OKLAHOMA CITY, Feb. 17, 2004 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL) ("Dobson") today reported operating income of $48.6 million for the fourth quarter ended December 31, 2003, an increase of 33 percent over operating income of $36.6 million for the same quarter last year.
The Company reported a net loss of $68.4 million for the period, compared with net income of $8.3 million for the fourth quarter of 2002.
Dobson reported a net loss applicable to common shareholders of $70.3 million, or $0.53 per share, for the fourth quarter of 2003 (Table 1). The average of total shares outstanding for the fourth quarter of 2003 was approximately 133.7 million. For the fourth quarter of 2002, Dobson recorded net income applicable to common shareholders of $25.6 million, or $0.28 per share, based on approximately 90.1 million average shares outstanding.
In accordance with GAAP, these totals reflect Dobson's 100 percent ownership in American Cellular from August 19, 2003. Results for prior periods reflect Dobson's 50 percent ownership of American Cellular, showing the subsidiary's results as "Loss from investment in joint venture." Complete results for American Cellular for all relevant periods are reflected in Table 5.
Dobson's 2003 results include the operations of the Anchorage Metropolitan Service Area (MSA) and Alaska Rural Service Area (RSA) 2 from their date of acquisition on June 17, 2003, and not for the fourth quarter of 2002. Dobson acquired them in exchange for its Santa Cruz MSA and California RSA 4 properties.
Dobson's fourth quarter net loss applicable to common shareholders included:
-- A $24.2 million loss from the extinguishment of debt, related
to the redemption in the fourth quarter of Dobson/Sygnet
Communications Corporation notes and the termination of the
Dobson/Sygnet credit facility, which was replaced by a new
credit facility;
-- A $26.8 million loss related to the repurchase of preferred
stock in the quarter;
-- $12.7 million in cash and non-cash dividends on mandatorily
redeemable preferred stock; and
-- A $596,100 loss from discontinued operations, net of taxes,
and a $12.7 million loss on disposal of discontinued operations,
net of taxes, both related to the Company's pending swap of its
Maryland RSA 2 property for the Michigan RSA 5 property owned
by Cingular Wireless. Beginning with the fourth quarter of 2003,
the results of the Maryland RSA 2 property are listed as
discontinued operations for the quarter and prior periods.
Results of operations for Michigan RSA 5 will be included in
Dobson's operating results in the quarter when the swap
transaction is completed, which the Company expects in the
first quarter of 2004. And
-- $1.9 million in dividends on preferred stock, related to Dobson's
newly issued Series F convertible preferred stock.
Discontinued Operations
Footnote 2 of Table 1 reflects the operating results from discontinued operations in greater detail.
Operating results from discontinued operations for the full year 2003 include the results of the two California properties from January 1 until they were disposed June 17, 2003, and results for Maryland RSA 2 for the 12 months. The total of $33.8 million in EBITDA includes approximately $18.0 million in EBITDA from the California properties and approximately $15.8 million from Maryland RSA 2.
Fourth Quarter 2002 Results
Dobson reported net income applicable to common shareholders of $25.6 million for the fourth quarter of 2002, which included $4.9 million in other expense, net of taxes, primarily related to the write-off of the remaining costs related to Dobson's participation in FCC Auction 35; and $5.9 million in income from discontinued operations, relating to the California and Maryland properties mentioned above.
Also included were $22.8 million in dividends on preferred stock and a $40.1 million gain that represented the excess of liquidation preference amount over the repurchase price of preferred stock in the fourth quarter last year.
Revenue and EBITDA
Dobson reported total revenue for the fourth quarter of 2003 of $250.3 million, of which $185.7 million, or 74.2 percent, was service revenue generated by Dobson's subscribers. Roaming revenue in the fourth quarter was $56.1 million, or 22.4 percent of total revenue.
As noted above, Dobson acquired 100 percent ownership in American Cellular in August 2003. For more detail on revenue and expenses at the Dobson Cellular and American Cellular subsidiaries, please see Tables 4 and 5.
Dobson reported $94.2 million in EBITDA for the fourth quarter of 2003, compared with $55.7 million for the fourth quarter of 2002.
