Citizens Communications Company and Subsidiaries
Consolidated Financial Data
(unaudited)
<TABLE>
<CAPTION>
For the quarter ended For the nine months ended
September 30, September 30,
------------------- -----------------------
% %
(Amounts in thousands - except per-share amounts) 2000 1999 Change 2000 1999 Change
-------------------------- ------------------------------
Income Statement Data
Continuing operations (1)
<S> <C> <C> <C> <C> <C> <C>
Revenue $ 389,941 $337,091 16% $ 1,150,140 $1,038,284 11%
Revenue-Universal service fund settlement - - - - 10,414 -
Network access expense 25,130 20,366 23% 81,926 84,945 -4%
Cost of services (gas purchased) 48,182 31,152 55% 148,238 116,706 27%
Depreciation and amortization 89,130 69,715 28% 258,677 202,265 28%
Other operating expenses 180,203 197,315 -9% 543,102 580,006 -6%
Acquisition assimilation expenses 12,539 - - 24,130 - -
Operating income 34,757 18,543 87% 94,067 64,776 45%
Investment and other income, net 5,435 9,703 -44% 15,086 21,517 -30%
Minority interest - 5,301 -100% 12,222 16,987 -28%
Interest expense 45,025 27,319 65% 116,288 74,560 56%
Gain on sale of investments, net of tax (2) - - - - 42,895 n/a
Income tax expense (benefit) (1,170) 1,041 -212% 2,298 6,133 n/a
Convertible preferred dividends 1,553 1,553 - 4,657 4,657 -
Income (loss) from continuing operations (5,216) 3,634 n/a (1,868) 60,825 n/a
Income (loss) from continuing operations excluding
gain on sale of investments (5,216) 3,634 n/a (1,868) 17,930 n/a
Income from discontinued operations, net of tax 6,683 8,272 -19% 13,672 13,459 2%
Net income 1,467 11,906 -88% 11,804 74,284 -84%
Net income excluding gain on sale of investments 1,467 11,906 -88% 11,804 31,389 -62%
EBITDA and Capital Expenditure Data(3)
EBITDA from continuing operations $ 123,887 $ 88,258 40% $ 352,744 $ 267,041 32%
EBITDA from discontinued operations 28,837 29,960 -4% 74,691 71,045 5%
Total Company EBITDA 152,724 118,218 29% 427,435 338,086 26%
EBITDA from continuing operations before acquisition
assimi1ation expenses 136,426 88,258 55% 376,874 267,041 41%
Capital expenditures from continuing operations 104,469 95,960 9% 442,813 351,635 26%
Capital expenditures from assets held for sale 12,281 13,684 -10% 35,211 39,964 -12%
Capital expenditures from discontinued operations 42,035 32,225 30% 93,336 43,001 117%
Total Company capital expenditures 158,785 141,869 12% 571,360 434,600 31%
Balance Sheet Data
Cash and investments $ 418,075 $ 577,368 -28%
Total assets 6,420,053 5,600,258 15%
Net plant (continuing operations) 3,255,120 2,868,608 13%
Long-term debt (continuing operations) 2,925,680 2,080,050 41%
Equity (4) 2,050,354 2,064,464 -1%
Shares of common stock outstanding 264,893 260,820 2%
Weighted average shares outstanding 264,749 260,607 2% 263,725 260,118 1%
Per-Share Data (5)
Basic net income per share of common stock $ 0.01 $ 0.05 -80% $ 0.04 $ 0.29 -86%
Basic net income per share of common stock excluding
gain on sale of investments 0.01 0.05 -80% 0.04 0.12 -67%
EBITDA per share from continuing operations 0.47 0.34 38% 1.34 1.30 30%
EBITDA per share from discontinued operations 0.11 0.11 - 0.28 0.27 4%
Total Company EBITDA per share 0.58 0.45 29% 1.62 1.30 25%
Book value per share 7.01 7.16 -2%
Other Financial Data
Long-term debt to long-term debt and equity 59% 50%
Common equity market capitalization (in billions) $ 3.54 $ 2.95
Equity market capitalization (in billions) (4) $ 3.80 $ 3.15
Market capitalization (in billions) (6) $ 6.33 $ 5.23
</TABLE>
(1) The Company's Telecommunications, Electric Lightwave, Inc. (ELI), our
Competitive Local Exchange Carrier (CLEC) and the company's natural gas
businesses. The Company still intends to sell the natural gas segment and
is continuing to actively pursue a buyer for those gas operations for which
we do not yet have signed agreements. The Company is reporting its electric
and water/wastewater businesses as discontinued operations. Continuing
operations reflect the elimination of intercompany transactions (see
segment note in the SEC Form 10-Q).
