Achieved full year revenue growth of $2.7
million Delivered full year consumer
strategic revenue(1) growth of 21 percent Grew
Hawaiian Telcom TV subscribers by 27.6 percent in
2015Increased full year business strategic
revenue(1) by 8.7 percent
Hawaiian Telcom Holdco, Inc. (NASDAQ:HCOM) reported financial
results for the fourth quarter and full year 2015. The
highlights are as follows:
- Revenue was $99.2 million for the fourth quarter and $393.4
million for full year 2015:
- Consumer revenue increased 0.6 percent and 2.5 percent
year-over-year for the fourth quarter and full year 2015,
respectively, driven by growth in video revenue of $2.1 million and
$9.9 million, respectively.
- Consumer strategic revenue increased 14.5 percent and 21.0
percent year-over-year for the fourth quarter and full year 2015,
respectively.
- Added nearly 1,900 Hawaiian Telcom TV subscribers during the
fourth quarter, ending 2015 with approximately 35,900 subscribers,
resulting in penetration of 18.9 percent of households
enabled.
- Fiber-enabled 7,000 households in the quarter, increasing
enabled households on Oʻahu to 190,000.
- Business revenue increased 0.7 percent and 0.5 percent
year-over-year for the fourth quarter and full year 2015,
respectively, driven by growth in data services revenue of $1.9
million and $4.5 million, respectively.
- Business strategic revenue increased 8.7 percent year-over-year
for fourth quarter and full year 2015.
- Fourth quarter 2015 Adjusted EBITDA(2) of $29.3 million
declined $1.4 million year-over-year and full year 2015 Adjusted
EBITDA of $119.5 million increased $1.7 million
year-over-year.
- Generated fourth quarter 2015 net loss of $0.4 million, or
$0.04 per diluted shares and full year 2015 net income of $1.1
million, or $0.10 per diluted share.
- Selected to serve as the Southeast Asia – United States
(SEA-US) undersea cable system’s primary network operating center
and network administrator.
“2015
was a successful year for Hawaiian Telcom as we diligently executed
our strategic plan and built momentum in our key growth
areas. Strategic investments in our fiber broadband network
and next-generation services have enabled our ongoing
transformation from a traditional phone company to Hawaiʻi’s
technology leader,” said Scott K. Barber, Hawaiian Telcom’s
president and CEO.
“Hawaiian Telcom TV continues to be the leading driver of growth
in our consumer channel, pulling through Internet and driving a
solid 2.5 percent growth in overall consumer revenues in
2015. Hawaiʻi’s superior entertainment experience can now
reach 190,000 households on Oʻahu, majority of which are
fiber-to-the-home and can receive the market-leading 1 Gbps
Internet speed.
“Our business channel also achieved year-over-year growth in
2015, led by a 10 percent increase in data services revenue, which
includes growth in Dedicated Internet Access, Ethernet and other
IP-based services, Internet, and hosted voice. In 2015, we
fiber GPON-enabled 2,900 targeted business addresses, providing
them access to our ultrafast 1 Gbps fiber Internet service.
GPON sales so far have exceeded our expectation and we believe this
to be a significant growth opportunity for us in the coming
years.
“In the wholesale channel, we now have 455 fiber-to-the-tower
(FTTT) cell sites completed and another 45 sites under contract to
build. Future-proofed with fiber, bandwidth to these cell
sites are easily increased to provide wireless carriers more
capacity, which can drive meaningful increase in revenue over
time.
“In 2016, we will continue to invest in our next-generation
fiber network, expanding the availability of Hawaiian Telcom TV to
more households on Oʻahu, utilizing Connect America Fund II to
extend and enhance broadband service to unserved homes on the
neighbor islands, building fiber to more cell sites and targeting
more business locations with fiber GPON services, along with
upgrading our copper network and systems to enhance service
offerings and improve customer service. We will continue to
focus on driving deeper penetration and increasing our shares of
video, broadband, data center and cloud-based services, as well as
monetizing excess capacity on the SEA-US undersea cable
system.
We have laid a solid foundation for growth and are confident in
our team’s ability to execute our strategic plan with the ultimate
goal of increasing shareholder value,” concluded Barber.
