OKLAHOMA CITY, Nov. 4, 2004 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL) today reported a net loss applicable to common shareholders of $13.5 million, or $0.10 per share, for the third quarter ended September 30, 2004. This compares with a net loss applicable to common shareholders of $21.2 million, or $0.19 per share, for the third quarter of 2003, which included a $28.1 million loss from extinguishment of debt. (See Table 1.) In the second quarter of 2004, Dobson reported a net loss applicable to common shareholders of $15.9 million, or $0.12 per share.
Dobson's current-year results include the operations of Michigan 5 Rural Service Area (RSA), which the Company acquired on February 17, 2004, and the Michigan markets acquired from NPI-Omnipoint Wireless, LLC on June 15, 2004. The Company's results of operations for the third quarter of 2003 include the operations of American Cellular Corporation from and after the date of acquisition on August 19, 2003. Complete results for American Cellular for all relevant periods are reflected in Table 5.
Dobson reported EBITDA of $95.1 million for the third quarter of 2004, compared with $95.3 million for the third quarter of 2003 and $85.7 million for the second quarter of 2004. Please see Table 3 for EBITDA reconciliation to GAAP measures.
Total revenue was $272.4 million for the third quarter of 2004, of which $62.2 million, or 23 percent, was roaming revenue. For the third quarter of 2003, Dobson reported total revenue of $213.1 million, of which $55.7 million, or 26 percent, was roaming revenue. For the second quarter of the current year, total revenue was $252.4 million, of which $50.6 million, or 20 percent, was roaming revenue.
Average service revenue per unit (ARPU) per month for the third quarter of 2004 was $41.20, compared with $41.71 for the same period last year and $40.03 for the second quarter of 2004. ARPU includes postpaid, prepaid and reseller ARPU.
In the third quarter of 2004, Dobson recognized $1.2 million in USF revenue related to its newly approved ETC designation in Wisconsin. Late in the third quarter, Dobson's subsidiary, Dobson Cellular Systems, Inc., was designated an Eligible Telecommunications Carrier (ETC) by the Public Service Commission of Michigan and by the Oklahoma Corporation Commission. With these designations, Dobson is eligible to receive additional Universal Service Fund (USF) support, which facilitates the delivery and improvement of telecommunications services to rural markets.
Based on the completion of routine ETC procedures, Dobson plans to recognize USF revenue of approximately $2 million in the fourth quarter of 2004.
Roaming Trends
Dobson Communications reported approximately 450 million roaming minutes of use (MOUs) for the third quarter of 2004, with a blended yield of approximately $0.138 per MOU. Roaming MOUs for the third quarter of 2004 reflected an approximately 1 percent increase over those for the third quarter of 2003 on a "same-store" basis that includes Michigan RSA 5, NPI and American Cellular throughout both periods. On this basis, for the third quarter of 2003, the Company would have reported approximately 446 million roaming MOUs.
Approximately 191 million roaming MOUs, or 43 percent of Dobson's third quarter roaming MOUs, were on its GSM network, compared with 25 percent in the second quarter of 2004 and 10 percent in the first quarter of 2004.
Operating Trends
As previously announced, Dobson reported approximately 121,600 total gross subscriber additions for the third quarter of 2004, of which approximately 69,000 selected GSM calling plans. Approximately 97,700 of its third quarter gross additions selected postpaid and prepaid calling plans, while approximately 23,900 related to resellers. (See Table 3.)
This compared with approximately 107,000 total gross subscriber additions in the second quarter of 2004, of which approximately 39,100 selected GSM calling plans.
For the third quarter of 2003, the Company reported approximately 113,900 gross additions for the combined operations of Dobson and American Cellular.
Postpaid customer churn was 2.05 percent for the third quarter of 2004, compared with 1.7 percent for the second quarter of 2004 and for the third quarter of 2003.
