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Lumos Networks Corp. Reports Fourth Quarter 2012 Financial Results

Lumos Networks Corp. (“Lumos Networks” or “the Company”) (Nasdaq: LMOS), a fiber-based service provider of data, voice and IP-based telecommunication services in the Mid-Atlantic region, today announced financial results for its fourth quarter of 2012.

Total revenue for the fourth quarter of 2012 was $52.7 million, compared to $51.1 million for the fourth quarter of 2011 and $52.0 million in the third quarter of 2012. Total adjusted EBITDA was $23.2 million for the fourth quarter of 2012, compared to $23.0 million in the fourth quarter of 2011 and to $22.3 million in the third quarter of 2012.

“Our strong execution continued in the fourth quarter as our Strategic Data revenue grew 5% sequentially and represented 52% of total sales, up from 50% in the prior quarter,” said Tim Biltz, CEO and President of Lumos Networks. “Our Strategic Data revenue grew 17% from the same quarter in the prior year, which is the third straight quarter of accelerating revenue growth for this product segment.”

“Our adjusted EBITDA margins reached 44.1%, marking the second straight quarter of sequential margin improvements, and we are making clear progress towards our longer term margin target of 47%,” Mr. Biltz continued. “I view this quarter’s results as a true inflection point in our operating results and I am confident that our current momentum will carry through 2013.”

Highlights

  • During the fourth quarter of 2012, the Company exceeded its targeted installation goals and more than doubled the number of fiber to the cell (“FTTC”) installations from 148 as of December 31, 2011 to 370 as of December 31, 2012.
  • In 2012, the Company achieved its goal of ensuring that 75% of total capital expenditures were for success-based strategic data projects in its Enterprise and Carrier Data customer segments as compared to less than 50% in 2011.
  • Adjusted EBITDA margins were 44.1% in the fourth quarter, up sequentially for the second consecutive quarter, from 41.5% in second quarter and 42.9% in the third quarter of 2012.
  • On February 27, 2013, the Board of Directors of Lumos Networks Corporation declared a dividend on its common stock in the amount of $0.14 per share to be paid on April 11, 2013 to stockholders of record on March 13, 2013.

Business Outlook

The Company introduced financial guidance for the first quarter and full year of 2013. In the first quarter of 2013, the Company expects revenue to be approximately $52 million and adjusted EBITDA approximately $23 million. For the full year 2013, the Company expects revenue to be in the range of $208 to $212 million and adjusted EBITDA in the range of $94 to $97 million. During the first half of 2013, the Company plans to explore bank financing options to adequately fund our success-based Strategic Data growth plans over the next several years.

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