OKLAHOMA CITY, Aug. 9, 2004 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL) today reported a net loss applicable to common shareholders of $15.9 million, or $0.12 per share, for the second quarter ended June 30, 2004. Included in the loss were $8.3 million in dividends on mandatorily redeemable preferred stock and $1.9 million in dividends on Dobson's Series F convertible preferred stock. For the second quarter of 2004, Dobson also recorded a $5.1 million gain on redemption and repurchases of preferred stock and a $3.5 million deferred income tax benefit. (Table 1)
In the second quarter of 2003, the Company reported net income applicable to common shareholders of approximately $224.4 million, or $2.49 per share. Net income applicable to common shareholders for that period included a $194.7 million gain on redemption and repurchases of preferred stock, a $27.5 million gain on sale of discontinued operations, net of taxes, and $5.6 million in income from discontinued operations, net of taxes. In the second quarter of 2003, Dobson also reported $20.0 million in preferred dividends and $10.1 million in deferred income tax expense. Dobson adopted SFAS 150 as of July 1, 2003, which requires certain preferred stock dividends and repurchases to be included in the determination of net income.
Dobson reported EBITDA of $85.7 million for the second quarter of 2004, compared with $70.5 million for the quarter ended June 30, 2003. (Table 1)
Dobson reported total revenue of approximately $252.4 million for the second quarter of 2004, of which $50.6 million, or 20 percent, was roaming revenue. For the second quarter of 2003, Dobson reported total revenue of $143.5 million, of which $48.4 million, or 34 percent, was roaming revenue.
Total average service revenue per unit (ARPU) for the second quarter of 2004 was $40.03, compared with $41.99 for the same period last year. Total ARPU includes postpaid, prepaid and reseller ARPU.
Results for the operations of the Anchorage Metropolitan Service Area and Alaska Rural Service Area 2 are included only from the date of acquisition on June 17, 2003. Also reflected in current-year results is Dobson's acquisition of American Cellular, which was consummated on August 19, 2003. Complete results for American Cellular for all relevant periods are reflected in Table 5.
Finally, Dobson's current-year results include the operations of Michigan Rural Service Area 5, which the Company acquired on February 17,2004, and the operations of NPI-Omnipoint Wireless, LLC from its acquisition on June 15, 2004.
The State of Wisconsin designated Dobson as eligible for Universal Service Fund compensation during the second quarter. Dobson expects to recognize USF revenue beginning in the third quarter, and it expects that Wisconsin USF revenue will be approximately $450,000 per month.
Operating Trends
Dobson reported increases in service, equipment and selling expenses in the second quarter of 2004, compared with the first quarter of 2004 and the second quarter of 2003, relating primarily to the completion of the GSM overlay, the retail launch of GSM products in non-Alaska markets, and higher than expected levels of TDMA-to-GSM migrations.
As previously announced, Dobson Communications reported approximately 107,000 total gross subscriber additions for the second quarter of 2004, compared with a combined total of 94,500 gross additions for Dobson Cellular and American Cellular in the same quarter of 2003.
Dobson reported approximately 7,200 net subscriber additions for the second quarter, compared with the combined total of approximately 19,900 for its two subsidiaries in the same period of 2003. Postpaid customer churn was 1.7 percent in the second quarter, compared with 1.6 percent last year.
Net subscriber additions for the second quarter of 2004 included a net reduction of approximately 400 postpaid subscribers, a net reduction of 1,300 prepaid subscribers, and the net addition of 8,900 reseller subscribers. In the first quarter of 2004, the Company reported a net reduction of approximately 14,300 postpaid subscribers.
In addition, during the second quarter of 2004, the Company acquired approximately 31,100 new subscribers with the acquisition of NPI, of which 22,900 were postpaid and 10,200 were prepaid.
On a consolidated basis, Dobson Communications' subscriber base increased to 1,607,500 subscribers at June 30, 2004, compared with a combined total of 1,526,000 for Dobson Cellular and American Cellular at June 30, 2003. As of the end of the second quarter of 2004, the Company had approximately 152,600 customers on GSM postpaid and prepaid calling plans.
