North State Continues Transformation
High Point, NC— MARCH 2, 2017—North State, a leading fiber optic network, cloud and IT services provider, announced today its financial results for the fourth quarter and year ended December 31, 2016.
Summary of Selected Financial Data
Quarter Ended December 31, 2016 versus Quarter Ended December 31, 2015
- Consolidated net operating revenue (NOR) for the quarter totaled $33.3 million, up 10% compared to fourth quarter 2015.1
- Total strategic revenue2 of $24.0 million, up 21%. Strategic revenue now comprises 72% of NOR.1
- Operating income totaled $0.7 million compared to $2.4 million.
- Net income of $1.6 million compared to $3.4 million.
- Earnings per share of $0.72 compared to $1.46.
Year Ended December 31, 2016 versus Year Ended December 31, 2015
- Consolidated NOR of $119.3 million, up 15% compared to 2015.1
- Total strategic revenue2 of $80.9 million, up 29%, and 68% of NOR.1
- Operating income of $6.9 million compared to $7.3 million.
- Net income of $8.8 million compared to $9.9 million.
- Earnings per share of $3.85 compared to $4.27.
Comparative results were impacted by a one-time credit to expenses related to a change in benefit accruals recognized in the fourth quarter 2015 that did not occur in 2016, lower non-operating income reflective of reduced contribution from our wireless partnership, and by costs associated with fully expanded data center operations in 2016.
Chief Executive Officer Royster Tucker III said, “2016 was an important year in the transformation of North State into an IT-centric organization. Our ongoing investments in fiber and new investments in IT solutions drove strong strategic revenue growth. We have built a unique platform to participate in the growing digital business environment and further align with consumers as their reliance on the internet and the cloud increases.
“Our business segment showed strong growth from our focus on business continuity and IT outsourcing. Our consumer segment continued to show growth as it has for the past several years, coming from our fiber focus.
“Our executive realignment effective at the beginning of 2017 positions our leadership team to collectively view the markets we are in, see where our customers are going, and to best utilize our teams and broad assets to drive growth. We continue to build a disciplined approach with a growing emphasis on operational efficiencies.”
For further details on North State’s financial results for the fourth quarter and full year 2016, please see the financial tables included in the press release on the company’s website at: Q4 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.
Harriet Fried, SVP