OKLAHOMA CITY, Nov. 14, 2002 (PRIMEZONE) -- Dobson Communications Corporation (OTCBB:DCEL) reported net income of $13.9 million for the three months ended September 30, 2002, compared with a net loss of $22.9 million for the third quarter last year. The most recent quarter's results included an extraordinary gain of $1.6 million, while last year's loss included a $15.4 million loss on Dobson's joint venture investment.
Dobson reported total revenue of $169.1 million for the third quarter, an increase of almost three percent over total revenue of $164.8 million for the third quarter of 2001. Local service revenue -- a key operating metric for the Company -- was $97.8 million for the quarter, an increase of 12 percent over local service revenue of $87.0 million for the third quarter last year.
Third quarter roaming revenue declined 9.6 percent compared with the same period last year, primarily reflecting the lower initial rate in Dobson's new 10-year roaming agreement with Cingular Wireless and the scheduled step-down in the roaming rate that Dobson charges AT&T Wireless (NYSE:AWE). Roaming traffic on the Dobson network was approximately 32 percent higher in the third quarter than it was in the same period last year.
EBITDA was $75.4 million for the third quarter of 2002, or 8.2 percent above last year's third quarter total of $69.7 million. This increase reflected an EBITDA margin of 44.6 percent of total revenue in the most recent quarter, compared with 42.3 percent for the same quarter last year. Stronger revenue and profitability in its local service business contributed to the margin increase, the Company said.
EBITDA represents earnings before interest, taxes, depreciation, amortization, loss from investment in joint venture, income (loss) from discontinued operations, loss from change in accounting principle and income from extraordinary items. EBITDA does not include the 2001 or 2002 operating results of the four properties that Dobson sold to Verizon Wireless (NYSE:VZ) in February 2002.
Along with higher EBITDA, the Company's increase in operating profits for the quarter reflected the implementation of SFAS No. 142. Dobson and its subsidiary, American Cellular Corporation, recorded one-time charges at the beginning of 2002 with regard to SFAS No. 142, and consequently Dobson ceased amortizing the cost of wireless licenses for both companies and of goodwill for American Cellular. For the third quarter of 2002, Dobson's operating income was $52.3 million, reflecting $23.0 million in depreciation and amortization expenses. For the same quarter last year, operating income was $23.2 million, less than half of the most recent quarter. However, in the third quarter of 2001, the Company recorded $46.4 million in depreciation and amortization expenses.
Dobson recorded net income of $13.9 million for the third quarter of 2002, which included an extraordinary gain of $1.6 million, net of tax. This gain reflected the repurchase, through a subsidiary of Dobson Communications Corporation, of $11.5 million (principal value) of 12.25% Dobson/Sygnet Senior Notes during the third quarter.
Earnings applicable to common shareholders for the quarter was $19.4 million, or $0.21 per share, compared with a net loss applicable to common shareholders of $45.4 million, or $0.48 per share, for the same period last year.
The third quarter 2002 earnings applicable to common shareholders included $24.8 million in non-cash dividends on preferred stock and $30.2 million in excess of carrying value over the repurchase price of preferred stock. This $30.2 million reflected the repurchase, through a subsidiary of Dobson Communications Corporation, of $41.1 million (liquidation preference amount) of its 12.25% and 13% Senior Exchangeable Preferred Stock during the quarter.
Subsequent to the end of the third quarter, the Company, through a subsidiary, repurchased an additional $31.5 million (liquidation preference amount) of its Senior Exchangeable Preferred Stock and, based on these purchases, expects to record an excess of carrying value over the repurchase price of preferred stock of $21.8 million in the fourth quarter. The Company advises that from time to time it may continue to make additional repurchases of its outstanding Preferred Stock, Senior Notes or Dobson/Sygnet Notes in open market or privately negotiated transactions at prices the Company deems appropriate. The aggregate amount of these future purchases may be deemed to be material; however, there is no assurance that any purchases will be made.
Along with the previously noted $15.4 million loss from Dobson's investment in the American Cellular joint venture, last year's third quarter net loss applicable to common shareholders included $22.4 million in non-cash dividends.
