SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 7, 2002
CITIZENS COMMUNICATIONS COMPANY
(Exact name of Registrant as specified in its charter)
Delaware 001-11001 06-0619596
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
3 High Ridge Park
Stamford, Connecticut 06905
(Address of Principal Executive Offices) (Zip Code)
(203) 614-5600
(Registrant's Telephone Number, Including Area Code)
No Change Since Last Report
----------------------------------------------
(Former name or former address, if changed since last report)
Item 7. Financial Statements, Exhibits
(c) Exhibits
99.1 Press Release of Citizens Communications Company released March 7,
2002 announcing earnings for the year and quarter ended December 31, 2001.
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CITIZENS COMMUNICATIONS COMPANY
-------------------------------
(Registrant)
By: /s/ Robert J. Larson
-----------------------
Robert J. Larson
Vice President and Chief Accounting Officer
Date: March 7, 2002
Citizens Communications
3 High Ridge Park
Stamford, CT 06905
203.614.5600
Web site: www.czn.net
FOR IMMEDIATE RELEASE
Contact:
Brigid M. Smith
Assistant Vice President
Corporate Communications
203.614.5042
bsmith@czn.com
Citizens Communications Reports
2001 Year-End and Fourth-Quarter Financial Results
Stamford, Conn., March 7, 2002 -- Citizens Communications (NYSE:CZN, CZB) today
reported financial results for the year and quarter ended December 31, 2001. The
following information should be read in conjunction with our financial
statements and footnotes contained in our Form 10-K to be filed with the
Securities and Exchange Commission.
Consolidated revenue for 2001 was $2.46 billion, up 36 percent from $1.80
billion in 2000. Consolidated fourth-quarter revenue was $665.8 million, an
increase of 38 percent above 2000 fourth-quarter consolidated revenue of $482.3
million.
Operating income from continuing operations was $233.0 million for 2001, an
increase of $111.2 million or 91 percent above 2000 operating income of $121.8
million. Fourth-quarter 2001 operating income was $26.4 million, 296 percent
above 2000 fourth-quarter operating income of $6.7 million. Operating income
reflects the impact of the write down of Global Crossing receivables,
assimilation and restructuring expenses and the acceleration of depreciation of
certain assets related to restructuring which are described below.
EBITDA from continuing operations was $865.4 million for 2001, an increase of 70
percent above 2000 EBITDA of $509.4 million. Fourth-quarter 2001 EBITDA was
$245.0 million, 112 percent above 2000 fourth-quarter EBITDA of $115.8 million.
EBITDA is operating income plus depreciation and amortization. EBITDA is a
measure commonly used to analyze companies on the basis of operating
performance. EBITDA is not a measure of financial performance nor is it an
alternative to cash flow as a measure of liquidity and may not be comparable to
similarly titled measures of other companies.
Consolidated net loss for 2001 was $89.7 million, and net loss per share was 38
cents, compared to last year's consolidated net loss of $28.4 million and 11
cents per share. Net loss for 2001 included: the pre-tax gain of $139.3 million
from the sale of gas operations in Louisiana; the write down of Global Crossing
receivables of $21.2 million as a result of Global Crossing filing for
bankruptcy; the recognition of a $79.0 million loss resulting from the decline
in value of the company's investment in Adelphia Communications; extraordinary
after tax expense of $43.6 million related to discontinuation of the application
of Statement of Financial Accounting Standard No. 71 (FAS 71); restructuring
expenses of $19.3 million related to the company's plans to close its Sacramento
call center by the end of this month and its operations support center in Plano,
Texas by April 2002 and restructuring expenses at Electric Lightwave, Inc.; and
acquisition assimilation expense of $21.4 million related to the completed
acquisitions, representing incremental costs incurred in advance of the
respective acquisitions which are solely related to the preparation for
businesses to be acquired.
Fourth-quarter 2001 net loss was $108.3 million or 39 cents per share, compared
to a net loss of $40.2 million or 15 cents per share in the fourth quarter of
2000.
