Earnings Conference Call To Be Held Monday, August 15, 2005
OKLAHOMA CITY, Aug. 15, 2005 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL) today reported a net loss applicable to common shareholders of $12.2 million, or $0.09 per share, for the second quarter ended June 30, 2005. (See Table 1.) For the second quarter of 2004, Dobson reported a net loss applicable to common shareholders of $15.9 million, or $0.12 per share. Last year's second quarter net loss included a $5.1 million gain on redemption and repurchases of preferred stock.
Dobson reported EBITDA of $109.3 million for the second quarter of 2005, an increase of 27.5 percent over EBITDA of $85.7 million for the second quarter of 2004. Please see Table 3 for the reconciliation of EBITDA to GAAP measures.
Total revenue was $297.7 million for the second quarter of 2005, of which $61.1 million, or 20.5 percent, was roaming revenue. For the second quarter of 2004, Dobson reported total revenue of $252.4 million, of which $50.6 million, or 20.1 percent, was roaming revenue.
Second quarter 2005 roaming revenue reflects the application in early April 2005 of adjusted rates provided for in Dobson's new roaming agreement with Cingular, which was approved by the boards of directors of the two companies on Friday, August 12, 2005.
Dobson's second quarter 2005 results reflect operations acquired during 2004, including Michigan 5 Rural Service Area (RSA) and the Michigan markets acquired from NPI-Omnipoint Wireless, LLC and RFB Cellular, Inc.
Roaming
Dobson Communications reported approximately 517 million roaming minutes of use (MOUs) for the second quarter of 2005, an increase of 35 percent over 384 million roaming MOUs reported in the second quarter last year, on a same-store basis, including acquisitions. For the first quarter of 2005, Dobson reported 395 million MOUs. Roaming revenue of $61.1 million for the second quarter of 2005 produced a roaming yield of $0.118 per MOU.
GSM roaming accounted for approximately 407 million roaming MOUs, or 79 percent of Dobson's total roaming MOUs for the second quarter of 2005. GSM represented 70 percent of roaming MOUs for the first quarter of 2005.
The new roaming agreement's key provisions include the following:
-- Dobson and Cingular agreed to mutually lower roaming rates,
with Dobson paying Cingular a flat incollect rate through
mid-2009 that is approximately half the blended rate in
previous roaming agreements.
-- Dobson and Cingular will continue to mutually prefer one
another for roaming through the term of the new roaming agreement,
which has been extended approximately one year through mid-2009.
-- Dobson will receive from Cingular approximately $7.8 million
as a settlement for prior claims under various agreements
between Dobson and the former AT&T Wireless, and will also receive
certain formula-based residual payments in connection
with such settlements through mid-2008 at the latest.
-- The new roaming agreement provides for "home-on-home" roaming in
areas where both carriers operate.
-- Dobson has the right to acquire for $6.0 million 10 MHz of
spectrum covering 1.1 million POPs, consisting of Youngstown,
Ohio and Ohio 11 Rural Service Area (RSA); and Erie and Sharon,
Pennsylvania, as well as Pennsylvania 1 RSA. Dobson has also
received an option to lease additional spectrum covering
1.5 million POPs from Cingular.
Operating Trends
Dobson increased its average service revenue per unit (ARPU) to $45.28 in the second quarter of 2005, reflecting the continued shift of its subscriber base to GSM calling plans. This represented an increase of $5.25, or 13 percent, over ARPU of $40.03 for the second quarter of 2004 and an increase of $2.34, or 5 percent, over first quarter 2005 ARPU of $42.94 per month. Dobson includes revenue from postpaid, prepaid and reseller customers in its ARPU calculation.
Average customer usage per month was 593 MOUs for the second quarter of 2005, compared with 478 MOUs for the second quarter of 2004 and 529 MOUs for the first quarter of 2005.
Dobson reported approximately 131,500 total gross subscriber additions for the second quarter of 2005, compared with approximately 107,000 gross subscriber additions in the second quarter of 2004 and approximately 122,000 gross subscriber additions in the first quarter of 2005.
Postpaid customer churn was 2.25 percent for the second quarter of 2005, compared with 1.68 percent for the second quarter of 2004 and 2.43 percent for the first quarter of 2005.
