OKLAHOMA CITY, Aug. 6, 2002 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL) reported total revenue of $159.9 million for the second quarter ended June 30, 2002, an increase of approximately four percent over revenue for the second quarter of 2001.
EBITDA was $66.7 million, or eight percent higher than the same quarter of 2001. EBITDA margin increased to 41.7 percent for the second quarter of 2002, compared with 40.4 percent for the second quarter last year.
EBITDA represents earnings before interest, taxes, depreciation, amortization, loss from investment in joint venture, impairment loss from investment in joint venture, income (loss) from discontinued operations and loss from change in accounting principle. Dobson's EBITDA does not include the operations of American Cellular. Dobson accounts for its 50 percent interest in American Cellular on an equity basis (Table 1), reporting American Cellular's results of operations as "loss from investment in joint venture." EBITDA also does not include the effect of the February 2002 sale by Dobson and American Cellular of five properties to Verizon Wireless (NYSE:VZ). The results of operations from these properties are shown (Table 1, attached) as income (loss) from discontinued operations, net of taxes, in accordance with Generally Accepted Accounting Principles (GAAP).
Dobson's net loss applicable to common shareholders included a loss from investment in the American Cellular joint venture of $117.1 million, net of tax, and non-cash preferred stock dividends of $23.9 million. The loss from investment in American Cellular primarily related to a goodwill impairment write-down taken by that company. With the recognition of the losses from the American Cellular joint venture, Dobson's investment in the American Cellular joint venture has been written down to zero.
American Cellular's second quarter EBITDA was significantly higher than that for the same period last year, but it did not satisfy the total debt leverage ratio covenant for June 30, 2002, contained in its bank credit facility. Because of this, American Cellular's banks have the right, but not the obligation, to accelerate repayment of the outstanding balance of its credit facility, which at June 30, 2002, was approximately $915.6 million. To date, no such acceleration has occurred, and American Cellular's management continues to hold discussions with its bank lenders concerning the bank credit facility. As previously disclosed, an acceleration under the credit facility would allow the holders of American Cellular's Senior Subordinated Notes to declare the principal and interest of those notes immediately due and payable.
American Cellular's debt is non-recourse to Dobson Communications and to American Cellular's other owner, AT&T Wireless.
Without the loss from investment in the American Cellular joint venture, Dobson would have recorded net income of $8.9 million, or $0.10 per share. After non-cash preferred stock dividends, the Company would have recorded a net loss applicable to common shareholders of $15.0 million, or $0.17 per share, for the second quarter ended June 30, 2002.
In the second quarter of 2001, Dobson's net loss applicable to common shareholders was $53.4 million, or $0.56 per share, based on an average 94.2 million shares outstanding. This included a loss from investment in the American Cellular joint venture of $16.2 million; a $3.0 million loss from discontinued operations, net of taxes; and non-cash preferred stock dividends of $21.5 million.
Dobson's improvements in EBITDA and EBITDA margin were driven by several positive operating trends.
-- Average revenue per unit (ARPU) for the second quarter of 2002 was
approximately $45, compared with $44 for the second quarter last
year.
-- Cash cost per unit (CCPU) in the second quarter was approximately
$23, compared with CCPU of approximately $25 for the same period
last year. CCPU reflects all operating costs that are not related
to acquiring new subscribers or to the Company's wholesale roaming
business. Lower CCPU was achieved despite a 24 percent year-over-
year increase in average minutes of use (MOUs) per customer per
month -- to 201 MOUs in the most recent quarter.
-- Consequently, Dobson's EBITDA margin on local service revenue was
19.0 percent for the second quarter, compared with 12.4 percent in
last year's second quarter. Increasing local service profit margin
is a key operating priority for the Company in 2002.
-- Finally, Dobson's cost per gross subscriber addition (CPGA) was
$420 for the second quarter, compared with $449 for the same
period last year. Dobson migrated only 6,000 analog customers to
digital calling plans during the quarter, compared with 28,500 in
last year's second quarter.
Roaming revenue for the second quarter was approximately six percent lower than the same period last year, primarily reflecting the lower initial rate in Dobson's new 10-year roaming agreement with Cingular Wireless. Roaming traffic on the Dobson network increased to 252.6 million minutes for the second quarter, almost 34 percent higher than total roaming MOUs in the second quarter of 2001.
Dobson's capital expenditures in the second quarter were approximately $24.8 million, bringing total capital expenditures at mid-year to $42.8 million. The Company has projected approximately $85 million in capital expenditures for 2002.
Having completed the build-out of its 100 percent digital network in 2001, capital spending in 2002 has focused primarily on increasing network capacity. It added 15 new cell sites and approximately 2,500 additional voice paths during the second quarter. Dobson's network now includes approximately 920 cell sites and 30,775 voice paths, of which 75 percent are digital. During the second quarter, 90 percent of network voice traffic was digital, compared with 82 percent in the same period last year.
Dobson also strengthened its balance sheet during the quarter, reducing total long-term debt by almost $31 million through regularly scheduled reductions and a paydown of its revolver. At June 30, 2002, Dobson had $242.6 million in unrestricted cash, as well as approximately $147.9 million in borrowing availability under its subsidiaries' credit facilities.
First Quarter 2002 Earnings Revised Upward
Dobson also announced that it had revised upward its earnings for the first quarter ended March 31, 2002, due to an understatement of the gain on its first quarter sale of assets to Verizon Wireless. The gain was understated by $7.1 million, net of taxes. In its results for the quarter ended March 31, 2002, Dobson incorrectly reported certain liabilities on its balance sheet that were assumed by Verizon Wireless as a result of the sale. Dobson has accordingly amended its quarterly report on Form 10-Q for the period. The attached financials for the first half of 2002 reflect this revision.
American Cellular Corporation
American Cellular also continued to improve its operating results in the second quarter (Table 5). For the second quarter, American Cellular:
-- Increased total revenue by nine percent to $115.8 million;
-- Recorded roaming revenue of $35.6 million, almost four percent
higher than the second quarter last year, and roaming MOUs that
were 44 percent higher than last year;
-- Increased EBITDA to $47.1 million, or almost 14 percent, compared
with the second quarter last year;
-- Increased EBITDA margin to 40.6 percent, compared with 39.0
percent in the second quarter last year;
-- Increased local service profit margin to 24.4 percent, compared
with 20.8 percent in the second quarter last year;
-- Reduced CPGA to approximately $381, compared with $498 for the
same quarter last year;
-- And, as previously announced, added to its subscriber based
approximately 15,700 net subscribers in the quarter, reflecting
postpaid churn for the quarter of 1.7 percent.
American Cellular's net loss for the quarter ended June 30, 2002 was $382.8 million, and included a goodwill impairment write-down of $377.0 million.
American Cellular's capital expenditures were approximately $16.7 million in the second quarter, bringing its year-to-date total to $30.0 million. American Cellular has projected approximately $55 million in total capital expenditures for 2002. During the second quarter, it added 10 cell sites and almost 2,600 voice paths, raising its total network capacity to 706 cells sites and approximately 23,000 voice paths.
American Cellular had approximately $4.7 million unrestricted cash and $74.5 million in restricted cash on its balance sheet as of June 30, 2002; the restricted cash is in escrow to pay interest. Available borrowing capacity on its credit facility is restricted by its total leverage covenant. American Cellular anticipates that its cash flow from operations will be sufficient to meet its short-term cash needs.
Proportionate 2Q Results
Dobson's proportionate results, which include half of the results of operations of American Cellular, also reflected strong increases in EBITDA and EBITDA margin in the second quarter.
Proportionate total revenue increased to $217.8 million for the quarter, almost six percent above last year's second quarter. Second quarter EBITDA increased nine percent to $90.2 million, compared with $82.7 million for the same period last year (proportionate). EBITDA margin for the current quarter rose to 41.4 percent, compared with 40.1 percent for the same period last year.
Although proportionate postpaid ARPU for the second quarters of 2002 and 2001 each rounded to $43, postpaid ARPU for the second quarter this year was approximately $0.60 higher than that for the same period last year.
Cash cost per user (CCPU) in the second quarter was approximately $22 (proportionate), almost four percent lower than CCPU for the same period last year.
