Exhibit 99
Contact: | | Curtis A. Sampson, Chairman and Chief Executive Officer |
| | Steven H. Sjogren, President |
| | Paul N. Hanson, Vice President and Treasurer |
For Immediate Release
Hector Communications Corporation Reports Revenues and Earnings for 2005 Third Quarter
November 7, 2005—Hector, MN—Hector Communications Corporation (AMEX: HCT) today reported operating results for its third quarter and nine month periods ended September 30, 2005. Revenues were $8,133,000 for the three months ended September 30, 2005, an increase of 4% from $7,806,000 in 2004. The revenue increase was mainly due to cost study settlement payments from NECA and revenues from new access agreements negotiated with wireless carriers. Operating income increased 8% to $2,078,000 compared to $1,923,000 in 2004. Income from the Company’s investment in Midwest Wireless Holdings LLC was $1,238,000 in the 2005 period compared to $843,000 in 2004. Net income was $1,677,000 or $.41 per diluted share in 2005 compared to $1,294,000 or $.32 per diluted share in 2004.
Revenues were $23,640,000 for the nine months ended September 30, 2005, down a fraction of a percent from $23,743,000 in 2004. Operating income increased 5% to $5,607,000 compared to $5,356,000 in 2004. Income from the Company’s investment in Midwest Wireless Holdings LLC was $3,605,000 in the 2005 period compared to $2,151,000 in 2004. Net income was $4,556,000 or $1.12 per diluted share in 2005 compared to $3,442,000 or $.87 per diluted share in 2004.
Curtis A. Sampson, Chairman and Chief Executive Officer, said “Our outlook on our industry has not changed. Our core business, wireline telephone service in rural communities, will continue to face significant challenges. Hector’s investment in Midwest Wireless is the engine that has driven the Company’s earnings growth for several years and especially in 2005. Recently, Midwest Wireless announced that it is engaged in a process that could lead to the sale of the Company. If a sale occurs, Hector’s share of the sale proceeds will give us unprecedented ability to reward our shareholders and/or make strategic investments. The management and Board of Directors of the Company continue to assess all strategic options available to us as we await the results of the Midwest Wireless sales process.”
Hector Communications Corporation is a telecommunications holding company that, through its subsidiaries, provides local telephone, video and high-speed Internet service in rural communities in Minnesota, Wisconsin and North Dakota. The Company serves 29,060 telephone access lines, 7,950 cable television subscribers and 11,040 Internet customers and has minority ownership interests in other telecommunications companies.
From time to time in reports filed with the Securities and Exchange Commission, in press releases, and in other communications to shareholders and the investing public, the Company may make statements regarding the Company’s future financial performance. Such forward looking statements are subject to risks and uncertainties, including but not limited to, the effects of the Telecommunications Act, new technological developments which may reduce barriers for competitors entering the Company’s local exchange or cable television markets, higher than expected expenses and other risks involving the telecommunications industry generally. All such forward-looking statements should be considered in light of such risks and uncertainties.
