Delivered business strategic revenue(1)
growth of 12.3 percentAchieved data center and
cloud services revenue growth of 10.8
percentIncreased consumer strategic revenue(1) by
3.4 percentGrew Hawaiian Telcom TV into a $42
million annualized revenue stream
Hawaiian Telcom Holdco, Inc. (NASDAQ:HCOM) reported financial
results for its third quarter ended September 30. The
highlights are as follows:
- Revenue totaled $97.8 million, resulting in Adjusted EBITDA(2)
of $28.6 million.
- Business strategic revenue increased 12.3 percent
year-over-year to $17.0 million, driven by a solid 12.6 percent
growth in data services revenue and 10.8 percent growth in data
center services revenue.
- Consumer strategic revenue increased 3.4 percent year-over-year
to $17.5 million, driven by a strong 20.8 percent growth in video
services revenue.
- Enabled 3,000 households with fiber in the third quarter,
increasing enabled households on O‘ahu to 201,000.
- Ended the third quarter with approximately 39,800 Hawaiian
Telcom TV subscribers, increasing penetration of households enabled
to 19.8 percent.
- Generated net loss of $0.3 million, or $0.02 per diluted share
for the quarter, partially because of a $0.5 million non-cash
pension expense related to employee retirements in the quarter, and
a $0.5 million anticipated year-over-year increase in depreciation
and amortization as a result of the continued expansion of the
Company’s next-generation broadband fiber network.
“I am proud of what Hawaiian Telcom and its
employees have been able to achieve over the last six years as a
public company,” said Scott Barber, Hawaiian Telcom’s president and
CEO. “Six years ago we anticipated the coming industry-wide
decline in traditional legacy revenues and made the strategic
decision to invest in upgrading our network with fiber that would
enable us to provide advanced high-bandwidth services to Hawai‘i’s
consumers and businesses. As a result of executing this
decision, strategic revenues now represent almost half of our
consumer revenue and 40 percent of our business revenue. We
have successfully transformed the Company into Hawai‘i’s Technology
Leader, a strategic partner for businesses and a next-generation
communications and entertainment provider for Hawai‘i
consumers.
“Today we can take pride in the 100 percent increase in our
fiber route miles compared to six years ago, resulting in more than
200,000 homes and 5,000 business locations with access to the
network that provides Hawai‘i’s fastest Internet. Businesses
of all sizes consider us a strategic partner, consistently turning
to us for a wide array of services from traditional, such as phone
and CPE, to next-generation IP, data and cloud services. This
constructive relationship has resulted in steady business data
services revenue growth year-over-year for eleven consecutive
quarters. We also recently celebrated Hawaiian Telcom TV’s
five year anniversary; our IPTV product now represents a $42
million annualized revenue stream and growing, with nearly 40,000
subscribers. With these investments and our outstanding
employees providing exceptional customer service, I’m confident
that we will continue to generate organic growth, sustainable and
growing cash flow, and increase long-term value for our
shareholders.”
Third Quarter 2016 Results
Third quarter revenue was $97.8 million, compared to $100.9
million in the third quarter of 2015. The decline was partly
because of an additional $1.1 million received in 2015 for
government subsidies from the FCC’s Connect America Fund – Phase II
program to expand broadband availability. Revenue growth in
the quarter, primarily driven by strong growth in consumer video,
business data (broadband) services and data center services was
offset by the impact of voice access line losses and lower
wholesale revenue. Third quarter Adjusted EBITDA was $28.6
million, a decrease of $2.7 million year-over-year.
Net loss for the third quarter was $0.3 million, or $0.02 per
diluted share, partially because of a $0.5 million non-cash pension
expense related to employee retirements in the quarter, and a $0.5
million anticipated year-over-year increase in depreciation and
amortization as a result of the continued expansion of the
Company’s next-generation broadband fiber network.
Business Revenue
Third quarter business revenue totaled $44.8 million, consistent
with the third quarter of 2015. Data services revenue
increased a solid 12.6 percent year-over-year as customer demand
for high-bandwidth IP-based data services such as Ethernet,
Dedicated Internet Access, IP-VPN and BVoIP continued to rise.
One of the measures of this trend is the growth in BVoIP
lines, which grew 14.3 percent year-over-year to approximately
18,600 lines, offsetting more than a third of total legacy voice
access line decline.
