Attached files
| file | filename |
|---|---|
| EX-99.1 - PRESS RELEASE - NTS, INC. | nts_ex991.htm |
| 8-K - CURRENT REPORT - NTS, INC. | nts_8k.htm |
EXHIBIT 99.2
1Q FY2013
Financial Results
CONFERENCE
CALL
CALL
Presenters
2
• Guy Nissenson, Chairman, President & CEO
• Niv Krikov, CFO
Safe Harbor Statement
This presentation may contain forward-looking statements. The words or phrases "would be", "will allow", "should“, "intends to",
"will likely result", "are expected to", "will continue", "is anticipated", "estimate", "plan", "project", or similar expressions are
intended to identify "forward-looking statements". Actual results could differ materially from those projected in the forward-looking
statements as a result of a number of risks and uncertainties. These risks and uncertainties include issues related to the ability to:
obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new
agreements; issues related to rapidly changing technology and evolving standards in the industries in which the Company and its
subsidiaries operate; the Company’s ability to compete effectively and adjust to rapidly changing market dynamics; the unpredictable
nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and/or registration
statement. In addition, these and other factors may cause financials results to fluctuate from one financial quarter to another.
Statements made herein are as of the date of this presentation and should not be relied upon as of any subsequent date. The
Company cautions not to place undue reliance on such statements. Unless otherwise required by applicable law, we do not
undertake, and we specifically disclaim any obligation, to update any forward-looking statements to reflect occurrences,
developments, unanticipated events or circumstances after the date of such statement. You should carefully review the risks and
uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange
Commission.
"will likely result", "are expected to", "will continue", "is anticipated", "estimate", "plan", "project", or similar expressions are
intended to identify "forward-looking statements". Actual results could differ materially from those projected in the forward-looking
statements as a result of a number of risks and uncertainties. These risks and uncertainties include issues related to the ability to:
obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new
agreements; issues related to rapidly changing technology and evolving standards in the industries in which the Company and its
subsidiaries operate; the Company’s ability to compete effectively and adjust to rapidly changing market dynamics; the unpredictable
nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and/or registration
statement. In addition, these and other factors may cause financials results to fluctuate from one financial quarter to another.
Statements made herein are as of the date of this presentation and should not be relied upon as of any subsequent date. The
Company cautions not to place undue reliance on such statements. Unless otherwise required by applicable law, we do not
undertake, and we specifically disclaim any obligation, to update any forward-looking statements to reflect occurrences,
developments, unanticipated events or circumstances after the date of such statement. You should carefully review the risks and
uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange
Commission.
3
Recent Progress: 1Q13
4
• Continued steady revenue growth
– Fiber revenues grew 31.3% to $5.3
million
million
– Total revenues were relatively flat at
$14.9 million
$14.9 million
• EBITDAS grew 24.3% to $3.4 million
• 1Q13: Signed first customer in
Hammond, LA
Hammond, LA
• 943 customers added in 1Q13
|
|
2013
|
2012
|
|
Revenues
Services on FTTP Network
Growth Rate
|
$ 5,346
31.3%
|
$ 4,073
|
|
Leased loop services &other
Growth Rate
|
$ 9,590
-11.6%
|
$ 10,851
|
|
Total Revenues
Growth Rate
|
$ 14,936
--
|
$ 14,923
|
|
Expenses
Cost of Services
% of Sales
|
6,640
44.5%
|
7,123
47.7%
|
|
SG&A Expenses
% of Sales
|
4,987
33.4%
|
5,137
34.4%
|
|
Financing expense, net
|
1,202
|
1,442
|
|
Total Expenses
% of Sales
|
14,704
98.4%
|
15,434
103.4%
|
|
Net Income (loss)
|
187
|
(339)
|
|
Basic & diluted income (loss) per share
|
$ 0.00
|
$ (0.01)
|
|
Basic & diluted weighted averaged
number of shares
|
41,186,596
|
41,186,596
|
|
EBITDAS
|
$ 3,362
|
$ 2,705
|
|
% of sales
|
22.5%
|
18.1%
|
Income Statement
(in thousands, except per share data)
Quarter Ended March 31,
5
Balance Sheet Highlights
6
|
|
As of 3/31/13
|
As of 12/31/12
|
|
Current Assets
|
|
|
|
Cash
|
$ 6,873
|
$ 3,909
|
|
Accounts receivable, net
|
5,438
|
5,157
|
|
Prepaid expenses and other receivables
|
3,495
|
3,809
|
|
Total Current Assets
|
16,850
|
13,912
|
|
Fixed Assets, Net
|
94,297
|
89,468
|
|
Total Assets
|
$ 117,743
|
$ 108,483
|
|
Current Liabilities
|
|
|
|
Short-term bank credit and current
maturities of notes payable |
3,001
|
2,542
|
|
Trade payables
|
13,016
|
8,499
|
|
Other liabilities and accrued expenses
|
4,779
|
5,069
|
|
Current maturities of bonds
|
3,907
|
3,627
|
|
Total Current Liabilities
|
25,077
|
20,161
|
|
Notes Payable to the US Department of Agriculture,
Net of Current Maturities |
39,252
|
35,520
|
|
Notes Payable, Net of Current Maturities
|
15,614
|
14,411
|
|
Bonds Payable, Net of Current Maturities
|
7,277
|
7,027
|
|
Other Long-Term Liabilities
|
649
|
1,680
|
|
Total Liabilities
|
90,099
|
81,079
|
|
Total Stockholders’ Equity
|
27,644
|
27,404
|
(in thousands)
Organic FTTP Growth
Fiber Metrics
As of March 31, 2013:
–Total Fiber Passings: 45,179
–Total Fiber Customers: 10,403
• Business Fiber Customers: 2,717
• Residential Fiber Customers: 7,686
–Fiber ARPU: $177
• Fiber ARPU for Business: $390
• Fiber ARPU for Residential: $102
–Churn:
• Fiber Avg. Churn: 0.9%
– Fiber Business Churn: 0.4%
– Fiber Residential Churn: 1.0%
8
9
Connected First Fiber Customer in Louisiana
Connected first FTTP customer in Hammond, Louisiana
•In April, we connected our first customer in Hammond, Louisiana
•When completed, the NTS fiber network in Louisiana is expected to be
approximately 11,500 passings, bringing the Company’s total FTTP passings
to more than 50,000
approximately 11,500 passings, bringing the Company’s total FTTP passings
to more than 50,000
•Historically seen strong adoption rates in new markets for our high speed
triple play offering
triple play offering
COVERAGE MAP
10
COVERAGE MAP
Plainview
Iowa Park
Littlefield
Levelland
Smyer
Burkburnett
Lamesa
Ropesville
Wilson
Brownfield
Meadow
Hale Center
Abernathy
Lubbock
New Deal
Whitharral
Wolffort
h
h
11
Tickfaw
Independence
Ponchatoula
Pine Grove
Natalbany
Franklinton
Montpelier
Amite
Hammond
COVERAGE MAP
● = Pre-PRIDE FTTP buildout
○ = 2011 FTTP buildout
● = 2012 FTTP buildout
● = 2013 FTTP buildout
● = Smart Build network
12
Macro Trends in Our Favor and
Strategy Going Forward
Strategy Going Forward
13
Macro Trends:
•Secondary market broadband is a long-term growing opportunity
•Increasing need for bandwidth
•Growing shift to Internet TV
Strategy:
•Drive FTTP growth
•Convert passings to customers to drive high margin FTTP growth
•Selectively evaluate “smart builds”
•Continue to aggressively manage costs
14
Q & A
Thank You