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News Article | May 4, 2017
Site: www.businesswire.com

ANCHORAGE, Alaska--(BUSINESS WIRE)--Alaska Communications Systems Group, Inc. (NASDAQ: ALSK) today reported financial results for the first quarter of 2017. “ We continue steady progress on the operating front with top and bottom line growth, driven primarily by broadband revenue growth of 11.1%. New fiber capacity to the North Slope through our Quintillion partnership and several new IT partnership certifications provide opportunities for differentiation and continued growth,” said Anand Vadapalli, president and CEO of Alaska Communications. “ With a successful tender for our convertible notes, we are also pleased with the completion of our refinancing activity extending our debt maturities. We remain well positioned to drive long term shareholder value,” concluded Vadapalli. Revenue Highlights: First Quarter 2017 Compared to First Quarter 2016 Financial Metrics: First Quarter 2017 compared to First Quarter 2016 Non-GAAP Metrics: First Quarter 2017 compared to First Quarter 2016 Reconciliations of non-GAAP financial measures to GAAP financial measures can be found in tables at the end of this release and on the company’s website at http://www.alsk.com in the investment data section. Laurie Butcher, Alaska Communications senior vice-president of finance, said, “ We are pleased with the results of the refinance of our balance sheet and expect to see the benefits going forward. For 2017, we are on track for our annual revenue guidance, while providing free cash flow guidance for the year as below. While timing of revenue and cash flow will fluctuate quarter to quarter, we believe our full-year 2017 free cash flow performance will provide a baseline from which we expect to see annual increases.” The company updated guidance as follows: The Company will host a conference call and live webcast on Thursday, May 4, 2017 at 3:00 p.m. Eastern Time to discuss the results. Parties in the United States and Canada can access the call at 1-855-303-0062 and enter pass code 842937. All other parties can access the call at 1-719-785-1762 and use the same code. The live webcast of the conference call will be accessible from the "Events Calendar" section of the Company's website (www.alsk.com). The webcast will be archived for a period of 90 days. A telephonic replay of the conference call will also be available two hours after the call and will run until June 3, 2017 at 6:00 p.m. Eastern Time. To hear the replay, parties in the U.S. and Canada can call 1-888-203-1112 and enter pass code 8667848. All other parties can call 1-719-457-0820 and enter pass code 8667848. Alaska Communications (NASDAQ: ALSK) is the leading provider of advanced broadband and managed IT services for businesses and consumers in Alaska. The company operates a highly reliable, advanced statewide data network with the latest technology and the most diverse undersea fiber optic system connecting Alaska to the contiguous U.S. For more information, visit www.alaskacommunications.com or www.alsk.com. In an effort to provide investors with additional information regarding our financial results, we have provided certain non-GAAP financial information, including Adjusted EBITDA, Adjusted Free Cash Flow and Net Debt. Adjusted EBITDA eliminates the effects of period to period changes in costs that are not directly attributable to the underlying performance of the Company’s business operations and is used by Management and the Company’s Board of Directors to evaluate current operating financial performance, analyze and evaluate strategic and operational decisions and better evaluate comparability between periods. Adjusted Free Cash Flow is a non-GAAP liquidity measured used by Management and the Company’s Board of Directors to assess the Company’s ability to generate cash and plan for future operating and capital actions. Adjusted EBITDA and Adjusted Free Cash Flow are common measures utilized by our peers (other telecommunications companies) and we believe they provide useful information to investors and analysts about the Company’s operating results, financial condition and cash flows. Net Debt provides Management and the Company’s Board of Directors with a measure of the Company’s current leverage position. The definition of these non-GAAP measures is provided on Schedules 4, 6 and 9 to this press release. Adjusted EBITDA and Adjusted Free Cash Flow should not be considered a substitute for Net Income, Net Cash Provided by Operating Activities and other measures of financial performance recorded in accordance with GAAP. Reconciliations of our non-GAAP measures to our nearest GAAP measures can be found in the tables in this release and on our website in the investment data section. Other companies may not calculate non-GAAP measures in the same manner as Alaska Communications. The Company does not provide reconciliations of guidance for Adjusted EBITDA to Net Income, and Adjusted Free Cash Flow to Net Cash from Operating Activities, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company does not forecast certain items required to develop the comparable GAAP financial measures. These items are charges and benefits for uncollectible accounts, certain other non-cash expenses, unusual items typically excluded from Adjusted EBITDA and Adjusted Free Cash Flow, and changes in operating assets and liabilities (generally the most significant of these items, representing cash outflows of $6.0 million in the three-month period of 2017). This press release includes certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's beliefs as well as on a number of assumptions concerning future events made using