High Point, NC — May 17, 2019 — NorthState, a fiber optic network, cloud and IT services provider, announced today its financial results for the first quarter ended March 31, 2019.
Summary of Selected Financial Data
Quarter Ended March 31, 2019 versus Quarter Ended March 31, 2018
- Consolidated net operating revenue (NOR) for the 2019 quarter totaled $34.2 million, up 13% compared to NOR of $30.1 million for the 2018 quarter.
- Total strategic revenue1 for the 2019 quarter of $25.5 million, up 17% compared to total strategic revenue of $21.7 million for the 2018 quarter. Strategic revenue comprised 75% of NOR for the 2019 quarter, compared to 72% of NOR for the 2018 quarter.
- Net income for the 2019 quarter of $2.9 million, up 45% compared to net income of $2.0 million for the 2018 quarter.
- Earnings per share (EPS) for the 2019 quarter of $1.26 compared to EPS of $0.87 for the 2018 quarter.
Chief Executive Officer Royster Tucker III said, “Our first quarter results demonstrate continued effective execution on our fiber, cloud enablement and IT services strategy and our fiber expansion in the Piedmont Triad Region of North Carolina. We are very pleased with our strong start to the year.”
“During the first quarter, consolidated net operating revenue continued to shift in favor of both strategic and business revenue. Internet and communications revenues were up 4.4% compared to the prior year quarter, primarily driven by higher average revenue per user and increases in both fiber-connected households and businesses. IT services and hardware revenues grew by 29.9% year-over-year, driven by a 71.5% increase in telecom and IT equipment revenue and a 66.1% increase in professional services revenue.”
Added Mr. Tucker, “Encouraged by our sales efforts in this opening quarter, we are continuing to build momentum in the IT services and hardware segment. In addition, as we broaden our fiber footprint and increase penetration in existing markets we are continuing to drive growth in our Internet and communications segment. As a result of these efforts, we remain well positioned for successful execution on our growth strategy.”
For further details on NorthState’s financial results for the first quarter of 2019, please see the Q1 2019 Earnings Report.
1 Strategic Revenue is all revenue excluding legacy voice revenue. Legacy voice revenue is comprised of non-IP voice, long distance, and network access revenue. Please see the financial tables included in the press release on the company’s website.
Some of the statements made in this earnings release may be forward-looking statements including “we are continuing to build momentum in the IT services and hardware segment,” “as we broaden our fiber footprint and increase penetration in existing markets we are continuing to drive growth in our Internet and communications segment” and “we remain well positioned for successful execution on our growth strategy.” The inclusion of forward-looking information should not be construed as a representation by NorthState 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 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 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