Princeton, N.J. -- RCN Corp.'s remarkable Wall Street
run marked another milestone last week as the nascent cable, telephone and data provider
declared a two-for-one stock split.
Since shearing off from cable MSO C-TEC Corp. last October,
RCN has seen its stock price more than double, at one point topping $61 per share earlier
this month. It has also raised $1 billion through a pair of high-yield debt sales, and
added about 8,000 customers to its fiber networks in the last three months.
The split, which will raise the company's outstanding
base to 54.8 million shares, should improve the stock's liquidity and marketability,
the company said.
RCN and two other companies, Cable Michigan Inc. and
Commonwealth Telephone Enterprises, were spun out of C-TEC. Last week, RCN said its
fourth-quarter revenue rose to $35.4 million, a gain of 14 percent compared with the third
quarter, and its annual revenue rose to $127 million, up 21 percent from the prior year.
Quarterly cash flow for the start-up was a loss of $8.3
million and the yearly cash-flow loss was $7.7 million, compared with $25.8 million in
positive cash flow the year before.
Cable Michigan, meanwhile, reported its fourth-quarter
revenue rose to $20.4 million from $19.3 million in the same period a year ago and cash
flow before management fees dipped to $9 million from $9.4 million the prior year.
And Mercom Inc., a Southern Michigan cable operator mostly
owned and controlled by Cable Michigan, reported that its fourth-quarter revenue rose 2.8
percent, to $4 million from $3.9 million and that its cash flow rose a similar percentage,
to $1.5 million from $1.4 million in the same period a year earlier.