information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside the Company’s control. Such factors include, without limitation, Federal and Alaska Universal Service Fund changes, adverse economic conditions, the effects of competition in our markets, our relatively small size compared with our competitors, the Company’s ability to compete, manage, integrate, market, maintain, and attract sufficient customers for its products and services, adverse changes in labor matters, including workforce levels, our ability to service our debt and refinance as required, labor negotiations, including renegotiating our collective bargaining agreement, employee benefit costs, our ability to control other operating costs, disruption of our supplier’s provisioning of critical products or services, the impact of natural or man-made disasters, changes in Company's relationships with large customers, unforeseen changes in public policies, regulatory changes, changes in technology and standards, our internal control over financial reporting, and changes in accounting standards or policies, which could affect reported financial results. For further information regarding risks and uncertainties associated with the Company’s business, please refer to the Company's SEC filings, including, but not limited to, the sections entitled "Risk Factors" and " Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of the Company's SEC filings may be obtained by contacting its investor relations department at (907) 564-7556 or by visiting its investor relations website at www.alsk.com. The Company provides certain non-GAAP financial information, including Adjusted EBITDA, Adjusted Free Cash Flow and Net Debt. Adjusted EBITDA eliminates the effects of period to period changes in costs that are not directly attributable to the underlying performance of the Company’s business operations and is used by Management and the Company’s Board of Directors to evaluate current operating financial performance, analyze and evaluate strategic and operational decisions and better evaluate comparability between periods. Adjusted Free Cash Flow is a non-GAAP liquidity measure used by Management to assess the Company’s ability to generate cash and plan for future operating and capital actions. Adjusted EBITDA and Adjusted Free Cash Flow are common measures utilized by our peers (other telecommunications companies) and we believe they provide useful information to investors and analysts about the Company’s operating results, financial condition and cash flows. Net Debt provides Management and the Board of Directors with a measure of the Company’s current leverage position. The Company does not provide reconciliations of guidance for Adjusted EBITDA to Net Income, and Adjusted Free Cash Flow to Net Cash Provided by Operating Activities, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company does not forecast certain items required to develop the comparable GAAP financial measures. These items are charges and benefits for uncollectible accounts, certain other non-cash expenses, unusual items typically excluded from Adjusted EBITDA and Adjusted Free Cash Flow, and changes in operating assets and liabilities (generally the most significant of these items, representing cash outflows of $6.0 million in the three-month period ended March 31, 2017. Adjusted EBITDA and Adjusted Free Cash Flow are not GAAP measures and should not be considered a substitute for net income, net cash provided by operating activities, or net cash provided or used. Adjusted EBITDA as computed below is not consistent with the definition of Consolidated EBITDA referenced in our 2015 Senior Credit Agreements, and other companies may not calculate Non-GAAP measures in the same manner we do. Adjusted EBITDA is defined as net income (loss) before interest, loss on extinguishment of debt, depreciation and amortization, gain or loss on asset purchases or disposals, income taxes, stock-based compensation, pension adjustments, net loss attributable to noncontrolling interest and expenses under the Company’s long term cash incentive plan (“LTCI”). LTCI expenses are considered part of an interim compensation structure, which ended in 2016, to mitigate the dilutive impact of additional share issuances for executive compensation. * Quarterly Adjusted Free Cash Flow fluctuates and should not be viewed as an indicator of annual performance. Onetime events, seasonality of capital spend and the timing of interest payments may result in negative Adjusted Free Cash Flow in one or more quarters. Adjusted Free Cash Flow is a non-GAAP liquidity measure and is defined as Adjusted EBITDA, less recurring operating cash requirements which include capital expenditures, cash income taxes refunded or paid, cash interest paid, amortization of GCI capacity revenue, and cash receipts and payments associated with the purchase of the North Slope fiber network and establishment of our joint venture with QHL. Amortization of deferred revenue associated with our interconnection agreement with GCI is excluded from Adjusted Free Cash Flow because no cash was received by the Company in connection with this agreement. Amortization of all other deferred revenue, including that associated with other IRU capacity arrangements, is included in Adjusted Free Cash Flow because cash was received by the Company, typically at contract inception, and is being amortized to revenue over the term of the relevant agreement. See Schedule 3 for Net cash provided by operating activities, Net cash used by investing activities, and Net cash provided (used) by financing activities. See Schedule 5 for the reconciliation of net cash provided by operating activities to Adjusted Free Cash Flow.


