- Delivered a strong quarter of growth in data adds and
fiber to the cell sites
- Increased year over year commercial and carrier revenue
by 3.0%
- Grew Metro E circuits by 25% year over
year
- Reached approximately 65% of the two year, $17 million
synergy target for Enventis
Consolidated Communications Holdings, Inc. (Nasdaq:CNSL) (the
"Company") reported results for the third quarter 2015.
Third quarter financial summary:
- Revenue was $194.0 million.
- Net cash from operations was $71.8 million.
- Adjusted EBITDA was $89.4 million.
- Dividend payout ratio was 54.0%.
"The third quarter was another solid quarter of results as we
continued to execute on our strategy and delivered cash flows
providing a comfortable dividend payout ratio," said Bob Udell,
President and Chief Executive Officer. "We added over 3,300
net data subscribers and the strong growth in our data services
drove commercial and carrier revenues higher by 3.0% over last
year."
"It has been one year since the close of the Enventis
acquisition, and I could not be more pleased with how well the
integration has gone. The fiber-centric assets and the culture
of the employee base have been a great fit. The acquisition
strengthened our market and product diversification and positioned
us well for the future," Udell concluded.
Pro Forma Financial Results for the Third
Quarter
We have presented various adjusted pro forma information below
and in the tables at the end of the release. This information
is presented as if the acquisition of Enventis had occurred on
January 1, 2014 in order to provide a better view of the period
over period performance for the combined business.
- Total revenues were $194.0 million, compared to $203.4 million
for the same period last year. Excluding revenue from our
equipment sales and service, revenues were $179.2 million, compared
to $181.2 million for the third quarter of 2014. Solid growth
in strategic sales channels were offset by declines in voice
services and network access revenues. Equipment sales and
service revenues, which are low margin, declined by $7.5
million.
- Income from operations was $13.6 million, compared to $25.5
million in the third quarter of 2014. The decrease in the
quarter was primarily due to $9.6 million of integration and
severance charges tied to the ongoing Enventis synergy efforts and
a third quarter early retirement offer that was accepted by certain
employees.
- Interest expense, net improved by $2.6 million to $19.2 million
from $21.8 million for the same period last year. The
improvement is primarily due to the use of proceeds from the add-on
we completed in June to our 6.5% senior notes due 2022. We
used certain of the proceeds to redeem the remaining portion of our
outstanding 10 7/8% senior notes.
- Other income, net was $10.5 million, compared to $8.6 million
for the same period in 2014.
- Adjusted diluted net income per share excludes certain items in
the manner described in the table provided in this
release. Adjusted diluted net income per share for the current
quarter was $0.18 compared to $0.17 for the pro forma prior year
period.
- Cash distributions from our Verizon Wireless partnerships were
$20.0 million compared to $7.6 million for the third quarter of
2014. The distributions were positively impacted by the cash
received for the partnership owned towers that were included as
part of the larger Verizon agreement with American Tower. In
addition, cash collections from device financing plans are starting
to catch up to the increase in receivables over the last year.
- Adjusted EBITDA was $89.4 million compared to $79.8 million for
the same period in 2014.
- The total net debt to last twelve month adjusted EBITDA
coverage ratio was 4.22 times to one.
Financial Results for the Nine Months Ended September
30, 2015
- Revenues were $587.5 million and adjusted EBITDA was $249.4
million.
Cash Available to Pay Dividends
For the quarter, cash available to pay dividends, or CAPD, was
$36.2 million, and the dividend payout ratio was 54.0%. At
September 30, 2015, cash and cash equivalents were $23.9
million. Capital expenditures for the quarter were $34.6
million.
Financial Guidance
The Company is reiterating its full year guidance, which was
previously updated in the second quarter. The table below
reflects pro forma results for the full year of 2014.
|
2015
Guidance |
2014 Pro Forma
Results |
|
|
|
Cash Interest Expense |
$76.5 million to $77.5 million |
$81.4 million |
Cash Income Taxes |
$2.0 million to $3.0 million |
$12.4 million |
Capital Expenses* |
$128.0 million to $132.0 million |
$131.3 million |
*2015 capital guidance includes $5.2 million of integration
related expenses.