Revenue from data center services grew 10.8 percent
year-over-year for the third quarter, driven by increased sales of
Ethernet, security, and managed services.
Third quarter business strategic revenue increased 12.3 percent
year-over-year and now represents 38 percent of total reported
business revenue, compared to 34 percent in the same period a year
ago, and 32 percent in the same period two years ago. Revenue
increases from business strategic services and equipment and
managed services offset the year-over-year decline in business
legacy voice services.
Consumer Revenue
Third quarter consumer revenue totaled $35.7 million, compared
to $36.6 million in the third quarter of 2015. Revenue growth
in the quarter from Hawaiian Telcom TV and high-bandwidth Internet
services was more than offset by the year-over-year revenue decline
in consumer legacy voice and low-bandwidth Internet services.
Third quarter consumer strategic revenue increased 3.4 percent
year-over-year and now represents 49 percent of total consumer
revenue, up from 46 percent in the same period a year ago, and 40
percent in the same period two years ago.
Hawaiian Telcom TV continues to deliver solid results.
Video services revenue grew to $10.5 million for the quarter and
has become a $42 million and growing annualized revenue
stream. The 20.8 percent year-over-year video revenue growth
was driven by the addition of approximately 5,800 subscribers in
the last twelve months, ending the third quarter with approximately
39,800 subscribers in service. During the quarter, 3,000
additional households were fiber-enabled, increasing the total
number of households enabled to 201,000 with 62 percent of those
households capable of utilizing fiber-to-the-premise
technology. Hawaiian Telcom TV penetration of households
enabled increased to 19.8 percent at the end of the third quarter,
up from 18.6 percent at the end of the third quarter of 2015.
Internet services revenue declined $1.2 million from the same
period a year ago primarily due to promotional pricing. The
Company ended the third quarter with approximately 91,000 Internet
subscribers and customer adoption of higher speed offerings has
continued to increase. The number of customers on 21 Mbps to
1 Gbps speeds increased by 21 percent over the last year and 66
percent over the last two years. The number of triple-play
customers grew 8.8 percent year-over-year and Internet attachment
rate continues to be high. As of September 30, 2016,
approximately 94 percent of all video subscribers had double- or
triple-play bundles with Internet.
Wholesale Revenue
Third quarter wholesale revenue totaled $13.4 million, compared
to $14.2 million in the third quarter 2015. The decline was
because of wholesale customers disconnecting lower bandwidth legacy
circuits on month-to-month rates and moving to more efficient and
cost effective fiber-based, higher bandwidth Ethernet circuits on
multi-year contracts, as well as reduction in rates for certain
wireless carriers in exchange for extended terms.
Operating Expenses
Operating expenses, exclusive of non-cash and special items
which we exclude from our Adjusted EBITDA calculation, decreased
$0.4 million year-over-year to $69.3 million in the third
quarter. The decrease was primarily due to reduced costs of
utility pole maintenance, lower labor overtime, and lower
electricity costs from reduced utility rates and energy savings
initiatives. These decreases were partially offset by higher
direct cost of services related to video from rising content costs
and increasing number of subscribers.
Capital Expenditures and Liquidity
Capital expenditures totaled $78.3 million in the nine months
ended September 30, 2016, compared with $76.7 million for the same
period in the prior year. Approximately 85 percent of total
capital expenditures for the first nine months of 2016 was directed
towards growth and expansion initiatives, which include payments on
the trans-Pacific cable system, spending on enabling homes and
fiber-to-the-business, Connect America Fund build out, as well as
success-based spending to support the growth of the Company’s
next-generation services. Overall, total capital expenditures
for 2016 are expected to be in the high-$90 million range.
At the end of third quarter 2016, the Company had $20.7 million
in cash and cash equivalents compared to $30.3 million at the end
of 2015. The use of cash is primarily related to higher
levels of expansion-related and success-based capital
expenditures. Net Debt(3) was $264.3 million, resulting in a
Net Leverage Ratio(4) as of September 30, 2016 of 2.3x.
Conference Call
The Company will host a conference call to discuss its third
quarter 2016 results at 8:00 a.m. (Hawaii Time), or 2:00 p.m.
(Eastern Time) on Thursday, November 3, 2016.