Trademark
Alaska Communications Systems Group | Date: 2012-11-08

Computer application software for mobile phones, namely, software for accessing phone system features from a mobile phone.


Trademark
Alaska Communications Systems Group | Date: 2014-03-11

Computer application software for mobile phones, namely, software for accessing phone system features from a mobile phone.


News Article | November 2, 2016
Site: www.businesswire.com

ANCHORAGE, Alaska--(BUSINESS WIRE)--Alaska Communications Systems Group, Inc. (NASDAQ:ALSK) today reported financial results for the third quarter of 2016. “I am pleased to report another quarter of solid performance to our plan, furthering our record of delivering consistent results. For the third quarter 2016 compared to a year ago, revenue increased 3.2 percent, driven by an 8.3 percent increase for business and wholesale and a 14.0 percent increase for total broadband,” said Anand Vadapalli


News Article | June 18, 2004
Site: gigaom.com

Broadband Reports: notes that Alaska gets EV-DO aka 3G before New York City. The site notes that Alaska Communications Systems Group has launched an EV-DO wireless broadband service in the US. While this press release claims speeds “up to” 2.4Mbps, true speeds of these networks usually run around 300-500kbps downstream, with occasional bursts.


News Article | October 19, 2010
Site: www.cnet.com

Few film companies are assailing piracy with the vigor of Third World Media. Third World Media (TMW), a porn studio headquartered north of Los Angeles, filed a lawsuit two weeks ago against 1,568 unnamed individuals, accusing them of using peer-to-peer networks to unlawfully share copies of "Miss Big Ass Brazil #4," records show. "Each of the defendant's acts of infringement have been willful, intentional, and in disregard of...the rights of plaintiff," TWM's attorneys wrote in their filing of October 4. The suit came just two weeks after TWM filed a similar complaint against an additional 1,243 unnamed defendants in U.S. District Court in West Virginia involving another adult film. What makes TWM's efforts noteworthy is that not only is the company filing copyright complaints against more individuals than most porn studios that are taking a similar tack, but the company is also filing claims in different courts around the country and has indicated more suits are on the way. In the more recent complaint, filed in U.S. District for the Northern District of California, TWM included 64 pages of information containing the defendants' IP addresses, the names of their Internet service providers, and dates and times they allegedly shared the files (you can check out a sample of the information by clicking on the photos below). Ira Siegel, the Beverly Hills, Calif.-based attorney representing TWM in the California complaint, declined to comment. The defendants are named as John Does because the studio will learn their identities after only subpoenaing records from each person's ISP. What all this comes down to is this: if you've illegally downloaded "Miss Big Ass Brazil #4," or any of TWM's other films, the studio appears to be preparing to take you to court. This is only the latest attempt by adult-film companies and indie film studios to take the antipiracy fight into the homes of people ripping them off and trying to conceal themselves in the Internet. Since 2008, when the music industry gave up on filing suits against individuals for sharing music illegally, litigation against individual file sharers appeared to be no longer a threat. But the adult-film industry appears to be following the lead of Dunlap Grubb & Weaver, the Washington, D.C. law firm based that in January began filing complaints on behalf of independent film studios and began a trend of naming thousands of accused illegal file sharers as defendants in individual lawsuits. What separates the copyright suits filed by indie film studios from those filed by pornographers, however, is that being accused of sharing pornography has the potential to be far more stigmatizing than being accused of sharing a film like Cindy Cohn, legal director for the Electronic Frontier Foundation, an advocacy group for tech companies and Internet users, believes that this is the kind of veiled threat that makes these lawsuits much more like a "shakedown." "People have a very good interest in not being sued but also in not having their name associated here if they've been wrongly accused," said Cohn, who has led EFF's opposition to the suits from Dunlap and porn studios. "The leverage to get people to pay to make it go away when what they are accused of having done, in cases of hard-core porn or gay porn, is much higher." In the suit filed in California, all the cases of alleged illegal file sharing appear to have occurred between March and July of this year. The defendants appear to come from across the country and are represented by a wide swath of ISPs, including all the majors: Comcast, AT&T, and Verizon. In addition to a score of smaller regional players (Cablespeed Maryland, Midcontinent Communications and Alaska Communications Systems Group to name a few), are service providers from the Massachusetts Institute of Technology, Dartmouth College, the University of Central Florida, the University of California at Riverside, and the Tennessee Board of Regents. Louis Svendsen, general counsel for the Tennessee Board of Regents, said in an e-mail that his office was unaware of the copyright complaint until contacted by CNET. "We are just beginning our investigation and have no comment at this time," he said. Another way that the lawsuits from Dunlap and the porn industry may differ from previous attempts to sue individuals is that the copyright owners appear to have less accurate information, Cohn said. EFF has seen a high number of apparent false positives, according to her. "It does appear to us that whatever investigative techniques that [some copyright owners] are using are not very good," Cohn said. At this point at least, the adult-film industry doesn't appear to be backing down. Last month, on the same day that TWM filed its copyright suit, three other porn studios filed nearly identical suits in West Virginia federal court as well. Note to readers:If your ISP gets a subpoena on this issue, please send me a copy. My e-mail is below. I won't include your name or any identifying info in any story if that's what you wish. Thanks.


