LICT - LICT Corp

[JAllen]

I don't know the exact rules about share buybacks during merger negotiations.  I know some of the same rules apply to non-SEC-registered companies, and some don't. 

 

 

But regardless, they've only repurchased a few shares since June, so I don't think that's too relevant, unless the reason why is they've been having talks since June.  But that's not the case since they announced the talks 8/28, I believe.

[accutronman]

Interesting.

 

 

LICT Announces Placement of a $30 Million Revolving Credit Facility

 

RYE, N.Y., Dec. 31, 2014 /PRNewswire via COMTEX News Network/ --

LICT Corporation (Pink Sheets®:"LICT") is announcing that its wholly-owned subsidiary,

Brighton Communications Corporation, has obtained a $30 million revolving credit

facility from CoBank, ACB.  The facility matures on December 30, 2017 and replaces

LICT's current $25 million facility. The new credit facility will allow for an expanded

share repurchase program and other potential shareholder and operational initiatives.

 

Robert E. Dolan, LICT's Executive Vice President and Chief Financial Officer

said, "We are pleased to have reached agreement with CoBank for this new facility

and to continue our long association with them. The facility provides us with increased

financial flexibility and adequate liquidity for our current corporate purposes.

As always, we continue to reevaluate our overall financial structure with an eye

toward optimal fit within our strategic direction."

[mbrock77]

Looks like LICT didn't get any spectrum in the FCC 97 auction

[wknecht]

Pretty unusual price action today (-20%).  I'm wondering if this is a liquidity thing or if there's some news I'm missing?

[no_thanks]

I was looking at that as well.  I noticed that my position went long term 6 days ago, which is about a year from when it first moved up on the news release someone tried to buy them.  Just a strange coincidence maybe?

[wknecht]

I spoke to the company, they didn't know either. They mentioned the net neutrality ruling, but said they're not sure this will impact them, and also that other telcos aren't falling.

[krazeenyc]

wish I was the lucky SOB who bought the shares at $3800.

[mbrock77]

Q4 earnings out:

 

http://finance.yahoo.com/news/lict-corporation-reports-preliminary-fourth-130000150.html

 

Guidance for 2015 is flat, but it's still cheap (<4 EV/EBITDA & <1 DEBT/EBITDA). Hope they manage to buyback more than 220 shares this year..

 

[mbrock77]

Fancy new website. Plus or minus?

 

http://lictcorp.com

[mbrock77]

CAF-II news out from the FCC

 

http://www.fiercetelecom.com/story/centurylink-frontier-others-expand-rural-broadband-fccs-17b-connect-america/2015-04-30

 

http://transition.fcc.gov/Daily_Releases/Daily_Business/2015/db0429/DA-15-509A1.pdf

[mbrock77]

Q2 earnings out:

 

https://finance.yahoo.com/news/lict-corporation-reports-second-quarter-164100497.html

 

Everything looks in-line with guidance. Some new items popped up in the report:

 

IOWA EXPANSION – The Company is also announcing that Dixon Acquisition, LLC ("Dixon Acquisition"), a single-member limited liability company owned by Central Scott Telephone Company ("Central Scott"), a wholly-owned subsidiary of LICT, is acquiring the assets and operations of Dixon Telephone Company ("Dixon") in eastern Iowa.  Dixon provides broadband data, video and voice communications to four communities that are geographically adjacent to Central Scott's franchised service territory.  The transaction must be approved by a majority vote of Dixon's shareholders and by regulatory authorities before it can close. Financial terms of the transaction are not being disclosed at this time.

 

SHARE REPURCHASES – During the six months ended June 30, 2015, the Company repurchased 205 shares for $1.1 million at an average price of $5,204 per share. We have 550 shares left in our 1,000 share buyback authorization.  As of June 30, 2015, 22,156 shares were outstanding.  We note that 89 shares were issued in March 2015 under the Company's Restricted Stock Plan.  In addition, the Company is currently considering the possibility of an offer to repurchase stock on a no transaction fee basis from shareholders owning, for example, 5 shares or less.

 

BUSINESS INITIATIVES –The Board of Directors and management have implemented measures which have improved liquidity and reduced the Company's debt position.  At this time, the Board is considering whether the Company should acquire additional leverage which would enable us to explore broader opportunities both within and outside our current industry segments.

[mbrock77]

Some comments by Robert Dolan on the Dixon acquisition (source: http://www.telecompetitor.com/rural-telecom-consolidation-lict-exec-shares-dixon-central-scott-strategy/)

 

LICT will continue to look at acquisitions in the rural telecom market, Dolan said. “In this day and age we are more focused on acquisitions closer to our current systems,” said Dolan. “We would also look at fiber and cable companies.” Dolan noted that the rural telecom business is more challenging now than it was in the past. That and other comments he made will be familiar to anyone involved in rural telecom. “We’re looking to re-balance our mix,” said Dolan. “We still want to be the premiere [telecom provider, but we also] want more non-regulated streams. We want to be less dependent on government funding mechanisms. We will [continue to] build up infrastructure, expand our revenue base and we will look at acquisitions.” Dolan added that “We like Iowa – we would like to do another deal there.”

[Moht]

In addition, the Company is currently considering the possibility of an offer to repurchase stock on a no transaction fee basis from shareholders owning, for example, 5 shares or less.

 

Any idea what this might look like?  And at what type of premium?

[mbrock77]

Q3 Earnings are out:

 

http://lictcorp.com/2015/11/09/lict-corporation-reports-third-quarter-2015-results/

 

They are reducing 2015 EBITDA guidance $2mm to $36mm. Sounds like the decline in regulated services is picking up.