Fourth Quarter 2015 Results
Fourth quarter revenue was $99.2 million, compared to $99.6
million in the fourth quarter of 2014. Revenue growth in the
quarter was mainly driven by growth in consumer video and business
data services. This growth was offset by the impact of a 10.3
percent decline in consumer voice access lines and 4.3 percent
decline in business voice access lines, as well as lower equipment
sales from SystemMetrics. Adjusted EBITDA was $29.3 million,
a decrease of $1.4 million year-over-year, primarily due to
approximately $1.4 million increase in overtime and contractor
costs for the repair work related to the record-breaking rain
experienced in the second half of last year.
For the fourth quarter, the Company generated net loss of $0.4
million, or $0.04 per diluted share, compared to net income of $2.0
million, or $0.19 per diluted share in the fourth quarter of 2014.
The decrease was primarily due to a $1.7 million non-cash
pension expense related to employee retirements in the quarter, and
a $1.4 million anticipated year-over-year increase in depreciation
and amortization as a result of continued investments made to the
Company’s broadband fiber network.
Consumer Revenue
Fourth quarter consumer revenue totaled $36.3 million, up 0.6
percent year-over-year driven by solid revenue growth from Hawaiian
Telcom TV and Internet services. Consumer strategic revenue
increased 14.5 percent year-over-year and now represents 48 percent
of total consumer revenue, up from 42 percent in the same period a
year ago, and 33 percent in the same period two years ago.
Video services revenue was $9.2 million for the quarter, up 30.3
percent from $7.1 million in the same period a year ago, driven by
the addition of approximately 7,800 subscribers in 2015, ending the
year with approximately 35,900 subscribers in service.
Hawaiian Telcom TV average revenue per user grew 0.5 percent
year-over-year. During the quarter, 7,000 additional
households were fiber-enabled, increasing the total number of
households enabled to 190,000 with 60 percent of those households
capable of utilizing fiber-to-the-premise technology.
Hawaiian Telcom TV penetration of households enabled increased to
approximately 18.9 percent at the end of 2015, up from 17.6 percent
at the end of 2014.
Internet services revenue also improved from the same period a
year ago, led by the increase in subscribers and customers’
adoption of higher speed offerings. The Company ended 2015
with approximately 93,000 Internet subscribers. The number of
customers on 21 Mbps to 1 Gbps speeds increased by more than 30
percent over the last year and more than doubled over the last two
years. As of December 31, 2015, approximately 94 percent of
all video subscribers had double- or triple-play bundles with
Internet. Revenue increases from video and Internet continued
to more than offset the year-over-year decline in consumer legacy
voice services.
Business Revenue
Fourth quarter business revenue totaled $44.4 million, up 0.7
percent from fourth quarter 2014, driven by strong growth in data
services, and equipment and managed services. Data services
revenue, which includes Dedicated Internet Access, Ethernet and
other business data services, Internet and BVoIP, increased 16.6
percent year-over-year. Business data and BVoIP lines also
achieved solid performance in 2015, growing 2.5 percent and 29.9
percent, respectively, ending the year with approximately 20,100
lines and 16,700 lines, respectively.
Increasing customer demand for higher bandwidth services and
integrated communications solutions drove fourth quarter business
strategic revenue growth to 8.7 percent year-over-year and now
represents 36 percent of total business revenue, compared to 33
percent in the same period a year ago, and 29 percent in the same
period two years ago. Revenue increases from business
strategic services and equipment and managed services more than
offset the year-over-year decline in business legacy voice
services.
Wholesale Revenue
Fourth quarter wholesale revenue was $14.1 million, compared to
$14.7 million in fourth quarter 2014. The decline was due to
one-time charges in the fourth quarter of 2014, as well as the
effect of selected wireless carriers during the year disconnecting
lower bandwidth legacy circuits on month-to-month rates and moving
to more efficient fiber-based, higher bandwidth Ethernet circuits
on multi-year contracts.
Operating Expenses
Operating expenses, exclusive of depreciation and amortization,
non-cash stock compensation, SystemMetrics earn-out and other
non-recurring charges, increased 1.4 percent to $69.9 million in
the fourth quarter. The increase was primarily due to higher
direct cost of services related to video as well as higher overtime
and contractor costs for the repair work related to the
record-breaking rain experienced in the second half of last
year. These increases were partially offset by lower
electricity rates and usage.
