Mon, Feb. 2, 2:36 PM
- Alaska Communications (NASDAQ:ALSK) has completed the sale of its one-third interest in Alaska Wireless Network to General Communication (GNCMA, OTCQB:GNCMB) for $300M.
- Net proceeds are being used to pay down ALSK's debt.
- "When we announced this transaction in December 2014, we said that by eliminating the negative margins associated with the retail wireless business and by realizing additional synergies, we were targeting a pro-forma run-rate EBITDA of $54 million and a leverage ratio of 3.1x annual EBITDA," says CFO Wayne Graham. "The operational plan to perform at or better than these levels is under way."
- ALSK will elaborate on the deal on its March 5 earnings call. The firm is expected to report a net loss of $0.01/share on $76.4M in revenue.
- Previously: Alaska Comm. sells wireless assets; shares +35.5% AH (Dec. 04 2014)
Dec. 5, 2014, 12:50 PM
Dec. 5, 2014, 9:10 AM
Dec. 4, 2014, 4:48 PM
- Alaska Communications (NASDAQ:ALSK) is selling its remaining 33% stake in The Alaska Wireless Network (AWN) to GCI Communications for $300M in cash. The carrier plans to use the proceeds to cut its debt load to $165M from $415M.
- The deal is expected to close in Q1 2015. Following its close, Alaska expects to "improve Adjusted EBITDA by creating synergies of approximately $12 million," and focus on its wireline and managed IT solutions ops.
- For reference, Alaska had a market cap of only $61.4M as of today's close. The company's wireless and AWN revenue fell 26% Y/Y in Q3 due to competition from Verizon and the loss of roaming/backhaul revenue. Subscribers stood at 109K.
Nov. 6, 2014, 12:11 PM
- Alaska Communications (NASDAQ:ALSK) now expects 2014 revenue of $315M, above prior guidance of $310M (the sole analyst estimate is at $311M). Adjusted EBITDA guidance has been hiked by $2M to $92M, while free cash flow and capex guidance have respectively been kept at $20M and $40M-$45M.
- Serivce/other revenue rose 6.7% Y/Y in Q3 to $53.4M, thanks partly to a 10.3% increase in broadband revenue to $17.3M. Business/wholesale service revenue +11.6% to $28M; consumer service +2.1% to $10.4M (broadband growth offsetting voice declines).
- Wireless and AWN revenue, hurt by Verizon competition and the loss of roaming/backhaul revenue, fell 26% Y/Y to $25.1M. Wireless connections fell by 515 Q/Q to 109,063, and ARPU dropped by $2.45 to $50.10.
- Q3 results, PR
Nov. 5, 2014, 6:15 PM| Comment!
Nov. 4, 2014, 5:35 PM
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Aug. 6, 2014, 5:07 PM| Comment!
Jul. 29, 2014, 10:14 AM
- Windstream's (WIN +22.3%) plans to spin off some of its telecom network assets into a REIT (following a favorable IRS ruling) has lit a fire under U.S. telecom carriers, as investors bet more REIT announcements will happen. Some might also be hoping REIT spinoffs spark additional M&A activity in an industry that has seen plenty of it.
- Frontier (FTR +15.8%) and CenturyLink (CTL +8.1%) are also off to the races, and AT&T (T +3.9%), Verizon (VZ +1.9%), and Sprint (S +2%) aren't doing badly either.
- Other gainers include Alaska Communications (ALSK +5.2%), TDS (TDS +4.1%), and Lumos Networks (LMOS +5.5%), as well as Level 3 (LVLT +5.9%) and merger partner TW Telecom (TWTC +5.2%). Level 3 posted a Q2 beat this morning.
- Windstream's spinoff will feature its fiber/copper networks and other real estate. The company expects to retire $3.2B in debt following the spinoff (expected to close in Q1 2015), and to have the REIT raise $3.5B in debt.
- Windstream plans to have an aggregate annual dividend of $0.70/share following the spinoff ($0.60 for the REIT, $0.10 for Windstream proper). That's down from a current $1.00/share.
Jul. 29, 2014, 9:08 AM
Jun. 5, 2014, 6:15 PM
- Taking a cue from the popular subsidy-free plans launched by T-Mobile, AT&T, and others, Alaska Communications' (ALSK) new "Buy It. Bring It. Finance It." plans (details) offer discounts and eliminates contracts for users willing to either pay full price for a phone, bring one over from another network, or finance it over 24 months.
- The plans arrive as Alaska deals with tough competition from Verizon, which entered The Last Frontier in 2013. In Q1, Alaska lost 873 wireless subs (lowering its base to 108K), and its ARPU fell $0.63 Q/Q to $52.51. 3.2K subs were lost in Q4.
Mar. 7, 2014, 12:45 PM
Mar. 7, 2014, 9:12 AM
Mar. 6, 2014, 6:52 PM
- Alaska Communications (ALSK) expects 2014 revenue of $310M, above a $289.4M consensus. But free cash flow is expected to fall to $20M from a 2013 level of $22M. Capex is expected to drop to $40M from $47.7M.
- Adjusted EBITDA, pressured by the loss of $15.7M in revenue tied to the Alaska Wireless Network deal, fell 50% Y/Y to $16.6M. Consumer service revenue +2% to $10.1M, business/wholesale services -1% to $25.6M.
- Consumer access lines fell by 1.4K Q/Q to 49.3K, and business access lines by 200 to 79.8K. Consumer broadband connections rose by 600 to 38.7K, and business broadband connections by less than 100 to 19.3K.
- 3.2K wireless subs were lost in Q4; the company now has 108.8K. Wireless service revenue (hurt by Verizon's arrival in Alaska) fell 6% Y/Y to $17.6M. ARPU rose to $53.14 from $52.08 in Q3 and $52.96 a year ago. Churn was 3.4% vs. 3.2% in Q3 and 3.7% a year ago.
- Q4 results, PR
Mar. 6, 2014, 5:40 PM
Mar. 6, 2014, 4:14 PM| Comment!
ALSK vs. ETF Alternatives
Alaska Communications Systems Group Inc provides an integrated communications services to consumer & business customers in Alaska. Outside Alaska, it provides its services through two undersea fiberoptic cable systems, AKORN and Northstar.
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