Otelco Reports Second Quarter 2018 Operational and Financial Results

Otelco (NASDAQ:OTEL), a wireline telecommunications services provider announced operational and financial results for its second quarter ended June 30, 2018.

The company posted revenues of US$16.9 million for second quarter of 2018 while its operating income were US$5.2 million. Otelco’s net income for the period were US$2.9 million.

As quoted in the press release:

“We are pleased with another quarter of solid execution against our strategy,” said Rob Souza, President and CEO of Otelco. “Operating income increased 2.4%, net income increased 89.3% and Consolidated EBITDA increased 1.5% for second quarter 2018 from second quarter 2017. The ratio of debt, net of cash, to Consolidated EBITDA is below 3.0 for the third consecutive quarter.”

SECOND QUARTER RESULTS
Revenue for the three months ended June 30, 2018, declined 3.0%, while Otelco controlled its expenses, allowing operating income to increase 2.4% for the same period, when compared to the three months ended June 30, 2017. Net income increased to $2.9 million in second quarter 2018 from $1.5 million in second quarter 2017, primarily driven by a $1.1 million decrease in interest expense associated with the Company’s new CoBank credit facility. Basic net income per share increased to $0.86 per share for second quarter 2018, compared to $0.46 per share in the same period of 2017.

“As you can see, our employee team has been actively engaged in many initiatives for our customers and stockholders during the past quarter,” continued Souza. “We are focused on enhancing our customer experience, improving available data speeds, adding new customers to the Otelco family and reducing our leverage to give the Company more financial flexibility for the future. While the price of our stock has more than tripled in the last two years, our peers in the industry continue to trade at somewhat higher multiples than Otelco. Generating an improvement in revenue performance while maintaining our focus on cost management should continue to serve our employees, customers and stockholders well into the future.”

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