Category Archives: News

NORTH STATE ANNOUNCES NEW MEMBERS AND OTHER CHANGES TO EXECUTIVE LEADERSHIP TEAM

COO Mark Dula and CBO Richard Worden to retire. Four EVPs Appointed.

High Point, NC—December 15, 2016—Today North State President and CEO Royster Tucker III announced a series of leadership and organizational changes effective January 1, 2017.  Mark Dula, Vice President and Chief Operating Officer, and Richard Worden, Vice President and Chief Business Officer, will retire effective December 31, 2016. Two executives, Nicholas Kottyan and Bill Cooper, will join North State’s leadership team.  The team will focus on enhancing North State’s efforts to deliver best-in-class business IT and cloud services and continued fiber network expansion in the Piedmont Triad area.

In addition to the two new members of the executive leadership team, three senior North State leaders – Scott Toth, Scott Watts and Lynn Welborn – will take on expanded roles and responsibilities.

“Mark and Richard each served North State for over three decades,” said Royster Tucker. “Mark spent many of his years in our engineering group, led our external affairs group, headed up our business markets group, and led many important areas of our operations as our COO.

“Richard spent his years primarily in business development roles. He built and managed our long distance operations and our wireless operations. He led our consumer markets and most recently as our CBO headed up our sales and customer support efforts.  On behalf of the Board and our employees, I want to thank Mark and Richard for their many years of service to North State and wish them all the best in their retirement.”

As previously announced, Vice President and Chief Financial Officer Jon Cage will also retire effective December 31, 2016.  Scott Toth will assume the role of Executive Vice President and CFO. Toth will oversee accounting, finance and IT functions and serve as Treasurer of the corporation.

Scott Watts will assume the role of Executive Vice President and Chief Marketing Officer.  In addition to his current marketing, product and revenue leadership responsibilities, Watts will assume leadership of sales and customer support functions for North State’s network based, wireline products and services.

Lynn Welborn will assume the role of Executive Vice President and Chief Administrative Officer.  Welborn will continue oversight of the company’s people operations, investor relations and corporate administration, legal affairs, external affairs.  She also serves as Secretary of the corporation.

Nick Kottyan, currently President and CEO of North State wholly owned subsidiary DataChambers, will assume the role of Executive Vice President and Chief Operating Officer of the corporation.  Kottyan will assume leadership of technology, network and field operations including infrastructure and support functions.  He will remain President and CEO of DataChambers and continue to lead the DataChambers business unit.

Bill Cooper, currently President and CEO of wholly owned subsidiary Stalwart Systems, joins the corporate executive leadership team as Executive Vice President.  He will remain President and CEO of Stalwart Systems and continue to lead the company’s Stalwart business unit.

“This team has the capabilities, accomplishments, passion, and values to lead North State into the future,” Tucker said.  “Under their leadership, I am confident we will build on our momentum, move faster, execute, innovate and perform and grow as never before.”

About North State

North State (OTC: NORSA) (OTC: NORSB) is a technology company focused on inspiring the Internet-driven lifestyle through high touch experiences. Its fiber-delivered, ultrafast Internet and Internet-driven applications enable residential customers and businesses to efficiently and securely take advantage of the Internet. Through its wholly owned subsidiaries, Data Chambers and Stalwart Systems, North State provides best-in-class data center colocation, customized cloud and IT solutions, managed disaster recovery services, managed security and unified communications. For more information, visit northstate.net.

News media contact
Scott Carpenter
336.722.9660 or scott@capturevalue.com

Bring a Toy for Gifts for Kids to Wake Forest Game

Bring a Toy for Gifts for Kids to Wake Forest Game and Receive a FREE Dozen Krispy Kreme Original Glazed Doughnuts!

