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
TheStreet Open House

Inteliquent Reports Financial Results That Exceed Revised 2012 Financial Guidance

Stock quotes in this article: IQNT

About Inteliquent

Headquartered in Chicago, Inteliquent (operating respectively under the legal names Neutral Tandem, Inc. and Tinet S.p.A. or the name of the applicable affiliate) provides intelligent networking to solve challenging interconnection and interoperability issues on a global scale. With an advanced MPLS network that is highly interconnected to carriers around the world, Inteliquent provides voice, IP Transit and Ethernet services to major carriers, service providers, and content management firms based in over 80 countries and six continents. With over 130 Ethernet sites worldwide, the company is the largest global Ethernet interconnection provider, a top-five global IP transit provider and has a leading IPv6 network. Please visit Inteliquent's website at www.inteliquent.com and follow us on Twitter@Inteliquent.

The Inteliquent logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3797

The condensed consolidated statements of income, balance sheets and statements of cash flows are unaudited and subject to reclassification.  The tax-related figures in the financial statements are preliminary and may be adjusted in connection with an ongoing analysis of the impairment charges recorded in the fourth quarter of 2012.

NEUTRAL TANDEM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(In thousands, except per share amounts)
(Unaudited)
         
  Three Months Ended December 31 Years Ended December 31
  2012 2011 2012 2011
         
Revenue $67,665 $69,466 $275,453 $268,284
         
Operating expense:        
Network and facilities expense (excluding depreciation and amortization) 33,654 27,482 126,590 108,279
Operations 11,656 12,917 48,131 42,024
Sales and marketing 4,096 3,748 16,097 13,599
General and administrative 8,131 5,201 27,495 27,972
Depreciation and amortization 6,951 7,326 29,749 29,366
Carrier Settlement  --   --  9,000  -- 
Impairment of fixed assets 14,892  --  16,149  -- 
Impairment of goodwill 49,603  --  49,603  -- 
Impairment of intangible assets 25,848  --  25,848  -- 
Loss on disposal of fixed assets 895 292 731 439
Total operating expense 155,726 56,966 349,393 221,679
         
Income (loss) from operations (88,061) 12,500 (73,940) 46,605
         
Other (income) expense:        
         
Interest expense  --   --   --   -- 
Interest income (10) (10) (10) (42)
Other (income) expense (254) 17 (305) 437
Foreign exchange loss (gain) 268 738 446 421
         
Total other expense (income)  14 745 131 816
Income (loss) before income taxes  (88,074) 11,755 (74,070) 45,789
Provision for income taxes 816 5,782 7,195 18,732
Net (loss) income ($88,890) $5,973 ($81,265) $27,057
         
Net income (loss) per share:        
Basic ($2.76) $0.19 ($2.55) $0.83
Diluted ($2.76) $0.19 ($2.55) $0.82
         
Weighted average number of shares outstanding:        
Basic 32,219 31,478 31,918 32,780
Diluted 32,219 31,860 31,918 33,195
 
NEUTRAL TANDEM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
     
  December 31
  2012 2011
ASSETS    
Current assets:    
Cash and cash equivalents  $31,479 $90,279
Receivables, net 42,829 46,991
Deferred income taxes-current 1,210 3,227
Other current assets 11,266 6,655
Total current assets 86,784 147,152
Intangible assets  -- 28,644
Goodwill  --  48,137
Property and equipment—net 53,517 75,045
Restricted cash 962 962
Deferred income taxes-non-current 2,876  -- 
Other assets 1,685 2,870
Total assets $145,824 $302,810
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
Current liabilities:    
Accounts payable $12,382 $13,792
Accrued liabilities:    
Taxes payable 13,309 2,567
Circuit cost 13,200 8,743
Rent 1,831 1,525
Payroll and related items 4,516 4,366
Other 3,186 2,640
Total current liabilities 48,422 33,633
Other liabilities 1,075 1,693
Deferred income taxes-noncurrent  --  7,806
     