Telecommunications - Incumbent Local Exchange Carrier Segment ("ILEC Segment")
2001 revenue from the company's ILEC Segment was $1.59 billion, up 65 percent
from $963.7 million for 2000. Acquisitions of approximately 334,500 telephone
access lines completed at various times during the second half of 2000 and the
acquisition on June 29, 2001 of Frontier Corp.'s approximately 1.1 million lines
accounted for $569.8 million of the increase. The remainder is the result of
internal growth. Excluding acquisitions, 2001 ILEC Segment revenue grew by 6
percent. Fourth-quarter 2001 revenue from this segment was $510.7 million, up 94
percent from $263.3 million for the 2000 fourth quarter. Acquisitions accounted
for $219.5 million of this increase.
On a GAAP reporting basis, ILEC Segment operating income for 2001 was $221.0
million, up 40 percent from $157.9 million for 2000 and EBITDA for 2001 was
$766.2 million, up 76 percent from $434.1 million for 2000. However, one-time
nonrecurring charges impacting both operating income and EBITDA totaled $57.7
million for 2001 and $39.9 million for 2000. These charges consisted of the
write down of Global Crossing receivables in 2001 and assimilation and
restructuring expenses in both years. Operating income also reflected
accelerated depreciation of $22.0 million in 2001 related to the change in
useful lives of certain assets resulting from our restructuring.
On a GAAP reporting basis, ILEC Segment operating income for the fourth quarter
of 2001 was $33.0 million and EBITDA for the fourth quarter of 2001 was $230.6
million, up 89 percent from $122.1 million in the fourth quarter of 2000.
However, one-time nonrecurring charges impacting operating income and EBITDA
totaled $27.1 million for the fourth quarter of 2001 and $15.8 million for the
2000 quarter. Operating income also reflected accelerated depreciation of $13.2
million in 2001 related to the change in useful lives of certain assets
resulting from our restructuring.
On a sequential quarter basis, fourth quarter 2001 revenue increased 0.7 percent
from $507.2 million to $510.7 million; access lines decreased 0.4 percent or
9,100 lines to 2,481,400, principally due to the soft business environment in
Rochester as well as normal seasonality of winter migration. Average monthly
revenue per access line increased 1.2 percent to $68.48.
Competitive Local Exchange Carrier Segment; Electric Lightwave, Inc.
(NASDAQ:ELIX) ("ELI-CLEC")
2001 revenue from ELI-CLEC totaled $226.6 million compared to $244.0 million for
2000, a decrease of 7 percent. Fourth-quarter revenue for 2001 was $50.3 million
compared to $63.0 million in the prior year's fourth quarter, a decrease of 20
percent.
ELI-CLEC operating loss for 2001 was $73.2 million, a $13.3 million increase
from the $59.9 million operating loss for 2000. ELI-CLEC EBITDA for 2001 was
$5.8 million, a $4.0 million increase over $1.8 million EBITDA for 2000.
ELI-CLEC operating income and EBITDA for the fourth quarter and the year ended
December 31, 2001 was affected by workforce reductions, restructuring related to
exiting certain long-haul markets with an associated expense of $4.2 million and
lower-than-anticipated revenue primarily due to a downturn in economic
conditions that affected carriers, Internet service providers and related
e-businesses; a decline in data services due to the expiration of a material
contract; and a decrease in reciprocal compensation.
ELI-CLEC fourth-quarter operating loss for 2001 was $19.8 million, a $7.0
million increase from the $12.8 million operating loss for 2000. ELI-CLEC
fourth-quarter 2001 EBITDA was $.6 million, a $4.5 million decrease from $5.1
million EBITDA for the 2000 fourth quarter.
ELI-CLEC's Class A Common Stock is currently traded on the Nasdaq National
Market System, but the stock does not meet minimum bid price and market value of
public float requirements for continued listing. If the stock is unable to
regain compliance by May 15, 2002, the stock could be subject to delisting at
that time.
Public Services Segment
The gas and electric segments accounted for $639.5 million of 2001 consolidated
revenue, compared to $597.8 million in 2000.
The year-end results include $83.3 million in operating income from the
company's Public Services operations, compared to $23.5 million for the same
period in 2000.
The year-end results include $90.3 million in EBITDA from the company's Public
Services operations, compared to $71.4 million for the same period in 2000.
In the fourth-quarter of 2001, the gas and electric segments accounted for
$105.0 million of consolidated revenue, compared to $157.2 million in 2000. The
decrease is primarily due to the sale of Louisiana Gas, the largest of Citizens'
four gas divisions, on July 2, 2001, for $363.4 million, resulting in a pre-tax
gain of $139.3 million.
