MachTen Reports Financial Results for the Full Year 2024 & First Quarter of 2025
TRAVERSE CITY, Mich., April 29, 2025 (GLOBE NEWSWIRE) — MachTen, Inc. (OTC: MACT) today announced financial results for the full year ended December 31, 2024, and the first quarter of 2025.
| Financial Highlights | Year Ended | |||||||
| (In thousands, except per share data) | December 31, 2024 | December 31, 2023 | ||||||
| Operating revenue | $ | 16,976 | $ | 15,939 | ||||
| Operating income | $ | 5,750 | $ | 6,072 | ||||
| Net income | $ | 3,874 | $ | 4,317 | ||||
| Earnings per share | $ | 1.21 | $ | 1.36 | ||||
| EBITDA | $ | 8,757 | $ | 8,102 | ||||
| Quarter Ended | ||||||||
| March 31, 2025 | March 31, 2024 | |||||||
| Operating revenue | $ | 4,139 | $ | 4,176 | ||||
| Operating income | $ | 1,144 | $ | 1,126 | ||||
| Net income | $ | 594 | $ | 597 | ||||
| Earnings per share | $ | 0.19 | $ | 0.19 | ||||
| EBITDA | $ | 2,035 | $ | 1,906 | ||||
“We achieved record revenue and EBITDA in 2024, a year of significant investment and transition for MachTen, with continued momentum to start 2025,” commented Dan Miller, Chief Executive Officer.
“Our team deserves credit for overcoming considerable challenges in our first year as a standalone company, including the implementation of new systems and processes for accelerating the growth of our fiber-based network. We are now well along the path towards building the infrastructure required to become the most reliable provider of broadband communications in the communities we serve, and to surfacing long-term value for shareholders.”
Revenue for the full year 2024 was approximately $17 million vs. $15.9 million in the prior year, primarily attributable to an increase in support from Enhanced-ACAM (“E-ACAM”).
Broadband revenue increased to $3.4 million from $3.2 million in the prior year, offset by a loss of voice customers in several wire centers in which the electric company began offering fiber-based Internet.
Operating profit was $5.8 million in 2024, compared to $6.1 million 2023, largely attributable to a $900 thousand increase in depreciation expense.
Net income was $3.9 million, down from $4.3 million in the prior year. In addition to higher depreciation, interest expense increased $150 thousand, and operating expense was also marginally higher to reflect the addition of staff and software.
EBITDA was $8.7 million in 2024 vs. $8.1 million in the prior year.
Capital Investments & Operational Highlights
MachTen invested nearly $10 million in new fiber infrastructure in 2024, spanning more than 100 miles and 2,900 new passings. An additional 60 miles and 1,300 passings were completed in the first quarter of 2025, despite difficult weather conditions.
Key 2024 projects included:
- St. Ignace: 50-mile FTTH (Fiber-to-the-Home) network passing over 2,000 locations, with early adoption by more than 300 customers.
- Wallace and Carney Expansion: Completed a $4 million project funded by a Connecting Michigan Communities 3.0 grant.
As of March 31, 2025, Michigan Broadband has approximately 1,600 fiber broadband customers across 10k passings, with the take rate expected to improve throughout 2025.
Construction began in late 2024 on the ReConnect America 3 (“RC3”) grant projects that will ultimately bring improved connectivity to more than 2,500 locations over 500 miles. These grants were awarded by the United States Department of Agriculture’s Rural Utility Service and will impact areas that are considered amongst the highest cost to serve. On a combined basis, the RC3 grant projects may have a total cost of approximately $85 million over a 5-year period, inclusive of a matching investment from MachTen of up to $16 million. A 10-mile project in Donken was completed in January, and another 10-mile project in Grace Harbor is expected to commence in May.
Most significantly, the deployment of broadband services to more than 9,000 locations supported by the E-ACAM will accelerate in 2025. It is anticipated that fiber-based service will reach almost 3,500 new passings in 2025, bringing total E-ACAM locations served to almost 4,500, or 50% of the amount required by the end of 2026. This puts Michigan Broadband a year ahead of schedule.
We continue to monitor potential developments related to E-ACAM funding in light of the recent ruling in the 5th Circuit Court of Appeals. The ruling impacts the funding mechanism and oversight of the Universal Service Fund and will be reviewed by the US Supreme Court in 2025.
