Slide 1: LICT Corporation Annual Shareholder Meeting June 25, 2024
LICT Corporation Provider of Communication Services to Rural America Annual Shareholder Meeting June 25, 2024
Slide 2: Stephen J. Moore and Christian Mueller
STEPHEN J. MOORE Vice President-Finance CHRISTIAN MUELLER Corporate Controller
Slide 3: LICT
LICT
Slide 4: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Statement The information contained herein is current only as of the date hereof; however, unless otherwise indicated, financial information contained herein is as of December 31, 2023. The business, prospects, financial condition or performance of LICT Corporation
Slide 5: LICT Today
LICT Today Cal-Ore Central Scott Centracom Cuba City JBN Haviland Western New Mexico 5
Slide 6: Background
Background • Assumed control of Lynch Corporation in 1985 • LICT spun- off from Lynch in 1999 • Made first Rural Local Exchange Carrier acquisition in 1989 – 37 acquisitions • Manti in 2023 – 9 spin-offs • Michigan in 2023 – Fiber, Fixed Wireless Growth and Spectrum initiative – Continued pro-active
Slide 7: Major Initiatives of 2023
Major Initiatives of 2023 • Accepted E-ACAM September 2023 for 2024 – 2038 • Wireless 5G – Sound Broadband • 8 towers in 8 markets in 3 states • 500+ customers • Continued work on Grants • Completed Spin-off of Michigan • Acquisition of Manti • Charitable 7
Slide 8: Charitable Giving
CHARITABLE GIVING 2023- $1,161,000 $9.6 million since inception in 2016
Slide 9: SAAS: Service, Affordability, Availability, Speed
S - Service A - Affordabilty A - Availabilty S - Speed
Slide 10: Key Strengths
Key Strengths • Diverse Revenues Streams – Fiber / Fixed Wireless / Cable – Business / Residential – Regulated / Non-Regulated • E-ACAM $37.2 million annually – 2024 – 2038 • Staff • Rural nature of organization 10
Slide 11: Challenges and Opportunities
Challenges and Opportunities • Government Funding – Affordable Connectivity Program-Ended May of 2024 • LICT continues support through January 2025 for LICT those customers that were already participating. • Congress & FCC look for funding to replace this program. • Pricing - In competitive markets
Slide 12: Surge in Public Funding
Surge in Public Funding • Enhanced Alternative Connect America Model (E-ACAM) • Universal Service Funds • Federal/State Loans and Grants • Infrastructure Bill - Bead 12
Slide 13: Growth Strategy
Growth Strategy • Expand Fiber & Fixed Wireless Network • E-ACAM • Out of Territory 13
Slide 14: CapEx
CapEx Network Expansion – over next 5 years $500+ million Gross $350+ million Net of grants 14
Slide 15: Financials
FINANCIALS
Slide 16: Financials
Financials (000’s) 2023 2022 Revenue $116,509 $115,478 EBITDA $45,554 $48,744 Capital Expenditures $37,408 $41,336 EPS-Continuing Operations $598 $738 Shares Outstanding 16,971 17,341 16
Slide 17: Revenue Mix
Revenue Mix (000s) 2023 2019 $70,442 $50,260 $46,067 $52,423 60% 49% 40% 51% Total Revenue: Total Revenue: $116,509 $102,683 No-Regulated Revenue Regulated Revenue Both periods exclude Michigan 17
Slide 18: Liquidity and Leverage
Liquidity and Leverage ($ 000’s) 2023 Cash and Deposits $26,545 Debt 53,452 Net Cash (Debt) ($26,907) Exclude Michigan 18
Slide 19: Shareholder Compensation
Shareholder Compensation # of Shares Year End Year Repurchased Shares O/S 2023 370 16,971 2022 530 17,341 2021 622 17,871 2020 655 18,533 2019 743 19,188 19
Slide 20: Investments
Investments • MachTen • Aureon (Iowa Network Services) • Brick Skirt Holding (DFT Telephone) • Spectrum licenses Auction Band Licenses 108 EBS – 2.5 GHz 46 110 3.45-3.55 GHz 24 107 3.7-3.98 GHz 5 105 3.6- 3.7 GHz 162 1002 600 MHz 2 102 24 GHz 10 101 28 GHz 47 Other 5 20
Slide 21: Summary
Summary History of Shareholder Value • E -ACAM Opportunity – PROJECT SUNSHINE!!! • Incumbent Markets o Maximize Broadband Speeds • Growth o Fiber Expansion to Grow and Diversify Revenue • Use Fixed Wireless Broadband Extend Speed Capabilities – Quickly – Economically efficient • Significant flow of
Slide 22: Thank You
THANK YOU
Slide 23: LICT Corporation Annual Shareholder Meeting June 25, 2024
LICT Corporation Provider of Communication Services to Rural America Annual Shareholder Meeting June 25, 2024