OKLAHOMA CITY, Oct. 31, 2005 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq: DCEL) today reported a net loss applicable to common shareholders of $65.9 million, or $0.45 per share, for the third quarter ended September 30, 2005. (See Table 1.) The third quarter's net loss included income tax expense (non-cash) of $1.2 million and a $66.4 million loss on redemption and repurchases of mandatorily redeemable preferred stock, which resulted from Dobson's repurchase of 70 percent of its outstanding 12.25% and 13% senior exchangeable preferred stock in an exchange for cash and Class A common stock ("the Exchange"). (See below.) For the third quarter of 2004, Dobson reported a net loss applicable to common shareholders of $13.5 million, or $0.10 per share, which included an income tax benefit of $5.6 million.
Total revenue was $315.8 million for the third quarter of 2005, an increase of 15.9 percent over total revenue of $272.4 million for the same period last year.
Third quarter roaming revenue of $80.4 million was 29.3 percent higher than roaming revenue of $62.2 million for the third quarter of 2004.
Dobson reported EBITDA of $119.5 million for the third quarter of 2005, an increase of 25.5 percent over EBITDA of $95.1 million for the third quarter of 2004. Please see Table 3 for the reconciliation of EBITDA to GAAP measures.
Operating income for the third quarter of 2005 was $71.8 million, an increase of 57.1 percent over operating income of $45.7 million for the third quarter of 2004.
Dobson's third quarter 2005 operations reflect the acquisition of RFB Cellular, Inc. in late 2004.
Operating Trends
Dobson increased its total average service revenue per unit (ARPU) to $46.77 for the third quarter of 2005, compared with $45.28 in the second quarter of 2005 and $41.20 in the third quarter of 2004. Dobson includes revenue from postpaid, prepaid and reseller customers in its total ARPU calculation.
Average customer usage per month was 630 minutes of use (MOUs) for the third quarter of 2005, compared with 594 MOUs for the second quarter of 2005 and 502 MOUs for the third quarter of 2004.
Roaming MOUs on the Dobson network were 669 million for the third quarter of 2005, reflecting a year-over-year increase of 44 percent in roaming traffic on a same-store basis, including acquisitions. GSM roaming accounted for approximately 85 percent of all roaming MOUs in the third quarter, compared with 79 percent of Dobson's total roaming MOUs for the second quarter and 70 percent of for the first quarter of 2005.
Dobson reported approximately 131,400 total gross subscriber additions for the third quarter of 2005, in line with the second quarter of 2005 and compared with approximately 121,600 gross subscriber additions in the third quarter of 2004.
Postpaid customer churn was 2.82 percent for the third quarter of 2005, compared with 2.25 percent for the second quarter of 2005 and 2.05 percent for the third quarter of 2004.
The Company's subscriber base declined by 24,100 customers in the third quarter of 2005, compared with a net subscriber loss of approximately 1,100 in the second quarter of 2005 and an increase of approximately 1,200 in the third quarter of 2004. Consequently, as of September 30, 2005, the Company's total subscriber base was approximately 1,565,900.
At the end of the third quarter of 2005, approximately 910,900 of Dobson's customers, or 58 percent of its subscriber base, were on GSM calling plans. This compares with 47 percent at the end of the second quarter and 35 percent at the end of the first quarter of 2005. During the third quarter of 2005, approximately 101,400 of the Company's TDMA subscribers migrated to GSM calling plans, compared with 109,800 in the second quarter and 91,600 migrations in the first quarter of 2005.
Capital expenditures were approximately $36.9 million in the third quarter of 2005, bringing its year-to-date capital expenditures to $113.2 million. During the third quarter of 2005, the Company built 40 cell sites, bringing the total built since January 1, 2005 to 139. The Company plans to build an additional 60 sites in the fourth quarter of 2005. Dobson also recently announced agreements to purchase additional PCS spectrum over its operating footprint in 12 states, which will support further improvements in customer service levels.