Dividend Payments
On November 2, 2015, the Company's board of directors declared
its next quarterly dividend of $0.38738 per common share, which is
payable on February 1, 2016 to stockholders of record at the close
of business on January 15, 2016. This will represent the 42nd
consecutive quarterly dividend paid by the Company.
Conference Call Information
The Company will host a conference call today at 11:00 a.m.
Eastern Time / 10:00 a.m. Central Time to discuss second quarter
earnings and developments with respect to the Company. The
call is being webcast and archived on the "Investor Relations"
section of the Company's website at
http://www.consolidated.com. The conference call dial-in
number is 1-877-374-3981 with pass code
56543992. International parties can access the call by dialing
1-253-237-1158. A telephonic replay of the conference call
will also be available starting three hours after completion of the
call until November 12, 2015 at midnight Eastern Time. To hear
the replay, parties in the United States and Canada should call
1-855-859-2056 and international parties should call
1-404-537-3406.
Use of Non-GAAP Financial Measures
This press release, as well as the conference call, includes
disclosures regarding "EBITDA", "adjusted EBITDA", "cash available
to pay dividends" and the related "dividend payout ratio", "total
net debt to last twelve month adjusted EBITDA coverage ratio",
"adjusted diluted net income per share" and "adjusted net income
attributable to common stockholders", all of which are non-GAAP
financial measures and described in this section as not being in
compliance with Regulation S-X. Accordingly, they should not
be construed as alternatives to net cash from operating or
investing activities, cash and cash equivalents, cash flows from
operations, net income or net income per share as defined by GAAP
and are not, on their own, necessarily indicative of cash available
to fund cash needs as determined in accordance with GAAP. In
addition, not all companies use identical calculations, and the
non-GAAP financial measures may not be comparable to other
similarly titled measures of other companies. A reconciliation
of the differences between these non-GAAP financial measures and
the most directly comparable financial measures presented in
accordance with GAAP is included in the tables that follow.
Adjusted EBITDA is comprised of EBITDA, adjusted for certain
items as permitted or required by the lenders under our credit
agreement in place at the end of each quarter in the periods
presented. The tables that follow include an explanation of
how adjusted EBITDA is calculated for each of the periods presented
with the reconciliation to net income. EBITDA is defined as
net earnings before interest expense, income taxes, depreciation
and amortization on a historical basis.
Cash available to pay dividends represents adjusted EBITDA plus
cash interest income less (1) cash interest expense, (2) capital
expenditures and (3) cash income taxes; this calculation differs in
certain respects from the similar calculation used in our credit
agreement.
We present adjusted EBITDA, cash available to pay dividends and
the related dividend payout ratio for several
reasons. Management believes adjusted EBITDA, cash available
to pay dividends and the dividend payout ratio are useful as a
means to evaluate our ability to fund our estimated uses of cash
(including interest on our debt) and pay dividends. In addition, we
have presented adjusted EBITDA, cash available to pay dividends and
the dividend payout ratio to investors in the past because they are
frequently used by investors, securities analysts and other
interested parties in the evaluation of companies in our industry,
and management believes presenting them here provides a measure of
consistency in our financial reporting. Adjusted EBITDA and cash
available to pay dividends, referred to as Available Cash in our
credit agreement, are also components of the restrictive covenants
and financial ratios contained in our credit agreement that
requires us to maintain compliance with these covenants and limit
certain activities, such as our ability to incur debt and to pay
dividends. The definitions in these covenants and ratios are
based on adjusted EBITDA and cash available to pay dividends after
giving effect to specified charges. In addition, adjusted
EBITDA, cash available to pay dividends and the dividend payout
ratio provide our board of directors with meaningful information to
determine, with other data, assumptions and considerations, our
dividend policy and our ability to pay dividends under the
restrictive covenants in our credit agreement and to measure our
ability to service and repay debt. We present the related
"total net debt to last twelve month adjusted EBITDA coverage
ratio" principally to put other non-GAAP measures in context and
facilitate comparisons by investors, security analysts and others;
this ratio differs in certain respects from the similar ratio used
in our credit agreement. These measures differ in certain
respects from the ratios used in our Senior Notes
indenture.
