OKLAHOMA CITY, May 5, 2003 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL):
-- Compares with $80.4 Million Net Loss in 1Q 2002 --
-- EBITDA Increases 37.4 Percent to $63.9 Million --
-- Further Reductions in Cash Cost Per User Increase EBITDA
Margin to 46.3 Percent --
Dobson Communications Corporation reported net income of $15.0 million for its first quarter ended March 31, 2003, compared with a net loss of $80.4 million for the first quarter of the previous year.
Dobson recorded net income applicable to common shareholders of $18.1 million, or $0.20 per share, for the first quarter of 2003, after giving effect to the payment of non-cash dividends of $20.5 million on preferred stock (Table 1). This also included a gain of $23.6 million for the excess of face value over repurchase price of preferred stock, resulting from the repurchase, through a subsidiary of Dobson Communications, of $60.2 million (liquidation preference amount) of its 12.25% and 13% Senior Exchangeable Preferred Stock during the first quarter for approximately $36.6 million.
Net income applicable to common shareholders also included $3.6 million in income from discontinued operations, net of taxes, representing the results of Dobson's two California markets, which are expected to be exchanged for AT&T Wireless' (NYSE:AWE) Anchorage Metropolitan Service Area (MSA) and Alaska Rural Service Area 2. Dobson expects to complete the exchange in June 2003. Dobson's operating results for the first quarters of 2003 and 2002 do not include the results of operations from its California properties, which are now shown as "discontinued operations." Results for Anchorage MSA and AK RSA 2 will not be included in Dobson's results until the property swap is completed.
Dobson's results also do not include the operations of American Cellular Corporation (see below), which is jointly owned by Dobson and AT&T Wireless.
For last year's first quarter, Dobson recorded a net loss applicable to common shareholders of $103.4 million, or $1.13 per share, after non-cash dividends of $23.0 million on preferred stock. Last year's first quarter net loss also included non-operating charges of $7.5 million; income from discontinued operations and gains from the disposal of discontinued operations, net of taxes, totaling $102.0 million; and charges of $174.1 million that reflected the cumulative effects of a change in accounting principle, related to the adoption of SFAS No. 142.
"We performed at an exceptional level in the first quarter, continuing to grow the Company profitably," said Everett R. Dobson, president, chairman and chief executive officer. "Although sales continue to be somewhat slower than historical trends, we are continuing to see positive results from our focus on our most profitable customer segment -- postpaid, contract subscribers. Our success in maintaining ARPU and reducing cash cost per user is producing very strong growth in EBITDA and EBITDA margins."
Dobson continued to achieve strong increases in EBITDA and operating income in the first quarter. Its EBITDA of $63.9 million represented a 37.4 percent increase over first quarter 2002 EBITDA of $46.5 million. EBITDA margin on total revenue for the first quarter this year increased to 46.3 percent, compared with an EBITDA margin of 36.5 percent for the same quarter last year. The Company attributed its strengthened margins primarily to higher profitability on increased service revenues, a lower level of analog-to-digital migrations this year, and lower sales volumes that reduced variable sales and marketing expenses. (For definition of EBITDA, please see Table 1.) Again, Dobson's EBITDA does not include results from its California operations, which have been shown as discontinued operations.
Operating income for the first quarter was $42.8 million, compared with operating income of $27.2 million for the same quarter last year (Table 1).
As previously reported, Dobson had 38,700 gross subscriber additions (postpaid) for the first quarter of 2003, compared with 53,400 for the same quarter last year. Total net subscriber additions for the quarter were 10,300, reflecting postpaid customer churn of 1.6 percent. For the first quarter last year, Dobson reported 12,500 total net subscriber additions and churn of 2.2 percent.
Dobson generated total revenue of $138.1 million for the first quarter ended March 31, 2003, an increase of 8.5 percent over total revenue of $127.3 million for the same quarter last year. Local service revenue increased 10.2 percent to $87.3 million, compared with $79.2 million for the first quarter last year.
The Company's roaming revenue increased to $45.4 million from $44.0 million in the first quarter of 2002. Roaming traffic on the Dobson network was approximately 28 percent higher in the first quarter of 2003 than it was in the same period last year, while roaming yields declined due to contract rate changes in the Company's long-term agreements with its major roaming partners.
In the first quarter, Dobson once again sold a high percentage -- 68 percent of gross additions -- of calling plans that concentrate call traffic on its network and those of its major roaming partners, which enables Dobson to provide wireless service to its customers more profitably.
