Press Release
D&E COMMUNICATIONS, INC. FOR IMMEDIATE RELEASE March 14, 2005 | NEWS RELEASE CONTACT PERSON: |
EPHRATA, PENNSYLVANIA (March 14, 2005) - D&E Communications, Inc. ("D&E") (Nasdaq: DECC), a leading provider of integrated communications services in central and eastern Pennsylvania, today announced the results of its operations for the fourth quarter and year ended December 31, 2004.
For the fourth quarter of 2004 the company reported total operating revenue of $44.7 million, as compared to $44.7 million in the fourth quarter of 2003. Net loss for the fourth quarter was $2.4 million, or ($0.17) per share, as compared to net income of $2.5 million or $0.16 per share, for the same period last year.
Total operating revenue for the full year 2004 was $176.3 million, as compared to $173.1 million for the previous year. Net loss for the year was $2.7 million, or ($0.18) per share, as compared to a net income of $4.1 million, or $0.26 per share, for 2003. Included in the 2004 results is a loss of $5.3 million ($3.6 million, or ($0.24) per common share, after tax) on early extinguishment of debt related to the company's refinancing of its debt in March and November 2004. The refinancing activities are estimated to achieve annual interest expense savings of approximately $2.7 million, based on market interest rates at the time of the refinancing, until the maturity of the debt in 2011. Results for 2004 also included a loss of $2.1 million ($2.1 million, or ($0.14) per common share after tax) for our share of an impairment of assets at Pilicka and an impairment of our investment in EuroTel.
"The results of the year reflect our continued efforts to improve our balance sheet, provide long term cost savings for the company, and eliminate certain debt covenants to ease restrictions on our use of cash flow," commented G. William Ruhl, Chairman, President and Chief Executive Officer of D&E Communications. "We are pleased with the general progress we have made throughout the year as we achieved many of the milestones we set out to manage our strategic plan. These goals include increasing top line growth while favorably refinancing our debt twice, continuing to create greater efficiencies resulting from our acquisition of Conestoga Enterprises, and upgrading our systems and infrastructure to more efficiently deliver increased services and technology to our customers."
"We still have a lot of work ahead of us," Ruhl added. "Over the years we have built a strong foundation of loyal customers based substantially on our ability to deliver excellent customer service and our ability to acquire organizations that advance our integrated communications provider strategy. Going forward we will look to continue this trend by beginning to transition D&E for the future. A key component of our success in this endeavor will rest in our ability to be the leading integrated communications provider in the region, a one-stop-shop for all our customers' communications needs including high speed data, voice, and, in some of our markets, video services. In doing so, we will seek to increase our base of satisfied customers and our revenue per customer. We look forward to reporting our progress in these and other areas as we move forward."
On a segment by segment basis, the company reported the following information:
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