These non-GAAP financial measures have certain
shortcomings. In particular, adjusted EBITDA does not
represent the residual cash flows available for discretionary
expenditures, since items such as debt repayment and interest
payments are not deducted from such measure. Similarly, while
we may generate cash available to pay dividends, we are not
required to use any such cash to pay dividends, and the payment of
any dividends is subject to declaration by our board of directors,
compliance with applicable law and the terms of our credit
agreement. Because adjusted EBITDA is a component of the
dividend payout ratio and the ratio of total net debt to last
twelve month adjusted EBITDA, these measures are also subject to
the material limitations discussed above. In addition, the
ratio of total net debt to last twelve month adjusted EBITDA is
subject to the risk that we may not be able to use the cash on the
balance sheet to reduce our debt on a dollar-for-dollar basis.
Management believes these ratios are useful as a means to evaluate
our ability to incur additional indebtedness in the
future.
We present the non-GAAP measures adjusted diluted net income per
share and adjusted diluted net income attributable to common
stockholders because our net income and net income per share are
regularly affected by items that occur at irregular intervals or
are non-cash items. We believe that disclosing these measures
assists investors, securities analysts and other interested parties
in evaluating both our company over time and the relative
performance of the companies in our industry.
About Consolidated
Consolidated Communications Holdings, Inc. is a leading
communications provider within its 11-state operations.
Headquartered in Mattoon, IL, the Company has been providing
services in many of its markets for over a century. The Company
leverages its advanced fiber optic network to offer a wide range of
solutions including: high speed internet, metro Ethernet,
digital TV, Voice, wireless backhaul and cloud and managed
services.
Safe Harbor
The Securities and Exchange Commission ("SEC") encourages
companies to disclose forward-looking information so that investors
can better understand a company's future prospects and make
informed investment decisions. Certain statements in this
press release are forward-looking statements and are made pursuant
to the safe harbor provisions of the Securities Litigation Reform
Act of 1995. These forward-looking statements reflect, among
other things, our current expectations, plans, strategies, and
anticipated financial results. There are a number of risks,
uncertainties, and conditions that may cause our actual results to
differ materially from those expressed or implied by these
forward-looking statements. These risks and uncertainties
include our ability to successfully integrate Enventis' operations
and realize the synergies from the acquisition, as well as a number
of factors related to our business, including economic and
financial market conditions generally and economic conditions in
our service areas; various risks to shareholders of not receiving
dividends and risks to our ability to pursue growth opportunities
if we continue to pay dividends according to the current dividend
policy; various risks to the price and volatility of our common
stock; changes in the valuation of pension plan assets; the
substantial amount of debt and our ability to repay or refinance it
or incur additional debt in the future; our need for a significant
amount of cash to service and repay the debt and to pay dividends
on the common stock; restrictions contained in our debt agreements
that limit the discretion of management in operating the business;
regulatory changes, including changes to subsidies, rapid
development and introduction of new technologies and intense
competition in the telecommunications industry; risks associated
with our possible pursuit of acquisitions; system failures; losses
of large customers or government contracts; risks associated with
the rights-of-way for the network; disruptions in the relationship
with third party vendors; losses of key management personnel and
the inability to attract and retain highly qualified management and
personnel in the future; changes in the extensive governmental
legislation and regulations governing telecommunications providers
and the provision of telecommunications services;
telecommunications carriers disputing and/or avoiding their
obligations to pay network access charges for use of our network;
high costs of regulatory compliance; the competitive impact of
legislation and regulatory changes in the telecommunications
industry; and liability and compliance costs regarding
environmental regulations. A detailed discussion of these and other
risks and uncertainties that could cause actual results and events
to differ materially from such forward-looking statements are
discussed in more detail in our filings with the Securities and
Exchange Commission, including our reports on Form 10-K and Form
10-Q. Many of these circumstances are beyond our ability to
control or predict. Moreover, forward-looking statements
necessarily involve assumptions on our part. These
forward-looking statements generally are identified by the words
"believe", "expect", "anticipate", "estimate", "project", "intend",
"plan", "should", "may", "will", "would", "will be", "will
continue" or similar expressions. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results, performance or achievements
of Consolidated Communications Holdings, Inc. and its subsidiaries
to be different from those expressed or implied in the
forward-looking statements. All forward-looking statements
attributable to us or persons acting on our behalf are expressly
qualified in their entirety by the cautionary statements that
appear throughout this press release. Furthermore,
forward-looking statements speak only as of the date they are made.
