ITC^Deltacom Reports Q3

ITC^DeltaCom reported total operating revenues of $124.8M, net loss of $135.5M

November 14, 2007

2 Min Read

HUNTSVILLE, Ala. -- ITC^DeltaCom, Inc. (BULLETIN BOARD: ITCD) , 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, 2007. For the 2007 third quarter, ITC^DeltaCom reported total operating revenues of $124.8 million, a net loss of $(135.5) million, and net loss before interest, taxes, depreciation and amortization (EBITDA)* of $19.6 million, excluding certain one-time costs and losses and stock-based compensation associated with the Company's refinancing and recapitalization consummated on July 31, 2007.

"ITC^DeltaCom now serves over 80% of its retail lines over its own network, improving profitability and allowing us to provide an enhanced customer experience," said Randall E. Curran, ITC^DeltaCom's Chief Executive Officer. "We're continuing to see strong demand for our facilities-based products, especially our Simpli-Business line of products that allow customers to integrate their voice and data services with state-of-the-art phone, printing and imaging systems as well as PCs and other equipment."

Among its operating highlights for the 2007 third quarter, ITC^DeltaCom:

  • Increased EBITDA* (excluding certain one-time costs and losses associated with the extinguishment of debt, unused equity commitment fee and non-cash stock-based compensation incurred in connection with the Company's refinancing and recapitalization consummated on July 31, 2007) to $19.6 million, which represented a 5% increase over the second quarter of 2007 and a 12% increase over the third quarter of 2006;

  • Reported continued improvement in operating performance, as cost of services and equipment, excluding depreciation and amortization, was reduced from 49.5% percent of total revenue for the third quarter of 2006 to 47.2% of total revenue for the third quarter of 2007 as a result of on-going efforts to increase network efficiencies;

  • Grew its core, facilities-based retail business voice lines in service by approximately 11,700 lines, representing an annualized growth rate of approximately 15%, ending the 2007 third quarter with 411,612 total retail business voice lines;

  • Increased the percentage of retail business voice lines for which service is provided on the Company's own network to 80% at September 30, 2007, up from 74% at the end of the third quarter of 2006;

  • Increased business local, data and internet revenues by $1.8 million, or 2.3%, over the second quarter of 2007 and by $5.9 million, or 7.9%, over the third quarter of 2006;

  • Reported continued improvement in its equipment sales and related services revenue, with revenues increasing 12% over the second quarter of 2007; and

  • Generated $13.1 million in unlevered free cash flow*, excluding $9.9 million in accrued interest paid in the quarter as a result of the Company's refinancing consummated on July 31, 2007.

"Our strong operating performance in the third quarter reflects the results of our on-going program to improve network efficiencies as well as the continued growth in our customer base and core local revenue," said Richard E. Fish, Executive Vice President and Chief Financial Officer. "We're very pleased with the positive progression in our third quarter operating results."

ITC^DeltaCom Inc. (Nasdaq: ITCD)

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