Attached files
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| 8-K - FORM 8-K - Enventis Corp | form8k.htm |
Exhibit 99.1
HickoryTech Investor Call
HickoryTech to Acquire IdeaOne Telecom
December 6, 2011
NASDAQ: HTCO
“Safe Harbor” Statement
Information set forth in this presentation contains financial estimates
and other forward-looking statements that are subject to risks and
uncertainties; therefore, actual results might differ materially from such
statements, whether as a result of new information, future events or
otherwise. You are cautioned not to place undue reliance on these
forward-looking statements. A discussion of factors that may effect
future results is contained in HickoryTech’s filings with the Securities
and Exchange Commission. HickoryTech disclaims any obligation to
update and revise statements contained in this presentation based on
new information or otherwise. This presentation also contains certain
non-GAAP financial measures. Reconciliations of these non-GAAP
measures to the most directly comparable GAAP measures are
available in our presentation.
Transaction Summary
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Transaction Price
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$28 million, cash transaction with routine
adjustments for capital expenditures and working capital adjustments |
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Financing Structure
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Use existing liquidity through cash reserves
and term debt under existing credit facility |
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Closing Conditions
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Regulatory approvals from State (North
Dakota and Minnesota) and Federal (FCC) levels |
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Anticipated Closing Date
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End of First Quarter 2012
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Approximate Transaction
Multiples |
2.3x estimated 2011 IdeaOne Revenue
5.8x estimated 2011 IdeaOne EBITDA |
Transaction Highlights
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Immediate access to
Fargo market |
Gives company immediate access to serve Fargo area
customers by connecting HickoryTech’s regional fiber network to a metro fiber network |
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Expands Fiber
Network |
Adds 225 metro route fiber miles to company’s existing
3,250 fiber route mile regional network |
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Business and
Broadband Growth |
Further expands strategic product lines and company’s
focus on growing its business and broadband services |
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Increases
Diversification |
IdeaOne recorded 2010 revenue of $11.1 million,
85% of which was business services 2011 revenue estimated to increase 10-11% from 2010 |
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Increases Customer
Base |
Adds more than 3,500 customers
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Accretive on a Cash
Flow basis |
Expected to be accretive on a free cash flow basis
-expected EBITDA margin of 40% in 2011
-expected CAPEX of $3.2 million in 2011
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Fargo Network Expansion
Immediate expansion in Fargo market
- 225 fiber route miles
- 650 on-net fiber buildings
- 10GB fiber rings
- Ethernet capabilities
- Colocation services
- Soft switching infrastructure
Market Information
• Fargo is largest community in North Dakota
• Moorhead, Minn. borders Fargo as a sister city
• Population: 208,800 residents
• Fargo ranks highest in metro areas in vitality; one of the lowest
unemployment rates in nation
unemployment rates in nation
• Major Healthcare, Education, Technology and Manufacturing
Businesses
Businesses
• Ranked #1 by Milken Institute, Best Performing Cities Index, Oct 2010
• Ranked #8 Best Cities for job growth, small sized cities,
NewGeography.com
NewGeography.com
• Ranked #8 in Forbes Best Places for Business and Careers, April 2010
Source: Greater Fargo-Moorhead Economic Development Corporation
Accelerates Strategic Plan
Acquisition accelerates HickoryTech Strategic Plan
Q & A
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phone in order to ask a
question.
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question.
Appendix
Reconciliation of Non-GAAP Measures: IdeaOne Telecom