Consolidated revenues for the quarter ended September 30, 2012 were $14.9 million, a 2.2% increase compared to $14.6 million in the quarter ended September 30, 2011, mainly attributed to the growth of the Company’s Fiber-To-The-Premises (“FTTP”) business.
Revenues from the Company’s FTTP business grew 39.2% to $4.8 million in the third quarter ended September 30, 2012, as compared to $3.4 million for the same prior year period. FTTP revenues represented 31.9% of consolidated revenues for the third quarter of 2012, as compared to 23.4% of consolidated revenues for the third quarter of 2011. Sequentially, FTTP revenues grew 5.4% in the third quarter of 2012 as compared to FTTP revenues of $4.5 million in the second quarter of 2012.
For the first nine months of 2012, revenues from the Company’s FTTP business grew 41.9% to $13.3 million from $9.4 million in the first nine months of 2011. Consolidated revenues for the nine months ended September 30, 2012 were $44.9 million, an increase of 4.6% compared to consolidated revenues of $42.9 million for the nine months ended September 30, 2011.
The Company’s total number of FTTP customers as of September 30, 2012 was 9,104 compared to 6,620 FTTP customers as of September 30, 2011, representing an increase of 37.5%.
Average Revenue Per User for all of the Company’s fiber markets is approximately $418 per month for business customers and approximately $99 per month for residential customers.
The FTTP network build out is financed by $99.9 million in funds from the Federal Broadband Stimulus Program, of which 45.9% is in the form of grants and 54.1% is in the form of low cost long-term loans.
During the third quarter, NTS expanded its fiber network to select areas of Wichita Falls, Texas and began its sales launch targeting more than 1,000 potential business customers in that market. Additionally, during the third quarter, NTS began signing up fiber customers in Plainview, Texas. The Company now has a fiber presence in 14 communities in Texas and continues to make solid progress marketing and signing up new subscribers in the communities it enters. During the quarter, NTS continued construction on its FTTP network in southern Louisiana. As the build out progresses, the fiber network will eventually include residential and business customers in the communities of Hammond, Ponchatoula, Natalbany, Tickfaw, Independence and Amite, Louisiana, adding approximately 11,500 FTTP passings.
EBITDAS for the third quarter of 2012 was $3.1 million, a 31% increase over EBITDAS of $2.4 million in the same quarter last year and a 7.8% increase sequentially when compared to the second quarter of 2012. EBITDAS margin in the quarter ended September 30, 2012 was 20.7% compared to EBITDAS margin of 16.2% for the quarter ended September 30, 2011. This is mainly attributed to the increase in higher margin FTTP revenues. The Company uses EBITDAS to measure its profitability as the component of stock based compensation is a non-cash expense.
For the quarter ended September 30, 2012, the Company reported a net loss from continued operations of $32 thousand or less than 1 cent per basic and diluted share, assuming 41,186,596 shares outstanding compared to net income of $1 million or $0.04 per basic and diluted share, assuming 21,119,488 shares outstanding for the quarter ended September 30, 2011.
For the quarter ended September 30, 2012, NTS recorded a net financing expense of $1.3 million compared to a net financing income of $421 thousand for the quarter ended September 30, 2011. The increase in the financial expenses was related to new advances of long-term loan from the United State Department of Agriculture and the valuation of the U.S. Dollar to the New Israeli Shekel.
For the nine months ended September 30, 2012, NTS reported a net loss of $298 thousand or a loss of $0.01 per basic and diluted share, assuming 41,186,596 shares outstanding compared to a net loss of $580 thousand or $0.03 per basic and diluted share, assuming 21,119,488 shares outstanding for the nine months ended September 30, 2011.
Mr. Guy Nissenson, Chairman, President and CEO of NTS commented, “Our strong third quarter results reflect our continued progress expanding our fiber network and most importantly, our ability to quickly add new customers as the network is established. As our high margin FTTP revenues increase, we are achieving higher consolidated revenues and improved margins resulting in significant growth in our EBITDAS. Our fiber network is currently in 14 communities in Texas and during the third quarter, we launched our sales effort for our Wichita Falls ‘metro build’ specifically targeting more than 1,000 business customers.
“We are very pleased with our progress to date and are excited about the opportunities we see in the marketplace. During the third quarter, we began to transition our focus to building our FTTP network in underserved areas of southern Louisiana where our FTTP network will add approximately 11,500 passings. We look forward to bringing our products and service offerings to these new communities.”
The Company will host a conference call today, November 15, 2012 at 10:00 a.m. Eastern Time to discuss its financial results. The conference call may be accessed in the U.S. and Canada by dialing toll-free 1-877-407-8035. International callers may access the call by dialing 1-201-689-8035.
A replay of the teleconference will be available for 30 days after the call and may be accessed domestically by dialing 1-877-660-6853 and international callers may dial 1-201-612-7415. Callers must enter account number 404002.
* represent amount less than $0.01.
Financing expense, net
Loss from discontinued operations