OKLAHOMA CITY, April 17, 2002 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL) reported proportionate gross subscriber additions (postpaid) of approximately 81,800 for the first quarter of 2002, compared with 80,800 for the initial three months of 2001.
Postpaid proportionate customer churn was 2.2 percent for the first quarter ended March 31, 2002, resulting in proportionate net subscriber additions of 17,200 for the period. Churn for the first quarter last year was 2.0 percent and the Company added 37,000 proportionate net subscribers.
The percentage of customer disconnects declined during the most recent quarter throughout its markets, the Company said. Proportionate churn declined from 2.4 percent in January to 2.3 percent in February, then declined again to 2.1 percent in March. The average of 2.2 percent proportionate customer churn for the quarter as a whole was within the range of 2.0-to-2.25 percent proportionate churn that is the Company's guidance for 2002.
During the quarter ended March 31, 2002, the Company also continued to transition its customer base to digital calling plans, which generate higher average revenue per unit. As of the end of the first quarter, 79 percent of the subscribers in Dobson's proportionate subscriber base were on digital calling plans, compared with 53 percent a year ago.
Proportionate results reflect Dobson's operations plus its 50% ownership in American Cellular Corporation through its joint venture with AT&T Wireless Services, Inc. (NYSE:AWE). Dobson includes both postpaid and prepaid subscribers in its net subscriber additions. Gross subscriber additions and churn are reported on a postpaid basis only.
"Lower churn in March resulted in the Company adding more than half of our first quarter proportionate net adds in March," said Everett Dobson, chairman and chief executive officer.
The Company attributed the first quarter levels of churn primarily to the negative effect of continued economic softness on consumer buying and contract renewal patterns in Dobson's primarily rural markets and to an extraordinarily high number of gross subscriber additions in December 2000, which resulted in a large number of customers coming off 12-month contracts in January 2002.
The totals above give effect to the sale of five properties to Verizon Wireless (NYSE:VZ) by Dobson Communications and American Cellular during the first quarter ended March 31, 2002. Consequently, all comparisons exclude the results of the five sold properties both in 2001 and 2002.
2002 Annual Meeting of Stockholders
In addition, Dobson announced that its 2002 Annual Meeting of Stockholders will be held on Tuesday, June 4, 2002, beginning at 9 a.m. CT. The stockholders' meeting will be held at the Company's headquarters at 14201 Wireless Way, Oklahoma City, 73134 -- which is located northeast of the intersection of West Memorial Road and North Portland Avenue. The shareholder record date for the annual meeting will be April 19, 2002.
Dobson Communications is a leading provider of wireless phone services to rural markets in the United States. Headquartered in Oklahoma City, the rapidly growing Company owns or manages wireless operations in 19 states. For additional information on the Company and its operations, please visit its Website 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 increased levels of competition, restrictions on the Company's ability to finance its growth, any market changes that would significantly decrease consumer demand for wireless products, 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 filed with the Securities and Exchange Commission. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements.