OKLAHOMA CITY, Feb. 22, 2006 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq: DCEL) today reported a net loss applicable to common shareholders of $27.3 million, or $0.16 per share, for the fourth quarter ended December 31, 2005. (See Table 1.) The net loss applicable to common shareholders included a $21.7 million loss from extinguishment of debt, a $4.5 million loss on redemption and repurchases of mandatorily redeemable preferred stock, and an income tax benefit of $16.2 million.
For the fourth quarter of 2004, Dobson reported a net loss applicable to common shareholders of $13.9 million, or $0.10 per share. The 2004 fourth quarter net loss applicable to common shareholders included a $34.7 million gain from extinguishment of debt and income tax expense of $16.8 million.
Fourth quarter 2005 results were an improvement over those for the same period last year, absent the 2004 gain on extinguishment of debt and the 2005 losses on extinguishment of debt and mandatorily redeemable preferred stock.
Total revenue was $294.2 million for the fourth quarter of 2005, an increase of 11.1 percent over total revenue of $264.9 million for the same period last year.
Fourth quarter 2005 roaming revenue of $63.4 million was 19.1 percent higher than roaming revenue of $53.3 million for the fourth quarter of 2004. Roaming revenue accounted for 21.5 percent of total revenue for the fourth quarter of 2005, compared with 20.1 percent of revenue in the same period of the prior year.
Dobson reported EBITDA of $95.7 million for the fourth quarter of 2005, an increase of 9.9 percent over EBITDA of $87.0 million for the fourth quarter of 2004. Please see Table 3 for the reconciliation of EBITDA to GAAP measures. Full-year 2005 EBITDA for the Company was $414.6 million, at the top of its range of guidance.
Operating income for the fourth quarter of 2005 was $45.8 million, an increase of 28.1 percent over operating income of $35.8 million for the fourth quarter of 2004.
Dobson's 2005 quarterly results reflect the acquisition of the wireless assets of RFB Cellular, Inc. in late December 2004 and Pennsylvania 4 Rural Service Area in September 2005. Their combined impact in the fourth quarter of 2005 was a $1.5 million operating loss.
Operating Trends
Dobson reported that its total average service revenue per unit (ARPU) was $46.10 for the fourth quarter of 2005, compared with $42.17 for the fourth quarter of 2004. ARPU includes revenue from postpaid, prepaid and reseller customers, as well as ETC (Eligible Telecommunications Carrier) payments.
Average customer usage per month was 642 minutes of use (MOUs) for the fourth quarter of 2005, compared with 509 MOUs for the fourth quarter of 2004.
Roaming MOUs on the Dobson network were 584 million for the fourth quarter of 2005, an increase of 46 percent on a "same-store" basis over the fourth quarter of 2004. GSM roaming accounted for approximately 91 percent of all roaming MOUs in the fourth quarter.
Dobson reported approximately 122,600 total gross subscriber additions for the fourth quarter of 2005, postpaid customer churn of 2.62 percent, and a net subscriber reduction of 22,500. For the fourth quarter of 2004, the Company reported approximately 112,300 gross additions, postpaid churn of 2.35 percent, and a net subscriber reduction of 25,600.
The Company had approximately 1,543,400 subscribers as of December 31, 2005, with approximately 1,040,300 of these customers, or 67.4 percent, on GSM calling plans. During the fourth quarter of 2005, approximately 84,200 of the Company's TDMA subscribers migrated to GSM calling plans.
Capital expenditures were approximately $32.6 million in the fourth quarter of 2005, bringing the Company's total 2005 capital expenditures to $145.9 million. The Company built 64 cell sites during the fourth quarter of 2005, bringing its total cell sites built for the year to 202.