Michigan Broadband continues to invest significant capital in equipment, software, and personnel to update systems and processes following its spin-off from LICT Corporation. This includes an upgrade to the switching and routing environment that began in early 2025, and will allow for greater reliability, throughput and redundancy as fiber-based service replaces copper-based DSL.
Balance Sheet
As of March 31, 2025, cash and cash equivalents were $1.9 million.
MachTen executed a $20 million term loan from the National Cooperative Services Corporation (NCSC) in August 2024, of which $16 million has been drawn down at an interest rate of approximately 5.5%.
Strategic Opportunities
On March 19, 2025, it was announced that Michigan Broadband will enter into an Operating Services Agreement with UP Fiber, Inc. in connection with its acquisition of wireline assets from AT&T. As a result of this partnership, Michigan Broadband will provide customer service, billing, sales, marketing and other administrative support that will generate additional revenue and improve profitability.
About MachTen, Inc.
MachTen is a holding company for Michigan Broadband Services, Upper Peninsula Telephone Company (UPTC), Michigan Central Broadband Company (MCBC), and Alpha Enterprises Ltd. MachTen’s subsidiaries provide broadband internet access and communications services, including voice, video, home automation and managed hosting services. Investors should refer to filings that have been posted to www.machteninc.com
| MachTen, Inc. and Subsidiaries | ||||||||||||
| Condensed Consolidated Statements of Financial Condition | ||||||||||||
| (in thousands, except per share data) | ||||||||||||
| March 31, | December 31, | December 31, | ||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| (Unaudited) | (Unaudited) | (Audited) | ||||||||||
| Assets | ||||||||||||
| Cash and cash equivalents | $ | 1,972 | $ | 1,683 | $ | 1,533 | ||||||
| Accounts receivable | 1,046 | 1,061 | 1,555 | |||||||||
| Materials and supplies | 2,992 | 3,013 | 2,276 | |||||||||
| Other current assets | 621 | 379 | 332 | |||||||||
| Current assets | $ | 6,631 | $ | 6,136 | $ | 5,696 | ||||||
| Property, plant and equipment, net | 33,596 | 32,697 | 25,725 | |||||||||
| Right-of-use assets, net | 544 | 544 | 679 | |||||||||
| Goodwill | 100 | 100 | 100 | |||||||||
| Other noncurrent assets | 105 | 129 | 256 | |||||||||
| Total assets | $ | 40,976 | $ | 39,606 | $ | 32,456 | ||||||
| Liabilities and Shareholders’ Equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Trade accounts payable | $ | 2,127 | $ | 1,991 | $ | 2,020 | ||||||
| Note payable to LICT | – | – | 15,000 | |||||||||
| Accrued liabilities | 2,907 | 2,268 | 386 | |||||||||
| Current operating lease liability | 60 | 60 | 78 | |||||||||
| Total current liabilities | 5,095 | 4,319 | 17,484 | |||||||||
| Deferred income taxes | 2,851 | 2,852 | 2,864 | |||||||||
| Term Loan (NCSC) | 16,000 | 16,000 | – | |||||||||
| Long term operating lease liability | 572 | 572 | 644 | |||||||||
| Other noncurrent liabilities | 162 | 159 | 147 | |||||||||
| Total Long-Term Liabilities | 19,585 | 19,583 | 3,655 | |||||||||
| Shareholders’ equity | ||||||||||||
| Common Stock | 3 | 3 | 3 | |||||||||
| Preferred Stock | 514 | 514 | – | |||||||||
| Additional paid-in capital | 10,530 | 10,530 | 10,530 | |||||||||
| Unearned Compensation | (405 | ) | (405 | ) | (405 | ) | ||||||
| Retained earnings | 5,656 | 5,062 | 1,189 | |||||||||
| Total shareholders’ equity | 16,298 | 15,704 | 11,317 | |||||||||
| Total liabilities and shareholders’ equity | $ | 40,978 | $ | 39,606 | $ | 32,456 | ||||||
| Basic shares outstanding | 3,192 | 3,192 | 3,172 | |||||||||
| MachTen, Inc. and Subsidiaries | ||||||||
