Lubbock, TX – May 14, 2013 - NTS, Inc. (NYSE MKT/TASE: NTS) (“NTS” or the “Company”) announces results for the three months ended March 31, 2013.
Revenues from the Company’s Fiber-To-The-Premises (“FTTP”) business grew 31% to $5.3 million in the first quarter ended March 31, 2013, as compared to $4.1 million for the same period in 2012. FTTP revenues represented 35.8% of consolidated revenues for the first quarter of 2013, as compared to 27.3% of consolidated revenues for the first quarter of 2012.
Consolidated revenues for the quarter ended March 31, 2013 were $14.9 million, essentially flat when compared to the quarter ended March 31, 2012.
The Company’s total number of FTTP customers as of March 31, 2013 was 10,403 compared to 8,053 FTTP customers as of March 31, 2012, representing an increase of 29%.The increase in the Company’s customer base is a result of its expansion into additional communities and increased penetration.
Average Revenue Per User for all of the Company’s fiber markets is approximately $390 per month for business customers and approximately $102 per month for residential customers.
The FTTP network build out is primarily financed by $99.9 million in funds from the Federal Broadband Stimulus Program, of which 45.9% is in the form of grants and 54.1% is in the form of low cost long-term loans.
New Market Progress
During the first quarter of 2013, NTS began connecting its first fiber customers in Iowa Park, Texas which marked the Company’s presence in 15 Texas communities. Additionally, NTS continued its sales and marketing efforts for its Wichita Falls, Texas metro build and saw solid demand from business customers in that market during the first quarter.
Following the close of the first quarter, NTS began signing up fiber customers in Hammond, Louisiana and continued construction on its FTTP network in southern Louisiana, where, in addition to Hammond, its fiber network will also include residential and business customers in the communities of Ponchatoula, Natalbany, Tickfaw, Independence and Amite, Louisiana, adding approximately 11,500 FTTP passings.
EBITDAS for the first quarter of 2013 was $3.4 million, a 24.3% increase over EBITDAS of $2.7 million in the same quarter last year. EBITDAS margin in the quarter ended March 31, 2013 was 22.5% compared to EBITDAS margin of 18.1% for the quarter ended March 31, 2012. This is mainly attributed to the increase in higher margin FTTP revenues.