People In Business NASDAQ 5

USA

Stephen P. McCall starts sixth year as Otelco Chairman 18 June 2018

NEWS BITES - PEOPLE IN BUSINESS

Stephen P. McCall was appointed Chairman of Otelco (NASDAQ:OTEL) five years ago on June 18, 2013. The shares were up from $US9.7 to $US14.6 and the total annualized return to shareholders (TRS) since appointment is 8.6%. The present value of USD1,000 (PV1000) invested on the appointment date is now worth $US1,508, a gain of $US508.

SECTION 1 BIOGRAPHY STEPHEN P. MCCALL, CHAIRMAN

Stephen P. McCall was appointed Chairman of the Board on June 18, 2013. Mr. McCall has served as a director of the Company and its predecessor Rural LEC Acquisition LLC since January 1999 and served as Chairman of the Board of Rural LEC Acquisition LLC until the closing of our initial public offering on December 21, 2004. He has more than 15 years of private equity investing experience focused on growth capital and buyout investments in the telecommunications sector. He founded and is currently a Managing Member of Blackpoint Equity Partners LLC, a private equity investment firm. Prior to founding Blackpoint, he was a General Partner at Seaport Capital, a private equity investment firm, where he was employed from 1997 through 2007. Previously, Mr. McCall worked at Patricof  & Co. Ventures, a private equity investment firm, and Montgomery Securities in the Corporate Finance Department. Mr. McCall is a director of several private companies. In addition, from November 2009 to May 2011, Mr. McCall was a director of Ambassadors International, Inc. and from July 2010 to February 2016, he was a director of Trump Entertainment Resorts, Inc. Mr. McCall's experience in private equity investing and portfolio management, which is focused on the telecommunications industry, provides relevant insight into analyzing potential acquisitions, raising equity, debt financing and advising on Company strategy, making him a valuable asset to the Board and to the compensation committee.

SECTION 2 OTELCO INC. PRICE PERFORMANCE SCORECARD (NASDAQ:OTEL):

2.1 Otelco Inc. is placed 214/2,194 in the BSS News Bites ranking of price performance of NASDAQ stocks in the past year, a percentile ranking of 90.

+ Stephen P. McCall became Chairman of Otelco Inc. on Jun 18,2013. The company's performance, measured in average annualised shareholder returns in the past five years, has been above average in that time - investors have reaped 9% compared to 19% for the NASDAQ-100 Index.

2.2 Moving Annual Return (Trailing 12 months):

Based on a dynamic start date of 4 years ago, the Moving Annual Return has been positive in 2 of the last 4 years. An investment in OTEL a year ago would have produced a return of 84.3%

OTELCloseAnnual Return %
Last Traded Jun 18$US14.6584.3
1 Year ago$US7.95103.8
2 Years ago$US3.90-14.8
3 Years ago$US4.58-7.5

Close 4 years ago $US4.95.

2.3 Present Value of $US1000 invested in the past

The present value of $US1000 invested a year ago is $US1,902

PV$10001-week1-month1-year
OTEL.NASDAQ1,0329861,902
NASDAQ-100 Index1,0151,0441,273

2.4 Trailing Price Change %

1-Year price change of 84.3% for Otelco outperformed the change of 27.0% in the NASDAQ-100 Index for a relative price change of 57.2%.

Price Change %1-Month3-Month1-Year
OTEL0.7-4.284.3
Utility sector-2.3-11.11.6
NASDAQ-100 Index5.12.827.0

SECTION 3 OTELCO INC. FINANCIALS AND GROWTH PERFORMANCE SCORECARD (NASDAQ:OTEL):

3.1 Key Financials (All figures percent)

Operating Margin has improved from 23.1% in 2014 to 25.5% in 2017.

OTELRevenue GrowthEPS GrowthOperating Margin
2017-1.2130.625.5
2016-3.6-30.528.2
2015-2.642.128.6
2014--23.1

3.2 Revenue and Net Profit

In the last 5 years Compound Annual Growth Rate (CAGR) averaged -7.0% for Total Revenue.

DescriptionAnnual ($US M)5-year Avg ($US M)5-year CAGR %
Total Revenue68.771.7-7.0

CAGR = Compound Annual Growth Rate

3.3 Performance (All figures in %)

Net Profit Margin 5-year average is 38.0% and Return on Capital Employed 5-year average is 17.2%.

