Inteliquent Pulls Back, Plans One Time Dividend Payment

August 7th, 2012 by · 3 Comments

Inteliquent (NASDAQ:IQNT, news, filings) saw fewer voice minutes on its network in Q2, resulting in numbers that missed expectations and a reduction in full year guidance.  In addition, the company says it has been evaluating strategic alternatives, and is now planning a special one-time dividend to return some cash to shareholders as well as a stock buyback.

($ in millions) Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 FY12
guidance
Revenue 65.1 67.3 69.5 70.7 68.3 280-290
Adj. EBITDA 22.8 21.0 22.1 21.3 18.5 74-82
Adj. EBITDA Margin 35.0% 31.2% 31.7% 30.2% 27.1%
Earnings per share 0.20  0.18 0.19 0.21 0.12
Billed Minutes 32.5 32.9 33.3 34.4 32.8 133-138
Capex 7.2  6.8 2.4 9.1 5.7 25-30

Voice minutes were down sequentially, although still up slightly over last year.  That triggered reduced guidance for revenues, EBITDA, billed minutes, and capex for the full year.  IP and Ethernet appear to have been relatively steady by comparison, although I will look for more details on the CC about revenues from here from all products.

Inteliquent's planned one-time dividend is planned for this fall and would be between $4.80 and $5.65 per share.  That's $150-180M, more than their cash on hand so clearly it depends on making a balance sheet move first of $75-100M.  The company has also put a $50M stock buyback program in place.

Despite this quarter's apparent setback, it's important to remember that they remain profitable and generate quite a bit of cash.

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Categories: Financials · Internet Backbones · VoIP

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