One of the Company's key operating goals this year has been to improve the profitability of its local service business. In the third quarter:
- Approximately 69 percent of the Company's gross subscriber additions were for preferred network plans that reward customers for concentrating their calling on the Dobson network, that of American Cellular, and the networks of Dobson's major roaming partners. - Average revenue per unit (ARPU) for the third quarter of 2002 was approximately $45, slightly higher than that for the same quarter last year. - Cash cost per unit (CCPU) in the third quarter was approximately $22, down from almost $25 for the same period last year, despite average customer minutes of use (MOUs) increasing almost 24 percent in the most recent quarter. CCPU reflects local operating costs and excludes expenses related to new subscriber acquisition and to the Company's roaming business. - In the third quarter, EBITDA margin on local service revenue rose to 23.6 percent, compared with 13.7 percent for the same quarter last year. This calculation of local service EBITDA margin assumes an EBITDA margin of 80 percent on the roaming revenue component of its total revenue.
Dobson migrated approximately 18,100 analog customers to digital calling plans during the third quarter, compared with 23,000 in the same period last year. At the end of the third quarter, approximately 87 percent of Dobson's customers were on digital calling plans. As previously announced, Dobson recorded 58,800 postpaid gross subscriber additions for the quarter, postpaid customer churn of 2.0 percent, and 14,300 total net subscriber additions.
Capital expenditures were approximately $22.4 million in the third quarter, bringing total capital expenditures for the first nine months of 2002 to $65.1 million.
At September 30, 2002, Dobson had $287.3 million in unrestricted cash. The Company also had $14.1 million in restricted cash in escrow related to the four properties it sold to Verizon. At the end of the quarter, Dobson had approximately $130 million in available borrowing capacity under its subsidiaries' credit facilities.
Finally, Dobson's board of directors has authorized the repurchase of up to 10 million shares of its outstanding Class A common stock from time to time during a period from November 7, 2002, to November 6, 2003. Purchases may be made in the open market, through block trades, through privately negotiated transactions or otherwise, and some or all of the shares purchased under this stock purchase program may be used to fund the Company's stock option plans, employee stock purchase plan and to fund incentive compensation plans for key employees. There were approximately 35.1 million shares of Dobson Class A common stock outstanding as of November 6, 2002.
To date, no purchases have been made under the new stock purchase plan. Dobson announced that, pursuant to its previously announced stock repurchase program initiated September 15, 2001, and ended September 14, 2002, the Company purchased approximately 4.6 million shares of its Class A common stock.
American Cellular Corporation
American Cellular's results also continued to improve (Table 5), with net income for the quarter ended September 30, 2002 of $3.1 million, compared with a net loss of $31.2 million for the same period last year.
American reported total revenue of $124.2 million for the third quarter, an increase of 6.6 percent over $116.5 million for the same period last year. Local service revenue at the company was $79.4 million for the quarter, an increase of 10.6 percent over the total of $71.8 million for the same quarter of 2001.
Roaming revenue for the third quarters of this year and in 2001 was approximately $40.2 million. American Cellular maintained this level of roaming revenue despite lower roaming rates in 2002, as previously noted.
American Cellular's EBITDA increased 9.3% to $53.3 million for the quarter, compared with $48.8 million for the same period last year. EBITDA margin was 42.9 percent, compared with 41.9 percent in the third quarter last year.
After depreciation and amortization expenses, American Cellular recorded $36.4 million in operating income for the three months ended September 30, 2002, compared with $2.3 million for the same period last year. As noted above, due to the adoption of SFAS No. 142, American Cellular is no longer amortizing goodwill or the cost of its investment in wireless licenses. In the current year's third quarter, American Cellular recorded $17.0 million in depreciation and amortization expenses, compared with $46.5 million for the same period last year.
As with Dobson, American Cellular continues to benefit by selling plans that concentrate customer calling on its networks and those of its major roaming partners.
- Approximately 79 percent of the American's gross subscriber additions in the quarter were for preferred network plans. - Average revenue per unit (ARPU) for the third quarter of 2002 was approximately $41, in line with that for the same quarter last year. - Cash cost per unit (CCPU) in the third quarter was approximately $19, compared with CCPU of approximately $20 for the same period last year, despite a significant increase in its monthly average customer minutes of use (MOUs). - EBITDA margin on local service revenue rose to 26.6 percent for the third quarter, compared with 23.2 percent for the same quarter last year.
