Hawaiian Telcom TV subscriber growth of
nearly 1,900
Expanded reach of Hawaiian Telcom TV to
130,000 households on Oʻahu
Delivered business revenue growth of 4.9
percent
Launched Hawaiʻi's fastest
Internet service
Hawaiian Telcom Holdco, Inc. (Nasdaq:HCOM) reported financial
results for its first quarter ended March 31. The highlights are as
follows:
- Revenue of $97.1 million grew by $1.1 million, or 1.2 percent,
from $96.0 million in the same period in the prior year, resulting
in Adjusted EBITDA(1) of $29.1 million, consistent with the same
period a year ago.
- Generated net income of $2.4 million, or $0.21 per diluted
share for the quarter, up from $1.8 million or $0.17 per diluted
share in the first quarter of 2013.
- Consumer revenue increased 3.4 percent year-over-year to $35.8
million, driven by growth in video and high-speed Internet (HSI)
revenue of $2.6 million and $0.9 million, respectively.
- Added nearly 1,900 Hawaiian Telcom TV subscribers during the
first quarter, ending the quarter with approximately 20,300
subscribers.
- Enabled 10,000 households in the quarter, increasing its total
to 130,000 households enabled.
- Business revenue increased 4.9 percent year-over-year to $42.5
million, driven by growth in business data revenue and revenue from
its SystemMetrics Corporation subsidiary (SystemMetrics).
"Our first quarter performance demonstrates a solid start to the
year, highlighted by continued expansion of our next-generation
fiber network and growth in Hawaiian Telcom TV subscribers," said
Eric K. Yeaman, Hawaiian Telcom's president and CEO. "The reach of
our video footprint expanded to 130,000 households on Oʻahu in the
first quarter with 48% of those households capable of connecting
their homes directly to our ultra-fast fiber-optic technology. This
allows these households to take advantage of Hawaiʻi's fastest
Internet service featuring download speeds of 100Mbps, 300Mbps and
500Mbps, which we launched in the quarter."
"In the business channel, we believe our network and data center
services capabilities align well with the business community's
growing demand for secure communications and computing solutions.
During the quarter, we featured SystemMetrics at our premier annual
business customer event, Hawaiian Telcom University, to further
raise awareness and drive increased market momentum for data center
services in Hawaiʻi.
"Our strategy to grow the business and improve financial
performance and customer service, through prudent investments in
our network and systems, is delivering on our commitment to drive
long-term value for our shareholders," concluded Yeaman.
First Quarter 2014 Results
First quarter revenue was $97.1 million, a 1.2 percent increase
compared with $96.0 million in the first quarter of 2013. Revenue
growth in the quarter, driven by video, HSI, and $2.2 million of
incremental net revenue related to the SystemMetrics acquisition,
more than offset the impact from a $0.9 million decrease in
equipment and managed services revenue, solely related to lower
customer premise equipment sales, and a 5.4 percent decline in
access lines. Adjusted EBITDA was $29.1 million, consistent with
the same period a year ago.
The Company generated net income of $2.4 million, or $0.21 per
diluted share for the quarter, up from $1.8 million or $0.17 per
diluted share in the first quarter of 2013. The increase was
primarily due to a decrease in interest expense driven by the
refinancing of its $300 million term loan in the second quarter of
2013.
Consumer Revenue
First quarter consumer revenue totaled $35.8 million, up 3.4
percent year-over-year primarily driven by revenue growth from the
Company's Hawaiian Telcom TV and HSI services. Revenue growth in
video and HSI services continues to more than offset lower revenue
from legacy services, and combined video and HSI services now
represent 34 percent of consumer revenue, up from 25 percent in the
same period a year ago, and 19 percent in the same period two years
ago.
Video service revenue grew to $4.8 million for the quarter, up
from $2.2 million in the same period a year ago, driven by the
addition of approximately 8,600 subscribers for a total of
approximately 20,300 subscribers at the end of the first
quarter. During the quarter, 10,000 additional households were
enabled, increasing the total number of households enabled to
130,000 with 48% of those households capable of connecting directly
to the Company's ultra-fast fiber-optic technology. Hawaiian
Telcom TV penetration of households enabled was approximately 16
percent at the end of the first quarter.
