OKLAHOMA CITY, Feb. 19, 2002 (PRIMEZONE) -- For the quarter ended December 31, 2001, Dobson Communications Corporation (Nasdaq:DCEL) reported total revenue of $150.1 million, an increase of 16 percent over revenue for the same period last year. EBITDA for the final quarter of the year was $59.5 million, 47 percent higher than that for the same quarter of 2000. EBITDA represents earnings before interest, taxes, depreciation, amortization, loss from investment in joint venture and income (loss) from discontinued operations.
These revenue and EBITDA totals include and give effect to the sale of four properties and the planned sale of one additional property to Verizon Wireless (NYSE:VZ) by Dobson Communications and American Cellular. On February 11, 2002, the Company sold single markets in California, Georgia, Ohio and Tennessee to Verizon, and it plans to complete the sale of its partnership interest in the Arizona No. 5 Rural Service Area (RSA) by March 1, 2002. The results of operations from the four properties that were sold and the fifth that is planned for sale are shown in Table 1 as discontinued operations, in accordance with Generally Accepted Accounting Principles (GAAP).
Dobson accounts for its 50 percent interest in American Cellular on an equity basis (Table 1). Dobson and AT&T Wireless (NYSE:AWE) acquired American Cellular in February 2000.
Dobson's fourth quarter net loss applicable to common shareholders was $52.3 million, or $0.56 per share, based on 93.4 million average shares outstanding. The net loss included non-cash preferred stock dividends of $22.9 million and a loss related to American Cellular of $18.6 million.
In the fourth quarter last year, the net loss applicable to common shareholders was $66.2 million, or $0.71 per share, based on an average 93.8 million shares outstanding. This included non-cash preferred stock dividends of $17.6 million and a loss related to American Cellular of $19.2 million.
"Our performance was again strong in the fourth quarter, despite the economic slowdown and weakened consumer confidence," said Everett Dobson, chairman and chief executive officer. "In 2001, we delivered four quarters of consistent growth and excellent operating performance, setting the stage for another strong year in 2002."
With the beginning of 2002, Dobson added two other key achievements. On January 28, the Company announced a new, 10-year roaming agreement with Cingular Wireless, its second largest roaming partner, under which Dobson expects increased roaming traffic from Cingular on its networks. Dobson also committed to further upgrading the voice and data service capabilities of its networks with 2.5-generation, GSM/GPRS technology.
"By adding GSM/GPRS to our state-of-the-art TDMA network, we will have the opportunity to provide roaming services to three of the six national wireless carriers and broaden the range of service offerings that we can provide to our own subscribers," Mr. Dobson said.
For the year ended December 31, 2001, Dobson reported $599.4 million in total revenue, compared with $475.9 million in the previous year; and a net loss applicable to common shareholders of $214.6 million, or $2.28 per share, compared with a net loss applicable to common shareholders of $271.5 million, or $3.04 per share, for the year 2000. The most recent year's net loss applicable to common shareholders included $1.3 million in income from discontinued operations, net of taxes, and $86.3 million in dividends on preferred stock. The year 2000 net loss applicable to common shareholders included a $5.9 million loss from discontinued operations, net of taxes; a $20.4 million extraordinary expense; and $126.7 million in dividends on preferred stock.
Proportionate 4Q Results
Dobson's proportionate results for the fourth quarter also reflected strong increases in revenue, EBITDA and the other key metrics related to its growth strategy. Proportionate results reflect Dobson's 50 percent ownership in American Cellular (Table 3) and include and give effect to the sale of four properties and the planned sale of one additional property to Verizon Wireless.
Proportionate total revenue for the fourth quarter was $202.3 million, a 15 percent increase over revenue of $175.5 million for the same period last year. Fourth quarter EBITDA rose to $78.5 million, a 38 percent increase over EBITDA of $57.0 million for the same period last year (proportionate).
