Otelco Inc. (NASDAQ: OTEL), a wireline telecommunications services provider in Alabama, Maine, Massachusetts, Missouri, New Hampshire, Vermont and West Virginia and a provider of cloud hosting and managed services, today announced results for its fourth quarter and year ended December 31, 2013. Key highlights for Otelco include:
- Total revenues of $19.3 million for fourth quarter 2013 and $79.0 million for 2013.
- Operating income of $4.3 million for fourth quarter 2013 and $18.7 million for 2013.
- Adjusted EBITDA (as defined below) of $7.3 million for fourth quarter 2013 and $31.8 million for 2013.
“The fourth quarter of 2013 produced financial results very consistent with third quarter as we moved past the restructuring activities of the first half of the year,” said Mike Weaver, President and Chief Executive Officer of Otelco. “Adjusted EBITDA was $7.3 million in both third and fourth quarter, and totaled $31.8 million for the year ended December 31, 2013. In the fourth quarter, we reduced our senior debt by $3.0 million including a $1.0 million voluntary principal payment on December 31, 2013. Our cash balance at the end of 2013 was $9.9 million. On January 31, 2014, we made our fourth quarter Excess Cash flow payment of $0.8 million, reducing our outstanding senior credit facility to $127.9 million.
“On January 6, 2014, we announced the acquisition of cloud hosting and managed services company, Reliable Networks,” continued Weaver. “The opportunities in the acquisition relate to our ability to offer additional services to our expanded customer base, as we continue to increase our capabilities in the managed services arena. Approximately half of our access line equivalents are enterprise customers. The new services from the Reliable Networks’ acquisition provide us the opportunity to expand our service capability for the enterprise customer.