Roaming Trends
Dobson Communications reported approximately 360 million roaming minutes of use (MOUs) for the second quarter of 2004, with a blended yield of approximately $0.14 per MOU. Roaming MOUs for the second quarter of 2004 increased approximately 2 percent, compared with those for the same period in 2003 on a "same-store" basis, assuming that all acquisitions except NPI were effective throughout both periods.
The Company's two largest roaming partners, AT&T Wireless (NYSE:AWE) and Cingular, accounted for approximately 90 percent of total roaming MOUs for the second quarter of 2004. Approximately 82 million MOUs, or 23 percent of Dobson's second quarter roaming MOUs, were on its GSM network, compared with 10 percent in the first quarter this year.
Capital Expenditures and Balance Sheet
Dobson Communications' capital expenditures were approximately $48.3 million in the second quarter of 2004, reflecting the completion of the overlay of its Alaska markets with GSM/GPRS technology. In July 2004, Dobson completed the upgrade of its networks nationwide with EDGE software, which enables the Company to deliver wireless data services at significantly higher speeds.
The Company ended the second quarter of 2004 with approximately $99.6 million in cash and cash equivalents, approximately $2.4 billion in total debt, and approximately $365 million in preferred stock obligations (Table 2). During the second quarter of 2004, the Company completed a series of open market transactions to repurchase approximately $14.8 million (liquidation preference amount) of its 12 1/4% Senior Exchangeable Preferred Stock for approximately $10.4 million and approximately $3.5 million (liquidation preference amount) of its 13% Senior Exchangeable Preferred Stock for approximately $2.5 million. In July, the Company repurchased an additional $6.0 million (liquidation preference amount) of its 13% Senior Exchangeable Preferred Stock for approximately $4.5 million.
Outlook for the Second Half of 2004
Based on its results for the first half of the year, Dobson is revising its outlook for the remainder of 2004.
Dobson expects to report approximately 215,000 prepaid and postpaid gross subscriber additions for the second half of 2004, which would result in full-year prepaid and postpaid gross additions of approximately 386,500. In February 2004, the Company stated that it expected prepaid and postpaid gross subscriber additions for 2004 would be between 444,000 to 455,000.
Postpaid churn is expected to average approximately 2.1 percent for the second half. This would result in postpaid customer churn for the year of less than 2 percent, which would be in line with the Company's February guidance.
Dobson expects to report sequential improvement in total ARPU for the third and fourth quarters of 2004. For the second half of 2004, the Company expects total ARPU in a range of $40.50 to $41.00, which would result in full-year total ARPU of approximately $40.00. The Company had previously expected that total ARPU for 2004 would be in a range of $41.75 to $42.25.
Dobson expects that roaming MOUs for the second half will be in a range of 780 million to 820 million MOUs, which would result in full-year roaming MOUs of approximately 1.5 billion, in line with its earlier guidance of a range of negative 2 percent to growth of 10 percent.
Based primarily on lower expectations for ARPU and a high rate of TDMA-to-GSM migrations, Dobson now expects that second-half EBITDA will be in a range of $166 million to $176 million, which would result in full-year EBITDA of $335 million to $345 million. The Company had previously anticipated 2004 EBITDA in a range of $390 million to $425 million.
The Company's capital expenditures for 2004 are expected to be approximately $140 million.
Second Quarter 2004 Conference Call
On Tuesday, August 10, 2004, Dobson plans to hold a conference call to discuss its second quarter 2004 results. The call is scheduled to begin at 8 a.m. CDT (9 a.m. EDT). Investors will be able to listen by phone or via web-cast on Dobson's web site at www.dobson.net. During the call, management expects to review its expectations for 2004. Those interested may access the call by dialing:
Conference call (800) 665 0430 Pass code 514527
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 514527 The replay will be available by phone for two weeks.
For further analysis of the second quarter of 2004, please see the Company's quarterly report on Form 10-Q, which was filed today.
