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 second quarter of 2013.
Total revenue for the second quarter of 2013 was $52.3 million, compared to $50.8 million for the second quarter of 2012 and $52.5 million in the first quarter of 2013. Total Adjusted EBITDA was $24.6 million for the second quarter of 2013, compared to $21.1 million in the second quarter of 2012 and to $24.7 million in the first quarter of 2013.
“In the second quarter of 2013, Lumos Networks delivered overall year-over-year revenue growth of 3% and adjusted EBITDA growth of 16%,” commented CEO Tim Biltz. “Our Strategic Data revenue grew 13% year-over-year to nearly $30 million and represented 57% of total revenue. EBITDA generated from Strategic Data revenue for the second quarter equated to 45% of revenue.”
“I continue to expect that Lumos Networks will deliver solid results in 2013 including year-over-year revenue growth and near double-digit EBITDA growth,” Mr. Biltz continued.“We now expect that our Strategic Data revenue growth will be in the range of 12% in 2013 as opposed to our initial target of 15% due to the lumpy nature of our Carrier business and a slower than planned growth ramp in our edge-out markets,” said Mr. Biltz. “However, we expect to accelerate growth in our Strategic Data product segment as we continue to pursue edge-out marketplace opportunities for both Enterprise Data and Fiber to the Cell products,” concluded Biltz. Highlights
- The Company ended the quarter with 465 fiber to the cell (“FTTC”) installations, up 60 sequentially, which represents a year-over-year increase in total FTTC sites of over 160%. Additionally, the Company increased its FTTC installation target in 2013 from 550-600 to at least 600 and increased its long-term FTTC target from 1,000 to 1,500.
- In the second quarter of 2013, the Company allocated 75% of its total capital expenditures for success-based strategic data revenue projects and maintains its target of 75% for 2013.
- Lumos Networks continues to plan to “go live” with its Richmond, Virginia network in the third quarter of 2013 and has pre-sold approximately $1 million in annualized revenue in that market, mostly strategic data.
- On July 31, 2013, the Board of Directors of Lumos Networks declared a dividend on its common stock in the amount of $0.14 per share to be paid on October 10, 2013 to stockholders of record on September 12, 2013.