CPGA on a proportionate basis was $409 for the second quarter, compared with $461 for the same period last year. Dobson migrated 11,800 analog customers (proportionate) to digital calling plans during the quarter, compared with 35,100 in last year's second quarter.
Finally, Dobson's EBITDA margin on local service revenue was 20.6 percent for the second quarter (proportionate), compared with 14.9 percent in last year's second quarter.
As previously announced, second quarter gross subscriber additions (proportionate, postpaid) were approximately 85,800, and customer churn improved to 1.7 percent, yielding total net subscriber additions of approximately 30,200. Eighty-two percent of the Company's proportionate subscribers were on digital calling plans at June 30, 2002, compared with 62 percent a year ago.
Dobson's 1.1 million subscribers (proportionate) reflect penetration of approximately 12.0 percent in its markets, compared with 10.6 percent at the end of last year's second quarter.
Conference Call
Dobson plans to conduct a conference call to discuss its second quarter results on Wednesday, August 7, beginning at 9 a.m. ET (8 a.m. CT). On the conference call, the Company expects to discuss current market conditions and its operating outlook. The call will also be broadcast on the Internet.
Those interested may access the call by dialing:
Conference call (800) 946-0712
Pass code 584096
The call may also be accessed via the Internet through the Investor Relations page of Dobson's web site at www.dobson.net. A replay of the call will be available later in the day via Dobson's web site or by phone.
Replay (888) 203-1112
Pass code 584096
The replay will be available by phone for two weeks.
Dobson Communications is a leading provider of wireless phone services to rural and suburban markets in the United States. Headquartered in Oklahoma City, the rapidly growing Company owns or manages wireless operations in 17 states. For additional information on the Company and its operations, please visit its Web site at www.dobson.net.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These include, but are not limited to, statements regarding the Company's plans, intentions and expectations. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, but are not limited to, increased levels of competition, shortages of key equipment, restrictions on the Company's ability to finance its growth and other factors. A more extensive discussion of the risk factors that could impact these areas and the Company's overall business and financial performance can be found in the Company's reports filed with the Securities and Exchange Commission. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements.
Table 1
Dobson Communications Corporation
Statements of Operations
(Includes American Cellular ownership on an equity basis)
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
---------- ---------- ---------- ----------
Operating Revenue
Service revenue $ 94,291 $ 82,222 $ 180,964 $ 156,707
Roaming revenue 60,875 64,642 112,755 115,478
Equipment &
other revenue 4,715 6,414 9,287 12,253
---------- ---------- ---------- ----------
Total 159,881 153,278 303,006 284,438
---------- ---------- ---------- ----------
Operating
Expenses
(excluding
depreciation &
amortization
Cost of service 43,229 41,359 83,857 77,664
Cost of equipment 11,298 12,842 22,630 26,136
Marketing & selling 19,198 18,737 36,999 37,224
General &
administrative 19,495 18,391 39,192 37,446
---------- ---------- ---------- ----------
Total 93,220 91,329 182,678 178,470
---------- ---------- ---------- ----------
EBITDA 66,661 61,949 120,328 105,968
Depreciation &
amortization (22,052) (45,424) (43,064) (89,876)
---------- ---------- ---------- ----------
