Avista Subsidiary Hits Mark

Avista Communications has reached an important earnings benchmark early, President Greg Green said Monday.

The subsidiary of Avista Corp. achieved positive earnings before interest, taxes, depreciation and amortization, or EBITDA, after just 15 months in Billings, Mont., he said.

Green said Billings is the first of 10 markets Avista Communications entered as an alternative to the incumbent telephone company.

“In an industry where the standard is at least 24 months to achieve positive EBITDA, hitting this target early is an indication of our successful strategy,” he said in a written statement.

Green said Avista Communications has built a Billings customer base of 6,000, in part due to the company’s 1998 purchase of a local Internet Service Provider.

He said the company expects to report a positive EBITDA in all of its markets within two years.

“It’s a very important benchmark in our industry,” said spokeswoman Melanie Rose. “It’s what every up-and-coming telecommunications company shoots for.”

Avista Communications, which operates five switches, also disclosed that operations are producing recurring revenues of more than $500,000 a month, a 240 percent increase over last year’s levels.

Besides Billings, the company serves Spokane, Coeur d’Alene, Post Falls, Lewiston, Clarkston, Moscow, Pullman, Yakima and Bellingham.

Rose said Avista Communications officials expect to announce later this year what additional markets the company will enter in 2001.