The Company ended the third quarter of 2005 with $191.8 million in cash and cash equivalents and $298.5 million in restricted cash and investments. (See Table 2.) The Company used $53.3 million in cash in the preferred exchange transaction during the quarter. On October 17, 2005, the Company used $294.0 million in restricted cash and additional unrestricted cash to redeem the entire $299.0 million outstanding principal amount of its 10.875% senior notes due 2010, plus accrued interest and the applicable redemption premium.
Also in October, Dobson completed the final portion of the previously announced sale and leaseback of cellular towers to Global Tower Partners. This portion of the transaction comprised the sale of 56 cell towers for $8.8 million.
Third Quarter 2005 Conference Call
On Tuesday, November 1, 2005, Dobson plans to conduct its third quarter earnings conference call beginning at 8:00 a.m. CT (9:00 a.m. ET).
Along with third quarter results, Dobson plans to comment on its guidance for 2005. The Company is today reaffirming its guidance that total outcollect roaming yield should average approximately 11.5 cents for the final three quarters of 2005. Outcollect roaming yield was 12.0 cents in the third quarter of 2005, as compared with 11.8 cents in the second quarter. Dobson expects roaming yield for the fourth quarter to be in a range of 10.5-to-11 cents, based on the anticipated regional mix of roaming traffic in the fourth quarter and continued declines in TDMA and analog roaming traffic.
Dobson is also reaffirming its 2005 EBITDA guidance range of $400 million to $415 million. Based on its current outlook for gross subscriber additions in the year-end holiday season, the Company expects that 2005 EBITDA will be at the midpoint to upper end of the guided range.
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 (866) 564-7444 Pass code 4413760 A call replay will be available later for two weeks via Dobson's website or by phone. Replay number (888) 203-1112 Pass code 4413760
For further analysis of third 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, 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 Nine Months Ended September 30, September 30, ------------------------ ------------------------ 2005 2004 2005 2004 ----------- ----------- ----------- ----------- ($ in thousands except per share data) (unaudited) Operating Revenue Service revenue $ 221,311 $ 198,740 $ 643,377 $ 569,728 Roaming revenue 80,430 62,221 195,009 154,902 Equipment and other revenue 14,078 11,438 46,857 33,923 ----------- ----------- ----------- ----------- Total 315,819 272,399 885,243 758,553 ----------- ----------- ----------- ----------- Operating Expenses (excluding depreciation and amortization) Cost of service (exclusive of depreciation and amortization shown separately below) 77,950 69,299 219,214 185,457 Cost of equipment 32,156 30,242 96,777 81,647 Marketing and selling 35,535 32,816 105,484 95,763 General and administrative 50,725 44,893 144,844 131,725 ----------- ----------- ----------- ----------- Total 196,366 177,250 566,319 494,592 ----------- ----------- ----------- ----------- EBITDA(a) 119,453 95,149 318,924 263,961 Depreciation and amortization (49,102) (49,456) (151,012) (141,539) Gain on disposition of operating assets 1,432 -- 2,371 -- ----------- ----------- ----------- ----------- Operating income 71,783 45,693 170,283 122,422 Interest expense (62,457) (54,456) (184,457) (161,477) (Loss) gain on redemption and repurchases of mandatorily redeemable preferred stock (66,383) 1,410 (66,383) 6,478 Dividends on mandatorily redeemable preferred stock (5,464) (8,290) (21,391) (25,197) Other