Operating Income 44,609 16,525 77,264 16,092
Minority interest (1,587) (1,554) (3,097) (2,748)
Loss from
investment in
joint venture (1) (177,158) (16,246) (184,381) (35,339)
Other income, net 1,524 2,376 2,768 3,549
---------- ---------- ---------- ----------
(Loss) income
before interest &
income taxes (132,612) 1,101 (107,446) (18,446)
Interest expense (30,232) (37,731) (60,898) (76,129)
Income tax benefit 54,601 7,746 53,946 22,491
---------- ---------- ---------- ----------
Loss from
continuing
operations (108,243) (28,884) (114,398) (72,084)
Discontinued
operations:
(Loss) income from
discontinued
operations, net of
taxes -- (2,839) 5,121 (3,455)
Loss from
discontinued
operations from
investment in
joint venture -- (169) (327) (422)
Gain from disposal
of discontinued
operations, net of
taxes -- -- 88,315 --
Gain from disposal
of discontinued
operations from
investment in
joint venture -- -- 6,736 --
---------- ---------- ---------- ----------
Loss before
cumulative effect
of change in
accounting
principal (108,243) (31,892) (14,553) (75,961)
Cumulative effect
of change in
accounting
principle, net of
taxes -- -- (33,294) --
Cumulative effect
of change in
accounting
principle from
investment in
joint venture -- -- (140,820) --
---------- ---------- ---------- ----------
Net loss (108,243) (31,892) (188,667) (75,961)
Dividends on
preferred stock (23,860) (21,516) (46,860) (41,006)
---------- ---------- ---------- ----------
Net loss applicable
to common
shareholder $ (132,103) $ (53,408) $ (235,527) $ (116,967)
========== ========== ========== ==========
Basic net loss
applicable to
common
shareholders per
common share:
Continuing
operations $ (1.19) $ (0.31) $ (1.26) $ (0.77)
Discontinued
operations -- (0.03) 1.10 (0.04)
Change in
accounting
principle -- -- (1.91) --
Dividends on
preferred stock (0.27) (0.22) (0.51) (0.43)
---------- ---------- ---------- ----------
Basic net loss
applicable to
common
shareholders per
common share $ (1.46) $ (0.56) $ (2.58) $ (1.24)
========== ========== ========== ==========
Basic weighted
average common
shares
outstanding 90,806,645 94,234,678 91,222,067 94,151,058
========== ========== ========== ==========
(1) Represents the Company's 50% ownership in the Net Loss from
American Cellular.
Detailed as follows:
For the For the For the For the
three three six six
months months months months
ended June ended June ended June ended June
30, 2002 30, 2001 30, 2002 30, 2001
EBITDA 47,064 41,413 81,870 69,208
Depreciation
and Amortization (16,762) (45,357) (32,744) (88,462)
Interest
Expense (38,781) (41,989) (79,322) (80,945)
Other Income, net 787 1,486 284 1,806
Income tax benefit 3,077 11,956 11,965 27,716
Impairment of
Goodwill (377,000) -- (377,000) --
Dividends on
preferred stock (1,148) -- (2,262) --
------ ------ ------ ------
Net Loss of
American Cellular
from continuing
operations (100%) (382,763) (32,491) (397,209) (70,677)
====== ====== ====== ======
Table 2
Dobson Communications Corporation
Selected Financial Data
June 30, 2002
($ in millions)
Cash and cash equivalents $ 242.6
Total Debt: (1)
Dobson Operating Co., L.L.C. credit facility $ 486.3
Dobson/Sygnet credit facility 296.0
DCC 10.875% Senior Notes, net 298.2
Dobson/Sygnet Senior Notes 200.0
Total debt $ 1,280.5
Preferred Stock:
Series AA Preferred Stock, 5.96% $ 200.0
Senior Exchangeable Preferred Stock, 12.25%, net 380.6
Senior Exchangeable Preferred Stock, 13.00% 250.6
Total preferred stock $ 831.2
Six months ended
June 30, 2002
($ in millions)
Capital Expenditures: (2) $ 42.8
(1) Does not include our proportionate interest in American
Cellular's total debt of $1.61 billion.
(2) Does not include our proportionate share of American Cellular's
capital expenditures for the six months ended June 30, 2002
totaling $30.0 million.