For the third quarter of 2004, the Company reported net subscriber additions of approximately 1,200, bringing total subscribers served as of September 30, 2004 to approximately 1,608,700. The Company's subscriber base declined by approximately 7,500 postpaid and 200 prepaid subscribers, while it added approximately 8,900 reseller subscribers. Dobson reported approximately 7,200 net subscriber additions for the second quarter of 2004 and 16,600 in last year's third quarter for its combined operations.
During the third quarter of 2004, approximately 74,500 TDMA subscribers migrated to GSM calling plans, compared with 68,700 migrations in the second quarter of 2004. The Company noted that the pace of migrations slowed in September 2004, compared with July and August.
At September 30, 2004, approximately 286,500 customers, or 18 percent of its total subscriber base, were on GSM calling plans, compared with approximately 152,600 GSM subscribers, or 9.5 percent of its subscriber base, at June 30, 2004.
As of September 30, 2004, approximately 70 percent of Dobson's postpaid subscribers were under contract and the average remaining life of contract was 13 months.
Capital Expenditures and Balance Sheet
Capital expenditures were approximately $28.9 million in the third quarter of 2004, bringing the Company's nine-month total to $117.8 million.
The Company ended the third quarter of 2004 with approximately $63.5 million in cash and cash equivalents, approximately $2.4 billion in total debt, and approximately $359 million in preferred stock obligations. (See Table 2.)
On October 26, 2004, Dobson Cellular Systems, Inc., a wholly owned subsidiary of Dobson Communications, announced the pricing of a private placement of $825 million of Senior Secured Notes, consisting of $250 million of 8-3/8% First Priority Senior Secured Notes due 2011, $250 million of First Priority Senior Secured Floating Rate Notes due 2011 and $325 million of 9-7/8% Second Priority Senior Secured Notes due 2012. The First Priority Senior Secured Floating Rate Notes due 2011 will bear interest at a rate equal to three-month LIBOR plus 4.75%.
The proceeds from the debt offering will be used to refinance outstanding borrowings under the existing senior credit facility of Dobson Cellular, repurchase a portion of Dobson Communications' outstanding debt securities in one or more privately negotiated transactions and for general corporate purposes, including the funding of the subsidiary's planned acquisition of RFB Cellular, Inc. As part of the refinancing, Dobson Cellular expects to amend its existing credit facility to, among other things, eliminate the term loan portion, amend the revolving portion to provide for maximum borrowing of $75 million, and amend certain financial covenants. These transactions are expected to close on Monday, November 8, 2004.
Dobson has bid to acquire the Michigan wireless assets of RFB Cellular and certain affiliates in a sale pursuant to Bankruptcy Code section 365. The auction is scheduled for December 14, 2004 and other bidders could submit higher bids. The acquisition is subject to bankruptcy court approval, scheduled for hearing on December 16, 2004.
Third Quarter 2004 Conference Call
On Friday, November 5, 2004, Dobson plans to hold a conference call to discuss its third quarter 2004 results. The call is scheduled to begin at 9 a.m. CT (10 a.m. ET). 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 is likely to discuss its expectations for the remainder of 2004. Those interested may access the call by dialing:
Conference call (800) 810-0924 Pass code 971039 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 971039 The replay will be available by phone for two weeks.
For further analysis of the third quarter of 2004, please see the Company's quarterly report on Form 10-Q, which Dobson plans to file on Tuesday, November 9, 2004.