News Article | August 10, 2015
Site: www.businesswire.com

ANCHORAGE, Alaska--(BUSINESS WIRE)--Alaska Communications Systems Group, Inc. (NASDAQ: ALSK) today reported financial results for the second quarter of 2015. “Solid second quarter results tracked with our expectations, delivering good sequential top line growth and meeting targeted operational milestones all of which bode well for continued performance. “In July, we posted a record breaking month of new sales activity with signed contracts representing annualized new revenues of $7.8 million. This incremental new revenue is expected to begin in the fourth quarter of this year giving further support to the momentum in Business and Wholesale revenue growth that makes us one of the fastest growing companies in our sector. “We are also on track with our planned synergies related to the sale of our wireless operations and achieved significant cost reductions toward the back half of the quarter. We expect the financial benefits in the form of lower operating expense to be reflected in the third quarter as planned. With lower operating expense levels going forward and our continued top line performance, we reaffirm our run rate Adjusted EBITDA exiting 2015 guidance and are well poised to deliver shareholder value,” said President and CEO Anand Vadapalli. Second Quarter 2015 Financial Highlights Compared to Second Quarter 2014 Top line performance was solid, as reflected by the following revenue categories. Impact of Cost Savings and Synergies Related to the Sale of Wireless Business “In addition to positioning the business for future strong performance, we have been diligently working to refinance the current balance of $80.4 million on the term loan facility that matures late next year. We are pleased we have secured commitment letters from lenders and look forward to finalizing the credit agreements to bring this process to a close,” said CFO Wayne Graham. The company’s 2015 guidance is confirmed as follows: 1. The purchase of the North Slope Network is not included in capital spending guidance. Schedule 5 presents the impact of this investment on overall capital spending results for the year. The company will host a conference call and live webcast on Monday, August 10, 2015 at 2:00 p.m. Eastern Daylight Time to discuss the results. The live webcast will include a slide presentation. Parties in the U.S. and Canada can access the call at 1-888-542-1137 and enter pass code 148513. All other parties can access the call at 1-719-955-1569. The live webcast of the conference call will be accessible from the “Events Calendar” section of the company’s website (www.alsk.com). The webcast will be archived for 90 days. A replay of the call will be available two hours after the call and will run until September 11, 2015, at 5:00 p.m. EDT. To hear the replay, parties in the U.S. and Canada can call 1-888-203-1112 and enter pass code 5979520. All other parties can call 1-719-457-0820 and enter pass code 5979520. Alaska Communications (NASDAQ: ALSK) is the leading provider of advanced broadband and IT managed services for businesses and consumers in Alaska. The company operates a highly reliable, advanced statewide data network with the latest technology and the most diverse undersea fiber optic system connecting Alaska to the contiguous U.S. For more information, visit www.alaskacommunications.com or www.alsk.com. In an effort to provide investors with additional information regarding our financial results, in particular with regards to our liquidity and capital resources, we have disclosed certain non-GAAP financial information such as Adjusted EBITDA, and Free Cash Flow, which management utilizes to assess performance and believes provides useful information to investors. The definition of these non-GAAP measures are on Schedules 4 and 5 to this press release. Adjusted EBITDA, and Free Cash Flow are non-GAAP measures and should not be considered a substitute for net cash provided by operating activities and other measures of financial performance recorded in accordance with GAAP. Reconciliations of our non-GAAP measures to our nearest GAAP measures can be found on our website at http://www.alsk.com in the investment data section. Other companies may not calculate non-GAAP measures in the same manner as ACS. This press release includes certain “forward-looking statements,” as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s beliefs as well as on a number of assumptions concerning future events made using information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside ACS’ control. Such factors include, without limitation, our ability to realize cost savings from the sale of our wireless operations, Universal Service Fund changes, adverse economic conditions, adverse conditions in the credit markets impacting the cost, including interest rates, and/or availability of financing, including the refinancing of our senior credit facility maturing in October 2016, and the effects of competition in our markets, our relatively small size compared with our competitors, the Company’s ability to compete, manage, integrate, market, maintain, and attract sufficient customers for its products and services, adverse changes in labor matters, including workforce levels, labor negotiations, and benefits costs, disruption of our supplier’s provisioning of critical products or services, the impact of natural or man-made disasters, changes in Company’s relationships with large customers, unforeseen changes in public policies, and changes in accounting policies, which could result in an impact on earnings. For further information regarding risks and uncertainties associated with ACS’ business, please refer to the Company’s SEC filings, including, but not limited to, the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of the Company’s SEC filings may be obtained by contacting its investor relations department at (907) 564-7556 or by visiting its investor relations website at www.alsk.com. In an effort to provide investors with additional information regarding the Company’s results as determined by GAAP, the Company also discloses certain non-GAAP information which management utilizes to assess recurring performance and believes provides useful information to investors regarding baseline operating results. The Company has disclosed Adjusted EBITDA as net income before interest, depreciation and amortization, gain or loss on asset purchases or disposals, earnings on equity method investments, gain on the sale of our wireless operations, provisions for taxes, wireless transaction-related costs, loss attributable to noncontrolling interest, stock-based compensation, and expenses under the company’s long term cash incentive plan (“LTCI”). LTCI expenses are considered part of an interim compensation structure to mitigate the dilutive impact of additional share issuances for executive compensation. Distributions from AWN are included in Adjusted EBITDA. In an effort to provide investors with additional information regarding the Company’s results as determined by GAAP, the Company also discloses certain non-GAAP information which management utilizes to assess recurring performance and believes provides useful information to investors regarding baseline operating results. Free cash flow (“FCF”) is defined as Adjusted EBITDA, less recurring operating cash requirements which include capital expenditures, net of cash received for a fiber build for carrier customer, less cash interest expense, significant non-cash revenue associated with our interconnection agreement with AWN and GCI, and in Q2 2015 the purchase of the North Slope fiber network. ACS continues to have net operating losses and is not a significant taxpayer on ordinary income. Income taxes paid in 2015 are related to the Wireless retail sale and are not included in free cash flow.