Adjusted EBITDA
Excluding the $1.4 million increase in overtime and contractor
costs for the rain-related repair work, Adjusted EBITDA for fourth
quarter 2015 would have been consistent with the same period a year
ago.
Full Year 2015 Results
Revenue was $393.4 million, up 0.7 percent compared to $390.7
million for the prior year. Adjusted EBITDA was $119.5
million, a 1.5 percent increase compared to $117.8 million in
2014.
Net income for the full year 2015 was $1.1 million, or $0.10 per
diluted share, compared with net income for the full year 2014 of
$8.1 million, or $0.72 per diluted share. The decrease was
primarily due to an $8.1 million non-cash pension expense related
to a large number of employee retirements during the year, and a
$9.9 million anticipated year-over-year increase in depreciation
and amortization as a result of significant investments made to the
Company’s broadband fiber network.
For the full year 2015, capital expenditures totaled $99.0
million with 87 percent directed towards growth and expansion
initiatives, compared to 2014 total capital expenditures of $96.7
million. The increase in total capital expenditures is
primarily due to SEA-US payments and success-based spending to
support the growth of the Company’s next-generation services,
including the large government agency contract serving 250
locations that the Company was awarded in 2015.
At the end of 2015, the Company had $30.3 million in cash and
cash equivalents compared to $39.9 million at the end of
2014. The use of cash is primarily related to higher levels
of expansion-related and success-based capital expenditures, as
well as temporary uses of working capital. Net Debt(3) was
$255.7 million, resulting in a Net Leverage Ratio(4) as of December
31, 2015 of 2.1x.
Conference Call
The Company will host a conference call to discuss its fourth
quarter and full year 2015 results at 9:00 a.m. (Hawaii Time), or
2:00 p.m. (Eastern Time) on Tuesday, March 8, 2016.
To access the call, participants should dial (877) 788-4718
(US/Canada), or (530) 379-4725 (International) ten minutes prior to
the start of the call and provide passcode 44306480.
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 two
hours after the conclusion of the call until 11:59 p.m. (Eastern
Time) March 15, 2016. Access the replay by dialing (855)
859-2056 or (404) 537-3406 and entering passcode
44306480.
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
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: failures in Hawaiian Telcom’s critical back office
systems and IT infrastructure; breach of the our data security
systems; increases in the amount of capital expenditures required
to execute our business plan; the loss of certain outsourcing
agreements, or the failure of any third party to perform under
these agreements; our ability to sell capacity on the new submarine
fiber cable project; adverse changes to applicable laws and
regulations; the failure to adequately adapt to technological
changes in the telecommunications industry, including changes in
consumer technology preferences; adverse economic conditions in
Hawai‘i; the availability of lump sum distributions under our union
pension plan; limitations on the ability to utilize net operating
losses due to an ownership change under Internal Revenue Code
Section 382; the inability to service our indebtedness;
limitations imposed on our business from restrictive covenants in
the credit agreements; and severe weather conditions and natural
disasters. More information on potential risks and
uncertainties is available in recent filings with the Securities
and Exchange Commission, including Hawaiian Telcom’s 2015 Annual
Report on Form 10-K. The information contained in this release is
as of March 8, 2016. 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 (NASDAQ:HCOM), headquartered in Honolulu, is
Hawai‘i’s technology leader, providing integrated communications,
broadband, data center and entertainment solutions for business and
residential customers. With roots in Hawai‘i beginning in 1883, the
Company offers a full range of services including Internet, video,
voice, wireless, data network solutions and security, colocation,
and managed and cloud services supported by the reach and
reliability of its next generation fiber network and a 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.
(1) Consumer strategic
revenue, as defined by the Company, includes video
services and consumer Internet services revenues.
Business strategic revenue, as defined by the
Company, includes data services and data center services
revenues. Data services include Dedicated Internet Access,
Ethernet and other business data services, business Internet, and
BVoIP. Data center services include physical colocation,
virtual colocation, network services, security, cloud services, and
various related telephony services.
(2) 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 Adjusted EBITDA and EBITDA to
comparable GAAP financial measures has been included in the tables
distributed with this release.