To access the call, participants should dial (877) 456-0428
(US/Canada), or (615) 247-0082 (International) ten minutes prior to
the start of the call and provide passcode 95494078.
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 5:00 p.m. (Eastern
Time) November 10, 2016. Access the replay by dialing (855)
859-2056 or (404) 537-3406 and entering passcode 95494078.
Use of Non-GAAP Financial Measures
This press release contains information about adjusted earnings
before interest, taxes, depreciation and amortization (Adjusted
EBITDA), Net Debt, Net Leverage Ratio and Levered Free Cash Flow.
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, Net Debt, Net Leverage Ratio and Levered Free Cash Flow 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 November 3, 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 a non-GAAP measure
defined by the Company as Net Income plus interest expense (net of
interest income and other), income taxes, depreciation and
amortization, gain on sale of property, non-cash stock and other
performance-based compensation, SystemMetrics earn-out, pension
settlement loss and other special items. The Company believes
this non-GAAP measure is a meaningful performance measure for
investors because it is used by our Board and management to
evaluate performance, enhance comparability between periods and
make operating decisions. Our use of Adjusted 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 table 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 (Loss) |
|
(Unaudited,
dollars in thousands, except per share amounts) |
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
September 30, |
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
Operating revenues |
|
$ |
|
97,848 |
|
|
$ |
|
100,905 |
|
|
$ |
|
296,183 |
|
|
$ |
|
294,208 |
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues (exclusive of
depreciation and amortization) |
|
|
|
41,903 |
|
|
|
|
41,013 |
|
|
|
|
124,987 |
|
|
|
|
120,415 |
|
|
Selling, general and
administrative |
|
|
|
29,206 |
|
|
|
|
33,146 |
|
|
|
|
88,625 |
|
|
|
|
92,645 |
|
|
Depreciation and amortization |
|
|
|
23,036 |
|
|
|
|
22,551 |
|
|
|
|
67,479 |
|
|
|
|
65,772 |
|
|
Total operating expenses |
|
|
|
94,145 |
|
|
|
|
96,710 |
|
|
|
|
281,091 |
|
|
|
|
278,832 |
|
|
Operating income |
|
|
|
3,703 |
|
|
|
|
4,195 |
|
|
|
|
15,092 |
|
|
|
|
15,376 |
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
(4,156 |
) |
|
|
|
(4,148 |
) |
|
|
|
(12,879 |
) |
|
|
|
(12,651 |
) |
|
Interest income and other |
|
|
|
— |
|
|
|
|
4 |
|
|
|
|
— |
|
|
|
|
15 |
|
|
Total other expense |
|
|
|
(4,156 |
) |
|
|
|
(4,144 |
) |
|
|
|
(12,879 |
) |
|
|
|
(12,636 |
) |
|
Income (loss) before
income tax provision (benefit) |
|
|
|
(453 |
) |
|
|
|
51 |
|
|
|
|
2,213 |
|
|
|
|
2,740 |
|
|
Income tax provision
(benefit) |
|
|
|
(174 |
) |
|
|
|
(54 |
) |
|
|
|
892 |
|
|
|
|
1,204 |
|
|
Net income (loss) |
|
$ |
|
(279 |
) |
|
$ |
|
105 |