American migrated approximately 20,300 analog customers to digital calling plans during the quarter, compared with 18,500 in the same period last year. At the end of the third quarter, approximately 84 percent of its customers were on digital calling plans. As previously announced, American recorded 49,900 postpaid gross subscriber additions for the quarter, postpaid churn of 2.0 percent, and 15,200 total net subscriber additions.
American Cellular's capital expenditures were approximately $8.8 million in the third quarter, bringing its year-to-date total to $38.8 million.
American Cellular had approximately $6.0 million unrestricted cash and $75.2 million in restricted cash on its balance sheet as of September 30, 2002. Of the restricted cash, $67.0 million is in escrow to pay interest on its 9.5% Senior Subordinated Notes, and the remainder is in escrow related to the sale of the Tennessee RSA No. 4 to Verizon. American Cellular is currently restricted from additional borrowing on its bank credit facility, but anticipates that its cash flow from operations will be sufficient to meet short-term cash needs.
Since June 30, 2002, American Cellular has been in violation of the total debt leverage ratio covenant in its bank credit facility. Because of this, American Cellular's banks have the right, but not the obligation, to accelerate repayment of the outstanding balance of its credit facility, which at September 30, 2002, was approximately $904.9 million, down from $915.6 million at June 30, 2002. To date, no such acceleration has occurred, and American Cellular's management continues to hold discussions with its bank lenders concerning the bank credit facility.
American Cellular's debt is non-recourse to Dobson Communications and to American Cellular's other owner, AT&T Wireless.Conference Call Dobson plans to conduct a conference call to discuss its third quarter results on Friday, November 15, beginning at 9 a.m. ET (8 a.m. CT). On the conference call, the Company expects to discuss current market conditions and its operating outlook. The call will also be broadcast on the Internet.
Those interested may access the call by dialing:
Conference call (800) 665-0430
Pass code 338308
The call may also be accessed via the Internet through the Investor Relations page of Dobson's web site at www.dobson.net. 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 338308
The replay will be available by phone for two weeks.
Dobson Communications is a leading provider of wireless phone services to rural and suburban markets in the United States. Headquartered in Oklahoma City, the rapidly growing Company owns or manages wireless operations in 17 states. For additional information on the Company and its operations, please visit its Web site at www.dobson.net.
Table 1
Dobson Communications Corporation
Statements of Operations
(Includes American Cellular ownership on an equity basis)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ ------------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
Operating Revenue
Service revenue $ 97,794 $ 86,963 $ 278,757 $ 243,670
Roaming revenue 65,312 72,209 178,067 187,687
Equipment & other
revenue 6,000 5,672 15,288 17,925
----------- ----------- ----------- -----------
Total 169,106 164,844 472,112 449,282
----------- ----------- ----------- -----------
Operating Expenses
(excluding
depreciation
& amortization)
Cost of service 42,058 44,846 125,915 122,510
Cost of
equipment 12,124 12,679 34,754 38,815
Marketing &
selling 19,064 18,659 56,063 55,883
General &
administrative 20,510 19,004 59,702 56,450
----------- ----------- ----------- -----------
Total 93,756 95,188 276,434 273,658
----------- ----------- ----------- -----------
EBITDA 75,350 69,656 195,678 175,624
Depreciation &
amortization (23,020) (46,430) (66,084) (136,307)
----------- ----------- ----------- -----------
Operating income 52,330 23,226 129,594 39,317
Minority
interest (2,082) (1,650) (5,179) (4,398)
Loss from
investment in
joint venture(1) -- (15,353) (184,381) (50,691)
Other income, net 562 2,140 3,330 5,689