EBITDA was lower than expected in the fourth quarter of 2003. The Company attributed this decline to:
-- The decline in roaming revenue in Dobson's total revenue mix,
due to slower growth in roaming MOUs overall, particularly with
AT&T Wireless (NYSE:AWE), which is Dobson's largest roaming
customer.
-- General and administrative expenses in the fourth quarter of
2003 were increased by approximately $4 million, which the
Company related to higher bad debt expense, higher billing
costs during the transition to a new billing system, the
incremental costs of a transition services agreement with AT&T
Wireless for Dobson's new Alaska properties in October and
November, and an increased property tax assessment in Kentucky,
due to changes in the manner in which valuations are determined.
Dobson's two subsidiaries, Dobson Cellular Systems and American Cellular, reported a combined gain of only 3 percent in roaming MOUs for the fourth quarter, to a combined total of approximately 327 million MOUs, compared with a combined total of in the fourth quarter of 2002 of approximately 316 million MOUs.
The subsidiaries' combined roaming yield per MOU for the most recent quarter declined 32 percent to approximately $0.17, compared with $0.25 per minute for the same quarter last year.
Under Dobson's current roaming agreements with Cingular Wireless and AT&T Wireless, the roaming rates that Dobson receives have been reduced in 2002 and 2003, as have been the off-network roaming rates that Dobson pays to its roaming partners. The reduction in Dobson's off-network roaming rates has enabled the Company to significantly reduce cash cost per user over the past two years.
Dobson Communications generated approximately 89,100 gross subscriber additions (postpaid) for the fourth quarter of 2003. Total net subscriber additions for the quarter were 14,400, reflecting postpaid customer churn of 1.9 percent.
As previously announced, Dobson adjusted its subscriber base by a negative 4,900 subscribers at the end of the quarter, increasing its postpaid subscribers in Alaska by approximately 1,700, and reducing the number of prepaid subscribers by approximately 6,600. Dobson's year-end 2003 total of 1,552,100 subscribers also reflected the removal of 36,300 subscribers in MD RSA 2 (discontinued) from the Company's base.
Results for Fiscal 2003
For the year ended December 31, 2003, Dobson reported service revenue of $505.9 million, roaming revenue of $201.2 million, and total revenue of $735.8 million (Table 1). As noted above, prior to August 19, 2003, Dobson was a 50-percent owner of American Cellular.
For the year, the Company reported a net loss of approximately $24.0 million, and net income applicable to common shareholders of $151.0 million, or $1.38 per share on a fully diluted basis. Net income applicable to common shareholders included:
-- A $52.3 million loss from extinguishments of debt;
-- A $218.3 million gain on the repurchases of preferred stock
before July 1, when the Company adopted SFAS 150, and a $26.8
million loss from redemption of preferred stock, related to
stock redeemed after July 1;
-- $43.3 million in dividends on preferred stock, paid on
mandatorily redeemable preferred stock before July 1 and paid
on the Series F preferred stock since inception, and $30.6
million in dividends on mandatorily redeemable preferred stock,
paid after July 1; and
-- $11.9 million in income from discontinued operations and a
$14.8 million gain from disposal of discontinued operations,
both net of taxes.
For 2002, Dobson reported a net loss of $166.5 million and a net loss applicable to common shareholders of $190.6 million, or $2.10 per share.
Capital Expenditures and Balance Sheet
Capital expenditures were approximately $45.4 million in the Dobson Cellular markets and $12.6 million in the American Cellular markets in the fourth quarter, bringing full-year capital expenditures to approximately $199.9 million for the two entities combined. Capital expenditures of $4.7 million in MD RSA 2 in 2003 are not included in these totals.
As of January 31, 2004, the Company had overlaid approximately 786 of its 1,727 total cell sites with GSM/GPRS/EDGE hardware, compared with approximately 625 at year-end 2003. The Company is on schedule and budget to have overlaid all of its cell sites in the Continental United States with the new technology by the end of March 2004; to overlay its Alaska properties in the second quarter of 2004; and to upgrade its data service capabilities with EDGE software in the second quarter of 2004.
The Company ended the year with approximately $208 million in cash and cash equivalents, approximately $2.4 billion in total debt, and approximately $376 million in preferred stock obligations (Table 2).