Consumer HSI revenue also was up from the same period a year
ago, led by a 2.2 percent year-over-year increase in consumer HSI
subscribers to approximately 91,400, which was primarily driven by
HSI pull-through rates from new video subscribers, and standalone
HSI subscriber additions. As of March 31, 2014, approximately
55 percent of all video subscribers had triple-play bundles and
approximately 91 percent had double-, or triple-play
bundles. Increases driven by next-generation consumer video
and HSI services more than offset legacy revenue declines related
to consumer access and long distance line losses of 8.4 percent and
7.3 percent, respectively.
Business Revenue
First quarter business revenue totaled $42.5 million, up 4.9
percent from the same period a year ago, primarily due to $2.2
million of incremental net revenue added as a result of the
SystemMetrics acquisition. Business data revenue increased 7.1
percent year-over-year driven by higher demand for IP-based data
services. These increases were partially offset by a $0.9
million year-over-year decrease in equipment and managed services
revenue, described above, and the year-over-year decline in legacy
business access and long distance revenues.
Wholesale Revenue
First quarter wholesale revenue totaled $15.9 million, down $1.3
million from the same period a year ago. Wholesale carrier
data revenue declined $1.1 million year-over-year to $14.4 million,
mainly due to approximately $0.8 million of one-time backbilling
and circuit termination charges realized in the year-ago
period.
Switched carrier access revenue declined $0.2 million
year-over-year to $1.6 million, equally attributable to the overall
decline in access lines and minutes of use and the impact of
intercarrier compensation reform.
Operating Expenses, Capital Expenditures and
Liquidity
Operating expenses, exclusive of depreciation and amortization,
non-cash stock compensation, SystemMetrics earn-out and other
one-time charges, increased 1.8 percent to $68.0 million, primarily
due to increased direct cost of services related to video and
incremental costs related to the SystemMetrics operations,
partially offset by decreased cost of goods related to lower levels
of equipment sales.
Capital expenditures totaled $23.9 million in the first quarter
2014 compared to $23.3 million in the first quarter 2013, as the
Company continues both the expansion of its next-generation fiber
network and the success-based spending to support the growth of
Hawaiian Telcom TV fiber-to-the-premise (FTTP) subscribers during
the quarter. Overall, total capital expenditures for 2014 are
expected to be approximately $90.0 million.
At the end of first quarter 2014, the Company had $36.7 million
in cash and cash equivalents compared to $49.6 million at the end
of 2013. The reduction is primarily related to temporary
seasonal uses of working capital, which are expected to
substantially reverse in the second half of 2014. Net Debt(2)
was $257.4 million, resulting in a Net Debt to Adjusted EBITDA
ratio as of March 31, 2014 of 2.15x.
Conference Call
The Company will host a conference call to discuss its first
quarter 2014 results at 8:00 a.m. (Hawaiʻi Time), or 2:00 p.m.
(Eastern Time) on Wednesday, May 7, 2014.
To access the call, participants should dial (800) 706-7749
(US/Canada), or (617) 614-3474 (International) ten minutes prior to
the start of the call and enter passcode 58052648.
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 www.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 14, 2014. Access the replay by dialing (888)
286-8010 and entering passcode 18080072. Alternatively, the
replay can be accessed by dialing (617) 801-6888 and entering
passcode 18080072.
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 of the
Company's website 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, or expand
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 2013 Annual
Report on Form 10-K. The information contained in this release is
as of May 7, 2014. It is anticipated that subsequent events and
developments may cause estimates to change, and the Company
undertakes no duty to update forward-looking statements.
