OKLAHOMA CITY, Nov. 10, 2003 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL):
-- Operating Income Increases 50 Percent Over Same Quarter Last
Year
-- Results Include American Cellular Since August 19 Acquisition
Dobson Communications Corporation (Nasdaq:DCEL) ("Dobson") reported operating income of $66.8 million for the third quarter ended September 30, 2003, an increase of 50 percent over operating income of $44.7 million for the same quarter last year.
The Company reported a net loss of $20.3 million for the third quarter of 2003, compared with net income of $13.9 million for the same period last year.
Dobson reported a net loss applicable to common shareholders of $21.2 million, or $0.19 per share on a fully diluted basis (Table 1). The average of total shares outstanding for the third quarter of 2003 was approximately 110.6 million.
The net loss applicable to common shareholders included a $28.1 million loss from the early repayment of debt, related to the write-off of unamortized capitalized costs that Dobson incurred when the Dobson Operating Co. LLC and Sygnet credit facilities were originally established. