Sign In  |  Register  |  About Livermore  |  Contact Us

Livermore, CA
September 01, 2020 1:25pm
7-Day Forecast | Traffic
  • Search Hotels in Livermore

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

LICT Corporation Reports Preliminary Fourth Quarter and Full Year 2022 Results

LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) reports unaudited, financial results for the quarter ended December 31, 2022.

The Company wishes Kevin Errity well upon his departure and success in his future endeavors.

CHARITABLE CONTRIBUTIONS - LICT has completed the recent Shareholder Designated Contribution Program. The current program resulted in $1.1 million of designated contributions for 2022. Equally important, is that since the inception of the program in 2016, LICT has contributed $8.4 million to designated 501 (c) 3 organizations chosen by shareholders.

RESULTS - FULL YEAR

Revenues in 2022 were $131.3 million, an increase of $2.2 million, compared to $129.1 million in 2021. EBITDA in 2022 was $57.6 million versus $57.8 million in 2021.

Earnings per share for the full year of 2022 were $1,311 per share as compared to $1,368 per share for the prior year.

RESULTS - 4TH QUARTER

Fourth quarter 2022 revenues totaled $33.1 million compared to $32.5 million for the corresponding quarter in 2021. EBITDA was $14.4 million in the fourth quarter of 2022 as compared to $14.0 million in 2021.

Non-regulated revenues for the fourth quarter of 2022 increased 4.6%, to $18.1 million from the prior year’s fourth quarter $17.2 million. Non-regulated EBITDA was $7.5 million, versus the $6.9 million earned in the same period last year. The increase in revenues was driven by the sale of broadband services throughout our network.

Regulated revenues were $15.0 million in the fourth quarter of 2022 versus the prior year’s fourth quarter of $15.3 million. Regulated EBITDA was $6.9 million compared to $7.1 million last year.

Corporate costs were unchanged at $1.1 million in the fourth quarter of 2022 versus 2021.

Earnings per share for the fourth quarter of 2022 were $272 per share as compared to $291 per share for the prior year. Shares outstanding as of December 31, 2022 were 17,341.

BROADBAND INITIATIVES -

-ReConnect Loan and Grant Program - The ReConnect Loan and Grant Program of the US Department of Agriculture, furnishes loans and grants to provide funds for the costs of construction, improvement, or acquisition of facilities and equipment needed to provide broadband service in eligible rural areas. To date, the Company has accepted a $6.3 million ReConnect III grant, of which LICT has a 25% commitment, from the United States Department of Agriculture (USDA) to build fiber to additional customers in Kansas. In addition, LICT recently accepted 100% grants in New Mexico, California and Michigan for a total of $62.0 million. We are awaiting announcements by USDA on the balance of our ReConnect III applications.

-Affordable Connectivity Program – LICT continues its participation in the FCC Affordable Connectivity Program (“ACP”) to support the Company’s ongoing commitment to provide affordable broadband to the rural communities we serve and help close the digital divide. This program provides consumers who are eligible, a broadband credit of up to $30 per month (up to $75 for households on Tribal Lands) towards their qualifying internet plan. We offer a variety of broadband options that qualify under the ACP.

-Alternative – Connect America Cost Model (“A-CAM”) Program – The A-CAM program is designed to increase broadband speed and expand the deployment of broadband capabilities throughout the nation’s rural areas with mandatory build-out requirements for receipt of support. LICT is actively building and expanding broadband facilities.

CAPITAL EXPENDITURES – In the fourth quarter of 2022, capital expenditures from operations increased by $9.0 million to $17.4 million. Full year 2022 capital expenditures from operations increased by $17.1 million to $48.3 million versus $31.2 million in 2021. Our capital spending enables us to offer enhanced broadband speeds, increase the overall fiber route miles in our network and meet and exceed our A-CAM requirements.

SHARE REPURCHASES – During the twelve months ended December 31, 2022, the Company repurchased 530 shares (3.1% of shares outstanding) for $12.3 million, with an average price of $23,204 per share. On December 31, 2022, 17,341 shares were outstanding, with 795 shares still available for authorized repurchase with a target of 40% of our Net Income.