(3) 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.
(4) Net Leverage Ratio is defined by the
Company as Net Debt divided by Last Twelve Months Adjusted
EBITDA. A detailed reconciliation of Net Leverage Ratio has
been included in the tables distributed with this release.
(5) In the fourth quarter 2015, we
revised the presentation of volume information and operating
revenue to provide more meaningful information. Prior period
information has been revised to reflect the current
presentation. Total revenue has not changed from that
previously reported but the classification by channel has been
modified and we now present product information by channel as
well.
(6) Levered Free Cash
Flow provides a useful measure of operational performance
and liquidity. The Company defines Levered Free Cash Flow as
Adjusted EBITDA less cash interest expense and capital
expenditures. A detailed reconciliation of Levered Free Cash
Flow 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) |
|
|
|
|
For the Year Ended December 31, |
|
|
|
|
2015 |
|
2014 |
|
2013 |
|
Operating revenues |
|
|
$ |
|
393,413 |
|
|
$ |
|
390,739 |
|
|
$ |
|
391,150 |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues (exclusive of
depreciation and amortization) |
|
|
|
|
162,474 |
|
|
|
|
166,280 |
|
|
|
|
163,749 |
|
|
Selling, general and
administrative |
|
|
|
|
123,798 |
|
|
|
|
115,974 |
|
|
|
|
114,875 |
|
|
Gain on sale of property |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(6,546 |
) |
|
Depreciation and amortization |
|
|
|
|
87,879 |
|
|
|
|
78,014 |
|
|
|
|
77,301 |
|
|
Total operating expenses |
|
|
|
|
374,151 |
|
|
|
|
360,268 |
|
|
|
|
349,379 |
|
|
Operating income |
|
|
|
|
19,262 |
|
|
|
|
30,471 |
|
|
|
|
41,771 |
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
(16,786 |
) |
|
|
|
(16,496 |
) |
|
|
|
(18,875 |
) |
|
Loss on early extinguishment of
debt |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(3,660 |
) |
|
Interest income and other |
|
|
|
|
(19 |
) |
|
|
|
34 |
|
|
|
|
34 |
|
|
Total other expense |
|
|
|
|
(16,805 |
) |
|
|
|
(16,462 |
) |
|
|
|
(22,501 |
) |
|
Income before income
tax provision |
|
|
|
|
2,457 |
|
|
|
|
14,009 |
|
|
|
|
19,270 |
|
|
Income tax
provision |
|
|
|
|
1,357 |
|
|
|
|
5,910 |
|
|
|
|
8,782 |
|
|
Net income |
|
|
$ |
|
1,100 |
|
|
$ |
|
8,099 |
|
|
$ |
|
10,488 |
|
|
Net income per common
share - |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
|
0.10 |
|
|
$ |
|
0.76 |
|
|
$ |
|
1.01 |
|
|
Diluted |
|
|
$ |
|
0.10 |
|
|
$ |
|
0.72 |
|
|
$ |
|
0.95 |
|
|
Weighted
average shares used to compute net income per common share - |
|
|
|
|
|
Basic |
|
|
|
|
10,977,341 |
|
|
|
|
10,591,351 |
|
|
|
|
10,337,339 |
|
|
Diluted |
|
|
|
|
11,386,303 |
|
|
|
|
11,308,051 |
|
|
|
|
11,093,931 |
|
|
Hawaiian Telcom Holdco, Inc. |
Consolidated Balance Sheets |