Growth in service revenue related primarily to Dobson's increased base of digital subscribers and the higher service ARPU paid by customers on digital calling plans. ARPU was $41 for the fourth quarter (proportionate, postpaid), compared with $40 in the same quarter last year. Digital customers were particularly important to this increase, generating average monthly revenue of $46 in the fourth quarter of 2001, compared with analog ARPU of $27.
Revenue growth was also supported by continued strength in roaming revenue, based on 236 million roaming minutes-of-use (MOUs) during the quarter (proportionate), an increase of 34 percent over roaming MOUs for the fourth quarter of 2000. For the year as a whole, roaming MOUs were 914 million, a 52 percent increase over proportionate roaming MOUs in 2000.
Fourth quarter gross subscriber additions (proportionate, postpaid) were approximately 98,350. Customer churn remained at 2.0 percent (proportionate, postpaid) for the quarter, well below the average for the U.S. wireless industry and the rural sector. This was in line with churn of in the fourth quarter last year.
Dobson generated approximately 42,600 proportionate net subscriber additions in the fourth quarter of 2001. The Company increased its total year-end proportionate subscriber base to 1.0 million. Again, these totals exclude the operating results of the four properties that were sold and the one that is planned for sale to Verizon Wireless.
Dobson's continuing shift to digital was further enhanced with the migration of approximately 26,550 analog customers to digital calling plans during the quarter. Consequently, as of year-end 2001, 74 percent of Dobson's proportionate subscriber base was digital, compared with 44 percent at the end of 2000.
For the year 2001, Dobson's proportionate total revenue was $808.0 million, compared with $630.6 million for the previous year. EBITDA on a proportionate basis was $313.1 million for 2001, compared with $254.6 million for 2000.
Dobson's net loss and net loss applicable to common shareholders, on a proportionate basis, is identical to its GAAP reporting for 2000 and 2001 (Table 1).
2001 Performance versus Guidance
This strong fourth quarter enabled Dobson to achieve its key goals for 2001 as a whole, in terms of increased subscribers, revenue and EBITDA.
In contrast with the rest of this report, which is reported on a GAAP basis, the following measures include the operating results of the four properties that were sold and the fifth property that is planned for sale to Verizon Wireless (see Table 8). Thus, the following results are non-GAAP. They are proportionate, so they include Dobson's 50 percent interest in American Cellular, which is consistent with the Company's original guidance in early 2001.
-- Total net subscriber additions for 2001 were 165,600, compared to
a guided range of 162,000 to 172,000.
-- Average customer churn was 1.9% for the year, even more favorable
than the guided range of 2.0% to 2.25%.
-- 2001 ARPU was $42, compared to projected ARPU of approximately
$40.
-- Total revenue for 2001 was $902 million, a 20 percent increase.
Dobson originally projected revenue to increase between 16 and 18
percent, or a range of $870 million to $885 million. And,
-- EBITDA of $356 million was on target with the projected range of
$355 million to $361 million, which represented growth of 16 to
18 percent.
"I'm very pleased with how well our employee team executed our plan for 2001," Mr. Dobson said.
Network Development
Apart from the properties sold or planned for sale to Verizon, fourth quarter capital expenditures were $12.7 million in the Dobson network and $11.5 million in the American Cellular networks. This brought full-year capital expenditures to $93.0 million and $74.9 million respectively.
This investment has resulted in a remarkable strengthening of Dobson's managed networks:
-- In the past year, the Company increased total cell sites by 28
percent, from 1,235 at the beginning of the year to 1,576.
-- The number of total voice paths in the combined networks
increased from 29,410 to 45,329 during the year, or 54 percent.
-- In line with Dobson shifting its subscriber base to 74 percent
digital, the number of digital voice paths in the combined
networks grew from 14,409 to 30,204 at year-end, an increase of
110 percent.
-- And, at December 31, 2000, digital voice traffic was 65 percent
of total network traffic -- this grew to 87 percent a year later,
and continues to trend upward.
Dobson's two-year digital build-out was critical to the signing of a new, 10-year roaming agreement with Cingular. In addition, the Company's planned GSM/GPRS overlay will further enhance the networks' capabilities for Dobson's key roaming partners, provide opportunities to establish new roaming relationships, and enhance service to the subscribers on its networks.
