Alaska Communications Systems (ALSK) Misses Q4 EPS by 10c

Alaska Communications Systems (NASDAQ: ALSK) reported Q4 EPS of ($0.11), $0.10 worse than the analyst estimate of ($0.01). Revenue for the quarter came in at $77.59 million versus the consensus estimate of $76 million.

"Our 2014 results reflect stellar performance to a solid business plan. We have built and continue to expand our broadband and IT managed service franchise in a growing Alaska market. The sale of our wireless operations, which closed Feb. 2, 2015, was a bold strategic move. This transaction has eliminated the wireless overhang on our valuation, reduced our debt, and will bring our leverage ratio to one of the lowest in our industry.

“We enter 2015 with good business momentum, continuing our strong performance in broadband and IT managed services. Our margins will strengthen through the course of the year as we achieve synergies and remove costs associated with the wireless operations. We have turned a page in our journey and look forward to delivering significant value creation for our shareholders,” Anand Vadapalli, president and CEO of Alaska Communications, said.

2015 Guidance:

Management’s focus is continued top line performance, steady deleveraging and achieving run rate adjusted EBITDA exiting 2015 through targeted synergies. Guidance for 2015 is as follows.

• Total Wireline Revenue of approximately $220 million
• Run rate Adjusted EBITDA exiting 2015 of $54 million to $56 million
• Capital expenditures range of $34 million to $36 million, with $16 million of success based capital
• Net debt at year end of approximately $159 million, resulting in our having one of the lowest leverage ratios in our industry

For earnings history and earnings-related data on Alaska Communications Systems (ALSK) click here.

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