Citizens Communications Company and Subsidiaries
Consolidated Financial Data
(unaudited)
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For the quarter ended For the six months ended
June 30, June 30,
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% %
(Amounts in thousands - except per-share amounts) 2000 1999 Change 2000 1999 Change
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Income Statement Data
Continuing operations (1)
<S> <C> <C> <C> <C> <C> <C>
Revenue $ 287,324 $ 273,946 5% $ 569,779 $ 528,282 8%
Revenue-Universal service fund settlement - - - - 10,414 -
Network access expense 25,851 35,984 -28% 56,796 64,579 -12%
Depreciation and amortization 74,474 59,763 25% 157,179 121,648 29%
Other operating expenses 155,814 163,228 -5% 307,853 330,366 -7%
Acquisition assimilation expenses 7,617 - - 11,591 - -
Operating income 23,568 14,971 57% 36,360 22,103 65%
Investment and other income, net 4,810 6,943 -31% 10,075 12,965 -22%
Minority interest 5,937 5,693 4% 12,222 11,686 5%
Interest expense 33,151 18,299 81% 62,315 37,397 67%
Gain on sale of investments, net of tax (2) - - - - 42,895 n/a
Income tax expense (benefit) (1) 250 n/a (1,254) 252 n/a
Convertible preferred dividends 1,552 1,552 - 3,104 3,104 -
Income (loss) from continuing operations (387) 7,506 n/a (5,508) 48,896 n/a
Income (loss) from continuing operations
excluding gain on sale of investments (387) 7,506 n/a (5,508) 6,001 n/a
Income from discontinued operations, net of tax 3,399 247 1276% 15,846 13,482 18%
Net income 3,012 7,753 -61% 10,338 62,378 -83%
Net income excluding gain on sale of investments 3,012 7,753 -61% 10,338 19,483 -47%
EBITDA and Capital Expenditure Data(3)
EBITDA from continuing operations $ 98,042 $ 74,734 31% $ 193,539 $ 143,751 35%
EBITDA from discontinued operations 34,004 33,170 3% 81,171 76,117 7%
Total Company EBITDA 132,046 107,904 22% 274,710 219,868 25%
EBITDA from continuing operations before
acquisition assimilation expenses 105,659 74,734 41% 205,130 143,751 43%
Capital expenditures from continuing operations 187,322 118,561 58% 338,483 215,156 57%
Capital expenditures from discontinued operations 53,478 28,837 85% 74,231 52,338 42%
Total Company capital expenditures 240,800 147,398 63% 412,714 267,494 54%
Balance Sheet Data
Cash and investments $ 542,594 $ 512,742 6%
Total assets 6,073,322 5,470,489 11%
Net plant (continuing operations) 3,264,007 2,844,359 15%
Long-term debt (continuing operations) 2,530,370 1,977,603 28%
Equity (4) 2,080,830 2,052,017 1%
Shares of common stock outstanding 264,463 260,400 2%
Weighted average shares outstanding 263,762 260,059 1% 263,246 259,879 1%
Per-Share Data (5)
Basic net income per share of common stock $ 0.01 $ 0.03 -67% $ 0.04 $ 0.24 -83%
Basic net income per share of common stock excluding
gain on sale of investments 0.01 0.03 -67% 0.04 0.07 -43%
EBITDA per share from continuing operations 0.37 0.29 28% 0.74 0.55 35%
EBITDA per share from discontinued operations 0.13 0.13 - 0.31 0.29 7%
Total Company EBITDA per share 0.50 0.41 22% 1.04 0.85 22%
Book value per share 7.14 7.12 -
Other Financial Data
Long-term debt to long-term debt and equity 55% 49%
Common equity market capitalization (in billions) $ 4.56 $ 2.90
Equity market capitalization (in billions) (4) $ 4.80 $ 3.10
Market capitalization (in billions) (6) $ 7.33 $ 5.08
(1) The Company's Telecommunications and Electric Lightwave, Inc. (ELI), our Competitive Local Exchange Carrier (CLEC) businesses.
The Company is reporting its Public Services 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.