AUREON INVESTMENT – 2022 investment income includes a dividend of $0.5 million from a minority investment in Aureon versus $0.2 million in the prior year. We carry this investment at our historical cost of $3.0 million, however, LICT’s share of the book value of the investment is estimated to be closer to $9.0 million.

STRATEGIC INITIATIVES – Sound Broadband, LLC, a wireless company providing 5G wireless services within LICT’s footprint and beyond, was formed in the fourth quarter of 2022. LICT continues the process of finalizing the spinoff of our Michigan operation as well as evaluating acquisitions and other growth opportunities.

OPERATING STATISTICS/BROADBAND DEPLOYMENT – As of December 31, 2022, LICT owns and operates 6,703 miles of fiber optic cable, 11,258 miles of copper cable, 831 miles of coaxial cable and 85 towers. The Company’s broadband penetration in its franchised telephone service territories, based on its total Incumbent Local Exchange Carrier (“ILEC”) voice lines, was 98.6%, as compared to 93.3% at December 31, 2021. During 2022, the Company’s broadband lines grew by 4.6% to 46,000 units. This increase offsets our voice and video line losses for the year:

 

December 31,

December 31,

 

Percent

 

Increase

Increase

 

2022

2021

(Decrease)

(Decrease)

Broadband lines

45,966

43,939

2,027

4.6%

Voice Lines

 

 

 

 

ILEC

22,655

23,644

(989)

(4.2%)

CLEC

6,943

7,043

(100)

(1.4%)

Total

29,598

30,687

(1,089)

(3.5%)

Video Subscribers

3,670

4,117

(447)

(10.9%)

Revenue Generating Units

79,234

78,743

491

0.6%

 

This release contains certain forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation anticipated financial results, financing, capital expenditures and corporate transactions. It should be recognized that such information is based upon certain assumptions, projections, and forecasts, including without limitation, business conditions and financial markets, regulatory and other approvals, and the cautionary statements set forth in documents filed by LICT on its website, www.lictcorp.com. As a result, there can be no assurance that any possible transactions will be accomplished or be successful, or that financial targets will be met. Such forward-looking information is subject to uncertainties, risks and inaccuracies, which could be material.

LICT Corporation is a holding company with subsidiaries in broadband and other telecommunications services that actively seeks acquisitions, principally in its existing business areas.

LICT Corporation is listed on the OTC Pink® under the symbol LICT. For further information visit our website at http://www.lictcorp.com.

 

 

 

 

 

 

LICT CORPORATION

Exhibit A

Statements of Operations, Balance Sheet and EBITDA

 

Page 1 of 3

(In Thousands, Except Per Share Data)

 

STATEMENTS OF OPERATIONS

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2022

2021

 

2022

2021

 

 

Revenues

$33,131

$32,544

 

$131,293

$129,160

Cost and Expenses:

 

 

 

 

 

Cost of revenue, excluding depreciation

15,688

15,395

 

61,579

59,017

Selling, general and administration

3,019

3,153

 

12,154

12,302

Corporate Office Expenses

1,143

1,111

 

4,676

3,854

Charitable Contributions

910

922

 

1,051

1,105

Depreciation and amortization

5,380

4,640

 

20,034

18,851

Total Costs and Expenses

26,140

25,221

 

99,494

95,129

 

 

 

 

 

 

Operating profit

6,991

7,323

 

31,799

34,031

 

 

 

 

 

 

Other Income (Expense)

 

 

 

 

 

Investment income

204

12

 

1,224

803

Interest expense

(601)

(362)

 

(1,617)

(1,343)

Equity in earnings of affiliated companies

7

19

 

109

273

Other

(43)

28

 

(142)

14

 

(433)

(303)

 

(426)

(253)

 

 

 

 

 

 

Income Before Income Tax Provision

6,558

7,020

 

31,373

33,778

Provision for income taxes

(1,829)

(1,811)

 

(8,366)

(8,954)

 

Net Income

$4,729

$5,209

 

$23,007

$24,824

 

