Company Logo Exhibit 99.1
Citizens Communications
3 High Ridge Park
Stamford, CT 06905
203.614.5600
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Web site: www.czn.net
FOR IMMEDIATE RELEASE
Contacts:
Financial Community Media
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Alan H. Oshiki, Assistant Vice President Brigid M. Smith, Assistant Vice President
Investor Relations Corporate Communications
(203) 614-5629 (203) 614-5042
[email protected] [email protected]
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CITIZENS COMMUNICATIONS REPORTS FINANCIAL RESULTS FOR THE
SECOND QUARTER OF 2000
STAMFORD, Conn., August 8, 2000 - Citizens Communications (NYSE:CZN) today re-
ported financial results for the quarter and six months ended June 30, 2000.
Second quarter revenue from continuing operations was $287.3 million, up 5% from
$273.9 million in the second quarter of 1999.
Revenue from the company's incumbent local exchange carrier business was $227.4
million, compared to $228.6 million for the 1999 second quarter, which contained
an aggregate of $4.4 million of non-recurring items. Absent these non-recurring
items, revenue for the second quarter of 1999 was $224.2 million. Giving effect
to the non-recurring items in the quarter ended June 30, 1999, revenue increased
by $3.2 million, or 1.4%.
Second quarter revenue from the company's competitive local exchange carrier
subsidiary, Electric Lightwave, Inc. (NASDAQ:ELIX), totaled $60.6 million com-
pared to $46.1 million, an increase of $14.5 million or 32% above the prior year
period.
Consolidated second quarter 2000 EBITDA (earnings before interest, taxes, depre-
ciation and amortization) from continuing operations was $98.0 million, up 31%
from $74.7 million in the prior year quarter.
Local exchange carrier business EBITDA for the quarter was $99.2 million, up 9%
from $90.9 million in the prior year period. Second quarter 2000 local exchange
carrier EBITDA included $7.6 million of assimilation expense related to the
pending acquisitions of telephone access lines. Absent this expense EBITDA in-
creased to $106.8 million, an increase of $15.8 million or 17%, resulting in an
EBITDA margin of 47% compared to 40% in the prior year period.
Electric Lightwave's second quarter EBITDA loss declined to $1.4 million, a
$15.3 million improvement over the $16.7 million loss for the corresponding
prior year quarter.
Citizens' net income for the second quarter was $3.0 million, or 1 cent per
share, compared to net income of $7.8 million, or 3 cents per share in the
second quarter of 1999.
Net income for the six months ended June 30, 2000 was $10.3 million or 4 cents
per share, compared to $62.4 million or 24 cents per share for the first six
months of 1999. Net income for the year ago period included a $42.9 million gain
(net of tax) on the sale of an investment.
Compared to the prior year periods, net income for the quarter and six months
ended June 30, 2000 was affected by higher depreciation and amortization expense
of $14.7 million and $35.5 million, respectively, as well as higher interest
expense of $14.9 million and $24.9 million, respectively. The higher interest
expense in both periods was primarily due to increased debt levels at Electric
Lightwave.
Commenting on the quarter, Citizens' chairman and chief executive officer
Leonard Tow said, "Our results continue on EBITDA targets as we transition
Citizens to a higher EBITDA margin business. The significant progress we are
making toward this goal can be seen in the improved performance at our core
telephone operations and at Electric Lightwave."
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Citizens Communications provides telecommunications services to more than 1
million customers in 14 states. In 1999 and 2000, Citizens agreed to purchase
over 2 million additional access lines in 19 states. The first of these
transactions, in Nebraska, closed on June 30; the remainder will continue to
close throughout the next 12 months. Citizens also owns 83% of Electric
Lightwave, Inc. (NASDAQ:ELIX), a facilities-based, integrated communications
provider that offers a broad range of services to telecommunications-intensive
businesses throughout the United States. More information about Citizens can be
found at www.czn.net.
This document contains forward-looking statements that are subject to risks and
uncertainties that could cause actual results to differ materially from those
expressed or implied in the statements. These and all forward-looking statements
(including oral representations) are only predictions or statements of current
plans that are constantly under review by the company. All forward-looking
statements may differ from actual results because of, but not limited to,
changes in the local and overall economy, changes in market conditions for debt
and equity securities, the nature and pace of technological changes, the number
and effectiveness of competitors in the company's markets, success in overall
strategy, changes in legal or regulatory policy, changes in legislation, the
company's ability to identify future markets and successfully expand existing
ones, the mix of products and services offered in the company's target markets,
the effects of acquisitions and dispositions and the ability to effectively
integrate businesses acquired. These important factors should be considered in
evaluating any statement contained herein and/or made by the company or on its
behalf. The foregoing information should be read in conjunction with the
company's filings with the U.S. Securities and Exchange Commission including,
but not limited to, reports on Forms 10-K and 10-Q. The company does not intend
to update or revise these forward-looking statements to reflect the occurrence
of future events or circumstances.
(Table to Follow)
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Citizens Communications
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 (1)
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Revenue from continuing operations $287,324 $273,946 5% $569,779 $ 538,696 6%
Operating income from continuing operations 23,568 14,971 57% 36,360 22,103 65%
Income from discontinued operations, net of tax 3,399 247 1,276% 15,846 13,482 18%
Net income (2) 3,012 7,753 -61% 10,338 19,483 -47%
EBITDA and Capital Expenditure Data (3)
EBITDA from continuing operations before acquisition
assimilation expenses (4) $105,659 $ 74,734 41% $205,130 $ 143,751 43%
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%
Per Share Data (5)
Basic net income per share of common stock (2) $ 0.01 $ 0.03 -67% $ 0.04 $ 0.07 -43%
EBITDA per share from continuing operations before acquisition
assimilation expenses 0.40 0.29 39% 0.78 0.55 41%
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% 0.31 0.29 7%
Total Company EBITDA per share 0.50 0.41 22% 1.04 0.85 22%
Weighted average shares outstanding 263,762 260,059 1% 263,246 259,879 1%
(1) Continuing operations are comprised of the Company's Telecommunications and our Competitive Local Exchange Carrier
(Electric Lightwave, Inc.) businesses. The Company is reporting its Public Services businesses as discontinued operations.
(2) The six months ended June 30, 1999 excludes the gain on sale of investment of $42.9 million (net of tax) or 17 cents per share.
(3) EBITDA is operating income plus depreciation and amortization.
(4) Represents expenses associated with the pending acquisitions of approximately 2 million telephone access lines.
(5) Calculated based on weighted average shares outstanding.
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