Consolidated Communications Completes Divestiture of its Iowa-based Heartland Telecommunications Company
September 01 2016 - 4:00PM
Consolidated Communications Holdings, Inc. (NASDAQ:CNSL) (the
“Company”) announced today it has completed the sale of its
Heartland Telecommunications Company of Iowa (Heartland) subsidiary
to Mutual Telephone Company of Sioux Center, Iowa (Premier)
and Winnebago Cooperative Telecom Association (Winnebago).
The Company intends to focus on its core regions
and has noted both Premier and Winnebago are uniquely positioned to
provide exceptional service to customers in the rural areas of
northwest
Iowa.
Premier acquired the Iowa exchanges of: Akron, Boyden, Doon,
Hawarden, Hull, Ireton, Rock Rapids, Rock Valley and Sibley.
Winnebago acquired the Iowa exchanges of Bancroft and
Lakota.
The Heartland operation contributed approximately
$7.0 million of revenue in fiscal 2015. The sale was an
all-cash transaction valued at approximately $20.9
million.
About Consolidated
CommunicationsConsolidated Communications Holdings, Inc.
is a leading broadband and business communications provider
throughout its 11-state service area. The company leverages
its advanced fiber optic network and multiple data centers to offer
a wide range of communications solutions, including data, voice,
video, managed services, cloud computing and wireless
backhaul. Headquartered in Mattoon, Ill., the Company has
been providing services in many of its markets for more than a
century.
About Premier Communications
Premier Communications is the leading provider of voice, video and
data services in Northwest Iowa. With headquarters in Sioux Center,
IA and offices in Sanborn, IA and Le Mars, IA, Premier
Communications provides 22 communities with local and long distance
digital telephone service, high-speed Internet, cable television
programming and iWireless cellular service.
About Winnebago Cooperative Telecom
AssociationWCTA is a telecommunications company
headquartered in Lake Mills, Iowa. Since the Cooperative’s
inception in 1950, more than 70 companies have merged into WCTA.
Today, WCTA utilizes the latest digital switching and fiber optic
technologies to deliver advanced telecommunications service,
Internet access, digital TV service, wireless service, computer and
data back-up services and long distance service to communities in
northern Iowa and southern Minnesota.
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 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.
Contacts:
Matt Smith, Investor Relations, 217-258-2959
Jennifer Spaude, Corporate Communications, 507-386-3765
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