Investors Conference
Dobson plans to hold its 2004 Investors' Conference at The Waldorf-Astoria in New York City, beginning at 8:30 a.m. ET on Wednesday, February 18, 2004. Investors will also be able to listen by phone or via web-cast on Dobson's web site at www.dobson.net. The PowerPoint presentation for the Investors Conference will also be available on Dobson web site.
At the meeting, the Company expects to reduce significantly its EBITDA guidance for 2004, based on updated, reduced estimates of roaming revenue in 2004 and additional data on revenue and expenses. The Company also intends to review fourth quarter 2003 results and to provide a general overview of expectations for 2005 and beyond.
Those interested may access the call by dialing:
Conference call (800) 289-0436
Pass code 753890
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 753890
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 wireless operations in 16 states. For additional information on the Company and its operations, 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; shortages of key equipment; further declines in roaming MOUs; 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 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,
2003 2002 2003 2002
------------ ----------- ------------ -----------
($ in thousands except per share data)
Operating Revenue (unaudited)
Service
revenue $ 185,708 $ 81,828 $ 505,860 $ 323,116
Roaming revenue 56,132 44,672 201,199 176,150
Equipment & other
revenue 8,475 4,194 28,695 17,504
------------ ----------- ------------ -----------
Total 250,315 130,694 735,754 516,770
------------ ----------- ------------ -----------
Operating Expenses
(excluding
depreciation &
amortization)
Cost of service 59,463 33,291 173,436 138,240
Cost of
equipment 21,752 9,916 56,612 40,331
Marketing &
selling 30,747 14,659 79,547 61,581
General &
administrative 44,192 17,146 106,108 66,473
------------ ----------- ------------ -----------
Total 156,154 75,012 415,703 306,625
------------ ----------- ------------ -----------
EBITDA (1) 94,161 55,682 320,051 210,145
Depreciation &
amortization (45,560) (19,120) (119,424) (75,181)
------------ ----------- ------------ -----------
Operating income 48,601 36,562 200,627 134,964
Minority interest (1,291) (1,652) (6,541) (6,521)
Loss from
investment in
joint venture -- -- -- (184,381)
Interest expense (52,957) (25,609) (138,148) (108,331)
(Loss) gain from
extinguishment
of debt (24,175) (435) (52,277) 2,202
Loss from
redemption of
preferred stock (26,777) -- (26,777) --
Dividends on
mandatorily
redeemable
preferred stock (12,735) -- (30,568) --
Other (expense)
income, net 1,530 (4,938) 3,829 (1,636)
------------ ----------- ------------ -----------
Income (loss)
before income
taxes (67,804) 3,928 (49,855) (163,703)
Income tax
(expense)
benefit 12,751 (1,498) (845) 52,177
------------ ----------- ------------ -----------
Income (loss)
from continuing
operations (55,053) 2,430 (50,700) (111,526)
Discontinued
operations:
Income from
discontinued
operations, net
of taxes(2) (596) 5,893 11,945 24,454
Loss from
discontinued
operations from
investment in
joint venture -- -- -- (327)
Gain from disposal
of discontinued
operations, net
of taxes (12,729) -- 14,786 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 (68,378) 8,323 (23,969) 7,652
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)
------------ ----------- ------------ -----------
Net Income (loss) (68,378) 8,323 (23,969) (166,462)
Dividends on
preferred stock (1,879) (22,838) (43,300) (94,451)
Gain on re-
demption of
preferred stock -- 40,092 218,310 70,323
------------ ----------- ------------ -----------
Net (loss) Income
applicable to
common
shareholders $ (70,257) $ 25,577 $ 151,041 $ (190,590)
============ =========== ============ ===========
Basic net (loss)
income applicable
to common share-
holders per
common share:
Continuing
operations $ (0.41) $ 0.03 $ (0.48) $ (1.23)
Discontinued
operations (0.10) 0.06 0.25 1.31
Change in
accounting
principle -- -- -- (1.92)
Dividends on and
redemption of
preferred stock (0.02) 0.19 1.65 (0.26)
------------ ----------- ------------ -----------
Total basic net
(loss) income
applicable to
common
shareholders
per common
share $ (0.53) $ 0.28 $ 1.42 $ (2.10)
============ =========== ============ ===========
Basic weighted
average common
shares
outstanding 133,686,530 90,109,318 106,291,582 90,671,688
============ =========== ============ ===========
Total diluted net
(loss) income
applicable to
common share-
holders per
common share $ (0.53) $ 0.28 $ 1.38 $ (2.10)
============ =========== ============ ===========
Diluted weighted
average common
shares
outstanding 133,686,530 90,132,042 109,676,631 90,671,688
============ =========== ============ ===========
(1) EBITDA is defined as income (loss) from continuing operations
before interest income, interest expense, income taxes,
depreciation, amortization, impairment of goodwill, other income,
gain(loss) from extinguishment of debt, dividends on mandatorily
redeemable preferred stock and minority interests. 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 abilty to meet its future
financial obligations, and they consider growth in EBITDA to be
an indicator of future porfitability, especially in a
captial-intensive industry such as wireless telecommunications.