Conference Call To Include Guidance
Dobson plans to conduct a conference call to discuss its fourth quarter results on Wednesday, February 20, beginning at 9 a.m. ET (8 a.m. CT). The call will also be broadcast on the Internet. Those interested may access the call by dialing:
Conference call Nos. (800) 289-0730
Pass code 567966
The call may also be accessed via the internet through the Investor Relations page of Dobson's Website at www.dobson.net. A replay of the call will be available later in the day via Dobson's Website or by phone.
Replay No. (888) 203-1112
Pass code 567966
As part of the conference call, the Company expects to discuss its operating outlook and guidance for 2002, and other strategic issues.
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 17 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, but are not limited to, increased levels of competition, shortages of key equipment, restrictions on the Company's ability to finance its growth 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.
Table 1
Dobson Communications Corporation
Statements of Operations
(Includes American Cellular ownership on an equity basis)
Three Months Ended Year Ended
December 31, December 31,
----------------------- -----------------------
2001 2000 2001 2000
---- ---- ---- ----
Operating Revenue
Service revenue $ 85,359 $ 70,535 $ 329,029 $ 253,223
Roaming revenue 59,943 52,803 247,630 199,049
Equipment &
other revenue 4,820 6,617 22,745 23,674
---------- ---------- ---------- ----------
Total 150,122 129,955 599,404 475,946
---------- ---------- ---------- ----------
Operating Expenses
(excluding
depreciation
& amortization)
Cost of service 41,688 34,794 164,198 113,496
Cost of equipment 11,939 15,955 50,754 48,125
Marketing &
selling 18,915 20,801 74,798 67,442
General &
administrative 18,033 17,810 74,483 65,354
---------- ---------- ---------- ----------
Total 90,575 89,360 364,233 294,417
---------- ---------- ---------- ----------
EBITDA 59,547 40,595 235,171 181,529
Depreciation &
amortization (48,121) (44,644) (184,427) (157,022)
---------- ---------- ---------- ----------
Operating income
(loss) 11,426 (4,049) 50,744 24,507
Minority interest (1,497) (1,115) (5,895) (4,215)
Loss from
investment
in joint
venture (a) (18,565) (19,185) (69,901) (49,622)
Other (expense)
income, net (3,898) 876 1,791 5,519
---------- ---------- ---------- ----------
Loss before
interest &
income taxes (12,534) (23,473) (23,261) (23,811)
Interest expense (31,670) (39,716) (143,020) (136,636)
Income tax
benefit 9,585 16,653 36,650 41,916
---------- ---------- ---------- ----------
Loss from
continuing
operations (34,619) (46,536) (129,631) (118,531)
Income (loss)
from
discontinued
operations,
net of taxes 5,236 (2,066) 1,337 (5,922)
Extraordinary
expense, net
of income tax -- -- -- (20,387)
---------- ---------- ---------- ----------
Net Loss (29,383) (48,602) (128,294) (144,840)
Dividends on
preferred
stock (22,893) (17,616) (86,326) (126,686)
---------- ---------- ---------- ----------
Net loss
applicable
to common
shareholders $ (52,276) $ (66,218) $ (214,620) $ (271,526)
========== ========== ========== ==========
Basic net
loss
applicable
to common
shareholders
per common
share:
Continuing
operations $ (0.37) $ (0.50) $ (1.37) $ (1.32)
Discontinued
operations 0.06 (0.02) 0.01 (0.07)
Extraordinary
expense -- -- -- (0.23)
Dividends on
preferred
stock (0.25) (0.19) (0.92) (1.42)
---------- ---------- ---------- ----------
Basic net
loss
applicable
to common
shareholders
per common
share $ (0.56) $ (0.71) $ (2.28) $ (3.04)
========== ========== ========== ==========
Basic weighted
average common
shares
outstanding 93,384,356 93,816,208 93,969,310 89,417,829
