LCI Intl Inc (NYSE:LCI) Q4 net income rises
MCLEAN, Va., Feb 6
For the Three Months For the Year
Ended December 31, Ended December 31,
1996 1995 1996 1995
REVENUES $293,819 $203,643 $1,102,992 $672,851
GROSS MARGIN 124,348 84,310 460,693 276,664
OPERATING INCOME 39,003 25,448 143,459 82,593
NET INCOME 21,743 16,166 74,750 50,797
Accrued preferred divs --- 1,436 2,808 5,748
NET AFTER PFD DIVS 21,743 14,730 71,942 45,049
EPS (a) 0.25 0.19 0.86 0.62
Fully Taxed (40% tax rate)0.23 0.15 0.79 0.49
Recurring Per shr data (b)0.24 0.18 0.85 0.61
Fully Taxed (40% tax rate)0.22 0.14 0.78 0.48
Wgtd avg shrs 87,753 85,627 87,281 82,058
(Amounts in thousands except earnings per share)
(a) Primary and fully diluted EPS were the same in all
periods presented except for the year ended December 31, 1995,
where primary earnings per share was $0.63 based on a primary
weighted average number of shares of 81,030.
(b) Non-recurring income, net in 1996 includes a gain on
the sale of a non-strategic wholly owned subsidiary.
Non-recurring income, net in 1995 includes a recovery related
to the Company's investment in STN Inc. (STN).
LCI International said Thursday its network telecom traffic in the
1996 fourth quarter rose 57 percent from a year earlier, to 2.3
billion minutes.
For the full year, network telecom traffic rose 68 percent to 8.2
billion minutes. The company, a long-distance carrier service, also
said it had entered the local service business and the minutes used by
its local service customers had risen quickly and sharply. "Over a
short period of time, in just five markets, the minutes used by LCI's
local service customers increased dramatically, and we're rapidly
building the infrastructure and services to meet the demand and
opportunities we envision across the country," Chairman and Chief
Executive Officer H. Brian Thompson said. LCI is offering local
telephone service by reselling the services of local exchange
carriers, it said.
Personal Comments regarding LCI
IMHO LCI's stock got unfairly trashed in December when the street
misunderstood the CEO's statement when he said that earnings growth
rate would be somewhere between 30% and 40%. The street interpeted
that as meaning 30% and blew the stock off from $32 to $18 1/2. It
was recently as high as $23 5/8 but once again the price has not been
properly rewarded for the excelent revenue and earnings growth of 64%
and 38% respectively. The stock price actually dropped from its
already oversold level even though the #'s came in at the high end of
analysts' expectations and earnings growth was indeed very near 40%.
IMHO this stock is ready for a move back to the mid to upper 20's VERY
soon. Analysts 12 months estimates are in the mid 30's. That should
be very obtainable with trailing earnings of .86 and a current growth
rate of 38%. The current PE is only 22.9, a very low figure for a
company with this kind of growth.
With a current price of $19 3/4 this stock is a BARGAIN! (IMHO)
Any thoughts?
Gary |
