LICT Corporation Third Quarter Report

December 2, 2011

LICT Corporation (OTCPink: LICT.PK) reported revenues for its third quarter ended September 30, 2011 increased 2.5% to $23.28 million.  Net income for the period was up 4.5% to $2.1 million or $88.31 per share.  While the company saw increased operating and depreciation expenses for the period, the bottom line benefited from lower interest expense and higher equity in earnings of affiliated companies.

For the first nine months of 2011, revenue slipped 1.6% to $68.1 million.  Net income for the period dropped 15.3% to $6 million or $250.72 per share.  The company’s lower revenue was compounded in the period by higher operating expenses and lower investment income. This was partially offset by lower interest and corporate expenses as well as higher equity in earnings of affiliated companies.

Over the last year, the company has been reducing its net debt and increasing shareholders’ equity.  At the end of the third quarter, the company had $11.5 million in cash/cash equivalents, total assets of $202.3 million and total liabilities of $132.2 million.  The company’s property, plant and equipment has been substantially depreciated, but the asset number also includes $66.2 million in goodwill and other intangibles.

Last month LICT announced the sale of its remaining 700 MHz licenses held by its wholly-owned subsidiary, Lynch 3G Communications.  The company expects the deal to close in the first quarter of 2012 and anticipates the sale price received will be substantially higher than the company’s aggregate cost of $753 thousand.

Source: LICT Corporation

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