News Article | May 7, 2015
Site: www.businesswire.com

ANCHORAGE, Alaska--(BUSINESS WIRE)--Alaska Communications Systems Group, Inc. (NASDAQ: ALSK) today reported financial results for the first quarter of 2015. “We delivered yet another quarter of industry leading growth. Our business is performing well across all categories, and we continue to turn-up services for an increasing array of customers. In February, we closed the sale of our wireless operations. Then in April, we completed the wireless transition services ahead of schedule. We are on track to achieve targeted synergies and run-rate Adjusted EBITDA exiting 2015,” President and CEO Anand Vadapalli said. “Additionally in April, we made a strategic acquisition of a fiber optic network on the North Slope from ConocoPhillips that opens up a new set of opportunities in broadband and IT managed services. We expect this investment to be accretive to our growth over the years to come. Concurrently, we entered into a multi-year services agreement with ConocoPhillips, establishing an anchor tenant on the network. “We are positioned as a strong and focused broadband provider, continuing our proven track record of creating value for our shareholders.” First Quarter 2015 Revenue Highlights Compared to First Quarter 2014 “With the wireless sale now complete, we are focused on refinancing activities,” Chief Financial Officer Wayne Graham said. “We are pursuing a strategy of replacing our existing term loan facility, with a new facility in the range of $100 million to $120 million. We look forward to completing this process in the next few months.” The company reaffirmed guidance for the year as follows: The company will host a conference call and live webcast on Friday, May 8, 2015 at 1:00 p.m. Eastern Standard Time to discuss the results. The live webcast will include a slide presentation. Parties in the U.S. and Canada can access the call at 1-888-461-2030 and enter pass code 933823. All other parties can access the call at 1-719-457-2704. The live webcast of the conference call will be accessible from the "Events Calendar" section of the company's website (www.alsk.com). The webcast will be archived for 90 days. A replay of the call will be available two hours after the call and will run until June 9, 2015, at 4:00 p.m. EDT. To hear the replay, parties in the U.S. and Canada can call 1-888-203-1112 and enter pass code 2186769. All other parties can call 1-719-457-0820 and enter pass code 2186769. Alaska Communications (NASDAQ: ALSK) is the leading provider of advanced broadband and IT managed services for businesses and consumers in Alaska. The company operates a highly reliable, advanced statewide data network with the latest technology and the most diverse undersea fiber optic system connecting Alaska to the contiguous U.S. For more information, visit www.alaskacommunications.com or www.alsk.com. In an effort to provide investors with additional information regarding our financial results, in particular with regards to our liquidity and capital resources, we have disclosed certain non-GAAP financial information such as Adjusted EBITDA, and Free Cash Flow, which management utilizes to assess performance and believes provides useful information to investors. The definition of these non-GAAP measures are on Schedules 4 and 5 to this press release. Adjusted EBITDA, and Free Cash Flow are non-GAAP measures and should not be considered a substitute for net cash provided by operating activities and other measures of financial performance recorded in accordance with GAAP. Reconciliations of our non-GAAP measures to our nearest GAAP measures can be found on our website at http://www.alsk.com in the investment data section. Other companies may not calculate non-GAAP measures in the same manner as ACS. This press release includes certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's beliefs as well as on a number of assumptions concerning future events made using information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside ACS' control. Such factors include, without limitation, our ability to realize targeted synergies following the sale of our wireless operations, Universal Service Fund changes adverse economic conditions, adverse conditions in the credit markets impacting the cost, including interest rates, and/or availability of financing, including the refinancing of our senior credit facility maturing in October 2016, and the effects of competition in our markets, our relatively small size compared with our competitors, the Company’s ability to compete, manage, integrate, market, maintain, and attract sufficient customers for its products and services, adverse changes in labor matters, including workforce levels, labor negotiations, and benefits costs, disruption of our supplier’s provisioning of critical products or services, the impact of natural or man-made disasters, changes in Company's relationships with large customers, unforeseen changes in public policies, and changes in accounting policies, which could result in an impact on earnings. For further information regarding risks and uncertainties associated with ACS' business, please refer to the Company's SEC filings, including, but not limited to, the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of the Company's SEC filings may be obtained by contacting its investor relations department at (907) 564-7556 or by visiting its investor relations website at www.alsk.com.