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; the potential that a competitor may outbid Dobson for the RFB property, 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 Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
($ in thousands except per share data)
(unaudited)
Operating Revenue
Service
revenue $ 198,740 $ 148,344 $ 569,728 $ 320,152
Roaming
revenue 62,221 55,721 154,902 145,067
Equipment &
other revenue 11,438 9,005 33,923 20,220
------------ ------------ ------------ ------------
Total 272,399 213,070 758,553 485,439
------------ ------------ ------------ ------------
Operating Expenses
(excluding
depreciation &
amortization)
Cost of service
(exclusive of
depreciation &
amortization
shown separately
below) 69,299 49,958 185,457 113,973
Cost of
equipment 30,242 16,924 81,647 34,860
Marketing &
selling 32,816 21,607 95,763 48,800
General &
administrative 44,893 29,324 131,725 61,916
------------ ------------ ------------ ------------
Total 177,250 117,813 494,592 259,549
------------ ------------ ------------ ------------
EBITDA (1) 95,149 95,257 263,961 225,890
Depreciation &
amortization (49,456) (32,601) (141,539) (73,864)
------------ ------------ ------------ ------------
Operating income 45,693 62,656 122,422 152,026
Interest
expense (54,456) (37,869) (161,477) (85,190)
Dividends on
mandatorily
redeemable
preferred
stock (8,290) (17,833) (25,197) (17,833)
Other income
(expense), net 511 (2,313) 2,230 2,299
(Loss) gain from
extinguishment
of debt -- (28,102) 5,739 (28,102)
Gain (loss) on
redemption and
repurchases of
mandatorily
redeemable
preferred stock 1,410 -- 6,478 --
Minority
interests in
income of
subsidiaries (1,512) (1,846) (3,514) (5,251)
------------ ------------ ------------ ------------
(Loss) income
before income
taxes (16,644) (25,307) (53,319) 17,949
Income tax
benefit
(expense) 5,636 2,835 13,139 (13,596)
------------ ------------ ------------ ------------
(Loss) income
from continuing
operations (11,008) (22,472) (40,180) 4,353
Discontinued
operations:
Income from
discontinued
operations,
net of
taxes (2) -- 2,158 443 12,541
Gain on
discontinued
operations,
net of taxes -- -- -- 27,515
------------ ------------ ------------ ------------
Net (loss)
income (11,008) (20,314) (39,737) 44,409
Dividends on
preferred
stock (2,473) (878) (6,190) (41,421)
Gain on re-
demption and
repurchases
of preferred
stock -- -- -- 218,310
------------ ------------ ------------ ------------
Net (loss) in-
come applicable
to common share-
holders $ (13,481) $ (21,192) $ (45,927) $ 221,298
============ ============ ============ ============
Basic net (loss)
income applic-
able to common
shareholders per
common share $ (0.10) $ (0.19) $ (0.34) $ 2.28
============ ============ ============ ============
Basic weighted
average common
shares out-
standing 133,790,430 110,588,140 133,763,531 97,059,585
============ ============ ============ ============
Diluted net
(loss) income
applicable to
common share-
holders per
common share $ (0.10) $ (0.19) $ (0.34) $ 2.21
============ ============ ============ ============
Diluted weighted
average common
shares out-
standing 133,790,430 110,588,140 133,763,531 100,128,791
============ ============ ============ ============
(1) EBITDA is defined as income (loss) from continuing operations
before depreciation and amortization, interest expense, dividends
