North State Reports Third Quarter 2016 Results

HIGH POINT, N.C., Nov. 17, 2016 -- North State, a leading fiber optic network, cloud and IT services provider, announced today its financial results for the third quarter ended September 30, 2016. 

Summary of Selected Financial Data

Quarter Ended September 30, 2016 versus Quarter Ended September 30, 2015

• Consolidated net operating revenue (NOR) of $29.4 million, up 8%.¹
• Total strategic revenue² of $19.9 million, up 16%, and 68% of NOR.¹
• Operating income of $1.9 million, up 5%.
• Net income of $2.3 million, up 15%.
• Earnings per share of $1.04, up 17%.

Nine Months Ended September 30, 2016 versus Nine Months Ended September 30, 2015

• Consolidated NOR of $85.9 million, up 18%.¹
• Total strategic revenue² of $57.0 million, up 33%, and 66% of NOR.¹
• Operating income of $6.1 million, up 27%.
• Net income of $7.1 million, up 11%.
• Earnings per share of $3.13, up 12%.

North State CEO Royster Tucker III commented, “Our growth in strategic revenues continued in the third quarter of 2016 as our investments in fiber and focus on IT services continue to positively impact our business.  Revenue growth continued, with a portion of our growth the result of our acquisition of Stalwart Systems in the middle of last year.  EBITDA was $9.1 million, up 7% from the previous year and earnings were up for the quarter.  66% of our revenues now come from business clients while on the consumer side, average revenue per household was up 8% as more people enjoy our fiber connected gig-a-bit internet offering.”

Mr. Tucker concluded, “We continue to see opportunities for growth as we transition North State into a leading provider of IT security, cloud and managed services for businesses, in addition to our strong fiber-focused product line.  We are excited to take an expanding role in people’s lives and business success as the internet increasingly enables people and businesses look to securely migrate to the cloud and digital platforms.”

For further details on North State’s financial results for the third quarter of 2016, please see the financial tables included in the press release on the company’s website at: Q3 2016 Earnings Report. 

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¹ Largely due to the acquisition of Stalwart Systems in July of 2015 and revenue growth across all of our strategic services. 
² Total strategic revenue is strategic Internet and communications revenue and all IT services and hardware revenue, for both business and consumer segments.

About North State
North State (OTC:NORSA) (OTC:NORSB) is a technology company focused on inspiring the Internet-driven lifestyle through high touch experiences.  Its fiber-delivered, ultrafast Internet and Internet-driven applications enable residential customers and businesses to efficiently and securely take advantage of the Internet.  Through its wholly owned subsidiaries, Data Chambers and Stalwart Systems, North State provides best-in-class data center colocation, customized cloud and IT solutions, managed disaster recovery services, managed security and unified communications.  For more information, visit northstate.net.

Contacts: 
North State                
Andrew Stevenson
336-886-3801
[email protected]

LHA
Harriet Fried, SVP
212-838-3777
[email protected]