 

 

 

 

Capital Expenditures from Operations

$17,410

$8,429

 

$48,335

$31,192

Building Acquisition

$ -

$ -

 

$ 1,750

$ -

Total Capital Expenditures

$17,410

$8,429

 

$50,085

$31,192

 

 

 

 

 

 

 

 

 

Weighted Average Shares- Basic and Diluted

17,397

17,924

 

17,551

18,141

Actual shares outstanding at end of period

17,341

17,871

17,341

17,871

 

 

 

 

 

 

Earnings Per Share Basic and Dilutive

$272

$291

 

$1,311

$1,368

 

 

 

 

 

 

See EBITDA on page 3

 

 

 

 

 

LICT CORPORATION

 

Exhibit A

 

Statements of Operations, Balance Sheet and EBITDA (continued)

 

Page 2 of 3

 

(In Thousands)

 

 

 

 

December 31,

2022

December 31,

2021

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$27,257

$42,466

 

Accounts receivable, less allowances of $152 and $169, respectively

7,609

7,180

 

Material and supplies

11,307

8,212

 

Deposit

-

20,000

 

Prepaid expenses and other assets

4,490

4,068

 

Total current assets

50,663

81,926

 

 

 

 

 

Property, plant, and equipment

152,218

123,473

 

 

 

 

 

Goodwill

48,048

48,048

 

Other intangibles

29,712

16,392

 

Investments in and advances to affiliated entities

2,318

3,822

 

Other assets

13,307

10,476

 

Total assets

$296,266

$284,137

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

Trade accounts payable

$8,962

$4,388

 

Accrued interest payable

11

154

 

Accrued liabilities

10,666

7,720

 

Current maturities of long-term debt

372

25,577

 

Total current liabilities

20,011

37,839

 

 

 

 

 

Long-term debt

38,252

21,748

 

Deferred income taxes

28,148

25,025

 

Other liabilities

8,943

9,323

 

Total liabilities

95,354

93,935

 

 

 

 

 

Total shareholders' equity

200,912

190,202

 

Total liabilities and shareholders’ equity

$296,266

$284,137

LICT Corporation

Statements of Operations, Balance Sheet and EBITDA (continued)

Exhibit A

(In Thousands, Except Per Share Data)

Page 3 of 3

 

 

 

 

SELECTED BALANCE SHEET DATA

December 31,

December 31,

 

 

2022

2021

 

 

 

 

 

 

 

Cash and Cash Equivalents

$27,257

$42,466

 

 

 

 

 

 

 

Deposit with the FCC for Auction

-

20,000

 

 

 

 

 

 

 

Long-Term Debt (including current portion)

(38,624)

(47,325)

 

 

 

 

 

 

 

Net (Debt) Cash

($11,367)

$15,141

 

 

 

 

 

 

Shareholders' Equity

$200,912

$190,202

 

 

 

 

 

 

Shares Outstanding

17,341

17,871

 

 

 

 

 

 

EBITDA

 

EBITDA is an established measure of operating performance and liquidity that is commonly reported and widely used by analysts, investors, and other interested parties in the telecommunications industry because it eliminates many differences in financial, capitalization, and tax structures. We believe that EBITDA trends are a valuable indicator of whether our operations can produce sufficient operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.

 

EBITDA is calculated as Operating Profit plus corporate office expenses, depreciation and amortization expense and charitable contributions.

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2022

2021

2022

2021

EBITDA Reconciliation:

 

 

Operating Profit

$6,991

$7,323

 

$31,799

$34,031

 

Additions:

 

 

 

 

 

Corporate expenses

1,143

1,111

 

4,676

3,854

Charitable contributions

910

922

 

1,051

1,105

Depreciation and amortization

5,380

4,640

 

20,034

18,851

EBITDA from Operations

$14,424

$13,996

 

$57,560

57,841

 

Contacts

Mario J. Gabelli

Chairman and Chief Executive Officer



Stephen J. Moore

Vice President-Finance



914-921-8821

www.lictcorp.com

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Livermore.com & California Media Partners, LLC. All rights reserved.