on mandatorily redeemable preferred stock, other income
(expense), net, gain (loss) from extinguishment of debt, gain
(loss) from redemption and repurchases of mandatorily redeemable
preferred stock, minority interests in income of subsidiaries and
income tax benefit (expense). 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 Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
-------- -------- -------- --------
Service revenue $ -- $ 4,419 $ 2,383 $ 27,424
Roaming revenue -- 5,754 1,067 33,518
Equipment &
other revenue -- 183 106 1,343
-------- -------- -------- --------
Total operating
revenue -- 10,356 3,556 62,285
-------- -------- -------- --------
Cost of service
(exclusive of
depreciation &
amortization
shown separately
below) -- 2,247 824 13,627
Cost of
equipment -- 499 235 3,065
Marketing &
selling -- 1,130 605 5,928
General &
administrative -- 1,099 529 7,245
-------- -------- -------- --------
Total operating
expenses (ex-
cluding depre-
ciation and
amortization) -- 4,975 2,193 29,865
-------- -------- -------- --------
EBITDA -- 5,381 1,363 32,420
-------- -------- -------- --------
Depreciation &
amortization -- (1,231) (647) (7,591)
Interest ex-
pense & other -- (670) (2) (4,601)
Income tax
expense -- (1,322) (271) (7,687)
-------- -------- -------- --------
Income from
discontinued
operations $ -- $ 2,158 $ 443 $ 12,541
======== ======== ======== ========
Table 2
Dobson Communications Corporation
Selected Balance Sheet and Statistical Data
Balance Sheet Data: September 30, 2004 December 31, 2003
------------------ -----------------
($ in millions) ($ in millions)
(unaudited)
Cash and cash equivalents
(unrestricted) (1) $ 63.5 $ 208.2
======== ========
Total Debt:
DCS credit facility $ 565.5 $ 548.6
DCC 10.875% Senior Notes, net 298.6 298.4
DCC 8.875% Senior Notes 594.5 650.0
Dobson/Sygnet Senior Notes -- 5.3
ACC 9.5% Senior Notes, net 13.6 12.9
ACC 10.0% Senior Notes 900.0 900.0
-------- --------
Total debt 2,372.2 $2,415.2
======== ========
Preferred Stock:
Senior Exchangeable Preferred
Stock, 12.25%, net (2) 45.2 59.2
Senior Exchangeable Preferred
Stock, 13.00%, net (3) 191.4 194.1
Series F Preferred Stock 122.5 122.5
-------- --------
Total preferred stock $ 359.1 $ 375.8
======== ========
Nine Months Ended
September 30,
2004 2003
-------- --------
($ in millions)
Capital Expenditures (4): $ 117.8 $ 106.0
======== ========
(1) Includes $7.2 million and $30.8 million of cash from American
Cellular at September 30, 2004 and December 31, 2003,
respectively.
(2) Net of deferred financing costs of $(0.2) million and $(0.6)
million and discount of $(0.8) million and $(1.2) million at
September 30, 2004 and December 31, 2003, respectively.
(3) Net of deferred financing costs of $(1.5) million and $(1.9)
million at September 30, 2004 and December 31, 2003,
respectively.
(4) Does not include $33.5 million of capital expenditures for
American Cellular for the period from January 1, 2003 to August
18, 2003.
Table 3
Dobson Communications Corporation
(Includes results of American Cellular
since its acquisition on 8/19/03)
For the Quarter Ended
9/30/2003 12/31/2003 3/31/2004 6/30/2004 9/30/2004
---------- ---------- ---------- ---------- ----------
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 148,344 $ 185,708 $ 181,699 $ 189,288 $ 198,740
Roaming
revenue 55,721 56,132 42,075 50,606 62,221
Equipment &
other