You should not construe EBITDA as an alternative to net income
(loss) as determined in accordance with GAAP, as an alternative
to cash flows from operating activities as determined in
accordance with GAAP or as 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.
(2) Operating results
from income Three Months Ended Year Ended
from discontinued December 31, December 31,
operations: 2003 2002 2003 2002
------- ------- ------- --------
Service revenue $ 4,224 $12,930 $31,649 $ 54,070
Roaming revenue 3,059 15,063 36,577 70,357
Equipment & other revenue 127 749 1,469 2,921
------- ------- ------- --------
Total operating revenue 7,410 28,742 69,695 127,348
------- ------- ------- --------
Cost of service 2,029 6,471 15,656 28,527
Cost of equipment 563 1,594 3,628 6,197
Marketing & selling 1,823 2,639 7,752 12,289
General & administrative 1,600 3,494 8,845 14,616
------- ------- ------- --------
Total operating
expenses (excluding
depreciation and
amortization) 6,015 14,198 35,881 61,629
------- ------- ------- --------
EBITDA 1,395 14,544 33,814 65,719
------- ------- ------- --------
Depreciation &
amortization (1,267) (2,789) (8,858) (12,813)
Interest expense & other (1,089) (2,250) (5,690) (13,467)
Income tax expense 365 (3,612) (7,321) (14,985)
------- ------- ------- --------
Income from discontinued
operations $ (596) $ 5,893 $11,945 $ 24,454
======= ======= ======= ========
Table 2
Dobson Communications Corporation
Selected Balance Sheet and Statistical Data
Balance Sheet Data: December 31,
2003 2002
-------- --------
($ in millions) ($ in millions)
(unaudited)
Cash and cash equivalents
(unrestricted)(1) $ 208.2 $ 292.1
======== ========
Total Debt:
DCS credit facility $ 548.6 $ --
Dobson Operating Co., L.L.C
credit facility -- 501.0
Sygnet credit facility -- 285.4
DCC 10.875% Senior Notes, net 298.4 298.2
DCC 8.875% Senior Notes 650.0 --
Dobson/Sygnet Senior Notes 5.3 188.5
ACC 9.5% Senior Notes, net 12.9 --
ACC 10.0% Senior Notes 900.0 --
-------- --------
Total debt $2,415.2 $1,273.1
======== ========
Preferred Stock:
Series AA Preferred Stock, 5.96% $ -- $ 200.0
Senior Exchangeable Preferred
Stock, 12.25%, net(2) 59.2 362.3
Senior Exchangeable Preferred
Stock, 13.00%, net(3) 194.1 196.0
Series F Preferred Stock 122.5 --
-------- --------
Total preferred stock $ 375.8 $ 758.3
======== ========
Year Ended
December 31,
2003 2002
-------- --------
($ in millions) ($ in millions)
Capital Expenditures: $ 163.9 $ 72.9
======== ========
(1) Includes $30.8 million of cash from American Cellular for the
year ended December 31, 2003.
(2) Net of deferred financing costs of $(0.6) million and $(4.2)
million and discount of $(1.2) million and $(8.4) million at
December 31, 2003 and December 31, 2002, respectively.
(3) Net of deferred financing costs of $(1.9) million and $(2.8)
million at December 31, 2003 and December 31, 2002, respectively.
