Cavalier Telephone Announces Impressive Fourth Quarter Performance and 2004 Year End Results

Cavalier Telephone Announces Impressive Fourth Quarter Performance and 2004 Year End Results

RICHMOND, Va., Feb. 1 /PRNewswire/ -- Cavalier Telephone, a leading provider of integrated local, long-distance, internet and data communication services in the Mid-Atlantic region, announced today revenue results for the fourth quarter ending December 31, 2004 was $60.0 million, a 7% increase over the previous quarter. Positive fourth quarter earnings before interest, taxes, depreciation and amortization (EBITDA) reached $22.8 million, up 102% from the same quarter last year.

Cavalier also announced that 2004 revenue was $217.0M versus $185.7M for 2003, resulting in a 17% growth. Positive 2004 earnings before interest, taxes, depreciation and amortization (EBITDA) reached $51.2 million, up 57% from 2003. Cavalier also announced a positive net income of $11.3M for 2004, reaching a milestone that few others in the Competitive Local Exchange Carrier (CLEC) space have met.

"Our results are a very strong indication of Cavalier's ability to execute its business model. Our fast finish in the fourth quarter also helps position us for continued growth in 2005," commented David Whitt, Chief Financial Officer for Cavalier. "Our financial performance during the fourth quarter of 2004 reached unprecedented levels in many key areas including revenue, operating cash flow as well as net income. Cavalier is proud of all its financial results, but especially proud to be one of the few net income positive CLECs in the country."

Within its business services segment, Cavalier experienced a 22% increase in revenue during 2004. This increase was led by impressive growth within its data services and wholesale segments. Within its residential services segment, Cavalier's revenue increased 30% during 2004. High speed DSL Internet access grew at an impressive 63% rate while local access lines grew by 32% during 2004.

Brad Evans, Chairman and CEO, commenting on the results for the year stated, "Cavalier continues to demonstrate to its customers, its investors and its communities that we are committed to delivering industry leading products, results and employee growth. Moving into 2005, Cavalier will continue investing in the company to better serve all customer segments."

Cavalier Telephone is a facilities-based, full-service local telephone company (CLEC) offering the latest in advanced telecommunications products, including advanced telephone features and high-speed Internet access for business and residential customers. Cavalier Telephone currently services over 30,000 business and 150,000 residential customers in Richmond, Hampton Roads, Northern Virginia, Maryland, Philadelphia, Delaware, Southern New Jersey, and the District of Columbia. For additional information regarding Cavalier Telephone, visit the company's website at http://www.cavtel.com/ or contact Andy Lobred at 804-422-4100.


Source: Cavalier Telephone

CONTACT: Andy Lobred of Cavalier Telephone, +1-804-422-4100, or
alobred@cavtel.com

Web site: http://www.cavtel.com/


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