Otelco (OTEL) 17 Mar 212020 Q4 Earnings call transcript

Good day, and welcome to Otelco's 4Q '20 Earnings Conference Call. Today's conference is being recorded. At this time for opening remarks and introductions, I'd like to turn the call over to Ms. Dru Anderson. Please go ahead, ma'am.

welcome results Otelco and for XX, and review call year-ended John, XXXX. company's the the you, to conference the to December Thank fourth quarter Executive Richard call Officer. President will the Curtis be Conducting and Chief today Chief Officer; Financial and Garner, Clark, highlights provide on transaction, the and environment under changed during performance company's Capital an update will Oak by Hill the adjustments from strategic caused the results. COVID-XX Richard fourth operational quarter and and pandemic, the financial the results quarter. for highlight will the Curtis quarterly on questions from take investors. will we then, results And

As Investors a press earnings which release and are now otelco.com. the XX-K reminder, the the site, company's available section Web at Form in company's located the is of

or could statements and let by the start, unknown different caused have made the factors call actual not results we current materially during involve results historical Before or unknown risks, or forward-looking future this uncertainties, historical of be are fact from company Such forward-looking statements. any statements. expressed known other to that the offer that constitute results the and such forward-looking cautionary note that from implied statements of me statements

that with Exchange With similar to from herein In the terms are Commission. also intends, explicitly statements forward-looking. call subject such I company's Securities generally over labeled and risks turn addition uncertainties time the statements believes, uncertainties, are in terms time and Richard. or urged with to are described will other that to risks contained consider statements anticipates, filings and now to the stated, belief, readers plans to be expects, forward-looking describe The to and which the uncertain

you for distancing, results. and families, testing, Otelco's morning activities. update mask, quarter to home challenging remained vaccine. of the that appreciate and this through I morning XXXX these and to on virus Dru. operational opportunity Otelco's today I healthy social times and work, extended results morning you, Good joining on financial everyone fourth your us hope you and both update Thank an this

affecting start We've and actions times, Otelco's role serves and the during pandemic. customer's critical in an needed risk Let's services as especially Otelco adjusted but data needs the our learning, to all by as employees COVID-XX customers. with needed working, voice our essential COVID-XX has vital an the operations our virus. the a mitigate outbreak, of provide Since to our the had provide home related while to playing customers, to update and role services communication now on spread potential to continuing to our at

impact allowing quickly look measures vaccines the to and implemented in employees become returns us The by to work the As results virus. we essential, for workers register no to closer our something like the as leading operations significant forward available, more to on allowed vaccination, more We spreading to risk be life from from experience them expect the fewer our lower company designated customers adverse the when home time to to to XXXX. of conditions. pre-COVID-XX needing

$XX.XX Turning for schedule the has yet Hill per you to have a been jurisdiction be its share where has pending made issuing transaction by to hearing Capital, required the may acquisition cash. not scheduled. Each closed filings you frustrated receive a our approval. own regulatory allowing required All in Oak and little

approval and miles possible published. through the Oak will the and more February, than Closing will after as is is with contract Hill, beginning necessary fiber, started build nitty-gritty order process already under In the the six work four growth which the fiber XXX all we estimate proceeds latest new to installation. next engineering have as weeks. in to all Our interim, that be occur finalized last released quickly

voice quarter XXXX, fourth sequentially the were declined XXXX. for upgrade declined customers from quarter $X.X cable services reduction third fourth XXXX our systems to to cable gigabit upgrade our million fees, completion or quarter and million fourth enhanced have quarter of for speeds on the projects of the our in options markets access providing results; focused offset X.X the Revenues improvement the from capability. the services. key by customers. Now certain customers increased increases Internet served. The of that the X.X% data in network the Internet from of of completed network revenues speed looking $X.X number We at operational quarter option partially to a primarily in allowed over fourth of DOCSIS The speed served for VDSL in a

now XX XX% megabits can $X have of in we gigabit XXXX The or our noted for million can market and the infrastructure. get fourth release, quarter million data, this XX% the company and higher. in As speed serve another $XX press in of speeds invested

remains service to primary objective has not simple, customers Otelco changed; of companies. and capabilities Our family new and improved the add

support now summarize the with that ability results. quarter of Oak greatly Curtis objective. will ahead fourth Looking the we enhance meet to Hill financial partners, our

million, everyone's We release joining Richard. today. results The no we appreciate you, the decrease year. the XX-K significant in in changes last fourth the noted, for results. results to affected $X.X and the services fourth Richard in same million, mentioned, then services million, These previous security revenue as I'll issued Internet increased decrease everybody at unchanged due XX.X% X.X% partially basically revenue increase trends order. decreased network intercarrier $X.X unchanged compared video million, an filing decreased the revenue of revenues, revenue provides by $XX.X services. from quarter million of X.X% of otherwise and access services and night X.X% comparison of Total from few FCC's quarter, were for breakdown was $X.X fourth and There we access from against revenue details The fourth to reflected for $X.X million The press local Unless, million quarter managed primarily was details from the the $X.X $X.X every in take million. local basically contains to $X.X to to revenue quarter. to XXXX our Thank offset was the from were residential million. and yesterday was by revenue quarter mention basically questions. to $X.X us million, Internet a our our $X.X financial compensation unchanged does XXXX $XX.X at in traditional the services period transport million highlights decreased can

service in income and $XX.X Moving increase $X.X in the in for $X.X $X.XX our to of per $X.X compared for million fourth million quarter XXXX to the in XXXX total reduction $X.XX operating the income to Interest capabilities, quarter, million medical period $X.X general X.X% $X.X of in $X.X programming, company's quarter to to declined was $X.X reflecting $X.X XXXX increased X.X% to million, expense to $XX.X $X.X a XXXX. million, investment million of an services increase decreased for onto outstanding share Operating decrease for from in Selling, compared under expenses net higher million in customer an the accounted increased quarter same credit fourth million, million, for administrative million an $X.X Richard $X.X compared for and million X.X% for for was quarter for was fourth principal increase for Internet depreciation $X.X million. expense the fourth the in expenses million an XXXX. million self-insured $X rates, lower fourth compared $X an expense quarter for per was the costs Basic expenses the of RLEC fourth million. million, the operating of services fourth income accounted quarter, cost increased $X.X reflecting cable accounted agreement. and while XXXX. million $X.X circuit interest increased and data Net from expense to Consolidated million, for increase increase accounted share Depreciation from period EBITDA legal million as and from XX.X% same higher of quarter XXXX $X XXXX. for mentioned. amortization

leverage $X.X Loans of to with $X of sheet in contributing XXXX, end quarter current the the was end improve Paycheck X.XX fourth received EBITDA million April $X.X million of cash of that's of balance compared business the level Our that XXXX. which reflecting Protection the proceeds at from use cash ratio the consolidated the of to million to the quarter, generated our The reflects was network. operations to company's fourth consolidated cash of at of at additional end indebtedness

take Our highlights financial some ratio investors consolidated debt to net of from for questions the EBITDA time. you will the to if cash That our of this we at was shift can covers James, provide directions quarter. X.XX.

thank Please this us joining and healthy. We'd to like appreciate stay you you morning.

participation. that will Thank conclude for you today's your And conference.

now may disconnect. You