|
Data And Wireless Businesses Spur Revenue Growth
(Roseville, California) - SureWest Communications (OTC:
SURW), formerly Roseville Communications Company, today announced
operating results for the quarter and the six-month periods ended
June 30, 2001. Operating revenues were $38.6 million and $81.1 million
for the quarter and the six-month periods ended June 30, 2001, compared
to $37.1 million and $73.9 million during the same periods in the
prior year. However, despite the increases in operating revenues
during both the most recent quarter and the six-month periods, and
for the reasons described below, net income declined to $1.5 million
and $6.5 million, or $.10 and $.42 per share, respectively, in the
most recent quarter and the six-month periods. Net income in the
comparable periods in 2000 was $7.3 million and $11.7 million, as
restated due to a change in accounting principle in 2000.
The 2001 results have been affected by both a recent regulatory
development and SureWest's continuing planned expansion of its operations,
most notably in its emerging businesses. First, during the second
quarter of 2001, Roseville Telephone Company, the principal operating
subsidiary of SureWest Communications, recorded a one-time reduction
to operating revenues of $4.1 million as a result of a regulatory
order issued by the California Public Utilities Commission on June
28, 2001 related to the telephone subsidiary's new regulatory framework.
In addition, as anticipated, the company's operating expenses increased
to $38.1 and $74.5 million in the quarter and the six-month periods
ended June 30, 2001 compared to $27.6 and $55.2 in the prior year
periods, as SureWest continued to fund the expansion of its businesses,
particularly the wireless, Internet and newer businesses (such as
DSL and data transport).
Operating revenues for the company's wireless subsidiary, SureWest
Wireless, increased by $3.7 million for the second quarter of 2001
and $8.1 million for the six-month periods in 2001, compared to
the same periods in 2000, due to the substantial increase in wireless
customers. SureWest Wireless has added more than 25,000 customers
since June 2000. Additionally, during the second quarter of 2001,
SureWest Wireless opened a new retail showroom in the Elk Grove
area, its third retail showroom in the greater Sacramento region.
"Our wireless operations continue to represent a significant
growth segment of our business. With the addition of our newest
retail outlet and the continued expansion of our all-digital network,
we anticipate that the demand for our unlimited calling plans will
continue to fuel increases in wireless subscribers and revenue growth,"
said Brian Strom, president and chief executive officer of SureWest
Communications.
Operating revenues relating to Internet and Digital Subscriber
Line (DSL) services increased by $1.3 million for the second quarter
of 2001 compared to the same period in 2000 due to the strong demand
for high-speed connections to the Internet by both home and business
customers.
In May 2001, SureWest's Competitive Local Exchange Carrier (CLEC)
business, SureWest Broadband, signed an agreement with McClellan
Business Park to become the park's preferred provider of telecommunications
services. McClellan is the largest business park in the Sacramento
metropolitan area, and encompasses close to 3,000 acres with a potential
of 17 million square feet of office and light industrial space.
"This is yet another example of our commitment to expand beyond
Roseville Telephone's traditional boundaries by penetrating new
markets and providing an integrated communications package which
includes wireless services, competitive broadband, integrated data
services, Internet access and corporate network solutions,"
said Strom. "Our strategy is to build a fully diversified fiber
optic network that will support today's applications while promoting
the development of future technologies and tomorrow's applications.
Today we have approximately 20,000 fiber miles adjacent to our traditional
local telephone service area," reported Strom.
Strom concluded by adding that "while the increased spending
on these growth initiatives will continue to result in diluted earnings
in the near term, we believe that the long-term potential for wireless,
Internet services, DSL, broadband and integrated data services will
contribute significantly to the overall financial strength of the
company in the future."
* * * * *
The Board of Directors also declared its regular quarterly dividend
of $.25 per share payable September 14, 2001 to shareholders of
record on August 31, 2001.
SureWest Communications
Financial Summary and Comparisons
(dollars in millions, except per share amounts)
(unaudited)
| Period
|
Revenue
|
Net
Income |
Basic
Earnings Per Share |
| Ended
|
$ |
% Change
|
$ |
% Change
|
Latest
|
Year Ago
|
% Change
|
| 3 months ended
6/30/01 |
38.6
|
4.0
|
1.5
|
(79.5)
|
.10
|
.47
|
(78.7)
|
| 6 months ended
6/30/01 |
81.1
|
9.7
|
6.5
|
(44.4)
|
.42
|
.74
|
(43.2)
|
SureWest Communications
SureWest Communications and its family of companies including Roseville
Telephone Company, SureWest Wireless, SureWest Broadband, SureWest
Internet and SureWest Directories, create value for customers and
shareholders through an integrated network of highly reliable advanced
communications products and services with unsurpassed customer care.
The company's principal operating subsidiary, Roseville Telephone
Company, is California's third largest telecommunications company,
and has provided telecommunications services for 86 years as the
Incumbent Local Exchange Carrier (ILEC) to the communities of Roseville,
Citrus Heights, Granite Bay, Antelope and parts of Rocklin. The
company, through its Competitive Local Exchange Carrier (CLEC) and
subsidiaries, is licensed to provide fiber optics, 39 GHz wireless,
PCS wireless, DSL, high-speed Internet access and data transport.
Statements made in this news release, including
those relating to anticipated future growth in wireless subscribers
and revenue, continued expansion of the telecommunications network
and expected financial impacts resulting from the company's emerging
businesses are forward looking statements and are made pursuant
to the safe harbor provisions of the Securities Litigation Reform
Act of 1995. Such forward looking statements are subject to a number
of risks, assumptions and uncertainties that could cause the company's
actual results to differ from those projected in such forward looking
statements.
Important factors that could cause actual results
to differ from those set forth in the forward looking statements
include, but are not limited to: advances in telecommunications
technology, changes in the telecommunications regulatory environment,
changes in competition in markets in which the company operates,
the availability of future financing, changes in the demand for
services and products, new product and service development and introductions,
pending and future litigation and unanticipated changes in the growth
of the company's emerging businesses, including the PCS, internet
and CLEC operating entities.
# # #
For more information, contact media@surewest.com.
Recent
News Releases
News Release Archive
|
