Hawaiian Telcom posts $32.2M quarterly loss
Executives see some financial bright spots despite "challenges"
The horizon is starting to look more stable for Hawaiian Telcom Communications Inc., which yesterday reported lower second-quarter net losses this year than the same quarter last year.
Net losses for the second quarter of 2006 were $32.2 million, down from the net losses of $52.2 million the second quarter of last year. In the first quarter this year, net losses were $38.6 million. The net figures, the company said, were not adjusted for noncash purchase accounting items.
Hawaiian Telcom also reported operating revenue to $147.1 million in the second quarter of this year, a dip from $150.5 million a year earlier.
The company had operating revenue of $144.9 million in the first quarter.
The operating revenue figures were adjusted for noncash purchase accounting items, according to Hawaiian Telcom.
The company's number of high-speed Internet connections was up 6.8 percent to 89,253 compared to the previous quarter, according to Hawaiian Telcom, while the number of traditional telephone land lines dropped 2 percent to 626,367. The company had 738,900 land-line subscribers in 2002.
Transition costs, which include a summer billing snafu, amounted to $6.6 million in the second quarter. Hundreds of customers received a monthly statement asking for twice the amount owed.
Hawaiian Telcom in June hired 120 additional workers to field the flurry of billing inquiries from customers.
"The second quarter marked the true beginning of our existence as a standalone company, as we took full control of the network and began operating on our own new financial and operational support systems," said Michael Ruley, Hawaiian Telcom's CEO. "The transition from our predecessor has presented many challenges for our company; some expected and others unexpected, but we remain committed to our goal of bringing higher quality customer service and exciting new products and services to the state of Hawaii."
Ruley added that the second-quarter results were in line with Hawaiian Telcom's expectations, other than several transition-related disruptions that caused "higher-than-anticipated costs."
The Carlyle Group of Washington, D.C., acquired Verizon Communications' Hawaii assets last year for $1.6 billion. Hawaiian Telcom was formerly known as Verizon Hawaii.