Deltacom Debt

Deltacom canceled its agent channel in December, which usually signals trouble. Yep.

"Deltacom told the SEC on Feb. 1 it expects to report losses of $11 million for 2009. That sounds like a lot for a smaller service provider until 2008 and 2007 results come into the picture. For 2008, Deltacom recorded a net loss of $22.9 million; 2007 ended with net losses of $177 million. Deltacom, then, is forecasting some of its lowest losses in years, and more free cash flow than it’s had in some time. At the close of 2008, the CLEC had $19.3 million in cash. It disclosed to the SEC that, on an unofficial basis, it should have $31 million in free cash flow for year-end 2009." [Phone+]

• total operating revenues of approximately $469 million;
• revenue in 2008 was $ 497M
• total core retail revenue is $267M for 2009;
• total core wholesale revenue in 2009 is $49M;
• total enterprise revenue is $35M
• the rest of the revenue is non-core and equipment sales ($118M)
• churn is 1.6% on UNE and 2.1% on resale
• wholesale revenue has declined 4-6% annually for the last 3 years
• plans to refinance $325 million in debt.

Facts and figures from SEC filing on Y! Retail business voice lines in service(1)

• UNE-T and UNE lines(2) 367,403
• Resale and commercial agreement lines(3) 51,602
• Total retail business voice lines in service 419,005
• Wholesale voice lines in service(4) 8,004
• Total business voice lines in service(5) 427,009

(1) Lines in service includes only voice lines in service. Conversion of data services provided to customers to a voice line equivalent is excluded. (2) Facilities-based service offering in which ITC^DeltaCom provides local service through the Company's owned and operated switching facilities. (3) Represent voice lines for local and mobile services provided under commercial agreements and by reselling incumbent local exchange carrier tariff offerings. (4) Represents primary rate interface circuits provided as part of the Company's local interconnection services for Internet service providers. (5) Reported net of lines disconnected or canceled. There is talk (over at Telecom Ramblings) that Deltacom is prepping to sell.