Lumos Networks Corp. Reports Second Quarter 2012 Financial Results

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

Total revenue for second quarter 2012 was $50.8 million, compared to $52.1 million for second quarter 2011 and to $51.4 million in first quarter 2012. Total adjusted EBITDA was $21.1 million for second quarter 2012, compared to $25.0 million in second quarter 2011 and to $22.3 million in first quarter 2012.

“Revenue from our strategic data products continued to grow sequentially during the second quarter of 2012 and is on track for annual year-over-year revenue growth in excess of 15%,” said Tim Biltz, CEO and President of Lumos Networks. “As we exit 2012, we believe that our strategic data revenue growth momentum will position the Company to achieve overall annual year-over-year revenue growth starting in 2013,” concluded Biltz.

Highlights
  • For the first half of 2012, revenues from the Company’s strategic data products grew 16% on a comparable basis with the first half of 2011.
  • Revenues from all four of the Company’s strategic data products grew sequentially during the second quarter, with an overall aggregate sequential growth rate of approximately 3%. These product lines include: enterprise data, carrier class data, fiber-to-the-cell-tower (“FTTC”) and residential and small business.
  • During the second quarter of 2012, the Company continued to achieve its targeted installation goals and is on track to double the number of FTTC installations from approximately 150 at the end of 2011 to approximately 300 at the end of 2012.
  • For 2012, approximately 75% of the Company’s total capital expenditures are planned for success-based strategic data projects as compared to less than 50% in 2011. Through the first half of 2012, the Company is on track to achieve this goal.
  • On August 2, 2012, the Board of Directors of Lumos Networks Corp. declared a quarterly cash dividend on its common stock in the amount of $0.14 per share to be paid on October 12, 2012 to stockholders of record on September 14, 2012.

Business Outlook

The Company reaffirms its annual 2012 guidance for revenue and adjusted EBITDA, with total revenue expected to be between $200 million and $205 million and adjusted EBITDA expected to be between $85 million and $90 million. Capital expenditures for 2012 are currently expected to be at approximately $60 million, the upper end of the previous guidance range.

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