NorthState Reports Second Quarter 2019 Results

HIGH POINT, N.C., Aug. 15, 2019 (GLOBE NEWSWIRE) -- NorthState, a fiber optic network, cloud and IT services provider, announced today its financial results for the second quarter ended June 30, 2019. 

Summary of Selected Financial Data

Quarter Ended June 30, 2019 versus Quarter Ended June 30, 2018

• Consolidated net operating revenue (NOR) for the 2019 quarter totaled $32.7 million, up 11% compared to NOR of $29.6 million for the 2018 quarter.
• Total strategic revenue¹ for the 2019 quarter of $22.5 million, up 5% compared to total strategic revenue of $21.5 million for the 2018 quarter.  Strategic revenue comprised 69% of NOR for the 2019 quarter, compared to 73% of NOR for the 2018 quarter.
• Net income for the 2019 quarter of $3.6 million, up 165% compared to net income of $1.4 million for the 2018 quarter.²
• Earnings per share (EPS) for the 2019 quarter of $1.61 compared to EPS of $0.61 for the 2018 quarter.
  

Six Months Ended June 30, 2019 versus Six Months Ended June 30, 2018

• Consolidated NOR of $66.9 million for the 2019 period, up 12% compared to NOR of $59.7 million for the 2018 period.
• Total strategic revenue¹ of $48.0 million for the 2019 period, up 10% compared to total strategic revenue of $43.1 for the 2018 period, comprising 72% of NOR for the 2019 period, compared to 72% of NOR for the 2018 period.
• Net income of $6.5 million for the 2019 period compared to $3.3 million for the 2018 period, up 95%.²
• EPS of $2.87 for the 2019 period compared to EPS of $1.48 for the 2018 period.

Chief Executive Officer Royster Tucker III said, “In the second quarter we continued to deliver strong results from both fiber expansion and IT services.  We are pleased with our performance for the period, which also followed a robust first quarter.

“During the second quarter, Internet and communications revenues rose 13.4% compared to the prior-year quarter, driven by $1.4 million of Connect America Fund (CAF) revenue that was released by the FCC.  In addition, we continued to see average revenue per unit (ARPU) growth driven by a higher number of households and businesses connected with fiber.  Also, during the second quarter, IT services and hardware revenues grew by 4.8% compared to the 2018 quarter, driven primarily by an increase in both telecom and IT equipment revenue and professional services revenue.”

Added Mr. Tucker, “We are heavily focused on continuing to execute our sales efforts in both our fiber and IT services businesses.  In addition, we are increasing our fiber footprint and penetration with a growing focus on fiber-connected businesses.  We are encouraged by the market opportunities in our area, are executing well on our business plan, and believe we are well positioned for continued expansion and growth.”

For further details on NorthState’s financial results for the second quarter of 2019, please see the Q2 2019 Earnings Report.

Forward-Looking Statements
Some of the statements made in this earnings release may be forward-looking statements including: “we are heavily focused on continuing to execute our sales efforts in both our fiber and IT services businesses,” “we are increasing our fiber footprint and penetration with a growing focus on fiber-connected businesses,” and “we are encouraged by the market opportunities in our area, are executing well on our business plan, and believe we are well positioned for continued expansion and growth.” The inclusion of forward-looking information should not be construed as a representation by NorthState that our plans or expectations will be achieved.  We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

About NorthState
NorthState is a technology company focused on inspiring the Internet-driven lifestyle through high-touch experiences.  Its fiber-delivered, ultrafast Internet and Internet-driven applications enable residential customers and businesses to efficiently and securely take advantage of the Internet.  Through its Technology Solutions business unit, NorthState provides data center colocation, customized cloud and IT solutions, managed disaster recovery services, managed security and unified communications. For more information, visit northstate.net.

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¹ Strategic Revenue is all revenue excluding legacy voice revenue.  Legacy voice revenue is comprised of non-IP voice, long distance, and network access revenue.  Please see the financial tables included in the press release on the company’s website.
² Net income includes $1.4 million of Connect America Fund (CAF) revenue that was released by the FCC.