High Point, NC—December 2, 2016—The 28th year of FOX8 Gifts for Kids, a holiday campaign that collects gifts for The Salvation Army of the Triad, is underway.  As part of this year’s Gifts for Kids campaign, game sponsor North State is asking fans to bring new, unwrapped toys to the Wake Forest vs. UNC-Charlotte basketball game at Lawrence Joel Veterans Memorial Coliseum on Tuesday, December 6 at 7 p.m.

Each person contributing at least one toy will receive a coupon for a free dozen Krispy Kreme Original Glazed® Doughnuts.  The Salvation Army band will perform outside the Coliseum main entrance to greet game fans.

In addition to taking toys to Wake Forest game, gifts can be dropped off at the FOX8 Studios at 2005 Francis Street in High Point until December 12. Gifts and monetary contributions can also be taken to any Lowe’s Home Improvement Warehouse and North State locations in the Piedmont through December 11. The Salvation Army will pick up the gifts collected from FOX8 and transport them to Salvation Army warehouses for distribution to local families in need. Anyone needing assistance should contact the local Salvation Army.

FOX8 Gifts for Kids helps The Salvation Army serve more than 20,000 children in the Piedmont every Christmas. North State is proud to join FOX8 as a corporate sponsor of the program and Lowe’s Home Improvement Warehouse is the retail sponsor.

About North State

North State (OTC: NORSA, NORSB)  is a technology company focused on inspiring the Internet-driven lifestyle through high touch experiences. Its fiber-delivered, ultrafast Internet and Internet-driven applications enable residential customers and businesses to efficiently and securely take advantage of the Internet.  Through its wholly owned subsidiaries, Data Chambers and Stalwart Systems, North State provides best-in-class data center colocation, customized cloud and IT solutions, managed disaster recovery services, managed security and unified communications. For more information, visit  northstate.net

News media contact
Scott Carpenter
336.722.9660 or scott@capturevalue.com

FREE Showing of The Polar Express to Support Gifts for Kids

High Point, NC—November 18, 2016—The 28th year of FOX8 Gifts for Kids, a holiday campaign that collects gifts for The Salvation Armies of the Piedmont Triad, is underway.  As part of this year’s Gifts for Kids campaign, North State is sponsoring a screening of the holiday classic film The Polar Express at the Carolina Theatre, located at 310 South Greene Street in downtown Greensboro on Saturday, November 26 at 7 p.m.   Admission to the movie is free, but contributions of new, unwrapped toys or money to Gifts for Kids are encouraged.

“Every toy or donation to FOX8 Gifts for Kids will enable The Salvation Army to help families in need,” said Captain Bobby Jackson, Commanding Officer for The Salvation Army of High Point.  “Help us make Christmas brighter for thousands of families in need right here in the Piedmont.”

In addition to taking toys to the movie screening, gifts can be dropped off at the FOX8 Studios at 2005 Francis Street in High Point until December 12. Gifts and monetary donations can also be taken to any Lowe’s Home Improvement Warehouse and North State locations in the Piedmont through December 11. The Salvation Armies will pick up the gifts collected from FOX8 and transport them to Salvation Army warehouses for distribution to local families in need. Anyone needing assistance should contact the local Salvation Army.

“The need to support local families during the holidays continues to increase every year.  In 2014, we raised $108,000 for Gifts for Kids and last year we raised almost $131,000.  We hope to collect even more money this year,” North State President and Chief Executive Officer Royster Tucker, III said.  “As a result of the generous support of people across the Piedmont Triad, Gifts for Kids provided Christmas gifts for more than 22,000 children in each of the past two years.”

FOX8 Gifts for Kids helps The Salvation Army’s serve more than 20,000 children in the Piedmont every Christmas. North State is proud to join FOX8 as a corporate sponsor of the program and Lowe’s Home Improvement Warehouse is the retail sponsor.