Dobson Communications is a leading provider of wireless phone services to rural and suburban markets in the United States. Headquartered in Oklahoma City, the Company owns wireless operations in 16 states. For additional information on Dobson 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 network equipment and/or handsets; 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 and other filings 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 Six Months Ended
June 30, June 30,
2004 2003 2004 2003
------------ ----------- ------------ -----------
($ in thousands except per share data)
(unaudited)
Operating Revenue
Service
revenue $ 189,288 $ 89,022 $ 370,988 $ 171,808
Roaming
revenue 50,606 48,427 92,682 89,346
Equipment &
other revenue 12,469 6,028 22,485 11,215
------------ ----------- ------------ -----------
Total 252,363 143,477 486,155 272,369
------------ ----------- ------------ -----------
Operating Expenses
(excluding
depreciation &
amortization)
Cost of service
(exclusive of
depreciation &
amortization
shown separately
below) 61,972 33,468 116,158 64,015
Cost of equipment 27,870 9,440 51,405 17,936
Marketing & selling 33,786 14,051 62,948 27,193
General &
administrative 43,056 15,985 86,832 32,592
------------ ----------- ------------ -----------
Total 166,684 72,944 317,343 141,736
------------ ----------- ------------ -----------
EBITDA(1) 85,679 70,533 168,812 130,633
Depreciation
& amortization (46,635) (21,323) (92,083) (41,262)
------------ ----------- ------------ -----------
Operating income 39,044 49,210 76,729 89,371
Minority interest (1,058) (1,785) (2,002) (3,405)
Interest expense (52,784) (23,450) (107,021) (47,322)
Gain from ex-
tinguishment of
debt -- -- 5,739 --
Gain on redemp-
tion and re-
purchases of
preferred stock 5,069 -- 5,069 --
Dividends on
mandatorily
redeemable
preferred stock (8,289) -- (16,907) --
Other income, net 442 2,653 1,718 4,612
------------ ----------- ------------ -----------
(Loss) income
before income
taxes (17,576) 26,628 (36,675) 43,256
Income tax
benefit
(expense) 3,529 (10,113) 7,503 (16,432)
------------ ----------- ------------ -----------
(Loss) income
from continuing
operations (14,047) 16,515 (29,172) 26,824
Discontinued
operations:
Income from
discontinued
operations,
net of taxes(2) -- 5,647 443 10,384
Gain on
discontinued
operations, net
of taxes -- 27,515 -- 27,515
------------ ----------- ------------ -----------
Net (loss) income (14,047) 49,677 (28,729) 64,723
Dividends on
preferred stock (1,859) (20,013) (3,717) (40,543)
Gain on re-
demption and
repurchases of
preferred stock -- 194,695 -- 218,310
------------ ----------- ------------ -----------
Net (loss) income
applicable to
common share-
holders $ (15,906) $ 224,359 $ (32,446) $ 242,490
============ =========== ============ ===========
Basic net (loss)
income applicable
to common share-
holders per
common share $ (0.12) $ 2.49 $ (0.24) $ 2.69
============ =========== ============ ===========
Basic weighted
average common
shares
outstanding 133,772,746 90,253,787 133,749,934 90,183,193
============ =========== ============ ===========
Diluted net
(loss) income
applicable to
common share-
holders per
common share $ (0.12) $ 2.42 $ (0.24) $ 2.63
============ =========== ============ ===========
Diluted weighted
average common
shares
outstanding 133,772,746 92,897,382 133,749,934 92,375,806
============ =========== ============ ===========
(1) EBITDA is defined as income (loss) from continuing operations
before interest income, interest expense, income taxes,
depreciation, amortization, other income, gain (loss) from
extinguishment of debt., dividends on mandatorily redeemable
preferred stock and minority interests. We believe that EBITDA
provides meaningful additional information concerning a company's
operating results and its ability to service its long-term debt
and other fixed obligations and to fund its continued growth.
Many financial analysts consider EBITDA to be a meaningful
indicator of an entity's ability to meet its future financial
obligations, and they consider growth in EBITDA to be an
indicator of future profitability, especially in a
capital-intensive industry such as wireless telecommunications.
You should not construe EBITDA as an alternative to net income
(loss) as determined in accordance with GAAP, as an alternative
to cash flows from operating activities as determined in
accordance with GAAP or a measure of liquidity. Because EBITDA is
not calculated in the same manner by all companies, it may not be
comparable to other similarly titled measures of other companies.