Total liabilities 49,497 43,132
Shareholders' equity:    
Preferred stock—par value of $.001; 50,000,000 authorized shares; no shares issued and outstanding at December 31, 2012 and December 31, 2011    
Common stock—par value of $.001; 150,000,000 authorized shares; 32,344,614 shares and 31,520,121 shares issued and outstanding at December 31, 2012 and December 31, 2011, respectively 32 32
Additional paid-in capital 199,331 185,014
Less treasury stock, at cost; 3,083,446 in 2012 and 2011 (50,103) (50,103)
Accumulated other comprehensive loss (4,553) (4,346)
Retained earnings (48,380) 129,081
Total shareholders' equity 96,327 259,678
Total liabilities and shareholders' equity $145,824 $302,810
 
NEUTRAL TANDEM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
       
  Years Ended December 31
  2012 2011 2010
       
Cash Flows From Operating Activities:      
Net income (loss) $(81,265) $27,057 $32,608
Adjustments to reconcile net cash flows from operating activities:  
Depreciation and amortization 29,749 29,366 19,062
Deferred income taxes (10,457) (3,698) (476)
Impairment of fixed assets 16,149  --   -- 
Impairment of goodwill 49,604  --   -- 
Impairment of intangible assets 25,848  --   -- 
(Gain) Loss on disposal of fixed assets 733 439 (82)
Non-cash share-based compensation 13,172 15,120 10,072
Change in fair value of ARS  --   --  (923)
Change in fair value of ARS Rights  --   --  712
Gain on intercompany foreign exchange transactions (383) (98)  -- 
Excess tax deficiency associated with stock option exercise (1,066) 435 338
Changes in assets and liabilities:      
Receivables 4,777 (9,800) (1,910)
Other current assets (3,696) 726 (2,940)
Other noncurrent assets (564) (929) 2,941
Accounts payable 1,761 (2,744) 2
Accrued liabilities 15,932 1,343 1,137
Noncurrent liabilities 1,739 497 (29)
       
Net cash flows from operating activities 62,033 57,714 60,512
       
Cash Flows From Investing Activities:      
Purchase of equipment (25,922) (21,986) (18,360)
Proceeds from sale of equipment 206 27 89
Increase in restricted cash  --   --  (522)
Purchase of Tinet SpA  --   --  (103,144)
Other Investments  --  (500)  -- 
Proceeds from the redemption of ARS  --   --  17,125
       
Net cash flows from investing activities (25,716) (22,459) (104,812)
       
Cash Flows From Financing Activities:      
Proceeds from the issuance of common shares associated with stock option exercise 1,396 256 116
Restricted shares withheld to cover employee taxes paid (1,317) (1,268) (333)
Excess tax (deficiency) associated with stock option exercise 1,066 (435) (338)
Repurchase of treasury stock  --  (50,106) (9,556)
Dividends Paid (96,659)  --   -- 
Principal payments on long-term debt  --   --  (235)
Net cash flows from financing activities (95,513) (51,553) (10,346)
       
Effect of exchange rate changes on cash 396 (97) (91)
       
       
Net Increase In Cash And Cash Equivalents (58,800) (16,395) (54,737)
Cash And Cash Equivalents—Beginning 90,279 106,674 161,411
Cash And Cash Equivalents—End $31,479 $90,279 $106,674
       
Supplemental Disclosure Of Cash Flow Information:    
Cash paid for interest  $ --   $ --  $242
Cash paid for taxes $12,491 $20,421 $22,666
       
Supplemental Disclosure Of Noncash Flow Items:    
Investing Activity—Accrued purchases of equipment $3,411 $6,464 $3,308

Use of Non-GAAP Financial Measures

In this press release we disclose "Adjusted EBITDA", which is a non-GAAP financial measure. For purposes of SEC rules, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure, calculated and prepared in accordance with generally accepted accounting principles in the United Sates (GAAP).

5 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

Brokerage Partners

Rates from Bankrate.com

  • 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