Alaska Communications Systems Group Inc (ALSK) SEC Filing 10-K Annual report for the fiscal year ending Monday, December 31, 2018

Exhibit 99.1

Alaska Communications Reports Fourth Quarter and Year-end 2018 Results

ANCHORAGE, Alaska--(BUSINESS WIRE)--March 6, 2019--Alaska Communications Systems Group, Inc. (NASDAQ: ALSK) today reported financial results for the fourth quarter and full year ended December 31, 2018.

“Our 2018 results are robust with total revenue growth of 2.5% for full year 2018 and annual adjusted EBITDA growth of 4.9%. Free cash flow performance was strong at $7.2 million while our capital expenditures position us for continued growth in future years.

“These results reflect our continued performance in Business and Wholesale, driven by our growth engine of the larger Enterprise and Carrier customers. Our technology differentiation was further strengthened by investments in Fixed Wireless, satellite, and Software Defined Networking, along with continued investments in our fiber network particularly in support of 5G wireless backhaul.

“Attention to prudent cost management has been and will continue to be a focus reflecting our commitment to adjusted EBITDA and adjusted free cash flow improvements.

“With clear line of sight to continued growth in our Enterprise and Carrier customer segment, combined with the recent balance sheet refinancing work, we have conviction about high quality future operating results, while we continue to explore all strategic opportunities for shareholder value creation,” said Anand Vadapalli, president and CEO of Alaska Communications.

Revenue Highlights

• Total revenue:
  • Revenue grew to $58.7 million for the fourth quarter of 2018, compared to $54.9 in the fourth quarter of 2017. Annual revenue grew to $232.5 million for 2018, from $226.9 million in 2017.
  • Total broadband revenue was $31.5 million for the fourth quarter of 2018, compared to $28.4 million for the fourth quarter of 2017, and was $125.4 million for 2018, compared to $123.1 million for 2017.
• Business and wholesale:
  • Business and wholesale revenue was $37.0 million for the fourth quarter of 2018, compared to $33.1 million for the fourth quarter of 2017. 2018 revenue was $144.6 million, comprising 62.2 percent of total revenue, compared to $139.1 million for 2017, comprising 61.3 percent of total revenue.
  • Business and wholesale broadband revenue was $25.0 million for the fourth quarter of 2018 compared to $22.1 million for the fourth quarter of 2017, and was $99.3 million for 2018, compared to $97.6 million for 2017.
• Consumer:
  • Consumer revenue was $9.2 million for the fourth quarters of 2018 and 2017. 2018 revenue was $37.3 million, comprising 16.0 percent of total revenue, compared to $37.1 million for 2017, comprising 16.4 percent of total revenue.
  • Consumer broadband revenue was $6.4 million for the fourth quarter of 2018, compared to $6.2 million for the fourth quarter of 2017, and was $26.1 million for 2018, compared to $25.4 million for 2017.
• Regulatory:
  • Regulatory revenue was $12.5 million for the fourth quarter of 2018, compared to $12.6 million for the fourth quarter of 2017. 2018 revenue was $50.6 million, comprising 21.8 percent of total revenue, compared to $50.7 million for 2017, comprising 22.3 percent of total revenue.

Financial Metrics

• Net income for the fourth quarter of 2018 was $1.7 million, compared to net loss of $2.9 million in the fourth quarter of 2017. 2018 net income was $9.1 million, compared to net loss of $6.1 million for 2017.

• Net cash provided by operating activities for the fourth quarter of 2018 was $9.3 million, compared to $4.7 million in the fourth quarter of 2017. 2018 cash provided by operating activities was $56.2 million, compared to $30.4 million for 2017.
• Capital expenditures for the fourth quarter of 2018 were $12.5 million, compared to $8.9 million fourth quarter of 2017. 2018 capital expenditures were $38.0 million, compared to $32.9 million in 2017.