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
Contact:
Alan Oshiki, Assistant Vice President
Investor Relations
(203) 614-5629
aoshiki@czn.com
CITIZENS UTILITIES REPORTS FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2000
STAMFORD, Conn., May 15, 2000 - Citizens Utilities (NYSE: CZN) today reported
financial results quarter ended March 31, 2000.
First quarter revenue from continuing operations, net of intercompany
eliminations, was $282.5 million, up 7% from $264.8 million in the first quarter
of 1999. Revenue growth was driven by a 49% increase in revenue from the
company's competitive local exchange carrier subsidiary, Electric Lightwave,
Inc. (NASDAQ:ELIX). Electric Lightwave's revenue totaled $56.8 million for the
quarter compared to $38.2 million for the prior year period. Telecommunications
revenue from the company's incumbent local exchange carrier subsidiaries was
$226.3 million, as compared to $227.2 million for the 1999 first quarter, which
contained a $10 million, one-time subsidy settlement. Exclusive of the one-time
subsidy settlement, Telecommunications revenue for the quarter increased by $9.5
million or 4% over the first quarter of 1999.
First quarter 2000 EBITDA (earnings before interest, taxes, depreciation and
amortization) from continuing operations, net of intercompany eliminations,
totaled $95.5 million, a 38% increase over the prior year quarter.
Telecommunications EBITDA for the quarter was $102.0 million, up 11% from $91.5
million in the prior year period. First quarter Telecommunications EBITDA was
impacted by $3.9 million of assimilation expense related to the pending
acquisition of approximately one million telephone access lines. Absent this
expense EBITDA increased to $105.9 million, which equates to an EBITDA margin of
47%. Absent the one-time subsidy settlement in the comparable quarter last year,
EBITDA increased approximately 31% quarter over quarter.
Electric Lightwave's first quarter EBITDA loss was $6.7 million, a 71%
improvement over the $22.8 million loss of the year ago quarter.
Citizens' net income for first quarter was $7.3 million, or 3 cents per share,
compared to net income of $11.7 million, or 5 cents per share excluding the gain
on the sale of investments, in the first quarter of 1999.
Commenting on the results, Citizens' president and chief operating officer Rudy
Graf said, "As we continue Citizens' transition to a communications company, we
are very pleased with the ongoing performance improvements at our
Telecommunications operations and at Electric Lightwave. The improvement in our
Telecommunications EBITDA margin to 47% over the past twelve months demonstrates
management's focus on and commitment to maximizing the operating performance of
our existing telecommunications operations. We anticipate double-digit growth in
Telecommunications EBITDA to continue throughout the rest of the year. At
Electric Lightwave, we expect revenue growth of about 50% in 2000 and positive
EBITDA in the second half of this year."
Citizens Utilities provides telecommunications services to more than one million
customers in 13 states. In 1999, Citizens agreed to purchase approximately one
million additional access lines in transactions that will begin to close in
mid-2000. 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. In May 2000, Citizens Utilities will change its name to Citizens
Communications. 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
March 31,
--------------------------
%
(Amounts in thousands - except per-share amounts) 2000 1999 Change
---------------------------------------
Income Statement Data
Revenues from continuing operations (1) $ 282,455 $ 264,750 7%
Operating income from continuing operations (2) 12,792 7,132 79%
Income from discontinued operations, net of tax 12,447 13,235 -6%
Net income (2) 7,326 11,730 -38%
EBITDA and Capital Expenditure Data (3)
EBITDA from continuing operations $ 95,497 $ 69,017 38%
EBITDA from discontinued operations 47,167 42,947 10%
Total Company EBITDA 142,664 111,964 27%
EBITDA from continuing operations before acquisition assimilation expenses 99,471 69,017 44%
Per-Share Data (4)
Basic net income per share of common stock (2) $ 0.03 $ 0.05 -40%
EBITDA per share from continuing operations 0.36 0.27 33%
EBITDA per share from discontinued operations 0.18 0.17 6%
Total Company EBITDA per share 0.54 0.43 26%
EBITDA per share from continuing operations before acquisition assimilation expenses 0.38 0.27 26%
Weighted average shares outstanding 262,718 259,701 1%
(1) Continuing operations are comprised of the Company's Telecommunications and Electric Lightwave, Inc. (ELI), our Competitive
Local Exchange Carrier (CLEC) businesses. The Company is reporting its Public Services businesses as discontinued operations.
(2) Excludes 1999 gain on sale of investment.
(3) Operating income plus depreciation and amortization.
(4) Calculated based on weighted average shares outstanding.