(2) Represents a gain of $69.5 million net of $26.6 million of income taxes on
the sale of Centennial Cellular stock.
(3) Operating income plus depreciation and amortization.
(4) Includes convertible preferred securities.
(5) Calculated based on weighted average shares outstanding.
(6) Equity market capitalization plus long-term debt.
<PAGE>
Citizens Communications Company and Subsidiaries
Financial and Operating Data by Service
<TABLE>
<CAPTION>
For the quarter ended For the nine months ended
September 30, September 30,
------------------------------ -----------------------------------
% %
(Dollars in thousands, except operating data) 2000 1999 Change 2000 1999 Change
------------------------------ -----------------------------------
Telecommunications
Select Income Statement Data
Revenue
<S> <C> <C> <C> <C> <C> <C>
Network access services $ 129,584 $ 123,939 5% $ 375,994 $ 370,600 1%
Network access services - USF settlement - - - - 10,414 -
Local network services 80,579 69,046 17% 224,284 205,735 9%
Long distance and data services 20,481 17,705 16% 58,534 59,096 -1%
Directory services 8,016 7,058 14% 22,636 21,017 8%
Other 18,003 15,964 13% 51,492 45,725 13%
Eliminations (1) (9,896) (10,050) n/a (32,465) (33,072) n/a
Total revenue 246,767 223,662 10% 700,475 679,515 3%
Network access expense 17,973 16,444 9% 59,676 56,587 5%
Depreciation and amortization 65,858 54,821 20% 195,629 161,325 21%
Other operating expenses 115,187 123,093 -6% 337,043 379,396 -11%
Acquisition assimilation expenses (2) 12,539 - - 24,130 - -
Eliminations (1) (9,896) (10,050) n/a (32,465) (33,072) n/a
Total expense 201,661 184,308 9% 584,013 564,236 4%
Operating income 45,106 39,354 15% 116,462 115,279 1%
EBITDA and Capital Expenditure Data
EBITDA (3) $ 110,964 $ 94,175 18% $ 312,091 $ 276,604 13%
EBITDA margin (4) 45% 42% 7% 45% 41% 10%
EBITDA before acquisition assimilation expenses 123,503 94,175 31% 336,221 276,604 22%
EBITDA margin before acquisition assimilation expenses 50% 42% 19% 48% 41% 17%
Capital expenditures 79,172 65,655 21% 250,016 156,264 60%
Balance Sheet Data
Total assets $ 3,038,634 $ 2,365,030 28%
Net plant 2,339,053 2,120,423 10%
Operating Data
Access lines 1,223,876 983,222 24%
Revenue per access line $ 202 $ 227 -11% $ 572 $ 691 -17%
Switched access minutes of use (in millions) 1,454 1,335 9% 4,157 3,852 8%
Employees 4,193 3,629 16%
Citizens' long distance minutes of use (in millions) 148 142 4% 432 435 -1%
Citizens' long distance in-territory customer market share 16% 17%
</TABLE>
(1) Eliminations represent network access revenue and network access expense
between the Company's local exchange operations and long-distance
operations.
(2) Represents expenses associated with the pending acquisition of
approximately 2 million telephone access lines.
(3) Operating income plus depreciation and amortization.
(4) EBITDA divided by total revenue.
<PAGE>
Citizens Communications Company and Subsidiaries
Financial and Operating Data by Service
<TABLE>
<CAPTION>
For the quarter ended For the nine months ended
September 30, September 30,
-------------------------- -----------------------------
% %
(Dollars in thousands, except operating data) 2000 1999 Change 2000 1999 Change
------------------------------- -------------------------------
Electric Lightwave, Inc.
