LICT Corporation Reports Results for the 3rd Quarter 2024
LICT reported strong Q3 2024 results with total revenues increasing 16.9% to $33.7 million. EBITDA grew 26% to $13.7 million, driven by Enhanced ACAM (E-ACAM) adoption and non-regulated business growth. Regulated revenues rose to $14.8 million, while non-regulated revenues increased 8% to $18.9 million. The company continues supporting Affordability Connect Program customers through January 2025. Earnings per share from continuing operations reached $228, up from $195 in Q3 2023. The company repurchased 134 shares for $1.8 million during Q3 2024.
LICT ha riportato forti risultati nel terzo trimestre del 2024, con un aumento del fatturato totale del 16,9% a $33,7 milioni. EBITDA è cresciuto del 26% a $13,7 milioni, grazie all'adozione dell'Enhanced ACAM (E-ACAM) e alla crescita del business non regolamentato. I ricavi regolamentati sono aumentati a $14,8 milioni, mentre i ricavi non regolamentati sono cresciuti dell'8% a $18,9 milioni. L'azienda continua a supportare i clienti del programma Affordability Connect fino a gennaio 2025. L'utile per azione dalle operazioni continuative ha raggiunto $228, in aumento rispetto ai $195 del terzo trimestre 2023. Durante il terzo trimestre 2024, l'azienda ha riacquistato 134 azioni per $1,8 milioni.
LICT informó resultados sólidos en el tercer trimestre de 2024, con un aumento del 16.9% en los ingresos totales, alcanzando $33.7 millones. EBITDA creció un 26% a $13.7 millones, impulsado por la adopción del Enhanced ACAM (E-ACAM) y el crecimiento del negocio no regulado. Los ingresos regulados aumentaron a $14.8 millones, mientras que los ingresos no regulados crecieron un 8% a $18.9 millones. La empresa sigue brindando apoyo a los clientes del programa Affordability Connect hasta enero de 2025. Las ganancias por acción de las operaciones continuas alcanzaron $228, frente a los $195 en el tercer trimestre de 2023. La empresa recompró 134 acciones por $1.8 millones durante el tercer trimestre de 2024.
LICT는 2024년 3분기 강력한 실적을 보고했으며 총 수익이 16.9% 증가하여 3,370만 달러에 이르렀습니다. EBITDA는 Enhanced ACAM (E-ACAM) 채택과 비규제 사업의 성장 덕분에 26% 증가하여 1,370만 달러에 달했습니다. 규제 수익은 1,480만 달러로 증가했으며, 비규제 수익은 8% 증가하여 1,890만 달러가 되었습니다. 회사는 2025년 1월까지 Affordability Connect 프로그램 고객을 지속적으로 지원하고 있습니다. 지속적인 운영에서 주당 순이익은 228달러로 2023년 3분기 195달러에서 증가했습니다. 2024년 3분기 동안 회사는 134주를 180만 달러에 재매입했습니다.
LICT a publié de solides résultats pour le troisième trimestre 2024, avec une augmentation des revenus totaux de 16,9 % pour atteindre 33,7 millions de dollars. EBITDA a augmenté de 26 % pour atteindre 13,7 millions de dollars, soutenu par l'adoption de l'Enhanced ACAM (E-ACAM) et la croissance des activités non réglementées. Les revenus réglementés ont atteint 14,8 millions de dollars, tandis que les revenus non réglementés ont augmenté de 8 % pour atteindre 18,9 millions de dollars. L'entreprise continue de soutenir les clients du programme Affordability Connect jusqu'en janvier 2025. Le bénéfice par action des opérations poursuivies a atteint 228 dollars, contre 195 dollars au troisième trimestre 2023. Au cours du troisième trimestre 2024, l'entreprise a racheté 134 actions pour 1,8 million de dollars.
