Previous Statements by NTS
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» XFONE's CEO Discusses Q1 2011 Results - Earnings Call Transcript
These statements are based on current estimates and projections which evolve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to rapidly changing technology and evolving standards in the industries in which the company's subsidiaries operate.The ability to obtain sufficient funding for operation, maintain adequate cash flow, profitably exploit new business, license and sign new agreements, the unpredictable nature of consumer preferences and other factors set forth in the company’s most recently filed annual report, quarterly reports and registration statements. Call participants are cautioned not to place undue reliance on these forward-looking statements which reflect management’s analysis only as of the date hereof. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Call participants should carefully review the risks and uncertainties described in other documents that the company files from time to time with the US Securities and Exchange Commission. With that I'll turn the call over to Guy. Go ahead Guy. Guy Nissenson Thank you Jenna and good morning. Thank you for joining us today. We are very pleased to report continued growth from fiber revenue, shifting revenue composition, higher margins and significant EBITDA growth. Our ability to add new fiber markets and customers, and increased fiber revenues is offsetting the attrition of our legacy corporate customers and as a result we are seeing improving margins as well as growth in consolidated revenues. We've been very busy building the network and signing up new customers and our efforts in these areas are paying off. NTS continues to manage its network expansion very well and we are motivated to continue our progress and capitalize on new opportunities in new markets. Today we have brought our fiber network to 13 communities in Texas and during the second quarter we added our first fiber customers in Wilson, Meadow, Lamesa and Ropesville, while continuing to add subscribers in our existing FTTP markets. In the second quarter we also began our fiber build out in Southern Louisiana which will eventually reach the communities of Hammond, Ponchatoula, Natalbany, Tickfaw, Independence and Amite, Louisiana.
As we previously noted the construction of our fiber network is largely financed using federal stimulus funding. This type of long-term low interest financing is an excellent way to fund our growth. We've seen very strong take rates in the new markets we are entering which we believe reflects the high level of demand for high speed broadband in these communities and on the quality of our triple play offering.During the quarter, we announced the refinancing of our short-term note to Burlingame Equity Investors with a long-term $3.5 million note from ICON Investments, which strengthen our balance sheet and improves working capital. We also announced our plans for targeted [metro build] project in Wichita Falls which will be funded with a separate long-term icon investment in the amount of $3.1 million. This metro build project is an exciting opportunity giving it proximity to our existing network and the scale and knowledge that NTS has acquired is growing our existing fiber facilities. As we build out our networks to new markets and begin providing our services in new communities, the revenue contribution from our fiber business is growing. From 21.6% of our business on the second quarter 2011 to approximately (inaudible) of our business in the second quarter of 2012. Our strengthening fiber business also contributed to an approximately 37% increase in EBITDA from the second quarter of 2011 bringing EBITDA to $2.9 million and marking nine consecutive quarters of EBITDA growth. We are very pleased with our solid performance in the second quarter and we remain focused on the opportunities we see to continue to expansion of our fiber network into new communities. Now I will turn it over to Niv to review the financials. Niv? Read the rest of this transcript for free on seekingalpha.com