Skip to main content

Alaska Communications Reports Fourth Quarter and Year-end 2020 Results

Alaska Communications Systems Group, Inc. (NASDAQ: ALSK) today reported financial results for the fourth quarter and year ended December 31, 2020.

“We are pleased with our strong financial performance for 2020, driven by broadband growth and increased customer cloud infrastructure during this unprecedented year. We are proud of our team and their continued exemplary customer service to our communities, particularly the education and healthcare areas. During 2020, we continued to invest in our network and expanded our broadband service by more than 3,700 locations in underserved areas of Alaska, an increase in locations of approximately 33%. In addition, we began mesh fixed wireless trials, offering internet speeds up to 1 Gig. In 2021, we plan to expand our mesh network as part of our strategy to upgrade one third of our network, extending our reach to approximately 42,000 new and existing customer locations with new or improved service.

“On March 12, 2021, our shareholders approved our merger with a subsidiary of ATN International, Inc. This transaction positions us to remain the premier communications partner within the state of Alaska, while providing significant opportunities to grow. We expect synergies in fiber infrastructure expansion and in the latest technologies for commercial customers, including next-generation managed services and private network solutions,” said Bill Bishop, President & CEO.

Fourth Quarter 2020 Compared to Fourth Quarter 2019

  • Total revenue was $62.3 million, compared to $58.3 million, an increase of 7.0%.
    • Business and wholesale revenue was $43.2 million, compared to $38.3 million, up 12.7%.
    • Consumer revenue was $9.0 million, compared to $9.2 million, a decrease of 2.6%.
    • Regulatory revenue was $10.2 million, compared to $10.8 million, a decrease of 5.2%.
  • Operating expenses were $68.2 million, including $9.6 million of transaction expenses, compared to $51.3 million.
  • Operating loss was $5.8 million, compared to operating income of $7.0 million.
  • Net loss attributable to Alaska Communications was $8.2 million, compared to net income of $2.6 million.
  • Capital expenditures were $15.3 million, compared to $13.2 million, or excluding prefunded projects were $13.5 million, compared to $10.0 million.
  • Adjusted EBITDA was $14.9 million, compared to $17.9 million.
  • Adjusted Free Cash Flow was $2.9 million, compared to $9.7 million, or excluding prefunded projects was $2.4 million, compared to $9.3 million.

Full Year 2020 Compared to Full Year 2019

  • Total revenue was $240.6 million, compared to $231.7 million, an increase of 3.8%.
    • Business and wholesale revenue was $162.9 million, compared to $150.6 million, up 8.2%.
    • Consumer revenue was $36.6 million, compared to $37.0 million, a decrease of 1.2%.
    • Regulatory revenue was $41.1 million, compared to $44.1 million, a decrease of 6.7%.
  • Operating expenses were $228.7 million, including $9.6 million of transaction expenses, compared to $209.8 million.
  • Operating income was $11.9 million, compared to $21.9 million.
  • Net loss attributable to Alaska Communications was $1.1 million, compared to net income of $4.9 million.
  • Capital expenditures were $48.2 million, compared to $44.8 million, or excluding prefunded projects were $39.9 million, compared to $41.4 million.
  • Adjusted EBITDA was $64.1 million, compared to $62.7 million.
  • Adjusted Free Cash Flow was $14.4 million, compared to $16.0 million, or excluding prefunded projects was $15.3 million, compared to $10.4 million.

Balance Sheet Highlights

  • Cash was $21.0 million at December 31, 2020, compared to $28.0 million at December 31, 2019.
  • Net debt was $151.9 million at December 31, 2020, compared to $153.8 million at December 31, 2019.

Reconciliations of non-GAAP financial measures to GAAP financial measures can be found in tables at the end of this release and on the Company’s website at http://www.alsk.com in the investment data section.

Laurie Butcher, Alaska Communications Chief Financial Officer, said, “In 2020, we delivered strong financial performance even with the impact of the COVID-19 pandemic. We exceeded revenue guidance, driven by increased broadband revenue, equipment sales and special project revenue coming online. Our business and wholesale growth offset our consumer and regulatory decreases, and our growth revenues continue to outpace our legacy declines. Regarding capex, due to the timing of certain projects, we were able to accelerate expansion of our fiber network and spent slightly more than guidance. Adjusted Free Cash Flow was on target, and even with incurring $7.2 million in payments associated with transaction costs in the fourth quarter, our cash balances remain strong. As a result, we are well positioned for 2021.”

2020 Performance

Operating Statement ($ in M)

2020 Guidance

2020 Performance

Total Revenue

$232 - $237

$240.6

Adjusted EBITDA

$63 - $65

$64.1

Capital Expenditures
(excluding prefunded projects)

$37 - $39

$39.9

Adjusted Free Cash Flow
(excl. prefunded projects)

$14 - $16

$15.3

Transaction Update

On December 31, 2020, Alaska Communications and ATN International, Inc. (NASDAQ: ATNI) signed a definitive agreement under which the Company will become a consolidated, majority owned subsidiary of ATN. After the expiration of the Hart-Scott-Rodino antitrust waiting period, on March 12, 2021, Alaska Communications held a special shareholder meeting where the Company’s shareholders approved the merger, pending certification of the vote results. The transaction is expected to close in the second half of 2021, subject to certain regulatory approvals and other conditions. Under the terms of the agreement, a subsidiary of ATN will acquire all the outstanding shares of Alaska Communications common stock for $3.40 per share in cash. Alaska Communications’ prior agreement to be acquired by an affiliate of Macquarie Capital and GCM Grosvenor, through its Labor Impact Fund, L.P., was terminated on December 31, 2020. The company paid a termination fee of $6.8 million.

Conference Call

Due to the pending transaction, the Company will not hold a conference call.

About Alaska Communications

Alaska Communications (NASDAQ: ALSK) is the leading provider of advanced broadband and managed IT services for businesses and consumers in Alaska. The Company operates a highly reliable, advanced statewide data network with the latest technology and the most diverse undersea fiber optic system connecting Alaska to the contiguous U.S. For more information, visit www.alaskacommunications.com or www.alsk.com.

Revenue Category Definitions

Growth Revenues are defined as business broadband, managed IT services, equipment sales and installations, wholesale broadband and consumer broadband. Legacy Revenues are defined as business voice and other, Wholesale voice and other, consumer voice and other, and Access. CAF II Revenues are defined as high cost support.

Non-GAAP Measures

In an effort to provide investors with additional information regarding our financial results, we have provided certain non-GAAP financial information, including Adjusted EBITDA, Adjusted Free Cash Flow and Net Debt. Adjusted EBITDA eliminates the effects of period to period changes in costs that are not directly attributable to the underlying performance of the Company’s business operations and is used by Management and the Company’s Board of Directors to evaluate current operating financial performance, analyze and evaluate strategic and operational decisions and better evaluate comparability between periods. Adjusted Free Cash Flow is a non-GAAP liquidity measured used by Management and the Company’s Board of Directors to assess the Company’s ability to generate cash and plan for future operating and capital actions. Adjusted EBITDA and Adjusted Free Cash Flow are common measures utilized by our peers (other telecommunications companies) and we believe they provide useful information to investors and analysts about the Company’s operating results, financial condition and cash flows. Net Debt provides Management and the Company’s Board of Directors with a measure of the Company’s current leverage position. The definition and computation of these non-GAAP measures are provided on Schedules 4, 6 and 9 to this press release. Adjusted EBITDA and Adjusted Free Cash Flow should not be considered a substitute for Net Income, Net Cash Provided by Operating Activities and other measures of financial performance recorded in accordance with GAAP. Reconciliations of our non-GAAP measures to our nearest GAAP measures can be found in the tables in this release. Other companies may not calculate non-GAAP measures in the same manner as Alaska Communications. The Company does not provide reconciliations of guidance for Adjusted EBITDA to Net Income, and Adjusted Free Cash Flow to Net Cash from Operating Activities, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company does not forecast certain items required to develop the comparable GAAP financial measures. These items are charges and benefits for uncollectible accounts, certain other non-cash expenses, unusual items typically excluded from Adjusted EBITDA and Adjusted Free Cash Flow, and changes in operating assets and liabilities (generally the most significant of these items, representing cash inflows of $15.9 million in the twelve-month period of 2020).

Forward-Looking Statements

This press release includes certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's beliefs as well as on a number of assumptions concerning future events made using information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside the Company’s control. Such factors include, without limitation changes in technology and related standards, the impacts of the COVID-19 pandemic on the economy of Alaska and on the Company, the impact of natural or man-made disasters and accidents, Federal and Alaska Universal Service Fund changes and our current and historical compliance with the obligations of those programs, structural declines for voice and other legacy services, maintenance or IT issues, third-party intellectual property claims, potential pension shortfalls, the success or failure of future strategic transactions, funding through the rural health care universal service support mechanism and our ability to comply and our history of compliance with the regulatory requirements to receive those support payments, our ability to service our debt and refinance as required, adverse economic conditions, our success in providing broadband services on the North Slope and Western Alaska, the effects of competition in our markets, our relatively small size compared with our competitors, the Company’s ability to compete, manage, integrate, market, maintain, and attract sufficient customers for its products and services, adverse changes in labor matters, including workforce levels, labor negotiations, employee benefit costs, our ability to control other operating costs, disruption of our supplier’s provisioning of critical products or services, the actions of activist shareholders, changes in Company's relationships with large customers, unforeseen changes in public policies, regulatory changes, our internal control over financial reporting, and changes in accounting standards or policies, which could affect reported financial results. For further information regarding risks and uncertainties associated with the Company’s business, please refer to the Company's SEC filings, including, but not limited to, the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of the Company's SEC filings may be obtained by contacting its investor relations department at (907) 564-7556 or by visiting its investor relations website at www.alsk.com.

Schedule 1

ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED SCHEDULE OF OPERATIONS
(Unaudited, In Thousands Except Per Share Amounts)
 

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2020

2019

2020

2019

 
 
Operating revenues

$

62,333

$

58,262

$

240,569

$

231,694

 
Operating expenses:
Cost of services and sales (excluding depreciation and amortization)

30,316

26,847

112,443

105,615

Selling, general & administrative

17,610

14,512

65,773

66,718

Transaction and termination costs

9,550

-

9,550

-

Depreciation and amortization

10,560

9,851

40,667

37,276

Loss on disposal of assets, net

117

55

240

156

 
Total operating expenses

68,153

51,265

228,673

209,765

 
Operating (loss) income

(5,820

)

6,997

11,896

21,929

 
Other income and (expense):
Interest expense

(2,643

)

(2,910

)

(11,000

)

(12,059

)

Loss on extinguishment of debt

-

-

-

(2,830

)

Interest income

18

94

174

385

Other income (expense), net

(8

)

(17

)

439

175

Total other income and (expense)

(2,633

)

(2,833

)

(10,387

)

(14,329

)

 
(Loss) income before income tax benefit (expense)

(8,453

)

4,164

1,509

7,600

 

Income tax benefit (expense)

232

(1,537

)

(2,665

)

(2,765

)

 
Net (loss) income

(8,221

)

2,627

(1,156

)

4,835

 
Less net loss attributable to noncontrolling interest

(19

)

(17

)

(83

)

(93

)

 
Net (loss) income attributable to Alaska Communications

$

(8,202

)

$

2,644

$

(1,073

)

$

4,928

 
Net (loss) income per share attributable to Alaska Communications:
Net (loss) income applicable to common shares

$

(8,202

)

$

2,644

$

(1,073

)

$

4,928

 
Basic

$

(0.15

)

$

0.05

$

(0.02

)

$

0.09

Diluted

$

(0.15

)

$

0.05

$

(0.02

)

$

0.09

 
Weighted average shares outstanding:
Basic

54,179

53,012

54,013

53,379

Diluted

54,179

53,975

54,013

54,277

 

Schedule 2

 
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited, In Thousands Except Per Share Amounts)
 

December 31,

December 31,

Assets

2020

2019

 
Current assets:
Cash and cash equivalents

$

19,644

$

26,662

Restricted cash

1,326

1,331

Short-term investments

434

434

Accounts receivable, net of allowance of $4,060 and $4,627

41,893

34,354

Materials and supplies

7,624

8,900

Prepayments and other current assets

6,404

9,617

Total current assets

77,325

81,298

 
Property, plant and equipment

1,452,943

1,424,904

Less: accumulated depreciation and amortization

(1,062,027

)

(1,042,546

)

Property, plant and equipment, net

390,916

382,358

 
Operating lease right of use assets

89,821

80,991

Other assets

11,370

12,598

Total assets

$

569,432

$

557,245

 
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term obligations

$

9,067

$

8,906

Accounts payable, accrued and other current liabilities

49,700

42,869

Operating lease liabilities - current

3,392

2,795

Total current liabilities

62,159

54,570

 
Long-term obligations, net of current portion

159,641

167,476

Deferred income taxes

5,846

4,403

Operating lease liabilities - noncurrent

81,103

78,767

Other long-term liabilities, net of current portion

94,764

78,520

Total liabilities

403,513

383,736

 
Commitments and contingencies
Alaska Communications stockholders' equity:
Common stock, $.01 par value; 145,000 authorized

549

541

Treasury stock, 1,000 shares at cost

(1,812

)

(1,812

)

Additional paid in capital

163,317

161,844

Retained earnings

9,442

15,367

Accumulated other comprehensive loss

(6,340

)

(3,277

)

Total Alaska Communications stockholders' equity

165,156

172,663

Noncontrolling interest

763

846

Total stockholders' equity

165,919

173,509

 
Total liabilities and stockholders' equity

$

569,432

$

557,245

 

Schedule 3

 
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, In Thousands)
 

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2020

2019

2020

2019

Cash Flows from Operating Activities:
Net (loss) income

$

(8,221

)

$

2,627

$

(1,156

)

$

4,835

Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization

10,560

9,851

40,667

37,276

Loss on disposal of assets, net

117

55

240

156

Amortization of debt issuance costs and debt discount

292

304

1,234

1,215

Loss on extinguishment of debt

-

-

-

2,830

Amortization of deferred capacity revenue

(1,789

)

(1,255

)

(6,670

)

(4,655

)

Stock-based compensation

475

814

1,693

1,580

Deferred income tax (benefit) expense

(232

)

1,385

2,658

2,919

Charge for uncollectible accounts

739

(18

)

(216

)

257

Amortization of ROU assets

825

572

2,897

2,288

Other non-cash expense (income), net

8

18

(91

)

70

Changes in operating assets and liabilities

3,459

1,842

15,863

10,044

Net cash provided by operating activities

6,233

16,195

57,119

58,815

 
Cash Flows from Investing Activities:
Capital expenditures

(15,303

)

(13,208

)

(48,243

)

(44,764

)

Capitalized interest

(358

)

(396

)

(1,364

)

(1,379

)

Change in unsettled capital expenditures

(981

)

57

(579

)

640

Proceeds on sale of assets

-

5

-

25

Net cash used by investing activities

(16,642

)

(13,542

)

(50,186

)

(45,478

)

 
Cash Flows from Financing Activities:
Repayments of long-term debt

(2,267

)

(1,137

)

(8,908

)

(174,040

)

Proceeds from the issuance of long-term debt

-

-

-

180,000

Debt issuance costs and discounts

-

-

-

(2,683

)

Cash paid for debt extinguishment

-

-

-

(1,252

)

Payment of cash dividend on common stock

-

-

(4,836

)

-

Payment of withholding taxes on stock-based compensation

(17

)

(5

)

(456

)

(453

)

Purchases of treasury stock

-

-

-

(1,812

)

Proceeds from issuance of common stock

120

105

244

211

Net cash used by financing activities

(2,164

)

(1,037

)

(13,956

)

(29

)

 
Change in cash, cash equivalents and restricted cash

(12,573

)

1,616

(7,023

)

13,308

 
Cash, cash equivalents and restricted cash, beginning of period

33,543

26,377

27,993

14,685

 
Cash, cash equivalents and restricted cash, end of period

$

20,970

$

27,993

$

20,970

$

27,993

 
Supplemental Cash Flow Data:
Interest paid

$

2,705

$

2,992

$

11,137

$

12,228

Dividends payable at December 31, 2020

$

16

$

-

$

16

$

-

Income taxes paid, net

$

(4,311

)

$

(5,051

)

$

(4,307

)

$

(5,041

)

 
Schedule 4
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
ADJUSTED EBITDA
(Unaudited, In Thousands)
 

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2020

2019

2020

2019

 
Net (loss) income

$

(8,221

)

$

2,627

$

(1,156

)

$

4,835

Add (subtract):
Interest expense

2,643

2,910

11,000

12,059

Loss on extinguishment of debt

-

-

-

2,830

Interest income

(18

)

(94

)

(174

)

(385

)

Depreciation and amortization

10,560

9,851

40,667

37,276

Other expense (income), net

8

17

(439

)

(175

)

Loss on disposal of assets, net

117

55

240

156

Income tax (benefit) expense

(232

)

1,537

2,665

2,765

Stock-based compensation

475

814

1,693

1,580

Transaction-related costs

9,550

-

9,550

-

Cash severance expense

-

120

-

1,715

Net loss attributable to noncontrolling interest

19

17

83

93

 
Adjusted EBITDA

$

14,901

$

17,854

$

64,129

$

62,749

Non-GAAP Measures:

The Company provides certain non-GAAP financial information, including Adjusted EBITDA, Adjusted Free Cash Flow and Net Debt. Adjusted EBITDA eliminates the effects of period to period changes in costs that are not directly attributable to the underlying performance of the Company’s business operations and is used by Management and the Company’s Board of Directors to evaluate current operating financial performance, analyze and evaluate strategic and operational decisions and better evaluate comparability between periods. Adjusted Free Cash Flow is a non-GAAP liquidity measure used by Management to assess the Company’s ability to generate cash and plan for future operating and capital actions. Adjusted EBITDA and Adjusted Free Cash Flow are common measures utilized by our peers (other telecommunications companies) and we believe they provide useful information to investors and analysts about the Company’s operating results, financial condition and cash flows. Net Debt provides Management and the Board of Directors with a measure of the Company’s current leverage position.

The Company does not provide reconciliations of guidance for Adjusted EBITDA to Net Income, and Adjusted Free Cash Flow to Net Cash Provided by Operating Activities, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company does not forecast certain items required to develop the comparable GAAP financial measures. These items are charges and benefits for uncollectible accounts, certain other non-cash expenses, unusual items typically excluded from Adjusted EBITDA and Adjusted Free Cash Flow, and changes in operating assets and liabilities (generally the most significant of these items, representing cash inflows of $15.9 million in the twelve-month period ended December 31, 2020).

Adjusted EBITDA and Adjusted Free Cash Flow are not GAAP measures and should not be considered a substitute for net income, net cash provided by operating activities, or net cash provided or used. Adjusted EBITDA as computed above is not consistent with the definition of Consolidated EBITDA referenced in our 2019 Senior Credit Facility, and other companies may not calculate Non-GAAP measures in the same manner we do.

Adjusted EBITDA is defined as net income before interest expense and income, loss on extinguishment of debt, depreciation and amortization, other income and expense, gain or loss on asset purchases or disposals, provision for income taxes, stock-based compensation, transaction-related costs, cash severance expense, and net loss attributable to noncontrolling interest.

Schedule 5

ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW
(Unaudited, In Thousands)
     
 

Three Months Ended

Twelve Months Ended

 

December 31,

December 31,

 

2020

2019

2020

2019

     
Net cash provided by operating activities 

$

6,233

 

$

16,195

 

$

57,119

 

$

58,815

Adjustments to reconcile net cash provided by operating activities to adjusted free cash flow:    
Capital expenditures excluding prefunded projects 

(13,536

)

 

(9,981

)

 

(39,881

)

 

(41,355

)

Capital expenditures for prefunded projects 

(1,767

)

 

(3,227

)

 

(8,362

)

 

(3,409

)

Milestone payments received for prefunded projects 

2,615

 

3,785

 

16,895

 

9,070

Milestone payments made for prefunded projects 

-

 

-

 

(8,250

)

 

-

Deferred cost of sales for prefunded projects 

175

 

-

 

525

 

-

Amortization of revenue for prefunded projects 

(523

)

 

(113

)

 

(1,753

)

 

(113

)

Amortization of deferred capacity revenue 

1,789

 

1,255

 

6,670

 

4,655

Amortization of GCI capacity revenue 

(523

)

 

(522

)

 

(2,077

)

 

(2,071

)

Amortization of debt issuance costs and debt discount 

(292

)

 

(304

)

 

(1,234

)

 

(1,215

)

Interest expense 

2,643

 

2,910

 

