AYLMER, Ont. – Amtelecom Income Fund, the parent company of Amtelecom Communications, a cable and telephone company in southwestern Ontario, reported decreased revenues and earnings for the first quarter of 2005, ended March 31st.
For the first quarter of 2005, the Fund generated revenues from telecommunications, cable TV and Internet operations of $5.7 million, earnings before interest, taxes and amortization (EBITDA) of $2.7 million and net earnings of $1.0 million ($0.17 per unit). This compares to revenues from telecommunications, cable TV and Internet operations of $5.8 million, EBITDA of $2.7 million and net earnings of $1.1 million ($0.18 per unit) in the first quarter of 2004.
For the three month period ending March 31, 2005, the Fund declared distributions to unit holders totaling $0.30 per unit compared to distributions of $0.29 per unit for the same period ending March 31, 2004.
“Telecom Decision CRTC 2005-3 significantly reduced the revenues Amtelecom derives from direct toll, but this reduction was within the range of our expectations,” said company president and CEO Michael J. Andrews. “We have successfully reduced our reliance on direct toll revenues through organic growth in the telecom, cable and internet business segments as demonstrated by our first quarter results. We maintained our EBITDA and continue to deliver consistent results for our unit holders."
The January decision saw the CRTC replace the direct toll rates of each Canadian small incumbent local exchange carrier with a direct connection (DC) rate, an equal access (EA) charge, and trunking tariffs for the facilities used to interconnect an interexchange carrier’s point of interconnection with a small ILEC’s switch. The decision moved the small ILECs’ rates closer to market-based interconnection rates, and away from higher cost interconnection rates.
Andrews went on to note that growth in Amtelecom’s high speed internet business segment was particularly impressive rising 16% during the first quarter of 2005 and up 56% compared to March 2004.
Amtelecom Income Fund holds all of the common shares and notes of Amtelecom Communications Inc. and its operating subsidiaries. Amtelecom Communications is the local telephone service provider to several communities in southwestern and central Ontario, currently providing services through approximately 21,600 residential and business access lines. Amtelecom Communications also provides cable television service to approximately 8,800 subscribers and Internet services to approximately 6,000 subscribers in certain of its territories.