========== ========== ========== ==========
(a) Represents the Company's 50% ownership in the Net Loss from
American Cellular. Detailed as follows:
EBITDA 37,939 32,714 155,947 146,163
Depreciation and
Amortization (47,713) (44,120) (182,637) (147,257)
Interest Expense (41,657) (41,695) (165,457) (132,447)
Other Income, net 1,245 18 3,723 536
Income tax benefit 14,470 15,191 52,200 32,929
Income (loss) from
Discontinued
operations, net
of taxes (150) (478) (1,439) 832
Dividends on
preferred stock (1,264) -- (2,139) --
-------- -------- -------- --------
Net Loss of
American Cellular (100%) (37,130) (38,370) (139,802) (99,244)
======== ======== ======== ========
Table 2
Dobson Communications Corporation
Selected Financial Data
December 31, 2001
--------------------
($ in millions)
Cash and cash equivalents $ 161.6
===================
Total Debt: (a)
Dobson Operating Co., L.L.C
credit facility $ 822.3
Dobson/Sygnet credit facility 300.1
DCC 10.875% Senior Notes, net 298.1
Dobson/Sygnet Senior Notes 200.0
Other 0.4
-------------------
Total debt $ 1,620.9
===================
Preferred Stock:
Series AA Preferred Stock, 5.96% $ 200.0
Senior Exchangeable Preferred Stock,
12.25%, net 356.9
Senior Exchangeable Preferred Stock,
13.00% 235.0
-------------------
Total preferred stock $ 791.9
===================
Year Ended
December 31, 2001
--------------------
($ in millions)
Capital Expenditures: (b) $ 93.0
====================
(a) Does not include our proportionate interest in American
Cellular's total debt of $1.81 billion.
(b) Does not include our proportionate share of American Cellular's
capital expenditures for the year ended December 31, 2001
totaling $74.9 million.
Table 3
Dobson Communications Corporation
Proportionately Consolidated Selected Financial Information
(Includes 50% of American Cellular's operations to represent
proportionate ownership)
For the Quarter Ended
12/31/00 3/31/01 6/30/01 9/30/01 12/31/01
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 99,554 $ 104,043 $ 115,831 $ 122,869 $ 119,553
Roaming
revenue 67,098 64,200 81,801 92,286 75,468
Equipment &
other revenue 8,850 8,062 8,699 7,963 7,249
---------- ---------- ---------- ---------- ----------
Total 175,502 176,305 206,331 223,118 202,270
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding
depreciation
& amorti-
zation)
Cost of
service 44,749 47,976 54,450 59,034 56,092
Cost of
equipment 21,568 18,778 17,792 17,060 15,715
Marketing &
selling 28,032 25,538 25,585 25,968 25,937
General &
Admini-
Strative 24,202 26,096 25,849 27,000 26,010
---------- ---------- ---------- ---------- ----------
Total 118,551 118,388 123,676 129,062 123,754
---------- ---------- ---------- ---------- ----------
EBITDA(a) $ 56,951 $ 57,917 $ 82,655 $ 94,056 $ 78,516
========== ========== ========== ========== ==========
EBITDA Margin 32.5% 32.9% 40.1% 42.2% 38.8%
Pops 8,722,800 8,852,500 8,852,500 8,852,500 8,852,500
Post-paid
Gross Adds 102,750 83,900 83,950 90,250 98,350
Net Adds 54,450 34,700 36,200 38,950 40,150
Subscribers 852,750 887,450 923,650 962,600 999,300
Churn 2.0% 2.0% 1.7% 1.8% 2.0%
Average
Service
Revenue per
Subscriber $ 40 $ 40 $ 42 $ 43 $ 41
Average
Service
and Roaming
Revenue per
Subscriber $ 67 $ 64 $ 73 $ 76 $ 66
Pre-paid
Net Adds 2,900 2,300 2,150 400 2,450
Subscribers 12,550 14,850 17,000 17,400 16,950
Total
Net Adds 57,350 37,000 38,350 39,350 42,600
Subscribers(b) 865,300 902,300 940,650 980,000 1,016,250
Penetration 9.9% 10.2% 10.6% 11.1% 11.5%
(a) Includes $1.5 million, $1.6 million, $2.0 million $2.1 million
and $1.9 million of EBITDA for the quarters ended December 31,
2000, March 31, 2001, June 30, 2001, September 30, 2001 and
December 31, 2001 respectively, related to minority interests.