----------- ----------- ----------- -----------
Income (loss)
before interest
& income taxes 50,810 8,363 (56,636) (10,083)
Interest expense (31,059) (35,221) (91,956) (111,349)
Income tax
(expense)
benefit (7,506) 4,574 46,440 27,065
----------- ----------- ----------- -----------
Income (loss)
from continuing
operations 12,245 (22,284) (102,152) (94,367)
Discontinued
operations:
(Loss) income
from discontinued
operations,
net of taxes -- (443) 5,121 (3,899)
Loss from
discontinued
operations from
investment in
joint venture -- (222) (327) (644)
Gain from disposal
of discontinued
operations,
net of taxes -- -- 88,315 --
Gain from disposal
of discontinued
operations from
investment in
joint venture -- -- 6,736 --
----------- ----------- ----------- -----------
Income (loss)
before cumulative
effect of change
in accounting
principle 12,245 (22,949) (2,307) (98,910)
Cumulative effect
of change in
accounting
principle, net
of taxes -- -- (33,294) --
Cumulative effect
of change in
accounting
principle from
investment in
joint venture -- -- (140,820) --
----------- ----------- ----------- -----------
Income (loss)
before extra-
ordinary items 12,245 (22,949) (176,421) (98,910)
Extraordinary
gain, net of
taxes 1,635 -- 1,635 --
----------- ----------- ----------- -----------
Net Income (loss) 13,880 (22,949) (174,786) (98,910)
Dividends on
preferred
stock (24,753) (22,427) (71,614) (63,433)
Excess of carrying
value over re-
purchase price
of preferred
stock 30,232 -- 30,232 --
----------- ----------- ----------- -----------
Earnings
applicable to
common
shareholders $ 19,359 $ (45,376) $ (216,168) $ (162,343)
=========== =========== =========== ===========
Basic earnings
applicable to
common share-
holders per
common share:
Continuing
operations $ 0.13 $ (0.23) $ (1.12) $ (1.00)
Discontinued
operations -- (0.01) 1.10 (0.05)
Change in
accounting
principle -- -- (1.92) --
Extraordinary
gain 0.02 -- 0.02 --
Dividends on
and repurchase
of preferred
stock 0.06 (0.24) (0.46) (0.67)
----------- ----------- ----------- -----------
Total basic and
diluted earnings
applicable to
common share-
holders per
common share $ 0.21 $ (0.48) $ (2.38) $ (1.72)
=========== =========== =========== ===========
Basic and diluted
weighted average
common shares
outstanding 90,151,246 94,208,662 90,861,205 94,166,437
=========== =========== =========== ===========
(1) Represents the Company's 50% ownership in the Net Loss from
American Cellular, up to the amount invested.
Detailed as follows:
For the For the
three months nine months
ended ended
September 30, September 30,
2002 2001 2002 2001
-------- -------- -------- --------
EBITDA 53,330 48,800 135,201 118,009
Depreciation and
Amortization (16,951) (46,461) (49,695) (134,924)
Interest Expense (29,926) (42,855) (109,248) (123,800)
Other Income, net 680 673 964 2,478
Income tax
benefit (2,853) 10,013 9,111 37,730
Impairment of
Goodwill -- -- (377,000) --
Dividends on
preferred stock (1,182) (875) (3,444) (875)
-------- -------- -------- --------
Net Income (Loss)
of American Cellular
from continuing
operations (100%) 3,098 (30,705) (394,111) (101,382)
======== ======== ======== ========
Table 2
Dobson Communications Corporation
Selected Financial Data
September 30, 2002
($ in millions)
Cash and cash equivalents $ 287.3
==========
Total Debt: (1)
Dobson Operating Co., L.L.C. credit facility $ 504.9
Dobson/Sygnet credit facility 284.9
DCC 10.875% Senior Notes, net 298.2
Dobson/Sygnet Senior Notes 188.5
----------
Total debt $ 1,276.5
==========
Preferred Stock:
Series AA Preferred Stock, 5.96% $ 200.0
Senior Exchangeable Preferred Stock, 12.25%, net 393.0
Senior Exchangeable Preferred Stock, 13.00% 258.9
----------
Total preferred stock $ 851.9
==========
Nine months ended
September 30, 2002
($ in millions)
Capital Expenditures:(2) $ 65.1
==========
(1) Does not include our proportionate interest in American
Cellular's total debt of $1.6 billion.
(2) Does not include our proportionate share of American Cellular's
capital expenditures for the nine months ended September 30, 2002
totaling $38.8 million.