News Article | August 10, 2015
Site: www.businesswire.com

ANCHORAGE, Alaska--(BUSINESS WIRE)--Alaska Communications Systems Group, Inc. (NASDAQ: ALSK) today reported financial results for the second quarter of 2015. “Solid second quarter results tracked with our expectations, delivering good sequential top line growth and meeting targeted operational milestones all of which bode well for continued performance. “In July, we posted a record breaking month of new sales activity with signed contracts representing annualized new revenues of $7.8 million. This incremental new revenue is expected to begin in the fourth quarter of this year giving further support to the momentum in Business and Wholesale revenue growth that makes us one of the fastest growing companies in our sector. “We are also on track with our planned synergies related to the sale of our wireless operations and achieved significant cost reductions toward the back half of the quarter. We expect the financial benefits in the form of lower operating expense to be reflected in the third quarter as planned. With lower operating expense levels going forward and our continued top line performance, we reaffirm our run rate Adjusted EBITDA exiting 2015 guidance and are well poised to deliver shareholder value,” said President and CEO Anand Vadapalli. Second Quarter 2015 Financial Highlights Compared to Second Quarter 2014 Top line performance was solid, as reflected by the following revenue categories. Impact of Cost Savings and Synergies Related to the Sale of Wireless Business “In addition to positioning the business for future strong performance, we have been diligently working to refinance the current balance of $80.4 million on the term loan facility that matures late next year. We are pleased we have secured commitment letters from lenders and look forward to finalizing the credit agreements to bring this process to a close,” said CFO Wayne Graham. The company’s 2015 guidance is confirmed as follows: 1. The purchase of the North Slope Network is not included in capital spending guidance. Schedule 5 presents the impact of this investment on overall capital spending results for the year. The company will host a conference call and live webcast on Monday, August 10, 2015 at 2:00 p.m. Eastern Daylight Time to discuss the results. The live webcast will include a slide presentation. Parties in the U.S. and Canada can access the call at 1-888-542-1137 and enter pass code 148513. All other parties can access the call at 1-719-955-1569. The live webcast of the conference call will be accessible from the “Events Calendar” section of the company’s website (www.alsk.com). The webcast will be archived for 90 days. A replay of the call will be available two hours after the call and will run until September 11, 2015, at 5:00 p.m. EDT. To hear the replay, parties in the U.S. and Canada can call 1-888-203-1112 and enter pass code 5979520. All other parties can call 1-719-457-0820 and enter pass code 5979520. Alaska Communications (NASDAQ: ALSK) is the leading provider of advanced broadband and IT managed services for businesses and consumers in Alaska. The company operates a highly reliable, advanced statewide data network with the latest technology and the most diverse undersea fiber optic system connecting Alaska to the contiguous U.S. For more information, visit www.alaskacommunications.com or www.alsk.com. In an effort to provide investors with additional information regarding our financial results, in particular with regards to our liquidity and capital resources, we have disclosed certain non-GAAP financial information such as Adjusted EBITDA, and Free Cash Flow, which management utilizes to assess performance and believes provides useful information to investors. The definition of these non-GAAP measures are on Schedules 4 and 5 to this press release. Adjusted EBITDA, and Free Cash Flow are non-GAAP measures and should not be considered a substitute for net