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LICT Corporation Reports 2025 First Quarter Results

LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) reports financial results for the quarter ended March 31, 2025. Total revenues for the first quarter of 2025 increased by $1.1 mil...

Autore: Business Wire

LICT Corporation Reports 2025 First Quarter Results

2025-Unaudited First Quarter Results

RYE, N.Y.: LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) reports financial results for the quarter ended March 31, 2025.

Total revenues for the first quarter of 2025 increased by $1.1 million, or 3.3%, to $34.6 million, compared to $33.5 million in the same quarter of 2024.

Non-regulated revenues for the first quarter of 2025 increased by $900,000, or 4.9%, to $19.4 million, compared to $18.5 million in the prior year’s first quarter, driven by higher sales of broadband services and high-speed data circuits.

Regulated revenues were $15.2 million in the first quarter of 2025, representing an increase of $200,000, or 1.3%, compared to $15.0 million. Regulated revenues were bolstered by initial inclusion of $800,000 from Manti Telephone Company (MTC). This acquisition, which closed on January 1, 2025, underscores our continued strategic expansion in rural markets. The quarter was crimped by a decline in voice and interstate access revenues due to a drop in special access circuits which have been replaced with lower-cost broadband services.

Total EBITDA for the first quarter of 2025 was $13.8 million, compared to $14.7 million in the first quarter of 2024, reflecting a decrease of $900,000, or 6.1%. This decline was primarily driven by increased operating costs, including higher expenses for expanded staffing and professional services related to our operational expansion, as well as elevated repair and maintenance activity in the Company’s New Mexico and Utah operations.

Effective February 1, 2025, under Dan Morrison, former President of our California-Oregon operations assumed responsibility for our New Mexico operations. The leadership team is actively collaborating with existing staff to advance the build-out initiatives under both the Enhanced Alternative Connect America Model (E-ACAM) program and the ReConnect grant program. In parallel, the team remains focused on executing operational enhancements and disciplined cost management strategies aimed at improving efficiency and supporting sustainable revenue and margin growth.

Non-regulated EBITDA for the first quarter of 2025 was $7.3 million, unchanged from the same period in 2024.

Regulated EBITDA for the first quarter of 2025 was $6.5 million, compared to $7.4 million in the same period of 2024, reflecting a decrease of $900,000, or 12.2%. The decline was primarily driven by losses of wireline customers who are choosing to drop their voice service but are subscribing to high-speed data service, reduced revenues due to a mandatory 5% reduction in switched regulatory revenues and higher operating expenses as detailed above.

OTHER INCOME/(EXPENSES) – Total other income increased by $700,000 in the first quarter of 2025, compared to a loss of $700,000 in the first quarter of 2024. This improvement was primarily driven by a $1.0 million favorable change in unrealized gains on our 19% investment in MachTen, Inc.

EARNINGS PER SHARE – Earnings per share from continuing operations for the first quarter of 2025 were $256 per share compared to $294 per share in last year’s first quarter.

Share Repurchase - Program - During the first quarter of 2025, the Company repurchased 166 shares for a total of $2.6 million, at an average price of $14,391 per share. This reflects the Company’s continued commitment to disciplined capital allocation and enhancing long-term shareholder value. As of March 31, 2025, LICT had 16,007 shares outstanding.

FCC Programs and Other Capital Expenditures

I. ENHANCED ALTERNATIVE CONNECT AMERICA COST MODEL (E-ACAM) PROGRAM

II. RECONNECT III and RECONNECT IV-

III. AFFORDABLE CONNECTIVITY PROGRAM (ACP)

Strategic Initiatives

Acquisitions: On January 1, 2025, following receipt of all required regulatory approvals, the Company completed the acquisition of Manti Telephone Company (MTC), the regulated business segment of the broader Manti transaction. This acquisition was financed with $8.3 million of seller debt and $12,000 cash and aligns with the Company’s strategic focus on expanding its presence in rural markets and enhancing its broadband service capabilities.

We are pleased to welcome the MTC team to the Company and look forward to working together to deliver high-quality service to customers and drive long-term value for our stakeholders.

Projects: In March 2025, our wholly owned subsidiary, Central Scott telephone, completed its $15 million broadband infrastructure expansion project in Scott County, Iowa, as part of the Iowa Notice of Funding Availability (NOFA) 6 grant program. Following the successful deployment of Fiber to approximately 1,900 locations in our Central Scott exchange, the Company received the expected $7.2 million in grant funding from the State of Iowa on March 31, 2025.

Fixed Wireless/5G — Sound Broadband LLC, the wireless subsidiary of LICT Corporation, completed 5G deployments in its existing markets and expanded into new regions, including New Mexico, California, Kansas, and Utah. The company is currently identifying sites in California, Iowa and Kansas for new expansion markets, while also working to reduce costs across its current deployments to deliver the highest speeds at the best possible cost to customers. Sound Broadband remains committed to bridging the digital divide and delivering next-generation connectivity across diverse sectors and underserved regions.

Annual Meeting Date

The LICT annual meeting of Stockholders will be held at 10:30 am on June 6, 2025.

The meeting will be held at 401 Theodore Fremd Avenue, Rye, NY 10580.

