UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of The Securities Exchange Act of 1934
|
Date of Report (Date of earliest event reported): |
May 1,
2012
|
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC
.
(Exact
name of registrant as specified in its charter)
|
Delaware |
000-28167 |
52-2126573 |
||
|
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
|
600 Telephone Ave., Anchorage, Alaska |
99503 |
|
|
(Address of principal executive offices) |
(Zip Code) |
|
Registrant’s telephone number, including area code |
907 - 297 - 3000 |
| (Former name or former address, if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02 |
Results of Operations and Financial Condition. |
On May 1, 2012, Alaska Communications Systems Group, Inc. (the “Company”) reported its financial results for the quarter ended March 31, 2012. The press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
Pursuant to General Instruction B.2 of Form 8-K, the information in this
Item 2.02 is being furnished to the Securities and Exchange Commission
and shall not be deemed to be “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934 or otherwise subject to the liabilities
of that section. Furthermore, the information in this Item 2.02 shall
not be deemed to be incorporated by reference into the filings of the
Corporation under the Securities Act of 1933.
|
Item 9.01 |
Financial Statements and Exhibits. |
|
Exhibit No. |
Description |
| Exhibit 99.1 | Alaska Communications Systems Group, Inc. Press Release dated May 1, 2012. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
Date: May 1, 2012 |
Alaska Communications Systems Group, Inc. |
|
|
|
/s/ Leonard A. Steinberg |
|
|
Leonard A. Steinberg |
||
|
Corporate Secretary |
||
Exhibit 99.1
Alaska Communications Systems Reports First Quarter 2012 Results
ANCHORAGE, Alaska--(BUSINESS WIRE)--May 1, 2012--Alaska Communications Systems Group, Inc. (“ACS”) (NASDAQ:ALSK) today reported financial results for its first quarter ended March 31, 2012.
“We are in the early stages of executing on our business plan and our results reflect the impact of initial investments we have made in our business. This quarter also saw the launch of several new products, including the most recent launch of the iPhone. We remain focused on executing to our business plan which is all about driving top line growth and de-levering the balance sheet,” said Anand Vadapalli, Alaska Communications president and CEO.
Financial Highlights: First Quarter 2012 Compared to First Quarter 2011
Metric Highlights: First Quarter 2012 Compared to Fourth Quarter 2011
“We are reporting our results to reflect the way we manage ACS. The press release presents revenue categorized by our targeted customer groups. These customer groups consist of business and wholesale, consumer, wireless, and access and CETC. We are reporting EBITDA on a consolidated basis and are no longer reporting wireline and wireless segments. We also began the process of delevering our balance sheet, and reduced our level of debt by $5.3 million in the first quarter,” said Wayne Graham, ACS chief financial officer.
“We are pleased with the early success of the iPhone, which was launched April 20, 2012. Given higher equipment subsidies associated with this device we believe previous guidance on EBITDA and free cash flow will be impacted. Once we have a more extended selling period to make an accurate assessment, we will provide updated guidance numbers,” concluded Graham.
Conference Call
The Company will host a conference call and live webcast today at 5:00 p.m. Eastern Time. Parties in the United States and Canada can call 800-762-8779 to access the conference call. Parties outside the United States and Canada can access the call at 480-629-9866. The webcast will be archived for a period of 90 days. A telephonic replay of the conference call will also be available two hours after the call and will run until Tuesday, May 8, 2012 at midnight Eastern Time. To hear the replay, parties in the United States and Canada can call 800-406-7325 and enter pass code 4531650. Parties outside the United States and Canada can call 303-590-3030 and enter pass code 4531650.
Revenue Mix – Schedule 5 Enhancements
Additional information regarding an illustrated mapping of Q1 2012 revenues is available in the Frequently Asked Questions (FAQs) section of the Alaska Communications website. Select the question: How can I find more information on Alaska Communications enhanced Q1 2012 revenue mapping?
About Alaska Communications
Headquartered in Anchorage, Alaska Communications Systems Group, Inc. (Nasdaq: ALSK) is a leading provider of high-speed wireless, mobile broadband, Internet, local, long-distance and advanced broadband solutions for businesses and consumers in Alaska. The Alaska Communications network includes advanced broadband and voice networks and the most diverse undersea fiber optic system connecting Alaska to the contiguous United States. For more information, visit www.alaskacommunications.com or www.alsk.com .