Table 3
Dobson Communications Corporation
Proportionately Consolidated Selected Financial Information
(Includes 50% of American Cellular's operations to represent
proportionate ownership)
For the Quarter
Ended 6/30/01 9/30/01 12/31/01 3/31/02 6/30/02
--------- --------- --------- --------- ---------
($ in thousands except per subscriber data)
(unaudited)
Operating Revenue
Service revenue $ 115,831 $ 122,869 $ 119,553 $ 121,767 $ 132,420
Roaming revenue 81,801 92,286 75,468 65,177 78,671
Equipment & other
revenue 8,699 7,963 7,249 6,123 6,695
--------- --------- --------- --------- ---------
Total 206,331 223,118 202,270 193,067 217,786
--------- --------- --------- --------- ---------
Operating Expenses
(excluding
depreciation &
amortization)
Cost of service 54,450 59,034 56,092 54,315 57,866
Cost of equipment 17,792 17,060 15,715 15,055 15,149
Marketing & selling 25,585 25,968 25,937 24,587 26,605
General &
administrative 25,849 27,000 26,010 28,038 27,973
--------- --------- --------- --------- ---------
Total 123,676 129,062 123,754 121,995 127,593
--------- --------- --------- --------- ---------
EBITDA (1) $ 82,655 $ 94,056 $ 78,516 $ 71,072 $ 90,193
========= ========= ========= ========= =========
EBITDA Margin 40.1% 42.2% 38.8% 36.8% 41.4%
Pops 8,852,500 8,852,500 8,852,500 8,852,500 8,852,500
Post-paid
Gross Adds 75,200 85,950 92,500 81,800 85,750
Net Adds 27,450 34,650 34,300 16,150 34,100
Subscribers 905,950 940,600 971,450 987,600 1,021,700
Churn 1.8% 1.9% 2.0% 2.2% 1.7%
Average Service
Revenue per
Subscriber $ 43 $ 44 $ 41 $ 41 $ 43
Average Service
and Roaming
Revenue per
Subscriber $ 73 $ 77 $ 68 $ 63 $ 69
Pre-paid
Net Adds 2,150 400 2,450 1,600 (3,800)
Subscribers 17,000 17,400 16,950 18,550 14,750
Reseller
Net Adds 8,750 4,300 5,850 (600) (150)
Subscribers 17,700 22,000 27,850 27,250 27,100
Total
Net Adds 38,350 39,350 42,600 17,150 30,150
Subscribers (2) 940,650 980,000 1,016,250 1,033,400 1,063,550
Penetration 10.6% 11.1% 11.5% 11.7% 12.0%
(1) Includes $2.0 million, $2.1 million, $1.9 million, $1.9 million
and $2.1 million of EBITDA for the quarters ended June 30, 2001,
September 30, 2001, December 31, 2001, March 31, 2002 and June
30, 2002 respectively, related to minority interests.
(2) Billing reconciliation included in fourth quarter 2001
subscribers.
Table 4
Dobson Communications Corporation
For the Quarter
Ended 6/30/01 9/30/01 12/31/01 3/31/02 6/30/02
-------- -------- -------- -------- --------
($ in thousands except per subscriber data)
(unaudited)
Operating Revenue
Service revenue $ 82,222 $ 86,963 $ 85,359 $ 86,674 $ 94,290
Roaming revenue 64,642 72,209 59,943 51,880 60,875
Equipment & other
revenue 6,414 5,672 4,820 4,571 4,716
-------- -------- -------- -------- --------
Total 153,278 164,844 150,122 143,125 159,881
-------- -------- -------- -------- --------
Operating Expenses
(excluding
depreciation &
amortization)
Cost of service 41,359 44,846 41,688 40,628 43,229
Cost of equipment 12,842 12,679 11,939 11,333 11,298
Marketing &
selling 18,737 18,659 18,915 17,800 19,198
General &
administrative 18,391 19,004 18,033 19,697 19,495
-------- -------- -------- -------- --------
Total 91,329 95,188 90,575 89,458 93,220
-------- -------- -------- -------- --------
EBITDA (1) $ 61,949 $ 69,656 $ 59,547 $ 53,667 $ 66,661
======== ======== ======== ======== ========
EBITDA Margin 40.4% 42.3% 39.7% 37.5% 41.7%
Pops 6,354,000 6,354,000 6,354,000 6,354,000 6,354,000
Post-paid
Gross Adds 56,100 58,800 65,000 58,400 61,400
Net Adds 20,900 22,800 22,800 11,100 25,900
Subscribers 625,300 648,100 668,800 679,900 705,800
Churn 1.85% 1.9% 2.1% 2.3% 1.7%
Average Service
Revenue per
Subscriber $ 44 $ 45 $ 43 $ 42 $ 45
Average Service
and Roaming
Revenue per
Subscriber $ 79 $ 83 $ 73 $ 68 $ 74
Pre-paid
Net Adds 2,700 600 2,700 1,700 (3,700)
Subscribers 14,200 14,800 14,600 16,300 12,600
Reseller
Net Adds 2,300 3,200 4,900 (700) 100
Subscribers 8,700 11,900 16,800 16,100 16,200
Total
Net Adds 25,900 26,600 30,400 12,100 22,300
Subscribers (2) 648,200 674,800 700,200 712,300 734,600
Penetration 10.2% 10.6% 11.0% 11.2% 11.6%
(1) Includes $2.0 million, $2.1 million, $1.9 million, $1.9 million
and $2.1 million of EBITDA for the quarters ended June 30, 2001,
September 30, 2001, December 31, 2001, March 31, 2002 and June
30, 2002 respectively, related to minority interests.