(2) Operating results from income from discontinued operations:
Three Months Ended June 30, Six Months Ended June 30,
2004 2003 2004 2003
------------ ----------- ------------ -----------
Service revenue $ -- $ 10,935 $ 2,383 $ 23,005
Roaming revenue -- 14,386 1,067 27,764
Equipment &
other revenue -- 556 106 1,160
------------ ----------- ------------ -----------
Total operating
revenue -- 25,877 3,556 51,929
------------ ----------- ------------ -----------
Cost of service -- 5,479 824 11,380
Cost of equipment -- 1,155 235 2,566
Marketing &
selling -- 2,285 605 4,798
General &
administrative -- 3,029 529 6,146
------------ ----------- ------------ -----------
Total operating
expenses (ex-
cluding depre-
ciation and
amortization) -- 11,948 2,193 24,890
------------ ----------- ------------ -----------
EBITDA -- 13,929 1,363 27,039
------------ ----------- ------------ -----------
Depreciation &
amortization -- (2,997) (647) (6,360)
Interest expense
& other -- (1,824) (2) (3,931)
Income tax
expense -- (3,461) (271) (6,364)
------------ ----------- ------------ -----------
Income from
discontinued
operations $ -- $ 5,647 $ 443 $ 10,384
============ =========== ============ ===========
Table 2
Dobson Communications Corporation
Selected Balance Sheet and Statistical Data
Balance Sheet Data:
June 30, 2004 December 31, 2003
-------- --------
($ in millions)
(unaudited)
Cash and cash equivalents
(unrestricted)(1) $ 99.6 $ 208.2
======== ========
Total Debt:
DCS credit facility $ 573.9 $ 548.6
DCC 10.875% Senior Notes, net 298.5 298.4
DCC 8.875% Senior Notes 594.5 650.0
Dobson/Sygnet Senior Notes -- 5.3
ACC 9.5% Senior Notes, net 13.3 12.9
ACC 10.0% Senior Notes 900.0 900.0
-------- --------
Total debt $2,380.2 $2,415.2
======== ========
Preferred Stock:
Senior Exchangeable Preferred
Stock, 12.25%, net(2) 45.1 59.2
Senior Exchangeable Preferred
Stock, 13.00%, net(3) 197.2 194.1
Series F Preferred Stock 122.5 122.5
-------- --------
Total preferred stock $ 364.8 $ 375.8
======== ========
Six Months Ended
June 30, 2004 June 30, 2003
-------- --------
($ in millions)
Capital Expenditures(4): $ 88.9 $ 48.5
======== ========
(1) Includes $15.2 million and $30.8 million of cash from American
Cellular at June 30, 2004 and December 31, 2003, respectively.
(2) Net of deferred financing costs of $(0.3) million and $(0.6)
million and discount of $(0.8) million and $(1.2) million at June
30, 2004 and December 31, 2003, respectively.
(3) Net of deferred financing costs of $(1.7) million and $(1.9)
million at June 30, 2004 and December 31, 2003, respectively.
(4) Does not include $28.3 million of capital expenditures for
American Cellular for the six months ended June 30, 2003.
Table 3
Dobson Communications Corporation
(Includes results of American Cellular
since its acquisition on 8/19/03)
For the Quarter Ended
6/30/2003 9/30/2003 12/31/2003 3/31/2004 6/30/2004
---------- ----------- ----------- ----------- -----------
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 89,022 $ 148,344 $ 185,708 $ 181,699 $ 189,288
Roaming
revenue 48,427 55,721 56,132 42,075 50,606
Equipment
& other
revenue 6,028 9,005 8,475 10,017 12,469
---------- ----------- ----------- ----------- -----------
Total 143,477 213,070 250,315 233,791 252,363
---------- ----------- ----------- ----------- -----------
Operating
Expenses
(excluding
depreciation
& amortization)
Cost of
service 33,468 49,958 59,463 54,186 61,972
Cost of
equipment 9,440 16,924 21,752 23,534 27,870
Marketing &
Selling 14,051 21,607 30,747 29,162 33,786
General &
adminis-
trative 15,985 29,324 44,192 43,776 43,056
---------- ----------- ----------- ----------- -----------
Total 72,944 117,813 156,154 150,658 166,684
---------- ----------- ----------- ----------- -----------
EBITDA
(1)(2) $ 70,533 $ 95,257 $ 94,161 $ 83,133 $ 85,679
========== =========== =========== =========== ===========
Pops 5,623,900 10,620,900 10,620,900 10,790,300 11,436,800
Post-paid
Gross Adds 38,100 68,800 89,100 68,700 73,500
Net Adds 11,300 12,000 8,200 (14,300) (400)
Subscribers 772,900 1,441,800 1,451,700 1,457,600 1,480,100
Churn 1.4% 1.7% 1.9% 1.9% 1.7%
Average
Service
Revenue
per
Subscriber
(ARPU) $ 43.26 $ 43.68 $ 42.16 $ 40.86 $ 42.33
Pre-paid
Gross Adds 3,600 7,000 12,600 16,000 13,300
Net Adds 800 1,700 4,700 7,400 (1,300)
Subscribers 20,900 30,600 28,700 36,400 45,300
Reseller
Gross Adds 6,500 11,000 15,400 14,900 20,200
Net Adds 2,400 900 1,500 1,500 8,900
Subscribers 34,700 70,200 71,700 73,200 82,100
Total
Gross Adds 48,200 86,800 117,100 99,600 107,000
Net Adds 14,500 14,600 14,400 (5,400) 7,200
Subscribers 828,500 1,542,600 1,552,100 1,567,200 1,607,500
ARPU $ 41.99 $ 41.71 $ 40.01 $ 38.83 $ 40.03
Penetra-
tion 14.7% 14.5% 14.6% 14.5% 14.1%
(1) Includes $2.1 million, $2.2 million, $1.7 million, $1.3 million
and $1.6 million of EBITDA for the quarters ended June 30, 2003,
September 30, 2003, December 31, 2003, March 31, 2004 and June
30, 2004, respectively, related to minority interests.
(2) A reconciliation of EBITDA to net income from continuing
operations as determined in accordance with generally accepted
accounting principles is as follows:
Income (loss)
from continuing
operations $ 16,515 $(22,472) $(55,053) $(15,125) $(14,047)
Add back non-
EBITDA items in-
cluded in income
from continuing
operations:
Depreciation
& amortization (21,323) (32,601) (45,560) (45,448) (46,635)
Interest expense (23,450) (37,869) (52,957) (54,238) (52,784)
Minority Interest (1,785) (1,846) (1,291) (944) (1,058)
(Loss) gain from
extinguishment of
debt -- (28,102) (24,175) 5,739 --
(Loss) gain from
redemption of
preferred stock -- -- (26,777) -- 5,069
Dividends on
mandatorily
redeemable
preferred stock -- (17,833) (12,735) (8,618) (8,289)
Other income
(expense) 2,653 (2,313) 1,530 1,277 442
Income tax
expense (10,113) 2,835 12,751 3,974 3,529
-------- -------- -------- -------- --------
EBITDA $ 70,533 $ 95,257 $ 94,161 $ 83,133 $ 85,679
======== ======== ======== ======== ========
Table 4
Dobson Cellular Systems
(Formerly DOC and Sygnet)
For the Quarter Ended
6/30/2003 9/30/2003 12/31/2003 3/31/2004 6/30/2004
---------- ----------- ----------- ----------- -----------
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 89,022 $ 109,714 $ 107,335 $ 104,327 $ 109,460
