Otelco Reports Fourth Quarter And Year 2012 Results
Otelco Inc. (NASDAQ: OTT) (TSX: OTT.un), a wireline telecommunications services provider in Alabama, Maine, Massachusetts, Missouri, New Hampshire, Vermont and West Virginia, today announced results for its fourth quarter and year ended December 31, 2012. Key highlights for Otelco include:
- Total revenues of $23.9 million for fourth quarter 2012 and $98.4 million for 2012.
- Operating income (loss) of $5.6 million for fourth quarter 2012 and ($129.4) million for 2012.
- Adjusted EBITDA (as defined below) of $11.5 million for fourth quarter 2012 and $45.2 million for 2012.
“The fourth quarter of 2012 produced our best quarterly financial results for the year,” said Mike Weaver, President and Chief Executive Officer of Otelco. “Adjusted EBITDA topped $11.5 million for the fourth quarter and was $45.2 million for the year ended December 31, 2012. The adjusted EBITDA margin for 2012 of 45.9% represents a 1.4 percentage point margin improvement over 2011 results. Our cash balance increased by $5.3 million from the third quarter, finishing the year at $32.5 million.
“During 2012, our access line equivalents declined by 2.4% due solely to a reduction in residential access lines – a decline which was partially offset by modest gains in business access lines and high-speed Internet customers,” continued Weaver. “While we are never pleased with declining access lines, the good news is that we had positive growth in our business customers. Our fourth quarter results point out the fact that our operations remain strong and we continue to produce significant positive cash flow.
“The proposed restructuring plan we announced on February 1 st, if approved as filed, accomplishes three important objectives,” Weaver added. “The plan:
- Reduces our total debt by 50%;
- Amends and extends the senior credit facility through April 30, 2016 at competitive rates; and
- Puts in place a simplified capital structure that will serve Otelco well going forward.
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