SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 6, 2000
CT COMMUNICATIONS, INC.
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(Exact name of registrant as specified in its charter)
North Carolina 0-19179 56-1837282
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(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation or Identification
organization) Number)
68 Cabarrus Avenue, East, Concord, North Carolina 28025
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (704) 722-2500)
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<PAGE>
ITEM 5 OTHER EVENTS
On March 6, 2000, CT Communications, Inc. (the "Registrant")
announced financial results for the three-month period and year ended
December 31, 1999. A copy of the press release is included as Exhibit 99.1
to this Current Report on Form 8-K.
Also on March 6, 2000, the Registrant announced a two-for-one
stock dividend on all of its issued and outstanding shares of Common Stock.
The dividend is payable on April 5, 2000 to shareholders of record as of
the close of business on March 15, 2000. A copy of the press release is
included as Exhibit 99.2 to this Current Report on Form 8-K.
ITEM 7 FINANCIAL STATEMENTS AND EXHIBITS
(c) The following exhibits are filed herewith:
Exhibit No. Description
---------- --------------
99.1 News release disseminated on March 6, 2000
by CT Communications, Inc., announcing
financial results for the three-month period
and year ended December 31, 1999.
99.2 News release disseminated on March 6, 2000
by CT Communications, Inc., announcing a
two-for-one stock dividend on all of its
issued and outstanding Common Stock.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
CT COMMUNICATIONS, INC.
By: /s/ Amy M. Justis
------------------------
Amy M. Justis
Vice President - Finance
Dated: March 7, 2000
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
99.1 News Release disseminated on March 6, 2000 by CT
Communications, Inc., announcing financial results
for the three-month period and year ended December 31,
1999.
99.2 News Release disseminated on March 6, 2000 by CT
Communications, Inc., announcing a two-for-one
stock dividend on all of its issued and outstanding
Common Stock.
March 6, 2000
For Immediate Release
Contact: Barry Rubens
704.722.2404
Mark Hadley
704.722.3251
CT Communications Reports Record Earnings for 1999
CT Communications, Inc. ("CTC" Nasdaq: CTCI) announced a record net
income of $23.1 million, or diluted earnings per common share of $2.44, for
the year ended December 31, 1999, an increase of 72% over 1998. Net income
for the fourth quarter of 1999 was $5.0 million, or diluted earnings per
common share of $0.53, an increase of 31% over the fourth quarter of 1998.
These results are driven primarily by strong growth across the company's
four business segments and by gain on the sale of a portion of the
company's investment portfolio.
Revenues were $105.6 million in 1999, a 15% increase over 1998,
and $27.6 million in the fourth quarter of 1999, a 12% increase over fourth
quarter of 1998. Drivers of the year over year revenue increase include:
-Strong customer growth and revenue enhancements in the core telephone
business.
Access lines grew by over 7% to 116,935 with business access lines growth
of nearly 14% and residential access lines growth of over 5%. Custom
call feature revenue growth increased by more than 20%.
-Significant access line growth in the competitive local exchange
carrier ("CLEC").
More than 2,000 access lines were installed in 1999 for the CLEC to bring
the total lines in service to over 3,500. Total lines sold at the end
of 1999 was over 4,000. Over 1,000 lines were installed in 1999 at
Concord Mills Mall, a large retail center approximately 10 miles north
of Charlotte. CTC is the preferred provider for the merchants and has
currently serves 100% of the local access lines. In addition, during
January and February of 2000 CTC has sold over 1,600 lines in its CLEC
markets.
-Continued expansion of the Internet and Data Services business.
Revenues increased over 70% with the addition of 3,621 customers and the
roll-out of new products including QuickClick, CTC's DSL service.
-High digital wireless subscriber growth.
CTC opened their fourth DCS retail store in third quarter and had 10,700
subscribers by the end of 1999, a 65% increase over 1998.
<PAGE>
Operating expenses, including depreciation and amortization, increased
$13 million or 18% over 1998 to $83.2 million. This increase was primarily
due to the expense related to the high growth in the competitive businesses
coupled with the increase in the depreciable asset base. Operating income
was $22.4 million for year-end 1999, an increase of 4% over 1998. For the
fourth quarter of 1999 operating income was $5.6 million, a 20% increase
over fourth quarter of 1998.
EBITDA increased $3.2 million or 9% to $37.5 million in 1999. For the
fourth quarter of 1999 EBITDA was $9.2 million, a 9% increase over fourth
quarter of 1998.
Other income increased from $.9 million in 1998 to $16.4 million in
1999 including $21.6 million of pretax gains on the sale of 660,000 shares
of ITC^DeltaCom stock during the year. As of December 31, 1999, CTC owned
approximately 941,000 shares of ITC^DeltaCom (Nasdaq: ITCD) stock as well
as 944,000 shares of Illuminet Holdings Inc. (Nasdaq: ILUM). In the fourth
quarter other income was $2.7 million versus $1.2 million in the fourth
quarter of 1998.
"Strong growth and financial milestones made 1999 an exciting year
for CT Communications and its shareholders. We are particularly pleased at
the continued strength of our revenue and earnings growth," said Michael R.
Coltrane, president and chief executive officer. "By expanding our products
and services we were able to continue to meet our customers expanding
communication needs and by expanding into new markets we were able to reach
new customers with our service in 1999. We look forward to the year ahead
and to the continued opportunities for growth and expansion our industry
and communities provide."
