OTELCO (NASDAQ:OTT)

ONEONTA, Ala.--(BUSINESS WIRE)--Otelco Inc. (NASDAQ: OTT), a wireline telecommunications services provider in Alabama, Maine, Massachusetts, Missouri, New Hampshire, Vermont and West Virginia, today announced results for its first quarter ended March 31, 2013. Key highlights for Otelco include:

�The restructuring process continues to proceed as planned�

• Total revenues of $21.0 million for first quarter 2013.
• Operating income of $4.9 million for first quarter 2013.
• Adjusted EBITDA (as defined below) of $8.8 million for first quarter 2013.

�First quarter produced financial results that met our expectations,� said Mike Weaver, President and Chief Executive Officer of Otelco. �We generated Adjusted EBITDA of $8.8 million, incurred and paid $1.4 million in restructuring expenses related to the bankruptcy filing and still increased our cash balance by $1.8 million. We invested $0.8 million in capital equipment in the first quarter and expect to increase our capital expenditures over the course of the year for a total investment of approximately $7.0 million for 2013. We ended the quarter with $34.3 million in cash on hand.

�The restructuring process continues to proceed as planned,� added Weaver. �We were pleased with the voting results of the solicitation, having received overwhelming support for our plan from both our senior lenders and our subordinated note holders. Yesterday, the Bankruptcy Court entered an order to confirm our plan. Consistent with the terms of our plan of reorganization and a Court order we obtained in March 2013, our vendors and suppliers have been paid in full for all undisputed invoices. The next major steps in the process include completing the amendment and extension of our senior credit facility; obtaining FCC approval for licenses utilized by one of our subsidiaries; and the issuance of the new Class A common stock in exchange for the senior subordinated notes. In accordance with the plan, the existing Class A common stock will be extinguished.

�Given the progress we have made on the balance sheet restructuring to date and the recent confirmation of our Plan, we expect to exit bankruptcy in the near future,� Weaver concluded.