|
|
$ |
|
1,321 |
|
|
$ |
|
1,536 |
|
|
Net income (loss) per
common share - |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
|
(0.02 |
) |
|
$ |
|
0.01 |
|
|
$ |
|
0.11 |
|
|
$ |
|
0.14 |
|
|
Diluted |
|
$ |
|
(0.02 |
) |
|
$ |
|
0.01 |
|
|
$ |
|
0.11 |
|
|
$ |
|
0.14 |
|
|
Weighted average shares
used to compute net income (loss) per common share - |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
11,512,280 |
|
|
|
|
11,040,299 |
|
|
|
|
11,499,947 |
|
|
|
|
10,844,478 |
|
|
Diluted |
|
|
|
11,512,280 |
|
|
|
|
11,318,641 |
|
|
|
|
11,539,828 |
|
|
|
|
11,275,655 |
|
|
|
|
Hawaiian Telcom
Holdco, Inc. |
|
Consolidated
Balance Sheets |
|
(Unaudited,
dollars in thousands, except per share amounts) |
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
2016 |
|
2015 |
|
Assets |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
|
20,650 |
|
|
$ |
|
30,312 |
|
|
Receivables, net |
|
|
|
28,488 |
|
|
|
|
32,736 |
|
|
Material and supplies |
|
|
|
8,217 |
|
|
|
|
8,499 |
|
|
Prepaid expenses |
|
|
|
5,343 |
|
|
|
|
4,068 |
|
|
Other current assets |
|
|
|
2,666 |
|
|
|
|
2,102 |
|
|
Total current assets |
|
|
|
65,364 |
|
|
|
|
77,717 |
|
|
Property, plant and
equipment, net |
|
|
|
593,370 |
|
|
|
|
579,107 |
|
|
Intangible assets,
net |
|
|
|
33,254 |
|
|
|
|
34,828 |
|
|
Goodwill |
|
|
|
12,104 |
|
|
|
|
12,104 |
|
|
Deferred income taxes,
net |
|
|
|
91,610 |
|
|
|
|
89,896 |
|
|
Other assets |
|
|
|
5,985 |
|
|
|
|
6,043 |
|
|
Total assets |
|
$ |
|
801,687 |
|
|
$ |
|
799,695 |
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
Current portion of long-term
debt |
|
$ |
|
3,000 |
|
|
$ |
|
3,000 |
|
|
Accounts payable |
|
|
|
50,844 |
|
|
|
|
44,841 |
|
|
Accrued expenses |
|
|
|
15,656 |
|
|
|
|
14,491 |
|
|
Advance billings and customer
deposits |
|
|
|
15,324 |
|
|
|
|
17,551 |
|
|
Other current liabilities |
|
|
|
6,070 |
|
|
|
|
5,932 |
|
|
Total current liabilities |
|
|
|
90,894 |
|
|
|
|
85,815 |
|
|
Long-term debt |
|
|
|
281,927 |
|
|
|
|
283,046 |
|
|
Employee benefit
obligations |
|
|
|
106,346 |
|
|
|
|
104,597 |
|
|
Other liabilities |
|
|
|
17,185 |
|
|
|
|
18,538 |
|
|
Total liabilities |
|
|
|
496,352 |
|
|
|
|
491,996 |
|
|
Commitments and
contingencies (Note 11) |
|
|
|
|
|
|
|
Stockholders’
equity |
|
|
|
|
|
|
|
Common stock, par value of $0.01
per share, 245,000,000 shares authorized and 11,512,502
and 11,466,398 shares issued and outstanding at September 30,
2016 and December 31, 2015, respectively |
|
|
|
115 |
|
|
|
|
115 |
|
|
Additional paid-in capital |
|
|
|
179,387 |
|
|
|
|
178,019 |
|
|
Accumulated other comprehensive
loss |
|
|
|
(34,441 |
) |
|
|
|
(29,388 |
) |
|
Retained earnings |
|
|
|
160,274 |
|
|
|
|
158,953 |
|
|
Total stockholders’
equity |
|
|
|
305,335 |
|
|
|
|
307,699 |
|
|
Total liabilities and
stockholders’ equity |
|
$ |
|
801,687 |
|
|
$ |
|
799,695 |
|
|
|
|
Hawaiian Telcom
Holdco, Inc. |
|
Consolidated
Statements of Cash Flows |
|
