This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Otelco Reports First Quarter 2011 Results

Stocks in this article: OTT

Otelco Inc. (NASDAQ: OTT) (TSX: OTT.un), a wireline telecommunications services provider in Alabama, Maine, Massachusetts, Missouri, New Hampshire and West Virginia, today announced results for its first quarter ended March 31, 2011. Key highlights for Otelco include:

  • Total revenues of $25.4 million for first quarter 2011.
  • Operating income of $5.3 million for first quarter 2011.
  • Adjusted EBITDA (as defined below) of $11.4 million for first quarter 2011.

“After record breaking performance in 2010, we had a challenging start for 2011,” said Mike Weaver, President and Chief Executive Officer of Otelco. “While the expansion of our sales and marketing department is now complete, the process of hiring and training new staff was more time consuming than anticipated. In addition, the planned expansion of our CLEC services in Massachusetts and New Hampshire was delayed but is now in progress. As a result of these delays and the increased costs associated with the expanded sales staff, first quarter results were below our expectations.

“Our cash position remains strong,” continued Weaver. “We increased our cash for the quarter by $0.2 million while at the same time making significant capital investments of $2.8 million in our business infrastructure in all of our service territories. This investment included a new soft switch in Alabama and the initial investments in Massachusetts for our CLEC expansion. In May, we intend to make another voluntary repayment of senior debt of $0.4 million representing a reduction of $11.5 million in the past two years.

“We remain committed to continuing the expansion of our CLEC services in New England, including our planned acquisition of Shoreham Telephone Company in Vermont,” added Weaver. “In addition to the increase of approximately 5,000 access line equivalents, this acquisition will anchor our CLEC expansion into the fourth New England state. Our investment in the existing sales organization anticipated this addition.

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs