NTS (News - Alert) provides the Fiber-To-The-Premise (FTTP) network in Northern Texas and Southeastern Louisiana with digital cable TV, high-speed Internet access, and local and long-distance residential and business telephone service. The company announced second-quarter results with revenues from FTTP growing by 25 percent to $5.7 million compared to $4.5 million for the same quarter in 2012.
The consolidated revenues for the quarter totaled $15.2 million and the revenues from FTTP represented 37.2 percent. The total for the first two quarters in FTTP business was up by 28.1 percent from $8.6 million the same period in 2012 to $11 million.
Adjusted EBITDAS (Earnings Before Interest, Taxes, Depreciation and Amortization) for the second quarter of 2013 was $3.7 million, a 29.8 percent increase. For the quarter ending June 30, 2013, the Company reported a net loss of $985 thousand or a loss of $0.02 per basic and diluted share.
The company is expanding services after a $99.9 million FTTP network upgrade partially funded by the Federal Broadband Stimulus Program in the form of grants and low-cost long-term loans. This expansion allowed the company to increase its customer base to 10,881 from 8,516 customers in 2012 with ARPU of $100 per months for residential customers and $349 per months for business customers.
Future growth is expected to continue as the company moves ahead with the connection of fiber customers in Abilene, Texas with a metro build, which will target 1,000 business customers bringing the total number of markets in Texas to 18. The construction of the FTTP network in Southern Lousiana will include residential and business customers in Ponchatoula, Natalbany, Tickfaw, Independence and Amite.
Construction delays in Wichita Falls and Hammond during this quarter has resulted in close to 700 high margin business customers waiting for services. The CEO said even with delays in construction in some of its service areas the quarter saw strong sales, and once the customers affected by the delay start receiving service more sales will be generated increasing third and fourth quarter growth.
"Demand for our fiber network continues to be strong, contributing to steady growth in fiber revenues and Adjusted EBITDAS. NTS now serves 18 communities in Texas and we are making progress on the build out of our network in secondary markets in Louisiana. We are particularly excited about the response we've seen from businesses in our 'metro build' markets of Wichita Falls and Abilene, Texas as well as in Hammond, Louisiana, where our focused sales and marketing initiatives are reaching their intended targets,” said Mr. Guy Nissenson, Chairman, President and CEO of NTS.
Edited by Ryan Sartor