Forward-Looking Guidance
This press release includes information related to management's estimate of EBITDA and Free Cash Flow (FCF) for the year ending December 31, 2012. EBITDA and FCF, as defined by the Company, may not be consistent with EBITDA and FCF measures used by other companies are not measurements under generally accepted accounting principles (GAAP), and should not be a considered a substitute for other measures of financial performance recorded in accordance with GAAP. Management believes that EBITDA provides useful information to investors about the Company's performance because it eliminates the effects of period-to-period changes in costs associated with , interest income and expense, stock-based compensation expense, losses and gains associated with the extinguishment of debt and disposal of assets, gift of services, income tax expense and depreciation and amortization that are not directly attributable to the underlying performance of the Company's business operations. Similarly, FCF provides useful information about the ability of the Company to pay dividends and reduce its outstanding indebtedness. Due to the difficulty in forecasting and quantifying the amounts that would be required to be included in the most comparable GAAP measure, “net cash provided by operating activities” the Company is not providing an estimate of the year-end 2012 amount for that measure.
Forward-Looking Statements
This press release includes certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's beliefs as well as on a number of assumptions concerning future events made using information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside ACS' control. Such factors include, without limitation, Verizon’s entry into the Alaska market, Universal Service Fund reforms, the outcome of on-going IRS audits, adverse national economic conditions, adverse conditions in the credit markets impacting the cost, including interest rates, and/or availability of financing, adverse local economic conditions, including an unexpected downturn in the Alaskan oil and gas or tourism markets, changes in capital expenditures, the effects of competition in our markets, the entry of one or more additional facilities-based carriers into the Alaska market, or other factors affecting the Company's ability to generate sufficient earnings and cash flows to continue to make dividend payments to its stockholders; the Company’s ability to complete, manage, integrate, market, maintain, and attract sufficient customers to the products and services it may derive, adverse changes in labor matters, including workforce levels, labor negotiations, and benefits costs; disruption of our suppliers' provisioning of critical products or services; the impact of natural or man-made disasters; changes in Company's relationships with large carrier or enterprise customers or its roaming partners; changes in revenue from universal service funds; unforeseen changes in public policies; changes in accounting policies, including the Company’s application of regulatory accounting rules, which could result in an impact on earnings; or disruptive technological developments in the telecommunications industry. For further information regarding risks and uncertainties associated with ACS' business, please refer to the Company's SEC filings, including, but not limited to, the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of the Company's SEC filings may be obtained by contacting its investor relations department at (907) 564-7556 or by visiting its investor relations website at www.alsk.com .
| Schedule 1 | ||||||||
| ALASKA COMMUNICATIONS SYSTEMS GROUP, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (Unaudited, In Thousands, Except Per Share Amounts) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2012 | 2011 | |||||||
| Total operating revenues | $ | 85,947 | $ | 86,593 | ||||
| Operating expenses: | ||||||||
| Cost of services and sales | 35,162 | 32,885 | ||||||
| Selling, general & administrative | 25,495 | 23,278 | ||||||
| Depreciation and amortization | 12,942 | 14,935 | ||||||
| Loss on disposal of assets, net | 280 | 43 | ||||||
| Total operating expenses | 73,879 | 71,141 | ||||||
| Operating income | 12,068 | 15,452 | ||||||
| Other income and expense: | ||||||||
| Interest expense | (9,559 | ) | (9,692 | ) | ||||
| Loss on extinguishment of debt | (323 | ) | - | |||||
| Interest income | 10 | 8 | ||||||
| Total other income and expense | (9,872 | ) | (9,684 | ) | ||||
| Income before income tax expense | 2,196 | 5,768 | ||||||
| Income tax expense | (1,067 | ) | (3,069 | ) | ||||
| Net income | $ | 1,129 | $ | 2,699 | ||||
| Net income per share: | ||||||||
|
