Refreshed Analysis Indicates 67% Increase in Market Opportunity from Lumos Network Expansion Markets

WAYNESBORO, Va.--()--Lumos Networks Corp. (“Lumos Networks”, “Lumos” or the “Company”) (Nasdaq: LMOS), a leading fiber-based service provider in the Mid-Atlantic region, today announced the results of its recently completed refreshed market analysis.

The study, performed in conjunction with a leading 3rd party fiber research firm, indicates that the company’s 822 mile network expansion into the metro markets of Richmond and Norfolk/Hampton Roads, Virginia, increases the Company’s Enterprise opportunity, within one mile of the Company’s fiber network by 67%, or $221 million, as compared to its Core Markets.

Following the completion of its most recent market analysis completed in November of 2014, in conjunction with the same 3rd party firm, the Company had previously estimated that its expansion markets would increase its total addressable market by $135 million, or 60%.

 

Current Market Analysis (July ’16)

       

Enterprise Addressable Mkt

Core Markets $329m

Expansion Markets

$221m (67% increase vs Core)

Total Market $550m (total up 52%)
 

Prior Market Analysis (Nov ’14)

Enterprise Addressable Mkt

Core Markets $227m

Expansion Markets

$135m (60% increase vs Core)

Total Market $362m
 

“The results of our refreshed market analysis give us increased confidence in the significant Enterprise revenue upside from our recently completed expansion markets of Richmond and Norfolk/Hampton Roads,” said Timothy G. Biltz, CEO of Lumos Networks. “The significant increase in our Addressable Market, in both our Expansion and Core markets, highlights the strategic placement of the approximately 1,400 fiber route miles we have built over that period.”

Mr. Biltz continued, “Additionally, the study confirms that 50-55% of our Addressable Market is tied to 'Large Locals', which are the key focus verticals in our footprint. Large Locals, which are customers where the preponderance of their locations are in our footprint, and primarily include healthcare, finance, government, education, media, professional services and manufacturing enterprises, represent the foundation for our direct Enterprise efforts.”

About Lumos Networks

Lumos Networks is a leading fiber-based service provider in the Mid-Atlantic region serving Carrier, Enterprise and Data Center customers, offering end-to-end connectivity in 24 markets in Virginia, Pennsylvania, West Virginia, Maryland, Ohio and Kentucky. With a fiber network of 8,985 fiber route miles and more than 436,000 total fiber strand miles, Lumos Networks connects 1,295 unique Fiber to the Cell sites, 1,636 total FTTC connections, 36 data centers, including 7 company owned co-location facilities, 1,922 on-net buildings and over 3,200 total on-net locations. In 2015, Lumos Networks generated over $114 million in Data revenue over our fiber network. Detailed information about Lumos Networks is available at www.lumosnetworks.com.

SPECIAL NOTE FROM THE COMPANY REGARDING FORWARD-LOOKING STATEMENTS

Any statements contained in this presentation that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. The words “anticipates,” “believes,” “expects,” “intends,” “plans,” “estimates,” “targets,” “projects,” “should,” “may,” “will” and similar words and expressions are intended to identify forward-looking statements. Such forward-looking statements reflect, among other things, our current expectations, plans and strategies, and anticipated financial results, all of which are subject to known and unknown risks, uncertainties and factors that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements. Many of these risks are beyond our ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the date they are made. We do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise. Important factors with respect to any such forward-looking statements, including certain risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, include, but are not limited to: rapid development and intense competition with resulting pricing pressure in the telecommunications and high speed data transport industry; our ability to grow our data business on an organic or inorganic basis in order to offset expected revenue declines in legacy voice and access products; our ability to obtain new carrier contracts or expand services under existing carrier contracts at competitive pricing levels to offset churn and achieve revenue growth from our carrier businesses; our ability to divest our legacy business on a timely basis; our ability to effectively allocate capital and timely implement network expansion plans necessary to accommodate organic growth initiatives; our ability to complete customer installations in a timely manner; adverse economic conditions; operating and financial restrictions imposed by our senior credit facility and our unsecured debt obligations; our cash and capital requirements; our ability to maintain and enhance our network; the potential to experience a high rate of customer turnover; federal and state regulatory fees, requirements and developments; our reliance on certain suppliers and vendors; and other unforeseen difficulties that may occur. These risks and uncertainties are not intended to represent a complete list of all risks and uncertainties inherent in our business, and should be read in conjunction with the more detailed cautionary statements and risk factors included in our SEC filings, including our Annual Report filed on Form 10-K.

Contacts

Lumos Networks Corp.
Will Davis
Senior Vice President of Marketing and Investor Relations
Chief of Staff
(c) 917-519-6994
davisw@lumosnet.com

Contacts

Lumos Networks Corp.
Will Davis
Senior Vice President of Marketing and Investor Relations
Chief of Staff
(c) 917-519-6994
davisw@lumosnet.com