Dobson ended 2005 with $196.5 million in cash and cash equivalents, $4.5 million in restricted investments; $2.5 billion in long-term debt; and $168.5 million in preferred stock. (See Table 2.) In January 2006 the Company announced that it had called for redemption all its outstanding shares of 12¼% and 13% Senior Exchangeable Preferred Stock. The redemption date is March 1, 2006. As of December 31, 2005, the outstanding liquidation preference of the 12¼% Senior Exchangeable Preferred Stock was $5 million, and the outstanding liquidation preference of the 13% Senior Exchangeable Preferred Stock was $28 million. The outstanding liquidation preferences for the Preferred Stock do not reflect accrued dividends and redemption premiums.
Outlook for 2006
Dobson expects that its 2006 operating results will be highlighted by increased gross subscriber additions and continued improvement in customer churn. These anticipated trends, along with higher ARPU and improved operating efficiencies, are expected to produce continued growth in EBITDA and free cash flow for the year.
The Company anticipates that 2006 total revenue will grow in a range of 3 percent to 4 percent over 2005 total revenue.
ARPU is expected to be approximately $48.50 to $49.50 for the year, compared with ARPU of $45.26 for 2005. Higher ARPU is expected to result from three factors. ETC funding is expected to increase to approximately $53 million in 2006, compared with $20 million in 2005. The Company also expects continued growth in data revenue and favorable impacts from the continuing transition of its subscriber base to higher-ARPU GSM calling plans.
Dobson expects flat to minimal growth in roaming revenue in 2006, compared to the prior year.
The Company anticipates that "other revenue" will decline in 2006, primarily reflecting the effect in 2005 of approximately $4 million in pre-2005 settlement payments by AT&T Wireless, recognizing the settlement of claims for prior periods.
Dobson has incorporated into its 2006 guidance approximately $7 million to $8 million in costs related to the expensing of stock options, consistent with SFAS No. 123(R). The new rule was required to be adopted January 1, 2006, and thus does not apply to 2005 results.
In terms of its subscriber base, in 2006 Dobson expects to increase gross subscriber additions by 10 percent to 12 percent compared with 2005, and to continue reducing churn. On a net basis, the Company expects to see a slight reduction in subscribers in the first half of 2006 and positive net additions in the second half of 2006, producing between 10,000 and 20,000 net subscriber additions as a whole for the year.
The Company expects to report 2006 EBITDA in a range of $435 million to $445 million.
Dobson has budgeted approximately $155 million for expected 2006 capital expenditures.
After interest, dividends and changes in working capital, Dobson expects to report free cash flow in a range of $40 million to $50 million for 2006.
Fourth Quarter 2005 Conference Call
On Thursday, February 23, 2006, Dobson plans to conduct its fourth quarter earnings conference call beginning at 9:00 a.m. CT (10:00 a.m. ET).
Along with a discussion of fourth quarter 2005 results, management plans to discuss its expectations for 2006 and beyond.
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) 558-6901
Pass code 8098184
A call replay will be available later for two weeks via Dobson's web site or by phone.
Replay number (888) 203-1112
Pass code 8098184
For further analysis of fourth quarter results, please see the Company's annual report on Form 10-K, which is planned to be filed on or before March 16, 2006.
