Seeking a joint venture or equity partner for, or a sale of the land, buildings, equipment, and business of, Bay Country Communications, Inc. (“BCC” or “the Company”). BCC owns and operates cable television and broadband systems serving approximately 2,100 residential, municipal and commercial subscribers in Dorchester County, Maryland. The Company began operations as a cable TV provider in East New Market in 1991 and has doubled in size over the last three years, with revenues of approximately $2mm annually and 2012 EBITDA over $500k. Current Recurring Monthly Revenue (RMR) from subscribers is over $125k. To date, growth has been funded internally from operations with no additional outside investment. Customer penetration is more than 40% where the incumbent provider is heavily saturated and much higher in areas where no competition exists. Customer retention is approximately 99%; subscribers typically only leave if they are moving out of the service area.
The Company operates from two offices in East New Market and Cambridge, with data and media links located in a 10,000 square foot warehouse in East New Market. BCC’s system consists of a 100+ mile fiber optic network which provides critical, redundant links to Dorchester County 911, the County Office Building, and the Cambridge Police Department. The Company built and maintains fiber optic links for the Hyatt Regency and Chesapeake Bay Advertising Terminals and also provides cable television services to the marina and Internet connectivity to the four most exclusive suites in the resort. Bay Country also provides Internet connectivity for Dorchester County Public Schools and local government at 20 locations spread throughout the county. The Company has also expanded into web and business application development, IT services, wireless networking and advertising services, and is currently building and maintaining a wireless rural broadband network.
The corporate office for BCC is located in Cambridge, Maryland, where they have 7 full-time and 2 part-time employees. The group is led by the President and VP who have been with the Company since it’s founding and who have approximately 48 years of cable experience between them. The corporate office handles operations, engineering, marketing, billing and accounting, and payroll. Customer calls are also handled from this office in Cambridge from 8:00am to 6:30pm, with messages monitored 24 hours a day. The 4 field technicians work out of East New Market, and travel to customer sites with the 7 vehicles owned by the Company.
BCC’s plant consists of 123 miles of a two-way network with spacing to accommodate 750 MHz of bandwidth. This network includes 100 miles of fiber and is supported by AT&T Golden Reward T-1’s. The network includes 39 nodes of fiber optics. All phases of plant and headend maintenance and construction are handled by BCC employees.
The Company has developed strong ties to the community and is seen as a local partner for media and telecommunications services. In particular, BCC’s provider agreements with county emergency services, police department and school system make it an attractive platform.
This is an excellent opportunity to partner with, invest in, or acquire a growing cable television and broadband service provider. Their system is one of the very few remaining independent operators in the area. Increasing penetration of a growing local population, as well as low churn due to outstanding customer service and products, has enabled Bay Country Communications to consistently grow its subscriber base over the past several years.