(Unaudited,
dollars in thousands) |
|
|
|
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
|
2016 |
|
2015 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
Net income |
|
$ |
|
1,321 |
|
|
$ |
|
1,536 |
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
67,479 |
|
|
|
|
65,772 |
|
|
Deferred financing
amortization |
|
|
|
1,533 |
|
|
|
|
1,436 |
|
|
Employee retirement benefits |
|
|
|
(6,430 |
) |
|
|
|
(3,315 |
) |
|
Provision for uncollectible
receivables |
|
|
|
2,908 |
|
|
|
|
2,640 |
|
|
Stock based compensation |
|
|
|
1,722 |
|
|
|
|
1,087 |
|
|
Deferred income taxes |
|
|
|
1,412 |
|
|
|
|
1,633 |
|
|
Changes in operating assets and
liabilities: |
|
|
|
|
|
|
|
Receivables |
|
|
|
1,340 |
|
|
|
|
(3,558 |
) |
|
Material and supplies |
|
|
|
282 |
|
|
|
|
211 |
|
|
Prepaid expenses and other current
assets |
|
|
|
(1,839 |
) |
|
|
|
(2,538 |
) |
|
Accounts payable and accrued
expenses |
|
|
|
6,067 |
|
|
|
|
(3,222 |
) |
|
Advance billings and customer
deposits |
|
|
|
(2,227 |
) |
|
|
|
4,054 |
|
|
Other current liabilities |
|
|
|
(600 |
) |
|
|
|
(693 |
) |
|
Other |
|
|
|
(22 |
) |
|
|
|
552 |
|
|
Net cash provided by
operating activities |
|
|
|
72,946 |
|
|
|
|
65,595 |
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Capital expenditures |
|
|
|
(78,334 |
) |
|
|
|
(76,732 |
) |
|
Funds released from restricted cash
account |
|
|
|
— |
|
|
|
|
400 |
|
|
Net cash used in
investing activities |
|
|
|
(78,334 |
) |
|
|
|
(76,332 |
) |
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
Proceeds from exercise of
warrant |
|
|
|
— |
|
|
|
|
3,342 |
|
|
Proceeds from installment
financing |
|
|
|
1,698 |
|
|
|
|
2,779 |
|
|
Repayment of capital lease and
installment financing |
|
|
|
(2,680 |
) |
|
|
|
(3,083 |
) |
|
Repayment of debt |
|
|
|
(2,250 |
) |
|
|
|
(2,250 |
) |
|
Refinancing and loan amendment
costs |
|
|
|
(688 |
) |
|
|
|
(150 |
) |
|
Taxes paid related to net share
settlement of equity awards |
|
|
|
(354 |
) |
|
|
|
(941 |
) |
|
Net cash used in
financing activities |
|
|
|
(4,274 |
) |
|
|
|
(303 |
) |
|
Net change in cash and
cash equivalents |
|
|
|
(9,662 |
) |
|
|
|
(11,040 |
) |
|
Cash and cash
equivalents, beginning of period |
|
|
|
30,312 |
|
|
|
|
39,885 |
|
|
Cash and cash
equivalents, end of period |
|
$ |
|
20,650 |
|
|
$ |
|
28,845 |
|
|
Supplemental disclosure
of cash flow information: |
|
|
|
|
|
|
|
Interest paid, net of amounts
capitalized |
|
$ |
|
9,938 |
|
|
$ |
|
11,234 |
|
|
|
|
Hawaiian Telcom
Holdco, Inc. |
|
Revenue by
Category and Channel (5) |
|
(Unaudited,
dollars in thousands) |
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
September 30, |
|
Change |
|
|
|
2016 |
|
2015 |
|
Amount |
|
Percentage |
|
Business |
|
|
|
|
|
|
|
|
|
|
|
|
Data services |
|
$ |
13,949 |
|
$ |
12,387 |
|
$ |
|
1,562 |
|
|
|
12.6 |
% |
|
Voice services |
|
|
21,626 |
|
|
23,657 |
|
|
|
(2,031 |
) |
|
|
(8.6 |
)% |
|
Data center services |
|
|
3,061 |