About North State

North State (OTC: NORSA, NORSB)  is a technology company focused on inspiring the Internet-driven lifestyle through high touch experiences. Its fiber-delivered, ultrafast Internet and Internet-driven applications enable residential customers and businesses to efficiently and securely take advantage of the Internet.  Through its wholly owned subsidiaries, Data Chambers and Stalwart Systems, North State provides best-in-class data center colocation, customized cloud and IT solutions, managed disaster recovery services, managed security and unified communications. For more information, visit  northstate.net

News media contact
Scott Carpenter
336.722.9660 or scott@capturevalue.com

NORTH STATE REPORTS THIRD QUARTER 2016 RESULTS

New Strategic Focus Continues to Produce Strong Results

High Point, NC—November 17, 2016—North State, a leading fiber optic network, cloud and IT services provider, announced today its financial results for the third quarter ended September 30, 2016.

Summary of Selected Financial Data

Quarter Ended September 30, 2016 versus Quarter Ended September 30, 2015

  • Consolidated net operating revenue (NOR) of $29.4 million, up 8%.1
  • Total strategic revenue2 of $19.9 million, up 16%, and 68% of NOR.1
  • Operating income of $1.9 million, up 5%.
  • Net income of $2.3 million, up 15%.
  • Earnings per share of $1.04, up 17%.

Nine Months Ended September 30, 2016 versus Nine Months Ended September 30, 2015

  • Consolidated NOR of $85.9 million, up 18%.1
  • Total strategic revenue2 of $57.0 million, up 33%, and 66% of NOR.1
  • Operating income of $6.1 million, up 27%.
  • Net income of $7.1 million, up 11%.
  • Earnings per share of $3.13, up 12%.

North State CEO Royster Tucker III commented, “Our growth in strategic revenues continued in the third quarter of 2016 as our investments in fiber and focus on IT services continue to positively impact our business.  Revenue growth continued, with a portion of our growth the result of our acquisition of Stalwart Systems in the middle of last year.  EBITDA was $9.1 million, up 7% from the previous year and earnings were up for the quarter.  66% of our revenues now come from business clients while on the consumer side, average revenue per  household was up 8% as more people enjoy our fiber connected gig-a-bit internet offering.”

Mr. Tucker concluded, “We continue to see opportunities for growth as we transition North State into a leading provider of IT security, cloud and managed services for businesses, in addition to our strong fiber-focused product line.  We are excited to take an expanding role in people’s lives and business success as the internet increasingly enables people and businesses look to securely migrate to the cloud and digital platforms.”

For further details on North State’s financial results for the third quarter of 2016, please see the financial tables included in the press release on the company’s website at: Q3 2016 Earnings Report.

1 Largely due to the acquisition of Stalwart Systems in July of 2015 and revenue growth across all of our strategic services.
2 Total strategic revenue is strategic Internet and communications revenue and all IT services and hardware revenue, for both business and consumer segments.

About North State

North State (OTC: NORSA) (OTC: NORSB) is a technology company focused on inspiring the Internet-driven lifestyle through high touch experiences. Its fiber-delivered, ultrafast Internet and Internet-driven applications enable residential customers and businesses to efficiently and securely take advantage of the Internet.  Through its wholly owned subsidiaries, Data Chambers and Stalwart Systems, North State provides best-in-class data center colocation, customized cloud and IT solutions, managed disaster recovery services, managed security and unified communications. For more information, visit  northstate.net

Contacts:
North State
Andrew Stevenson
336-886-3801
investor.relations@nscom.com

LHA
Harriet Fried, SVP
212-838-3777
hfried@lhai.com

 

Tri-Gig Regional Collaborative Selects North State to Evaluate Broadband Infrastructure Plan

Greensboro, NC—November 15, 2016—North State has been selected by the City of Greensboro, along with the cities of Burlington and High Point, Guilford County, UNC Greensboro, NC A&T State University and the Piedmont Triad Regional Council (PTRC) as its preferred vendor to initiate discussions regarding regional high-speed broadband efforts. This collaboration, known as Tri-Gig, is to encourage the development of high-speed broadband networks to meet the technological needs of current and future businesses, educational institutions, healthcare, and residents. A primary goal of the Tri-Gig initiative is to leverage existing assets, such as fiber optic lines, and create additional assets to assist Internet service providers with building and deploying high-speed broadband networks in Greensboro and surrounding areas.