11,000

 

12,059

Interest paid 

(2,705

)

 

(2,992

)

 

(11,137

)

 

(12,228

)

Interest income 

(18

)

 

(94

)

 

(174

)

 

(385

)

Deferred income tax benefit (expense) 

232

 

(1,385

)

 

(2,658

)

 

(2,919

)

Income tax (benefit) expense 

(232

)

 

1,537

 

2,665

 

2,765

Income taxes paid, net 

4,311

 

5,051

 

4,307

 

5,041

Charge for uncollectible accounts 

(739

)

 

18

 

216

 

(257

)

Amortization of ROU assets 

(825

)

 

(572

)

 

(2,897

)

 

(2,288

)

Transaction-related costs 

9,550

 

-

 

9,550

 

-

Other expense (income), net 

8

 

17

 

(439

)

 

(175

)

Net loss attributable to noncontrolling interest 

19

 

17

 

83

 

93

Other non-cash (expense) income, net 

(8

)

 

(18

)

 

91

 

(70

)

Changes in operating assets and liabilities 

(3,459

)

 

(1,842

)

 

(15,863

)

 

(10,044

)

Adjusted free cash flow 

$

2,948

 

$

9,735

 

$

14,396

 

$

15,969

     
Schedule 6
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
ADJUSTED FREE CASH FLOW
(Unaudited, In Thousands)
     
 

Three Months Ended

Twelve Months Ended

 

December 31,

December 31,

 

2020

2019

2020

2019

     
Adjusted EBITDA 

$

14,901

 

$

17,854

 

$

64,129

 

$

62,749

     
Less:    
Capital expenditures excluding prefunded projects 

(13,536

)

 

(9,981

)

 

(39,881

)

 

(41,355

)

Amortization of GCI capacity revenue 

(523

)

 

(522

)

 

(2,077

)

 

(2,071

)

Cash severance expense 

-

 

(120

)

 

-

 

(1,715

)

Income taxes paid, net 

4,311

 

5,051

 

4,307

 

5,041

Interest paid 

(2,705

)

 

(2,992

)

 

(11,137

)

 

(12,228

)

 

2,448

 

9,290

 

15,341

 

10,421

Impact of prefunded projects:    
Capital expenditures for prefunded projects 

(1,767

)

 

(3,227

)

 

(8,362

)

 

(3,409

)

Milestone payments received for prefunded projects 

2,615

 

3,785

 

16,895

 

9,070

Milestone payments made for prefunded projects 

-

 

-

 

(8,250

)

 

-

Deferred cost of sales for prefunded projects 

175

 

-

 

525

 

-

Amortization of revenue for prefunded projects 

(523

)

 

(113

)

 

(1,753

)

 

(113

)

 

500

 

445

 

(945

)

 

5,548

Adjusted free cash flow* 

$

2,948

 

$

9,735

 

$

14,396

 

$

15,969

* Quarterly Adjusted Free Cash Flow fluctuates and should not be viewed as an indicator of annual performance. Onetime events, seasonality of capital spend and the timing of interest payments may result in negative Adjusted Free Cash Flow in one or more quarters.

Non-GAAP Measures:

Adjusted Free Cash Flow is a non-GAAP liquidity measure and is defined as Adjusted EBITDA, less recurring operating cash requirements which include capital expenditures, cash income taxes refunded or paid, cash interest paid, amortization of GCI capacity revenue, cash severance expense for the Company's former Chief Executive Officer, and cash receipts and payments, deferred costs and amortized revenue and expense associated with certain prefunded special projects as defined in the 2019 Senior Credit Facility. Amortization of deferred revenue associated with our interconnection agreement with GCI is excluded from Adjusted Free Cash Flow because no cash was received by the Company in connection with this agreement. Amortization of all other deferred revenue, including that associated with other IRU capacity arrangements, is included in Adjusted Free Cash Flow because cash was received by the Company, typically at contract inception, and is being recognized as revenue over the term of the relevant agreement.

See Schedule 3 for Net cash provided by operating activities, Net cash used by investing activities, and Net cash used by financing activities.

See Schedule 5 for the reconciliation of net cash provided by operating activities to Adjusted Free Cash Flow.