Table 3
Dobson Communications Corporation
(Includes results of American Cellular
since its acquisition on 8/19/03)
For the Quarter Ended
12/31/2002 3/31/2003 6/30/2003 9/30/2003 12/31/2003
Operating
Revenue
Service
revenue $ 81,828 $ 82,786 $ 89,022 $ 148,344 $ 185,708
Roaming
revenue 44,672 40,919 48,427 55,721 56,132
Equipment &
other
revenue 4,194 5,187 6,028 9,005 8,475
---------- ---------- ---------- ----------- -----------
Total 130,694 128,892 143,477 213,070 250,315
---------- ---------- ---------- ----------- -----------
Operating
Expenses
(excluding
depreciation
& amortization)
Cost of
service 33,291 30,547 33,468 49,958 59,463
Cost of
equipment 9,916 8,496 9,440 16,924 21,752
Marketing &
selling 14,659 13,142 14,051 21,607 30,747
General &
administra-
tive 17,146 16,607 15,985 29,324 44,192
---------- ---------- ---------- ----------- -----------
Total 75,012 68,792 72,944 117,813 156,154
---------- ---------- ---------- ----------- -----------
EBITDA(1)(2)$ 55,682 $ 60,100 $ 70,533 $ 95,257 $ 94,161
========== ========== ========== =========== ===========
Pops 5,240,800 5,240,800 5,623,900 10,620,900 10,620,900
Post-paid
Gross Adds 50,800 36,500 38,100 68,800 89,100
Net Adds 19,100 6,700 11,300 12,000 8,200
Subscribers 639,600 646,300 772,900 1,441,800 1,451,700
Churn 1.7% 1.5% 1.4% 1.7% 1.9%
Average
Service
Revenue per
Subscriber
(ARPU) $ 43 $ 42 $ 43 $ 44 $ 42
Average
Service
and Roaming
Revenue per
Sub-
scriber $ 66 $ 63 $ 67 $ 60 $ 55
Pre-paid
Net Adds (1,300) 1,900 800 1,700 4,700
Subscribers 5,500 7,400 20,900 30,600 28,700
Reseller
Net Adds 1,900 3,200 2,400 900 1,500
Subscribers 21,400 24,600 34,700 70,200 71,700
Total
Net Adds 19,700 11,800 14,500 14,600 14,400
Subscribers 666,500 678,300 828,500 1,542,600 1,552,100
Penetration 12.7% 12.9% 14.7% 14.5% 14.6%
(1) Includes, $1.8 million, $1.9 million, $2.1 million, $2.2 million
and $1.7 million of EBITDA for the quarters ended December 31,
2002, March 31, 2003, June 30, 2003, September 30, 2003 and
December 31, 2003, respectively, related to minority interests.
(2) A reconciliation of EBITDA to net income from continuing
operations as determined in accordance with generally accepted
accounting principles is as follows:
Income (loss)
from
continuing
operations $ 2,430 $ 10,310 $ 16,515 $ (22,472)$ (55,053)
Add back non-
EBITDA items
included in
income from
continuing
operations:
Depreciation
& amorti-
zation (19,120) (19,940) (21,323) (32,601) (45,560)
Interest
expense (25,609) (23,872) (23,450) (37,869) (52,957)
Minority
Interest (1,652) (1,619) (1,785) (1,846) (1,291)
Loss from
extinguish-
ment of
debt (435) -- -- (28,102) (24,175)
Loss from
redemption
of pre-
ferred
stock -- -- -- -- (26,777)
Dividends
on mand-
atorily
redeemable
preferred
stock -- -- -- (17,833) (12,735)
Other income
(expense) (4,938) 1,959 2,653 (2,313) 1,530
Income tax
expense (1,498) (6,318) (10,113) 2,835 12,751
---------- ---------- ---------- ----------- -----------
EBITDA $ 55,682 $ 60,100 $ 70,533 $ 95,257 $ 94,161
========== ========== ========== =========== ===========
Table 4
Dobson Cellular Systems
(Formerly DOC and Sygnet)
For the Quarter Ended
12/31/2002 3/31/2003 6/30/2003 9/30/2003 12/31/2003
---------- ---------- ---------- ---------- ----------
Operating
Revenue
Service
revenue $ 81,828 $ 82,786 $ 89,022 $ 109,714 $ 107,335