Table 3
Dobson Communications Corporation
Proportionately Consolidated Selected Financial Information
(Includes 50% of American Cellular's operations
to represent proportionate ownership)
For the Quarter Ended
9/30/01 12/31/01 3/31/02 6/30/02 9/30/02
---------- ---------- ---------- ---------- ----------
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 122,869 $ 119,553 $ 121,767 $ 132,420 $ 137,509
Roaming
revenue 92,286 75,468 65,177 78,671 85,431
Equipment
& other
revenue 7,963 7,249 6,123 6,695 8,267
---------- ---------- ---------- ---------- ----------
Total 223,118 202,270 193,067 217,786 231,207
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding
depreciation &
amortization)
Cost of
service 59,034 56,092 54,315 57,866 56,254
Cost of
equipment 17,060 15,715 15,055 15,149 16,651
Marketing &
selling 25,968 25,937 24,587 26,605 26,580
General &
adminis-
trative 27,000 26,010 28,038 27,973 29,707
---------- ---------- ---------- ---------- ----------
Total 129,062 123,754 121,995 127,593 129,192
---------- ---------- ---------- ---------- ----------
EBITDA(1) $ 94,056 $ 78,516 $ 71,072 $ 90,193 $ 102,015
========== ========== ========== ========== ==========
EBITDA
Margin 42.2% 38.8% 36.8% 41.4% 44.1%
Pops 8,852,500 8,852,500 8,852,500 8,852,500 8,852,500
Post-paid
Gross Adds 85,950 92,500 81,800 85,750 83,750
Net Adds 34,650 34,300 16,150 34,100 21,100
Subscrib-
ers 940,600 971,450 987,600 1,021,700 1,042,800
Churn 1.9% 2.0% 2.2% 1.7% 2.0%
Average
Service
Revenue per
Subscriber $44 $41 $41 $43 $44
Average Service
and Roaming
Revenue per
Subscriber $77 $68 $63 $69 $72
Pre-paid
Net Adds 400 2,450 1,600 (3,800) (4,750)
Subscribers 17,400 16,950 18,550 14,750 10,000
Reseller
Net Adds 4,300 5,850 (600) (150) 5,550
Subscribers 22,000 27,850 27,250 27,100 32,650
Total
Net Adds 39,350 42,600 17,150 30,150 21,900
Subscrib-
ers(2) 980,000 1,016,250 1,033,400 1,063,550 1,085,450
Penetra-
tion 11.1% 11.5% 11.7% 12.0% 12.3%
(1) Includes $2.1 million, $1.9 million, $1.9 million, $2.1 million
and $2.2 million of EBITDA for the quarters ended September 30,
2001, December 31, 2001, March 31, 2002, June 30, 2002 and
September 30, 2002 respectively, related to minority interests.
(2) Billing reconciliation included in fourth quarter 2001
subscribers.
Table 4
Dobson Communications Corporation
For the Quarter Ended
9/30/01 12/31/01 3/31/02 6/30/02 9/30/02
---------- ---------- ---------- ---------- ----------
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 86,963 $ 85,359 $ 86,674 $ 94,290 $ 97,794
Roaming
revenue 72,209 59,943 51,880 60,875 65,312
Equipment
& other
revenue 5,672 4,820 4,571 4,716 6,000
---------- ---------- ---------- ---------- ----------
Total 164,844 150,122 143,125 159,881 169,106
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding
depreciation
& amortiza-
tion)
Cost of
service 44,846 41,688 40,628 43,229 42,058
Cost of
equipment 12,679 11,939 11,333 11,298 12,124
Marketing &
selling 18,659 18,915 17,800 19,198 19,064
General &
adminis-
trative 19,004 18,033 19,697 19,495 20,510
---------- ---------- ---------- ---------- ----------
Total 95,188 90,575 89,458 93,220 93,756
---------- ---------- ---------- ---------- ----------
EBITDA(1) $ 69,656 $ 59,547 $ 53,667 $ 66,661 $ 75,350
========== ========== ========== ========== ==========
EBITDA
Margin 42.3% 39.7% 37.5% 41.7% 44.6%
Pops 6,354,000 6,354,000 6,354,000 6,354,000 6,354,000
Post-paid
Gross Adds 58,800 65,000 58,400 61,400 58,800
Net Adds 22,800 22,800 11,100 25,900 15,500
Subscrib-
ers 648,100 668,800 679,900 705,800 721,300
Churn 1.88% 2.14% 2.29% 1.71% 2.02%
Average
Service
Revenue
per Sub-
scriber $45 $43 $42 $45 $45
Average
Service
and Roaming
Revenue
per Sub-
scriber $83 $73 $68 $74 $76
Pre-paid
Net Adds 600 2,700 1,700 (3,700) (4,600)
Subscrib-
ers 14,800 14,600 16,300 12,600 8,000
Reseller
Net Adds 3,200 4,900 (700) 100 3,400
Subscrib-
ers 11,900 16,800 16,100 16,200 19,600
Total
Net Adds 26,600 30,400 12,100 22,300 14,300
Subscrib-
ers(2) 674,800 700,200 712,300 734,600 748,900
Penetra-
tion 10.6% 11.0% 11.2% 11.6% 11.8%
(1) Includes $2.1 million, $1.9 million, $1.9 million, $2.1 million
and $2.2 million of EBITDA for the quarters ended September 30,
2001, December 31, 2001, March 31, 2002, June 30, 2002 and
September 30, 2002 respectively, related to minority interests.
