Revenues totaled $26 million for the fourth quarter ended December 31, 2000, a 4.6 percent increase over the $24.9 million reported in the fourth quarter of 1999.
Net income for the full year ended December. 31, 2000, was $7.8 million, or 56 cents per diluted share, compared with $9.5 million, or 69 cents per diluted share for the same period in 1999, prior to gains from certain non-recurring transactions. Net income for the fourth quarter of 2000 was $1.5 million, or 10 cents per diluted share, compared with $2.1 million, or 15 cents per diluted share in 1999.
HickoryTech added more than 13,000 customers in the fourth quarter of 2000, which is more customers than were added in the three previous quarters combined.
The company’s customer base grew 23 percent over the same quarter one year ago, totaling 131,596 at the close of the fourth quarter this year.
Earnings before interest, taxes, depreciation and amortization for the year increased six percent over 1999, to $36.6 million.
HickoryTech is proud of the solid financial results reported for 2000, said Robert D. Alton, Jr., HickoryTech’s Chairman and CEO. With total company revenues exceeding $100 million for the first time in the history of the company and growth of 23 percent in our customer base during the year, HickoryTech continues to provide growth and long-term value to its shareholders.
In the year 2000, HickoryTech added 6,730 wired customer lines, 6,220 long distance customers and 6,294 internet customers, including 4,834 through the purchase of a Mankato-based Internet provider, said Alton. In addition, we were pleased to add a record 2,433 wireless customers in the fourth quarter of 2000, bringing wireless customer net additions to a total of 5,389 during the year. All our business lines contributed to HickoryTech’s growth during the year.
Fourth-quarter 2000 operating revenues increased 4.6 percent to $26.0 million, compared with $24.9 million in the comparable quarter of 1999. For the full year, 2000 operating revenues increased 5.2 percent to $102.1 million, compared with $97.1 million for 1999. The primary contributors to revenue growth were the wired telephone businesses of the company and continued growth in wireless customers.
Fourth-quarter 2000 operating income decreased 4.6 percent to $5.3 million, from $5.5 million in the comparable quarter of 1999. For the full year, 2000 operating income increased 3.3 percent to $22.3 million, compared with $21.6 million in 1999. The primary causes of the decrease in operating income for the fourth quarter include greater operating expenses stemming from the record growth in wireless customers, additional depreciation expense as the result of continued investment in wireline infrastructure/expansion and increased corporate costs.
Commenting on the company’s projections for 2001, Mr. Alton added, In the year 2001, the company’s growth will continue to come from the offering of competitive local exchange carrier services in selected markets and the development of our wireless business. Operating income in the fourth quarter of 2000 reflected HickoryTech’s record customer additions that are seasonal to our business. Heading into 2001, we expect customer growth to return to the level experienced during the first three quarters of 2000. However, the additional interest expense and depreciation associated with our capital investments will continue to have an effect on our financial results.
