Business
LICT Corporation Reports Second Quarter 2023 Results and August 31 Spin-off of Michigan Property – 150 Shares of MachTen Per One Share of LICT Corporation
LICT Corporation Reports Second Quarter 2023 Results and August 31 Spin-off of Michigan Property – 150 Shares of MachTen Per One Share of LICT Corporation.
About this update from Lict Corp.
[{"type":"text","content":"\nLICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT) reports unaudited, financial results for the quarter ended June 30, 2023.\n\n\nDriven by broadband sales, non-regulated revenues for the second quarter of 2023 increased 3.7%, to $18.4 million from the prior year’s second quarter $17.7 million. Non-regulated EBITDA was $7.6 million, versus the $7.5 million earned in the same period last year.\n\n\nRegulated revenues were $14.7 million in the second quarter of 2023 versus the prior year’s second quarter of $15.0 million. Regulated EBITDA was $6.4 million compared to $7.2 million last year.\n\n\nTotal revenues in the second quarter of 2023 were $33.1 million compared to $32.7 million for the corresponding quarter in 2022. EBITDA was $14.0 million in the second quarter of 2023 as compared to $14.6 million in 2022. The reduction is driven by labor and material costs.\n\n\nOther Income (Expense) – Other income/expenses were $500,000 in the second quarter of 2023, versus $400,000 in the prior year’s second quarter. Due in part by $483,000 higher interest expense.\n\n\nEARNINGS PER SHARE – Earnings per share from operations for the second quarter of 2023 were $294 per share as compared to $336 per share in 2022.\n\n\nMICHIGAN SPINOFF – As previously announced the Spin-Off of our Michigan entity, MachTen (OTC Pink: MACT) occurred on August 31, 2023. At the time of the spin-off each shareholder of LICT received 150 shares of MachTen per one share of LICT. The Company will maintain a 19% stake in MachTen or approximately 605,980 shares. In addition, the Michigan operations declared a $15 million dividend due to LICT. On August 29, 2023, Mach Ten posted a Press Release detailing information regarding the spin-off. The proforma LICT net debt just after the spin-off is expected to be approximately $8.1 million.\n\n\nALTERNATIVE – CONNECT AMERICA COST MODEL (“A-CAM”) PROGRAM – All LICT telephone companies participate in the Federal Communications Commission’s (“FCC’s\") A-CAM and A-CAM II programs. The A-CAM program is designed to increase broadband speed and expand the deployment of broadband capabilities throughout the nation’s rural areas with mandatory build-out requirements for receipt of support. LICT received $8.0...