revenue 9,005 8,475 10,017 12,469 11,438
---------- ---------- ---------- ---------- ----------
Total 213,070 250,315 233,791 252,363 272,399
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding
depreciation
& amortization)
Cost of
service 49,958 59,463 54,186 61,972 69,299
Cost of
equipment 16,924 21,752 23,534 27,870 30,242
Marketing &
Selling 21,607 30,747 29,162 33,786 32,816
General &
adminis-
trative 29,324 44,192 43,776 43,056 44,893
---------- ---------- ---------- ---------- ----------
Total 117,813 156,154 150,658 166,684 177,250
---------- ---------- ---------- ---------- ----------
EBITDA (1)(2) $ 95,257 $ 94,161 $ 83,133 $ 85,679 $ 95,149
========== ========== ========== ========== ==========
Pops 10,620,900 10,620,900 10,790,300 11,436,800 11,436,800
Post-paid
Gross Adds 68,800 89,100 68,700 73,500 83,200
Net Adds 12,000 8,200 (14,300) (400) (7,500)
Subscribers 1,441,800 1,451,700 1,457,600 1,480,100 1,472,600
Churn 1.7% 1.9% 1.9% 1.7% 2.0%
Average
Service
Revenue per
Subscriber
(ARPU) $ 43.68 $ 42.16 $ 40.86 $ 42.33 $ 43.92
Pre-paid
Gross Adds 7,000 12,600 16,000 13,300 14,500
Net Adds 1,700 4,700 7,400 (1,300) (200)
Subscribers 30,600 28,700 36,400 45,300 45,100
Reseller
Gross Adds 11,000 15,400 14,900 20,200 23,900
Net Adds 900 1,500 1,500 8,900 8,900
Subscribers 70,200 71,700 73,200 82,100 91,000
Total
Gross Adds 86,800 117,100 99,600 107,000 121,600
Net Adds 14,600 14,400 (5,400) 7,200 1,200
Subscribers 1,542,600 1,552,100 1,567,200 1,607,500 1,608,700
ARPU $ 41.71 $ 40.01 $ 38.83 $ 40.03 $ 41.20
Penetration 14.5% 14.6% 14.5% 14.1% 14.1%
(1) Includes $2.2 million, $1.7 million, $1.3 million, $1.6 million
and $1.9 million of EBITDA for the quarters ended September 30,
2003, December 31, 2003, March 31, 2004, June 30, 2004 and
September 30, 2004 respectively, related to minority interests.
(2) A reconciliation of EBITDA to loss from continuing
operations as determined in accordance with generally accepted
accounting principles is as follows:
Loss from
continuing
operations $ (22,472) $ (55,053) $ (15,125) $ (14,047) $ (11,008)
Add back non-
EBITDA items
included in
loss from
continuing
operations:
Depreciation &
amortization (32,601) (45,560) (45,448) (46,635) (49,456)
Interest
expense (37,869) (52,957) (54,238) (52,784) (54,456)
Dividends on
mandatorily
redeemable
preferred
stock (17,833) (12,735) (8,618) (8,289) (8,290)
Other
(expense)
income, net (2,313) 1,530 1,277 442 511
(Loss) gain
from extin-
guishment of
debt (28,102) (24,175) 5,739 -- --
(Loss) gain
from redemp-
tion of pre-
ferred stock -- (26,777) -- 5,069 1,410
Minority
interests in
income of
subsidiaries (1,846) (1,291) (944) (1,058) (1,512)
Income tax
benefit 2,835 12,751 3,974 3,529 5,636
---------- ---------- ---------- ---------- ----------
EBITDA $ 95,257 $ 94,161 $ 83,133 $ 85,679 $ 95,149
========== ========== ========== ========== ==========
Table 4
Dobson Cellular Systems
(Formerly DOC and Sygnet)
For the Quarter Ended
9/30/2003 12/31/2003 3/31/2004 6/30/2004 9/30/2004
---------- ---------- ---------- ---------- ----------
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 109,714 $ 107,335 $ 104,327 $ 109,460 $ 114,732
Roaming
revenue 41,182 30,722 23,962 29,206 35,695
Equipment &
other
revenue 7,749 6,357 7,330 8,541 9,203
---------- ---------- ---------- ---------- ----------
Total 158,645 144,414 135,619 147,207 159,630