(2) Billing reconciliation included in fourth quarter 2001
subscribers.
Table 5
American Cellular Corporation
For the Quarter
Ended 6/30/01 9/30/01 12/31/01 3/31/02 6/30/02
--------- -------- -------- -------- --------
($ in thousands except per subscriber data)
(unaudited)
Operating Revenue
Service revenue $ 67,219 $ 71,812 $ 68,389 $ 70,187 $ 76,260
Roaming revenue 34,320 40,154 31,050 26,593 35,592
Equipment & other
revenue 4,568 4,583 4,858 3,103 3,958
--------- -------- -------- -------- --------
Total 106,107 116,549 104,297 99,883 115,810
--------- -------- -------- -------- --------
Operating Expenses
(excluding
depreciation &
amortization)
Cost of service 26,181 28,375 28,807 27,374 29,273
Cost of equipment 9,900 8,762 7,552 7,446 7,704
Marketing &
selling 13,696 14,619 14,045 13,574 14,813
General &
administrative 14,917 15,993 15,954 16,682 16,956
--------- -------- -------- -------- --------
Total 64,694 67,749 66,358 65,076 68,746
--------- -------- -------- -------- --------
EBITDA $ 41,413 $ 48,800 $ 37,939 $ 34,807 $ 47,064
========= ======== ======== ======== ========
EBITDA Margin 39.0% 41.9% 36.4% 34.8% 40.6%
Pops 4,997,000 4,997,000 4,997,000 4,997,000 4,997,000
Post-paid
Gross Adds 38,200 54,300 55,000 46,800 48,700
Net Adds 13,100 23,700 23,000 10,100 16,400
Subscribers 561,300 585,000 605,300 615,400 631,800
Churn 1.6% 1.8% 1.8% 2.0% 1.7%
Average Service
Revenue per
Subscriber $ 40 $ 41 $ 38 $ 38 $ 40
Average Service
and Roaming
Revenue per
Subscriber $ 61 $ 65 $ 55 $ 52 $ 59
Pre-paid
Net Adds (1,100) (400) (500) (200) (200)
Subscribers 5,600 5,200 4,700 4,500 4,300
Reseller
Net Adds 12,900 2,200 1,900 200 (500)
Subscribers 18,000 20,200 22,100 22,300 21,800
Total
Net Adds 24,900 25,500 24,400 10,100 15,700
Subscribers (1) 584,900 610,400 632,100 642,200 657,900
Penetration 11.7% 12.2% 12.6% 12.9% 13.2%
(1) Billing reconciliation included in fourth quarter 2001
subscribers.