Fourth-quarter 2001 operating income includes $12.4 million in operating income
from the company's Public Services operations, compared to a 2000 fourth-quarter
operating loss for Public Services of $21.7 million.
Fourth-quarter 2001 EBITDA includes $12.9 million in EBITDA from the company's
Public Services operations, compared to a 2000 fourth-quarter EBITDA loss for
Public Services of $12.8 million.
Discussion
Citizens is monitoring the bankruptcy proceedings of Global Crossing Ltd. and
its affiliates to determine the effect on Citizens' operations and financial
position. Citizens purchased its Frontier local exchange telephone business from
Global Crossing in June 2001 for $3.37 billion, subject to final purchase price
adjustment. Citizens is integrating the Frontier telephone business with
Citizens' other telecommunications operations and has ongoing commercial
relationships with Global Crossing affiliates. Citizens will reserve
approximately $30 million to reflect its best estimate of the net realizable
value of receivables incurred from these commercial relationships during 2001
and up to the date of the bankruptcy filing in 2002. Citizens recorded a write
down of such receivables in the amount of $21.2 million for the fourth quarter
of 2001, with the remainder recorded in the first quarter of 2002 for
receivables generated after December 31, 2001 and prior to the Global Crossing
bankruptcy filing on January 28, 2002.
On February 13, 2002, Citizens Communications announced that it would recognize
a $79 million write down in its year ended December 31, 2001, financial
statements on its holdings of 3,059,000 shares of Class A Common Stock of
Adelphia Communications Corp. This non-cash charge does not impact the carrying
value of these securities, which were stated at current market values on prior
balance sheets. This charge reflects a decline in current trading values that
have persisted for more than a six-month period. Citizens has previously
reported this decline as an item of comprehensive loss in the equity section of
its balance sheets. Citizens continues to hold the Adelphia shares.
Beginning in the third quarter of 2001, Citizens' ILEC Segment operations no
longer met the criteria for application of FAS No. 71. We recorded a non-cash
extraordinary charge of $43.6 million net of tax in our income statement to
write off regulatory assets and liabilities recorded on our balance sheet in the
past.
As previously announced, we completed the sale of our water and wastewater
treatment operations on January 15, 2002, for $855.7 million in cash and $123.8
million in assumed debt and other liabilities. The pre-tax gain on this
disposition, which will be reflected in the results of operations for the first
quarter of 2002, is estimated to be $303.6 million. On November 11, 2001,
Citizens Communications completed the sale of its Colorado gas division to
Kinder Morgan for $8.9 million in cash. Citizens continues to pursue the
disposition of its remaining utility assets.
Restructuring expense for the ILEC Segment for the year and quarter ended
December 31, 2001 is $15.1 million and $2.1 million, respectively. This expense
relates to Citizens' previously announced plans to close its operations support
center in Plano, Texas and its Sacramento call center. The expense primarily
consists of severance, benefits, retention, early lease termination costs and
other planning and communication costs. We expect to incur additional costs of
approximately $1.4 million through the second quarter of 2002.
Guidance
Guidance for 2002 for the company's ILEC Segment and ELI-CLEC Segment is
reaffirmed as follows: Guidance for the ILEC Segment is revenue of $2.1 billion;
adjusted EBITDA (operating income plus depreciation and amortization), before
restructuring expenses of $1.09 billion; capital expenditures of $437.5 million;
interest expense of $420.0 million; and free cash flow of $232.5 million,
excluding purchase of leased assets.
About Citizens Communications
Citizens Communications serves 2.5 million access lines in 24 states. Citizens
owns 85 percent of Electric Lightwave, Inc. (NASDAQ:ELIX), a facilities-based,
integrated communications provider that offers a broad range of services to
telecommunications-intensive businesses throughout the United States.
This document contains forward-looking statements that are subject to risks and
uncertainties that could cause actual results to differ materially from those
expressed or implied in the statements. These and all forward-looking statements
(including oral representations) are only predictions or statements of current
plans that are constantly under review by the company. All forward-looking
statements may differ from actual results because of, but not limited to,
changes in the local and overall economy, changes in market conditions for debt
and equity securities, the nature and pace of technological changes, the number
and effectiveness of competitors in the company's markets, success in overall
strategy, changes in legal or regulatory policy, changes in legislation, the
company's ability to identify future markets and successfully expand existing
ones, the mix of products and services offered in the company's target markets,
the effects of acquisitions and dispositions and the ability to effectively
integrate businesses acquired. These important factors should be considered in
evaluating any statement contained herein and/or made by the company or on its
behalf. The foregoing information should be read in conjunction with the
company's filings with the U.S. Securities and Exchange Commission including,
but not limited to, reports on Forms 10-K and 10-Q. The company does not intend
to update or revise these forward-looking statements to reflect the occurrence
of future events or circumstances.
TABLES TO FOLLOW
Citizens Communications Company
Consolidated Financial Data
(unaudited)
For the quarter ended For the year ended
December 31, December 31,
--------------------- ------------------------
% %
(Amounts in thousands - except per-share amounts) 2001 2000 Change 2001 2000 Change
----------------------------- --------------------------------
Income Statement Data
Continuing operations (1)
Revenue $ 665,849 $ 482,339 38% $ 2,456,993 $ 1,802,358 36%
Cost of services 122,271 142,834 -14% 599,378 481,673 24%
Depreciation and amortization 218,602 109,124 100% 632,336 387,607 63%
Other operating expenses 267,358 208,570 28% 930,330 771,997 21%
Restructuring expenses (2) 6,325 (649) - 19,327 (649) -
Write-down of Global Crossing receivables (2) 21,200 - 100% 21,200 - 100%
Acquisition assimilation expenses 3,715 15,799 -76% 21,380 39,929 -46%
Operating income 26,378 6,661 296% 233,042 121,801 91%
Investment and other income (loss), net (3) (82,036) (11,563) - (65,541) 15,572 -
Gain on sale of assets - - - 139,304 - 100%
Interest expense 121,293 58,467 107% 379,326 187,366 102%
Income tax expense (benefit) (63,988) (21,228) -201% (14,805) (16,132) 8%
Convertible preferred dividends 1,552 1,552 - 6,210 6,210 -
Income (loss) from continuing operations (114,515) (43,693) -162% (63,926) (40,071) -60%
Income from discontinued operations, net of tax 6,200 3,495 77% 17,875 11,677 53%
Extraordinary expense - discontinuation of Statement
of Financial Accounting Standards No. 71, net of tax - - - 43,631 - 100%
Net income (loss) (108,315) (40,198) -169% (89,682) (28,394) -216%
Carrying costs of equity forward contracts - - - (13,650) - 100%
Available to common shareholders (108,315) (40,198) -169% (103,332) (28,394) -264%
EBITDA and Capital Expenditure Data (4)
EBITDA from continuing operations $ 244,980 $ 115,785 112% $ 865,378 $ 509,408 70%
Capital expenditures from continuing operations 164,009 105,834 55% 463,870 455,700 2%
Capital expenditures from assets held for sale 16,225 21,464 -24% 66,844 80,939 -17%
Total cash capital expenditures 180,234 127,298 42% 530,714 536,639 -1%
Cash Flow Data
Cash flow - operating activities $ 116,936 $ 36,541 220% $ 520,379 $ 299,503 74%
Cash flow - investing activities (191,829) (268,546) 29% (3,650,250) (1,273,711) -187%
Cash flow - financing activities 49,736 245,622 -80% 3,141,389 1,017,434 209%
Cash flow - discontinued operations 43,902 (28,541) 254% 14,926 (49,328) 130%
Balance Sheet Data
Cash and investments $ 357,077 $ 284,445 26%
Total assets 10,553,600 6,955,006 52%
Net plant (continuing operations) 4,512,038 3,520,712 28%
Assets held for sale 1,107,937 1,282,152 -14%
Assets of discontinued operations 746,791 717,602 4%
Long-term debt (continuing operations) 5,994,906 3,062,289 96%
Less: Equity units 460,000 - 100%
Less: Cash and short-term investments 215,869 70,086 208%
------------------------
Net debt 5,319,037 2,992,203 78%
========================
Equity 1,946,142 1,720,001 13%
Shares of common stock outstanding 281,289 262,661 7%
Weighted average shares outstanding 279,675 261,295 7% 273,721 260,767 5%
Per-Share Data (5)
Available to common shareholders from continuing
operations per common share $ (0.41) $ (0.17) -141% $ (0.28) $ (0.15) -87%
Available to common shareholders per common share (0.39) (0.15) -160% (0.38) (0.11) -245%
Book value per share 7.11 6.60 8%
Other Financial Data
Long-term debt to long-term debt and equity 75% 64%
Common equity market capitalization (in billions) $ 3.00 $ 3.45
Equity market capitalization (in billions) $ 3.18 $ 3.66
Market capitalization (in billions) (6) $ 9.21 $ 6.48
(1) Includes our Incumbent Local Exchange Carrier (ILEC), Electric Lightwave,
Inc. (ELI), (our Competitive Local Exchange Carrier) and our natural gas
and electric businesses. The natural gas and electric businesses are
presented in continuing operations in the selected income statement data
and as assets held for sale in the balance sheet data. We report our water
and wastewater businesses as discontinued operations.
Continuing operations reflect the elimination of intercompany transactions
(see segment footnote in the SEC Form 10-K).
(2) Represents the write-down of the net realizable value of Global Crossing
receivables as a result of Global's filing for bankruptcy. See footnote 21
in the SEC Form 10-K. See footnote 14 in the SEC 10-K Form for an
explanation of restructuring expenses.
(3) Includes $12,222 of minority interest for the year ended 12/31/2000.
(4) EBITDA is operating income plus depreciation and amortization. EBITDA is a
measure commonly used to analyze companies on the basis of operating
performance. It is not a measure of financial performance under generally
accepted accounting principles and should not be considered as an
alternative to net income as a measure of performance nor an alternative to
cash flow as a measure of liquidity and may not be comparable to similarly
titled measures of other companies (see segment footnote in the SEC Form
10-K).
(5) Calculated based on weighted average shares outstanding.
(6) Equity market capitalization plus long-term debt.
Citizens Communications Company
Financial and Operating Data by Service
For the quarter ended For the year ended
December 31, December 31,
-------------------------- --------------------------
% %
(Dollars in thousands, except operating data) 2001 2000 Change 2001 2000 Change
----------------------------------- ---------------------------------
ILEC
Select Income Statement Data
Revenue
Network access services $ 193,092 $ 121,384 59% $ 654,641 $ 451,402 45%
Local network services 191,860 95,321 101% 582,662 326,878 78%
Long distance and data services 73,130 31,258 134% 208,274 106,662 95%
Directory services 25,433 10,125 151% 72,375 37,424 93%
Other 27,203 5,180 425% 76,101 41,377 84%
Total revenue 510,718 263,268 94% 1,594,053 963,743 65%
Network access expense 48,414 15,688 209% 129,408 67,060 93%
Depreciation and amortization 197,570 80,623 145% 545,273 276,250 97%
Other operating expenses 204,674 110,732 85% 640,688 423,616 51%
Restructuring expenses (1) 2,146 (1,008) 313% 15,148 (1,008) 1603%
Write-down of Global Crossing receivables (2) 21,200 - 100% 21,200 - 100%
Acquisition assimilation expenses (3) 3,715 15,799 -76% 21,380 39,929 -46%
Total expense 477,719 221,834 115% 1,373,097 805,847 70%
Operating income 32,999 41,434 -20% 220,956 157,896 40%
EBITDA and Capital Expenditure Data
EBITDA (4) $ 230,569 $ 122,057 89% $ 766,229 $ 434,146 76%
EBITDA margin (5) 45% 46% - 48% 45% -
Cash capital expenditures 152,509 85,106 79% 408,464 345,395 18%
Balance Sheet Data
Total assets $ 7,072,288 $3,558,562 99%
Net plant 3,633,967 2,593,746 40%
Operating Data
Access lines:
Embedded properties excluding acquisitions 1,386,400 1,371,200 1%
Acquired properties 1,095,000 - 100%
Total access lines 2,481,400 1,371,200 81%
Switched access minutes of use (in millions) (6)
Excluding acquisitions 1,877 1,598 17% 7,501 5,755 30%
Acquisitions 1,206 - 100% 2,436 - 100%
Total MOU 3,083 1,598 93% 9,937 5,755 73%
Employees 7,920 4,212 88%
(1) Represents expenses associated with our plan to close our operations
support center in Plano, Texas by April 2002. See footnote 14 in the SEC
10-K Form for an explanation of restructuring expenses.