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding de-
preciation &
amortization)
Cost of
service 38,536 36,013 32,218 38,542 42,847
Cost of
equipment 12,424 11,148 13,410 15,042 18,660
Marketing &
selling 15,053 16,283 15,947 18,538 18,472
General & ad-
ministrative 20,997 23,010 23,284 22,920 24,513
---------- ---------- ---------- ---------- ----------
Total 87,010 86,454 84,859 95,042 104,492
---------- ---------- ---------- ---------- ----------
EBITDA (1)(2) $ 71,635 $ 57,960 $ 50,760 $ 52,165 $ 55,138
========== ========== ========== ========== ==========
Pops 5,623,900 5,623,900 5,793,300 6,439,800 6,439,800
Post-paid
Gross Adds 47,700 45,700 37,800 40,200 46,300
Net Adds 9,700 2,700 (10,000) (1,100) (7,200)
Subscribers 776,400 780,800 791,000 812,800 805,600
Churn 1.6% 1.8% 2.0% 1.7% 2.2%
Average Ser-
vice Revenue
per Subscriber
(ARPU) $ 46.02 $ 45.14 $ 43.32 $ 44.95 $ 46.11
Pre-paid
Gross Adds 5,700 7,000 9,000 8,300 10,100
Net Adds 1,600 2,300 4,200 (500) 100
Subscribers 22,500 18,200 22,700 32,400 32,500
Reseller
Gross Adds 8,900 10,000 9,200 10,100 11,000
Net Adds 1,100 1,900 1,200 3,500 3,000
Subscribers 42,000 43,900 45,100 48,600 51,600
Total
Gross Adds 62,300 62,700 56,000 58,600 67,400
Net Adds 12,400 6,900 (4,600) 1,900 (4,100)
Subscribers 840,900 842,900 858,800 893,800 889,700
ARPU $ 43.81 $ 42.50 $ 40.87 $ 42.17 $ 42.89
Penetration 15.0% 15.0% 14.8% 13.9% 13.8%
(1) Includes $2.2 million, $1.7 million, $1.3 million, $1.6 million
and $1.9 million of EBITDA for the quarters ended September 30,
2003, December 31, 2003, March 31, 2004, June 30, 2004 and
September 30, 2004 respectively, related to minority interests.
(2) A reconciliation of EBITDA to income (loss) from continuing
operations as determined in accordance with generally accepted
accounting principles is as follows:
Income (loss)
from continuing
operations $ 1,094 $ 3,771 $ 10,837 $ (1,302) $ (2,562)
Add back non-
EBITDA items
included in
income
(loss) from
continuing
operations:
Depreciation &
amortization (23,975) (25,774) (25,217) (25,716) (28,575)
Interest
expense (13,842) (7,701) (9,216) (28,754) (30,161)
Other (expense)
income, net (2,105) 3,838 2,445 1,264 977
Loss from extin-
guishment of
debt (28,102) (24,175) (349) -- --
Minority
interests in
income of
subsidiaries (1,847) (1,291) (944) (1,059) (1,512)
Income tax
(expense)
benefit (670) 914 (6,642) 798 1,571
---------- ---------- ---------- ---------- ----------
EBITDA $ 71,635 $ 57,960 $ 50,760 $ 52,165 $ 55,138
========== ========== ========== ========== ==========
Table 5
American Cellular Corporation
Predecessor ACC
---------- ------------------------
7/1/03 - 8/19/03 -
For the Quarter Ended 8/18/2003 9/30/2003 12/31/2003
---------- ---------- ----------
($ in thousands except per subscriber data)
(unaudited)
Operating Revenue
Service revenue $ 42,492 $ 38,630 $ 78,372
Roaming revenue 19,989 14,539 25,410
Equipment & other revenue 2,819 1,994 3,679
---------- ---------- ----------
Total 65,300 55,163 107,461
---------- ---------- ----------
Operating Expenses
(excluding depreciation &
amortization)
Cost of service 13,802 11,612 23,849
Cost of equipment 5,527 4,500 10,604
Marketing & selling 6,348 6,553 14,464
General & administrative 9,488 8,872 22,338
---------- ---------- ----------
Total 35,165 31,537 71,255
---------- ---------- ----------
EBITDA (1) $ 30,135 $ 23,626 $ 36,206