Roaming
revenue 48,427 41,182 30,722 23,962 29,206
Equipment
& other
revenue 6,028 7,749 6,357 7,330 8,541
---------- ----------- ----------- ----------- -----------
Total 143,477 158,645 144,414 135,619 147,207
---------- ----------- ----------- ----------- -----------
Operating
Expenses
(excluding
deprecia-
tion &
amortiza-
tion)
Cost of
service 33,468 38,536 36,013 32,218 38,542
Cost of
equipment 9,440 12,424 11,148 13,410 15,042
Marketing
& selling 14,051 15,053 16,283 15,947 18,538
General &
adminis-
trative 15,980 20,997 23,010 23,284 22,920
---------- ----------- ----------- ----------- -----------
Total 72,939 87,010 86,454 84,859 95,042
---------- ----------- ----------- ----------- -----------
EBITDA
(1)(2) $ 70,538 $ 71,635 $ 57,960 $ 50,760 $ 52,165
========== ========== =========== ========== ===========
Pops 5,623,900 5,623,900 5,623,900 5,793,300 6,439,800
Post-paid
Gross Adds 38,100 47,700 45,700 37,800 40,200
Net Adds 11,300 9,700 2,700 (10,000) (1,100)
Subscribers 772,900 776,400 780,800 791,000 812,800
Churn 1.4% 1.6% 1.8% 2.0% 1.7%
Average
Service
Revenue
per Sub-
scriber
(ARPU) $ 43.26 $ 46.02 $ 45.14 $ 43.32 $ 44.95
Pre-paid
Gross Adds 3,600 5,700 7,000 9,000 8,300
Net Adds 800 1,600 2,300 4,200 (500)
Subscribers 20,900 22,500 18,200 22,700 32,400
Reseller
Gross Adds 6,500 8,900 10,000 9,200 10,100
Net Adds 2,400 1,100 1,900 1,200 3,500
Subscribers 34,700 42,000 43,900 45,100 48,600
Total
Gross Adds 48,200 62,300 62,700 56,000 58,600
Net Adds 14,500 12,400 6,900 (4,600) 1,900
Subscribers 828,500 840,900 842,900 858,800 893,800
ARPU $ 41.99 $ 43.81 $ 42.50 $ 40.87 $ 42.17
Penetra-
tion 14.7% 15.0% 15.0% 14.8% 13.9%
(1) Includes $2.1 million, $2.2 million, $1.7 million, $1.3 million
and $1.6 million of EBITDA for the quarters ended June 30, 2003,
September 30, 2003, December 31, 2003, March 31, 2004 and June
30, 2004, respectively, related to minority interests.
(2) A reconciliation of EBITDA to net income from continuing
operations as determined in accordance with generally accepted
accounting principles is as follows:
Income (loss)
from continuing
operations $ 21,346 $ 1,094 $ 3,771 $ 10,837 $ (1,302)
Add back non-
EBITDA items in-
cluded in net
income from
continuing
operations:
Depreciation &
amortization (21,206) (23,975) (25,774) (25,217) (25,716)
Interest expense (16,159) (13,842) (7,701) (9,216) (28,754)
Minority Interest (1,785) (1,847) (1,291) (944) (1,059)
Loss from
extinguishment
of debt -- (28,102) (24,175) (349) --
Other income
(expense) 3,043 (2,105) 3,838 2,445 1,264
Income tax
(expense)
benefit (13,085) (670) 914 (6,642) 798
-------- -------- -------- -------- --------
EBITDA $ 70,538 $ 71,635 $ 57,960 $ 50,760 $ 52,165
========= ======== ======== ======== =========
Table 5
American Cellular Corporation
For the Quarter Ended
Predecessor
--------------------------
7/1/03 -
6/30/2003 8/18/2003
----------- -----------
($ in thousands except per subscriber data)
(unaudited)
Operating Revenue
Service revenue $ 78,120 $ 42,492
Roaming revenue 34,718 19,989
Equipment & other revenue 4,099 2,819
----------- -----------
Total 116,937 65,300
----------- -----------
Operating Expenses
(excluding depreciation
& amortization)
Cost of service 24,854 13,802
Cost of equipment 9,182 5,527
Marketing & selling 12,442 6,348
General & administrative 17,253 9,488
----------- -----------
Total 63,731 35,165
----------- -----------
EBITDA(1) $ 53,206 $ 30,135
=========== ===========
Pops 4,997,000 4,997,000
