Attached files
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| 8-K - FORM 8-K - Enventis Corp | form8k.htm |
Exhibit 99.1
First Quarter 2012
Earnings Conference Call
May 1, 2012
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.
Q1 2012 Highlights
First Quarter 2012 compared to First Quarter 2011
•Revenue totaled $46.9 M, +22%
– Equipment Segment +67%
– Fiber and Data revenue +22%
– Telecom revenue -6%
•Operating income totaled $5.3 M, +13%
•Net income totaled $2.3 M, +8%
•EPS was $0.17 per share, +6%
•Closed on IdeaOne Acquisition March 1, 2012
Consolidated Revenue
Q1-12 compared to Q1-11
• Revenue +22%
• Equipment revenue +67%
• Fiber and Data revenue +22%
• Telecom revenue -6%
($ in millions)
76% of First Quarter 2012 revenue is from Business & Broadband Services
Revenue Diversification
• Q1-12 included
equipment sales of
$15.3 M
equipment sales of
$15.3 M
• Majority of revenue,
67% is recurring
67% is recurring
Earnings and Income
• Operating Income increased 13%
from Q1-11
from Q1-11
Diluted EPS
($ in millions)
Operating Income
• EPS increased 6% from Q1-11
Business Segments
Q1-12 compared to Q1-11
• Revenue up 22%
• Strong data services sales
• Includes one month of IdeaOne
operations
operations
($ in millions)
before intersegment eliminations
Equipment Revenue
Fiber and Data Revenue
Q1-12 compared to Q1-11
• Equipment hardware sales +87%
• Equipment support services down 5%
Telecom Segment
Q1-12 compared to Q1-11
•Telecom revenue down 6%
•Broadband revenue flat
•Network Access revenue down 16% due to:
-Anticipated declines in access lines, minute-of-
use
use
-Expiration of interstate infrastructure support
reimbursements
reimbursements
-A one-time refund payment of interstate support
fees and the initial impacts of industry-wide
access reform regulation
fees and the initial impacts of industry-wide
access reform regulation
•Bill Processing revenue +64%
Telecom Revenue
($ in millions)
before intersegment
eliminations
eliminations
Debt Balance
($ in millions)
Net Debt Balance
Cash on hand
Fiber Network Expansion
Greater Minnesota Broadband
Collaborative Project
•Phase 1 - fiber network from
St. Paul to Duluth, Minn. / Superior, Wisc. -
99% complete
St. Paul to Duluth, Minn. / Superior, Wisc. -
99% complete
•Phase 2 will extend fiber from Brainerd,
Minn. to Moorhead, Minn.
Construction began in spring 2012
Minn. to Moorhead, Minn.
Construction began in spring 2012
•Project will be completed by Aug. 2013
2012 Fiscal Outlook
Outlook provided in Q4 earnings release on March 6, 2012.
Key Strategic Initiatives
Strategic Growth through organic and external growth
Q1-2012: Solid Start to Year
• Strong Financial Performance -
Fiber & Data revenue, +22%
Equipment revenue, +67%
Fiber & Data revenue, +22%
Equipment revenue, +67%
• Continued progress with Greater
Minn. Broadband Collaborative
Project - Phase 1 of project 99%
complete, Phase 2 construction in
progress
Minn. Broadband Collaborative
Project - Phase 1 of project 99%
complete, Phase 2 construction in
progress
• Strong Balance Sheet - solid free
cash flow, net debt of $121 million
cash flow, net debt of $121 million
Grew business
revenues and
earnings
revenues and
earnings
Fiber network
expansion, last-
mile fiber builds
expansion, last-
mile fiber builds
Completed
IdeaOne
Acquisition
IdeaOne
Acquisition
HickoryTech Strengths
Diverse revenue streams / markets, emerging
growth through business revenue stream and fiber
network expansion
growth through business revenue stream and fiber
network expansion
More than 60 years of dividend return, yield 5-6%
Increased dividend in 2011 and 2010
Experienced company with 114-year track record
of financial stability
of financial stability
Strong cash flow, strong balance sheet,
high level of recurring revenue
high level of recurring revenue
Focused on increasing the value of HickoryTech by
growing EBITDA, strategic services, managing debt
growing EBITDA, strategic services, managing debt
Appendix
Reconciliation of Non-GAAP Measures
|
1 EBITDA, a non-GAAP financial measure, is as defined in our credit agreement
|
Appendix
Reconciliation of Non-GAAP Measures
(Dollars in thousands)
Appendix
Reconciliation of Non-GAAP Measures