(b) Billing reconciliation included in fourth quarter 2001
subscribers.
Table 4
Dobson Communications Corporation
For the Quarter Ended
12/31/00 3/31/01 6/30/01 9/30/01 12/31/01
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 70,535 $ 74,485 $ 82,222 $ 86,963 $ 85,359
Roaming
revenue 52,803 50,837 64,641 72,209 59,943
Equipment
& other
revenue 6,617 5,839 6,414 5,672 4,820
---------- ---------- ---------- ---------- ----------
Total 129,955 131,161 153,277 164,844 150,122
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding
deprecia-
tion &
amorti-
zation)
Cost of
service 34,794 36,304 41,359 44,846 41,688
Cost of
equipment 15,955 13,294 12,842 12,679 11,939
Marketing
& selling 20,801 18,487 18,737 18,659 18,915
General &
admini-
strative 17,810 19,056 18,391 19,004 18,033
---------- ---------- ---------- ---------- ----------
Total 89,360 87,141 91,329 95,188 90,575
---------- ---------- ---------- ---------- ----------
EBITDA(a) $ 40,595 $ 44,020 $ 61,948 $ 69,656 $ 59,547
========== ========== ========== ========== ==========
EBITDA
Margin 31.2% 33.6% 40.4% 42.3% 39.7%
Pops 6,354,000 6,354,000 6,354,000 6,354,000 6,354,000
Post-paid
Gross Adds 70,200 56,300 58,400 62,000 69,900
Net Adds 34,800 20,300 23,200 26,000 27,700
Sub-
scribers 590,500 610,800 634,000 660,000 685,600
Churn 2.1% 2.1% 1.8% 1.9% 2.1%
Average
Service
Revenue
per Sub-
scriber $ 41 $ 41 $ 44 $ 45 $ 42
Average
Service
and
Roaming
Revenue
per Sub-
scriber $ 72 $ 69 $ 78 $ 82 $ 72
Pre-paid
Net Adds 3,100 2,300 2,700 600 2,700
Subscribers 9,200 11,500 14,200 14,800 14,600
Total
Net Adds 37,900 22,600 25,900 26,600 30,400
Sub-
Scrib-
ers(b) 599,700 622,300 648,200 674,800 700,200
Pene-
tration 9.4% 9.8% 10.2% 10.6% 11.0%
(a) Includes $1.5 million, $1.6 million, $2.0 million $2.1 million
and $1.9 million of EBITDA for the quarters ended December 31,
2000, March 31, 2001, June 30, 2001, September 30, 2001 and
December 31, 2001 respectively, related to minority interests.
(b) Billing reconciliation included in fourth quarter 2001
subscribers.
