High Point, NC—NOVEMBER 16, 2017—NorthState, a leading fiber optic network, cloud and IT services provider, announced today its financial results for the third quarter and nine months ended September 30, 2017.
Summary of Selected Financial Data
Quarter Ended September 30, 2017 versus Quarter Ended September 30, 2016
- Consolidated net operating revenue (NOR) for the quarter totaled $29.7 million, up 1% compared to third quarter 2016.
- Total strategic revenue1 of $20.6 million, up 2%. Strategic revenue comprised 69% of NOR.
- Net income of $1.1 million compared to $2.4 million.
- Earnings per share of $0.47 compared to $1.04.
Nine Months Ended September 30, 2017 versus Nine Months Ended September 30, 2016
- Consolidated NOR of $87.2 million, up 1% compared to 2016.
- Total strategic revenue1 of $59.6 million, up 5%, and 69% of NOR.
- Net income of $3.6 million compared to $7.2 million.
- Earnings per share of $1.57 compared to $3.14.
Comparative net income and EPS were impacted by $0.7 million and $1.9 million in the three-month and nine-month 2017 periods, respectively, for restructuring charges associated with the formation of our integrated information technology services unit that we announced in May 2017 and by lower non-operating income reflective of reduced contribution from our wireless partnership.
Chief Executive Officer Royster Tucker III said, “During the third quarter we completed the integration of our information technology services unit, now operating under a single, unified NorthState brand and leadership. While the integration has impacted our financial results this year, we are better organized for rapid growth. In addition, we took other actions to invest in our future, including starting to ramp up our salesforce to support our growth plans for 2018. During the period, we also met a milestone in NorthState’s service to residential customers by now passing a total of more than 70,000 households with fiber.
“With the recent appointment of Jeff Chapman as Executive Vice President, Operations, we have completed the realignment of our executive leadership team and are well positioned to continue transforming our business through a market-leading focus on fiber and IT solutions, bringing first-class experiences and outcomes to our customers.”
For further details on North State’s financial results for the third quarter of 2017, please see the financial tables included in the press release on the company’s website at: Q3 2017 Earnings Report.
1 Total strategic revenue is strategic Internet and communications revenue and all IT services and hardware revenue, for both business and consumer segments.
Forward Looking Statements
The inclusion of forward-looking information should not be construed as a representation by North State that our plans or expectations will be achieved. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
NorthState (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 Technology Solutions business unit, NorthState 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