LICT berichtete über starke Ergebnisse im dritten Quartal 2024, wobei der Gesamtumsatz um 16,9% auf 33,7 Millionen Dollar anstieg. EBITDA wuchs um 26% auf 13,7 Millionen Dollar, angetrieben durch die Einführung von Enhanced ACAM (E-ACAM) und das Wachstum des nicht regulierten Geschäfts. Die regulierten Einnahmen stiegen auf 14,8 Millionen Dollar, während die nicht regulierten Einnahmen um 8% auf 18,9 Millionen Dollar zunahmen. Das Unternehmen unterstützt weiterhin die Kunden des Affordability Connect Programms bis Januar 2025. Das Ergebnis je Aktie aus fortgeführten Aktivitäten erreichte 228 Dollar, gegenüber 195 Dollar im dritten Quartal 2023. Im dritten Quartal 2024 erwarb das Unternehmen 134 Aktien für 1,8 Millionen Dollar zurück.
- Revenue increased 16.9% YoY to $33.7 million
- EBITDA grew 26% to $13.7 million
- E-ACAM adoption increased federal USF revenues by $14 million annually
- EPS improved to $228 from $195 YoY
- Broadband lines increased 4% to 49,532
- Revenue Generating Units grew 1.7% to 76,102
- Voice lines decreased 3.2% to 23,081
- Interest expenses increased by $0.6 million
- Operating expenses increased, including higher labor and professional costs
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Increase In Revenues of
16.9% for the Third Quarter -
EBITDA Up
26% to from$13.7 million in prior year$10.8 million - LICT continues to assume costs for Affordability Connect Program (which was ended in May 2024) customers through January 2025.
- Approved Designated Charitable Contribution
2024-Unaudited Third Quarter Results
Total revenues in the third quarter of 2024 increased by
Regulated revenues were
Non-regulated revenues for the third quarter of 2024 increased
Total EBITDA was
Regulated EBITDA in the third quarter of 2024 was
Non-regulated EBITDA was unchanged at
OTHER INCOME/(EXPENSES) – Other expenses increased by
EARNINGS PER SHARE – Earnings per share from continuing operations for the third quarter of 2024 were
Shareholder Designated Charitable Contribution Program
LICT Corporation (OTC Pink: LICT) will continue its Shareholder Charitable Contribution program for all registered shareholders. Shareholders of record on November 15, 2024, will be eligible to designate a 501 (c) (3) charity to which a
We believe charitable giving is a cornerstone of society and an obligation for those with means to make a difference in the world. As an organization, LICT will have no control over the donations, but we are happy to make them on behalf of our shareholders.
Over the past 9 years, LICT has made more than
Share Repurchase Program
During the three months ended September 30, 2024, the Company repurchased 134 shares for
FCC Programs and Other Capital Expenditures
I. |
ENHANCED ALTERNATIVE CONNECT AMERICA COST MODEL (E-ACAM) PROGRAM: |
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Effective January 1, 2024, all of LICT’s Rural Local Exchange Carriers (RLECs) voluntarily elected the Federal Communications Commission’s (FCC) Enhanced ACAM program which provides funding for build-out by December 31, 2028 of at least 100/20 Mbps to almost 20,000 mandatory E-ACAM locations lacking 100/20 Mbps broadband service. The Company’s RLECs are aggressively designing, engineering, and constructing facilities to be in compliance with the FCC’s E-ACAM program. E-ACAM increased LICT’s federal Universal Service Fund (USF) revenues an incremental |
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II. |
LICT EXTENDED THE FCC’S AFFORDABLE CONNECTIVITY PROGRAM (ACP): |
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ACP was terminated in May 2024. LICT informed its ACP customers that the Company will continue an equivalent credit through January 31, 2025, at LICT’s cost. Eligible ACP customers received a continuation of their broadband credit of up to |
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III. |
SUPREME COURT ENDS THE CHEVRON DEFERENCE DOCTRINE: |
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On June 28, 2024, the |
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IV. |
PETITIONS TO SUPREME COURT TO REVIEW FIFTH CIRCUIT USF DECISION: |
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The Department of Justice, FCC, various industry associations and public interest groups filed petitions before the Supreme Court requesting it review the decision by the |
Strategic Initiatives
The spin-off of our
LICT’s acquisition of Manti Telephone Communications Company (MTCC), and AFConnect (AFI) is complete, the non-regulated facet of the Manti transaction closed on December 1, 2023. The regulated portion, Manti Telephone Company (MTC) transaction is still pending regulatory approval.
