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Alaska Communications Systems Group Inc. Reports Operating Results (10-Q)

August 05, 2010 | About:
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10qk

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Alaska Communications Systems Group Inc. (ALSK) filed Quarterly Report for the period ended 2010-06-30.

Alaska Communications Systems Group Inc. has a market cap of $401.5 million; its shares were traded at around $9.01 with and P/S ratio of 1.2. The dividend yield of Alaska Communications Systems Group Inc. stocks is 9.5%.

Highlight of Business Operations:

Retail: Declines in retail switched access lines in service during 2010 were concentrated in the residential market which we believe was impacted by wireless substitution and the turndown of payphone lines as part of a business rationalization initiative. Retail revenue decreased in the three months ended June 30, 2010 over June 30, 2009, primarily due to a $0.5 million decline in local exchange revenue associated with residential line losses and a $0.1 million decline in long distance sales. These losses were offset, in part, by a $0.3 million increase in revenue from our existing Internet Service Provider (ISP) subscriber base and a $0.1 million increase in customer premise equipment (CPE) sales to businesses.

Wireless revenue declined $0.3 million in the three months ended June 30, 2010, as compared to the prior year period ended June 30, 2009, driven by a decrease of $2.2 million in recurring service plan revenue attributable to lower subscribers, and a $0.3 million decline in handset and accessory sales. These decreases were offset, in part, by a $1.6 million increase in roaming revenue, which benefited from the expansion of our 3G data network as we execute a build plan that will increase the number of EVDO Rev A capable cell sites by approximately 50% in 2010; and a $0.6 million increase in Competitive Eligible Telecommunications Carrier (CETC) revenue.

Cost of Services and Sales Wireline cost of services and sales decreased $2.3 million due to declines of $1.6 million in labor, $0.6 million in ISP access and leased circuits, $0.6 million in maintenance contracts, $0.2 million in maintenance paystation expense, and $0.1 million in land and building related charges. These decreases are partially offset by increases of $0.6 million in LD COGS and $0.5 million in advanced network services expense.

Enterprise: Enterprise revenue increased $0.7 million with higher data revenue of $3.4 million offset, in part, by a $1.5 million decline from an expired capacity exchange agreement and a $1.2 million reduction in carrier voice revenue.

Wireless revenue declined $3.0 million in the six months ended June 30, 2010, as compared to the prior year period ended June 30, 2009, driven by a decrease of $3.5 million in recurring service plan revenue attributable to lower subscribers, a $0.6 million decline in CETC revenue, and a $0.7 million decline in handset and accessory sales. These decreases were offset by a $2.0 million increase in roaming revenue, which benefited from the expansion of our 3G data network as we execute a build out plan to increase the number of EVDO Rev A capable cell sites by approximately 50% in 2010.

Cost of Services and Sales Wireline cost of services and sales decreased $2.6 million due to declines of $2.9 million in labor, $0.4 million in ISP access and leased circuits, $0.6 million in maintenance contracts, $0.2 million in maintenance paystation expense, and $0.4 million in land and building related charges. These decreases are partially offset by increases of $1.4 million in LD COGS and $0.8 million in advanced network services expense.

Read the The complete Report

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