Except as required under the federal securities laws or the
rules and regulations of the Securities and Exchange Commission, we
disclaim any intention or obligation to update or revise publicly
any forward-looking statements. You should not place undue
reliance on forward-looking statements.
- Tables Follow –
|
|
|
Consolidated
Communications Holdings, Inc. |
Condensed Consolidated
Balance Sheets |
(Dollars in thousands, except
par value) |
(Unaudited) |
|
September
30, |
December
31, |
|
2015 |
2014 |
|
|
|
ASSETS |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 23,854 |
$ 6,679 |
Accounts receivable, net |
73,304 |
77,536 |
Income tax receivable |
27,198 |
18,940 |
Deferred income taxes |
13,216 |
13,374 |
Prepaid expenses and other
current assets |
17,528 |
17,616 |
Total current assets |
155,100 |
134,145 |
|
|
|
Property, plant and equipment, net |
1,113,890 |
1,137,478 |
Investments |
106,183 |
115,376 |
Goodwill |
764,630 |
764,630 |
Other intangible assets |
46,909 |
56,322 |
Deferred debt issuance costs, net and other
assets |
16,373 |
19,313 |
Total assets |
$ 2,203,085 |
$ 2,227,264 |
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
Current liabilities: |
|
|
Accounts payable |
$ 13,903 |
$ 15,277 |
Advance billings and customer
deposits |
31,407 |
31,933 |
Dividends payable |
19,566 |
19,510 |
Accrued compensation |
22,865 |
32,581 |
Accrued interest |
17,330 |
6,784 |
Accrued expense |
39,469 |
39,698 |
Current portion of long-term
debt and capital lease obligations |
10,120 |
9,849 |
Current portion of derivative
liability |
362 |
443 |
Total current liabilities |
155,022 |
156,075 |
|
|
|
Long-term debt and capital lease
obligations |
1,406,297 |
1,356,753 |
Deferred income taxes |
251,217 |
246,665 |
Pension and other post-retirement
obligations |
104,247 |
122,363 |
Other long-term liabilities |
16,070 |
14,579 |
Total liabilities |
1,932,853 |
1,896,435 |
|
|
|
Shareholders' equity: |
|
|
Common stock, par value $0.01
per share; 100,000,000 shares authorized, 50,509,148 and
50,364,579, shares outstanding as of September 30, 2015 and
December 31, 2014, respectively |
505 |
504 |
Additional paid in capital |
295,581 |
357,139 |
Accumulated other comprehensive
loss, net |
(30,889) |
(31,640) |
Noncontrolling interest |
5,035 |
4,826 |
Total shareholders' equity |
270,232 |
330,829 |
Total liabilities and shareholders'
equity |
$ 2,203,085 |
$ 2,227,264 |
|
|
|
|
|
|
Consolidated
Communications Holdings, Inc. |
Condensed Consolidated
Statements of Operations |
(Dollars in thousands, except
per share amounts) |
(Unaudited) |
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September
30, |
September
30, |
|
2015 |
2014 |
2015 |
2014 |
|
|
|
|
|
|
|
|
|
|
Net revenues |
$ 193,958 |
$ 149,040 |
$ 587,546 |
$ 449,724 |
Operating expenses: |
|
|
|
|
