ITC^Deltacom Reports Q3 634628

HUNTSVILLE, Ala. -- ITC^DeltaCom, Inc. (OTC: ITCD.OB - News), a leading provider of integrated communications services to customers in the southeastern United States, today reported its operating and financial results for the quarter ended September 30, 2006. For the quarter ended September 30, 2006, ITC^DeltaCom reported total operating revenues of $124.1 million, a net loss of $11.9 million, and net earnings before interest, taxes, depreciation and amortization (EBITDA)* of $17.5 million.

Among its operating highlights for the third quarter, ITC^DeltaCom:

"We continue to make solid progress in improving our operating performance," said Randall E. Curran, ITC^DeltaCom's Chief Executive Officer. "Our continued focus on improving our customer's experience and our commitment to the development of new products and solutions to meet customer demands, such as our Simpli-Business offering, is manifesting itself in improved results."

On October 27, 2006, the Company announced that it had (i) entered into an agreement for the private placement of an additional $21 million principal amount of first lien, senior secured notes, which will provide liquidity to fund growth and continued investment in the Company's network; and, (ii) negotiated modified payment terms on its $7.1 million unsecured note that had been payable in full on October 31, 2006, to pay $2.27 million of principal on October 31, 2006, extend payment of $2.4 million of principal over 36 monthly installments beginning November 2006, and defer payment of $2.4 million of principal to October 2009. On November 10, 2006, the Company closed the private placement of $21 million in additional first lien, senior secured notes.

"We're pleased to report significant increases in both reported gross margin to 50.5% and EBITDA to $17.5 million for the third quarter," said Richard E. Fish, Executive Vice President and Chief Financial Officer. "The additional funding provided by the issuance of the new senior notes significantly enhances the Company's liquidity profile and will allow us to aggressively continue our growth strategy."

ITC^DeltaCom Inc. (Nasdaq: ITCD)