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(ROSEVILLE, CALIFORNIA) - Roseville Communications Company
(RCC) (OTC:RVCL) announced operating results for the second quarter
2000. Operating revenues increased to $37.3 million, a gain of $2.3
million, or six percent, over the same period in 1999. Net income
was $7.5 million or $.48 per share for the second quarter 2000,
compared to net income of $9.3 million or $.59 per share for the
same period in 1999.
Operating revenues for the six-month period ended June 30, 2000
increased to $74.3 million, a gain of $4.3 million over the same
period in 1999. Net income for the six-month period ended June 30,
2000 was $15.3 million or $.97 per share compared to net income
of $17.6 million or $1.11 per share for the same period in 1999.
Operating income for the second quarter of 2000 was $9.6 million
compared to $12.9 million for the same period in 1999. Operating
income for the six-month period ended June 30, 2000 was $19.1 million
compared to $24.8 million for the same period in 1999. The increase
in operating revenues were offset by the significant costs associated
with the company's newest initiatives, specifically DSL, Internet,
wireless and competitive local exchange carrier (CLEC) activities.
"We are pleased with the operating results for the second quarter
of 2000 and excited about the long-term growth potential of data,
wireless and CLEC services," said Brian Strom, president and chief
executive officer of RCC. "The company is committed to dedicating
resources to develop and introduce new services even though start-up
costs will continue to dilute consolidated earnings for the next
few years. Our ability to continue to enjoy strong results while
simultaneously devoting significant resources to new business initiatives
is reflective of the overall financial strength of the company."
The increase in operating revenues resulted from a combination
of an increase in data and broadband service revenues, a two percent
growth in access lines and increased minutes-of-use volumes. Data
revenues for the six-month period ended June 30, 2000 increased
70 percent from a year earlier bolstered by the demand for digital
subscriber lines (DSL), Internet and CLEC services.
The company's operating revenues also continue to be positively
affected by Roseville Long Distance Company (RLD) and RCS Directories.
RLD, which began offering service in September 1997, recently surpassed
25,000 subscribers, likely due in part to the introduction of its
simple, seven-cents-per-minute rate plan.
The increase in RCS Wireless revenues also modestly affected operating
revenues. RCS Wireless launched its wireless communications services
in June 1999 and recently became the first and only wireless carrier
to offer an unlimited local wireless calling plan in the Sacramento
area. Since the plan's introduction, RCS Wireless has experienced
its most vigorous demand for new service.
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. Response to this service has been robust
and more than 4,000 customers already have service.
Pre-tax earnings attributable to the company's interest in the
Sacramento Valley cellular partnership were $3.1 million in the
second quarter of 2000, compared to $2.5 million for the second
quarter of 1999. For the six-month period ended June 30, 2000, pre-tax
earning relating to the partnership increased to $6.9 million, compared
to $4.3 million for the same period in the prior year. If the partnership's
2000 second-half results are consistent with historical trends of
the partnership's operations, the income attributable to the partnership
for the remaining quarters of 2000 may be lower than that recognized
in the first and second quarters.
The board of directors also declared its regular quarterly dividend
of $.25 per share payable Sept. 15, 2000 to shareholders of record
on Aug. 31, 2000.
Roseville Communications Company Financial
Summary and Comparisons
(dollars in millions except per share amounts)
(unaudited)
|
2000 |
1999 |
| Three Months Ended June 30 |
|
|
| Operating revenues |
$37.3 |
$35.0 |
| Operating income |
9.6 |
12.9 |
| Net income |
7.5 |
9.3 |
| Earnings per share |
.48 |
.59 |
| Dividends per share |
.25 |
.25 |
| Six Months Ended June 30 |
|
|
| Operating revenues |
$74.3 |
$70.0 |
| Operating income |
19.1 |
24.8 |
| Net income |
15.3 |
17.6 |
| Earnings per share |
.97 |
1.11 |
| Dividends per share |
.50 |
.50 |
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,
RCS Internet, RCS Wireless and Roseville Long Distance.
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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