Alaska Communications Systems Group Inc. (ALSK, Financial) filed Quarterly Report for the period ended 2009-09-30.
ALASKA COMM SYS is engaged principally in providing local telephone wireless and inter-exchange network and data services to its customers in the State of Alaska through its telecommunications subsidiaries. They are a diversified facilities-based telecommunications provider in Alaska offering local telephone cellular long distance data and Internet services to business and residential customers throughout the state. Alaska Communications Systems Group Inc. has a market cap of $341.6 million; its shares were traded at around $7.71 with a P/E ratio of 51.5 and P/S ratio of 0.9. The dividend yield of Alaska Communications Systems Group Inc. stocks is 11.2%.
Enterprise: Enterprise revenue increased in the third quarter of 2009 primarily due to an increase in carrier customer data volume. We experienced an increase of $2.5 million in data sales to other carriers, inclusive of a decline in revenue of $0.4 million resulting from the expiration of a non-cash capacity exchange agreement with another carrier midway through the quarter. Additionally, we experienced a $0.6 million increase in data sales to government and commercial customers. These increases were offset, in part, by a $0.6 million decline in wholesale carrier voice revenue.
Cost of Services and Sales Wireline cost of services and sales increased $2.5 million this quarter over the prior year quarter ended September 30, due to a $0.7 million increase in service contracts, $0.5 million increase in labor and $0.4 million increase in land and building charges which were all primarily related to our new cable operations. We also experienced an increase of $0.3 million in CPE sales expense, $0.3 million increase in ISP access and leased circuit expenses and a $0.2 million increase in LD interstate COGS.
Retail: Declines in retail switched access lines in service in 2009 were concentrated in the residential market which we believe is impacted by wireless substitution. Retail revenue decreased in the nine months ended September 30, 2009 over September 30, 2008 primarily due to $1.8 million declines in local exchange revenue associated with residential line losses, a $1.0 million decline in long distance sales and $0.8 million lower CPE sales to businesses. These losses were offset, in part, by a $0.9 million increase in revenue from our existing ISP subscriber base and a $0.7 million release of company liabilities for deposits made by commercial developers.
Cost of Services and Sales Wireline cost of services and sales increased $8.1 million year over year due to a $3.8 million increase in labor, $1.8 million increase in service contracts and $1.5 million increase in land and building charges which were all primarily related to our new cable operations. We also experienced an increase of $1.1 million in ISP access and leased circuit expenses.
Other Income and Expense: Other income and expense for the nine months ended September 30, 2009 is a net expense of $28.2 million. The net increase of $4.2 million from the prior year is due to reductions of capitalized interest on fixed assets in the course of construction following the commercial launch of AKORN® in April 2009, and higher interest expense on the $125.0 million, 5.75% Convertible Notes issued April 8, 2008; offset by a decline in interest income due to a reduced amount of excess investible cash. Affecting interest expense on the $125.0 million, 5.75% Convertible Notes was the adoption of FASB FSP 14-1, Accounting for Convertible Debt that may be Settled in Cash Upon Conversion (ASC Topic 470-20, Debt with Conversion and Other Options) on January
Read the The complete ReportALSK is in the portfolios of David Dreman of Dreman Value Management.
ALASKA COMM SYS is engaged principally in providing local telephone wireless and inter-exchange network and data services to its customers in the State of Alaska through its telecommunications subsidiaries. They are a diversified facilities-based telecommunications provider in Alaska offering local telephone cellular long distance data and Internet services to business and residential customers throughout the state. Alaska Communications Systems Group Inc. has a market cap of $341.6 million; its shares were traded at around $7.71 with a P/E ratio of 51.5 and P/S ratio of 0.9. The dividend yield of Alaska Communications Systems Group Inc. stocks is 11.2%.
Highlight of Business Operations:
Retail: Declines in retail switched access lines in service in 2009 were concentrated in the residential market, which we believe was impacted by wireless substitution. Retail revenue decreased in the three months ended September 30, 2009 over September 30, 2008 primarily due to a $0.4 million decline in local exchange revenue associated with residential line losses, a $0.4 million decline in long distance sales and a $0.2 million decline in customer premise equipment (CPE) sales to businesses. These losses were offset, in part, by a $0.7 million release of company liabilities for deposits made by commercial developers and a $0.2 million increase in revenue from our existing Internet Service Provider (ISP) subscriber base.Enterprise: Enterprise revenue increased in the third quarter of 2009 primarily due to an increase in carrier customer data volume. We experienced an increase of $2.5 million in data sales to other carriers, inclusive of a decline in revenue of $0.4 million resulting from the expiration of a non-cash capacity exchange agreement with another carrier midway through the quarter. Additionally, we experienced a $0.6 million increase in data sales to government and commercial customers. These increases were offset, in part, by a $0.6 million decline in wholesale carrier voice revenue.
Cost of Services and Sales Wireline cost of services and sales increased $2.5 million this quarter over the prior year quarter ended September 30, due to a $0.7 million increase in service contracts, $0.5 million increase in labor and $0.4 million increase in land and building charges which were all primarily related to our new cable operations. We also experienced an increase of $0.3 million in CPE sales expense, $0.3 million increase in ISP access and leased circuit expenses and a $0.2 million increase in LD interstate COGS.
Retail: Declines in retail switched access lines in service in 2009 were concentrated in the residential market which we believe is impacted by wireless substitution. Retail revenue decreased in the nine months ended September 30, 2009 over September 30, 2008 primarily due to $1.8 million declines in local exchange revenue associated with residential line losses, a $1.0 million decline in long distance sales and $0.8 million lower CPE sales to businesses. These losses were offset, in part, by a $0.9 million increase in revenue from our existing ISP subscriber base and a $0.7 million release of company liabilities for deposits made by commercial developers.
Cost of Services and Sales Wireline cost of services and sales increased $8.1 million year over year due to a $3.8 million increase in labor, $1.8 million increase in service contracts and $1.5 million increase in land and building charges which were all primarily related to our new cable operations. We also experienced an increase of $1.1 million in ISP access and leased circuit expenses.
Other Income and Expense: Other income and expense for the nine months ended September 30, 2009 is a net expense of $28.2 million. The net increase of $4.2 million from the prior year is due to reductions of capitalized interest on fixed assets in the course of construction following the commercial launch of AKORN® in April 2009, and higher interest expense on the $125.0 million, 5.75% Convertible Notes issued April 8, 2008; offset by a decline in interest income due to a reduced amount of excess investible cash. Affecting interest expense on the $125.0 million, 5.75% Convertible Notes was the adoption of FASB FSP 14-1, Accounting for Convertible Debt that may be Settled in Cash Upon Conversion (ASC Topic 470-20, Debt with Conversion and Other Options) on January
Read the The complete ReportALSK is in the portfolios of David Dreman of Dreman Value Management.