The Company's subscriber base declined by 1,100 customers in the second quarter of 2005, compared with net subscriber additions of approximately 7,200 in the second quarter of 2004 and a net reduction of 18,800 in the first quarter of 2005. As of June 30, 2005, the Company's total subscriber base was approximately 1,589,400.
At the end of the second quarter of 2005, approximately 741,200 of Dobson's customers, or 47 percent of its subscriber base, were on GSM calling plans. During the second quarter of 2005, approximately 109,800 of the Company's TDMA subscribers migrated to GSM calling plans, compared with 91,600 in the first quarter of 2005 and 75,100 migrations in the fourth quarter of 2004.
Capital expenditures were approximately $43.7 million in the second quarter of 2005, bringing its year-to-date capital expenditures to $76.3 million. The Company ended the quarter with $247.9 million in cash and cash equivalents, compared with $190.2 million in cash and cash equivalents at March 31, 2005. Totals of $2.5 billion in long-term debt and $359.7 million in preferred stock obligations were not materially different from totals at the end of the first quarter of 2005. (See Table 2.)
During the second quarter of 2005, the Company built 50 GSM cell sites. From January 1, 2004 to the end of the second quarter of 2005, the Company has added 320 GSM-only cell sites to enhance the performance of its network.
Finally, on June 30, 2005 Dobson Cellular Systems and American Cellular Corporation announced the completion of the sale of 507 cellular towers to Global Tower Partners for $77.0 million. On July 22, 2005 Dobson Communications announced the launch of an offer to exchange cash and shares of its Class A common stock for up to 70 percent of its outstanding 12.25% Senior Exchangeable Preferred Stock and up to 70 percent of its 13% Senior Exchangeable Preferred Stock, subject to prorating.
For additional information on either of these events, please see the Company's filings with the Securities and Exchange Commission.
Outlook for 2005
Dobson will continue to focus on transitioning its subscriber base to GSM calling plans the remainder of 2005. The Company expects that its subscriber base will be approximately two-thirds GSM by year-end and that ARPU will increase over the level achieved in the second quarter of 2005.
Customer churn in the second half of 2005 is likely to remain in a range similar to that of the first half of the year as the Company transitions the TDMA portion of its subscriber base to the new technology. Consequently, Dobson expects its subscriber base in the second half of 2005 will likely remain flat or decline slightly. If the base declines, Dobson does not expect the reduction to exceed that of the first half of 2005.
Dobson expects continued strong growth in roaming traffic in the second half of 2005, compared with the second half of 2004 and the first half of 2005.
The Company plans to add up to 100 additional GSM cell sites in the second half of 2005 and to make other investments in network service quality and capacity. This is expected to result in total capital expenditures of up to $150 million for the year.
Dobson expects to generate full-year EBITDA in a range of $400 million to $415 million for 2005.
Second Quarter 2005 Conference Call: Monday, August 15, 2005
On Monday, August 15, 2005, Dobson plans to conduct its second quarter earnings conference call beginning at 8:00 a.m. CT (9:00 a.m. ET). Along with second quarter results and its new roaming agreement, Dobson intends to comment on its guidance for 2005.
Investors may listen by phone or via web-cast on Dobson's web site at www.dobson.net. Those interested may access the call by dialing:
Conference call (800) 811-0667 Pass code 3659481 A call replay will be available later for two weeks via Dobson's website or by phone. Replay number (888) 203-1112 Pass code 3659481
For further analysis of second quarter results, please see the Company's quarterly report on Form 10-Q.
