As the recent controversial offer by Icahn for the remainder of XO Holdings (news, filings) that he doesn't already own hangs in the balance, the company waited (as it always does) until the very last minute to file its Q4 anf FY2010 numbers. The company had forecast some upbeat second half results back in October, and by and large they managed to fulfill those promises. Revenues of $390.3M were up sequentially again, and EBITDA margins remained above 15%. Here's a quick table summarizing their results:
|$ in millions||Q3/09||Q4/09||Q1/10||Q2/10||Q3/10||Q4/10|
|Cost of Revenue||217.7||212.7||208.5||218.9||218.3||223.7|
|Adj. EBITDA margin||11.5%||11.5%||8.2%||10.6%||15.8%||15.1%|
Revenue & EBITDA: Broadband revenue continued to surge powerfully, up 3.7% sequentially. That was offset by continued expected weakness in Integrated Voice revenue, which has been declining at about a 20% annualized rate. EBITDA margins remained above 15%, which may not be a high bar, but it is still well above the company's historical levels of about 10%.
Cash & Capex: XO spent just $39.9M on capital expenditures, it's lowest quarterly number in quite some time. Not that tigher purse strings should surprise anyone. They had intended to raise money through a rights offering over the winter, but of course it never happened, and their cash balance remains below $100M, finishing the year at about $69.6M. They need to raise money. But we knew that.
LMDS Spectrum: If there was any doubt as to the potential for their LMDS spectrum, XO also wrote off another $20M in value it had ascribed to those licenses, leaving just $7.5M of it on their balance sheet.
Icahn: I've actually quite surprised there has been no word yet from the Board's special committee on the most recent offer by Icahn-controlled entities to acquire the rest of the common stock he doesn't already own. It's not like there isn't an obvious answer here. But we did get a new datapoint from the 10-K: Mr. First resigned from the special committee on 3/5 - no word on why although his ties to Icahn cast doubt on his independence. And then there were two.
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