OtelcoWireline telecommunications provider Otelco Inc. reported 2Q09 total revenue of $25.8 million, 46%, or $8.128 million, higher than its year-ago total $17.7 million.  Net income totaled $406,135 ($0.18 per share diluted) as compared to a net loss of $716,250 (-$0.06 per share diluted) in 2Q08.  Operating income increased 12.4%, $709,884, to $5.716 million from $5 million a year ago.  The spike in revenue was due primarily to last fall’s acquisition of Country Road, management reported.

“Otelco delivered another solid quarter despite the continuing challenges from the economy,” president and CEO Mike Weaver said in a news release .  “We experienced growth in our revenue of $8.1 million over the second quarter of 2008, as we continue our trajectory toward $100 million for 2009.

“We had our best quarterly results with Adjusted EBITDA at $12.4 million.  Both our RLEC and CLEC customers contributed to the growth. Our results were achieved by a combination of revenue growth, effective cost management and the realization of synergies from our Country Road acquisition last fall.  Adjusted EBITDA increased by $3.9 million and $0.9 million over the same quarter last year and the first quarter of 2009, respectively. ”

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2Q09 Operating Highlights

  • Access line equivalents (voice+data lines) totaled 100,082, down 0.1% from 100,144 sequentially
  • RLEC voice lines down 1.4% q/q from 50,807 in 1Q to 50,078 in 2Q09
  • RLEC data lines up 1.2% q/q from 19,365 in 1Q to 19,596 in 2Q09
  • Overall 0.7% q/q drop in RLEC access line equivalents, from 70,172 to 69,674
  • CLEC access line equivalents up 1.5% q/q, from 29,972 to 30,408
  • Cable TV customers decreased 0.4% q/q, from 10,885 to 10,165 as of end June
  • Dial-up Internet customers down 6.6% q/q, from 10,885 to 10,165
  • Wholesale network connections up 7.6%, from 113,855 to 122,471

2Q09 Financial Highlights

  • Adjusted EBITDA up 45.7% y/y from $8.5 million to $12.3 million in 2Q09
  • Capex up 53.3% y/y from $1.5 million in 2Q08 to $2.3 million in 2Q09
  • Local services revenue up 79.7% in 2Q09, from $6.7 million in 2Q08 to $12.1 million
  • Network access revenue increased 35.4% in 2Q to $8.3 million from $6.1 million a year ago
  • Cable TV revenue rose 8.1% to just over $0.6 million in 2Q09 from just under $0.6 million a year ago
  • Internet revenue rose 15.5% to $3.5 million from $3 million in the year ago quarter primarily as a result of the Country Road acquisition
  • Transport services revenue rose 8% to $1.4 million in 2Q09 from $1.3 million a year ago

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