Post-paid
Gross Adds 37,900 22,800
Net Adds 3,500 2,000
Subscribers 661,100 663,100
Churn 1.7% 2.0%
Average Service Revenue
per Subscriber (ARPU) $ 38.84 $ 39.55
Pre-paid
Gross Adds 3,200 1,800
Net Adds 1,000 400
Subscribers 7,600 8,000
Reseller
Gross Adds 5,200 2,500
Net Adds 900 (400)
Subscribers 28,800 28,400
Total
Gross Adds 46,300 27,100
Net Adds 5,400 2,000
Subscribers 697,500 699,500
ARPU $ 37.48 $ 38.02
Penetration 14.0% 14.0%
ACC
------------------------------------------------
8/19/03 -
9/30/2003 12/31/2003 3/31/2004 6/30/2004
---------- ---------- ---------- ----------
($ in thousands except per subscriber data)
(unaudited)
Operating Revenue
Service revenue $ 38,630 $ 78,372 $ 77,372 $ 79,828
Roaming revenue 14,539 25,410 18,113 21,401
Equipment & other
revenue 1,994 3,679 4,424 5,665
---------- ---------- ---------- ----------
Total 55,163 107,461 99,909 106,894
---------- ---------- ---------- ----------
Operating Expenses
(excluding deprecia-
tion & amortization)
Cost of service 11,612 23,849 22,148 23,611
Cost of equipment 4,500 10,604 10,124 12,828
Marketing & selling 6,553 14,464 13,215 15,248
General &
administrative 8,872 22,338 22,044 21,688
---------- ---------- ---------- ----------
Total 31,537 71,255 67,531 73,375
---------- ---------- ---------- ----------
EBITDA(1) $ 23,626 $ 36,206 $ 32,378 $ 33,519
========== ========== ========== ==========
Pops 4,997,000 4,997,000 4,997,000 4,997,000
Post-paid
Gross Adds 21,100 43,400 30,900 33,300
Net Adds 2,300 5,500 (4,300) 700
Subscribers 665,400 670,900 666,600 667,300
Churn 2.1% 1.9% 1.8% 1.6%
Average Service
Revenue per
Subscriber (ARPU) $ 41.09 $ 38.67 $ 37.96 $ 39.22
Pre-paid
Gross Adds 1,300 5,600 7,000 5,000
Net Adds 100 2,400 3,200 (800)
Subscribers 8,100 10,500 13,700 12,900
Reseller
Gross Adds 2,100 5,400 5,700 10,100
Net Adds (200) (400) 300 5,400
Subscribers 28,200 27,800 28,100 33,500
Total
Gross Adds 24,500 54,400 43,600 48,400
Net Adds 2,200 7,500 (800) 5,300
Subscribers 701,700 709,200 708,400 713,700
ARPU $ 39.38 $ 37.03 $ 36.39 $ 37.42
Penetration 14.0% 14.2% 14.2% 14.3%
(1) A reconciliation of EBITDA to net income (loss) as determined in
accordance with generally accepted accounting principles is as
follows:
Predecessor
--------------------------
7/1/03 -
6/30/2003 8/18/2003
----------- -----------
($ in thousands except per subscriber data)
(unaudited)
Net income (loss)
from continuing operations $ 2,103 $ 2,642
Add back non-EBITDA items
included in net income (loss):
Depreciation & amortization (17,573) (9,014)
Interest expense (31,211) (15,672)
Dividends on mandatorily
redeemable preferred stock -- (703)
Other income (loss) (917) 58
Income tax (expense) benefit (1,402) (2,162)
----------- -----------
EBITDA $ 53,206 $ 30,135
=========== ===========
ACC
------------------------------------------------
8/19/03 -
9/30/2003 12/31/2003 3/31/2004 6/30/2004
---------- ---------- ---------- ----------
($ in thousands except per subscriber data)
(unaudited)
Net income (loss)
from continuing
operations $ 656 $ (5,005) $ (7,364) $ (7,499)
Add back non-EBITDA
items included in
net income (loss):
Depreciation &
amortization (8,861) (19,786) (20,231) (20,919)
Interest expense (13,849) (23,924) (23,675) (23,692)
Dividends on
mandatorily redeemable
preferred stock -- -- -- --
Other income (loss) 142 (568) (350) (1,003)
Income tax (expense)
benefit (402) 3,067 4,514 4,596
---------- ---------- ---------- ----------
EBITDA $ 23,626 $ 36,206 $ 32,378 $ 33,519
========== ========== ========== ==========