(Unaudited, dollars in thousands, except per
share amounts) |
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2015 |
|
2014 |
|
Assets |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
|
30,312 |
|
|
$ |
|
39,885 |
|
|
Receivables, net |
|
|
|
32,736 |
|
|
|
|
32,662 |
|
|
Material and supplies |
|
|
|
8,499 |
|
|
|
|
9,337 |
|
|
Prepaid expenses |
|
|
|
4,068 |
|
|
|
|
3,598 |
|
|
Other current assets |
|
|
|
2,102 |
|
|
|
|
3,481 |
|
|
Total current assets |
|
|
|
77,717 |
|
|
|
|
88,963 |
|
|
Property, plant and
equipment, net |
|
|
|
579,107 |
|
|
|
|
565,956 |
|
|
Intangible assets,
net |
|
|
|
34,828 |
|
|
|
|
37,328 |
|
|
Goodwill |
|
|
|
12,104 |
|
|
|
|
12,104 |
|
|
Deferred income taxes,
net |
|
|
|
89,896 |
|
|
|
|
88,466 |
|
|
Other assets |
|
|
|
6,043 |
|
|
|
|
3,907 |
|
|
Total assets |
|
$ |
|
799,695 |
|
|
$ |
|
796,724 |
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
Current portion of long-term
debt |
|
$ |
|
3,000 |
|
|
$ |
|
3,000 |
|
|
Accounts payable |
|
|
|
44,841 |
|
|
|
|
50,499 |
|
|
Accrued expenses |
|
|
|
14,491 |
|
|
|
|
19,399 |
|
|
Advance billings and customer
deposits |
|
|
|
17,551 |
|
|
|
|
14,686 |
|
|
Other current liabilities |
|
|
|
5,932 |
|
|
|
|
6,790 |
|
|
Total current liabilities |
|
|
|
85,815 |
|
|
|
|
94,374 |
|
|
Long-term debt |
|
|
|
283,046 |
|
|
|
|
284,179 |
|
|
Employee benefit
obligations |
|
|
|
104,597 |
|
|
|
|
99,366 |
|
|
Other liabilities |
|
|
|
18,538 |
|
|
|
|
14,271 |
|
|
Total liabilities |
|
|
|
491,996 |
|
|
|
|
492,190 |
|
|
Commitments and
contingencies (Note 14) |
|
|
|
|
|
|
|
Stockholders’
equity |
|
|
|
|
|
|
|
Common stock, par value of $0.01
per share, 245,000,000 shares authorized and 11,466,398
and 10,673,292 shares issued and outstanding at December 31,
2015 and 2014, respectively |
|
|
|
115 |
|
|
|
|
107 |
|
|
Additional paid-in capital |
|
|
|
178,019 |
|
|
|
|
170,521 |
|
|
Accumulated other comprehensive
loss |
|
|
|
(29,388 |
) |
|
|
|
(23,947 |
) |
|
Retained earnings |
|
|
|
158,953 |
|
|
|
|
157,853 |
|
|
Total stockholders’
equity |
|
|
|
307,699 |
|
|
|
|
304,534 |
|
|
Total liabilities and
stockholders’ equity |
|
$ |
|
799,695 |
|
|
$ |
|
796,724 |
|
|
Hawaiian Telcom Holdco, Inc. |
Consolidated Statements of Cash
Flows |
(Unaudited, dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended |
|
|
|
December 31, |
|
|
|
2015 |
|
2014 |
|
2013 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
|
1,100 |
|
|
$ |
|
8,099 |
|
|
$ |
|
10,488 |
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
87,879 |
|
|
|
|
78,014 |
|
|
|
|
77,301 |
|
|
Deferred financing
amortization |
|
|
|
1,922 |
|
|
|
|
1,855 |
|
|
|
|
1,813 |
|
|
Loss on early extinguishment of
debt |
|
|
— |
|
|
— |
|
|
|
3,660 |
|
|
Gain on sale of property |
|
|
— |
|
|
— |
|
|
|
(6,546 |
) |
|
Employee retirement benefits |
|
|
|
(3,634 |
) |
|