Average revenue per user (ARPU) for the first quarter of 2003 was just below $42, in line with ARPU for the same quarter last year.
Cash cost per user (CCPU) on a year-over-year basis was again reduced through a combination of lower average off-network MOUs (minutes of use) per customer; reduced rates on those minutes; and operating improvements that were achieved primarily by the Company's call center teams. First quarter CCPU was approximately $21, a reduction of 16 percent compared with CCPU of almost $24.50 for the same period last year. CCPU reflects the average monthly cost incurred in providing service to a subscriber and excludes subscriber acquisition costs and depreciation and amortization expenses.
Monthly profit per subscriber, or the difference between ARPU and CCPU, was approximately $20, or almost $4 higher for the first quarter of 2003 than it was for the same three months of the previous year.
Capital expenditures were approximately $17.4 million in the first quarter. The Company expects its total capital expenditures for 2003 to be approximately $100 million.
At March 31, 2003, Dobson had $264.1 million in unrestricted cash (Table 2) and approximately $7.1 million in restricted cash in escrow related to the four properties that Dobson sold to Verizon Wireless in early 2002. At the end of the quarter, Dobson Operating Co. had approximately $96 million in available borrowing capacity under its credit facility, while the Dobson/Sygnet subsidiary had approximately $27 million in available borrowing capacity under its facility.
During the first quarter, Dobson cancelled approximately 60,200 shares of preferred stock, representing approximately $60.2 million (liquidation preference amount) of repurchased 12.25% and 13% Senior Exchangeable Preferred Stock. The Company may from time to time continue to repurchase preferred stock or senior notes in open market or privately negotiated transactions at prices that the Company deems appropriate.
Dobson's current balance sheet continues to include $200 million in Dobson Series AA Preferred Stock, which is owned by AT&T Wireless. Upon the closing of the California for Alaska property swap, AT&T Wireless will transfer to Dobson all of its outstanding Series AA preferred stock, and at that time Dobson plans to cancel the issue. Completion of the swap remains subject to federal regulatory approvals and certain other normal closing conditions, all of which are expected to occur.
Dobson CC Limited Partnership
As previously disclosed, Dobson's principal stockholder, Dobson CC Limited Partnership (DCCLP) has a credit agreement with Bank of America, N.A. DCCLP has pledged certain assets, including securities that represent controlling interests in DCCLP and in Dobson Communications, against the loan. On March 31, 2003, DCCLP and Bank of America announced that they had reached an agreement in principle to amend and restructure the loan, and they extended the current term of the loan to allow further time for negotiations. The term of the loan has since been extended until the close of business on Wednesday, May 7, 2003.
Under the agreement in principle, DCCLP will maintain controlling interest in Dobson Communications, and any change of control risk (under the credit agreements, indentures and preferred stock provisions to which Dobson Communications and its subsidiaries are parties) arising from a subsequent default under the restructured loan would be permanently eliminated.
The restructuring agreement in principle is not binding on either party and is subject to the completion of definitive documentation. Dobson Communications can provide no assurance that DCCLP and Bank of America will complete the transactions provided for in the agreement in principle.
As previously disclosed, if a default were to occur under the current credit agreements, and if the bank lender elected to foreclose on the collateral, Dobson could experience a change of control.
As previously disclosed, upon a change of control, Dobson and its subsidiary, Dobson/Sygnet Communications Company (Dobson/Sygnet), would be required to offer to purchase each of their outstanding senior notes at 101% of the principal amount, plus accrued and unpaid interest. In addition, Dobson would be required to offer to purchase its outstanding senior preferred stock at 101% of the aggregate liquidation preference. It is unlikely that the two entities would have the funds necessary to complete these repurchases.
If either failed to complete the purchases of the tendered senior notes, the note holders or their indenture trustees would be entitled to accelerate the maturity of the senior notes. If Dobson failed to complete the purchase of its outstanding senior preferred stock, the holders of those two series of senior preferred stock would be entitled to elect two additional directors to Dobson's board of directors. The Dobson and Dobson/Sygnet credit facilities prohibit them from making the required offers to purchase.
A change of control would also constitute an event of default under the bank credit facilities of Dobson and Dobson/Sygnet, entitling the lenders to accelerate the maturity of credit facility debt.