income, net 2,633 511 2,611 2,230 Gain from extinguishment of debt -- -- -- 5,739 Minority interests in income of subsidiaries (2,347) (1,512) (6,823) (3,514) ----------- ----------- ----------- ----------- Loss before income taxes (62,235) (16,644) (106,160) (53,319) Income tax (expense) benefit (1,196) 5,636 9,443 13,139 ----------- ----------- ----------- ----------- Loss from continuing operations (63,431) (11,008) (96,717) (40,180) Discontinued operations: Income from discontinued operations, net of taxes(b) -- -- -- 443 ----------- ----------- ----------- ----------- Net loss (63,431) (11,008) (96,717) (39,737) Dividends on preferred stock (2,419) (2,473) (6,708) (6,190) ----------- ----------- ----------- ----------- Net loss applicable to common stockholders $ (65,850) $ (13,481) $ (103,425) $ (45,927) =========== =========== =========== =========== Basic and diluted net loss applicable to common stock- holders per common share $ (0.45) $ (0.10) $ (0.75) $ (0.34) =========== =========== =========== =========== Basic and diluted weighted average common shares outstanding 146,485,519 133,790,430 138,173,375 133,763,531 =========== =========== =========== =========== (a) EBITDA is defined as loss from continuing operations before gain on disposition of operating assets, depreciation and amortization, interest expense, (loss) gain on redemption and repurchases of mandatorily redeemable preferred stock, dividends on mandatorily redeemable preferred stock, other income, net, gain from extinguishment of debt, minority interests in income of subsidiaries and income tax (expense) 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. (b) Operating results from income from discontinued operations: Three Months Ended Nine Months Ended September 30, September 30, ------------------------ ------------------------ 2005 2004 2005 2004 ----------- ----------- ----------- ----------- Service revenue $ -- $ -- $ -- $ 2,383 Roaming revenue -- -- -- 1,067 Equipment and other revenue -- -- -- 106 ----------- ----------- ----------- ----------- Total operating revenue -- -- -- 3,556 ----------- ----------- ----------- ----------- Cost of service (exclusive of depreciation and amortization shown separately below) -- -- -- 824 Cost of equipment -- -- -- 235 Marketing and selling -- -- -- 605 General and administrative -- -- -- 529 ----------- ----------- ----------- ----------- Total operating expenses (ex- cluding depre- ciation and amortization) -- -- -- 2,193 ----------- ----------- ----------- ----------- EBITDA -- -- -- 1,363 ----------- ----------- ----------- ----------- Depreciation and amortization -- -- -- (647) Interest expense and other -- -- -- (2) Income tax expense -- -- -- (271) ----------- ----------- ----------- ----------- Income from dis- continued operations $ -- $ -- $ -- $ 443 =========== =========== =========== =========== Table 2 Dobson Communications Corporation Selected Balance Sheet and Statistical Data Sept. 30, Dec. 31, Balance Sheet Data: 2005 2004 -------- -------- ($ in millions) (unaudited) Cash and cash equivalents (unrestricted)(a) $ 191.8 $ 139.9 Restricted cash and investments(b) $ 298.5 $ 10.4 Marketable securities $ -- $ 39.0 Total Debt: DCC Senior Floating Rate Notes $ 150.0 $ -- DCC Senior Convertible Debentures(c) 150.0 -- 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(b) 297.9 297.7 DCC 8.875% Senior Notes 419.7 419.7 ACC 9.5% Senior Notes, net 14.5 13.7 ACC 10.0% Senior Notes 900.0 900.0 -------- -------- Total debt $2,757.1 $2,456.1 ======== ======== Preferred Stock: Senior Exchangeable Preferred Stock, 12.25%, net(d)(f) 13.7 44.6 Senior Exchangeable Preferred