Table 6
Dobson Operating Company LLC
For the Quarter
Ended 6/30/01 9/30/01 12/31/01 3/31/02 6/30/02
-------- -------- -------- -------- --------
($ in thousands except per subscriber data)
(unaudited)
Operating Revenue
Service revenue $ 48,799 $ 51,476 $ 50,591 $ 52,501 $ 56,999
Roaming revenue 53,645 59,094 47,753 41,561 48,358
Equipment & other
revenue 4,766 4,033 3,169 3,202 3,418
-------- -------- -------- -------- --------
Total 107,210 114,603 101,513 97,264 108,775
-------- -------- -------- -------- --------
Operating Expenses
(excluding
depreciation &
amortization)
Cost of service 30,226 33,096 30,289 29,675 31,640
Cost of
equipment 8,039 7,424 5,975 6,905 6,867
Marketing &
selling 12,545 12,391 12,045 11,765 12,716
General &
administrative 11,404 12,025 11,704 12,883 12,346
-------- -------- -------- -------- --------
Total 62,214 64,936 60,013 61,228 63,569
-------- -------- -------- -------- --------
EBITDA (1) $ 44,996 $ 49,667 $ 41,500 $ 36,036 $ 45,206
======== ======== ======== ======== ========
EBITDA Margin 42.0% 43.3% 40.9% 37.1% 41.6%
Pops 3,996,300 3,996,300 3,996,300 3,996,300 3,996,300
Post-paid
Gross Adds 36,100 38,000 36,400 36,500 39,400
Net Adds 16,400 16,000 12,000 7,200 16,100
Subscribers 358,000 374,000 384,200 391,400 407,500
Churn 1.8% 2.0% 2.2% 2.4% 1.9%
Average Service
Revenue per
Subscriber $ 46 $ 46 $ 44 $ 44 $ 47
Revenue per
Subscriber $ 97 $ 100 $ 86 $ 80 $ 87
Pre-paid
Net Adds 2,500 300 2,400 1,600 (3,600)
Subscribers 13,400 13,700 14,000 15,600 12,000
Reseller
Net Adds 2,300 1,400 1,600 (1,000) 500
Subscribers 8,700 10,100 11,700 10,700 11,200
Total
Net Adds 21,200 17,700 16,000 7,800 13,000
Subscribers (2) 380,100 397,800 409,900 417,700 430,700
Penetration 9.5% 10.0% 10.3% 10.5% 10.8%
(1) Includes $2.0 million, $2.1 million, $1.9 million, $1.9 million
and $2.1 million of EBITDA for the quarters ended June 30, 2001,
September 30, 2001, December 31, 2001, March 31, 2002 and June
30, 2002 respectively, related to minority interests.
(2) Billing reconciliation included in fourth quarter 2001
subscribers.
Table 7
Dobson/Sygnet Communications Company
For the Quarter
Ended 6/30/01 9/30/01 12/31/01 3/31/02 6/30/02
-------- -------- -------- -------- --------
($ in thousands except per subscriber data)
(unaudited)
Operating Revenue
Service revenue $ 33,404 $ 35,484 $ 34,769 $ 34,076 $ 37,097
Roaming revenue 10,996 13,115 12,189 10,319 12,516
Equipment & other
revenue 1,667 1,639 1,651 1,370 1,298
-------- -------- -------- -------- --------
Total 46,067 50,238 48,609 45,765 50,911
-------- -------- -------- -------- --------
Operating Expenses
(excluding
depreciation &
amortization)
Cost of service 11,134 11,750 11,399 10,953 11,589
Cost of equipment 4,802 5,255 5,964 4,428 4,431
Marketing &
selling 6,192 6,268 6,870 6,035 6,482
General &
administrative 6,995 6,986 6,332 6,510 6,980
-------- -------- -------- -------- --------
Total 29,123 30,259 30,565 27,926 29,482
-------- -------- -------- -------- --------
EBITDA $ 16,944 $ 19,979 $ 18,044 $ 17,839 $ 21,429
======== ======== ======== ======== ========
EBITDA Margin 36.8% 39.8% 37.1% 39.0% 42.1%
Pops 2,357,700 2,357,700 2,357,700 2,357,700 2,357,700
Post-paid
Gross Adds 20,000 20,800 28,600 21,900 22,000
Net Adds 4,500 6,800 10,800 3,900 9,800
Subscribers 267,300 274,100 284,600 288,500 298,300
Churn 1.9% 1.7% 2.1% 2.1% 1.4%
Average Service
Revenue per
Subscriber $ 42 $ 44 $ 41 $ 39 $ 42
Average Service
and Roaming
Revenue per
Subscriber $ 56 $ 60 $ 56 $ 51 $ 56
Pre-paid
Net Adds 200 300 300 100 (100)
Subscribers 800 1,100 600 700 600
Reseller
Net Adds -- 1,800 3,300 300 (400)
Subscribers -- 1,800 5,100 5,400 5,000
Total
Net Adds 4,700 8,900 14,400 4,300 9,300
Subscribers (1) 268,100 277,000 290,300 294,600 303,900
Penetration 11.4% 11.7% 12.3% 12.5% 12.9%
(1) Billing reconciliation included in fourth quarter 2001
subscribers.