Press Release
D&E COMMUNICATIONS, INC. FOR IMMEDIATE RELEASE November 07, 2005 | FOR IMMEDIATE RELEASE CONTACT PERSON: |
EPHRATA, PENNSYLVANIA (November 7, 2005) - 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 third quarter ended September 30, 2005.
For the third quarter of 2005, the company reported total operating revenue of $44.3 million, as compared to $43.7 million in the third quarter of 2004. Net income for the third quarter was $2.4 million, or $0.17 per share, as compared to a net income of $0.7 million, or $0.05 per share, for the same period last year.
For the nine months ended September 30, 2005, the company reported total operating revenue of $131.2 million, as compared to $131.6 million in the same period last year. Net income for the nine months ended September 30, 2005 was $6.6 million, or $0.46 per share, as compared to a net loss of $0.3 million, or $0.02 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. Earnings before these items were $0.37 per share in the nine months of 2005 compared with $0.19 per share in the nine months of 2004.
"Highlights of this quarter demonstrate that we continue to make steady progress in the growth of our Digital Subscriber Lines and Competitive Local Exchange Carrier access lines," said James W. Morozzi, President and Chief Executive Officer of D&E Communications. "Our broadband DSL subscriber count is up 74% and our CLEC lines are up 9%, offsetting the 3% loss of RLEC lines year over year from September 30, 2004 to September 30, 2005. These results indicate that, in spite of pressure on RLEC access lines from increasing competition, revenue has increased and operating income is up in the RLEC segment. Expense reduction in the RLEC has helped drive operating income up this quarter."
"In our ISP segment", Morozzi continued, "even though operating revenue is up, operating income is down slightly due to new capacity that has been added to handle the growth in this business. The start up of VoIP activity also increased expenses that were not being incurred in the third quarter of 2004."
Summary Statistics
September 30, 2005 | September 30, 2004 | Change | % Change | |
RLEC lines | 135,457 | 140,243 | (4,786) | (3.4%) |
CLEC lines | 40,703 | 37,398 | 3,305 | 8.8% |
DSL Subscribers | 17,375 | 10,008 | 7,367 | 73.6% |
Dial-up Internet subscribers | 8,957 | 12,071 | (3,114) | (25.8%) |
Web hosting customers | 946 | 901 | 45 | 5.0% |
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