 

Net debt is down to $28.8mm and they bought back 30 shares during the Q.

[mbrock77]

Q1 Earnings are out (only on OTC markets for now).

 

http://www.otcmarkets.com/stock/LICT/news/LICT-CORPORATION-REPORTS-FIRST-QUARTER-2016-RESULTS-AND-LOWERS-ESTIMATES-FOR-THE-YEAR?id=130310&b=y

 

Anyone have the scoop on the new Alternative Connect America Cost Model?

[scorpioncapital]

The company appears to generate 7 to 8 million in FCF per year for a yield of ~7%?

 

[frommi]

The company appears to generate 7 to 8 million in FCF per year for a yield of ~7%?

 

 

No, according to their latest presentation (http://lictcorp.com/files/pdf/2016SidotiPresentation.pdf) they generated 16 million FCF last year. FCF/P=15% and FCF/EV=12%. Don`t know anything cheaper at the moment and they use that FCF for something usefull like buying back shares and paying down debt. There is still uncertainty about the latest regulatory changes, but at current prices you get the regulated business for free.

[Packer16]

If you look at the 10-K it is $9.2 million (operational CF- Cap ex).  The $16 million is operation EBITDA - Cap Ex.  It excludes taxes and interest expenses.

 

Packer

[frommi]

If you look at the 10-K it is $9.2 million (operational CF- Cap ex).  The $16 million is operation EBITDA - Cap Ex.  It excludes taxes and interest expenses.

 

Packer

 

Thanks, you are probably right. Have you found anything that gives a clue if their stated amount of Cap Ex is all maintenance or did they invest in the unregulated business and put some of that into Cap Ex, too?

[mbrock77]

That's some guidance (see bold). Guess it will require extra cap-ex, but still:

 

LICT Corporation (“LICT”; OTC Pink®:LICT) reports preliminary, unaudited results for the fourth quarter and full year ended December 31, 2016.

 

FOURTH QUARTER RESULTS – In 2016, fourth quarter revenues increased by $1.4 million, or 6.2%, to $23.7 million compared to the corresponding quarter in 2015. Non-regulated revenues grew by 12.2% to $11.0 million from the prior year’s $9.8 million due to increased broadband and competitive local exchange carrier (“CLEC”) revenues. Regulated revenues rose to $12.8 million from $12.6 million in 2015, due to increased intra-state revenues, primarily at our New Mexico operation offset by lower interstate revenues at most rest of our other RLECs.

 

EBITDA before corporate costs was $9.8 million, as compared to $9.3 million in the previous year’s fourth quarter. Non-regulated EBITDA, including affiliate distributions, increased $0.7 million to $5.1 million, while regulated EBITDA declined by $0.2 million. Unallocated Corporate expenses of $649,000 were reported in the fourth quarter of 2016 as compared to $494,000 in the fourth quarter of 2015.

 

ALTERNATIVE CONNECT AMERICA COST MODEL (“A-CAM”) – As we previously disclosed, beginning in early 2017, the Federal Communications Commission (“FCC”) instituted a revised, voluntary Universal Service Fund (“USF”) mechanism for rate-of-return Incumbent Local Exchange Carriers (“ILECs”) called A-CAM. A-CAM replaces the prior Interstate Common Line Support (“ICLS”) and High Cost Loop Support (“HCLS”) cost-based methods, which were based on specific company or industry actual yearly expenditures for operations and capital. The A-CAM program was designed by the FCC to expedite the deployment of broadband capabilities throughout the nation’s rural areas, that are served by rate-of-return carriers. Seven of LICT’s nine operating areas elected to participate in A-CAM. The A-CAM program will provide a fixed amount of annual funding for a period of ten years, effective back to January 1, 2017. As part of the A-CAM model, our ILECs must meet certain service requirements over the ten-year period.

 

FULL YEAR RESULTS – For the year ended December 31, 2016, LICT recorded revenues of $90.7 million and EBITDA, prior to corporate costs but including cash received from our equity affiliates, of $36.5 million, as compared to revenues of $86.7 million and EBITDA of $36.4 million in 2015. Reflecting the A-CAM elections, the company is currently estimating that revenues in 2017 will be approximately $106 million and EBITDA, prior to corporate costs but including cash received from our equity affiliates, will be approximately $50 million.

[mbrock77]

Q1 out:

 

http://lictcorp.com/2017/04/27/lict-corporation-reports-girst-quarter-2017-results/

 

EBITDA of $11.6mm for quarter with capex of $3.6mm

 

Guiding for full year EBITDA of $49mm with $18mm of capex.

 

$10,000/share coming soon I think.....

[mbrock77]

Interesting. Looks like LICT has a (small) piece of the STRP action:

 

http://lictcorp.com/2017/05/09/lict-anticipates-liquidity-event-of-investment/

[mbrock77]

http://lictcorp.com/2017/06/01/lict-corporation-increases-share-repurchase-program-and-expands-consideration-of-financing-alternatives/

[mbrock77]

Fyi, for anyone paying attention, Q2 is out. Guidance steady and share repurchases perked up a bit. No update on the payout from the STRP investment.

 

http://lictcorp.com/files/2017/05/LICT-1st-Qtr-2017-Financials.pdf

[mbrock77]

Any thoughts on this at $12,000 shares (or am I just talking to myself here)? I'm surprised it's run up so much since the Q2 release last week. I didn't anything in the earnings that was different from the guidance they gave back in February. Could this move be all buyback-related?