(2) Billing reconciliation included in fourth quarter 2001
subscribers.
Table 5
American Cellular Corporation
For the Quarter Ended
9/30/01 12/31/01 3/31/02 6/30/02 9/30/02
---------- ---------- ---------- ---------- ----------
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 71,812 $ 68,389 $ 70,187 $ 76,260 $ 79,430
Roaming
revenue 40,154 31,050 26,593 35,592 40,237
Equipment
& other
revenue 4,583 4,858 3,103 3,958 4,535
---------- ---------- ---------- ---------- ----------
Total 116,549 104,297 99,883 115,810 124,202
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding
depreciation
& amortization)
Cost of
service 28,375 28,807 27,374 29,273 28,392
Cost of
equipment 8,762 7,552 7,446 7,704 9,053
Marketing &
selling 14,619 14,045 13,574 14,813 15,031
General &
adminis-
trative 15,993 15,954 16,682 16,956 18,396
---------- ---------- ---------- ---------- ----------
Total 67,749 66,358 65,076 68,746 70,872
---------- ---------- ---------- ---------- ----------
EBITDA $ 48,800 $ 37,939 $ 34,807 $ 47,064 $ 53,330
========== ========== ========== ========== ==========
EBITDA
Margin 41.9% 36.4% 34.8% 40.6% 42.9%
Pops 4,997,000 4,997,000 4,997,000 4,997,000 4,997,000
Post-paid
Gross Adds 54,300 55,000 46,800 48,700 49,900
Net Adds 23,700 23,000 10,100 16,400 11,200
Subscrib-
ers 585,000 605,300 615,400 631,800 643,000
Churn 1.8% 1.8% 2.0% 1.7% 2.0%
Average
Service
Revenue
per Sub-
scriber $41 $38 $38 $40 $41
Average
Service
and
Roaming
Revenue
per Sub-
scriber $65 $55 $52 $59 $62
Pre-paid
Net Adds (400) (500) (200) (200) (300)
Subscrib-
ers 5,200 4,700 4,500 4,300 4,000
Reseller
Net Adds 2,200 1,900 200 (500) 4,300
Subscrib-
ers 20,200 22,100 22,300 21,800 26,100
Total
Net Adds 25,500 24,400 10,100 15,700 15,200
Subscrib-
ers(1) 610,400 632,100 642,200 657,900 673,100
Penetra-
tion 12.2% 12.6% 12.9% 13.2% 13.5%
(1) Billing reconciliation included in fourth quarter 2001
subscribers.
