EXHIBIT 99.2
[CTC LOGO]
News Release
For Further Information Contact
John D. Pittenger
Executive Vice President,
Finance & Administration
781-466-1302
Internet: http://www.ctcnet.com
June 2, 1998
FOR IMMEDIATE RELEASE
CTC COMMUNICATIONS CORP.
REPORTS YEAR END RESULTS
------------------------
Waltham, Massachusetts--CTC Communications Corp. (NASDAQ-CPTL), today reported
results for the fourth quarter and year ended March 31, 1998.
The Company announced a net loss of $2,884,000 or $0.29 per share, on revenues
of $40,947,000 for the fiscal year ended March 31, 1998, as compared to net
income of $4,683,000 or $0.43 per share, on revenues of $40,290,000 for the
fiscal year ended March 31, 1997.
For the fourth quarter ended March 31, 1998, the Company reported revenues of
$6,287,000 and a net loss of $6,008,000 or $0.60 per share, as compared to
revenues of $11,472,000 and net income of $1,281,000 or $0.12 per share, for the
comparable period of Fiscal 1997.
The results for the quarter and year ended March 31, 1998, reflect the Company's
decision to terminate its agency relationship with Bell Atlantic in December
1997 and commence operation as an integrated communications provider (ICP). As a
result of this transition, gross margins for the fourth quarter were negatively
impacted due to fixed costs associated with the sale of local telecommunications
services, lower long distance rates extended to customers in advance of
decreases from its long distance supplier, increased costs associated with
adding new customers and services, and costs associated with the termination of
its debit card program. The company believes that gross margins for the fourth
quarter are not representative and expects gross margins to improve in future
quarters.
Robert Fabbricatore, Chairman and Chief Executive Officer of CTC Communications
Corp. stated that he was pleased with the progress made during the Company's
first quarter as an ICP.
"In our first three months on this platform, we sold 21,613 and provisioned
17,637 access line equivalents to primarily new customers for CTC," said Mr.
Fabbricatore. "There is a tremendous market opportunity in our footprint that is
growing each year. We believe that our fourteen years of telecommunications
experience uniquely positions us as an integrated communications provider in our
markets."
THREE MONTHS ENDED
------------------
March 31, 1998 March 31, 1997
-------------- --------------
Network Service Revenue
Commissions $ 194,050 $ 8,353,961
Resale 6,093,391 3,117,823
-------------- --------------
Total Revenues $ 6,287,441 $ 11,471,784
Cost of resale revenues 5,943,479 2,615,084
Selling, general and administrative expenses 10,121,930 6,761,888
Income/(Loss) from Operations (9,777,968) 2,094,812
Income/(Loss) before income taxes (9,683,451) 2,158,717
EBITDA (9,110,102) 2,330,707
Net Income (Loss) $ (6,008,451) $ 1,280,917
Earnings Per Share $ (0.60) $ 0.12
Weighted Shares Outstanding 9,976,915 10,654,661
THREE MONTHS ENDED
------------------
March 31, 1998 March 31, 1997
-------------- --------------
Network Service Revenue
Commissions $ 24,775,420 $ 29,195,261
Resale 16,171,716 11,094,838
-------------- --------------
Total Revenues $ 40,947,136 $ 40,290,099
Cost of resale revenues 14,038,565 8,709,122
Selling, general and administrative expenses 31,491,963 23,819,714
Income/(Loss) from Operations (4,583,392) 7,761,263
Income/(Loss) before income taxes (4,370,450) 7,959,931
EBITDA (3,165,526) 8,504,158
Net Income (Loss) $ (2,884,450) $ 4,682,931
Earnings Per Share $ (0.29) $ 0.43
Weighted Shares Outstanding 9,886,000 10,773,000
CTC Communications Corp. is a rapidly growing provider of integrated
communications solutions to small and medium sized business customers in the
Northeastern U.S. It provides an extensive array of voice and data services
including local, long distance, enhanced telephone services, frame relay,
Internet access, and T1 and ISDN services. The Company markets its services
through its 175 member direct sales force throughout Massachusetts, New York,
Connecticut, New Hampshire, Vermont, Rhode Island and Maine. CTC's headquarters
is in Waltham, MA, and CTC can be found on the World Wide Web at ctcnet.com.
The statements in this press release that relate to future plans, events or
performance are forward-looking statements that involve risk and uncertainties
that could cause actual results to differ materially from those reflected in the
forward-looking statements. readers are, accordingly, cautioned not to place
undue reliance on these forward-looking statements, which speak only as to the
date hereof. Additional information about these risks and uncertainties is set
forth in the Company's most recent report on Form 10-K. CTC undertakes no
obligation to release publicly the results of any revisions to these
forward-looking statements that may be made to reflect results, events or
circumstances after the date hereof.