“Beginning a dialogue and initiating planning about becoming a ‘gigabit community’ that would make us more attractive to future business and create lots of exciting possibilities are great first steps. Developing a unique public/private partnership with providers like North State will help us achieve an architectural footprint that will expand gigabit services to parts of the community,” said Jane Nickles, director of Greensboro’s Information Technology Department.

Members of Tri-Gig will initially work with North State to discuss and formalize certain pilot projects throughout the area. The long-term vision is to develop a gigabit fiber network that fosters innovation, stimulates economic growth, drives job creation, and serves new areas of development in the community.

“North State is thrilled that Tri-Gig selected us to be part of the planning for this community initiative,” said Scott Watts, Chief Marketing Officer for North State.  “We believe high-speed broadband is an important part of the economic growth of this area and are excited to learn more about Tri-Gig’s plans in the coming months.”

News media contact

Scott Carpenter
336.722.9660 or scott@capturevalue.com

North State’s Royster Tucker, III Named One of the Piedmont Triad’s Most Influential People

High Point, NC—November 14, 2016—North State, The Triad Business Journal has named North State President and Chief Executive Officer Royster Tucker, III one of the Piedmont Triad’s Most Influential People. Tucker was one of 97 regional leaders included on the publication’s 2016 list. Based in High Point, and serving a large portion of the Piedmont Triad, North State is a leading fiber optic network, cloud and IT services provider.

“Our goal for this publication is to be selective,” Ollie Chandhok, President and Publisher of the Triad Business Journal, said. “Imagine it [the roster of Most Influential People] as a list that you would share with someone who is new to the region as a cheat sheet on the key leaders who guide this region.”

Describing why he was included among its list of Most Influential People, the Triad Business Journal’s staff said, “Tucker has spent more than three decades with the High Point-based telecom company started by his great-grandfather, but his influence extends well outside the industry. He serves locally with, among others, Business High Point, the Greensboro Partnership, the Winston-Salem Chamber, High Point Regional/UNC and Guilford County Economic Development Alliance.”

Royster Tucker, III has served as North State’s President and Chief Executive Officer since 2014, where he is responsible for the growth and management of the company. Tucker has served as a member of the company’s Board of Directors since 1992 and currently is Vice Chairman. From 2008 to 2014, he served as North State’s President and Chief Operating Officer. From 1999 to 2008, Tucker served as an Executive Vice President. From 1992 to 1999, he served as a Vice President.

The son of Royster Tucker Jr., who served as North State’s Chairman and President from 1982 to 2008, and the great grandson of our founder Jesse F. Hayden, Tucker joined North State in 1981 and has served in a variety of operations, marketing, engineering and technology roles as well as management positions. He holds an A.B. in Business Administration from Lenoir-Rhyne College in Hickory, NC.

About North State

North State (OTC: NORSA, NORSB)  is a technology company focused on inspiring the Internet-driven lifestyle through high touch experiences. Its fiber-delivered, ultrafast Internet and Internet-driven applications enable residential customers and businesses to efficiently and securely take advantage of the Internet.  Through its wholly owned subsidiaries, Data Chambers and Stalwart Systems, North State provides best-in-class data center colocation, customized cloud and IT solutions, managed disaster recovery services, managed security and unified communications. For more information, visit  northstate.net

News media contact

Scott Carpenter
336.722.9660 or scott@capturevalue.com

NORTH STATE ANNOUNCES QUARTERLY DIVIDEND

High Point, NC—November 10, 2016—North State, a leading fiber optic network, cloud and IT services provider, announced today that the board of directors of North State declared a cash dividend of $1.30 per share on the company’s common stock.  The dividend is payable on December 2, 2016 to stockholders of record on November 21, 2016.