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 or other factors that inhibit the growth of its subscriber base; shortages of key network equipment and/or handsets; restrictions on the Company's ability to finance its growth; accelerated migrations to GSM by the Company's customers, which would increase equipment costs; changes in the Company's roaming agreements that could affect revenue and/or earnings expectations; technology changes; 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,
-------------------------------------------------
2005 2004 2005 2004
---------- ------- -------- ----------
($ in thousands except per share data)
(unaudited)
Operating Revenue
Service revenue $ 215,984 $ 189,288 $ 422,066 $ 370,988
Roaming revenue 61,149 50,606 114,579 92,682
Equipment
& other
revenue 20,533 12,469 32,779 22,485
-------- ------- ------- -------
Total 297,666 252,363 569,424 486,155
-------- ------- ------- -------
Operating Expenses (excluding
depreciation & amortization)
Cost of service
(exclusive of depreciation
& amortization shown
separately
below) 68,965 61,972 141,264 116,158
Cost of equipment 34,255 27,870 64,621 51,405
Marketing
& selling 35,855 33,786 69,949 62,948
General &
administrative 49,308 43,056 94,119 86,832
-------- ------- ------- -------
Total 188,383 166,684 369,953 317,343
-------- ------- ------- -------
EBITDA (1) 109,283 85,679 199,471 168,812
Gain on disposition
of operating
assets 939 -- 939 --
Depreciation
& amortization (50,340) (46,635) (101,910) (92,083)
-------- ------- ------- -------
Operating income 59,882 39,044 98,500 76,729
Interest
expense (61,258) (52,783) (122,000) (107,021)
Dividends on
mandatorily
redeemable
preferred stock (7,996) (8,289) (15,927) (16,907)
Other income
(expense), net 744 441 (22) 1,718
Gain from
extinguishment
of debt -- -- -- 5,739
Gain on
redemption and
repurchases
of mandatorily
redeemable
preferred stock -- 5,069 -- 5,069
Minority
interests in
income of
subsidiaries (2,646) (1,058) (4,476) (2,002)
-------- ------- ------- -------
Loss before
income taxes (11,274) (17,576) (43,925) (36,675)
Income tax
benefit 1,245 3,529 10,639 7,503
-------- ------- ------- -------
Loss from
continuing
operations (10,029) (14,047) (33,286) (29,172)
Discontinued operations:
Income from
discontinued
operations,
net of
taxes (2) -- -- -- 443
-------- ------- ------- -------
Net loss (10,029) (14,047) (33,286) (28,729)
Dividends on
preferred
stock (2,144) (1,859) (4,289) (3,717)
-------- ------- ------- -------
Net loss
applicable
to common
stockholders $ (12,173) $ (15,906) $ (37,575) $ (32,446)
========= ========= ========= =========
Basic and diluted net
loss applicable to
common
stockholders
per common share $ (0.09) $ (0.12) $ (0.28) $ (0.24)
========= ========= ========= =========
Basic and diluted
weighted average
common shares
outstanding 134,011,175 133,722,746 133,948,417 133,749,934
=========== =========== =========== ===========
(1) EBITDA is defined as loss from continuing operations before gain
on disposition of operating assets, depreciation and amortization,
interest expense, dividends on mandatorily redeemable preferred
stock, other income (expense), net, gain from extinguishment of
debt, gain on redemption and repurchases of mandatorily redeemable
preferred stock, minority interests in income of subsidiaries and
income tax benefit. 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 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 Six Months Ended
June 30, June 30,
------------------- ----------------------
2005 2004 2005 2004
------ ------ ------ ------
Service