Stock, 13.00%, net (e)(f) 57.5 191.5 Series F Preferred Stock 135.3 122.5 -------- -------- Total preferred stock $ 206.5 $ 358.6 ======== ======== Nine Months Ended September 30, -------------------------- 2005 2004 -------- -------- ($ in millions) Capital Expenditures: $ 113.2 $ 117.8 ======== ======== (a) Includes $55.7 million and $41.5 million of cash and cash equivalents from American Cellular at September 30, 2005 and December 31, 2004, respectively. (b) Includes $294.0 million of net proceeds from the new senior floating rate notes and the senior convertible debentures, which was used, along with cash on hand, to pay the redemption price of the entire $299.0 million outstanding principal amount of the Company's 10.875% senior notes on October 17, 2005. (c) On October 13, 2005 the initial purchasers of the Company's $150.0 million principal amount of senior convertible debentures due 2025 exercised their right to purchase an additional $10.0 million principal amount of debentures. As of October 13, 2005, the aggregate principal amount of senior convertible debentures outstanding was $160.0 million. (d) Net of deferred financing costs of $(0.9) million at December 31, 2004, and a discount of $(0.2) million and $(0.7) million at September 30, 2005 and December 31, 2004, respectively. (e) Net of deferred financing costs of $(0.3) million and $(1.4) million at September 30, 2005 and December 31, 2004, respectively. (f) On October 4, 2005, the Company entered into agreements with certain holders of its 12.25% preferred stock and its 13% preferred stock under which the holders have agreed to exchange 8,700 shares of 12.25% preferred stock and 30,021 shares of 13% preferred stock for 5,982,040 shares of the Company's Class A common stock and cash consideration of $1.6 million. As a result, the aggregate outstanding liquidation preference of the 12.25% preferred stock and the 13% preferred stock will decrease from $71.7 million to $33.0 million. Table 3 Dobson Communications Corporation For the Quarter Ended ---------------------------------------------------------- 9/30/2005 6/30/2005 3/31/2005 12/31/2004 9/30/2004 ---------- ---------- ---------- ---------- ---------- ($ in thousands except per subscriber data) Operating (unaudited) Revenue Service revenue $ 221,311 $ 215,984 $ 206,082 $ 201,882 $ 198,740 Roaming revenue 80,430 61,149 53,430 53,252 62,221 Equipment and other revenue 14,078 20,533 12,246 9,794 11,438 ---------- ---------- ---------- ---------- ---------- Total 315,819 297,666 271,758 264,928 272,399 ---------- ---------- ---------- ---------- ---------- Operating Expenses (excluding depreciation and amortization) Cost of service 77,950 68,965 72,299 69,851 69,299 Cost of equipment 32,156 34,255 30,366 27,321 30,242 Marketing and selling 35,535 35,855 34,094 32,927 32,816 General and adminis- trative 50,725 49,308 44,811 47,800 44,893 ---------- ---------- ---------- ---------- ---------- Total 196,366 188,383 181,570 177,899 177,250 ---------- ---------- ---------- ---------- ---------- EBITDA (a)(b) $ 119,453 $ 109,283 $ 90,188 $ 87,029 $ 95,149 ========== ========== ========== ========== ========== Pops 11,854,000 11,757,400 11,757,400 11,757,400 11,436,800 Post-paid Gross Adds 84,800 87,600 77,400 69,500 83,200 Net Adds (34,500) (9,000) (28,500) (33,100) (7,500) Sub- scribers 1,392,700 1,426,600 1,435,600 1,464,100 1,472,600 Churn 2.8% 2.3% 2.4% 2.3% 2.0% Average Service Revenue per Subscriber (ARPU) $ 51.10 $ 49.20 $ 46.36 $ 45.26 $ 43.92 Pre-paid Gross Adds 21,600 20,700 19,200 16,300 14,500 Net Adds 3,300 5,300 3,900 (400) (200) Subscribers 58,800 55,500 50,200 46,300 45,100 