American Cellular Corporation
American Cellular reported operating income of $26.9 million for the first quarter of 2003, compared with operating income of $18.8 million for the first quarter last year (Table 6).
American Cellular's EBITDA increased approximately 26 percent to $43.9 million for the quarter, compared with $34.8 million for the same period last year. EBITDA margin was 41.2 percent, compared with 34.8 percent in the first quarter last year.
American Cellular reported 38,500 gross subscriber additions for the first quarter, compared with 46,800 for the first quarter last year. Approximately 80 percent of American's first quarter gross subscriber additions represented sales of local and preferred calling plans.
Net subscriber additions for the quarter were 1,700, compared with 10,100 for the same quarter last year. American's churn for the first quarter was 2.0 percent, in line with the first quarter of 2002.
American reported total revenue of $106.5 million for the first quarter of 2003, an increase of 6.6 percent over $99.9 million for the same period last year. Local service revenue at the company was $75.2 million for the quarter, an increase of 7.1 percent over the total of $70.2 million for the same quarter of 2002.
Roaming revenue for the first quarter of 2003 was approximately $27.7 million, compared with $26.6 million for the same quarter last year.
ARPU for the first quarters of 2003 and 2002 was approximately $38. CCPU in the first quarter was approximately $20, compared with CCPU of approximately $22 for the same period last year. Monthly profit per subscriber, or the difference between ARPU and CCPU, was therefore approximately $2 higher for the first quarter of 2003 than it was for the same three months of the previous year.
American Cellular's capital expenditures were approximately $13.2 million in the first quarter. American expects total capital expenditures for 2003 to be approximately $60 million.
American Cellular had approximately $14.5 million unrestricted cash and $34.4 million in restricted cash on its balance sheet as of March 31, 2003.
Since June 30, 2002, American Cellular has not been in compliance with the total debt leverage ratio covenant in its bank credit facility. Consequently, American Cellular's bank lenders have the right, but not the obligation, to accelerate repayment of the outstanding balance of its credit facility, which at March 31, 2003, was approximately $879.6 million. To date, no such acceleration has occurred. American Cellular's management is discussing a potential reorganization with its bank lenders and with representatives of certain ACC bondholders.
American Cellular's debt is non-recourse to Dobson Communications and to American Cellular's other owner, AT&T Wireless.
Conference Call
Dobson plans to conduct a conference call to discuss its first quarter results on Tuesday, May 6, 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) 818-5264 Pass code 498021
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 498021 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
Three Months Ended
March 31,
-----------------------------
2003 2002
------------ ------------
($ in thousands except per share data)
Operating Revenue
Service revenue $ 87,305 $ 79,216
Roaming revenue 45,400 43,969
Equipment & other revenue 5,388 4,076
------------ ------------
Total 138,093 127,261
------------ ------------
Operating Expenses
(excluding depreciation &
amortization)
Cost of service 32,775 36,840
Cost of equipment 9,032 10,104
Marketing & selling 14,458 16,398
General & administrative 17,921 17,408
------------ ------------
Total 74,186 80,750
------------ ------------
EBITDA (1) 63,907 46,511
Depreciation & amortization (21,114) (19,288)
------------ ------------
Operating income 42,793 27,223
Minority interest (1,619) (1,416)
Loss from investment in
joint venture -- (7,223)
Other income, net 1,959 1,160
------------ ------------
Income before interest &
income taxes 43,133 19,744
Interest expense (24,659) (28,685)
Income tax (expense)
benefit (7,020) 653
------------ ------------
Income (loss) from
continuing operations 11,454 (8,288)
Discontinued operations:
Income from discontinued
operations, net of taxes 3,592 7,255
Loss from discontinued
operations from investment
in joint venture -- (327)
Gain from disposal of
discontinued operations,
net of taxes -- 88,315
Gain from disposal of
discontinued operations
from investment in joint
venture -- 6,736
------------ ------------
Income before
cumulative effect of
change in accounting
principle 15,046 93,691
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 Income (loss) 15,046 (80,423)
Dividends on preferred
stock (20,530) (23,000)
Excess of face value over
repurchase price of
preferred stock 23,615 --
------------ ------------
Net Income (loss)
applicable to common
shareholders $ 18,131 $ (103,423)
============ ============
Basic and diluted net income (loss)
applicable to common
shareholders per common
share:
Continuing operations $ 0.13 $ (0.09)
Discontinued operations 0.04 1.11
Change in accounting
principle -- (1.90)
Dividends on and
redemption of preferred
stock 0.03 (0.25)
------------ ------------
Total basic and diluted
net income (loss)
applicable to common
shareholders per common
share $ 0.20 $ (1.13)
============ ============
Basic weighted average
common shares outstanding 90,111,815 91,642,105
============ ============
Diluted weighted average
common shares outstanding 91,789,635 91,642,105
============ ============
(1) EBITDA is defined as operating income excluding depreciation and
amortization. EBITDA margin is defined as EBITDA as a percentage
of our operating revenue. We believe EBITDA and EBITDA margin to
be relevant and useful information as these are important
performance measurements used by our management to measure the
operating profits or losses of our business. In addition, EBITDA
is a metric used to measure the performance of our management
team and to determine how and where to invest additional capital
or other resources. EBITDA and EBITDA margin should be
considered in addition to, but not as a substitute for, other
measures of financial performance reported in accordance with
accounting principles generally accepted in the United States of
America. EBITDA and EBITDA margin, as we have defined them, may
not be comparable to similarly titled measures reported by other
companies.