Cost of services and
products |
83,209 |
56,435 |
249,477 |
167,653 |
Selling, general and
administrative expenses |
50,649 |
32,659 |
135,682 |
97,945 |
Acquisition and other
transaction costs |
395 |
729 |
1,055 |
1,995 |
Depreciation and
amortization |
46,057 |
34,968 |
133,264 |
106,515 |
Income from operations |
13,648 |
24,249 |
68,068 |
75,616 |
Other income (expense): |
|
|
|
|
Interest expense, net of
interest income |
(19,174) |
(20,721) |
(60,277) |
(60,280) |
Loss on extinguishment of
debt |
-- |
-- |
(41,242) |
-- |
Other income, net |
10,491 |
8,608 |
25,839 |
25,102 |
Income (loss) before income taxes |
4,965 |
12,136 |
(7,612) |
40,438 |
Income tax expense (benefit) |
2,220 |
4,387 |
(2,258) |
14,380 |
Net income (loss) |
2,745 |
7,749 |
(5,354) |
26,058 |
|
|
|
|
|
Less: net income attributable to
noncontrolling interest |
150 |
107 |
209 |
285 |
|
|
|
|
|
Net income (loss) attributable to common
shareholders |
$ 2,595 |
$ 7,642 |
$ (5,563) |
$ 25,773 |
|
|
|
|
|
Net income (loss) per basic and
diluted common share attributable to common shareholders |
$ 0.05 |
$ 0.19 |
$ (0.11) |
$ 0.63 |
|
|
|
|
|
Consolidated
Communications Holdings, Inc. |
Pro Forma Condensed
Consolidated Statements of Operations |
(Dollars in thousands, except
per share amounts) |
(Unaudited) |
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September
30, |
September
30, |
|
|
Pro Forma |
|
Pro Forma |
|
2015 |
2014 |
2015 |
2014 |
|
|
|
|
|
|
|
|
|
|
Net revenues |
$ 193,958 |
$ 203,450 |
$ 587,546 |
$ 598,097 |
Operating expenses: |
|
|
|
|
Operating expenses (exclusive
of depreciation and amortization) |
134,253 |
131,121 |
386,214 |
377,215 |
Depreciation and
amortization |
46,057 |
46,824 |
133,264 |
142,082 |
Income from operations |
13,648 |
25,505 |
68,068 |
78,800 |
Other income (expense): |
|
|
|
|
Interest expense, net of
interest income |
(19,174) |
(21,775) |
(60,277) |
(65,554) |
Loss on extinguishment of
debt |
-- |
-- |
(41,242) |
-- |
Other income, net |
10,491 |
8,608 |
25,839 |
25,102 |
Income (loss) from before income taxes |
4,965 |
12,338 |
(7,612) |
38,348 |
Income tax expense (benefit) |
2,220 |
4,507 |
(2,258) |
13,724 |
Net Income (loss) |
2,745 |
7,831 |
(5,354) |
24,624 |
Less: net income attributable to
noncontrolling interest |
150 |
107 |
209 |
285 |
|
|
|
|
|
Net income (loss) attributable to common
shareholders |
$ 2,595 |
$ 7,724 |
$ (5,563) |
$ 24,339 |
|
|
|
|
|
Net income (loss) per basic and
diluted common share attributable to common shareholders |
$ 0.05 |
$ 0.15 |
$ (0.11) |
$ 0.49 |
|
|
|
|
|
Consolidated
Communications Holdings, Inc. |
Condensed Consolidated
Statements of Cash Flows |
(Dollars in thousands) |
(Unaudited) |
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September
30, |
September
30, |
|
2015 |
2014 |
2015 |
2014 |
OPERATING ACTIVITIES |