Reseller Gross Adds 25,000 23,200 25,400 26,500 23,900 Net Adds 7,100 2,600 5,800 7,900 8,900 Subscribers 114,400 107,300 104,700 98,900 91,000 Total Gross Adds 131,400 131,500 122,000 112,300 121,600 Net Adds (24,100) (1,100) (18,800) (25,600) 1,200 Sub- scribers 1,565,900 1,589,400 1,590,500 1,609,300 1,608,700 ARPU $ 46.77 $ 45.28 $ 42.94 $ 42.17 $ 41.20 Penetration 13.2% 13.5% 13.5% 13.7% 14.1% (a) Includes $2.7 million, $3.1 million, $2.3 million, $1.8 million, and $1.9 million of EBITDA for the quarters ended September 30, 2005, June 30, 2005, March 31, 2005, December 31, 2004, and September 30, 2004 respectively, related to minority interests. (b) 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 $(63,431) $(10,029) $(23,257) $(11,883) $(11,008) Add back non- EBITDA items included in loss from continuing operations: Depreciation and amortization (49,102) (50,340) (51,570) (51,279) (49,456) Gain on disposition of operating assets 1,432 939 -- -- -- Interest expense (62,457) (61,258) (60,742) (58,182) (54,456) (Loss) gain on redemp- tion and repurchases of manda- torily re- deemable preferred stock (66,383) -- -- -- 1,410 Dividends on manda- torily re- deemable preferred stock (5,464) (7,996) (7,931) (6,877) (8,290) Other income (expense), net 2,633 744 (766) 891 511 Gain from extinguish- ment of debt -- -- -- 34,662 -- Minority interests in income of sub- sidiaries (2,347) (2,646) (1,830) (1,352) (1,512) Income tax (expense) benefit (1,196) 1,245 9,394 (16,775) 5,636 ---------- ---------- ---------- ---------- ---------- EBITDA $ 119,453 $ 109,283 $ 90,188 $ 87,029 $ 95,149 ========== ========== ========== ========== ========== Table 4 Dobson Cellular Systems For the Quarter Ended 9/30/2005 6/30/2005 3/31/2005 12/31/2004 9/30/2004 ---------- ---------- ---------- ---------- ---------- ($ in thousands except per subscriber data) Operating (unaudited) Revenue Service revenue $ 128,599 $ 125,134 $ 119,524 $ 115,768 $ 114,732 Roaming revenue 45,771 34,985 30,911 31,421 35,695 Equipment and other revenue 12,295 17,606 10,250 7,411 9,203 ---------- ---------- ---------- ---------- ---------- Total 186,665 177,725 160,685 154,600 159,630 ---------- ---------- ---------- ---------- ---------- Operating Expenses (excluding depreciation and amor- tization) Cost of service 48,376 43,374 43,978 43,193 42,847 Cost of equipment 18,708 21,486 18,708 16,754 18,660 Marketing and selling 20,531 20,961 19,721 18,967 18,472 General and adminis- trative 30,137 27,838 25,279 25,980 24,513 ---------- ---------- ---------- ---------- ---------- Total 117,752 113,659 107,686 104,894 104,492 ---------- ---------- ---------- ---------- ---------- EBITDA (a)(b) $ 68,913 $ 64,066 $ 52,999 $ 49,706 $ 55,138 ========== ========== ========== ========== ========== Pops 6,687,500 6,687,500 6,687,500 6,687,500 6,439,800 Post-paid Gross Adds 50,800 52,500 45,700 39,900 46,300 Net Adds (15,700) (900) (12,900) (17,200) (7,200) Sub- scribers 783,500 799,200 800,100 813,000 805,600 Churn 2.8% 2.2% 2.4% 2.4% 2.2% Average Service Revenue per Subscriber (ARPU) $ 52.84 $ 50.93 $ 48.23 $ 47.26 $ 46.11 Pre-paid Gross Adds 14,600 14,200 13,300 11,100 10,100 Net Adds 1,700 3,300 2,000 (1,200) 100 Sub- scribers 39,900 38,200 34,900 32,900 32,500 Reseller Gross Adds 11,400 11,100 11,500 11,700 11,000 Net Adds 3,800 1,100 2,000 1,800 3,000 Sub- scribers 60,300 56,500 55,400 53,400 51,600 Total Gross Adds 76,800 77,800 70,500 62,700 67,400 Net Adds (10,200) 3,500 (8,900) (16,600) (4,100) Sub- scribers 883,700 893,900 890,400 899,300 889,700 ARPU $ 48.23 $ 46.75 $ 44.52 $ 43.78 $ 42.89 Penetration 13.2% 13.4% 13.3% 13.4% 13.8% (a) Includes $2.7 