DescriptionAnnual5-year Avg
EBITDA Margin36.339.9
Operating Profit Margin25.525.7
Net Profit Margin17.738.0
Return on Assets10.522.9
Return on Capital Employed17.017.2

3.4 High Performance Indicators:

DescriptionValueRank In NASDAQ Market
Price/Earnings/Growth0.1In Top 2%
EPS Growth %130.6In Top 9%
Relative Price Change % (1 Year)63.5In Top Quartile
Return on Assets [ROA] %10.5In Top Quartile
Price to Sales0.7In Top Quartile
EBITDA Margin %36.3In Top Quartile
Return on Capital Employed [ROCE] %17In Top Quartile

SECTION 4 OTELCO INC. GLOBAL RANK (NASDAQ:OTEL):

4.1 Global Rank

Global Rank [out of 47,578 stocks]

DescriptionValueRankQuartile
MCap (US$)49.3M27,958Third
Total Assets (US$)114.9M23,660Second
Revenue (US$)68.7M22,297Second
Net Profit (US$)12.1M14,723Second
Net Profit Margin %17.76,764Top
Price Earnings4.21,186Top
PV$1000 (1Year) US$1,9022,296Top
US$ Change (1Year) %98.02,162Top
Rel Strength 6 Mo (US$)838,161Top

SECTION 5 OTHER DIRECTORS OF OTELCO INC.

Robert J. Souza, Chief Executive Officer & President & Director

Stephen P. McCall, Chairman

Curtis L. Garner, Chief Financial Officer & Director & Company Secretary

Howard Haug, Director

Norman C. Frost, Director

Gary L. Sugarman, Director

Brian A. Ross, Independent Director

Edwin D. Tisdale, Senior Vice President

Dennis K. Andrews, Senior Vice President

Jerry C. Boles, Senior Vice President

E. Todd Wessing, Vice President

SECTION 6 OTELCO INC. ACTIVITIES

Otelco Inc. provides telecommunication services to residential and business customers in areas of Alabama, Maine, Massachusetts, Missouri, and West Virginia. The Company provides local telephone, long distance, Internet access, broadband services, and cable television.

SECTION 7 RECENT NEWS ON DIRECTORS

7.1 SHAREHOLDER VALUE ADDED BY DIRECTORS

27 February 2018

Curtis L. Garner starts fifteenth year as Otelco CFO

Curtis L. Garner was appointed CFO of Otelco (NASDAQ:OTEL) fourteen years ago in Feb 2004. In the last 3 years the average annualized return to shareholders was 41.9%. The present value of USD1,000 (PV1000) invested 3 years ago is now $US2,888, a gain of $US1,888.

01 January 2018

Robert J. Souza brings two-bagger value to Otelco

Robert J. Souza was appointed CEO of Otelco (NASDAQ:OTEL) three years ago on January 01, 2015. The present value of USD1,000 (PV1000) invested on the appointment date is $US2,730, for a capital gain of $US1,730. In the same period the shares were up 173% from $US4.9 to $US13.3.

7.2 RECENT REPORTED BUYING

29 May 2018

Otelco director Norman C. Frost buys

Otelco (NASDAQ:OTEL) Director Norman C. Frost bought 1,000 shares worth $US14,485 on May 29. The purchase price was $US14.49. The shares hit a five-day low on the day.

14 May 2018

Otelco director Gary L. Sugarman buys

Otelco (NASDAQ:OTEL) Director Gary L. Sugarman bought 250 shares worth $US3,505 on May 14. The purchase price was $US14.02.

02 April 2018

Otelco director Brian A. Ross buys

Otelco (NASDAQ:OTEL) Independent Director Brian A. Ross bought 165 shares worth $US2,458 on April 02. The purchase price was $US14.90.

27 March 2018

Otelco director Brian A. Ross buys

Otelco (NASDAQ:OTEL) Independent Director Brian A. Ross bought 165 shares worth $US2,520 on March 22. The purchase price was $US15.27.

20 March 2018

Otelco director Howard Haug buys

Otelco (NASDAQ:OTEL) Director Howard Haug bought 655 shares worth $US10,035 on March 20. The purchase price was $US15.32.

15 March 2018

Otelco chairman Stephen P. McCall buys

Otelco (NASDAQ:OTEL) Chairman Stephen P. McCall bought 870 shares worth $US12,998 on March 13. The purchase price was $US14.94.

15 March 2018

Otelco director Gary L. Sugarman buys

Otelco (NASDAQ:OTEL) Director Gary L. Sugarman bought 680 shares worth $US10,018 on March 14. The purchase price was $US14.73. The shares hit a 12-day low on the day.

Source: www.BuySellSignals.com