revenue $ -- $ -- $ -- $ 2,383
Roaming
revenue -- -- -- 1,067
Equipment
& other
revenue -- -- -- 106
-------- --------- ---------- ----------
Total
operating
revenue -- -- -- 3,556
-------- --------- ---------- ----------
Cost of service
(exclusive of
depreciation
& amortization
shown separately
below) -- -- -- 824
Cost of equipment -- -- -- 235
Marketing &
selling -- -- -- 605
General &
administrative -- -- -- 529
-------- --------- ---------- ----------
Total operating
expenses (excluding
depreciation and
amortization) -- -- -- 2,193
-------- --------- ---------- ----------
EBITDA -- -- -- 1,363
-------- --------- ---------- ----------
Depreciation &
amortization -- -- -- (647)
Interest expense
& other -- -- -- (2)
Income tax
expense -- -- -- (271)
-------- --------- ---------- ----------
Income from
discontinued
operations $ -- $ -- $ -- $ 443
======== ========= ========== ==========
Table 2
Dobson Communications Corporation
Selected Balance Sheet and Statistical Data
Balance Sheet Data: June 30, 2005 Dec. 31, 2004
------------- -------------
($ in millions) ($ in millions)
(unaudited)
Cash and cash
equivalents
(unrestricted) (1) $ 247.9 $ 139.9
========== ==========
Marketable securities $ -- $ 39.0
========== ==========
Total Debt:
DCS 8.375% Senior Notes $ 250.0 $ 250.0
DCS 9.875% Senior Notes 325.0 325.0
DCS Floating Rate Senior Notes 250.0 250.0
DCC 10.875% Senior Notes, net 297.8 297.7
DCC 8.875% Senior Notes 419.7 419.7
ACC 9.5% Senior Notes, net 14.3 13.7
ACC 10.0% Senior Notes 900.0 900.0
---------- -----------
Total debt $ 2,456.8 $ 2,456.1
========== ==========
Preferred Stock:
Senior Exchangeable
Preferred Stock, 12.25%,
net (2) 45.5 44.6
Senior Exchangeable Preferred
Stock, 13.00%, net (3) 191.7 191.5
Series F Preferred Stock 122.5 122.5
---------- -----------
Total preferred stock $ 359.7 $ 358.6
========== ==========
Six Months Ended June 30,
-------------------------
2005 2004
------------- -------------
($ in millions) ($ in millions)
Capital Expenditures: $ 76.3 $ 88.9
========== ===========
(1) Includes $86.0 million and $41.5 million of cash and cash
equivalents from American Cellular at June 30, 2005 and
December 31, 2004, respectively.
(2) Net of deferred financing costs of $(0.1) million and $(0.9)
million at June 20, 2005 and December 31, 2004, respectively and
a discount of $(0.6) million and $(0.7) million at June 30, 2005
and December 31, 2004, respectively.
(3) Net of deferred financing costs of $(1.2) million and $(1.4)
million at June 30, 2005 and December 31, 2004, respectively.
Table 3
Dobson Communications Corporation
For the Quarter Ended
6/30/2005 3/31/2005 12/31/2004 9/30/2004 6/30/2004
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $215,984 $206,082 $201,882 $198,740 $189,288
Roaming
revenue 61,149 53,430 53,252 62,221 50,606
Equipment &
other
revenue 20,533 12,246 9,794 11,438 12,469
-------- -------- -------- -------- --------
Total $297,666 $271,758 $264,928 $272,399 $252,363
-------- -------- -------- -------- --------
Operating
Expenses
(excluding
depreciation &
amortization)
Cost of
service 68,965 72,299 69,851 69,299 61,972
Cost of
equipment 34,255 30,366 27,321 30,242 27,870
Marketing &
Selling 35,855 34,094 32,927 32,816 33,786
General &
admini-
strative 49,308 44,811 47,800 44,893 43,056
-------- -------- -------- -------- --------
Total 188,383 181,570 177,899 177,250 166,684
-------- -------- -------- -------- --------
EBITDA (1) (2) $ 109,283 $ 90,188 $ 87,029 $ 95,149 $ 85,679
========= ======== ======== ======== ========
Pops 11,757,400 11,757,400 11,757,400 11,436,800 11,436,800
Post-paid