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 Year Ended
December 31, December 31,
------------------------ ------------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
($ in thousands except per share data)
Operating Revenue
Service revenue $ 215,008 $ 201,882 $ 858,385 $ 771,610
Roaming revenue 63,398 53,252 258,407 208,154
Equipment and
other revenue 15,813 9,794 62,670 43,718
----------- ----------- ----------- -----------
Total 294,219 264,928 1,179,462 1,023,482
----------- ----------- ----------- -----------
Operating Expenses
(excluding depre-
ciation & amorti-
zation)
Cost of service
(exclusive of
depreciation &
amortization
shown separately
below) 77,380 69,851 296,594 255,308
Cost of
equipment 33,334 27,321 130,111 108,968
Marketing and
selling 35,769 32,927 141,253 128,691
General and
administrative 52,052 47,800 196,896 179,525
----------- ----------- ----------- -----------
Total 198,535 177,899 764,854 672,492
----------- ----------- ----------- -----------
EBITDA(a) 95,684 87,029 414,608 350,990
Depreciation and
amortization (51,383) (51,279) (202,395) (192,818)
Gain on dis-
position of
operating assets 1,483 -- 3,854 --
----------- ----------- ----------- -----------
Operating income 45,784 35,750 216,067 158,172
Interest expense (58,545) (58,182) (243,002) (219,658)
(Loss) gain on
redemption and
repurchases of
mandatorily
redeemable pre-
ferred stock (4,457) -- (70,840) 6,478
Dividends on
mandatorily
redeemable pre-
ferred stock (1,161) (6,877) (22,552) (32,075)
Other income, net 1,966 891 4,577 3,121
(Loss) gain from
extinguishment
of debt (21,698) 34,662 (21,698) 40,401
Minority interests
in income of
subsidiaries (2,932) (1,352) (9,755) (4,867)
----------- ----------- ----------- -----------
(Loss) gain
before income
taxes (41,043) 4,892 (147,203) (48,428)
Income tax
benefit
(expense) 16,150 (16,775) 25,593 (3,635)
----------- ----------- ----------- -----------
Loss from
continuing
operations (24,893) (11,883) (121,610) (52,063)
Discontinued
operations:
Income from
discontinued
operations,
net of
taxes(b) -- -- -- 443
----------- ----------- ----------- -----------
Net loss (24,893) (11,883) (121,610) (51,620)
Dividends on
preferred stock (2,361) (1,988) (9,069) (8,178)
----------- ----------- ----------- -----------
Net loss
applicable to
common
stockholders $ (27,254) $ (13,871) $ (130,679) $ (59,798)
=========== =========== =========== ===========
Basic and
diluted net loss
applicable to
common stock-
holders per
common share $ (0.16) $ (0.10) $ (0.90) $ (0.45)
=========== =========== =========== ===========
Basic and diluted
weighted average
common shares
outstanding 169,066,959 133,847,952 145,960,251 133,784,752
=========== =========== =========== ===========
(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,
(loss) gain from extinguishment of debt, 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 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 Year Ended
December 31, December 31,
---------------- -----------------
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 -- -- -- 824
separately below)
Cost of equipment -- -- -- 235
Marketing and selling -- -- -- 605
General and
administrative -- -- -- 529
------ ------ ------ -------
Total operating
expenses (excluding
depreciation and
amortization) -- -- -- 2,193
------ ------ ------ -------
EBITDA -- -- -- 1,363
------ ------ ------ -------
Depreciation and
amortization -- -- -- (647)
Interest expense and
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: December 31,
-------------------------
2005 2004
-------- --------
($ in millions
Cash and cash equivalents
(unrestricted) (a) $ 196.5 $ 139.9
Restricted investments $ 4.5 $ 10.4
Marketable securities $ -- $ 39.0
Total Debt:
DCC Senior Floating Rate Notes $ 150.0 $ --
DCC Senior Convertible Debentures 160.0 --
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 -- 297.7
DCC 8.875% Senior Notes 419.7 419.7
ACC 9.5% Senior Notes, net 14.8 13.7
ACC 10.0% Senior Notes 900.0 900.0
-------- --------
Total debt $2,469.5 $2,456.1
======== ========
Preferred Stock:
Senior Exchangeable Preferred Stock,
12.25%, net (b) 5.1 44.6
Senior Exchangeable Preferred Stock,
13.00%, net (c) 27.7 191.5
Series F Preferred Stock 135.7 122.5
-------- --------
Total preferred stock $ 168.5 $ 358.6
======== ========
Year Ended
December 31,
-------------------------
2005 2004
-------- --------
($ in millions)
Capital Expenditures: $ 145.9 $ 142.0
======== ========
(a) Includes $76.6 million and $41.5 million of cash and cash
equivalents from American Cellular at December 31, 2005 and 2004,
respectively.