| Condensed Consolidated Statements of Operations (Unaudited) | ||||||||
| (in thousands, except per share data) | ||||||||
| 12 Months Ended | ||||||||
| Dec 31, 2024 | Dec 31, 2023 | |||||||
| Operating Revenue: | ||||||||
| Regulated Revenue | $ | 12,922 | $ | 12,138 | ||||
| Broadband | 3,370 | 3,173 | ||||||
| Video & Other | 684 | 628 | ||||||
| Total operating revenue | 16,976 | 15,939 | ||||||
| Operating Costs: | ||||||||
| Cost of revenue | 5,961 | 5,765 | ||||||
| General and administrative | 2,258 | 2,072 | ||||||
| Depreciation and accretion | 3,007 | 2,030 | ||||||
| Total costs | 11,226 | 9,867 | ||||||
| Operating income | 5,750 | 6,072 | ||||||
| Other Income (Expense): | ||||||||
| Interest expense | (503 | ) | (350 | ) | ||||
| Investment income | 15 | 36 | ||||||
| Total non-operating income / (loss) | (488 | ) | (314 | ) | ||||
| Income before provision for income taxes | 5,262 | 5,758 | ||||||
| Provision for income taxes | 1,388 | 1,441 | ||||||
| Net income | $ | 3,874 | $ | 4,317 | ||||
| Earnings per share attributable to common stockholders: | ||||||||
| Basic | $ | 1.21 | $ | 1.36 | ||||
| Diluted | $ | 1.18 | $ | 1.32 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 3,192 | 3,172 | ||||||
| Diluted | 3,272 | 3,272 | ||||||
| MachTen, Inc. and Subsidiaries | ||||||||
| Condensed Consolidated Statements of Operations (Unaudited) | ||||||||
| (in thousands, except per share data) | ||||||||
| 3 Months Ended | ||||||||
| Mar 31, 2025 | Mar 31, 2024 | |||||||
| Operating Revenue: | ||||||||
| Regulated Revenue | $ | 3,162 | $ | 3,208 | ||||
| Broadband | 812 | 801 | ||||||
| Video & Other | 164 | 167 | ||||||
| Total operating revenue | 4,138 | 4,176 | ||||||
| Operating Costs: | ||||||||
| Cost of revenue | 1,479 | 1,614 | ||||||
| General and administrative | 625 | 656 | ||||||
| Depreciation and accretion | 891 | 780 | ||||||
| Total costs | 2,995 | 3,050 | ||||||
| Operating income | 1,143 | 1,126 | ||||||
| Other Income (Expense): | ||||||||
| Interest expense | (222 | ) | (255 | ) | ||||
| Investment income | 5 | 5 | ||||||
| Total non-operating income / (loss) | (217 | ) | (250 | ) | ||||
| Income before provision for income taxes | 926 | 876 | ||||||
| Provision for income taxes | 333 | 279 | ||||||
| Net income | $ | 593 | $ | 597 | ||||
| Earnings per share attributable to common stockholders: | ||||||||
| Basic | $ | 0.19 | $ | 0.19 | ||||
| Diluted | $ | 0.18 | $ | 0.18 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 3,192 | 3,172 | ||||||
| Diluted | 3,272 | 3,272 | ||||||
EBITDA
EBITDA is an established non-GAAP financial measure of operating performance and liquidity that is commonly reported and widely used by analysts, investors, and other interested parties in the telecommunications industry because it eliminates many differences in financial, capitalization, and tax structures. We believe that EBITDA trends are a valuable indicator of whether our operations are able to produce sufficient operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.
EBITDA is calculated as Operating Profit from Continuing Operations plus depreciation and amortization expense and corporate expenses.
| EBITDA Reconciliation | 12 Months Ended | ||||||
| December 31, 2024 | December 31, 2023 | ||||||
| Operating Profit | $ | 5,750 | $ | 6,072 | |||
| Depreciation & Amortization | 3,007 | 2,030 | |||||
| Total EBITDA | 8,757 | 8,102 | |||||
| EBITDA Reconciliation | 3 Months Ended | ||||||
| March 31, 2025 | March 31, 2024 | ||||||
| Operating Profit | $ | 1,143 | $ | 1,126 | |||
| Depreciation & Amortization | 891 | 780 | |||||
| Total EBITDA | 2,034 | 1,906 | |||||
| Contact: | Dan Miller Chief Executive Officer (914) 921-5193 | |