About North State

North State (OTC: NORSA, NORSB)  is a technology company focused on inspiring the Internet-driven lifestyle through high touch experiences. Its fiber-delivered, ultrafast Internet and Internet-driven applications enable residential customers and businesses to efficiently and securely take advantage of the Internet.  Through its wholly owned subsidiaries, Data Chambers and Stalwart Systems, North State provides best-in-class data center colocation, customized cloud and IT solutions, managed disaster recovery services, managed security and unified communications. For more information, visit  northstate.net

Contacts:
North State                                                 LHA
Andrew Stevenson                                     Harriet Fried, SVP
336-886-3801                                             212-838-3777
investor.relations@nscom.com                   hfried@lhai.com

NORTH STATE ANNOUNCES APPOINTMENT OF TRANSFER AGENT

High Point, NC—September 28, 2016—North State, a leading fiber optic network, cloud and IT services provider, announced today the appointment of Continental Stock Transfer & Trust Company as its stock transfer agent and registrar.

“We are pleased to announce the appointment of Continental, one of the nation’s leading providers of securities processing and record-keeping services,” said North State CEO Royster Tucker III.  “We believe our shareholders will be well served by this change as Continental will facilitate shareholders’ record-keeping, stock transfers, receipt of dividend payments and other tasks.”

A letter providing detailed information on how to contact Continental, set up an online account and related matters will be mailed to shareholders on September 29, 2016.

Continental’s website is: www.continentalstock.com.

About North State

North State is a technology company focused on inspiring the Internet-driven lifestyle through high touch experiences.  Its fiber-delivered, ultrafast Internet and Internet-driven applications enable residential customers and businesses to efficiently and securely take advantage of the Internet.  Through its wholly owned subsidiaries, Data Chambers and Stalwart Systems, North State provides best-in-class data center colocation, customized cloud and IT solutions, managed disaster recovery services, managed security and unified communications.  For more information, visit northstate.net

Contacts:
North State                                                 LHA
Andrew Stevenson                                     Harriet Fried, SVP
336-886-3801                                             212-838-3777
investor.relations@nscom.com                   hfried@lhai.com

NORTH STATE REPORTS SECOND QUARTER 2016 RESULTS

Strong Performance Reflects Positive Impact of New Strategic Focus

High Point, NC—August 30, 2016—North State, a leading fiber optic network, cloud and IT services provider, announced today its financial results for the second quarter ended June 30, 2016.

Summary of Selected Financial Data

Quarter Ended June 30, 20161

  • Consolidated net operating revenue (NOR) of $27.8 million, up 20%.2
  • Total strategic revenue3 of $18.2 million, up 37%, and 65% of NOR.2
  • Operating income of $1.7 million, up 59%.
  • Net income of $2.4 million, up 26%.
  • EBITDA of $9.3 million, up 12%, representing a margin of 33%.
  • Earnings per share of $1.05, up 27%.
  • Total cash generation4 of $8.8 million, up 185%.
  • Capital expenditures of $5.1 million, up 2%.
  • Free cash flow5 of $3.7 million, up from negative $1.9 million.

Six Months Ended June 30, 20166

  • Consolidated NOR of $56.5 million, up 23%.2
  • Total strategic revenue3 of $37.1 million, up 44%, and 66% of NOR.2
  • Operating income of $4.3 million, up 40%.
  • Net income of $4.8 million, up 9%.
  • EBITDA of $18.3 million, up 8%, representing a margin of 32%.
  • Earnings per share of $2.09, up 9%.
  • Total cash generation4 of $18.5 million, up 66%.
  • Capital expenditures of $9.3 million, down 28%.
  • Free cash flow5 of $9.2 million, up from negative $1.8 million.

North State CEO Royster Tucker III commented, “North State’s journey forward in the second quarter resulted in strong performance, reflecting positive results as we execute on our strategy of delivering best in class business IT and cloud services and continued fiber network expansion enabling internet speeds of one gigabit per second. For the quarter, nearly 65% of our revenue came from business customers, enabled by our acquisitions in recent years in the data center and IT security space. Our colocation, cloud and IT security services have been a strong contributor to growing this customer base.