(b) Net of deferred financing costs of $(0.9) million at December
31, 2004, and a discount of $(0.1) million and $(0.7) million at
December 31, 2005 and 2004, respectively.
(c) Net of deferred financing costs of $(0.1) million and $(1.4)
million at December 31, 2005 and 2004, respectively.
Table 3
Dobson Communications Corporation
For the Quarter Ended
12/31/2005 9/30/2005 6/30/2005 3/31/2005 12/31/2004
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 215,008 $ 221,311 $ 215,984 $ 206,082 $ 201,882
Roaming
revenue 63,398 80,430 61,149 53,430 53,252
Equipment
and other
revenue 15,813 14,078 20,533 12,246 9,794
---------- ---------- ---------- ---------- ----------
Total 294,219 315,819 297,666 271,758 264,928
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding
depreciation
and
amortization)
Cost of
service 77,380 77,950 68,965 72,299 69,851
Cost of
equipment 33,334 32,156 34,255 30,366 27,321
Marketing
and
selling 35,769 35,535 35,855 34,094 32,927
General and
adminis-
trative 52,052 50,725 49,308 44,811 47,800
---------- ---------- ---------- ---------- ----------
Total 198,535 196,366 188,383 181,570 177,899
---------- ---------- ---------- ---------- ----------
EBITDA(a)(b) $ 95,684 $ 119,453 $ 109,283 $ 90,188 $ 87,029
========== ========== ========== ========== ==========
Pops 11,854,000 11,854,000 11,757,400 11,757,400 11,757,400
Post-paid
Gross Adds 80,400 84,800 87,600 77,400 69,500
Net Adds (28,000) (34,500) (9,000) (28,500) (33,100)
Sub-
scribers 1,364,700 1,392,700 1,426,600 1,435,600 1,464,100
Churn 2.6% 2.8% 2.3% 2.4% 2.3%
Average
Service
Revenue
per
Subscriber
(ARPU) $ 51.01 $ 51.10 $ 49.20 $ 46.36 $ 45.26
Pre-paid
Gross Adds 19,000 21,600 20,700 19,200 16,300
Net Adds 300 3,300 5,300 3,900 (400)
Subscribers 59,100 58,800 55,500 50,200 46,300
Reseller
Gross Adds 23,200 25,000 23,200 25,400 26,500
Net Adds 5,200 7,100 2,600 5,800 7,900
Subscribers 119,600 114,400 107,300 104,700 98,900
Total
Gross Adds 122,600 131,400 131,500 122,000 112,300
Net Adds (22,500) (24,100) (1,100) (18,800) (25,600)
Sub-
scribers 1,543,400 1,565,900 1,589,400 1,590,500 1,609,300
ARPU $ 46.10 $ 46.77 $ 45.28 $ 42.94 $ 42.17
Penetration 13.0% 13.2% 13.5% 13.5% 13.7%
(a) Includes $3.3 million, $2.7 million, $3.1 million, $2.3
million and $1.8 million of EBITDA for the quarters ended
December 31, 2005, September 30, 2005, June 30, 2005, March 31,
2005 and December 31, 2004 respectively, related to minority
interests.
