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(ROSEVILLE, CALIFORNIA) - Roseville Communications Company ("RCC") (OTC:RVCL)
announced operating results for the first quarter 2000. Operating
revenues increased to $37.0 million, a gain of $2.0 million, or
six percent, over the same period in 1999. Net income was $7.8 million
or $.49 per share for the first quarter 2000, compared to net income
of $8.3 million or $.52 per share for the same period in 1999.
The company attributed the increase in operating revenues to an
increase in data and broadband service revenues, a four percent
growth in access lines and increased minutes-of-use volumes. Data
revenues for the quarter increased over 50 percent from a year earlier
bolstered by the demand for digital subscriber lines (DSL) and internet
services introduced in August 1999.
The Company's operating revenues also continue to be positively
affected by the operating results of RCS Directories and Roseville
Long Distance Company. Additionally, operating revenues for the
first quarter of 2000 have increased as a result of the launch of
its wireless communications services in June 1999.
Operating income for the first quarter of 2000 was $9.5 million
compared to $11.9 million for the same period in 1999. This decline
was on target with company expectations and attributed primarily
to network buildout and startup costs associated with the deployment
of DSL and internet services, and the introduction of wireless communications
services.
Pre-tax earnings attributable to the Company's interest in the
Sacramento Valley cellular partnership were $3.8 million in the
first quarter of 2000, compared to $1.8 million for the first quarter
of 1999. Consistent with historical trends of the partnership's
operations, the Company believes that the income attributable to
the partnership for the remaining quarters of 2000 may be lower
than that recognized in the first quarter.
"We are pleased with the operating results for the first quarter
of 2000," said Brian Strom, president and chief executive officer
of the Company. "The Company sees the long-term growth potential
of data and wireless services and is committed to dedicating resources
to develop and introduce these new services even though start-up
costs will continue to dilute consolidated earnings for the next
few years."
In August 1999, the Company launched its newest subsidiary, RCS
Internet, which offers high-speed connections to the Internet for
both home and business applications. This service is offered in
conjunction with Roseville Telephone Company's latest feature, DSL,
which turns copper telephone lines into broadband conduits for high-speed
access to the Internet. "The introduction of the new high speed
internet service continues to reflect the Company's commitment to
bringing the latest broadband services to its customers," said Strom.
Strom said the Company began offering Personal Communications Services
through its wireless subsidiary, RCS Wireless, in June 1999. "RCS
Wireless combines the voice quality and security of a regular phone
with the local mobility of wireless. It is designed as a wireless
alternative to a landline phone for the home, office and around
town. We are engaged in an aggressive build-out program to provide
the most advanced wireless services to our current customers and
to those beyond our traditional service area," he said.
The Board of Directors also declared its regular quarterly dividend
of $.25 per share payable June 15, 2000 to shareholders of record
on May 31, 2000.
Roseville Communications Company
Financial Summary and Comparisons
(dollars in millions except per share amounts) (unaudited)
| Three Months Ended March 31 |
2000 |
1999
|
| Operating
revenues |
$37.0
|
$35.0
|
| Operating
income |
9.5
|
11.9
|
| Net income
|
7.8
|
8.3
|
| Earnings per
share |
.49
|
.52
|
| Dividends
per share |
.25
|
.25
|
Roseville Communications Company is a holding
company with subsidiaries operating in the communications services
industry. The Company's principal operating subsidiary, Roseville
Telephone Company has provided telecommunications services in the
greater Roseville area for 86 years with its primary service area
encompassing the communities of Roseville, Granite Bay, Citrus Heights
and Antelope. Other subsidiaries of RCC include RCS Directories,
Roseville Long Distance Company, RCS Internet and RCS Wireless.
# # #
This material may contain forward-looking statements.
Forward-looking statements by the Company are based on estimates,
projections, beliefs and assumptions of management and are not guarantees
of future performance. Actual results may differ materially from
those indicated in the forward-looking statements. The Company is
under no obligation to update or revise any forward-looking statements
based on the occurrence of future events and the receipt of new
information or otherwise.
For more information, contact media@surewest.com.
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