“At the same time, we expanded our strategic fiber-focused consumer business, which grew 15% as we expand fiber into new markets and increase penetration in existing markets. In addition, we realized strong operating leverage as we grew the company’s top line.”

Mr. Tucker concluded, “Demand for high-bandwidth IP-based data services is strong and the adoption of cloud services is accelerating. North State’s fiber expansion and IT services portfolio provide an excellent platform for growth.

“We recently partnered with a prominent set of lenders in a new credit facility that strengthens our ability to advance our transition into a leading provider of IT security, cloud and managed services for businesses as well as a strong, fiber-focused product line. In the second half of 2016, we plan to continue to build upon our strategy and leverage the assets we have in order to take advantage of the growing digital landscape.”

For more information, please see 2016 Q2 Earnings Report.

About North State

North State is a technology company focused on inspiring the Internet-driven lifestyle through high touch experiences. Its fiber-delivered, ultrafast Internet and Internet-driven applications enable residential customers and businesses to efficiently and securely take advantage of the Internet. Through its wholly owned subsidiaries, Data Chambers and Stalwart Systems, North
State provides best-in-class data center colocation, customized cloud and IT solutions, managed disaster recovery services, managed security and unified communications. For more information, visit northstate.net.

Contacts:
North State
Andrew Stevenson
336-886-3801
investor.relations@nscom.com

LHA
Harriet Fried, SVP
212-838-3777
hfried@lhai.com

 

1 All comparisons are between the three months ended June 30, 2016 and the three months ended June 30, 2015.
2 Largely due to the acquisition of Stalwart Systems in July of 2015 and revenue growth across all of our strategic services.
3 Total strategic revenue is strategic Internet and communications revenue and all IT services and hardware revenue, for both business and consumer segments.
4 Total cash generation is cash flows from operations plus partnership cash distributions.
5 Free cash flow is total cash generated minus capital expenditures.
6 All comparisons are between the six months ended June 30, 2016 and the six months ended June 30, 2015.

NORTH STATE ENTERS INTO $75 MILLION CREDIT FACILITY

Flexible terms and strong lending group demonstrate potential for growth

High Point, NC—July 18, 2016North State, a leading fiber optic network, cloud and IT services provider, announced today the completion of a new credit facility. Bank of America Merrill Lynch leads the facility syndicate that includes CoBank, Fifth Third Bank, High Point Bank and TD Bank. Highlights of the credit facility are:

• Capacity to $75 million with both revolving and term loan components;
• Refinances existing debt with broad discretion to use remaining capacity for general corporate purposes including capital expenditures, distributions, stock buybacks and acquisitions;
• A maturity date to July 2021.

North State CEO Royster Tucker III commented, “We are pleased to have completed a financing arrangement that recognizes our strong financial position and provides the necessary flexibility to opportunistically pursue our strategy. We have partnered with a prominent set of lenders that understand the IT space and our vision for North State within it, which centers on opportunities emerging from the digitization of homes and businesses.”

North State intends to use the new credit facility to further its transition into an Internet and IT services company for businesses while continuing to offer a strong, fiber-focused consumer product line.

About North State

North State is a technology company focused on inspiring the Internet-driven lifestyle through high touch experiences. Its fiber-delivered, ultrafast Internet and Internet-driven applications enable residential customers and businesses to efficiently and securely take advantage of the Internet. Through its wholly owned subsidiaries, Data Chambers and Stalwart Systems, North State provides best-in-class data center colocation, customized cloud and IT solutions, managed disaster recovery services, managed security and unified communications. For more information, visit northstate.net.

Contacts:
North State
Andrew Stevenson
336-886-3801
investor.relations@nscom.com

LHA
Harriet Fried, SVP
212-838-3777
hfried@lhai.com