LICT’s sale of its remaining
FIXED WIRELESS/5G -Sound Broadband LLC, the wireless subsidiary of LICT Corporation, has successfully completed 5G deployments in its existing markets and expanded into new regions, including
In addition to expanding Fixed Wireless 5G services, Sound Broadband is growing its Private 5G portfolio to meet the unique needs of businesses, government, and other organizations seeking secure, high-performance wireless networks. To support both public and private 5G growth, the company is applying for federal funding, including the BEAD program, to extend coverage into more remote areas. Sound Broadband remains committed to bridging the digital divide and delivering next-generation connectivity across diverse sectors and underserved regions.
OPERATING STATISTICS/BROADBAND DEPLOYMENT - LICT owns and operates 6,728 miles of fiber optic cable, 9,040 miles of copper cable, 843 miles of coaxial cable and 100 towers.
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September 30, |
December 31, |
Increase |
Percent Increase |
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2024 |
2023 |
(Decrease) |
(Decrease) |
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Broadband lines |
49,532 |
47,635 |
1,897 |
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Voice Lines |
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ILEC |
16,912 |
17,549 |
(637) |
( |
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Out of franchise |
6,169 |
6,287 |
(118) |
( |
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Total |
23,081 |
23,836 |
(755) |
( |
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Video Subscribers |
3,489 |
3,341 |
148 |
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Revenue Generating Units |
76,102 |
74,812 |
1,290 |
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This release contains certain forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation anticipated financial results, financing, capital expenditures and corporate transactions. It should be recognized that such information is based upon certain assumptions, projections and forecasts, including without limitation, business conditions and financial markets, regulatory and other approvals, and the cautionary statements set forth in documents filed by LICT on its website, www.lictcorp.com. As a result, there can be no assurance that any possible transactions will be accomplished or be successful, or that financial targets will be met. Such forward-looking information is subject to uncertainties, risks and inaccuracies, which could be material.
LICT Corporation |
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Statements of Operations |
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(In Thousands, Except Per Share Data) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 (Unaudited) |
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2023 (Unaudited) |
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2024 (Unaudited) |
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2023 (Unaudited) |
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Operating Revenues |
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Operating Expenses: |
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|
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Cost of revenue |
|
17,318 |
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15,227 |
|
50,153 |
|
44,759 |
General and administrative costs at operations |
|
2,701 |
|
2,765 |
|
8,177 |
|
8,148 |
Corporate office expenses |
|
1,040 |
|
1,395 |
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3,478 |
|
3,626 |
Depreciation and amortization |
|
5,562 |
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4,591 |
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17,369 |
|
14,656 |
Total Operating Expenses |
|
26,621 |
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23,978 |
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79,177 |
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71,189 |
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Operating Income |
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7,066 |
|
4,836 |
|
21,693 |
|
15,719 |
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|
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Other Income (Expense) |
|
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|
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|
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Investment income |
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265 |
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143 |
|
1,473 |
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1,124 |
Interest expense |
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(1,177) |
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(629) |
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(3,243) |
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(1,894) |
Unrealized loss on investment |
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(151) |
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- |
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(788) |
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- |
Equity in earnings of affiliated companies |
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- |
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49 |
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225 |
|
74 |
Other |
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(863) |
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(134) |
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(828) |
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(245) |
Total Other Income (Expense) |
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(1,926) |
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(571) |
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(3,161) |
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(941) |
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Income from continuing operations |
|
5,140 |
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4,265 |
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18,532 |
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14,778 |
Provision for Income Taxes |
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(1,357) |
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(935) |
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(4,898) |
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(3,186) |
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Net Income from continuing operations |
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3,783 |
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3,330 |
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13,634 |
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11,592 |
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Income (Loss) from discontinued operations |
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- |
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(157) |
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- |
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2,270 |
Tax Provision for discontinued operations |
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- |
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34 |
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- |
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(489) |
Income (Loss) from discontinued operations, net of tax |
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- |
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(123) |
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- |
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1,781 |
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Net Income |
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Capital Expenditures |
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Basic & Diluted Weighted Average Shares |
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16,624 |
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17,109 |
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16,780 |
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17,213 |
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Actual shares outstanding at end of period |
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16,540 |
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17,069 |
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16,540 |