cash provided by operating activities and other measures of financial performance recorded in accordance with GAAP. Reconciliations of our non-GAAP measures to our nearest GAAP measures can be found on our website at http://www.alsk.com in the investment data section. Other companies may not calculate non-GAAP measures in the same manner as ACS. This press release includes certain “forward-looking statements,” as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s beliefs as well as on a number of assumptions concerning future events made using information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside ACS’ control. Such factors include, without limitation, our ability to realize cost savings from the sale of our wireless operations, Universal Service Fund changes, adverse economic conditions, adverse conditions in the credit markets impacting the cost, including interest rates, and/or availability of financing, including the refinancing of our senior credit facility maturing in October 2016, and the effects of competition in our markets, our relatively small size compared with our competitors, the Company’s ability to compete, manage, integrate, market, maintain, and attract sufficient customers for its products and services, adverse changes in labor matters, including workforce levels, labor negotiations, and benefits costs, disruption of our supplier’s provisioning of critical products or services, the impact of natural or man-made disasters, changes in Company’s relationships with large customers, unforeseen changes in public policies, and changes in accounting policies, which could result in an impact on earnings. For further information regarding risks and uncertainties associated with ACS’ business, please refer to the Company’s SEC filings, including, but not limited to, the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of the Company’s SEC filings may be obtained by contacting its investor relations department at (907) 564-7556 or by visiting its investor relations website at www.alsk.com. In an effort to provide investors with additional information regarding the Company’s results as determined by GAAP, the Company also discloses certain non-GAAP information which management utilizes to assess recurring performance and believes provides useful information to investors regarding baseline operating results. The Company has disclosed Adjusted EBITDA as net income before interest, depreciation and amortization, gain or loss on asset purchases or disposals, earnings on equity method investments, gain on the sale of our wireless operations, provisions for taxes, wireless transaction-related costs, loss attributable to noncontrolling interest, stock-based compensation, and expenses under the company’s long term cash incentive plan (“LTCI”). LTCI expenses are considered part of an interim compensation structure to mitigate the dilutive impact of additional share issuances for executive compensation. Distributions from AWN are included in Adjusted EBITDA. In an effort to provide investors with additional information regarding the Company’s results as determined by GAAP, the Company also discloses certain non-GAAP information which management utilizes to assess recurring performance and believes provides useful information to investors regarding baseline operating results. Free cash flow (“FCF”) is defined as Adjusted EBITDA, less recurring operating cash requirements which include capital expenditures, net of cash received for a fiber build for carrier customer, less cash interest expense, significant non-cash revenue associated with our interconnection agreement with AWN and GCI, and in Q2 2015 the purchase of the North Slope fiber network. ACS continues to have net operating losses and is not a significant taxpayer on ordinary income. Income taxes paid in 2015 are related to the Wireless retail sale and are not included in free cash flow.

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