|
|
2,762 |
|
|
|
299 |
|
|
|
10.8 |
% |
|
Equipment and managed services |
|
|
6,161 |
|
|
5,993 |
|
|
|
168 |
|
|
|
2.8 |
% |
|
|
|
|
44,797 |
|
|
44,799 |
|
|
|
(2 |
) |
|
|
(0.0 |
)% |
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
Video services |
|
|
10,483 |
|
|
8,677 |
|
|
|
1,806 |
|
|
|
20.8 |
% |
|
Internet services |
|
|
7,053 |
|
|
8,283 |
|
|
|
(1,230 |
) |
|
|
(14.8 |
)% |
|
Voice services |
|
|
18,144 |
|
|
19,683 |
|
|
|
(1,539 |
) |
|
|
(7.8 |
)% |
|
|
|
|
35,680 |
|
|
36,643 |
|
|
|
(963 |
) |
|
|
(2.6 |
)% |
|
Wholesale carrier
data |
|
|
13,440 |
|
|
14,246 |
|
|
|
(806 |
) |
|
|
(5.7 |
)% |
|
Other |
|
|
3,931 |
|
|
5,217 |
|
|
|
(1,286 |
) |
|
|
(24.7 |
)% |
|
|
|
$ |
97,848 |
|
$ |
100,905 |
|
$ |
|
(3,057 |
) |
|
|
(3.0 |
)% |
|
|
|
Nine Months Ended |
|
|
|
|
|
|
|
|
September 30, |
|
Change |
|
|
|
2016 |
|
2015 |
|
Amount |
|
Percentage |
|
Business |
|
|
|
|
|
|
|
|
|
|
|
|
Data services |
|
$ |
45,510 |
|
$ |
36,285 |
|
$ |
|
9,225 |
|
|
|
25.4 |
% |
|
Voice services |
|
|
65,669 |
|
|
70,839 |
|
|
|
(5,170 |
) |
|
|
(7.3 |
)% |
|
Data center services |
|
|
9,329 |
|
|
8,143 |
|
|
|
1,186 |
|
|
|
14.6 |
% |
|
Equipment and managed services |
|
|
15,804 |
|
|
15,036 |
|
|
|
768 |
|
|
|
5.1 |
% |
|
|
|
|
136,312 |
|
|
130,303 |
|
|
|
6,009 |
|
|
|
4.6 |
% |
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
Video services |
|
|
29,907 |
|
|
24,479 |
|
|
|
5,428 |
|
|
|
22.2 |
% |
|
Internet services |
|
|
22,106 |
|
|
24,598 |
|
|
|
(2,492 |
) |
|
|
(10.1 |
)% |
|
Voice services |
|
|
55,825 |
|
|
60,231 |
|
|
|
(4,406 |
) |
|
|
(7.3 |
)% |
|
|
|
|
107,838 |
|
|
109,308 |
|
|
|
(1,470 |
) |
|
|
(1.3 |
)% |
|
Wholesale carrier
data |
|
|
40,373 |
|
|
42,368 |
|
|
|
(1,995 |
) |
|
|
(4.7 |
)% |
|
Other |
|
|
11,660 |
|
|
12,229 |
|
|
|
(569 |
) |
|
|
(4.7 |
)% |
|
|
|
$ |
296,183 |
|
$ |
294,208 |
|
$ |
|
1,975 |
|
|
|
0.7 |
% |
|
|
|
Hawaiian Telcom
Holdco, Inc. |
Schedule of
Adjusted EBITDA Calculation |
(Unaudited,
dollars in thousands) |
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
LTM Ended |
|
|
September 30, |
|
September 30, |
|
September 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
2016 |
Net income (loss) |
|
$ |
|
(279 |
) |
|
$ |
|
105 |
|
|
$ |
1,321 |
|
$ |
1,536 |
|
$ |
885 |
Income tax provision (benefit) |
|
|
|
(174 |
) |
|
|
|
(54 |
) |
|
|
892 |
|
|
1,204 |
|
|
1,045 |
Interest expense and other income
and expense, net |
|
|
|
4,156 |
|
|
|
|
4,144 |
|
|
|
12,879 |
|
|
12,636 |
|
|
17,048 |
Operating income |
|
|
|
3,703 |
|
|
|
|
4,195 |
|
|
|
15,092 |
|
|
15,376 |
|
|
18,978 |
Depreciation and amortization |
|
|
|
23,036 |
|
|
|
|
22,551 |
|
|
|
67,479 |
|
|
65,772 |
|
|
89,586 |
Non-cash stock and other
performance-based compensation |
|
|
|
737 |
|
|
|
|
186 |
|
|
|
2,305 |
|
|
1,087 |
|
|
2,802 |
SystemMetrics earn-out |
|
|
|
(71 |
) |
|
|
|
(350 |
) |
|
|
660 |
|
|
194 |
|
|
724 |
Pension settlement loss |
|
|
|
486 |
|