About Hawaiian Telcom
Hawaiian Telcom Holdco, Inc., headquartered in Honolulu, is
Hawaiʻi's leading provider of integrated communications, data
center and entertainment solutions for business and residential
customers. With roots in Hawaiʻi beginning in 1883, the Company
offers a full range of services including voice, video, Internet,
data solutions, managed services, data center services including
colocation and virtual private cloud, and other cloud-based
services, and wireless supported by the reach and reliability of
its network and Hawaiʻi'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-cash stock compensation, SystemMetrics earn-out and other
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 gain on sale of
property. 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 and
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, |
|
2014 |
2013 |
|
|
|
Operating revenues |
$ 97,072 |
$ 95,965 |
Operating expenses: |
|
|
Cost of revenues (exclusive of
depreciation and amortization) |
40,948 |
40,284 |
Selling, general and
administrative |
29,266 |
28,379 |
Depreciation and
amortization |
18,720 |
18,717 |
Total operating expenses |
88,934 |
87,380 |
Operating income |
8,138 |
8,585 |
Other income (expense): |
|
|
Interest expense |
(4,188) |
(5,540) |
Interest income and
other |
10 |
15 |
Total other expense |
(4,178) |
(5,525) |
Income before income tax
provision |
3,960 |
3,060 |
Income tax provision |
1,592 |
1,212 |
Net income |
$ 2,368 |
$ 1,848 |
Net income per common share
-- |
|
|
Basic |
$ 0.22 |
$ 0.18 |
Diluted |
$ 0.21 |
$ 0.17 |
Weighted average shares used to compute
net income per common share -- |
|
|
Basic |
10,528,039 |
10,291,897 |
Diluted |
11,271,827 |
10,890,917 |
|
|
Hawaiian Telcom
Holdco, Inc. |
Consolidated
Balance Sheets |
(Unaudited,
dollars in thousands, except per share amounts) |
|
|
|
|
March 31, |
December 31, |
|
2014 |
2013 |
|
|
|
Assets |
|
|
|
|
|
Current assets |
|
|
Cash and cash
equivalents |
$ 36,738 |
$ 49,551 |
Receivables, net |
33,050 |
34,521 |
Material and supplies |
11,737 |
15,939 |
Prepaid expenses |
3,445 |
3,724 |
Deferred income taxes |
8,146 |
8,146 |
Other current assets |
2,321 |
2,851 |
Total current assets |
95,437 |
114,732 |
Property, plant and equipment,
net |
533,528 |
524,375 |
Intangible assets, net |
39,500 |
40,225 |
Goodwill |
12,104 |
12,104 |
Deferred income taxes |
73,705 |
75,274 |
Other assets |
10,841 |
11,305 |
Total assets |
$ 765,115 |
$ 778,015 |
Liabilities and Stockholders'
Equity |
|
|
Current liabilities |
|
|
Current portion of long-term
debt |
$ 3,000 |
$ 3,000 |
Accounts payable |
34,533 |
40,228 |
Accrued expenses |
13,594 |
18,787 |
Advance billings and customer
deposits |
15,912 |
16,122 |
Other current
liabilities |
6,500 |
6,412 |
Total current
liabilities |
73,539 |
84,549 |
Long-term debt |
291,111 |
291,679 |
Employee benefit obligations |
77,136 |
80,321 |
Other liabilities |
8,055 |
8,454 |
Total liabilities |
449,841 |
465,003 |
Commitments and contingencies (Note
12) |
|
|
Stockholders' equity |
|
|
Common stock, par value of $0.01
per share, 245,000,000 shares authorized and 10,584,191 and
10,495,856 shares issued and outstanding at March 31, 2014 and