Table 6
Dobson Operating Company LLC
For the Quarter Ended
9/30/01 12/31/01 3/31/02 6/30/02 9/30/02
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 51,476 $ 50,591 $ 52,501 $ 56,999 $ 58,676
Roaming
revenue 59,094 47,753 41,561 48,358 52,116
Equipment
& other
revenue 4,033 3,169 3,202 3,418 3,921
---------- ---------- ---------- ---------- ----------
Total 114,603 101,513 97,264 108,775 114,713
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding
depreciation
& amortization)
Cost of
service 33,096 30,289 29,675 31,640 30,775
Cost of
equipment 7,424 5,975 6,905 6,867 7,147
Marketing
& selling 12,391 12,045 11,765 12,716 12,599
General &
adminis-
trative 12,025 11,704 12,883 12,346 13,013
---------- ---------- ---------- ---------- ----------
Total 64,936 60,013 61,228 63,569 63,534
---------- ---------- ---------- ---------- ----------
EBITDA(1) $ 49,667 $ 41,500 $ 36,036 $ 45,206 $ 51,179
========== ========== ========== ========== ==========
EBITDA
Margin 43.3% 40.9% 37.1% 41.6% 44.6%
Pops 3,996,300 3,996,300 3,996,300 3,996,300 3,996,300
Post-paid
Gross Adds 38,000 36,400 36,500 39,400 36,800
Net Adds 16,000 12,000 7,200 16,100 6,200
Subscrib-
ers 374,000 384,200 391,400 407,500 413,700
Churn 2.0% 2.2% 2.4% 1.9% 2.5%
Average
Service
Revenue
per Sub-
scriber $46 $44 $44 $47 $47
Revenue
per Sub-
scriber $100 $86 $80 $87 $89
Pre-paid
Net Adds 300 2,400 1,600 (3,600) (4,600)
Subscrib-
ers 13,700 14,000 15,600 12,000 7,400
Reseller
Net Adds 1,400 1,600 (1,000) 500 3,700
Subscrib-
ers 10,100 11,700 10,700 11,200 14,900
Total
Net Adds 17,700 16,000 7,800 13,000 5,300
Subscrib-
ers(2) 397,800 409,900 417,700 430,700 436,000
Penetra-
tion 10.0% 10.3% 10.5% 10.8% 10.9%
(1) Includes $2.1 million, $1.9 million, $1.9 million, $2.1 million
and $2.2 million of EBITDA for the quarters ended September 30,
2001, December 31, 2001, March 31, 2002, June 30, 2002 and
September 30, 2002 respectively, related to minority interests.
(2) Billing reconciliation included in fourth quarter 2001
subscribers.
Table 7
Dobson/Sygnet Communications Company
For the Quarter Ended
9/30/01 12/31/01 3/31/02 6/30/02 9/30/02
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 35,484 $ 34,769 $ 34,076 $ 37,097 $ 39,118
Roaming
revenue 13,115 12,189 10,319 12,516 13,196
Equipment
& other
revenue 1,639 1,651 1,370 1,298 2,079
---------- ---------- ---------- ---------- ----------
Total 50,238 48,609 45,765 50,911 54,393
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding
depreciation &
amortization)
Cost of
service 11,750 11,399 10,953 11,589 11,284
Cost of
equipment 5,255 5,964 4,428 4,431 4,977
Marketing &
selling 6,268 6,870 6,035 6,482 6,465
General &
adminis-
trative 6,986 6,332 6,510 6,980 7,326
---------- ---------- ---------- ---------- ----------
Total 30,259 30,565 27,926 29,482 30,052
---------- ---------- ---------- ---------- ----------
EBITDA $ 19,979 $ 18,044 $ 17,839 $ 21,429 $ 24,341
========== ========== ========== ========== ==========
EBITDA
Margin 39.8% 37.1% 39.0% 42.1% 44.8%
Pops 2,357,700 2,357,700 2,357,700 2,357,700 2,357,700
Post-paid
Gross Adds 20,800 28,600 21,900 22,000 22,000
Net Adds 6,800 10,800 3,900 9,800 9,300
Subscrib-
ers 274,100 284,600 288,500 298,300 307,600
Churn 1.7% 2.1% 2.1% 1.4% 1.4%
Average
Service
Revenue
per Sub-
scriber $44 $41 $39 $42 $43
Average
Service
and Roaming
Revenue
per Sub-
scriber $60 $56 $51 $56 $57
Pre-paid
Net Adds 300 300 100 (100) --
Subscrib-
ers 1,100 600 700 600 600
Reseller
Net Adds 1,800 3,300 300 (400) (300)
Subscrib-
ers 1,800 5,100 5,400 5,000 4,700
Total
Net Adds 8,900 14,400 4,300 9,300 9,000
Subscrib-
ers(1) 277,000 290,300 294,600 303,900 312,900
Penetra-
tion 11.7% 12.3% 12.5% 12.9% 13.3%
(1) Billing reconciliation included in fourth quarter 2001
subscribers.