NorthState Reports Third Quarter 2019 Results

HIGH POINT, N.C., Dec. 17, 2019 (GLOBE NEWSWIRE) -- NorthState, a fiber optic network, cloud and IT services provider, announced today its financial results for the third quarter ended September 30, 2019. 

Summary of Selected Financial Data

Quarter Ended September 30, 2019 versus Quarter Ended September 30, 2018

• Consolidated net operating revenue (NOR) for the 2019 quarter totaled $34.4 million, up 2% compared to NOR of $33.8 million for the 2018 quarter.
• Total strategic revenue^[1] for the 2019 quarter of $26.4 million, up 5% compared to total strategic revenue of $25.2 million for the 2018 quarter. Strategic revenue comprised 77% of NOR for the 2019 quarter, compared to 75% of NOR for the 2018 quarter.
• Net income for the 2019 quarter of $1.9 million, a decrease of 10%, compared to net income of $2.1 million for the 2018 quarter.²
• Earnings per share (EPS) for the 2019 quarter of $0.86 compared to EPS of $0.95 for the 2018 quarter.²
  

Nine Months Ended September 30, 2019 versus Nine Months Ended September 30, 2018

• Consolidated NOR of $101.3 million for the 2019 period, up 8% compared to NOR of $93.5 million for the 2018 period.
• Total strategic revenue¹ of $74.4 million for the 2019 period, up 9% compared to total strategic revenue of $68.3 million for the 2018 period, comprising 73% of NOR for each period.
• Net income of $8.4 million for the 2019 period compared to $5.5 million for the 2018 period, up 54%.²
• EPS of $3.73 for the 2019 period compared to EPS of $2.42 for the 2018 period.

Chief Executive Officer Royster Tucker III said, “Throughout 2019, we have been executing well on our plans to expand NorthState’s IT services & hardware and Internet & communications businesses. We have focused on putting technology to work to enhance businesses and lifestyles in the Piedmont Triad Region and our customers have been responding well to our offerings.

“Our third-quarter results demonstrate continued effectiveness in implementing our strategy. IT services and hardware revenues grew by 4.2% year over year, driven primarily by a 10.4% increase in telecom & IT equipment sales. Internet & communications revenues rose 0.4% quarter over quarter, reflecting an 8.2% increase in Internet & data revenue that was offset by declines in legacy voice services.² Video revenue also declined slightly quarter over quarter. For the first nine months of 2019, both net income and earnings per share grew significantly over last year’s period.”