December 31, 2013, respectively |
106 |
105 |
Additional paid-in
capital |
167,937 |
167,869 |
Accumulated other comprehensive
loss |
(4,891) |
(4,716) |
Retained earnings |
152,122 |
149,754 |
Total stockholders' equity |
315,274 |
313,012 |
Total liabilities and stockholders'
equity |
$ 765,115 |
$ 778,015 |
|
Hawaiian Telcom
Holdco, Inc. |
Consolidated
Statements of Cash Flows |
(Unaudited,
dollars in thousands) |
|
|
|
|
|
|
|
Three Months
Ended |
|
March
31, |
|
2014 |
2013 |
|
|
|
Cash flows from operating
activities: |
|
|
Net income |
$ 2,368 |
$ 1,848 |
Adjustments to
reconcile net income to net cash provided by operating
activities |
|
Depreciation and
amortization |
18,720 |
18,717 |
Employee retirement
benefits |
(3,475) |
(2,722) |
Provision for
uncollectibles |
513 |
553 |
Stock based compensation |
1,074 |
423 |
Deferred income taxes |
1,685 |
1,297 |
Changes in operating assets and
liabilities: |
|
|
Receivables |
957 |
(825) |
Material and supplies |
459 |
(796) |
Prepaid expenses and other current
assets |
810 |
605 |
Accounts payable and accrued
expenses |
(10,010) |
(4,987) |
Advance billings and customer
deposits |
(210) |
448 |
Other current
liabilities |
89 |
2 |
Other |
390 |
303 |
Net cash provided by operating
activities |
13,370 |
14,866 |
Cash flows from investing
activities: |
|
|
Capital expenditures |
(23,939) |
(23,254) |
Net cash used in investing
activities |
(23,939) |
(23,254) |
Cash flows from financing
activities: |
|
|
Repayment of capital lease and
installment liability |
(489) |
(163) |
Repayment of debt including
premium |
(750) |
(2,138) |
Taxes paid related to net share
settlement of equity awards |
(1,005) |
(362) |
Net cash used in financing
activities |
(2,244) |
(2,663) |
Net change in cash and cash
equivalents |
(12,813) |
(11,051) |
Cash and cash equivalents, beginning of
period |
49,551 |
66,993 |
Cash and cash equivalents, end of
period |
$ 36,738 |
$ 55,942 |
Supplemental disclosure of cash flow
information: |
|
|
Interest paid, net of amounts
capitalized |
$ 3,824 |
$ 5,236 |
|
Hawaiian Telcom
Holdco, Inc. |
Revenue by
Category and Channel |
(Unaudited,
dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
|
March
31, |
Change |
|
2014 |
2013 |
Amount |
Percentage |
|
|
|
|
|
Wireline Services |
|
|
|
|
Local voice services |
$ 33,059 |
$ 35,028 |
$ (1,969) |
-5.6% |
Network access services |
|
|
|
|
Business data |
6,624 |
6,186 |
438 |
7.1% |
Wholesale carrier data |
14,386 |
15,464 |
(1,078) |
-7.0% |
Subscriber line access
charge |
9,169 |
9,657 |
(488) |
-5.1% |
Switched carrier access |
1,552 |
1,768 |
(216) |
-12.2% |
|
31,731 |
33,075 |
(1,344) |
-4.1% |
Long distance services |
5,906 |
6,574 |
(668) |
-10.2% |
High-Speed Internet |
10,544 |
9,616 |
928 |
9.7% |
Video |
4,754 |
2,204 |
2,550 |
115.7% |
Equipment and managed
services |
4,489 |
5,379 |
(890) |
-16.5% |
Wireless |
593 |
712 |
(119) |
-16.7% |
Other |
3,591 |
3,377 |
214 |
6.3% |
|
94,667 |
95,965 |
(1,298) |
-1.4% |
Data center colocation |
2,405 |
-- |
2,405 |
NA |
|
$ 97,072 |
$ 95,965 |
$ 1,107 |
1.2% |
|
|
|
|
|
Channel |
|
|
|
|
Business |
$ 42,512 |
$ 40,516 |
$ 1,996 |
4.9% |
Consumer |
35,823 |
34,647 |
1,176 |
3.4% |
Wholesale |
15,937 |
17,232 |