|
|
|
|
Net income (loss) |
$ 2,745 |
$ 7,749 |
$ (5,354) |
$ 26,058 |
Adjustments to reconcile net
income to cash provided by operating activities: |
|
|
|
|
Depreciation and
amortization |
46,057 |
34,968 |
133,264 |
106,515 |
Deferred income taxes |
4,213 |
(423) |
4,218 |
(958) |
Cash distributions from
wireless partnerships in excess of/(less than) earnings |
9,396 |
(807) |
7,840 |
(784) |
Non- cash stock-based
compensation |
742 |
948 |
2,265 |
2,672 |
Amortization of deferred
financing |
770 |
1,773 |
2,592 |
3,114 |
Loss on extinguishment of
debt |
-- |
-- |
41,242 |
-- |
Other adjustments, net |
226 |
(311) |
924 |
1,592 |
Changes in operating assets and
liabilities, net |
7,672 |
2,422 |
(19,354) |
(4,845) |
Net cash provided by operating
activities |
71,821 |
46,319 |
167,637 |
133,364 |
INVESTING ACTIVITIES |
|
|
|
|
Purchase of property, plant and
equipment, net |
(34,581) |
(25,592) |
(100,119) |
(76,038) |
Proceeds from sale of
assets |
61 |
313 |
118 |
1,563 |
Proceeds from the sale of
investments |
-- |
-- |
846 |
-- |
Restricted cash related to
acquisition |
-- |
(149,917) |
-- |
(149,917) |
Net cash used in investing
activities |
(34,520) |
(175,196) |
(99,155) |
(224,392) |
FINANCING ACTIVITIES |
|
|
|
|
Proceeds on bond offering |
-- |
200,000 |
294,780 |
200,000 |
Restricted cash on bond
offering |
-- |
(54,886) |
-- |
(54,886) |
Proceeds on issuance of
long-term debt |
21,000 |
2,000 |
61,000 |
28,000 |
Payment of capital lease
obligation |
(214) |
(164) |
(658) |
(481) |
Payment on long-term debt |
(21,275) |
(2,275) |
(80,825) |
(32,825) |
Redemption of senior notes |
-- |
-- |
(261,874) |
-- |
Payment of financing costs |
(337) |
(183) |
(4,805) |
(2,707) |
Share repurchases for minimum
tax withholding |
-- |
-- |
(282) |
-- |
Dividends on common stock |
(19,567) |
(15,607) |
(58,643) |
(46,734) |
Net cash provided by financing
activities |
(20,393) |
128,885 |
(51,307) |
90,367 |
Net change in cash and cash equivalents |
16,908 |
8 |
17,175 |
(661) |
Cash and cash equivalents at beginning of
period |
6,946 |
4,882 |
6,679 |
5,551 |
Cash and cash equivalents at end of
period |
$ 23,854 |
$ 4,890 |
$ 23,854 |
$ 4,890 |
|
|
|
|
|
|
Consolidated
Communications Holdings, Inc. |
Consolidated Revenue by
Category |
(Dollars in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
PRO
FORMA |
|
|
|
|
Q3'14 |
Q4'14 |
Q1'15 |
Q2'15 |
Q3'15 |
Commercial and carrier: |
|
|
|
|
|
Data and transport services
(includes VoIP) |
$ 42,831 |
$ 43,392 |
$ 45,055 |
$ 45,049 |
$ 46,187 |
Voice services |
26,834 |
26,346 |
26,055 |
26,213 |
25,463 |
Other |
2,984 |
3,414 |
2,596 |
2,841 |
3,208 |
|
72,649 |
73,152 |
73,706 |
74,103 |
74,858 |
Consumer: |
|
|
|
|
|
Broadband (VoIP, Data and
Video) |
53,516 |
53,394 |
53,725 |
54,051 |
52,956 |
Voice services |
16,688 |
