EXHIBIT 99.1
FOR IMMEDIATE RELEASE
For additional information contact: Arthur Dague
(203) 329-5094
adague@czn.com
CITIZENS UTILITIES' FIRST-QUARTER 1997 EARNINGS AFFECTED BY
COMMUNICATIONS SECTOR EXPANSION AND MARKETING ACTIVITIES
Stamford, Connecticut, April 30, 1997-- Citizens Utilities' vice
president and treasurer, Robert J. DeSantis, announced today that earnings and
earnings per share for the first quarter ended March 31, 1997 were impacted by
expansion and marketing activities at its Citizens Communications sector.
Revenues for the 1997 first quarter were $372.5 million compared with
$329.1 million for the same period last year. Earnings for the 1997 first
quarter were $30.2 million compared with $38.9 million in last year's first
quarter. Earnings per share were 13 cents compared with 16 cents in the 1996
first quarter.
Citizens Communications and Citizens Public Services sectors both
achieved double-digit increases in revenues. Mr. DeSantis emphasized that,
"Citizens Communications' revenues grew 20%, with revenues from long distance
service and Electric Lightwave increasing 219% and 81%, respectively, in the
first quarter. The success we are experiencing in Citizens Communications'
revenue growth, while still below our expectations, is consistent with our
previously announced plan to deploy a national distribution network and to
establish a strong brand identity."
"Increasing communications revenue and revenue opportunities require
additional expenses and capital expenditures in 1997 and 1998 to deploy and
support Citizens' national distribution network and branding initiative. It is
fairly simple," Mr. DeSantis stated, "the market is asking for our services and
we are acting now so that we do not miss these revenue opportunities."
While Citizens' earnings in its core local exchange and public services
businesses continued to grow at a healthy rate, first-quarter 1997 earnings
reflect the impact of increased network, sales, marketing and operational
systems support expenses relating to the expansion of Citizens Communications.
Mr. DeSantis added, "Earnings will most likely continue to reflect increased and
accelerated expenses and capital expenditures during 1997 and 1998 to ensure
that Citizens emerges as a formidable and integrated communications company and
is fully prepared for increasing competition. Citizens' Board of Directors and
management team believe that the expected long-term benefits of this strategy
considerably outweigh any short-term impact on 1997 and 1998 earnings and
earnings per share, which will likely be below 1996 levels."
Citizens (NYSE: CZNA, CZNB) provides telecommunications and public
services to approximately 1.6 million customers in 22 states. Citizens
Communications, one of the nation's fastest-growing communications companies,
operates an integrated national distribution network over which it provides
local, long distance, paging, cellular, network sales and other communications
products and services. Citizens also has investments in Centennial Cellular
Corp. (NASDAQ: CYCL) and Hungarian Telephone and Cable Corp. (ASE: HTC) and owns
Electric Lightwave, Inc., a leading competitive provider of telecommunications
services for business and long distance carriers in the western United States.
Tables follow and additional information about Citizens Utilities is
available on the Internet at http://www.czn.net.
Citizens Utilities Company and Subsidiaries
Consolidated Financial Data
(unaudited)
For the quarter ended
March 31,
-----------------------------------
%
(Dollars in thousands) 1997 1996 Change
------------------------------------------------
Income Statement Data
Revenues $ 372,492 $ 329,138 13%
Natural gas, electric energy and fuel oil purchased 80,759 68,361 18%
Sales and marketing expenses 14,134 5,336 165%
Network expenses 29,094 7,779 274%
Depreciation 56,566 47,030 20%
Other operating expenses 129,858 129,640 -
Total operating expenses 310,411 258,146 20%
Operating income 62,081 70,992 -13%
Investment and other income 12,284 11,047 11%
Interest expense 27,016 22,003 23%
Income taxes 15,627 19,927 -22%
Convertible preferred dividends 1,552 1,253 24%
Net income $ 30,170 $ 38,856 -22%
Earnings per share (1) $ 0.13 $ 0.16 -19%
(1) Adjusted for subsequent stock dividends.