Basic and diluted |
$ | 0.02 | $ | 0.06 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 45,364 | 44,808 | ||||||
| Diluted | 45,624 | 46,106 | ||||||
| Schedule 2 | ||||||||
| ALASKA COMMUNICATIONS SYSTEMS GROUP, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited, In Thousands Except Per Share Amounts) | ||||||||
| March 31, | December 31, | |||||||
| Assets | 2012 | 2011 | ||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 17,865 | $ | 20,490 | ||||
| Restricted cash | 5,088 | 4,956 | ||||||
| Accounts receivable-trade, net of allowance of $5,577 and $5,788 | 34,413 | 36,986 | ||||||
| Materials and supplies | 6,845 | 5,412 | ||||||
| Prepayments and other current assets | 6,098 | 4,920 | ||||||
| Deferred income taxes | 6,062 | 6,596 | ||||||
| Total current assets | 76,371 | 79,360 | ||||||
| Property, plant and equipment | 1,427,699 | 1,428,597 | ||||||
| Less: accumulated depreciation and amortization | (1,025,521 | ) | (1,023,360 | ) | ||||
| Property, plant and equipment, net | 402,178 | 405,237 | ||||||
| Goodwill | 8,850 | 8,850 | ||||||
| Intangible assets | 24,118 | 24,118 | ||||||
| Debt issuance costs | 8,997 | 9,515 | ||||||
| Deferred income taxes | 72,773 | 72,814 | ||||||
| Equity method investment | 2,060 | 2,060 | ||||||
| Other assets | 3,584 | 3,154 | ||||||
| Total assets | $ | 598,931 | $ | 605,108 | ||||
| Liabilities and Stockholders' Equity (Deficit) | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term obligations | $ | 26,502 | $ | 30,930 | ||||
| Accounts payable, accrued and other current liabilities | 49,040 | 48,919 | ||||||
| Advance billings and customer deposits | 8,888 | 9,218 | ||||||
| Total current liabilities | 84,430 | 89,067 | ||||||
| Long-term obligations, net of current portion | 537,780 | 538,624 | ||||||
| Other long-term liabilities | 28,662 | 28,340 | ||||||
| Total liabilities | 650,872 | 656,031 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity (deficit): | ||||||||
| Common stock, $.01 par value; 145,000 authorized | 455 | 453 | ||||||
| Additional paid in capital | 142,934 | 144,631 | ||||||
| Accumulated deficit | (186,559 | ) | (187,688 | ) | ||||
| Accumulated other comprehensive loss | (8,771 | ) | (8,319 | ) | ||||
| Total stockholders' equity (deficit) | (51,941 | ) | (50,923 | ) | ||||
| Total liabilities and stockholders' equity (deficit) | $ | 598,931 | $ | 605,108 | ||||
| Schedule 3 | ||||||||||
| ALASKA COMMUNICATIONS SYSTEMS GROUP, INC. | ||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||||
| (Unaudited, In Thousands) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2012 | 2011 | |||||||||
| Cash Flows from Operating Activities: | ||||||||||
| Net income | $ | 1,129 | $ | 2,699 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
| Depreciation and amortization | 12,942 | 14,935 | ||||||||
| Amortization of debt issuance costs and debt discount | 1,606 | 2,014 | ||||||||
| Stock-based compensation | 717 | 1,344 | ||||||||
| Deferred income taxes | 1,063 | 3,038 | ||||||||
| Provision for uncollectible accounts | 550 | 495 | ||||||||
| Other non-cash expenses | 429 | 228 | ||||||||
| Changes in operating assets and liabilities | 1,135 | (3,059 | ) | |||||||
| Net cash provided by operating activities | 19,571 | 21,694 | ||||||||
| Cash Flows from Investing Activities: | ||||||||||
| Capital expenditures | (10,018 | ) | (8,188 | ) | ||||||
| Change in unsettled capital expenditures | (3,131 | ) | (859 | ) | ||||||
| Net change in restricted accounts | (132 | ) | - | |||||||
| Net cash used by investing activities | (13,281 | ) | (9,047 | ) | ||||||
| Cash Flows from Financing Activities: | ||||||||||
| Repayments of long-term debt | (6,417 | ) | (1,294 | ) | ||||||
| Debt issuance costs | - | (84 | ) | |||||||
| Payment of cash dividend on common stock | (2,268 | ) | (9,628 | ) | ||||||
| Payment of withholding taxes on stock-based compensation | (231 | ) | (1,912 | ) | ||||||
| Proceeds from issuance of common stock | 1 | 1 | ||||||||
| Net cash used by financing activities | (8,915 | ) | (12,917 | ) | ||||||
| Change in cash and cash equivalents | (2,625 | ) | (270 | ) | ||||||
| Cash and cash equivalents, beginning of period | 20,490 | 15,316 | ||||||||
| Cash and cash equivalents, end of period | $ | 17,865 | $ | 15,046 | ||||||
| Supplemental Cash Flow Data: | ||||||||||
| Interest paid | $ | 7,016 | $ | 9,838 | ||||||
| Supplemental Noncash Transactions: | ||||||||||
| Dividend declared, but not paid | $ | 2,278 | $ | 9,721 | ||||||
| Additions to ARO asset | $ | 22 | $ | 7 | ||||||
CONTACT:
Alaska Communications Investors:
Vice President,
Investor Relations and Financial Planning & Analysis
Michael
Allen, 907-564-7556
investors@acsalaska.com