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17,069 |
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Earnings Per Share: |
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Income from continuing operations |
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Income (Loss) from discontinued operations |
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- |
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(7) |
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- |
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103 |
Basic & Diluted Earnings Per Share |
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LICT Corporation |
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Balance Sheet |
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(In Thousands, Except Per Share Data) |
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September 30, 2024 (Unaudited) |
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December 31, 2023 (Audited) |
ASSETS |
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Current assets: |
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Cash and cash equivalents |
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|
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Accounts receivable, less allowances of |
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10,943 |
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7,123 |
Note receivable from affiliate, including accrued interest |
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-- |
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15,345 |
Material and supplies |
14,049 |
16,825 |
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Prepaid expenses, and other current assets |
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4,041 |
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4,417 |
Total current assets |
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43,474 |
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55,255 |
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Property, plant, and equipment, net |
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174,583 |
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150,112 |
Goodwill |
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48,251 |
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48,251 |
Other intangibles |
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34,236 |
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34,590 |
Investments in Affiliated Companies |
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7,152 |
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7,396 |
Other assets |
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15,197 |
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11,436 |
Total assets |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Trade accounts payable |
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Accrued interest payable |
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66 |
|
272 |
Accrued liabilities |
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8,672 |
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7,696 |
Current maturities of long-term debt (a) |
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50,075 |
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3,876 |
Total current liabilities |
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66,366 |
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19,617 |
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Long-term debt |
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11,329 |
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49,576 |
Deferred income taxes |
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28,790 |
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28,898 |
Other liabilities |
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14,656 |
|
14,261 |
Total liabilities |
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121,141 |
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112,352 |
Total shareholders’ equity |
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201,752 |
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194,688 |
Total liabilities and shareholders’ equity |
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Note (a): See ‘Subsequent Events’ for further information. |
EBITDA
EBITDA is an established measure of operating performance and liquidity that is commonly reported and widely used by analysts, investors, and other interested parties in the telecommunications industry because it eliminates many differences in financial, capitalization, and tax structures. We believe that EBITDA trends are a valuable indicator of whether our operations are able to produce sufficient operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.
EBITDA is calculated as Operating Profit from Continuing Operations plus depreciation and amortization expense and corporate expenses.
Three Months Ended |
Nine Months Ended |
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September 30, |
September 30, |
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2024 |
2023 |
2024 |
2023 |
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EBITDA Reconciliation: |
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Operating Profit from Continuing Operations |
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Additions: |
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Corporate expenses |
1,040 |
1,395 |
3,478 |
3,626 |
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Depreciation and amortization |
5,562 |
4,591 |
17,369 |
14,656 |
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EBITDA from Operations |
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Sources and Uses of Cash:
(Unaudited) |
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September 30, 2024 |
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Three Months Ended |
Nine Months Ended |
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Net Income |
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Adjustments to reconcile net income to net cash provided by operating activities |
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Cash Activity (Net Use of Cash) | 369 |
(3,032) |
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Non-cash Activity (Depreciation, amortization & other activity) | 6,653 |
19,321 |
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Total Net Cash provided by Operating Activities | 10,805 |
29,923 |
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Cash Flows from Investing Activities |
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Capital Expenditures | (15,375) |
(43,490) |
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Other Investing Activities | (21) |
81 |
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Total Net Cash Used in Investing Activities | (15,396) |
(43,409) |
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Cash Flows from Financing Activities |
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Borrowing from Line of credit, net | (8,497) |
8,003 |
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Proceeds from repayment of affiliate notes receivable | 15,000 |
15,000 |
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Purchase of treasury stock | (1,835) |
(6,570) |
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Payments to reduce long-term debt | (13) |
(51) |
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Total Net Cash Provided by Financing Activities | 4,655 |
16,382 |
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Net Increase in Cash and Cash Equivalents | 64 |
2,896 |
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Cash & Cash Equivalents at the beginning of the period | 14,377 |
11,545 |
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Cash & Cash Equivalents at the end of the period |
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CAPITAL EXPENDITURES – For the third quarter of 2024, capital expenditures were
LIQUIDITY – For the period ended September 30, 2024, the funds drawn on the existing
SUBSEQUENT EVENTS – On October 23, 2024 the company closed a new
View source version on businesswire.com: https://www.businesswire.com/news/home/20241111225738/en/
401 Theodore Fremd Avenue
914-921-8821
www.lictcorp.com
Stephen J.
Vice President- Finance
Source: LICT Corporation
FAQ
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