535 |
|
|
LTM Adjusted EBITDA as of March 31,
2013 |
$ 122,531 |
|
|
Total Net Debt to Adjusted
EBITDA |
1.94x |
|
|
Hawaiian Telcom Holdco,
Inc. |
Volume
Information |
(Unaudited) |
|
|
|
|
|
|
March 31, |
March 31, |
Change |
|
2013 |
2012 |
Number |
Percentage |
|
|
|
|
|
Voice access lines |
|
|
|
|
Residential |
199,044 |
217,470 |
(18,426) |
-8.5% |
Business * |
196,970 |
186,854 |
10,116 |
5.4% |
Public |
4,350 |
4,559 |
(209) |
-4.6% |
|
400,364 |
408,883 |
(8,519) |
-2.1% |
|
|
|
|
|
High-Speed Internet lines |
|
|
|
|
Residential |
89,464 |
85,518 |
3,946 |
4.6% |
Business |
18,810 |
17,714 |
1,096 |
6.2% |
Wholesale |
1,013 |
1,126 |
(113) |
-10.0% |
|
109,287 |
104,358 |
4,929 |
4.7% |
|
|
|
|
|
Long distance lines |
|
|
|
|
Residential |
124,072 |
133,648 |
(9,576) |
-7.2% |
Business * |
80,659 |
76,197 |
4,462 |
5.9% |
|
204,731 |
209,845 |
(5,114) |
-2.4% |
|
|
|
|
|
Video services |
|
|
|
|
Subscribers |
11,671 |
3,866 |
7,805 |
201.9% |
Homes Enabled |
83,000 |
41,200 |
41,800 |
101.5% |
|
|
|
|
|
|
|
|
|
|
|
March 31, |
December 31, |
Change |
|
2013 |
2012 |
Number |
Percentage |
|
|
|
|
|
Voice access lines |
|
|
|
|
Residential |
199,044 |
203,330 |
(4,286) |
-2.1% |
Business * |
196,970 |
185,142 |
11,828 |
6.4% |
Public |
4,350 |
4,405 |
(55) |
-1.2% |
|
400,364 |
392,877 |
7,487 |
1.9% |
|
|
|
|
|
High-Speed Internet lines |
|
|
|
|
Residential |
89,464 |
88,016 |
1,448 |
1.6% |
Business |
18,810 |
18,575 |
235 |
1.3% |
Wholesale |
1,013 |
1,020 |
(7) |
-0.7% |
|
109,287 |
107,611 |
1,676 |
1.6% |
|
|
|
|
|
Long distance lines |
|
|
|
|
Residential |
124,072 |
126,551 |
(2,479) |
-2.0% |
Business * |
80,659 |
74,781 |
5,878 |
7.9% |
|
204,731 |
201,332 |
3,399 |
1.7% |
|
|
|
|
|
Video services |
|
|
|
|
Subscribers |
11,671 |
9,829 |
1,842 |
18.7% |
Homes Enabled |
83,000 |
65,000 |
18,000 |
27.7% |
* Business voice access lines and business long distance
lines included approximately 11,800 and 6,200 lines, respectively,
as of March 31, 2013 related to the acquisition of Wavecom.
CONTACT: Investor Relations Contact:
Brian Tanner, Hawaiian Telcom
(808) 546-3442
brian.tanner@hawaiiantel.com
Media Contact:
Scott Simon, Hawaiian Telcom
(808) 546-5466
scott.simon@hawaiiantel.com
Hawaiian Telcom Holdco, Inc. (delisted) (NASDAQ:HCOM)
過去 株価チャート
から 6 2024 まで 7 2024
Hawaiian Telcom Holdco, Inc. (delisted) (NASDAQ:HCOM)
過去 株価チャート
から 7 2023 まで 7 2024