Schedule 7

     
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
REVENUE BY CUSTOMER GROUP
(Unaudited, In Thousands)
     
 

Three Months Ended

Twelve Months Ended

 

December 31,

December 31,

 

2020

2019

2020

2019

Business and wholesale revenue    
Business broadband 

$

16,288

 

$

15,427

 

$

64,238

 

$

61,785

Business voice and other 

7,189

 

7,218

 

28,936

 

28,660

Managed IT services 

1,148

 

1,529

 

5,052

 

6,494

Equipment sales and installations 

4,800

 

1,868

 

9,508

 

4,698

Wholesale broadband 

12,456

 

11,321

 

49,878

 

43,310

Wholesale voice and other 

1,282

 

929

 

5,256

 

5,617

     
Total business and wholesale revenue 

43,163

 

38,292

 

162,868

 

150,564

Growth in business and wholesale 

12.7

%

  

8.2

%

 
Consumer revenue    
Broadband 

6,706

 

6,709

 

27,180

 

26,589

Voice and other 

2,245

 

2,484

 

9,379

 

10,431

     
Total consumer revenue 

8,951

 

9,193

 

36,559

 

37,020

     
Total business, wholesale, and consumer revenue 

52,114

 

47,485

 

199,427

 

187,584

Growth in business, wholesale and consumer revenue 

9.7

%

  

6.3

%

 
Growth in broadband revenue 

6.0

%

  

7.3

%

 
     
Regulatory revenue    
Access 

5,295

 

5,853

 

21,448

 

24,416

High cost support 

4,924

 

4,924

 

19,694

 

19,694

     
Total regulatory revenue 

10,219

 

10,777

 

41,142

 

44,110

     
Total revenue 

$

62,333

 

$

58,262

 

$

240,569

 

$

231,694

Growth in total revenue 

7.0

%

  

3.8

%

 

Growth Revenues: Business broadband, Managed IT services, Equipment sales and installations, Wholesale broadband, and Consumer broadband

Legacy Revenues: Business voice and other, Wholesale voice and other, Consumer voice and other, and Access

CAF II Revenues: High Cost Support

Schedule 8

    
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
KEY OPERATING STATISTICS
(Unaudited)
    
 

Three Months Ended

 

December 31,

September 30,

December 31,

 

2020

2020

2019

    
Voice:   
Business access lines 

65,294

 

66,253

 

68,242

Consumer access lines 

20,578

 

21,229

 

22,829

    
Voice ARPU business 

$

28.61

 

$

27.98

 

$

26.56

Voice ARPU consumer 

$

34.77

 

$

34.13

 

$

33.90

    
Broadband:   
Business connections 

14,652

 

14,672

 

14,880

Consumer connections 

30,598

 

32,012

 

31,480

    
Broadband ARPU business 

$

371.60

 

$

364.04

 

$

343.83

Broadband ARPU consumer 

$

72.84

 

$

72.41

 

$

70.81

    
Monthly Average Churn:   
Business voice 

0.4

%

 

0.9

%

 

0.7

%

Consumer broadband 

1.5

%

 

3.0

%

 

2.9

%

Consumer voice 

1.1

%

 

1.1

%

 

1.3

%

    
Schedule 9
   
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
LONG TERM DEBT AND NET DEBT
(Unaudited, In Thousands)
  

 

December 31,

 

December 31,

 

2020

 

2019

2019 senior secured credit facility due 2024 

$

168,896

 

$

177,750

Debt discount - 2019 senior secured credit facilities due 2024 

(1,523

)

 

(2,234

)

Debt issuance costs - 2019 senior secured credit facilities due 2024 

(1,341

)

 

(1,863

)

Capital leases and other long-term obligations 

2,676

 

2,729

Total debt 

168,708

 

176,382

Less current portion 

(9,067

)

 

(8,906

)

Long-term obligations, net of current portion 

$

159,641

 

$

167,476

   
Total debt 

$

168,708

 

$

176,382

Plus debt discounts and debt issuance costs 

2,864

 

4,097

Gross debt 

171,572

 

180,479

Cash and cash equivalents 

(19,644

)

 

(26,662

)

Net debt 

$

151,928

 

$

153,817

Contacts:

Media Contact
Heather Cavanaugh, 907-564-7722
Director, External Affairs and Corporate Communications

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.