|
|
|
4,118 |
|
|
|
486 |
|
|
6,366 |
|
|
2,208 |
Other special items |
|
|
|
675 |
|
|
|
|
550 |
|
|
|
1,461 |
|
|
1,419 |
|
|
2,506 |
Adjusted EBITDA |
|
$ |
|
28,566 |
|
|
$ |
|
31,250 |
|
|
$ |
87,483 |
|
$ |
90,214 |
|
$ |
116,804 |
|
Hawaiian Telcom
Holdco, Inc. |
Schedule of
Levered Free Cash Flow (6) |
(Unaudited,
dollars in thousands) |
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
LTM Ended |
|
|
September 30, |
|
September 30, |
|
September 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
2016 |
Adjusted EBITDA |
|
$ |
|
28,566 |
|
|
$ |
|
31,250 |
|
|
$ |
|
87,483 |
|
|
$ |
|
90,214 |
|
|
$ |
|
116,804 |
|
Cash interest expense |
|
|
|
(3,588 |
) |
|
|
|
(3,630 |
) |
|
|
|
(9,938 |
) |
|
|
|
(11,234 |
) |
|
|
|
(14,882 |
) |
Capital expenditures |
|
|
|
(25,436 |
) |
|
|
|
(23,816 |
) |
|
|
|
(78,334 |
) |
|
|
|
(76,732 |
) |
|
|
|
(100,636 |
) |
Levered Free Cash
Flow |
|
$ |
|
(458 |
) |
|
$ |
|
3,804 |
|
|
$ |
|
(789 |
) |
|
$ |
|
2,248 |
|
|
$ |
|
1,286 |
|
|
Hawaiian Telcom
Holdco, Inc. |
|
Schedule of Net
Leverage Ratio |
|
(Unaudited,
dollars in thousands) |
|
|
|
Long-term debt as of
September 30, 2016 |
|
$ |
|
284,927 |
|
|
Less cash on hand |
|
|
|
(20,650 |
) |
|
Total net debt as of
September 30, 2016 |
|
$ |
|
264,277 |
|
|
|
|
|
|
|
LTM Adjusted EBITDA as
of September 30, 2016 |
|
$ |
|
116,804 |
|
|
Net leverage ratio as
of September 30, 2016 |
|
|
|
2.3 |
|
x |
|
Hawaiian Telcom
Holdco, Inc. |
|
Volume
Information (5) |
|
(Unaudited) |
|
|
|
|
|
September 30, |
|
Change |
|
|
|
2016 |
|
2015 |
|
Number |
|
Percentage |
|
Business |
|
|
|
|
|
|
|
|
|
Data lines |
|
19,754 |
|
19,835 |
|
|
(81 |
) |
|
|
(0.4 |
)% |
|
BVoIP lines |
|
18,593 |
|
16,273 |
|
|
2,320 |
|
|
|
14.3 |
% |
|
Voice access lines |
|
162,587 |
|
169,120 |
|
|
(6,533 |
) |
|
|
(3.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
|
|
|
|
|
|
|
Video subscribers |
|
39,774 |
|
34,009 |
|
|
5,765 |
|
|
|
17.0 |
% |
|
Internet lines |
|
91,000 |
|
93,202 |
|
|
(2,202 |
) |
|
|
(2.4 |
)% |
|
Voice access lines |
|
139,167 |
|
156,311 |
|
|
(17,144 |
) |
|
|
(11.0 |
)% |
|
Homes enabled for video |
|
201,000 |
|
183,000 |
|
|
18,000 |
|
|
|
9.8 |
% |
|
|
|
September 30, |
|
June 30, |
|
Change |
|
|
|
2016 |
|
2016 |
|
Number |
|
Percentage |
|
Business |
|
|
|
|
|
|
|
|
|
Data lines |
|
19,754 |
|
19,851 |
|
|
(97 |
) |
|
|
(0.5 |
)% |
|
BVoIP lines |
|
18,593 |
|
18,101 |
|
|
492 |
|
|
|
2.7 |
% |
|
Voice access lines |
|
162,587 |
|
163,860 |
|
|
(1,273 |
) |
|
|
(0.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
|
|
|
|
|
|
|
Video subscribers |
|
39,774 |
|
38,593 |
|
|
1,181 |
|
|
|
3.1 |
% |
|
Internet lines |
|
91,000 |
|
91,820 |
|
|
(820 |
) |
|
|
(0.9 |
)% |
|
Voice access lines |
|
139,167 |
|
143,441 |
|
|
(4,274 |
) |
|
|
(3.0 |
)% |
|
Homes enabled for video |
|
201,000 |
|
198,000 |
|
|
3,000 |
|
|
|
1.5 |
% |
|
Investor 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