LICT Corporation (LICT or the Company; OTC Pink: LICT) is announcing that the Companys eligible subsidiaries have agreed to accept additional funding under the Federal Communications Commissions (FCC) Alternative “ Connect America Cost Model (A-CAM) program in exchange for expanded broadband service to their rural areas.
On January 1, 2017, ten of LICTs rural telephone companies elected to participate in the FCCs A-CAM program. The A-CAM program is designed to increase speed and expand the deployment of broadband capabilities throughout the nations rural areas and replaced two prior Universal Service Fund mechanisms for companies electing A-CAM. During 2018, the FCC expanded the A-CAM program retroactive to January 1, 2017. Accordingly, in 2018, LICT recorded additional A-CAM revenues of $5.8 million, of which $2.9 million related to the year ended December 31, 2017.
On February 25, 2019, the FCC provided for an additional expansion and completion of this phase of the program. Under this expanded program, LICT companies will receive $4.6 million additional A-CAM funds annually, beginning on January 1, 2019, and their revised funding will be extended two years, through 2028, in exchange for the provision of higher broadband speeds to designated locations.
Based upon the acceptance of these offers, the Company is updating its previously announced full year estimates of revenue and EBITDA before corporate expenses, for the year ended December 31, 2019, from $117 million and $54 million respectively, to $121 million and $59 million respectively.
This release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. It should be recognized that such information is based upon assumptions, projections and forecasts which may not prove to be correct or may develop differently from the manner originally expected. Such forward-looking information must be read and interpreted in light of the cautionary statements set forth in documents filed by LICT on its website,www.lictcorp.com.
LICT is a holding company with subsidiaries in telecommunications and multimedia, and actively seeks acquisitions, principally in its existing business areas.
LICT is listed on OTC Pink under the symbol LICT. Its web address is set forth above.
Robert E. Dolan
Executive Vice President and Chief Financial Officer