Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - NTS, INC. | nts_8k.htm |
| EX-99.1 - EARNING RELEASE - NTS, INC. | nts_ex991.htm |
Exhibit 99.2
2Q FY2013
Financial Results
CONFERENCE 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.
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: 2Q13
4
• Continued steady revenue growth
– Fiber revenues grew 25% to $5.7 million
– Total revenues of $15.2 million
• Adjusted EBITDAS* grew 29.8% to $3.7 million
• Signed first customer in Abilene, TX
• 480 customers added
• Construction delays in Wichita Falls and Hammond
created backlog of 700 high margin business
customers
created backlog of 700 high margin business
customers
• Expect significant customer and fiber revenue
growth as installations are completed
growth as installations are completed
* Adjusted EBITDAS excludes $1.5 million in write offs and a significantly higher than usual bad debt expense. Please refer to
the 2Q13 press release for Adjusted EBITDAS Reconciliation
the 2Q13 press release for Adjusted EBITDAS Reconciliation
|
|
2013
|
2012
|
|
Revenues
Services on FTTP Network
Growth Rate
|
$ 5,653
25%
|
$ 4,513
|
|
Leased loop services &other
Growth Rate
|
$ 9,534
-10%
|
$ 10,571
|
|
Total Revenues
Growth Rate
|
$ 15,186
1%
|
$ 15,085
|
|
Expenses
Cost of Services
% of Sales
|
6,731
45%
|
6,820
45%
|
|
SG&A Expenses
% of Sales
|
6,401
42%
|
5,437
36%
|
|
Financing expense, net
|
1,661
|
1,119
|
|
Total Expenses
|
16,700
|
15,008
|
|
Net Income (loss)
|
(985)
|
73
|
|
Basic & diluted income (loss) per share
|
$ (0.02)
|
$ 0.00
|
|
Basic & diluted weighted averaged
number of shares
|
41,237,618
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41,186,596
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|
EBITDAS
|
$ 3,721
|
$ 2,866
|
|
% of sales
|
25%
|
19%
|
Income Statement
(in thousands, except per share data)
Quarter Ended June 30,
5
Balance Sheet Highlights
6
|
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As of 6/30/13
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As of 12/31/12
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Current Assets
|
|
|
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Cash
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$ 9,937
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$ 3,909
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|
Accounts receivable, net
|
4,532
|
5,157
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|
Prepaid expenses and other receivables
|
3,400
|
3,809
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|
19,009
|
13,912
|
|
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Fixed Assets, Net
|
98,295
|
89,468
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Total Assets
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$ 121,959
|
$ 108,483
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|
Current Liabilities
|
|
|
|
Short-term bank credit and current maturities of
notes payable |
3,861
|
2,542
|
|
Trade payables
|
12,345
|
8,499
|
|
Other liabilities and accrued expenses
|
4,644
|
5,069
|
|
Current maturities of bonds
|
3,753
|
3,627
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|
Total Current Liabilities
|
24,899
|
20,161
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|
Notes Payable to the US Department of Agriculture, Net of
Current Maturities |
41,310
|
35,520
|
|
Notes Payable, Net of Current Maturities
|
18,950
|
14,411
|
|
7,587
|
7,027
|
|
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Other Long-Term Liabilities
|
533
|
1,680
|
|
Total Liabilities
|
94,979
|
81,079
|
|
Total Stockholders’ Equity
|
26,980
|
27,404
|
(in thousands)
Organic FTTP Growth
FTTP % Overall Revenues
EBITDAS Margin
Fiber Metrics
As of June 30, 2013:
–Total Fiber Passings: 45,181
–Total Fiber Customers: 10,881
• Business Fiber Customers: 2,961
• Residential Fiber Customers: 7,920
–Monthly Fiber ARPU:
• Fiber ARPU for Business: $389
• Fiber ARPU for Residential: $100
–Churn:
•Fiber Business Churn: 0.63%
•Fiber Residential Churn: 1.46%
8
9
Connected First Fiber Customer in Abilene, TX
• Abilene build out is a “metro build” targeting more than 1,000
business customers modeled after the Company’s metro build in
Wichita Falls, Texas.
business customers modeled after the Company’s metro build in
Wichita Falls, Texas.
• NTS Fiber Network now in 18 communities in Texas
• Historically seen strong adoption rates in new markets for our high
speed triple play offering
speed 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
Wolfforth
11
Abilene
Tickfaw
Independence
Ponchatoula
Pine Grove
Natalbany
Franklinton
Montpelier
Amite
Hammond
COVERAGE MAP
● = 2013 FTTP buildout
12
Key Initiatives
13
• Convert current backlog to installed customers
• Execute Louisiana network buildout
• Continue to aggressively manage costs
– New corporate headquarters in downtown Lubbock
• Moving to company-owned building (Metro Tower)
• Smartbuild strategy succeeding; continue to evaluate
opportunities
opportunities
14
Q & A
Thank You