|
|
(12,078 |
) |
|
|
|
(13,224 |
) |
|
Provision for uncollectible
receivables |
|
|
|
3,648 |
|
|
|
|
3,590 |
|
|
|
|
3,455 |
|
|
Stock based compensation |
|
|
|
1,584 |
|
|
|
|
4,174 |
|
|
|
|
2,736 |
|
|
Deferred income taxes |
|
|
|
1,958 |
|
|
|
|
6,851 |
|
|
|
|
9,617 |
|
|
Changes in operating assets and
liabilities: |
|
|
|
|
|
|
|
|
|
|
Receivables |
|
|
|
(3,722 |
) |
|
|
|
(1,731 |
) |
|
|
|
(3,409 |
) |
|
Material and supplies |
|
|
|
838 |
|
|
|
|
(386 |
) |
|
|
|
(4,587 |
) |
|
Prepaid expenses and other current
assets |
|
|
|
9 |
|
|
|
|
(504 |
) |
|
|
|
456 |
|
|
Accounts payable and accrued
expenses |
|
|
|
(9,973 |
) |
|
|
|
3,882 |
|
|
|
|
(6,518 |
) |
|
Advance billings and customer
deposits |
|
|
|
5,065 |
|
|
|
|
(1,436 |
) |
|
|
|
138 |
|
|
Other current liabilities |
|
|
|
(759 |
) |
|
|
|
(296 |
) |
|
|
|
812 |
|
|
Other |
|
|
|
1,006 |
|
|
|
|
369 |
|
|
|
|
769 |
|
|
Net cash provided by
operating activities |
|
|
|
86,921 |
|
|
|
|
90,403 |
|
|
|
|
76,961 |
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
|
(99,034 |
) |
|
|
|
(96,706 |
) |
|
|
|
(86,290 |
) |
|
Funds released from restricted cash
account |
|
|
|
400 |
|
|
|
— |
|
|
— |
|
Acquisitions, net of cash
acquired |
|
|
— |
|
|
— |
|
|
|
(11,858 |
) |
|
Proceeds on sale of property |
|
|
— |
|
|
— |
|
|
|
13,118 |
|
|
Proceeds on sale of
investments |
|
|
|
805 |
|
|
|
— |
|
|
— |
|
Net cash used in
investing activities |
|
|
|
(97,829 |
) |
|
|
|
(96,706 |
) |
|
|
|
(85,030 |
) |
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
Repayment of debt including
premium |
|
|
|
(3,000 |
) |
|
|
|
(3,000 |
) |
|
|
|
(303,083 |
) |
|
Proceeds from borrowing |
|
|
— |
|
|
— |
|
|
|
298,500 |
|
|
Proceeds from exercise of
warrant |
|
|
|
6,870 |
|
|
|
— |
|
|
— |
|
Proceeds from installment
financing |
|
|
|
2,780 |
|
|
|
|
4,336 |
|
|
|
— |
|
Repayment of capital lease and
installment financing |
|
|
|
(4,217 |
) |
|
|
|
(3,179 |
) |
|
|
|
(542 |
) |
|
Refinancing costs |
|
|
|
(150 |
) |
|
|
— |
|
|
|
(3,442 |
) |
|
Taxes paid related to net share
settlement of equity awards |
|
|
|
(948 |
) |
|
|
|
(1,520 |
) |
|
|
|
(806 |
) |
|
Net cash provided by
(used in) financing activities |
|
|
|
1,335 |
|
|
|
|
(3,363 |
) |
|
|
|
(9,373 |
) |
|
Net change in cash and
cash equivalents |
|
|
|
(9,573 |
) |
|
|
|
(9,666 |
) |
|
|
|
(17,442 |
) |
|
Cash and cash
equivalents, beginning of period |
|
|
|
39,885 |
|
|
|
|
49,551 |
|
|
|
|
66,993 |
|
|
Cash and cash
equivalents, end of period |
|
$ |
|
30,312 |
|
|
$ |
|
39,885 |
|
|
$ |
|
49,551 |
|
|
Hawaiian Telcom Holdco, Inc. |
Revenue by Category and Channel (5) |
(Unaudited, dollars in thousands) |
|
|
|
For the Year Ended |
|
|
|
|
|
|
|
|
December 31, |
|
Change |
|
|
|
2015 |
|
2014 |
|
Amount |
|
Percentage |
|
Business |
|
|
|
|
|
|
|
|
|
|
|
|
Data services |
|
$ |
49,327 |