========== ========== ==========
Pops 4,997,000 4,997,000 4,997,000
Post-paid
Gross Adds 22,800 21,100 43,400
Net Adds 2,000 2,300 5,500
Subscribers 663,100 665,400 670,900
Churn 2.0% 2.1% 1.9%
Average Service Revenue per
Subscriber (ARPU) $ 39.55 $ 41.09 $ 38.67
Pre-paid
Gross Adds 1,800 1,300 5,600
Net Adds 400 100 2,400
Subscribers 8,000 8,100 10,500
Reseller
Gross Adds 2,500 2,100 5,400
Net Adds (400) (200) (400)
Subscribers 28,400 28,200 27,800
Total
Gross Adds 27,100 24,500 54,400
Net Adds 2,000 2,200 7,500
Subscribers 699,500 701,700 709,200
ARPU $ 38.02 $ 39.38 $ 37.03
Penetration 14.0% 14.0% 14.2%
ACC
--------------------------------------
3/31/2004 6/30/2004 9/30/2004
---------- ---------- ----------
($ in thousands except per subscriber data)
(unaudited)
Operating Revenue
Service revenue $ 77,372 $ 79,828 $ 84,008
Roaming revenue 18,113 21,401 26,526
Equipment & other revenue 4,424 5,665 3,973
---------- ---------- ----------
Total 99,909 106,894 114,507
---------- ---------- ----------
Operating Expenses
(excluding depreciation &
amortization)
Cost of service 22,148 23,611 26,633
Cost of equipment 10,124 12,828 11,582
Marketing & selling 13,215 15,248 14,343
General & administrative 22,044 21,688 21,933
---------- ---------- ----------
Total 67,531 73,375 74,491
---------- ---------- ----------
EBITDA (1) $ 32,378 $ 33,519 $ 40,016
========== ========== ==========
Pops 4,997,000 4,997,000 4,997,000
Post-paid
Gross Adds 30,900 33,300 36,900
Net Adds (4,300) 700 (300)
Subscribers 666,600 667,300 667,000
Churn 1.8% 1.6% 1.9%
Average Service Revenue per
Subscriber (ARPU) $ 37.96 $ 39.22 $ 41.27
Pre-paid
Gross Adds 7,000 5,000 4,400
Net Adds 3,200 (800) (300)
Subscribers 13,700 12,900 12,600
Reseller
Gross Adds 5,700 10,100 12,900
Net Adds 300 5,400 5,900
Subscribers 28,100 33,500 39,400
Total
Gross Adds 43,600 48,400 54,200
Net Adds (800) 5,300 5,300
Subscribers 708,400 713,700 719,000
ARPU $ 36.39 $ 37.42 $ 39.09
Penetration 14.2% 14.3% 14.4%
(1) A reconciliation of EBITDA to net income (loss) as determined in
accordance with generally accepted accounting principles is as
follows:
Predecessor ACC
---------- ------------------------
7/1/03 - 8/19/03 -
8/18/2003 9/30/2003 12/31/2003
---------- ---------- ----------
($ in thousands except per subscriber data)
(unaudited)
Net income (loss) $ 2,642 $ 656 $ (5,005)
Add back non-EBITDA items
included in net income
(loss):
Depreciation &
amortization (9,014) (8,861) (19,786)
Interest expense (15,672) (13,849) (23,924)
Dividends on mandatorily
redeemable preferred
stock (703) -- --
Other income (expense),
net 58 142 (568)
Income tax (expense)
benefit (2,162) (402) 3,067
---------- ---------- ----------
EBITDA $ 30,135 $ 23,626 $ 36,206
========== ========== ==========
ACC
--------------------------------------
3/31/2004 6/30/2004 9/30/2004
---------- ---------- ----------
($ in thousands except per subscriber data)
(unaudited)
Net income (loss) $ (7,364) $ (7,499) $ (3,380)
Add back non-EBITDA items
included in net income
(loss):
Depreciation &
amortization (20,231) (20,919) (20,881)
Interest expense (23,675) (23,692) (23,971)
Dividends on mandatorily
redeemable preferred
stock -- -- --
Other income (expense),
net (350) (1,003) (616)
Income tax (expense)
benefit 4,514 4,596 2,072
---------- ---------- ----------
EBITDA $ 32,378 $ 33,519 $ 40,016
========== ========== ==========