Table 5
American Cellular Corporation
For the Quarter Ended
12/31/00 3/31/01 6/30/01 9/30/01 12/31/01
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 58,037 $ 59,117 $ 67,219 $ 71,812 $ 68,389
Roaming
revenue 28,589 26,727 34,320 40,154 31,050
Equipment
& other
revenue 4,468 4,446 4,568 4,583 4,858
---------- ---------- ---------- ---------- ----------
Total 91,094 90,290 106,107 116,549 104,297
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding
deprecia-
tion &
amorti-
zation)
Cost of
service 19,909 23,343 26,181 28,375 28,807
Cost of
equipment 11,227 10,968 9,900 8,762 7,552
Marketing
& selling 14,460 14,103 13,696 14,619 14,045
General &
admini-
strative 12,784 14,081 14,917 15,993 15,954
---------- ---------- ---------- ---------- ----------
Total 58,380 62,495 64,694 67,749 66,358
---------- ---------- ---------- ---------- ----------
EBITDA $ 32,714 $ 27,795 $ 41,413 $ 48,800 $ 37,939
========== ========== ========== ========== ==========
EBITDA
Margin 35.9% 30.8% 39.0% 41.9% 36.4%
Pops 4,737,600 4,997,000 4,997,000 4,997,000 4,997,000
Post-paid
Gross Adds 65,100 55,200 51,100 56,500 56,900
Net Adds 39,300 28,800 26,000 25,900 24,900
Sub-
scribers 524,500 553,300 579,300 605,200 627,400
Churn 1.7% 1.9% 1.6% 1.7% 1.7%
Average
Service
Revenue
per Sub-
scriber $ 38 $ 36 $ 39 $ 40 $ 37
Average
Service
and
Roaming
Revenue
per Sub-
scriber $ 57 $ 53 $ 60 $ 63 $ 54
Pre-paid
Net Adds (400) -- (1,100) (400) (500)
Subscribers 6,700 6,700 5,600 5,200 4,700
Total
Net Adds 38,900 28,800 24,900 25,500 24,400
Sub-
Scrib-
ers(a) 531,200 560,000 584,900 610,400 632,100
Pene-
tration 11.2% 11.2% 11.7% 12.2% 12.6%
(a) Billing reconciliation included in fourth quarter 2001
subscribers.
Table 6
Dobson Operating Company LLC
For the Quarter Ended
12/31/00 3/31/01 6/30/01 9/30/01 12/31/01
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 39,933 $ 43,525 $ 48,799 $ 51,476 $ 50,591
Roaming
revenue 42,459 41,040 53,645 59,094 47,753
Equipment
& other
revenue 4,558 3,881 4,766 4,033 3,169
---------- ---------- ---------- ---------- ----------
Total 86,950 88,446 107,210 114,603 101,513
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding
deprecia-
tion &
amorti-
zation)
Cost of
service 26,197 26,732 30,226 33,096 30,289
Cost of
equipment 7,416 7,349 8,039 7,424 5,975
Marketing
& selling 13,613 12,173 12,545 12,391 12,045
General &
admini-
strative 11,414 11,967 11,404 12,025 11,704
---------- ---------- ---------- ---------- ----------
Total 58,640 58,221 62,214 64,936 60,013
---------- ---------- ---------- ---------- ----------
EBITDA(a) $ 28,310 $ 30,225 $ 44,996 $ 49,667 $ 41,500
========== ========== ========== ========== ==========
EBITDA
Margin 32.6% 34.2% 42.0% 43.3% 40.9%
Pops 3,996,300 3,996,300 3,996,300 3,996,300 3,996,300
Post-paid
Gross Adds 40,800 34,100 38,400 39,400 38,000
Net Adds 20,600 16,200 18,700 17,400 13,600
Subscribers 331,800 348,000 366,700 384,100 395,900
Churn 2.1% 1.9% 1.7% 2.0% 2.1%
Average
Service
Revenue
per Sub-
scriber $ 41 $ 42 $ 45 $ 45 $ 43
Average
Service
and
Roaming
Revenue
per Sub-
scriber $ 85 $ 82 $ 95 $ 98 $ 84
Pre-paid
Net Adds 2,800 2,200 2,500 300 2,400
Subscribers 8,700 10,900 13,400 13,700 14,000
Total
Net Adds 23,400 18,400 21,200 17,700 16,000
Sub-
Scrib-
ers(b) 340,500 358,900 380,100 397,800 409,900
Pene-
tration 8.5% 9.0% 9.5% 10.0% 10.3%
(a) Includes $1.5 million, $1.6 million, $2.0 million $2.1 million
and $1.9 million of EBITDA for the quarters ended December 31,
2000, March 31, 2001, June 30, 2001, September 30, 2001 and
December 31, 2001 respectively, related to minority interests.
(b) Billing reconciliation included in fourth quarter 2001
subscribers.
