EX-99.2 3 nts_ex992.htm PRESENTATION nts_ex992.htm
EXHIBIT 99.2
 
1Q FY2013
Financial Results
CONFERENCE
CALL
 
 
 
Presenters
2
• Guy Nissenson, Chairman, President & CEO
• Niv Krikov, CFO
 
 
 
Safe Harbor Statement
 This presentation may contain forward-looking statements. The words or phrases "would be", "will allow", "should“, "intends to",
 "will likely result", "are expected to", "will continue", "is anticipated", "estimate", "plan", "project", or similar expressions are
 intended to identify "forward-looking statements". Actual results could differ materially from those projected in the forward-looking
 statements as a result of a number of risks and uncertainties. These risks and uncertainties include issues related to the ability to:
 obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new
 agreements; issues related to rapidly changing technology and evolving standards in the industries in which the Company and its
 subsidiaries operate; the Company’s ability to compete effectively and adjust to rapidly changing market dynamics; the unpredictable
 nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and/or registration
 statement. In addition, these and other factors may cause financials results to fluctuate from one financial quarter to another.
 Statements made herein are as of the date of this presentation and should not be relied upon as of any subsequent date. The
 Company cautions not to place undue reliance on such statements. Unless otherwise required by applicable law, we do not
 undertake, and we specifically disclaim any obligation, to update any forward-looking statements to reflect occurrences,
 developments, unanticipated events or circumstances after the date of such statement. You should carefully review the risks and
 uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange
 Commission.
3
 
 
 
Recent Progress: 1Q13
4
• Continued steady revenue growth
 – Fiber revenues grew 31.3% to $5.3
 million
 – Total revenues were relatively flat at
 $14.9 million
• EBITDAS grew 24.3% to $3.4 million
• 1Q13: Signed first customer in
 Hammond, LA
• 943 customers added in 1Q13
 
 
 
 
2013
2012
Revenues
 Services on FTTP Network
 Growth Rate
$ 5,346
31.3%
$ 4,073
 
 Leased loop services &other
 Growth Rate
 $ 9,590
-11.6%
$ 10,851
 
Total Revenues
Growth Rate
$ 14,936
--
$ 14,923
 
Expenses
 Cost of Services
 % of Sales
6,640
44.5%
7,123
47.7%
 SG&A Expenses
 % of Sales
4,987
33.4%
5,137
34.4%
 Financing expense, net
1,202
1,442
Total Expenses
% of Sales
14,704
98.4%
15,434
103.4%
Net Income (loss)
187
(339)
Basic & diluted income (loss) per share
$ 0.00
$ (0.01)
Basic & diluted weighted averaged
number of shares
41,186,596
41,186,596
EBITDAS
$ 3,362
$ 2,705
% of sales
22.5%
18.1%
Income Statement
(in thousands, except per share data)
Quarter Ended March 31,
5
 
 
 
Balance Sheet Highlights
6
 
As of 3/31/13
As of 12/31/12
Current Assets
 
 
 Cash
$ 6,873
$ 3,909
 Accounts receivable, net
5,438
5,157
 Prepaid expenses and other receivables
3,495
3,809
 Total Current Assets
16,850
13,912
Fixed Assets, Net
94,297
89,468
Total Assets
$ 117,743
$ 108,483
Current Liabilities
 
 
 Short-term bank credit and current
 maturities of notes payable
3,001
2,542
 Trade payables
13,016
8,499
 Other liabilities and accrued expenses
4,779
5,069
 Current maturities of bonds
3,907
3,627
Total Current Liabilities
25,077
20,161
 Notes Payable to the US Department of Agriculture,
 Net of Current Maturities
39,252
35,520
 Notes Payable, Net of Current Maturities
15,614
14,411
 Bonds Payable, Net of Current Maturities
7,277
7,027
 Other Long-Term Liabilities
649
1,680
Total Liabilities
90,099
81,079
Total Stockholders’ Equity
27,644
27,404
(in thousands)
 
 
 
Organic FTTP Growth
 
 
 
Fiber Metrics
 As of March 31, 2013:
 –Total Fiber Passings: 45,179
 –Total Fiber Customers:   10,403
 • Business Fiber Customers:  2,717
 • Residential Fiber Customers:  7,686
 –Fiber ARPU: $177
 • Fiber ARPU for Business: $390
 • Fiber ARPU for Residential: $102
 –Churn:
 • Fiber Avg. Churn: 0.9%
 – Fiber Business Churn: 0.4%
 – Fiber Residential Churn: 1.0%
8
 
 
 
9
Connected First Fiber Customer in Louisiana
Connected first FTTP customer in Hammond, Louisiana
•In April, we connected our first customer in Hammond, Louisiana
•When completed, the NTS fiber network in Louisiana is expected to be
approximately 11,500 passings, bringing the Company’s total FTTP passings
to more than 50,000
•Historically seen strong adoption rates in new markets for our high speed
triple play offering
 
 
 
COVERAGE MAP
10
 
 
 
COVERAGE MAP
Plainview
Iowa Park
Littlefield
Levelland
Smyer
Burkburnett
Lamesa
Ropesville
Wilson
Brownfield
Meadow
Hale Center
Abernathy
Lubbock
New Deal
Whitharral
Wolffort
h
11
 
 
 
Tickfaw
Independence
Ponchatoula
Pine Grove
Natalbany
Franklinton
Montpelier
Amite
Hammond
COVERAGE MAP
● = Pre-PRIDE FTTP buildout
○ = 2011 FTTP buildout
● = 2012 FTTP buildout
● = 2013 FTTP buildout
● = Smart Build network
12
 
 
 
Macro Trends in Our Favor and
Strategy Going Forward
13
Macro Trends:
•Secondary market broadband is a long-term growing opportunity
•Increasing need for bandwidth
•Growing shift to Internet TV
Strategy:
•Drive FTTP growth
•Convert passings to customers to drive high margin FTTP growth
•Selectively evaluate “smart builds”
•Continue to aggressively manage costs
 
 
 
14
Q & A
Thank You