16,085 |
15,556 |
15,120 |
15,143 |
|
70,204 |
69,479 |
69,281 |
69,171 |
68,099 |
|
|
|
|
|
|
Equipment Sales and
Service |
22,258 |
11,062 |
10,853 |
19,309 |
14,759 |
Subsidies |
14,040 |
14,348 |
14,392 |
14,516 |
13,905 |
Network Access |
19,680 |
19,789 |
19,399 |
19,056 |
17,923 |
Other products and
services |
4,619 |
4,818 |
4,947 |
4,855 |
4,414 |
Total operating revenue |
$ 203,450 |
$ 192,648 |
$ 192,578 |
$ 201,010 |
$ 193,958 |
|
|
|
|
|
Consolidated
Communications Holdings, Inc. |
Schedule of Adjusted
EBITDA Calculation |
(Dollars in thousands) |
(Unaudited) |
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September
30, |
September
30, |
|
|
Pro forma |
|
Pro forma |
|
2015 |
2014 |
2015 |
2014 |
Net income (loss) |
$ 2,745 |
$ 7,831 |
$ (5,354) |
$ 24,624 |
Add (subtract): |
|
|
|
|
Income tax expense
(benefit) |
2,220 |
4,507 |
(2,258) |
13,724 |
Interest expense, net |
19,174 |
21,775 |
60,277 |
65,554 |
Depreciation and
amortization |
46,057 |
46,824 |
133,264 |
142,082 |
EBITDA |
70,196 |
80,937 |
185,929 |
245,984 |
|
|
|
|
|
Adjustments to EBITDA (1): |
|
|
|
|
Other, net (2) |
(1,498) |
(9,860) |
27,102 |
(27,188) |
Investment distributions
(3) |
19,996 |
7,564 |
34,162 |
25,356 |
Non-cash compensation (4) |
742 |
1,140 |
2,265 |
3,287 |
|
|
|
|
|
Adjusted EBITDA |
$ 89,436 |
$ 79,781 |
$ 249,458 |
$ 247,439 |
|
|
|
|
|
Footnotes for Adjusted
EBITDA: |
|
|
|
|
(1) These adjustments
reflect those required or permitted by the lenders under our credit
agreement. |
(2) Other, net includes the
equity earnings from our investments, dividend income, income
attributable to noncontrolling interests in subsidiaries,
acquisition and non-recurring related costs and certain
miscellaneous items. |
(3) Includes all cash
dividends and other cash distributions received from our
investments. |
(4) Represents compensation
expenses in connection with our Restricted Share Plan, which
because of the non-cash nature of the expenses are excluded from
adjusted EBITDA. |
|
|
|
Consolidated
Communications Holdings, Inc. |
Cash Available to Pay
Dividends |
(Dollars in thousands) |
(Unaudited) |
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September 30,
2015 |
September 30,
2015 |
|
|
|
Adjusted EBITDA |
$ 89,436 |
$ 249,458 |
|
|
|
- Cash interest expense |
(18,601) |
(58,439) |
- Capital expenditures |
(34,581) |
(100,119) |
- Cash income taxes |
(8) |
(1,795) |
|
|
|
Cash available to pay dividends |
$ 36,246 |
$ 89,105 |
|
|
|
Dividends Paid |
$ 19,567 |
$ 58,643 |
Payout Ratio |
54.0% |
65.8% |
|
|
|
Note: The above calculation
excludes the principal payments on the amortization of our
debt |
|
|
Consolidated
Communications Holdings, Inc. |
Total Net Debt to LTM
Adjusted EBITDA Ratio |
(Dollars in thousands) |
(Unaudited) |
|
|
Summary of Outstanding Debt |
|
