“The long-term sustainability of our plan comes from the trust our customers place in us. Our customers value us for our reliability, our customer service, our trustworthiness and our local community presence. This, combined with our accelerated debt pay downs will drive long-term value creation for our employees, customers and shareholders,” said Anand Vadapalli, president and CEO of Alaska Communications.
Financial Highlights: Third Quarter 2012 Compared to Third Quarter 2011
- Revenue of $96.8 million grew by $6.5 million, or 7.2 percent, from $90.3 million in the prior year.
- Business and Wholesale revenue increased by $1.2 million, or 4.6 percent, led by growth in wholesale revenue, which increased $1.0 million, or 9.3 percent.
- Wireless revenue increased by $5.7 million, or 16.5 percent. Wireless broadband revenue grew $0.9 million, or 15.5 percent and roaming revenue grew $5.4 million, or 39.9 percent, both driven by higher data usage.
- Access and CETC revenue decreased $0.4 million, or 2 percent.
- Consumer broadband revenues increased $0.3 million, or 8.1 percent.
- Adjusted EBITDA of $36.6 million increased $3.8 million, or 11.6%.
- Costs of service and sales increased $1.8 million, resulting from higher levels of data and network usage which drove increases in our roaming, DSL and advanced network expenses.
- Selling, general and administrative expenses increased by $1.3 million primarily driven by increases in labor expenses in our sales and service organization and administrative costs associated with the AWN transaction.
Metric Highlights: Third Quarter 2012 Compared to Second Quarter 2012
- Business broadband connections remained relatively flat at 19,063, and ARPU grew 2.3 percent to $150.58.
- Wireless connections grew by 925 to 120,975 from 120,050 and churn was unchanged at 2.0 percent.
- Wireless retail ARPU grew 1.0 percent to $51.79.
- Consumer broadband connections, exclusive of erosion in dial up connections, increased sequentially and stand at 38,491 while ARPU grew 2.3 percent to $39.90.
“We are pleased with our performance and the debt amendment we recently entered into with our senior lenders. The amendment dedicates $65 million of the up-front proceeds from the AWN transaction to debt pay downs, with modestly higher borrowing rates and additional covenant flexibility related to future preferred dividend payments from the AWN venture,” said Wayne Graham, chief financial officer of Alaska Communications.