Q4 2020 Otelco Inc Earnings Call

Please standby.

Good day and welcome to the El Telcos for Q 'twenty Earnings Conference call. Today's conference is being recorded at this time for opening remarks, and introductions I would like to turn the call over to Mr. Anderson. Please go ahead ma'am.

Thank you James and welcome to the <unk> Telco conference call to review the company's results for the fourth quarter and year ended December 31st 2020.

Conducting the call today will be Richard Clark, President and Chief Executive Officer, and Curtis Garner Chief Financial Officer.

Richard will provide an update on the company's adjustments during and performance under the changed environment caused by the COVID-19 pandemic.

The Oak Hill capital transaction, and strategic and operational highlights from fourth quarter results Curtis will highlights and financial results for the quarter and then we will take questions on quarterly results for investors.

As a reminder, the earnings press release and the company's form 10-K are now available in the investors section of the company's website, which is located at a telco dotcom.

Before we start let me offer the cautionary note that statements made during this call that are not statements of historical or current fact constitute forward looking statements.

Such forward looking statements involve known and unknown risks uncertainties and other unknown factors that could have caused the actual results for the company to be materially different from historical results or from any future results expressed or implied by such forward looking statements.

In addition to statements, which explicitly describe such risks and uncertainties readers are urged to consider statements labeled with the terms believes belief expects intends anticipates plans or similar terms to be uncertain and forward looking.

The forward looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the company's filings with the Securities and Exchange Commission.

With that stated I will now turn the call over to Richard.

Thank you drew good morning to everyone. Joining us this morning for an update on our telcos fourth quarter 2020 operational and financial results.

I hope that you and your extended families both home and work. It remained healthy through these challenging times of social distancing mask virus testing on vaccines.

I appreciate the opportunity just wanted to update you today on <unk> results and activities.

Well, let's start with an update on on telcos actions related to the COVID-19 pandemic.

We have had in our central role to provide critical data and voice services to our customers needs at all times, but especially now as working learning and playing from home service a vital role in affecting the spread of the virus since the outbreak on telco has adjusted our operations as needed to mitigate the potential risk related to COVID-19 to our employees.

And our customers, while continuing to provide communication services needed by our customers.

As more vaccines become available we expect our work is to be designated as essential allowing them to register more quickly for vaccination, leading to fewer employees needing to work from home and lower risks from spreading the virus.

Measures implemented by the company have allowed us to experience no significant adverse impact on results of operations in 2020, we like our customers look forward for a time when life returns to something closer to the pre COVID-19 conditions.

Turning to our pending acquisition by Oak Hill capital you may be a little frustrated that the transaction has not closed yet, allowing you to receive $11.75 per share in cash.

All regulatory filings have been made and where required hearing scheduled each jurisdiction has its own scheduled showing the required approvals.

Our latest estimate is that all approvals will be finalized and released in the next four to six weeks.

Closing will occur as quickly as possible. After the last order is published.

In the interim under contract with Oak Hill, we have already started the process necessary to build new growth fiber engineering more than 800 miles through February and beginning all the make ready work, which precedes fiber installations.

Now looking at the fourth quarter operational results revenues for the fourth quarter 2020 declined.

<unk> 1 million or 5% from the fourth quarter of 2019, primarily from a reduction in voice services and access fees, partially offset by increases in our Internet services.

Revenues declined $1 million sequentially from the third quarter of 2020.

We completed a number of key network improvement project in the fourth quarter that were focused on providing them enhanced data speeds to our customers. The upgrade of our cable system to DOCSIS three one allowed customers served over the cable network to have the option for gigabit speed Internet capability, the completion of our <unk> upgrade.

In certain markets increased speed options for the customer served as noted in the press release, 27% of our market. We serve can now have gigabit speed data.

And another 21 for SaaS, you can get speeds of 25 megabits or higher.

Company invested $2 million in the fourth quarter and $10 million for 2020 and its infrastructure.

All right.

EBITDA was $3 one six at the end of the fourth quarter, reflecting the use of additional cash generated from the business operations to improve our network our ratio of debt net of cash to consolidated EBITDA was $2 eight nine.

That covers the financial highlights for the quarter. James If you will provide directions, we can shift to taking questions.

Investors at this time.

Thank you if you'd like to ask a question. Please signal by pressing star one on your telephone keypad, if you're using a speaker phone. Please make sure. Your mute function is turned off to allow us allow your signal to reach our equipment again press star one to ask a question, we'll pause for a moment to allow everyone an opportunity to signal for questions.

And at this time there are no questions I will now turn the conference Oregon, Mr. Richard Clark for any additional closing remarks.

Wed like to thank you and appreciate appreciate you joining us this morning, please stay healthy.

And that will conclude today's conference. Thank you for your participation you may now disconnect.

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