OPERATING STATISTICS/BROADBAND DEPLOYMENT AND OTHER ASSETS

LICT owns and operates 7,077 miles of fiber optic cable, 8,950 miles of copper cable, 846 miles of coaxial cable, 104 towers, along with other assets including spectrum with a cost of $29.5 million, investments in MachTen of $4.4 million and Aureon valued at $9.0 million.

 

 

March 31,
2025

 

December 31,
2024

Increase
(Decrease)

Percent
Increase
(Decrease)

Broadband lines

49,778

49,497

281

0.6%

Voice Lines

 

 

 

 

ILEC

17,189

15,871

1,318

8.3%

Out of franchise

5,843

6,113

(270)

-4.4%

Total

23,032

21,984

1,048

4.8%

Video Subscribers

3,361

3,467

(106)

-3.1%

Revenue Generating Units

76,171

74,948

1,223

1.6%

This release contains certain forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation anticipated financial results, financing, capital expenditures and corporate transactions. It should be recognized that such information is based upon certain assumptions, projections and forecasts, including without limitation, business conditions and financial markets, regulatory and other approvals, and the cautionary statements set forth in documents filed by LICT on its website, www.lictcorp.com. As a result, there can be no assurance that any possible transactions will be accomplished or be successful, or that financial targets will be met. Such forward-looking information is subject to uncertainties, risks and inaccuracies, which could be material.

LICT Corporation is a holding company with subsidiaries in broadband and other telecommunications services that actively seeks acquisitions, principally in its existing business.

LICT Corporation Statements of Operations

(In Thousands, Except Per Share Data)

Three Months Ended March 31,

2025
(Unaudited)

2024
(Unaudited)

Revenues

$

34,609

 

$

33,499

 

Cost and Expenses:

 

 

 

Cost of revenue, excluding depreciation and amortization

 

17,594

 

 

16,073

 

General and administrative costs at operations

 

3,195

 

 

 

2,746

 

Corporate office expenses

 

1,412

 

 

 

1,278

 

Depreciation and amortization

 

6,827

 

 

 

6,005

 

Total Costs and Expenses

 

29,028

 

 

 

26,102

 

Operating profit

 

5,581

 

 

 

7,397

 

Other Income (Expense)

 

 

 

 

 

 

 

Investment income

 

784

 

 

894

 

Interest expense

 

(1,147

)

 

 

(970

)

Unrealized gain/(loss) on investment

 

424

 

 

 

(594

)

Equity in earnings of affiliated companies

 

(66

)

 

 

(27

)

Other

 

10

 

 

 

38

 

Total Other Income (Expense)

 

5

 

 

 

(659

)

Income from operations before income taxes

 

5,586

 

 

 

6,738

 

Provision for Income Taxes

 

(1,470

)

 

 

(1,761

)

Net Income

$

4,116

 

 

$

4,977

 

 

 

Capital Expenditures

 

 

$

 

 

15,485

 

 

 

 

 

 

$

 

 

16,354

 

 

 

Government Grants Received

$

7,218

 

 

$

 

Basic and Diluted Weighted-Average Shares

 

16,095

 

 

 

16,943

 

Earnings Per Share

$

256

 

 

$

294

 

Actual shares outstanding at end of period

 

16,007

 

 

16,971 

LICT Corporation

Balance Sheet

 

(In Thousands)

 

(Unaudited)
March 31, 2025

 

(Audited)
December 31, 2024

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

16,394

 

$

9,546

Restricted cash

 

1,773

 

 

1,835

Accounts receivable, less allowances of $218 and $190, respectively

 

8,304

 

 

7,834

Grants receivable

 

8,161

 

 

12,759

Materials and supplies

 

12,979

 

 

12,581

Prepaid expenses, and other current assets

 

5,513

 

 

4,681

Total current assets

 

53,124

 

 

49,236

Property, Plant, and Equipment, Net

 

187,149

 

 

179,910

Goodwill

 

51,185

 

 

48,251

Other intangibles

 

35,772

 

 

34,100

Investments in Affiliated Companies

 

6,293

 

 

6,723

Other assets

 

11,297

 

 

10,836

Total assets

$

344,820

 

$

329,056

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

5,993

 

$

8,908

Accrued interest payable

 

338

 

 

105

Accrued liabilities

 

10,646

 

 

9,227

Current maturities of long-term debt

 

9,683

 

 

80

Total current liabilities

 

26,660

 

 

18,320

Long-term debt

 

71,827

 

 

66,556

Deferred income taxes

 

31,920

 

 

31,289

Other liabilities

 

9,280

 

 

9,301

Total liabilities

 

139,687

 

 

125,466

Total shareholders’ equity

 

205,133

 

 

203,590

Total liabilities and shareholders’ equity

$

344,820

 

$

329,056

EBITDA

EBITDA is a widely recognized measure of operating performance and liquidity, commonly used by analysts, investors, and other stakeholders in the telecommunications industry. It provides a useful benchmark by removing variations in financial, capitalization, and tax structures, allowing for better comparability across companies.

We consider EBITDA trends to be a key indicator of our ability to generate sufficient operating cash flow to support working capital needs, service debt obligations, and fund capital expenditures.

EBITDA is calculated as Operating Profit from Continuing Operations, adjusted to include corporate expenses, depreciation and amortization, charitable contributions, and impairment losses.


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