Select Income Statement Data
Revenue
<S> <C> <C> <C> <C> <C> <C>
Network services $ 21,627 $ 14,024 54% $ 54,804 $ 37,431 46%
Local telephone services 25,187 22,313 13% 75,412 55,221 37%
Long distance services 3,728 4,812 -23% 12,590 22,587 -44%
Data services 13,068 7,453 75% 38,202 17,674 116%
Total revenue 63,610 48,602 31% 181,008 132,913 36%
Network access expense 17,821 14,719 21% 56,811 63,645 -11%
Gross margin 45,789 33,883 35% 124,197 69,268 79%
Depreciation and amortization 16,306 9,807 66% 43,782 24,951 75%
Other operating expenses 41,013 42,749 -4% 127,521 117,630 8%
Total expense 75,140 67,275 12% 228,114 206,226 11%
Operating loss (11,530) (18,673) n/a (47,106) (73,313) n/a
EBITDA and Capital Expenditure Data
EBITDA (1) $ 4,776 $ (8,866) n/a $ (3,324) $ (48,362) n/a
Capital expenditures (2) 25,297 30,305 -17% 192,797 195,371 -1%
Balance Sheet Data
Total assets $ 906,280 $ 726,982 25%
Gross plant 1,070,995 831,682 29%
Operating Data
Access Line Equivalents 203,911 142,433 43%
Route miles 5,921 4,047 46%
Fiber miles 297,208 214,656 38%
Customers 2,915 2,102 39%
Buildings connected 850 808 5%
Employees 1,156 1,172 -1%
Revenue per employee $ 55,026 $ 41,469 33% $ 156,581 $ 113,407 38%
ELI public enterprise value (3) $ 1,292,440 $ 1,247,765 4%
</TABLE>
(1) Operating income plus depreciation and amortization.
(2) Includes capitalized leases.
(3) Common equity market capitalization plus net debt.
<PAGE>
Citizens Communications Company and Subsidiaries
Financial and Operating Data by Service
<TABLE>
<CAPTION>
For the quarter ended For the nine months ended
September 30, September 30,
------------------------- --------------------------
% %
(Dollars in thousands, except operating data 2000 1999 Change 2000 1999 Change
------------------------------ ---------------------------------
Gas Sector
Select Income Statement Data
Revenue
<S> <C> <C> <C> <C> <C> <C>
Residential distribution $ 28,112 $ 23,293 21% $ 117,534 $ 104,431 13%
Commercial distribution 26,897 21,582 25% 94,080 74,818 26%
Industrial distribution 18,911 11,948 58% 41,954 35,639 18%
Municipal distribution 425 219 94% 2,084 2,137 -2%
Total distribution 74,345 57,042 30% 255,652 217,025 18%
Transportation 898 870 3% 3,504 5,920 -41%
Other 5,089 7,663 -34% 11,596 15,539 -25%
Total revenue 80,333 65,574 23% 270,753 238,485 14%
Cost of services (gas purchased) 48,182 31,152 55% 148,238 116,706 27%
Gross margin 32,151 34,422 -7% 122,515 121,779 1%
Depreciation and amortization 6,708 5,087 32% 19,075 15,989 19%
Other operating expenses 24,233 31,788 -24% 79,280 84,113 -6%
Total expense 79,123 68,027 16% 246,593 216,808 14%
Operating income 1,210 (2,453) 149% 24,160 21,677 11%
EBITDA and Capital Expenditure Data
EBITDA (1) $ 7,918 $ 2,634 201% $ 43,235 $ 37,666 15%
Capital expenditures 12,281 13,684 -10% 35,211 39,964 -12%
Balance Sheet Data
Total assets $ 598,048 $ 557,747 7%
Net plant 514,908 476,198 8%
Operating Data
Customers 467,870 460,592 2%
Employees 989 976 1%
Customers per employee 473 472 0%
Gross margin (net revenue) per employee $ 32,509 $ 35,268 -8% $ 123,878 $ 124,774 -1%
Billion Cubic Feet of gas throughput (BCF) 13.2 14.8 -11% 50.9 60.7 -16%
</TABLE>
(1) Operating income plus depreciation and amortization.