Table 7
Dobson/Sygnet Communications Company
For the Quarter Ended
12/31/00 3/31/01 6/30/01 9/30/01 12/31/01
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
revenue $ 30,590 $ 30,956 $ 33,404 $ 35,484 $ 34,769
Roaming
revenue 10,345 9,797 10,996 13,115 12,189
Equipment
& other
revenue 2,058 1,958 1,667 1,639 1,651
---------- ---------- ---------- ---------- ----------
Total 42,993 42,711 46,067 50,238 48,609
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding
deprecia-
tion &
amorti-
zation)
Cost of
service 8,597 9,572 11,134 11,750 11,399
Cost of
equipment 8,538 5,946 4,802 5,255 5,964
Marketing
& selling 7,189 6,314 6,192 6,268 6,870
General &
admini-
strative 6,240 7,065 6,995 6,986 6,332
---------- ---------- ---------- ---------- ----------
Total 30,564 28,897 29,123 30,259 30,565
---------- ---------- ---------- ---------- ----------
EBITDA $ 12,429 $ 13,814 $ 16,944 $ 19,979 $ 18,044
========== ========== ========== ========== ==========
EBITDA
Margin 28.91% 32.34% 36.78% 39.77% 37.12%
Pops 2,357,700 2,357,700 2,357,700 2,357,700 2,357,700
Post-paid
Gross Adds 29,400 22,200 20,000 22,600 31,900
Net Adds 14,200 4,100 4,500 8,600 14,100
Sub-
scribers 258,700 262,800 267,300 275,900 289,700
Churn 2.0% 2.3% 1.9% 1.7% 2.1%
Average
Service
Revenue
per Sub-
scriber $ 41 $ 40 $ 42 $ 44 $ 41
Average
Service
and
Roaming
Revenue
per Sub-
scriber $ 54 $ 52 $ 56 $ 60 $ 55
Pre-paid
Net Adds 300 100 200 300 300
Subscribers 500 600 800 1,100 600
Total
Net Adds 14,500 4,200 4,700 8,900 14,400
Sub-
Scrib-
ers(a) 259,200 263,400 268,100 277,000 290,300
Pene-
tration 11.0% 11.2% 11.4% 11.8% 12.3%
(a) Billing reconciliation included in fourth quarter 2001
subscribers.
Table 8
Dobson Communications Corporation
Proportionately Consolidated Selected Financial Information including
results from discountued operations
(Includes 50% of American Cellular's operations to represent
proportionate ownership and the results from markets sold to Verizon
during 2002, which will be presented as discontinued operations
under GAAP)
For the quarter For the year
ended 12/31/01 ended 12/31/01
($ in thousands except per subscriber data)
(unaudited)
Operating Revenue
Service revenue $ 127,851 $ 494,741
Roaming revenue 92,113 372,540
Equipment & other
revenue 7,884 34,419
----------- -----------
Total 227,848 901,700
----------- -----------
Operating Expenses
(excluding depreciation
& amortization)
Cost of service 61,382 239,639
Cost of equipment 17,401 76,597
Marketing & selling 28,267 112,864
General
& administrative 28,650 116,914
----------- -----------
Total 135,700 546,014
----------- -----------
EBITDA $ 92,148 $ 355,686
=========== ===========
EBITDA Margin 40.44% 39.45%
Pops 9,856,100 9,856,100
Post-paid
Gross Adds 106,700 384,300
Net Adds 43,100 157,700
Subscribers 1,067,200 1,067,200
Churn 2.0% 1.9%
Average Service
Revenue per
Subscriber $ 41 $ 42
Average Service
and Roaming
Revenue per
Subscriber $ 70 $ 73
Pre-paid
Net Adds 2,200 7,900
Subscribers 21,800 21,800
Total
Net Adds 45,400 165,600
Subscribers(a) 1,089,000 1,089,000
Penetration 11.1% 11.1%
(a) Billing reconciliation included in fourth quarter 2001
subscribers.