Press Release
D&E COMMUNICATIONS, INC. FOR IMMEDIATE RELEASE August 10, 2005 | FOR IMMEDIATE RELEASE CONTACT PERSON: |
EPHRATA, PENNSYLVANIA (August 9, 2005) i?N1/4? D&E Communications, Inc. ("D&E") (Nasdaq: DECC), a leading provider of broadband integrated communications services in central and eastern Pennsylvania, today announced the results of its operations for the second quarter ended June 30, 2005.
For the second quarter of 2005 the company reported total operating revenue of $44.0 million, as compared to $44.1 million in the second quarter of 2004. Net income for the second quarter was $1.4 million, or $0.10 per share, as compared to a net income of $1.2 million, or $0.08 per share, for the same period last year.
For the six months ended June 30, 2005, the company reported total operating revenue of $86.9 million, as compared to $87.9 million in the same period last year. Net income for the six months ended June 30, 2005 was $4.3 million, or $0.30 per share, as compared to a net loss of $1.0 million, or $0.07 per share, for the same period last year.
Included in the 2005 year to date results was a gain on investment of $2.0 million ($1.3 million, or $0.09 per common share, after tax) from the sale of our interest in PenTeleData. The 2004 year to date results included a loss on early extinguishment of debt amounting to $4.8 million ($3.3 million, or $0.21 per common share, after tax) related to the company's refinancing of its debt in March 2004.
"The highlight of our first two quarters this year has been the impressive growth of high-speed Internet subscribers. In the first six months of 2005, we have already added more DSL subscribers than we did during all of 2004," said James W. Morozzi, President and Chief Executive Officer of D&E Communications. "We have a dedicated and focused set of plans and activities aimed at increasing this broadband penetration, which we believe will be a key element of providing next-generation communication services to our customers. Part of that plan involves actively converting our dial-up customers to broadband, in those areas where we offer DSL."
"In our RLEC segment, which encompasses our legacy telephone company territories, we continue to see a decline in access lines, much like other companies in our industry," Morozzi continued. "With this competitive pressure on the RLEC segment, we are focused on managing our costs to maintain profitability."
Summary Statistics
June 30, 2005 | June 30, 2004 | Change | % Change | |
RLEC lines | 136,929 | 141,270 | (4,341) | (3.1%) |
CLEC lines | 39,381 | 35,338 | 4,043 | 11.4% |
DSL Subscribers | 14,993 | 8,706 | 6,287 | 72.2% |
Dial-up Internet subscribers | 10,082 | 12,514 | (2,432) | (19.4%) |
Web hosting customers | 929 | 872 | 57 | 6.5% |
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