Hawaiian Telcom Holdco Inc. lost $435,000 in the fourth quarter due to increased investments in the company’s business transformation and costs associated with employee retirements.
The technology company said in its financial results due out today that the two primary reasons for the decrease was a $1.7 million noncash pension expense related to employee retirements in the quarter and a $1.4 million anticipated year-over-year increase in depreciation and amortization as it continues to invest in its broadband fiber network.
“We have laid a solid foundation for growth and are confident in our team’s ability to execute our strategic plan with the ultimate goal of increasing shareholder value,” said Scott Barber, Hawaiian Telcom’s president and CEO. “2015 was a successful year for Hawaiian Telcom as we diligently executed our strategic plan and built momentum in our key growth areas. Strategic investments in our fiber broadband network and next-generation services have enabled our ongoing transformation from a traditional phone company to Hawaii’s technology leader.”
The company reported a loss of 4 cents a share, down from a profit of $2 million, or 19 cents a share, the year before.
| FOURTH-QUARTER LOSS
$435,000
YEAR-EARLIER NET
$2 million
|
The technology company continued to add new subscribers to its TV business with nearly 1,900 new Hawaiian Telcom TV subscribers in the fourth quarter. Hawaiian Telcom ended 2015 with approximately 35,900 subscribers.
“Hawaiian Telcom TV continues to be the leading driver of growth in our consumer channel, pulling through Internet and driving a solid 2.5 percent growth in overall consumer revenues in 2015,” Barber said.
Hawaiian Telcom added 7,000 households that could receive its broadband service in the quarter, increasing enabled households on Oahu to 190,000.
Driven by revenue growth from Hawaiian Telcom TV and Internet services, the company’s fourth-quarter consumer revenue totaled $36.3 million, up 0.6 percent year-over-year.
Video services revenue was $9.2 million for the quarter, up 30.3 percent from $7.1 million in the same period a year ago.
Hawaiian Telcom’s overall revenue was $99.2 million for the fourth quarter, down from $99.6 million from the year-earlier period.
Net income for all of 2015 was $1.1 million, or 10 cents a share, compared with $8.1 million, or 72 cents a share, in 2014.
Hawaiian Telcom said the decrease was primarily due to $8.1 million in expenses related to employee retirements during the year, and a $9.9 million increase in depreciation and amortization because of investments made to the company’s broadband fiber network.
For the full year, Hawaiian Telcom had $99 million in capital expenditures with 87 percent directed toward growth and expansion initiatives. That compares with $96.7 million in capital expenditures in 2014.
