Operational and financial conclusion: Otelco Inc (NASDAQ: OTEL)


120
120 points

On Tuesday, Otelco Inc (NASDAQ: OTEL) closed with moved up of 1.11% to $11.88. Recent traded volume was 408 shares versus to it an average volume of 15.4K shares. The company holds 3.41M shares outstanding and market cap of $40.51M. The stock day range was recorded between a low of $11.8 and a high $11.92.

Otelco Inc (NASDAQ: OTEL), recently reported operational and financial results for its second quarter ended June 30, 2019.

The Company stated revenue of $15.7M, a 7.3% decrease from the second quarter 2018. These results were in line with revenue stated for first quarter 2019. Net income reduced 41.0% to $1.7M in second quarter 2019, contrast to $2.9M in second quarter 2018. Cost of services was unchanged in 2019 from 2018, while selling, general and administrative expense increased 5.3% over 2018, including the expense associated with the development of the Company’s long-term network design plans.

Basic net income was $0.50 per share for second quarter 2019, contrast to $0.86 per share in the same period of 2018. Consolidated EBITDA (as defined below) was $5.7M for second quarter 2019, contrast to $7.1M for the same period in the previous year.

The Company made its planned$1.1M principal payment on its credit contract with CoBank in second quarter 2019, reducing the loan balance to $72.4M. As of June 30, 2019, the ratio of debt, net of cash, to Consolidated EBITDA was 2.74, reflecting the mandatory payments and voluntary prepayments made on the debt since its inception in November 2017. During second quarter 2019, capital investment increased to $2.9M, contrast to $2.1M in the same period of 2018. During 2019, the Company expects to invest a total of $11.5M to upgrade and maintain its network.

The average true range of Otelco Inc.’s (OTEL) is recorded at 0.28 and the relative strength index of the stock stands 56.88. The stock price is going above to its 52 week low with 8.00% and lagging behind from its 52 week high with -35.13%. A look on the firm performance, its monthly performance is 0.76% and a quarterly performance of -19.73%. The stock price is trading downbeat from its 200 days moving average with -21.14% and down from 50 days moving average with -1.18%.


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