Gross Adds 87,600 77,400 69,500 83,200 73,500
Net Adds (9,000) (28,500) (33,100) (7,500) (400)
Subscribers 1,426,600 1,435,600 1,464,100 1,472,600 1,480,100
Churn 2.3% 2.4% 2.3% 2.0% 1.7%
Average
Service
Revenue
per
Subscriber
(ARPU) $ 49.20 $ 46.36 $ 45.26 $ 43.92 $ 42.33
Pre-paid
Gross Adds 20,700 19,200 16,300 14,500 13,300
Net Adds 5,300 3,900 (400) (200) (1,300)
Subscribers 55,500 50,200 46,300 45,100 45,300
Reseller
Gross Adds 23,200 25,400 26,500 23,900 20,200
Net Adds 2,600 5,800 7,900 8,900 8,900
Subscribers 107,300 104,700 98,900 91,000 82,100
Total
Gross Adds 131,500 122,000 112,300 121,600 107,000
Net Adds (1,100) (18,800) (25,600) 1,200 7,200
Subscribers 1,589,400 1,590,500 1,609,300 1,608,700 1,607,500
ARPU $ 45.28 $ 42.94 $ 42.17 $ 41.20 $ 40.03
Penetration 13.5% 13.5% 13.7% 14.1% 14.1%
(1) Includes $3.1 million, $2.3 million, $1.8 million,
$1.9 million and $1.6 million of EBITDA for the quarters
ended June 30, 2005, March 31, 2005, December 31, 2004,
September 30, 2004 and June 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 $(10,029) $(23,257) $(11,883) $(11,008) $(14,047)
Add back non-EBITDA
items included
in loss from
continuing operations:
Gain on
disposition
of operating
assets 939 -- -- -- --
Depreciation &
amortization (50,340) (51,570) (51,279) (49,456) (46,635)
Interest
expense (61,258) (60,742) (58,182) (54,456) (52,783)
Dividends on
mandatorily
redeemable
preferred
stock (7,996) (7,931) (6,877) (8,290) (8,289)
Other income
(expense), net 744 (766) 891 511 441
Gain from
extinguishment
of debt -- -- 34,662 -- --
Gain from
redemption of
preferred stock -- -- -- 1,410 5,069
Minority
interests in
income of
subsidiaries (2,646) (1,830) (1,352) (1,512) (1,058)
Income tax
benefit
(expense) 1,245 9,394 (16,775) 5,636 3,529
-------- -------- -------- -------- --------
EBITDA $ 109,283 $ 90,188 $ 87,029 $ 95,149 $ 85,679
========= ======== ======== ======== ========
Table 4
Dobson Cellular Systems
For the Quarter Ended
6/30/2005 3/31/2005 12/31/2004 9/30/2004 6/30/2004
($ in thousands except per subscriber data)
(unaudited)
Operating Revenue
Service
revenue $ 125,134 $ 119,524 $ 115,768 $ 114,732 $ 109,460
Roaming
revenue 34,985 30,911 31,421 35,695 29,205
Equipment &
other
revenue 17,606 10,250 7,411 9,203 8,542
--------- --------- --------- --------- ---------
Total 177,725 160,685 154,600 159,630 147,207
--------- --------- --------- --------- ---------
Operating Expenses
(excluding
depreciation
& amortization)
Cost of
service 43,374 43,978 43,193 42,847 38,542
Cost of
equipment 21,486 18,708 16,754 18,660 15,042
Marketing &
selling 20,961 19,721 18,967 18,472 18,538
General &
administrative 27,838 25,279 25,980 24,513 22,920
--------- --------- --------- --------- ---------
Total 113,659 107,686 104,894 104,492 95,042
--------- --------- --------- --------- ---------
EBITDA (1) (2) $ 64,066 $ 52,999 $ 49,706 $ 55,138 $ 52,165
========= ========= ========= ========= =========
Pops 6,687,500 6,687,500 6,687,500 6,439,800 6,439,800
Post-paid
Gross Adds 52,500 45,700 39,900 46,300 40,200
Net Adds (900) (12,900) (17,200) (7,200) (1,100)
Subscribers 799,200 800,100 813,000 805,600 812,800
Churn 2.2% 2.4% 2.4% 2.2% 1.7%
Average
Service
Revenue per
Subscriber
(ARPU) $ 50.93 $ 48.23 $ 47.26 $ 46.11 $ 44.95
Pre-paid
Gross Adds 14,200 13,300 11,100 10,100 8,300
Net Adds 3,300 2,000 (1,200) 100 (500)
Subscribers 38,200 34,900 32,900 32,500 32,400
Reseller
Gross Adds 11,100 11,500 11,700 11,000 10,100
Net Adds 1,100 2,000 1,800 3,000 3,500
Subscribers 56,500 55,400 53,400 51,600 48,600
Total
Gross Adds 77,800 70,500 62,700 67,400 58,600