Roaming
revenue 44,672 40,919 48,427 41,182 30,722
Equipment &
other
revenue 4,194 5,187 6,028 7,749 6,357
---------- ---------- ---------- ---------- ----------
Total 130,694 128,892 143,477 158,645 144,414
---------- ---------- ---------- ---------- ----------
Operating
Expenses
(excluding de-
preciation &
amortization)
Cost of
service 33,291 30,547 33,468 38,536 36,013
Cost of
equipment 9,916 8,496 9,440 12,424 11,148
Marketing &
selling 14,659 13,142 14,051 15,053 16,283
General &
administra-
tive 17,146 16,602 15,980 20,997 23,010
---------- ---------- ---------- ---------- ----------
Total 75,012 68,787 72,939 87,010 86,454
---------- ---------- ---------- ---------- ----------
EBITDA(1)(2) $ 55,682 $ 60,105 $ 70,538 $ 71,635 $ 57,960
========== ========== ========== ========== ==========
Net Adds
Pops 5,240,800 5,240,800 5,623,900 5,623,900 5,623,900
Post-paid
Gross Adds 50,800 36,500 38,100 47,700 45,700
Net Adds 19,100 6,700 11,300 9,700 2,700
Subscribers 639,600 646,300 772,900 776,400 780,800
Churn 1.7% 1.5% 1.4% 1.6% 1.8%
Average
Service
Revenue per
Subscriber
(ARPU) $ 43 $ 42 $ 43 $ 46 $ 45
Average
Service and
Roaming
Revenue per
Subscriber $ 66 $ 63 $ 67 $ 64 $ 58
Pre-paid
Net Adds (1,300) 1,900 800 1,600 2,300
Subscribers 5,500 7,400 20,900 22,500 18,200
Reseller
Net Adds 1,900 3,200 2,400 1,100 1,900
Subscribers 21,400 24,600 34,700 42,000 43,900
Total
Net Adds 19,700 11,800 14,500 12,400 6,900
Subscribers 666,500 678,300 828,500 840,900 842,900
Penetration 12.7% 12.9% 14.7% 15.0% 15.0%
(1) Includes, $1.8 million, $1.9 million, $2.1 million, $2.2 million
and $1.7 million of EBITDA for the quarters ended December 31,
2002, March 31, 2003, June 30, 2003, September 30, 2003 and
December 31, 2003, respectively, related to minority interests.
(2) A reconciliation of EBITDA to net income from continuing
operations as determined in accordance with generally accepted
accounting principles is as follows:
Income from
continuing
operations $ 11,883 $ 14,983 $ 21,346 $ 1,094 $ 3,771
Add back non-
EBITDA items
included in
net income
from
continuing
operations:
Depreciation
&
amortization (19,402) (19,821) (21,206) (23,975) (25,774)
Interest
expense (17,141) (16,033) (16,159) (13,842) (7,701)
Minority
Interest (1,652) (1,619) (1,785) (1,847) (1,291)
Loss from
extinguish-
ment of debt (435) -- -- (28,102) (24,175)
Other income
(expense) 2,176 1,533 3,043 (2,105) 3,838
Income tax
expense (7,345) (9,182) (13,085) (670) 914
---------- ---------- ---------- ---------- ----------
EBITDA $ 55,682 $ 60,105 $ 70,538 $ 71,635 $ 57,960
========== ========== ========== ========== ==========
Table 5
American Cellular Corporation
Predecessor
------------------------------------------------
For the Quarter Ended
7/1/03 -
12/31/2002 3/31/2003 6/30/2003 8/18/2003
---------- ---------- ---------- ----------
Operating Revenue
Service revenue $ 76,267 $ 75,176 $ 78,120 $ 42,492
Roaming revenue 32,725 27,680 34,718 19,989
Equipment & other
revenue 3,943 3,634 4,099 2,819
---------- ---------- ---------- ----------
Total 112,935 106,490 116,937 65,300
---------- ---------- ---------- ----------
Operating Expenses
(excluding deprecia-
tion & amortiza-
tion)
Cost of service 25,372 23,569 24,854 13,802
Cost of equipment 10,003 8,909 9,182 5,527
Marketing &
selling 14,205 12,391 12,442 6,348