(b) A reconciliation of EBITDA to loss from continuing operations
as determined in accordance with generally accepted accounting
principles is as follows:
For the Quarter Ended
12/31/05 9/30/05 6/30/05 3/31/05 12/31/04
($ in thousands except per subscriber data)
(unaudited)
Loss from
continuing
operations $(24,893) $(63,431) $(10,029) $(23,257) $(11,883)
Add back non-
EBITDA items
included in
loss from
continuing
operations:
Depreciation
and
amortization (51,383) (49,102) (50,340) (51,570) (51,279)
Gain on dis-
position of
operating assets 1,483 1,432 939 -- --
Interest expense (58,545) (62,457) (61,258) (60,742) (58,182)
Loss on redemption
and repurchases
of mandatorily
redeemable
preferred stock (4,457) (66,383) -- -- --
Dividends on
mandatorily
redeemable
preferred stock (1,161) (5,464) (7,996) (7,931) (6,877)
Other income
(expense), net 1,966 2,633 744 (766) 891
(Loss) gain from
extinguishment
of debt (21,698) -- -- -- 34,662
Minority interests
in income of
subsidiaries (2,932) (2,347) (2,646) (1,830) (1,352)
Income tax benefit
(expense) 16,150 (1,196) 1,245 9,394 (16,775)
-------- -------- -------- -------- --------
EBITDA $ 95,684 $119,453 $109,283 $ 90,188 $ 87,029
======== ======== ======== ======== ========
Table 4
Dobson Cellular Systems
For the Quarter Ended
12/31/05 9/30/2005 6/30/2005 3/31/2005 12/31/2004
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 125,069 $ 128,599 $ 125,134 $ 119,524 $ 115,768
Roaming
revenue 38,532 45,771 34,985 30,911 31,421
Equipment
and other
revenue 13,271 12,295 17,606 10,250 7,411
--------- --------- --------- --------- ---------
Total 176,872 186,665 177,725 160,685 154,600
--------- --------- --------- --------- ---------
Operating
Expenses
(excluding
depreciation
and
amortization)
Cost of
service 48,312 48,376 43,374 43,978 43,193
Cost of
equipment 20,102 18,708 21,486 18,708 16,754
Marketing
and
selling 20,770 20,531 20,961 19,721 18,967
General and
adminis-
trative 30,684 30,137 27,838 25,279 25,980
--------- --------- --------- --------- ---------
Total 119,868 117,752 113,659 107,686 104,894
--------- --------- --------- --------- ---------
EBITDA(a)(b) $ 57,004 $ 68,913 $ 64,066 $ 52,999 $ 49,706
========= ========= ========= ========= =========
Pops 6,687,500 6,687,500 6,687,500 6,687,500 6,687,500
Post-paid
Gross Adds 48,400 50,800 52,500 45,700 39,900
Net Adds (13,000) (15,700) (900) (12,900) (17,200)
Sub-
scribers 770,500 783,500 799,200 800,100 813,000
Churn 2.6% 2.8% 2.2% 2.4% 2.4%
Average
Service
Revenue per
Subscriber
(ARPU) $ 52.66 $ 52.84 $ 50.93 $ 48.23 $ 47.26
Pre-paid
Gross Adds 13,000 14,600 14,200 13,300 11,100
Net Adds -- 1,700 3,300 2,000 (1,200)
Subscribers 39,900 39,900 38,200 34,900 32,900
Reseller
Gross Adds 11,100 11,400 11,100 11,500 11,700
Net Adds 3,000 3,800 1,100 2,000 1,800
Subscribers 63,300 60,300 56,500 55,400 53,400
Total
Gross Adds 72,500 76,800 77,800 70,500 62,700
Net Adds (10,000) (10,200) 3,500 (8,900) (16,600)
Subscribers 873,700 883,700 893,900 890,400 899,300
ARPU $ 47.44 $ 48.23 $ 46.75 $ 44.52 $ 43.78
Penetration 13.1% 13.2% 13.4% 13.3% 13.4%
(a) Includes $3.3 million, $2.7 million, $3.1 million, $2.3
million and $1.8 million of EBITDA for the quarters ended
December 31, 2005, September 30, 2005, June 30, 2005, March 31,
2005 and December 31, 2004 respectively, related to minority
interests.
