Alaska Communications Systems Group Inc. (ALSK, Financial) filed Quarterly Report for the period ended 2010-09-30.
Alaska Communications Systems Group Inc. has a market cap of $444 million; its shares were traded at around $10.03 with and P/S ratio of 1.3. The dividend yield of Alaska Communications Systems Group Inc. stocks is 8.6%.
Cost of Services and Sales Wireline cost of services and sales decreased $2.0 million due to declines of $1.9 million in labor resulting from the overall reduction in our general work force, $0.5 million in maintenance contracts, $0.2 million in ISP access and leased circuits, and $0.1 million in land and building related charges. These decreases are partially offset by increases of $0.5 million in LD COGS and $0.2 million in advanced network services expense.
Selling, General and Administrative Wireline SG&A expenses increased $1.3 million driven by a $1.0 million increase in labor costs for higher cash and stock compensation expense, and increases of $0.8 million in advertising associated with our re-branding initiative and $0.4 million in legal, IT and other consulting costs. Offsetting these increases was a $0.8 million decrease in bad debt expense in the current year.
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. Retail revenue decreased $2.5 million in the nine months ended September 30, 2010 over September 30, 2009, primarily due to a $1.8 million decline in local exchange revenue associated with residential line losses and a $0.8 million decline in long distance sales and a $0.5 million net decrease in revenue associated with the prior year policy change and release of company liabilities for commercial developer deposits in 2009. These losses were offset, in part, by a $0.8 million increase in revenue from our existing ISP subscriber base.
Cost of Services and Sales Wireline cost of services and sales decreased $4.6 million due to declines of $4.8 million in labor resulting from the overall reduction in our general work force, $1.1 million in maintenance contracts, $0.6 million in ISP access and leased circuits, $0.5 million in land and building related charges, and $0.2 million in paystation maintenance expense. These decreases are partially offset by increases of $1.9 million in LD COGS and $1.0 million in advanced network services expense.
Selling, General and Administrative Wireline SG&A expenses increased $0.4 million primarily driven by increases of $0.8 million in advertising expense tied to our re-branding initiative, the non-recurrence of $0.8 million in favorable property tax and legal settlements in 2009, and $0.5 million legal and IT consulting costs. Offsetting these increases were $1.1 million decrease in labor costs, and a $0.6 million decrease in bad debt expense due to improved collection efforts in the current year.
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Alaska Communications Systems Group Inc. has a market cap of $444 million; its shares were traded at around $10.03 with and P/S ratio of 1.3. The dividend yield of Alaska Communications Systems Group Inc. stocks is 8.6%.
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 $1.3 million in the three months ended September 30, 2010 over September 30, 2009, primarily due to a $0.7 million decline in local exchange revenue associated with residential line losses, a $0.5 million net decrease in revenue associated with the prior year policy change and release of company liabilities for commercial developer deposits, and a $0.4 million decline in long distance sales. These losses were offset, in part, by a $0.3 million increase in revenue from our Internet Service Provider (ISP) subscriber base.Cost of Services and Sales Wireline cost of services and sales decreased $2.0 million due to declines of $1.9 million in labor resulting from the overall reduction in our general work force, $0.5 million in maintenance contracts, $0.2 million in ISP access and leased circuits, and $0.1 million in land and building related charges. These decreases are partially offset by increases of $0.5 million in LD COGS and $0.2 million in advanced network services expense.
Selling, General and Administrative Wireline SG&A expenses increased $1.3 million driven by a $1.0 million increase in labor costs for higher cash and stock compensation expense, and increases of $0.8 million in advertising associated with our re-branding initiative and $0.4 million in legal, IT and other consulting costs. Offsetting these increases was a $0.8 million decrease in bad debt expense in the current year.
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. Retail revenue decreased $2.5 million in the nine months ended September 30, 2010 over September 30, 2009, primarily due to a $1.8 million decline in local exchange revenue associated with residential line losses and a $0.8 million decline in long distance sales and a $0.5 million net decrease in revenue associated with the prior year policy change and release of company liabilities for commercial developer deposits in 2009. These losses were offset, in part, by a $0.8 million increase in revenue from our existing ISP subscriber base.
Cost of Services and Sales Wireline cost of services and sales decreased $4.6 million due to declines of $4.8 million in labor resulting from the overall reduction in our general work force, $1.1 million in maintenance contracts, $0.6 million in ISP access and leased circuits, $0.5 million in land and building related charges, and $0.2 million in paystation maintenance expense. These decreases are partially offset by increases of $1.9 million in LD COGS and $1.0 million in advanced network services expense.
Selling, General and Administrative Wireline SG&A expenses increased $0.4 million primarily driven by increases of $0.8 million in advertising expense tied to our re-branding initiative, the non-recurrence of $0.8 million in favorable property tax and legal settlements in 2009, and $0.5 million legal and IT consulting costs. Offsetting these increases were $1.1 million decrease in labor costs, and a $0.6 million decrease in bad debt expense due to improved collection efforts in the current year.
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