Press Release
08-06-09 - D&E COMMUNICATIONS REPORTS SECOND QUARTER 2009 RESULTS
D&E COMMUNICATIONS, INC. FOR IMMEDIATE RELEASE August 6, 2009 | CONTACT PERSON: |
EPHRATA, PENNSYLVANIA (August 5, 2009) - D&E Communications, Inc. ("D&E" or the "Company") (Nasdaq: DECC), a leading provider of integrated communications services in central and eastern Pennsylvania, today announced the results of its operations for the second quarter ended June 30, 2009.
For the second quarter of 2009, the Company reported a net loss attributable to common shareholders of $0.2 million, or $0.02 per share, compared to a net loss attributable to common shareholders of $11.9 million, or $0.82 per share, for the same period last year. Operating income for the second quarter of 2009 was $1.7 million, compared to an operating loss of $18.1 million in the second quarter of 2008. Total operating revenue for the second quarter of 2009 was $35.8 million, compared to $37.5 million in the second quarter of 2008.
Results for the second quarter of 2009 included a non-cash intangible asset impairment of $5.5 million ($3.2 million, or $0.22 per share, after tax) on the Wireline franchise intangible assets as a result of the Company's annual test for impairment of goodwill and intangible assets as of April 30, 2009. In the same period of the prior year, the Company recorded a non-cash intangible asset impairment of $26.2 million ($15.3 million, or $1.06 per share, after tax) in conjunction with the annual impairment test in 2008.
Operating income increased $19.8 million due to a reduction in operating expenses of $21.5 million primarily due to the decline in the intangible asset impairment of $20.7 million, partially offset by a decline in operating revenue of $1.7 million. Wireline depreciation expense decreased $0.4 million ($0.2 million, or $0.02 per share, after tax) primarily due to certain fixed assets becoming fully depreciated in June and July 2008. In the second quarter of 2009, the Company incurred costs of $0.8 million ($0.5 million, or $0.04 per share, after tax) related to its proposed merger with Windstream Corporation and other operating expenses decreased $1.2 million. The revenue decrease of $1.7 million for the second quarter of 2009 was the result of decreases in Wireline and Systems Integration segment revenues of $1.5 million and $0.2 million, respectively.
Adjusted net income attributable to common shareholders for the second quarter of 2009, before the items described above, was $3.3 million, or $0.22 per share. Adjusted net income attributable to common shareholders for the second quarter of 2008, before the items described above, was $3.4 million, or $0.24 per share. Reconciliation between the non-generally accepted accounting principles ("non-GAAP") financial measure of adjusted net income and the GAAP financial measure of net income is provided in the table below. Management believes the non-GAAP measure provides useful information to both management and investors by excluding certain nonrecurring revenues and expenses that may not be indicative of the Company's core operating results, and will enhance the ability of management and investors to compare our results of operations from period to period.
For the six months ended June 30, 2009, the Company reported net income attributable to common shareholders of $3.8 million, or $0.26 per share, compared to a net loss attributable to common shareholders of $6.8 million, or $0.47 per share, for the same period last year. Operating income for the six months ended June 30, 2009 was $10.4 million, compared to an operating loss of $10.0 million in the six months ended June 30, 2008. The Company reported total operating revenue of $71.8 million for the six months ended June 30, 2009, compared to $75.3 million for the same period last year.
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