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Citizens Communications Company and Subsidiaries
Financial and Operating Data by Service
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For the quarter ended For the six months ended
June 30, June 30,
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% %
(Dollars in thousands, except operating data) 2000 1999 Change 2000 1999 Change
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Telecommunications
Select Income Statement Data
Revenue
<S> <C> <C> <C> <C> <C> <C>
Network access services $ 124,977 $ 127,429 -2% $ 246,410 $ 244,383 1%
Network access services - USF settlement - - - - 10,414 -
Local network services 73,180 69,405 5% 143,705 136,689 5%
Long distance and data services 17,988 20,048 -10% 38,053 41,391 -8%
Directory services 7,449 7,033 6% 14,620 13,959 5%
Other 15,938 17,075 -7% 33,489 32,039 5%
Eliminations (1) (12,136) (12,369) n/a (22,569) (23,022) n/a
Total revenue 227,396 228,621 -1% 453,708 455,853 -
Network access expense 20,385 25,421 -20% 41,702 40,143 4%
Depreciation and amortization 59,763 51,613 16% 129,770 106,504 22%
Other operating expenses 112,374 124,641 -10% 221,858 256,303 -13%
Acquisition assimilation expenses (2) 7,617 - - 11,591 - -
Eliminations (1) (12,136) (12,369) n/a (22,569) (23,022) n/a
Total expense 188,003 189,306 -1% 382,352 379,928 1%
Operating income 39,393 39,315 - 71,356 75,925 -6%
EBITDA and Capital Expenditure Data
EBITDA (3) $ 99,156 $ 90,928 9% $ 201,126 $ 182,429 10%
EBITDA margin (4) 44% 40% 10% 44% 40% 10%
EBITDA before acquisition assimilation expenses 106,773 90,928 17% 212,717 182,429 17%
EBITDA margin before acquisition assimilation expenses 47% 40% 18% 47% 40% 18%
Capital expenditures 73,391 52,125 41% 170,844 90,609 89%
Balance Sheet Data
Total assets $ 2,673,415 $ 2,410,967 11%
Net plant 2,353,722 2,107,008 12%
Operating Data
Access lines (5) 1,017,188 974,379 4%
Revenue per access line $ 224 $ 235 -5% $ 446 $ 468 -5%
Switched access minutes of use (in millions) 1,380 1,274 8% 2,703 2,515 7%
Employees (5) 3,742 3,693 1%
Citizens' long distance minutes of use (in millions) 139 148 -6% 277 298 -7%
Citizens' long distance in-territory customer market share 18% 17%
(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.
(5) Does not include access lines or employees associated with the Nebraska acquisition, which closed on June 30, 2000.
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Citizens Communications Company and Subsidiaries
Financial and Operating Data by Service
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For the quarter ended For the six months ended
June 30, June 30,
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% %
(Dollars in thousands, except operating data) 2000 1999 Change 2000 1999 Change
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Electric Lightwave, Inc.
Select Income Statement Data
Revenue
<S> <C> <C> <C> <C> <C> <C>
Network services $ 17,173 $ 12,983 32% $ 33,177 $ 23,407 42%
Local telephone services 25,951 18,600 40% 50,225 32,908 53%
Long distance services 4,265 9,245 -54% 8,862 17,775 -50%
Data services 13,231 5,267 151% 25,134 10,221 146%
Total revenue 60,620 46,095 32% 117,398 84,311 39%
Network access expense 18,294 23,702 -23% 38,990 48,926 -20%
Gross margin 42,326 22,393 89% 78,408 35,385 122%
Depreciation and amortization 14,721 8,150 81% 27,476 15,144 81%
Other operating expenses 43,761 39,080 12% 86,508 74,881 16%
Total expense 76,776 70,932 8% 152,974 138,951 10%
Operating loss (16,156) (24,837) n/a (35,576) (54,640) n/a
EBITDA and Capital Expenditure Data
EBITDA (1) $ (1,435) $ (16,687) n/a $ (8,100) $ (39,496) n/a
Capital expenditures (2) 113,807 60,351 89% 167,500 117,351 43%
Balance Sheet Data
Total assets $ 903,737 $ 693,494 30%
Gross plant 936,368 693,449 35%
Operating Data
Access Line Equivalents 196,259 121,517 62%
Route miles 5,911 3,128 89%
Fiber miles 295,157 192,213 54%
Customers 2,788 1,961 42%
Buildings connected 838 795 5%
Employees 1,195 1,233 -3%
Revenue per employee $ 50,728 $ 37,384 36% $ 98,241 $ 68,379 44%
ELI public enterprise value (3) $ 1,777,236 $ 1,185,228 50%
(1) Operating income plus depreciation and amortization.
(2) Includes capitalized leases.
(3) Common equity market capitalization plus net debt.
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