CTC is also announcing today that its Board of Directors approved a
2-for-1 split of its common stock, payable on April 5, 2000. Shareholders
of its common stock will receive one additional share for every share held
on the record date of March 15, 2000.
CT Communications, Inc., which is headquartered in Concord, N.C., is
a growing provider of integrated telecommunications services to residential
and business customers located primarily in North and South Carolina. CT
Communications, Inc. offers a comprehensive package of telecommunications
services, including local and long distance telephone services, Internet
and data services and digital wireless services.
<PAGE>
<TABLE>
<CAPTION>
Consolidated Statements of Income
($ in thousands, except per share amounts)
Three Months Ended Three Months Ended
December 31, 1999 December 31, 1998
----------------------------------------------------
<S> <C> <C>
ILEC Services 19,731 18,355
CLEC and Long Distance Services 4,260 3,645
Internet and Data Services 1,492 1,190
Digital Wireless Services 1,518 1,014
Other 562 337
----------------------------------------------------
Operating Revenue $27,563 $24,541
----------------------------------------------------
ILEC Services 11,075 10,334
CLEC and Long Distance Services 3,677 3,531
Internet and Data Services 1,402 954
Digital Wireless Services 2,153 1,012
Other 15 228
----------------------------------------------------
Operating Expenses $18,322 $16,059
----------------------------------------------------
EBITDA $9,241 $8,482
Depreciation and Amortization 3,607 3,790
----------------------------------------------------
Operating Income $5,634 $4,692
----------------------------------------------------
Other Income/(Expense) 2,682 1,237
Tax Expense 3,275 2,082
----------------------------------------------------
Net Income $5,041 $3,847
----------------------------------------------------
Dividends on preferred stock 7 7
----------------------------------------------------
Earnings for Common Stock $5,034 $3,839
----------------------------------------------------
Basic Earnings per common share $.54 $.41
Diluted Earnings per common share $.53 $.41
<PAGE>
<CAPTION>
Consolidated Statements of Income
($ in thousands, except per share amounts)
Year Ended Year Ended
December 31, 1999 December 31, 1998
----------------------------------------------------
<S> <C> <C>
ILEC Services 76,653 70,647
CLEC and Long Distance Services 16,904 13,883
Internet and Data Services 5,717 3,369
Digital Wireless Services 5,193 3,151
Other 1,125 675
----------------------------------------------------
Operating Revenue $105,591 $91,725
----------------------------------------------------
ILEC Services 41,931 38,459
CLEC and Long Distance Services 13,489 11,164
Internet and Data Services 5,320 2,907
Digital Wireless Services 6,866 4,196
Other 493 705
----------------------------------------------------
Operating Expenses $68,099 $57,431
----------------------------------------------------
EBITDA $37,492 $34,294
Depreciation and Amortization 15,124 12,841
----------------------------------------------------
Operating Income $22,368 $21,453
----------------------------------------------------
Other Income/(Expense) 16,398 856
Tax Expense 15,698 8,927
Net Income $23,068 $13,382
----------------------------------------------------
Dividends on preferred stock 26 28
----------------------------------------------------
Earnings for Common Stock $23,042 $13,354
----------------------------------------------------
Basic Earnings per common share $2.46 $1.45
Diluted Earnings per common share $2.44 $1.44
<PAGE>
<CAPTION>
Consolidated Balance Sheet
($ in thousands)
At December 31, At December 31,
1999 1998
----------------------------------------------------
<S> <C> <C>
Current Assets $24,905 $22,683
Investment securities 81,950 24,666
Investment in affiliates 31,684 29,790
Property, plant and equipment, net 114,175 100,172
Other Assets 5,878 6,323
----------------------------------------------------
TOTAL ASSETS $258,592 $183,634
----------------------------------------------------
Current Liabilities $17,435 $16,695
Long term debt 20,000 20,000
Deferred credits and other liabilities 46,183 27,231
Redeemable preferred stock 113 125
Stockholders' Equity 174,862 119,583
----------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $258,592 $183,634
----------------------------------------------------
</TABLE>
March 6, 2000
For Immediate Release
Contact: Barry Rubens
704.722.2404
Mark Hadley
704.722.3251
CT Communications Announces 2-for1 Stock Split
CT Communications, Inc. ("CTC" Nasdaq: CTCI) announced today that
its Board of Directors approved a 2-for-1 split of its common shares.
Holders of its common stock will receive one additional common share
for every share held on the record date of March 15, 2000. Payment date for
the split will be April 5, 2000.
"When considering the strong price growth our common stock has
seen in the past year, our prospects for continued growth and our concern
for making our common stock accessible to all investors, we feel a stock
split is most appropriate at this time," said, Barry R. Rubens, Chief
Financial Officer. "We're pleased with the strong interest in our stock
from investors and feel this stock split will help provide the liquidity
required to meet their needs."
As of March 1, 2000, CT Communications had approximately 9.5
million common shares outstanding. Upon completion of the split, the number
will increase to approximately 19 million shares. This is the first split
of the common stock since it began trading on the Nasdaq National Market on
January 29, 1999.
CT Communications, Inc., which is headquartered in Concord, N.C.,
is a growing provider of integrated telecommunications services to
residential and business customers located primarily in North and South
Carolina. CT Communications, Inc. offers a comprehensive package of
telecommunications services, including local and long distance telephone
services, Internet and data services and digital wireless services.