million, $3.1 million, $2.3 million, $1.8 million, and $1.9 million of EBITDA for the quarters ended September 30,2005, June 30, 2005, March 31, 2005, December 31, 2004, and September 30, 2004 respectively, related to minority interests. (b) 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 con- tinuing operations $ 3,900 $ (2,478) $ (8,956) $(91,976) $ (2,562) Add back non- EBITDA items in- cluded in income (loss) from con- tinuing operations: Depreciation and amortiza- tion (28,744) (29,179) (30,315) (30,000) (28,575) Gain on disposition of operating assets 783 -- -- -- -- Interest expense (38,198) (37,433) (37,025) (35,222) (30,161) Other income, net 2,132 1,195 1,726 1,143 977 Loss from extinguish- ment of debt -- -- -- (14,200) -- Minority interests in income of sub- sidiaries (2,347) (2,646) (1,830) (1,352) (1,512) Income tax benefit (expense) 1,361 1,519 5,489 (62,051) 1,571 ---------- ---------- ---------- ---------- ---------- EBITDA $ 68,913 $ 64,066 $ 52,999 $ 49,706 $ 55,138 ========== ========== ========== ========== ========== Table 5 American Cellular Corporation For the Quarter Ended 9/30/2005 6/30/2005 3/31/2005 12/31/2004 9/30/2004 --------- -------- -------- -------- -------- ($ in thousands except per subscriber data) Operating (unaudited) Revenue Service revenue $ 92,712 $ 90,850 $ 86,558 $ 86,113 $ 84,008 Roaming revenue 34,659 26,164 22,519 21,831 26,526 Equipment and other revenue 4,794 5,939 5,008 4,121 3,973 --------- -------- -------- -------- -------- Total 132,165 122,953 114,085 112,065 114,507 --------- -------- -------- -------- -------- Operating Expenses (excluding depreciation and amortization) Cost of service 30,872 26,890 29,619 26,838 26,633 Cost of equipment 13,448 12,769 11,658 10,567 11,582 Marketing and selling 15,004 14,894 14,373 13,960 14,343 General and administrative 22,296 23,178 21,241 23,373 21,933 --------- -------- -------- -------- -------- Total 81,620 77,731 76,891 74,738 74,491 --------- -------- -------- -------- -------- EBITDA(a) $ 50,545 $ 45,222 $ 37,194 $ 37,327 $ 40,016 ========= ======== ======== ======== ======== Pops 5,166,500 5,069,900 5,069,900 5,069,900 4,997,000 Post-paid Gross Adds 34,000 35,100 31,700 29,600 36,900 Net Adds (18,800) (8,100) (15,600) (15,900) (300) Subscribers 609,200 627,400 635,500 651,100 667,000 Churn 2.8% 2.3% 2.5% 2.3% 1.9% Average Service Revenue per Subscriber (ARPU) $ 48.89 $ 47.00 $ 44.02 $ 42.85 $ 41.27 Pre-paid Gross Adds 7,000 6,500 5,900 5,200 4,400 Net Adds 1,600 2,000 1,900 800 (300) Subscribers 18,900 17,300 15,300 13,400 12,600 Reseller Gross Adds 13,600 12,100 13,900 14,800 12,900 Net Adds 3,300 1,500 3,800 6,100 5,900 Subscribers 54,100 50,800 49,300 45,500 39,400 Total Gross Adds 54,600 53,700 51,500 49,600 54,200 Net Adds (13,900) (4,600) (9,900) (9,000) 5,300 Subscribers 682,200 695,500 700,100 710,000 719,000 ARPU $ 44.88 $ 43.40 $ 40.92 $ 40.17 $ 39.09 Penetration 13.2% 13.7% 13.8% 14.0% 14.4% (a) A reconciliation of EBITDA to net income (loss) as determined in accordance with generally accepted accounting principles is as follows: Net income (loss) $ 4,555 $ 481 $ (5,268) $ (7,457) $ (3,380) Add back non- EBITDA items included in net income (loss): Depreciation and amortiza- tion (20,358) (21,161) (21,255) (21,279) (20,881) Gain on disposition of operating assets 649 939 -- -- -- Interest expense (23,782) (23,778) (23,784) (23,457) (23,971) Other expense, net (400) (446) (652) (471) (616) Income tax (expense) benefit (2,099) (295) 3,229 423 2,072 --------- -------- -------- -------- -------- EBITDA $ 50,545 $ 45,222 $ 37,194 $ 37,327 $ 40,016 ========= ======== ======== ======== ========