(1,295) |
-7.5% |
Other |
2,800 |
3,570 |
(770) |
-21.6% |
|
$ 97,072 |
$ 95,965 |
$ 1,107 |
1.2% |
|
|
Hawaiian Telcom
Holdco, Inc. |
Schedule of
Adjusted EBITDA Calculation |
(Unaudited,
dollars in thousands) |
|
|
|
|
|
|
|
|
|
Three Months
Ended |
LTM Ended |
|
March
31, |
March 31, |
|
2014 |
2013 |
2014 |
|
|
|
|
Net income |
$ 2,368 |
$ 1,848 |
$ 11,008 |
Income tax provision |
1,592 |
1,212 |
9,162 |
Interest expense and other income
and expense, net |
4,178 |
5,525 |
21,154 |
Depreciation and
amortization |
18,720 |
18,717 |
77,304 |
Gain on sale of property |
-- |
-- |
(6,546) |
EBITDA |
26,858 |
27,302 |
112,082 |
Non-cash stock
compensation |
1,074 |
423 |
3,387 |
SystemMetrics earn-out |
272 |
-- |
272 |
Non-recurring costs |
675 |
651 |
2,577 |
Severance costs |
-- |
408 |
304 |
Wavecom integration
costs |
178 |
386 |
1,135 |
Adjusted EBITDA |
$ 29,057 |
$ 29,170 |
$ 119,757 |
|
Hawaiian Telcom Holdco,
Inc. |
Net Debt to LTM
Adjusted EBITDA Ratio |
(Unaudited, dollars in
thousands) |
|
|
|
|
Long-term debt as of March 31,
2014 |
$ 294,111 |
Less cash on hand |
(36,738) |
Total Net Debt as of March 31,
2014 |
$ 257,373 |
LTM Adjusted EBITDA as of March 31,
2014 |
$ 119,757 |
Total Net Debt to Adjusted
EBITDA |
2.15x |
|
Hawaiian Telcom
Holdco, Inc. |
Volume
Information |
(Unaudited) |
|
|
|
|
|
|
March 31, |
March 31, |
Change |
|
2014 |
2013 |
Number |
Percentage |
|
|
|
|
|
Voice access lines |
|
|
|
|
Residential |
182,375 |
199,044 |
(16,669) |
-8.4% |
Business |
192,202 |
196,970 |
(4,768) |
-2.4% |
Public |
4,073 |
4,350 |
(277) |
-6.4% |
|
378,650 |
400,364 |
(21,714) |
-5.4% |
|
|
|
|
|
High-Speed Internet lines |
|
|
|
|
Residential |
91,429 |
89,464 |
1,965 |
2.2% |
Business |
19,404 |
18,810 |
594 |
3.2% |
Wholesale |
936 |
1,013 |
(77) |
-7.6% |
|
111,769 |
109,287 |
2,482 |
2.3% |
|
|
|
|
|
Long distance lines |
|
|
|
|
Residential |
115,019 |
124,072 |
(9,053) |
-7.3% |
Business |
79,108 |
80,659 |
(1,551) |
-1.9% |
|
194,127 |
204,731 |
(10,604) |
-5.2% |
|
|
|
|
|
Video services |
|
|
|
|
Subscribers |
20,279 |
11,671 |
8,608 |
73.8% |
Homes Enabled |
130,000 |
83,000 |
47,000 |
56.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
December 31, |
Change |
|
2014 |
2013 |
Number |
Percentage |
|
|
|
|
|
Voice access lines |
|
|
|
|
Residential |
182,375 |
186,415 |
(4,040) |
-2.2% |
Business |
192,202 |
193,027 |
(825) |
-0.4% |
Public |
4,073 |
4,155 |
(82) |
-2.0% |
|
378,650 |
383,597 |
(4,947) |
-1.3% |
|
|
|
|
|
High-Speed Internet lines |
|
|
|
|
Residential |
91,429 |
91,437 |
(8) |
0.0% |
Business |
19,404 |
19,320 |
84 |
0.4% |
Wholesale |
936 |
963 |
(27) |
-2.8% |
|
111,769 |
111,720 |
49 |
0.0% |
|
|
|
|
|
Long distance lines |
|
|
|
|
Residential |
115,019 |
117,282 |
(2,263) |
-1.9% |
Business |
79,108 |
79,496 |
(388) |
-0.5% |
|
194,127 |
196,778 |
(2,651) |
-1.3% |
|
|
|
|
|
Video services |
|
|
|
|
Subscribers |
20,279 |
18,393 |
1,886 |
10.3% |
Homes Enabled |
130,000 |
120,000 |
10,000 |
8.3% |
CONTACT: Investor Relations Contact:
Brian Tanner, Hawaiian Telcom
(201) 706-8965
brian.tanner@hawaiiantel.com
Media Contact:
Su Shin, Hawaiian Telcom
(808) 546-2344
su.shin@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