As our valued partner, we want to be sure you don't miss Deltacom's latest press release announcing our 2008 4th quarter and year-end operating and financial results. A summary overview of those financial results is also attached.
Deltacom had a record year in 2008, with continued customer growth, investments in network enhancements and new products, significant cash flow generation, and a strong balance sheet. We are making considerable investments - in our network, our back-office, and customer service initiatives - to deliver long-term value and efficiencies to our customers and to you. Some highlights of our 2008 results include:
- Record financial performance - ~$500M in revenue and $84M in adjusted EBITDA*, the highest in Deltacom's history, due to network and back office investments and optimization.
- 9% growth of core retail facilities-based voice lines (last 12 months) - new customers recognize significant value in Deltacom helping them efficiently manage their telecom needs.
- Operating and financial momentum - 2008 results compared to 2007 include 7% growth in core local and data revenues, a 9% growth in adjusted EBITDA, and an increase in our cash flow provided by operating activities from $23M in 2007 to $63M in 2008.
- $20M self-funded network upgrade - network upgrade initiative largely complete, providing customers higher capacity services, increased service availability, and greater on-net reach. $17M was invested in 2008, with the remainder to be invested during 2009.
- Strong liquidity position enabled investments in network and new products - our adjusted unlevered free cash flow of $19M included the investment of $17M in our network upgrade initiative. Excluding that $17M network investment, adjusted unlevered free cash flow would have been $36M in 2008 compared to $27M in 2007.
- Strong balance sheet and committed investors - July 2007 refinancing reduced debt by more than $50M and annual interest expense by $25M, and was led by long-term investors on the basis of the company's strong operating performance.