Table 2
Dobson Communications Corporation
Selected Balance Sheet and Statistical Data
Balance Sheet Data: March 31, 2003 December 31, 2002
-------------- -----------------
($ in millions) ($ in millions)
Cash and cash equivalents $ 264.1 $ 294.5
======== ========
Total Debt:
Dobson Operating Co.,
L.L.C. credit facility $ 490.1 $ 501.0
Dobson/Sygnet credit facility 278.3 285.4
DCC 10.875% Senior Notes, net 298.3 298.2
Dobson/Sygnet Senior Notes 188.5 188.5
-------- --------
Total debt $1,255.2 $1,273.1
======== ========
Preferred Stock:
Series AA Preferred Stock,
5.96% $ 200.0 $ 200.0
Senior Exchangeable Preferred
Stock, 12.25%, net (1) 343.1 362.3
Senior Exchangeable Preferred
Stock, 13.00%, net (2) 175.6 196.0
-------- --------
Total preferred stock $ 718.7 $ 758.3
======== ========
Three Months Ended Three Months Ended
March 31, 2003 March 31, 2002
-------------- --------------
($ in millions) ($ in millions)
Capital Expenditures: $ 17.4 $ 17.9
======== ========
(1) Net of deferred financing costs of $(3.7) million and $(4.2)
million and discount of $(7.4) million and $(8.4) million at
March 31, 2003 and December 31, 2002, respectively.
(2) Net of deferred financing costs of $(2.3) million and $(2.8)
million at March 31, 2003 and December 31, 2002, respectively.
Table 3
Dobson Communications Corporation
For the Quarter
Ended 3/31/02 6/30/02 9/30/02 12/31/02 3/31/03
---------- ---------- ---------- ---------- ----------
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 79,216 $ 86,867 $ 89,700 $ 86,717 $ 87,305
Roaming
revenue 43,969 51,273 55,827 50,141 45,400
Equipment &
other
revenue 4,076 4,205 5,531 4,382 5,388
---------- ---------- ---------- ---------- ----------
Total 127,261 142,345 151,058 141,240 138,093
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding
depreciation &
amortization)
Cost of
service 36,840 38,701 37,910 35,618 32,775
Cost of
equipment 10,104 10,341 11,298 10,401 9,032
Marketing &
selling 16,398 17,457 17,683 16,022 14,458
General &
adminis-
trative 17,408 17,653 18,617 18,734 17,921
---------- ---------- ---------- ---------- ----------
Total 80,750 84,152 85,508 80,775 74,186
---------- ---------- ---------- ---------- ----------
EBITDA (1) 46,511 58,193 65,550 60,465 63,907
---------- ---------- ---------- ---------- ----------
Depreciation &
amortization (19,288) (20,156) (20,876) (19,730) (21,114)
---------- ---------- ---------- ---------- ----------
Operating
Income $ 27,223 $ 38,037 $ 44,674 $ 40,735 $ 42,793
========== ========== ========== ========== ==========
Pops 5,711,500 5,711,500 5,711,500 5,711,500 5,711,500
Post-paid
Gross Adds 53,400 56,700 55,000 53,600 38,700
Net Adds 11,100 23,800 15,400 17,900 4,800
Subscribers 623,700 647,500 662,900 680,800 685,600
Churn 2.2% 1.7% 2.0% 1.8% 1.6%
Average
Service
Revenue per
Subscriber
(ARPU) $ 42 $ 45 $ 45 $ 42 $ 42
Average
Service
and Roaming
Revenue per
Subscriber $ 66 $ 72 $ 74 $ 67 $ 64
Pre-paid
Net Adds 2,000 (3,800) (4,200) (1,100) 2,300
Subscribers 15,500 11,700 7,500 6,400 8,700
Reseller
Net Adds (600) 100 3,500 1,900 3,200
Subscribers 15,900 16,000 19,500 21,400 24,600
Total
Net Adds 12,500 20,100 14,700 18,700 10,300
Subscribers 655,100 675,200 689,900 708,600 718,900
Penetration 11.5% 11.8% 12.1% 12.4% 12.6%
(1) Includes $1.7 million, $1.8 million, $1.9 million, $1.8 million
and $1.9 million of EBITDA for the quarters ended March 31, 2002,
June 30, 2002, September 30, 2002, December 31, 2002 and March
31, 2003, respectively, related to minority interests.