Term loan, net of discount $3,494 |
$ 890,581 |
Revolving loan |
26,000 |
Senior unsecured notes due 2022, net of
discount $5,035 |
494,965 |
Capital leases |
4,871 |
Total debt as of September 30, 2015 |
$ 1,416,417 |
Less cash on hand |
(23,854) |
Total net debt as of September 30, 2015 |
$ 1,392,563 |
|
|
Adjusted EBITDA for the last twelve months
ended September 30, 2015 |
$ 330,072 |
|
|
Total Net Debt to last twelve months |
|
Adjusted EBITDA |
4.22x |
|
|
|
|
|
Consolidated
Communications Holdings, Inc. |
Adjusted Net Income and
Net Income Per Share |
(in thousands, except per share
amounts) |
(Unaudited) |
|
|
|
|
|
|
Three
Months Ended |
Nine Months
Ended |
|
|
Pro Forma |
|
Pro Forma |
|
Sep 30, |
Sep 30, |
Sep 30, |
Sep 30, |
|
2015 |
2014 |
2015 |
2014 |
Net income (loss) |
$ 2,745 |
$ 7,831 |
$ (5,354) |
$ 24,624 |
Transaction and severance related costs, net
of tax |
5,620 |
-- |
9,329 |
-- |
Loss on extinguishment of debt, net of
tax |
-- |
-- |
28,251 |
-- |
Loss related to sale of building, net of
tax |
-- |
-- |
-- |
474 |
Impairment charge for CVIN investment, net of
tax |
-- |
-- |
573 |
-- |
Non-cash stock compensation, net of tax |
433 |
724 |
1,552 |
2,110 |
Adjusted net income |
$ 8,798 |
$ 8,555 |
$ 34,351 |
$ 27,208 |
|
|
|
|
|
Weighted average number of shares
outstanding |
50,174 |
50,021 |
50,166 |
50,021 |
Adjusted diluted net income per share |
$ 0.18 |
$ 0.17 |
$ 0.68 |
$ 0.54 |
|
|
|
|
|
* Calculations above assume a
41.7% and 36.5% effective tax rate for the three months ended and
31.5% and 35.8% for the nine months ended September 30, 2015 and
2014, respectively. |
|
|
|
|
|
|
Consolidated
Communications Holdings, Inc. |
Key Operating
Statistics |
(Unaudited) |
|
|
|
|
|
|
|
30-Sep-15 |
30-Jun-15 |
% Change in Qtr |
30-Sep-14 |
% Change yoy |
|
|
|
|
|
|
Voice Connections |
488,037 |
493,540 |
(1.1%) |
508,409 |
(4.0%) |
|
|
|
|
|
|
Data and Internet
Connections |
452,265 |
448,944 |
0.7% |
440,868 |
2.6% |
|
|
|
|
|
|
Video Connections |
119,643 |
122,155 |
(2.1%) |
124,326 |
(3.8%) |
|
|
|
|
|
|
Business and Broadband as % of total
revenue |
80% |
80% |
0.0% |
79% |
1.3% |
|
|
|
|
|
|
Fiber route network miles (long-haul
and metro) |
13,441 |
13,262 |
1.3% |
12,561 |
7.0% |
|
|
|
|
|
|
On-net buildings |
4,981 |
4,840 |
2.9% |
4,750 |
4.9% |
|
|
|
|
|
|
Consumer Customers |
270,466 |
272,882 |
(0.9%) |
279,249 |
(3.1%) |
|
|
|
|
|
|
Consumer ARPU |
$83.93 |
$84.50 |
(0.7%) |
$84.22 |
(0.3%) |
|
|
|
|
|
|
Note: |
|
|
|
|
|
BB% includes commercial/carrier,
equipment sales and service, directory, consumer broadband and
special access |
All periods are pro forma for the
Enventis acquisition |
CONTACT: Company Contact:
Matt Smith
Treasurer and VP of Finance & IR
217-258-2959
matthew.smith@consolidated.com
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