CFW Operating Revenues Increase 27%

Waynesboro, VA-based CFW Communications Co. posted first quarter 2000 operating revenues of $21.6 million ($17.0 million for 1st quarter 1999) and net income of $0.05 million, or $0.004 per share ($1.3 million, or $0.102 per share for 1st quarter 1999). Operating revenues for the first quarter of 2000 increased 27% to $21.6 million ($17.0 million for 1st quarter of 1999). Operating cash flows (operating income before depreciation and amortization) for Q1 2000 were $8.0 million ($7.5 million for Q1 1999).

Operating revenues for the first quarter of 2000 reflect strong revenue and customer growth associated with expansion of Internet and competitive local telephone (CLEC) services. The increase in operating cash flows reflects the cash flow contributions from Internet acquisitions in the second half of 1999, offset by start-up costs associated with expansion of CLEC services in Virginia and West Virginia.

First quarter of 2000 included the company's share of equity losses from PCS investees of $1.5 million for Virginia PCS Alliance (VA PCS) and $2.1 million for West Virginia PCS Alliance (WV PCS). The Alliances' gross revenues for the first quarter of 2000 were $4.5 million for VA PCS ($2.4 million in 1st quarter of 1999) and $2.6 million for WV PCS ($0.3 million in 1st quarter of 1999). These reflect strong PCS subscriber growth as net subscriber additions in the first quarter of 2000 were 9,700 (3,900 in 1st quarter of 1999 and 10,200 in 4th quarter of 1999 (the strongest seasonal quarter)), exclusive of additions from CFW's VA RSA6 service area.

Digital PCS subscribers were 54,300 at March 31, 2000, an increase of 35,200 from March 31, 1999 and an increase of 11,000 from Dec. 31, 1999. VA PCS and WV PCS digital PCS subscribers were 37,000 and 17,300, respectively, at March 31, 2000, increases of 5,000 and 6,000, respectively from Dec. 31, 2000. Included in the VA PCS subscribers were 14,300 wholesale digital PCS subscribers in our VA RSA6 service area.

Edited by Ellen Jensen