Net Adds 3,500 (8,900) (16,600) (4,100) 1,900
Subscribers 893,900 890,400 899,300 889,700 893,800
ARPU $ 46.75 $ 44.52 $ 43.78 $ 42.89 $ 42.17
Penetration 13.4% 13.3% 13.4% 13.8% 13.9%
(1) Includes $3.1 million, $2.3 million, $1.8 million, $1.9 million
and $1.6 million of EBITDA for the quarters ended June 30, 2005,
March 31, 2005, December 31, 2004, September 30, 2004 and June
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 $ (2,478) $ (8,956) $ (91,976) $ (2,562) $ (1,301)
Add back non-EBITDA
items included
in loss from
continuing operations:
Depreciation &
amortization (29,179) (30,315) (30,000) (28,575) (25,716)
Interest
expense (37,433) (37,025) (35,222) (30,161) (28,754)
Other income,
net 1,195 1,726 1,143 977 1,264
Loss from
extinguishment
of debt -- -- (14,200) -- --
Minority interests
in income of
subsidiaries (2,646) (1,830) (1,352) (1,512) (1,058)
Income tax
benefit
(expense) 1,519 5,489 (62,051) 1,571 798
--------- --------- --------- --------- --------
EBITDA $ 64,066 $ 52,999 $ 49,706 $ 55,138 $ 52,165
========= ========== ========= ========= ========
Table 5
American Cellular Corporation
For the Quarter Ended
6/30 3/31 12/31 9/30 6/30
/2005 /2005 /2004 /2004 /2004
($ in thousands except per subscriber data)
(unaudited)
Operating Revenue
Service revenue $ 90,850 $ 86,558 $ 86,113 $ 84,008 $ 79,828
Roaming revenue 26,164 22,519 21,831 26,526 21,401
Equipment &
other revenue 5,939 5,008 4,121 3,973 5,665
-------- -------- --------- -------- --------
Total 122,953 114,085 112,065 114,507 106,894
-------- -------- --------- -------- --------
Operating Expenses
(excluding depreciation
& amortization)
Cost of
service 26,890 29,619 26,838 26,633 23,611
Cost of
equipment 12,769 11,658 10,567 11,582 12,828
Marketing &
selling 14,894 14,373 13,960 14,343 15,248
General &
administrative 23,178 21,241 23,373 21,933 21,688
-------- -------- --------- -------- --------
Total 77,731 76,891 74,738 74,491 73,375
-------- -------- --------- -------- --------
EBITDA (1) $ 45,222 $ 37,194 $ 37,327 $ 40,016 $ 33,519
======== ======== ======== ======== ========
Pops 5,069,900 5,069,900 5,069,900 4,997,000 4,997,000
Post-paid
Gross Adds 35,100 31,700 29,600 36,900 33,300
Net Adds (8,100) (15,600) (15,900) (300) 700
Subscribers 627,400 635,500 651,100 667,000 667,300
Churn 2.3% 2.5% 2.3% 1.9% 1.6%
Average Service
Revenue per Subscriber
(ARPU) $ 47.00 $ 44.02 $ 42.85 $ 41.27 $ 39.22
Pre-paid
Gross Adds 6,500 5,900 5,200 4,400 5,000
Net Adds 2,000 1,900 800 (300) (800)
Subscribers 17,300 15,300 13,400 12,600 12,900
Reseller
Gross Adds 12,100 13,900 14,800 12,900 10,100
Net Adds 1,500 3,800 6,100 5,900 5,400
Subscribers 50,800 49,300 45,500 39,400 33,500
Total
Gross Adds 53,700 51,500 49,600 54,200 48,400
Net Adds (4,600) (9,900) (9,000) 5,300 5,300
Subscribers 695,500 700,100 710,000 719,000 713,700
ARPU $ 43.40 $ 40.92 $ 40.17 $ 39.09 $ 37.42
Penetration 13.7% 13.8% 14.0% 14.4% 14.3%
(1) A reconciliation of EBITDA to net income (loss) as determined
in accordance with generally accepted accounting principles
is as follows:
Net income (loss) $ 481 $ (5,268) $ (7,457) $ (3,380) $ (7,499)
Add back non-EBITDA
items included in net
income (loss):
Gain on disposition
of operating
assets 939 -- -- -- --
Depreciation &
amortization (21,161) (21,255) (21,279) (20,881) (20,919)
Interest
expense (23,778) (23,784) (23,457) (23,971) (23,692)
Other expense,
net (446) (652) (471) (616) (1,003)
Income tax
(expense)
benefit (295) 3,229 423 2,072 4,596
-------- -------- --------- -------- --------
EBITDA $ 45,222 $ 37,194 $ 37,327 $ 40,016 $ 33,519
======== ======== ======== ======== ========