General &
administrative 18,258 17,694 17,253 9,488
---------- ---------- ---------- ----------
Total 67,838 62,563 63,731 35,165
---------- ---------- ---------- ----------
EBITDA(1) $ 45,097 $ 43,927 $ 53,206 $ 30,135
========== ========== ========== ==========
Pops 4,997,000 4,997,000 4,997,000 4,997,000
Post-paid
Gross Adds 53,000 38,500 37,900 22,800
Net Adds 14,800 (200) 3,500 2,000
Subscribers 657,800 657,600 661,100 663,100
Churn 2.0% 2.0% 1.7% 2.0%
Average Service
Revenue per
Subscriber (ARPU) $ 39 $ 38 $ 39 $ 40
Average Service and
Roaming Revenue
per Subscriber $ 55 $ 52 $ 56 $ 58
Pre-paid
Net Adds 900 1,700 1,000 400
Subscribers 4,900 6,600 7,600 8,000
Reseller
Net Adds 1,600 200 900 (400)
Subscribers 27,700 27,900 28,800 28,400
Total
Net Adds 17,300 1,700 5,400 2,000
Subscribers 690,400 692,100 697,500 699,500
Penetration 13.8% 13.9% 14.0% 14.0%
ACC ACC
---------------------------
8/19/03 -
9/30/2003 12/31/2003
----------- -----------
Operating Revenue
Service revenue $ 38,630 $ 78,372
Roaming revenue 14,539 25,410
Equipment & other revenue 1,994 3,679
----------- -----------
Total 55,163 107,461
----------- -----------
Operating Expenses
(excluding depreciation & amortization)
Cost of service 11,612 23,849
Cost of equipment 4,500 10,604
Marketing & selling 6,553 14,464
General & administrative 8,872 22,338
----------- -----------
Total 31,537 71,255
----------- -----------
EBITDA(1) $ 23,626 $ 36,206
=========== ===========
Pops 4,997,000 4,997,000
Post-paid
Gross Adds 21,100 43,400
Net Adds 2,300 5,500
Subscribers 665,400 670,900
Churn 2.1% 1.9%
Average Service Revenue per
Subscriber (ARPU) $ 41 $ 39
Average Service and Roaming
Revenue per Subscriber $ 57 $ 51
Pre-paid
Net Adds 100 2,400
Subscribers 8,100 10,500
Reseller
Net Adds (200) (400)
Subscribers 28,200 27,800
Total
Net Adds 2,200 7,500
Subscribers 701,700 709,200
Penetration 14.0% 14.2%
(1) A reconciliation of EBITDA to net income (loss) as determined in
accordance with generally accepted accounting principles is as
follows:
Predecessor
------------------------------------------------
For the Quarter Ended
7/1/03 -
12/31/2002 3/31/2003 6/30/2003 8/18/2003
---------- ---------- ---------- ----------
Net income (loss)
from continuing
operations $ (422,908) $ (2,406) $ 2,103 $ 2,642
Add back non-EBITDA
items included in
net income (loss):
Depreciation &
amortization (17,050) (17,004) (17,573) (9,014)
Interest expense (32,756) (31,254) (31,211) (15,672)
Dividends on
mandatorily
redeemable
preferred
stock -- -- -- (703)
Impairment of
goodwill (423,894) -- -- --
Other income (loss) 423 321 (917) 58
Income tax (expense)
benefit 5,272 1,604 (1,402) (2,162)
---------- ---------- ---------- ----------
EBITDA $ 45,097 $ 43,927 $ 53,206 $ 30,135
========== ========== ========== ==========
ACC ACC
---------------------------
8/19/03 -
9/30/2003 12/31/2003
----------- -----------
Net income (loss) from
continuing operations $ 656 $ (5,005)
Add back non-EBITDA
items included in
net income (loss):
Depreciation & amortization (8,861) (19,786)
Interest expense (13,849) (23,924)
Dividends on
mandatorily
redeemable
preferred
stock -- --
Impairment of goodwill -- --
Other income (loss) 142 (568)
Income tax (expense) benefit (402) 3,067
----------- -----------
EBITDA $ 23,626 $ 36,206
=========== ===========