Press release

LICT Corporation Reports First Quarter Results

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LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT)
reports financial results for the quarter ending March 31, 2019.

FIRST QUARTER RESULTS – In 2019, LICT’s reported first quarter revenues
increased $1.4 million to $28.6 million compared to $27.2 million for
the corresponding quarter in 2018. Reported EBITDA was $13.5 million in
the first quarter of 2019 as compared to $13.0 million in the first
quarter of 2018.

Non-regulated revenues gained 9.8%, to $13.4 million from the prior
year’s $12.2 million due to increased broadband and competitive local
exchange carrier (“CLEC”) revenues. Regulated revenues increased by
1.7%, to $15.2 million in the first quarter of 2019 from the prior
year’s $15.0 million. Non-regulated EBITDA, including affiliate
distributions, rose 9.0% to $6.0 million, from $5.5 million, while
regulated EBITDA was unchanged at $7.5 million.

EARNINGS PER SHARE – Diluted earnings per share during the first quarter
were $266 per share in 2019 as compared to $235 per share in 2018.
2019’s earnings per share were $358 after including the final
non-recurring contingent gain stemming from the sale of an investment by
a minority interest we own. Shares outstanding at March 31, 2019 were
19,704 versus 19,931 at December 31, 2018.

January 1, 2017, ten of LICT’s rural telephone companies elected to
participate in the Federal Communications Commission’s (FCC) A-CAM
program. The A-CAM program is designed to increase speed and expand the
deployment of broadband capabilities throughout the nation’s 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. Funds from the 2017 increase, $2.9
million, and the first half of 2018, $1.5 million, were both received in
the third quarter of 2018, which is when the Company recognized those

On February 25, 2019, the FCC again expanded the A-CAM program for those
companies who support was initially capped and offered LICT companies
$4.6 million in annual A-CAM funding, which is retroactive to January 1,
2019. With this latest increase, these capped companies have now been
offered the fully funded support contemplated by the initial A-CAM
program. In addition, the FCC extended the A-CAM annual support
payments, for all A-CAM, capped and uncapped, for two additional years
to December 31, 2028. Acceptance of these additions requires the
companies to provide a threshold of speed to a greater number of
locations. The Company’s subsidiaries have accepted this A-CAM expansion
program and are expecting to receive the year to date incremental
funding in the second quarter of 2019, when the revenue will be
recognized in the statement of operations.

FULL YEAR RESULTS – The company is estimating for 2019 full year
revenues around $121 million, and EBITDA approximately at $59 million;
these amounts include the $4.6 million additional A-CAM funding that was
discussed above.

Company adopted a Shareholder Designated Charitable Contribution
Program. Under the Program, all registered shareholders are eligible to
designate charities and the company will a make a contribution to that
charity. In 2016, 2017 and 2018, the company made $100 per share
contribution son behalf of its shareholders to their designated
charities. The LICT Board of Directors approved the 2019 contribution,
also at $100 per share, in December 2018, and the contributions were
distributed to the charities in the first quarter of 2019.

CEO SEARCH – As previously announced, we are reviewing candidates to
succeed Mario J. Gabelli as Chief Executive Officer of LICT. A CEO
candidate should have knowledge of broadband and, in particular, to
serve our rural communities, as well as opportunities to serve colleges,
universities, hospitals, and small businesses. Mr. Gabelli will continue
to serve as Executive Chairman upon the completion of the search.

More importantly, we note that Robert E. Dolan our Executive Vice
President and Chief Financial Officer of 30 years, is retiring after our
second quarter, but currently plans to remain on our Board of Directors.

FCC SPECTRUM AUCTIONS – LICT Wireless Broadband Company, LLC (“LICT
Wireless”), a wholly owned subsidiary of the company, is participating
in two ongoing FCC auctions for spectrum, Auction 101 – 28 GHz and
Auction 102 – 24 GHz. These spectrum bands are designated to be used for
provision of 5G wireless services. Auction 101 began on November 14,
2018 and ended on January 28, 2019 and Auction 102 began on March 14,
2019. Commensurate with previous spectrum auctions, LICT made upfront
deposits to participate in these Auctions. FCC rules restrict
information that bidders may disclose about their participation in these
Auctions, including the amount of their upfront payment and any licenses
acquired in Auction 101 until Auction 102 is completed.

GROWING THE COMPANY – The Board of Directors and management have
implemented measures which have improved liquidity and reduced the
Company’s debt position. At this time, the Board continues to
re-evaluate its acquisition activity and related refinancing

CAPITAL EXPENDITURES – In the first quarter of 2019, capital
expenditures were $4.8 million, of which $2.8 million was for
non-regulated activities and $2.0 million for regulated activities. In
order to expand the Company’s non-regulated fiber initiatives and
provide a high level of broadband to our customers in the rural areas of
the United States, our current plan calls for capital expenditures of
$23 million in 2019 about the same as 2018. This capital enables us to
offer enhanced broadband speeds and will increase the overall fiber
route miles in our network. As of March 31, 2019, LICT operations
deployed 4,697 miles of fiber optic cable, 11,837 miles of copper cable,
and 704 miles of coaxial cable.