Table 4
Dobson Operating Company LLC
For the Quarter
Ended 3/31/02 6/30/02 9/30/02 12/31/02 3/31/03
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 45,043 $ 49,576 $ 50,583 $ 48,957 $ 48,997
Roaming
revenue 33,650 38,757 42,631 37,826 34,646
Equipment &
other
revenue 2,707 2,907 3,451 2,720 4,203
---------- ---------- ---------- ---------- ----------
Total 81,400 91,240 96,665 89,503 87,846
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding
depreciation &
amortization)
Cost of
service 25,887 27,112 26,627 24,770 23,294
Cost of
equipment 5,676 5,910 6,321 6,301 5,451
Marketing &
selling 10,364 10,975 11,217 9,770 9,397
General &
adminis-
trative 10,593 10,504 11,120 10,952 9,951
---------- ---------- ---------- ---------- ----------
Total 52,520 54,501 55,285 51,793 48,093
---------- ---------- ---------- ---------- ----------
EBITDA (1) 28,880 36,739 41,380 37,710 39,753
---------- ---------- ---------- ---------- ----------
Depreciation &
amortization (12,352) (12,838) (13,232) (12,589) (13,408)
---------- ---------- ---------- ---------- ----------
Operating
Income $ 16,528 $ 23,901 $ 28,148 $ 25,121 $ 26,345
========== ========== ========== ========== ==========
Pops 3,353,800 3,353,800 3,353,800 3,353,800 3,353,800
Post-paid
Gross Adds 31,500 34,700 33,000 31,700 24,400
Net Adds 7,200 14,000 6,100 7,400 1,300
Subscribers 335,200 349,200 355,300 362,700 364,000
Churn 2.3% 2.0% 2.5% 2.3% 2.1%
Average
Service
Revenue per
Subscriber
(ARPU) $ 44 $ 47 $ 47 $ 45 $ 44
Average
Service and
Roaming
Revenue per
Subscriber $ 78 $ 85 $ 87 $ 80 $ 76
Pre-paid
Net Adds 1,900 (3,700) (4,200) (1,400) 1,500
Subscribers 14,800 11,100 6,900 5,500 7,000
Reseller
Net Adds (900) 500 3,800 2,100 3,100
Subscribers 10,500 11,000 14,800 16,900 20,000
Total
Net Adds 8,200 10,800 5,700 8,100 5,900
Subscribers 360,500 371,300 377,000 385,100 391,000
Penetration 10.7% 11.1% 11.2% 11.5% 11.7%
(1) Includes $1.7 million, $1.8 million, $1.9 million, $1.8 million
and $1.9 million of EBITDA for the quarters ended March 31, 2002,
June 30, 2002, September 30, 2002, December 31, 2002 and March
31, 2003, respectively, related to minority interests.
