EXHIBIT 99.1
Citizens Utilities
3 High Ridge Park
Stamford, CT 06905
203.614.5600
Web site: www.czn.net
FOR IMMEDIATE RELEASE
Contact: Alice Catalano
(203)614-5185
acatalan@czn.com
CITIZENS UTILITIES REPORTS FINANCIAL RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 1998
Stamford, Connecticut, May 5, 1998 -Citizens Utilities' announced today first
quarter 1998 financial results. Robert J. DeSantis, Citizens Utilities' chief
financial officer, reported that Citizens' Communications and Public Services
revenues for the three months ended March 31, 1998 grew 5% to $384.7 million
from the $365 million reported for the corresponding 1997 quarter. In addition,
Electric Lightwave Inc., the company's competitive local exchange subsidiary,
generated $19.2 million in revenues, a 91% increase over the $10.1 million
reported for the first quarter 1997. Citizens' consolidated first quarter 1998
revenues were $403.9 million.
Net income for the three months ended March 31, 1998 increased 8% to $39.5
million from $36.5 million for the first quarter 1997, excluding the impact of
Electric Lightwave's losses. Electric Lightwave losses impacted Citizens' first
quarter 1998 net income by $10.3 million as compared to a $5.9 million impact in
the prior year first quarter.
Earnings per share for the quarter ended March 31, 1998 increased 14% to 16
cents from 14 cents for the prior year period, excluding the impact of Electric
Lightwave's losses. Electric Lightwave's first quarter loss per Citizens share
was 4 cents compared to 2 cents for the first quarter of 1997.
Citizens consolidated earnings and earnings per share before the cumulative
effect of a change in accounting principle for Electric Lightwave were $29.1
million and 12 cents, respectively. Citizens also reported a $2.3 million
after-tax charge to reflect a cumulative effect of a change in accounting
principle for Electric Lightwave.
Mr. DeSantis stated that, "Citizens Communications operating income increased 6%
to $38 million for the quarter ended March 31, 1998 from $36 million for the
first quarter 1997 despite a reduction in first quarter 1998 operating income
due to access charge/price cap and universal service fund reforms." Mr. DeSantis
added, "Citizens Communications continues to experience strong year over year
internal growth as evidenced by its above industry average access line growth of
5%. Access lines at March 31, 1998 were 883,000 while in territory long distance
customers increased to 231,000, a 26% market share."
Commenting on Citizens Public Services, Mr. DeSantis stated, "Citizens Public
Services revenues and customers both grew 10% over prior year to $179 million
and 851,000, respectively. Citizens Public Services operating income decreased
to $32.5 million for the quarter ended March 31, 1998 from $35.3 million for the
first quarter 1997, reflecting the impact of certain rate reductions."
Mr. DeSantis stated that, "Electric Lightwave's 91% revenue growth for the first
quarter 1998 was attributable to local dial tone services and enhanced services
such as frame relay and internet. Owned and leased gross property plant and
equipment at quarter end totaled $457 million as compared to $256 million a year
earlier."
Citizens Utilities (NYSE: CZN, CZNPr) provides Communications Services and
Public Services including natural gas distribution, electric distribution, water
distribution and wastewater treatment services to approximately 1.8 million
customers in 21 states. Citizens owns 83% of Electric Lightwave,
Inc.,(NASDAQ:ELIX), a leading full-service, facilities-based integrated
communications services provider and has a significant investment in Centennial
Cellular Corp. (NASDAQ:CYCL), a cellular telephone company.
(table follows)
Citizens Utilities Company and Subsidiaries
Consolidated Financial Data
(Unaudited)
For the quarter ended
March 31,
----------------------------------
%
(Dollars in thousands, except per share data) 1998 1997 Change
-------------------------------------------------
Income Statement Data
Revenues $ 403,863 $ 375,091 8%
Cost of services 108,032 105,990 2%
Sales and marketing expenses 9,049 15,825 -43%
Depreciation and amortization 63,597 57,015 12%
Other operating expenses 166,907 133,430 25%
Operating income 56,278 62,831 -10%
Investment and other income 12,691 12,150 4%
Interest expense 26,806 27,009 -1%
Income taxes 11,498 15,836 -27%
Convertible preferred dividends 1,552 1,552 0%
Net income before cumulative effect of change in accounting principle 29,113 30,584 -5%
Cumulative effect of change in accounting principle for ELI, net of tax 2,334 -
Net income after cumulative effect of change in accounting principle 26,779 30,584
Net income excluding ELI 39,454 36,485 8%
Per-Share Data (1)
Basic net income per share of common stock (2) $ 0.12 $ 0.12 0%
Basic net income per share of common stock excluding ELI $ 0.16 $ 0.14 14%
Weighted average shares 253,151 255,677 -1%
(1) Adjusted for subsequent stock dividends and stock splits and used in the calculation of all per share data.
(2) Excludes cumulative effect of change in ELI's accounting principle.