|
$ |
44,832 |
|
$ |
|
4,495 |
|
|
|
10.0 |
|
% |
Voice services |
|
|
93,722 |
|
|
98,936 |
|
|
|
(5,214 |
) |
|
|
(5.3 |
) |
% |
Data center services |
|
|
11,094 |
|
|
10,737 |
|
|
|
357 |
|
|
|
3.3 |
|
% |
Equipment and managed services |
|
|
20,546 |
|
|
19,324 |
|
|
|
1,222 |
|
|
|
6.3 |
|
% |
|
|
|
174,689 |
|
|
173,829 |
|
|
|
860 |
|
|
|
0.5 |
|
% |
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
Video services |
|
|
33,666 |
|
|
23,810 |
|
|
|
9,856 |
|
|
|
41.4 |
|
% |
Internet services |
|
|
32,687 |
|
|
31,024 |
|
|
|
1,663 |
|
|
|
5.4 |
|
% |
Voice services |
|
|
79,273 |
|
|
87,263 |
|
|
|
(7,990 |
) |
|
|
(9.2 |
) |
% |
|
|
|
145,626 |
|
|
142,097 |
|
|
|
3,529 |
|
|
|
2.5 |
|
% |
Wholesale carrier
data |
|
|
56,430 |
|
|
57,771 |
|
|
|
(1,341 |
) |
|
|
(2.3 |
) |
% |
Other |
|
|
16,668 |
|
|
17,042 |
|
|
|
(374 |
) |
|
|
(2.2 |
) |
% |
|
|
$ |
393,413 |
|
$ |
390,739 |
|
$ |
|
2,674 |
|
|
|
0.7 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended |
|
|
|
|
|
|
|
|
December 31, |
|
Change |
|
|
|
2014 |
|
2013 |
|
Amount |
|
Percentage |
|
Business |
|
|
|
|
|
|
|
|
|
|
|
|
Data services |
|
$ |
44,832 |
|
$ |
41,833 |
|
$ |
|
2,999 |
|
|
|
7.2 |
|
% |
Voice services |
|
|
98,936 |
|
|
104,290 |
|
|
|
(5,354 |
) |
|
|
(5.1 |
) |
% |
Data center services |
|
|
10,737 |
|
|
2,188 |
|
|
|
8,549 |
|
|
|
390.7 |
|
% |
Equipment and managed services |
|
|
19,324 |
|
|
26,994 |
|
|
|
(7,670 |
) |
|
|
(28.4 |
) |
% |
|
|
|
173,829 |
|
|
175,305 |
|
|
|
(1,476 |
) |
|
|
(0.8 |
) |
% |
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
Video services |
|
|
23,810 |
|
|
13,012 |
|
|
|
10,798 |
|
|
|
83.0 |
|
% |
Internet services |
|
|
31,024 |
|
|
27,888 |
|
|
|
3,136 |
|
|
|
11.2 |
|
% |
Voice services |
|
|
87,263 |
|
|
95,315 |
|
|
|
(8,052 |
) |
|
|
(8.4 |
) |
% |
|
|
|
142,097 |
|
|
136,215 |
|
|
|
5,882 |
|
|
|
4.3 |
|
% |
Wholesale carrier
data |
|
|
57,771 |
|
|
59,529 |
|
|
|
(1,758 |
) |
|
|
(3.0 |
) |
% |
Other |
|
|
17,042 |
|
|
20,101 |
|
|
|
(3,059 |
) |
|
|
(15.2 |
) |
% |
|
|
$ |
390,739 |
|
$ |
391,150 |
|
$ |
|
(411 |
) |
|
|
(0.1 |
) |
% |
Hawaiian Telcom Holdco, Inc. |
Schedule of Adjusted EBITDA
Calculation |
(Unaudited, dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
For the Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Net income (loss) |
|
$ |
|
(435 |
) |
|
$ |
1,976 |
|
$ |
1,100 |
|
$ |
8,099 |
Income tax provision |
|
|
|
153 |
|
|
|
1,755 |
|
|
1,357 |
|
|
5,910 |
Interest expense and other income
and expense, net |
|
|
|
4,169 |
|
|
|
4,088 |
|
|
16,805 |
|
|
16,462 |
Depreciation and amortization |
|
|
|
22,107 |
|
|
|
20,693 |
|
|
87,879 |
|
|
78,014 |
EBITDA |
|
|
|
25,994 |
|
|
|
28,512 |
|
|
107,141 |
|
|
108,485 |
Non-cash stock compensation |
|
|
|
497 |
|
|
|
1,108 |
|
|
1,584 |
|
|
4,174 |
SystemMetrics earn-out |
|
|
|
64 |
|
|
|