Table 5
Dobson/Sygnet Communications Company
For the Quarter
Ended 3/31/02 6/30/02 9/30/02 12/31/02 3/31/03
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 34,076 $ 37,097 $ 39,118 $ 37,760 $ 38,308
Roaming
revenue 10,319 12,516 13,196 12,315 10,753
Equipment &
other
revenue 1,370 1,298 2,079 1,662 1,650
---------- ---------- ---------- ---------- ----------
Total 45,765 50,911 54,393 51,737 50,711
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding
depreciation &
amortization)
Cost of
service 10,953 11,589 11,284 10,847 9,946
Cost of
equipment 4,428 4,431 4,977 4,100 3,581
Marketing &
selling 6,035 6,482 6,465 6,252 5,061
General &
adminis-
trative 6,510 6,980 7,326 7,695 7,963
---------- ---------- ---------- ---------- ----------
Total 27,926 29,482 30,052 28,894 26,551
---------- ---------- ---------- ---------- ----------
EBITDA 17,839 21,429 24,341 22,843 24,160
---------- ---------- ---------- ---------- ----------
Depreciation &
amortization (6,740) (7,011) (7,244) (7,424) (7,586)
---------- ---------- ---------- ---------- ----------
Operating
Income $ 11,099 $ 14,418 $ 17,097 $ 15,419 $ 16,574
========== ========== ========== ========== ==========
Pops 2,357,700 2,357,700 2,357,700 2,357,700 2,357,700
Post-paid
Gross Adds 21,900 22,000 22,000 21,900 14,300
Net Adds 3,900 9,800 9,300 10,500 3,500
Subscribers 288,500 298,300 307,600 318,100 321,600
Churn 2.1% 1.4% 1.4% 1.2% 1.1%
Average
Service
Revenue per
Subscriber
(ARPU) $ 39 $ 42 $ 43 $ 40 $ 40
Average
Service and
Roaming
Revenue per
Subscriber $ 51 $ 56 $ 57 $ 53 $ 51
Pre-paid
Net Adds 100 (100) 0 300 800
Subscribers 700 600 600 900 1,700
Reseller
Net Adds 300 (400) (300) (200) 100
Subscribers 5,400 5,000 4,700 4,500 4,600
Total
Net Adds 4,300 9,300 9,000 10,600 4,400
Subscribers 294,600 303,900 312,900 323,500 327,900
Penetration 12.5% 12.9% 13.3% 13.7% 13.9%
Table 6
American Cellular Corporation
For the Quarter
Ended 3/31/02 6/30/02 9/30/02 12/31/02 3/31/03
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 70,187 $ 76,260 $ 79,430 $ 76,267 $ 75,176
Roaming
revenue 26,593 35,592 40,237 32,725 27,680
Equipment &
other
revenue 3,103 3,958 4,535 3,943 3,634
---------- ---------- ---------- ---------- ----------
Total 99,883 115,810 124,202 112,935 106,490
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding
depreciation &
amortization)
Cost of
service 27,374 29,273 28,392 25,372 23,569
Cost of
equipment 7,446 7,704 9,053 10,003 8,909
Marketing &
selling 13,574 14,813 15,031 14,205 12,391
General &
adminis-
trative 16,682 16,956 18,396 18,258 17,694
---------- ---------- ---------- ---------- ----------
Total 65,076 68,746 70,872 67,838 62,563
---------- ---------- ---------- ---------- ----------
EBITDA 34,807 47,064 53,330 45,097 43,927
---------- ---------- ---------- ---------- ----------
Depreciation &
amortization (15,982) (16,763) (16,951) (17,050) (17,004)
---------- ---------- ---------- ---------- ----------
Operating
Income $ 18,825 $ 30,301 $ 36,379 $ 28,047 $ 26,923
========== ========== ========== ========== ==========
Pops 4,997,000 4,997,000 4,997,000 4,997,000 4,997,000
Post-paid
Gross Adds 46,800 48,700 49,900 53,000 38,500
Net Adds 10,100 16,400 11,200 14,800 (200)
Subscribers 615,400 631,800 643,000 657,800 657,600
Churn 2.0% 1.7% 2.0% 2.0% 2.0%
Average
Service
Revenue per
Subscriber
(ARPU) $ 38 $ 40 $ 41 $ 39 $ 38
Average
Service and
Roaming
Revenue per
Subscriber $ 52 $ 59 $ 62 $ 55 $ 52
Pre-paid
Net Adds (200) (200) (300) 900 1,700
Subscribers 4,500 4,300 4,000 4,900 6,600
Reseller
Net Adds 200 (500) 4,300 1,600 200
Subscribers 22,300 21,800 26,100 27,700 27,900
Total
Net Adds 10,100 15,700 15,200 17,300 1,700
Subscribers 642,200 657,900 673,100 690,400 692,100
Penetration 12.9% 13.2% 13.5% 13.8% 13.9%