(2) Represents the write-down of the net realizable value of Global Crossing
receivables as a result of Global's filing for bankruptcy. See footnote 21
in the SEC 10-K Form for an explanation.
(3) Represents expenses associated with the completed and pending acquisitions.
(4) EBITDA is operating income plus depreciation and amortization. EBITDA is a
measure commonly used to analyze companies on the basis of operating
performance. It is not a measure of financial performance under generally
accepted accounting principles and should not be considered as an
alternative to net income as a measure of performance nor an alternative to
cash flow as a measure of liquidity and may not be comparable to similarly
titled measures of other companies (see segment footnote in the SEC Form
10-K).
(5) EBITDA divided by total revenue.
(6) Acquisitions represent minutes of use from entities acquired after December
31, 2000.
Citizens Communications Company
Financial and Operating Data by Service
For the quarter ended For the year ended
December 31, December 31,
------------------------- ---------------------------
% %
(Dollars in thousands, except operating data) 2001 2000 Change 2001 2000 Change
--------------------------------- -----------------------------------
Electric Lightwave, Inc.
Select Income Statement Data
Revenue
Network services $ 23,372 $ 22,633 3% $ 101,338 $ 77,437 31%
Local telephone services 15,177 23,231 -35% 73,291 98,643 -26%
Long distance services 2,980 3,728 -20% 12,294 16,318 -25%
Data services 8,790 13,377 -34% 39,717 51,579 -23%
Total revenue 50,319 62,969 -20% 226,640 243,977 -7%
Network access expense 16,596 17,294 -4% 67,610 74,105 -9%
Restructuring expense 4,179 359 1064% 4,179 359 1064%
Gross margin 29,544 45,316 -35% 154,851 169,513 -9%
Depreciation and amortization 20,375 17,882 14% 79,022 61,663 28%
Other operating expenses 28,949 40,203 -28% 149,022 167,726 -11%
Total expense 70,099 75,738 -7% 299,833 303,853 -1%
Operating loss (19,780) (12,769) -55% (73,193) (59,876) -22%
EBITDA and Capital Expenditure Data
EBITDA (1) $ 595 $ 5,113 -88% $ 5,829 $ 1,787 226%
Cash capital expenditures (2) 10,683 15,817 -32% 54,589 108,909 -50%
Balance Sheet Data
Total assets $ 902,348 $ 949,774 -5%
Gross plant 1,037,349 978,327 6%
Operating Data
Access Line Equivalents 148,787 200,231 -26%
Route miles 6,754 5,924 14%
Fiber miles 354,083 297,284 19%
Customers 2,243 2,246 0%
Buildings connected 859 851 1%
Employees 823 1,161 -29%
Revenue per employee $ 61,141 $ 54,237 13% $ 275,383 $ 210,144 31%
(1) EBITDA is operating income plus depreciation and amortization. EBITDA is a
measure commonly used to analyze companies on the basis of operating
performance. It is not a measure of financial performance under generally
accepted accounting principles and should not be considered as an
alternative to net income as a measure of performance nor an alternative to
cash flow as a measure of liquidity and may not be comparable to similarly
titled measures of other companies (see segment footnote in the SEC Form
10-K).
(2) Excludes capitalized leases.