SHARE REPURCHASES – During the three months ended March 31, 2019, the
Company repurchased 227 shares for $3.4 million, with an average price
of $14,960 per share. As of March 31, 2019, 19,704 shares were

OPERATING STATISTICS – As of March 31, 2019, the Company’s DSL
penetration in its franchised telephone service territories, based on
its total Incumbent Local Exchange Carrier (“ILEC”) voice lines, was
81.1%, as compared to 80.2% at December 31, 2018. Our summary operating
statistics are as follows:

      March 31,             Percent

December 31,

Increase Increase
2019     2018     (Decrease)     (Decrease)
Broadband lines 34,263     33,659     604     1.8%
Voice Lines
ILEC 26,091 26,276 (185) (0.7%)
CLEC 7,548     7,471     77     1.0%
Total 33,639     33,747     (108)     (0.3%)
Video Subscribers 5,516     5,669     (153)     (2.7%)
Revenue Generating Units 73,418     73,075     343     0.5%

This release contains certain 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,
including without limitation anticipated financial results, financing,
capital expenditures and corporate transactions. It should be recognized
that such information is based upon certain assumptions, projections and
forecasts, including without limitation, business conditions and
financial markets, regulatory and other approvals, and the cautionary
statements set forth in documents filed by LICT on its website,
As a result, there can be no assurance that any possible transactions
will be accomplished or be successful, or that financial targets will be
met. Such forward-looking information is subject to uncertainties, risks
and inaccuracies, which could be material.

LICT Corporation is a holding company with subsidiaries in broadband and
other telecommunications services that actively seeks acquisitions,
principally in its existing business areas.

LICT Corporation is listed on the OTC Pink® under the symbol
LICT. For further information visit our website at




Exhibit A

Statements of Operations and Balance Sheet Data

Page 1 of 2

(In Thousands, Except Per Share Data)    
Three Months Ended
March 31,
2019     2018
Revenues $28,605 $27,168
Cost and Expenses:
Cost of revenue, excluding depreciation 12,784 11,933
Selling, general and administration 2,906 2,799
Corporate Office Expenses 1,022 982
Depreciation and amortization 4,978     5,064
Total Costs and Expenses 21,690     20,778
Operating profit 6,915 6,390
Other Income (Expense)
Investment income 174 283
Interest expense (432) (493)
Equity in earnings of affiliated companies 503 345
Other 2,493     19
2,738     154
Income Before Income Tax Provision 9,653 6,544
Provision for Income Taxes (2,549)     (1,723)
Net Income $7,104     $4,821
Capital Expenditures $4,834 $5,089
Weighted Average Shares:
Basic 19,765 20,459
Diluted 19,800 20,483
Actual shares outstanding at end of period 19,704 20,427
Earnings Per Share:
Basic Net Income $359.42 $235.64
Dilutive Earnings Per Share $358.79 $235.37
Dilutive Earnings Per Share by Component:
On-going operations $266.11 $235.37
Gain on sale of an investment by a minority interest 92.68    
Reported $358.79     $235.37
See EBITDA on page 2
LICT Corporation Exhibit A
Statements of Operations and Selected Balance Sheet Data-Continued Page 2 of 2

(In Thousands, Except Per Share Data)



Mar. 31,     Dec. 31,
2019     2018
Cash and Cash Equivalents $8,896 $7,732
Other short-term investments 16,000 20,000
Note receivable 2,850 2,850
Long-Term Debt (including current portion) 24,676 30,976

Liabilities, including taxes, other than debt

$32,214 $33,747
Shareholders’ Equity $143,414 $140,369
Shares Outstanding at Date 19,704 19,931

EBITDA is an established measure of operating
performance and liquidity that is commonly reported and widely used by
analysts, investors, and other interested parties in the
telecommunications industry because it eliminates many differences in
financial, capitalization, and tax structures, as well as non-cash and
non-operating charges to earnings. We believe that EBITDA trends are a
valuable indicator of whether our operations are able to produce
sufficient operating cash flow to fund working capital needs, service
debt obligations, and fund capital expenditures.

EBITDA equals net income (loss), before interest expense, income tax
expense (benefit), depreciation and amortization expense, investment
income, equity in earnings of affiliated companies, gain (loss) on sale
of investment, impairment charges, and net income from discontinued
operations. EBITDA also now includes the cash distributions we receive
from the equity in earnings of affiliated companies. Although we do not
have majority voting control of such companies, we have the ability to
significantly influence financial and accounting policies. The inclusion
of cash received from equity companies is a change from past practice.

Three Months Ended
March 31,
2019     2018
Operating subsidiaries $12,915 $12,436
Cash received from equity affiliates 563     538
On-going operating subsidiaries 13,478 12,974
Corporate Office Expense (1,022)     (982)
EBITDA 12,456 11,992
Depreciation and amortization (4,978) (5,064)
Add out of period items
Deduct cash received from equity affiliates (563)     (538)
Operating profit $6,915     $6,390

Release 19-3