Company Logo Exhibit 99.1
Citizens Utilities
3 High Ridge Park
Stamford, CT 06905
203.614.5600
Web site: www.czn.net
FOR IMMEDIATE RELEASE
Contacts:
Financial Community: Media:
- ------------------- -----
Alan H. Oshiki, Assistant Vice President Brigid M. Smith, Assistant Vice
Investor Relations President Corporate Communications
(203) 614-5629 (203) 614-5042
aoshiki@czn.com bsmith@czn.com
CITIZENS UTILITIES REPORTS
1999 YEAR END AND FOURTH QUARTER
FINANCIAL RESULTS
STAMFORD, Conn., March 21, 2000 - Citizens Utilities (NYSE: CZN) today reported
financial results for the year and quarter ended December 31, 1999.
1999 revenues from continuing operations were $1.1 billion, up 17% from last
year's level. This growth was driven by an 8% increase in telecommunications
revenues, which totaled $903 million for the year, and an 88% increase in
revenues from Electric Lightwave, Inc. (NASDAQ:ELIX), which reached $184 million
for 1999. Fourth quarter 1999 revenues from continuing operations were $277
million, 12% higher than the prior year. Telecommunications revenues were $224
million and Electric Lightwave's revenues were $53 million.
1999 telecommunications EBITDA was $380 million, up 12% over the prior year.
Electric Lightwave's 1999 EBITDA loss was $58 million, a 2% improvement over
1998. 1999 EBITDA for continuing operations totaled $345 million, an 8% increase
over the prior year. Fourth quarter 1999 telecommunications EBITDA was $99
million, up 16% over the fourth quarter of 1998. Electric Lightwave's EBITDA
loss was $9 million, a 56% improvement over the prior year quarter. Fourth
quarter 1999 EBITDA for continuing operations was $91 million, an increase of
18% over the prior year period. Including discontinued operations, the company
generated $499 million and $133 million of EBITDA for the full year and fourth
quarter 1999, respectively. All EBITDA figures exclude special items.
Net income for 1999 was $144 million, or 55 cents per share, up 153% from last
year's net income of $57 million, or 22 cents per share, primarily due to gains
on the sales of investments. Net income for the year includes $98 million, or 38
cents per share, in special items.
Net income for the fourth quarter was $70 million, or 27 cents per share,
compared to $1.4 million, or 1 cent per share, in the fourth quarter of 1998.
Fourth quarter 1999 net income includes $58 million, or 22 cents per share, in
special items.
Commenting on the results, Citizens Vice President and Chief Financial Officer
Robert J. DeSantis said, "As we transition Citizens into a communications
company, we are extremely pleased by the solid financial performance of our
telecommunications operations. We anticipate enhanced revenue and EBITDA growth
in 2000 from our existing operations and properties to be acquired."
Regarding Electric Lightwave, Mr. DeSantis said, "The rapid revenue growth in
1999 coupled with higher margins were well above expectations. We expect this
trend to continue in 2000, which will result in positive EBITDA for Electric
Lightwave later this year."
Citizens Utilities provides telecommunications services and public utility
services to 1.9 million customers in 22 states. Citizens also owns 82% of
Electric Lightwave, Inc. (NASDAQ: ELIX), a facilities-based, integrated
communications provider that offers a broad range of services to
telecommunications-intensive businesses throughout the United States. To fund
its expansion in the telecommunications business, the company will use the
proceeds of its previously announced public utility divestitures. More
information about Citizens can be found at www.czn.net.
This document contains forward-looking statements that are subject to risks and
uncertainties that could cause actual results to differ materially from those
expressed or implied in the statements. These and all forward-looking statements
(including oral representations) are only predictions or statements of current
plans that are constantly under review by the company. All forward-looking
statements may differ from actual results because of, but not limited to,
changes in the local and overall economy, changes in market conditions for debt
and equity securities, the nature and pace of technological changes, the number
and effectiveness of competitors in the company's markets, success in overall
strategy, changes in legal or regulatory policy, changes in legislation, the
company's ability to identify future markets and successfully expand existing
ones, the mix of products and services offered in the company's target markets,
the effects of acquisitions and dispositions and the ability to effectively
integrate businesses acquired. These important factors should be considered in
evaluating any statement contained herein and/or made by the company or on its
behalf. The foregoing information should be read in conjunction with the
company's filings with the U.S. Securities and Exchange Commission including,
but not limited to, reports on Forms 10-K and 10-Q. The company does not intend
to update or revise these forward-looking statements to reflect the occurrence
of future events or circumstances.
(Table to Follow)
Citizens Utilities Company and Subsidiaries
Consolidated Financial Data
(unaudited)
For the quarter ended For the year ended
December 31, December 31,
-------------------------- -------------------------
% %
(Amounts in thousands - except per-share amounts) 1999 1998 Change 1999 1998 Change
-------------------------------------- --------------------------------------
Income Statement Data
Revenues from continuing operations (1) $ 277,215 $ 247,483 12% $ 1,087,428 $ 932,858 17%
Income (loss) from continuing operations (1) 61,368 (16,319) 476% 117,127 20,532 470%
Income from discontinued operations 8,832 17,677 -50% 27,359 36,528 -25%
Net income 70,200 1,358 5069% 144,486 57,060 153%
EBITDA Data (2)
EBITDA from continuing operations $ 90,587 $ 76,694 18% $ 345,280 $ 318,918 8%
EBITDA from discontinued operations 42,681 42,217 1% 153,375 159,053 -4%
Total Company EBITDA 133,268 118,911 12% 498,655 477,971 4%
Per-Share Data
Basic net income per share of common stock $ 0.27 $ 0.01 2600% $ 0.55 $ 0.22 150%
EBITDA per share from continuing operations (2) $ 0.35 $ 0.30 17% $ 1.32 $ 1.23 7%
EBITDA per share from discontinued operations (2) $ 0.16 $ 0.16 0% $ 0.59 $ 0.62 -5%
Total Company EBITDA per share (2) $ 0.51 $ 0.46 11% $ 1.91 $ 1.85 3%
Weighted average shares outstanding 261,448 259,679 1% 260,613 258,879 1%
(1) The Company's Telecommunications and CLEC (Competitive Local Exchange Carrier) businesses. The Company is reporting its
Public Services businesses as discontinued operations.
(2) EBITDA is operating income plus depreciation plus investment and other income and excludes special items.
For 1999, special items include asset impairment charges, accelerated depreciation related to the change in useful
life of an operating system, costs associated with an executive retirement agreement, restructuring charges,
pre-acquisition integration costs and separation costs. Special items for 1999 also include gains on the sales of
Centennial Cellular stock, Century Communications Corp. stock and the disposition of an interest in a cable joint venture.
For 1998, special items include separation costs, the write down of the Company's investment in HTCC and the cumulative
effect of a change in accounting principle for ELI.