272 |
|
|
258 |
|
|
1,087 |
Non-recurring costs |
|
|
|
1,045 |
|
|
|
402 |
|
|
2,464 |
|
|
2,448 |
Pension settlement loss |
|
|
|
1,722 |
|
|
|
— |
|
|
8,088 |
|
|
— |
Severance costs |
|
|
— |
|
|
197 |
|
|
— |
|
|
197 |
Wavecom integration costs |
|
|
— |
|
|
87 |
|
|
— |
|
|
339 |
Storm Iselle costs |
|
|
— |
|
|
134 |
|
|
— |
|
|
1,077 |
Adjusted EBITDA |
|
$ |
|
29,322 |
|
|
$ |
30,712 |
|
$ |
119,535 |
|
$ |
117,807 |
Hawaiian Telcom Holdco, Inc. |
Schedule of Levered Free Cash Flow
(6) |
(Unaudited, dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
For the Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Adjusted EBITDA |
|
$ |
|
29,322 |
|
|
$ |
|
30,712 |
|
|
$ |
|
119,535 |
|
|
$ |
|
117,807 |
|
Cash interest expense |
|
|
|
(4,944 |
) |
|
|
|
(3,634 |
) |
|
|
|
(16,178 |
) |
|
|
|
(14,667 |
) |
Capital expenditures |
|
|
|
(22,302 |
) |
|
|
|
(20,232 |
) |
|
|
|
(99,034 |
) |
|
|
|
(96,706 |
) |
Levered Free Cash
Flow |
|
$ |
|
2,076 |
|
|
$ |
|
6,846 |
|
|
$ |
|
4,323 |
|
|
$ |
|
6,434 |
|
Hawaiian Telcom Holdco, Inc. |
Schedule of Net Leverage Ratio |
(Unaudited, dollars in
thousands) |
|
|
|
|
|
Long-term debt as of
December 31, 2015 |
|
$ |
|
286,046 |
|
|
Less cash on hand |
|
|
|
(30,312 |
) |
|
Total Net Debt as of
December 31, 2015 |
|
$ |
|
255,734 |
|
|
|
|
|
|
|
LTM Adjusted EBITDA as
of December 31, 2015 |
|
$ |
|
119,535 |
|
|
Net Leverage Ratio as
of December 31, 2015 |
|
|
|
2.1 |
|
x |
Hawaiian Telcom Holdco, Inc. |
Volume Information (5) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 vs 2014 |
|
2014 vs 2013 |
|
|
|
December 31, |
|
Change |
|
Change |
|
|
|
2015 |
|
2014 |
|
2013 |
|
Number |
|
Percentage |
|
Number |
|
Percentage |
|
Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data lines* |
|
20,081 |
|
19,589 |
|
19,320 |
|
|
492 |
|
|
|
2.5 |
|
% |
|
269 |
|
|
|
1.4 |
|
% |
BVoIP lines |
|
16,749 |
|
12,898 |
|
9,517 |
|
|
3,851 |
|
|
|
29.9 |
|
% |
|
3,381 |
|
|
|
35.5 |
|
% |
Voice access lines |
|
168,058 |
|
175,636 |
|
183,510 |
|
|
(7,578 |
) |
|
|
(4.3 |
) |
% |
|
(7,874 |
) |
|
|
(4.3 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Video subscribers |
|
35,876 |
|
28,124 |
|
18,393 |
|
|
7,752 |
|
|
|
27.6 |
|
% |
|
9,731 |
|
|
|
52.9 |
|
% |
Internet lines |
|
93,002 |
|
92,875 |
|
91,437 |
|
|
127 |
|
|
|
0.1 |
|
% |
|
1,438 |
|
|
|
1.6 |
|
% |
Voice access lines |
|
151,996 |
|
169,488 |
|
186,415 |
|
|
(17,492 |
) |
|
|
(10.3 |
) |
% |
|
(16,927 |
) |
|
|
(9.1 |
) |
% |
Homes enabled for video |
|
190,000 |
|
160,000 |
|
120,000 |
|
|
30,000 |
|
|
|
18.8 |
|
% |
|
40,000 |
|
|
|
33.3 |
|
% |
* Business data lines represent digital
subscriber lines used to provide Internet services.
Investor Relations Contact:
Ngoc Nguyen
(808) 546-3475
ngoc.nguyen@hawaiiantel.com
Media Contact:
Su Shin
(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