Category Archives: News

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

North state announces NEW Fiber EQUIPPED BUILDING in downtown greensboro

High Point, NC—June 22, 2016—North State announced today the availability of Fiber Internet at 101 S. Elm Street in Greensboro. This five-story office building is located at the corner of South Elm Street and East Market Street. It offers a full-service health club, a print shop and customizable office suites—all now with Fiber Internet. Upgrading to North State’s Fiber Internet will allow these locations to take advantage of Gigabit speeds and service that is far faster than what tenants experience today.

“As downtown Greensboro continues to evolve and grow, it’s important to keep our businesses updated with the latest Internet technology,” said Chantelle Stoughton, 101 S. Elm Street building manager. “North State Fiber is vital to keeping our businesses moving quickly, securely and successfully. We are so pleased to have fiber as part of the amenities and services at 101 South Elm Street.”

“Our Fiber Internet provides increased bandwidth. This means businesses have access to technology that is faster and more dependable than what is commonly available,” said Royster Tucker III, Chief Executive Officer of North State. “We understand that time is money. We want to ensure that the Greensboro business community can work as efficiently and seamlessly as companies anywhere in the country. It’s about being competitive. Our fiber technology puts our local businesses on the same technology playing field.”

To learn more about North State or to find out if Fiber Internet is available in your area, visit northstate.net.

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, 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.

MANDATORY 10-DIGIT LOCAL DIALING IS HERE

High Point, NC – March 21, 2016

For Callers in the North Carolina 336 Area Code

Starting April 23, 2016, all local calls made within the North Carolina 336 area code must be placed using the 10 digit telephone number (area code plus the 7-digit local telephone number), whether using home telephone service or cellular service.

To ensure a continuing supply of telephone numbers, the North Carolina Utilities Commission ordered a 743 Area Code Overlay for the area currently assigned the 336 area code.   This means that two area codes, 743 and 336, will now be used in the geographic area that was covered by 336 alone. Generally, the affected area covers the Piedmont, including the cities of Greensboro, Winston‑Salem, High Point, Kernersville, Burlington, North Wilkesboro, Roxboro and Asheboro.

New MANDATORY Dialing Pattern

Starting April 23, 2016, all local calls must be placed using 10‑digit telephone numbers (336 or 743 plus the 7-digit local telephone number). Beginning May 23, 2016, customers in the 336 area code region requesting new service, adding an additional line, or in some cases moving their service, may be assigned a new number in the new 743 area code.  EXISTING TELEPHONE NUMBERS BEGINNING WITH 336 WILL NOT BE SUBJECT TO CHANGE.

Facts About the New Area Code

The most important facts that consumers and businesses need to know about the upcoming 743 area code overlay are:

  • Your telephone number, including current area code, will not change, but may if you move your service or add an additional line.
  • You will need to dial 10 digits (area code + 7-digit local telephone number) for all local calls.
  • For billing purposes, what is now a local call will remain a local call, even though 10 digits instead of 7 digits must be dialed.
  • You will continue to dial 1+ area code + 7-digit local telephone number for all long distance calls.
  • The price of a call, coverage area, or other rates and services will not change due to the overlay.
  • You can still dial just three digits to reach 911.
  • If 211, 311, 411, 511, 611, 711 or 811 are currently available in your community, you will still dial these codes with just three digits.
Planning for the New Area Code

Customers should identify their telephone number as a ten digit number (area code + 7-digit local telephone number), and include the area code when giving the number to their friends, family, business associates and business customers, etc.

Customers will need to ensure that all services, automatic dialing equipment, applications, software, or other types of equipment recognize the new 743 area code as a valid area code.  Some examples are life safety systems, fax machines, Internet dial-up numbers, alarm and security systems, gates, speed dialers, mobile phone contact lists, call forwarding settings, voicemail services, and similar functions. Be sure to check your business stationery, website, advertising materials, personal checks, and your personal or pet ID tags to ensure the area code is included in your telephone number.  Remember that all local calls must be programmed using 10-digits and you still need to add “1” for all long distance calls.

For more information, please visit the North Carolina Utilities Commission’s website at www.ncuc.net. If customers have any questions regarding information provided in this release, please call your service provider at the customer service number on your bill.

NORTH STATE EXPANDS EXECUTIVE LEADERSHIP WITH THE APPOINTMENT OF SCOTT WATTS AS CHIEF MARKETING OFFICER

High Point, NC—November 6, 2015North State, a leading fiber optic network, data center, cloud services and IT solutions provider announced today the appointment of Scott Watts to the position of Vice President and Chief Marketing Officer.

In this newly added role, Watts will oversee all corporate marketing functions, revenue planning, research, business development and strategic opportunities. He will report to Royster Tucker, President and CEO.

Watts has been with North State for eight years in various management and strategic leadership roles focusing on developing new lines of business, including North State’s fiber expansion. Prior to North State, Watts spent 11 years at CT Communications, Inc. in several sales and product management positions.

“Scott has done an outstanding job for us in various marketing, strategy and business development roles,” said Royster Tucker III, Chief Executive Officer of North State. “As we expand into new lines of business, address new markets and offer products under multiple brands, we see the CMO role as an important addition to our executive leadership team.”

To learn more about North State, visit northstate.net.

About North State
Driven by a spirit that embraces caring for people and communities, North State is a technology company focused on inspiring the Internet-driven lifestyle through high touch experiences. North State’s fiber-delivered, ultrafast Internet and Internet-driven applications allow residential customers and businesses to efficiently and securely take advantage of the Internet. Through its wholly owned subsidiaries Data Chambers and Stalwart, North State provides best-in-class data center colocation, customized cloud and IT solutions, managed disaster recovery services, managed security and unified communications.