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Alaska Communications Reports Third Quarter 2019 Results
- Revenue Exceeds $59 Million, Led by 7.8% Broadband Growth
- Bill Bishop Appointed Permanent President & CEO, and Laurie Butcher Named CFO
- Management Reaffirms 2019 Guidance
ANCHORAGE, Alaska--(BUSINESS WIRE)--November 6, 2019--Alaska Communications Systems Group, Inc. (NASDAQ: ALSK) today reported financial results for the third quarter of 2019.
“We are committed to superior service and network solutions that our customers require in Alaska and the markets we serve in the Lower 48. By emphasizing our customer centric approach, we expect to deliver sustainable long-term growth for our shareholders. For the third quarter, we are pleased to report that we grew total broadband revenue by 7.8% over last year. In addition, we grew net income 11.3% over last year and increased our Adjusted EBITDA margin to 26.7% for the quarter,” said Bill Bishop, President & CEO.
“We are making progress on our deployment of a 5G fiber backhaul network and are on track with provisioning the first route for our 100% prefunded project for one of our strategic customers. In mass market, we grew on-base multi-dwelling units (MDUs) by an additional 2,000 units and added our largest non-military MDU complex to date. We are very excited about our expansion projects and technical capabilities to stay on the forefront of requirements for our advanced products including, our broadband satellite offering, IP voice, and robust data and FiWi networks,” continued Mr. Bishop.
Third Quarter 2019 Compared to Third Quarter 2018
- Total revenue was $59.1 million, compared to $58.2 million, up 1.5%.
- Business and wholesale revenue was $38.7 million, compared to $36.4 million, up 6.3%.
- Consumer revenue was steady at $9.3 million for both periods.
- Regulatory revenue was $11.1 million, compared to $12.6 million, a decrease of 11.9%, as expected due to the restructuring of the Alaska Universal Service program.
- Operating expenses were $53.4 million, compared to $52.5 million.
- Operating income was $5.8 million for both periods.
- Net income was $2.0 million, compared to $1.8 million.
- Capital expenditures were $11.1 million, compared to $8.4 million, which includes planned investments to continue our 5G wireless backhaul project.
- Adjusted EBITDA was $15.8 million, compared to $14.8 million.
- Adjusted free cash flow was $6.3 million, compared to $4.3 million.
- Cash was $26.7 million at September 30, 2019, compared to $15.0 million at December 31, 2018.
- Net debt was $156.6 million at September 30, 2019, compared to $161.2 million at December 31, 2018.
Reconciliations of non-GAAP financial measures to GAAP financial measures can be found in tables at the end of this release and on the Company’s website at http://www.alsk.com in the investment data section.
“As expected, our strong sales funnel translated into significant revenue growth for the quarter in key areas, offsetting the anticipated decline in regulatory revenue. We are committed to maintaining tight financial controls, also contributing to increases in both Adjusted EBITDA and Adjusted Free Cash Flow. In the quarter, we completed a modest stock repurchase of one million shares at an average price of $1.81. Additionally, the Board determined that it was reasonable to discontinue the Section 382 tax preservation plan on October 18, 2019. We will continue to align with our shareholders and consider ways to pursue actions that return capital to shareholders, while staying committed to investing in high ROI projects,” says Laurie Butcher, Chief Financial Officer.
The following information was filed by Alaska Communications Systems Group Inc (ALSK) on Wednesday, November 6, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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