Alaska Communications Systems Group, Inc. (“ACS”) (NASDAQ:ALSK) reported financial results for its fourth quarter and year ended December 31, 2009.
Financial Highlights: Fourth Quarter 2009 Compared to Fourth Quarter 2008
* Revenues of $83.1 million declined by $3.8 million, or 4.4 percent, from $86.9 million in the prior year. Revenue declines were largely in the legacy wireline segment which declined by $3.4 million reflecting line declines and $1.2 million in out-of-period items. Wireless revenue declined by $1.2 million as a result of subscriber loses and higher discounts on handsets, while enterprise revenues increased by $0.8 million with growth in data services partially offset by losses in carrier voice.
* EBITDA of $24.4 million was down $5.0 million, or 17.0 percent, as compared to $29.4 million in the prior year. Fourth quarter 2009 was negatively impacted by $4.2 million in reserves and charges for access revenue, the rejection of contractual commitments by a bankrupt vendor, an out-of-period true-up for bad debt write-offs and other third party claims.
* Net cash provided by operating activities of $23.7 million was down from $27.0 million in the prior year period.
* Net loss of $7.0 million, or $0.16 per share, compared to a net loss of $19.1 million, or $0.44 per share, in the prior year. The prior year was adversely impacted by $29.6 million in impairment charges for goodwill.
Metric Highlights: Fourth Quarter 2009 Compared to Third Quarter 2009
* Wireless monthly churn of 2.4 percent was in line with the prior quarter, reflecting continued market share loss to the iPhone.
* Total wireless subscribers decreased by 2,361 to 137,365.
* Wireless ARPU increased to $65.07 from $64.51 with gains in data ARPU and CETC offsetting declines in voice ARPU. Post paid data ARPU increased by 6.7 percent to $8.62.
* DSL lines increased by 300 to 46,600 while ISP ARPU increased by 2.8 percent to $35.34.
* Retail local access lines declined by 1.6 percent to approximately 163,900.
* Total local access lines decreased by 2.3 percent to approximately 185,500.
Annual Financial Review
For the twelve months ended December 31, 2009:
* Total revenues were $346.5 million compared to $351.1 million in the same period last year.
* Net loss before extraordinary item was $3.3 million, or $0.08 per diluted share, compared to net loss of $10.8 million, or $0.25 per diluted share, in the same period in 2008.
* Net cash provided by operating activities for the full year 2009 was $96.7 million compared to $96.2 million in the same period in 2008.
* EBITDA for the full year 2009 was $123.0 million, compared to $128.7 million in the same period last year.
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