(b) A reconciliation of EBITDA to (loss) income from continuing
operations as determined in accordance with generally accepted
accounting principles is as follows:
(Loss) income
from continuing
operations $(7,625) $3,900 $(2,478) $(8,956) $(91,976)
Add back non-
EBITDA items
included in
(loss) income
from continuing
operations:
Depreciation and
amortization (28,874) (28,744) (29,179) (30,315) (30,000)
Gain on dis-
position of
operating assets 802 783 -- -- --
Interest expense (38,559) (38,198) (37,433) (37,025) (35,222)
Other income,
net 1,408 2,132 1,195 1,726 1,143
Loss from
extinguishment
of debt -- -- -- -- (14,200)
Minority
interests
in income of
subsidiaries (2,932) (2,347) (2,646) (1,830) (1,352)
Income tax
benefit
(expense) 3,526 1,361 1,519 5,489 (62,051)
------- ------- ------- ------- -------
EBITDA $57,004 $68,913 $64,066 $52,999 $49,706
======= ======= ======= ======= =======
Table 5
American Cellular Corporation
For the Quarter Ended
12/31/2005 9/30/2005 6/30/2005 3/31/2005 12/31/2004
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 89,939 $ 92,712 $ 90,850 $ 86,558 $ 86,113
Roaming
revenue 24,866 34,659 26,164 22,519 21,831
Equipment and
other revenue 5,554 4,794 5,939 5,008 4,121
--------- --------- --------- --------- ---------
Total 120,359 132,165 122,953 114,085 112,065
--------- --------- --------- --------- ---------
Operating
Expenses
(excluding de-
preciation
and amortization)
Cost of service 30,366 30,872 26,890 29,619 26,838
Cost of
equipment 13,232 13,448 12,769 11,658 10,567
Marketing and
selling 14,999 15,004 14,894 14,373 13,960
General and
administrative 23,077 22,296 23,178 21,241 23,373
--------- --------- --------- --------- ---------
Total 81,674 81,620 77,731 76,891 74,738
--------- --------- --------- --------- ---------
EBITDA(a) $ 38,685 $ 50,545 $ 45,222 $ 37,194 $ 37,327
========= ========= ========= ========= =========
Pops 5,166,500 5,166,500 5,069,900 5,069,900 5,069,900
Post-paid
Gross Adds 32,000 34,000 35,100 31,700 29,600
Net Adds (15,000) (18,800) (8,100) (15,600) (15,900)
Subscribers 594,200 609,200 627,400 635,500 651,100
Churn 2.6% 2.8% 2.3% 2.5% 2.3%
Average Service
Revenue per
Subscriber
(ARPU) $ 48.86 $ 48.89 $ 47.00 $ 44.02 $ 42.85
Pre-paid
Gross Adds 6,000 7,000 6,500 5,900 5,200
Net Adds 300 1,600 2,000 1,900 800
Subscribers 19,200 18,900 17,300 15,300 13,400
Reseller
Gross Adds 12,100 13,600 12,100 13,900 14,800
Net Adds 2,200 3,300 1,500 3,800 6,100
Subscribers 56,300 54,100 50,800 49,300 45,500
Total
Gross Adds 50,100 54,600 53,700 51,500 49,600
Net Adds (12,500) (13,900) (4,600) (9,900) (9,000)
Subscribers 669,700 682,200 695,500 700,100 710,000
ARPU $ 44.35 $ 44.88 $ 43.40 $ 40.92 $ 40.17
Penetration 13.0% 13.2% 13.7% 13.8% 14.0%
(a) A reconciliation of EBITDA to net (loss) income as determined
in accordance with generally accepted accounting principles is as
follows:
Net (loss)
income $ (4,434) $ 4,555 $ 481 $ (5,268) $ (7,457)
Add back non-
EBITDA items
included in net
(loss) income:
Depreciation and
amortization (22,509) (20,358) (21,161) (21,255) (21,279)
Gain on dis-
position of
operating
assets 681 649 939 -- --
Interest
expense (23,782) (23,782) (23,778) (23,784) (23,457)
Other expense,
net (227) (400) (446) (652) (471)
Income tax
benefit
(expense) 2,718 (2,099) (295) 3,229 423
--------- -------- -------- -------- ---------
EBITDA $ 38,685 $ 50,545 $ 45,222 $ 37,194 $ 37,327
========= ======== ======== ======== =========