Citizens Communications Company
Financial and Operating Data by Service
For the quarter ended For the year ended
December 31, December 31,
------------------------ -------------------------
% %
(Dollars in thousands, except operating data) 2001 2000 Change 2001 2000 Change
------------------------------------------------------------------
Gas Sector (1)
Select Income Statement Data
Revenue
Residential distribution $ 19,762 $ 44,391 -55% $ 195,620 $ 161,925 21%
Commercial distribution 24,038 27,810 -14% 137,310 121,890 13%
Industrial distribution 5,674 21,106 -73% 65,914 63,060 5%
Total distribution 49,474 93,307 -47% 398,844 346,875 15%
Other 1,673 10,692 -84% 12,690 27,876 -54%
Total revenue 51,147 103,999 -51% 411,534 374,751 10%
Gas purchased 29,996 81,300 -63% 282,061 229,538 23%
Gross margin 21,151 22,699 -7% 129,473 145,213 -11%
Depreciation and amortization (2) 152 153 -1% 609 19,228 -97%
Other operating expenses 15,296 38,438 -60% 80,948 117,717 -31%
Total expense 45,444 119,891 -62% 363,618 366,483 -1%
Operating income 5,703 (15,892) - 47,916 8,268 480%
EBITDA and Capital Expenditure Data
EBITDA (3) $ 5,855 $ (15,739) - $ 48,525 $ 27,496 76%
Cash capital expenditures 7,949 15,413 -48% 34,138 51,457 -34%
Balance Sheet Data
Assets held for sale $ 441,654 $ 667,651 -34%
Net plant 354,991 531,885 -33%
Operating Data
Customers 188,800 473,527 -60%
Employees 492 1,021 -52%
Customers per employee 384 464 -17%
Gross margin (net revenue) per employee $ 42,990 $ 22,232 93% $ 263,157 $ 142,226 85%
Billion Cubic Feet of gas throughput (BCF) 5.4 22.8 -76% 46.1 73.7 -37%
(1) Our Louisiana and Colorado gas operations were disposed of by sale on July
2, 2001 and November 30, 2001, respectively. The sale of these operations
affects comparability of data presented.
(2) Our gas operations are reported as "held for sale". Accordingly, we ceased
to record depreciation expense effective October 1, 2000.
(3) EBITDA is operating income plus depreciation and amortization. EBITDA is a
measure commonly used to analyze companies on the basis of operating
performance. It is not a measure of financial performance under generally
accepted accounting principles and should not be considered as an
alternative to net income as a measure of performance nor an alternative to
cash flow as a measure of liquidity and may not be comparable to similarly
titled measures of other companies (see segment footnote in the SEC Form
10-K).
Citizens Communications Company
Financial and Operating Data by Service
For the quarter ended For the year ended
December 31, December 31,
------------------------- -------------------------
% %
(Dollars in thousands, except operating data) 2001 2000 Change 2001 2000 Change
---------------------------------- ---------------------------------
Electric Sector
Select Income Statement Data
Revenue
Residential distribution $ 22,533 $ 21,037 7% $ 96,888 $ 106,842 -9%
Commercial distribution 15,563 17,316 -10% 65,688 62,521 5%
Industrial distribution 7,112 14,512 -51% 45,054 47,269 -5%
Total distribution 45,208 52,865 -14% 207,630 216,632 -4%
Other 8,693 327 2558% 20,385 6,440 217%
Total revenue 53,901 53,192 1% 228,015 223,072 2%
Electric energy and fuel oil purchased 27,419 29,450 -7% 123,223 113,965 8%
Gross margin 26,482 23,742 12% 104,792 109,107 -4%
Depreciation and amortization (1) 299 8,822 -97% 6,434 28,629 -78%
Other operating expenses 19,455 20,767 -6% 63,023 65,252 -3%
Total expense 47,173 59,039 -20% 192,680 207,846 -7%
Operating income 6,728 (5,847) - 35,335 15,226 132%
EBITDA and Capital Expenditure Data
EBITDA (2) $ 7,027 $ 2,975 136% $ 41,769 $ 43,855 -5%
Cash capital expenditures 8,276 6,051 37% 32,706 29,482 11%
Balance Sheet Data
Assets held for sale $ 666,283 $ 544,656 22%
Net plant 450,662 421,443 7%
Operating Data
Customers 128,432 123,562 4%
Employees 337 332 2%
Customers per employee 381 372 2%
Gross margin (net revenue) per employee $ 78,582 $ 71,512 10% $ 310,955 $ 328,636 -5%
Megawatt hours sold 468,487 466,396 0% 1,988,732 1,943,370 2%
Megawatt hours generated 99,920 95,062 5% 415,690 391,216 6%
Megawatt hours purchased 391,096 391,342 0% 1,725,884 1,719,308 0%
(1) Our electric operations are reported as "held for sale". Accordingly, we
ceased to record depreciation expense effective January 1, 2001.
(2) EBITDA is operating income plus depreciation and amortization. EBITDA is a
measure commonly used to analyze companies on the basis of operating
performance. It is not a measure of financial performance under generally
accepted accounting principles and should not be considered as an
alternative to net income as a measure of performance nor an alternative to
cash flow as a measure of liquidity and may not be comparable to similarly
titled measures of other companies (see segment footnote in the SEC form
10-K).