NorthState Reports Fourth Quarter 2019 Results

HIGH POINT, N.C., Feb. 25, 2020 (GLOBE NEWSWIRE) -- NorthState, a fiber optic network, cloud and IT services provider, announced today its financial results for the fourth quarter and year ended December 31, 2019. 

Summary of Selected Financial Data

Quarter Ended December 31, 2019 versus Quarter Ended December 31, 2018

• Consolidated net operating revenue (NOR) of $34.6 million for the 2019 quarter, a decrease of 8.5% compared to NOR of $37.8 million for the 2018 quarter.
• Total strategic revenue¹ of $25.3 million for the 2019 quarter, a decrease of 8.3% compared to total strategic revenue of $27.6 million for the 2018 quarter.  Strategic revenue comprised 73% of NOR for the 2019 quarter and the 2018 quarter.
• Net income of $0.1 million for the 2019 quarter, a decrease of 96.4% compared to net income of $2.5 million for the 2018 quarter.  Excluding transaction costs related to the proposed merger with Segra, net income was $2.8 million for the 2019 quarter, an increase of 11.9% compared to net income of $2.5 million for the 2018 quarter.
• Earnings per share (EPS) of $0.04 for the 2019 quarter compared to EPS of $1.09 for the 2018 quarter.  Excluding transaction costs related to the proposed merger with Segra, EPS was $1.22 for the 2019 quarter compared to EPS of $1.09 for the 2018 quarter.
  

Year Ended December 31, 2019 versus Year Ended December 31, 2018

• Consolidated NOR of $135.9 million for the 2019 period, up 3.5% compared to NOR of $131.3 million for the 2018 period.
• Total strategic revenue¹ of $99.7 million for the 2019 period, up 4% compared to total strategic revenue of $95.9 million for the 2018 period, comprising 73% of NOR for each period.
• Net income of $8.5 million for the 2019 period compared to net income of $7.9 million for the 2018 period, up 7.3%.  Excluding transaction costs related to the proposed merger with Segra, net income was $11.2 million for the 2019 period, an increase of 40.8% compared to net income of $7.9 million for the 2018 period.
• EPS of $3.77 for the 2019 period compared to EPS of $3.51 for the 2018 period.  Excluding transaction costs related to the proposed merger with Segra, EPS was $4.95 for the 2019 period compared to EPS of $3.51 for the 2018 period.

Chief Executive Officer Royster Tucker III said, “We are pleased with our financial performance for 2019.  Our success was fueled by continued growth in both fiber and IT services.  In our internet-driven world, we have continued to see demand for our fiber products and services.  In addition, our IT solutions portfolio continued to help businesses securely transform themselves in this digital age.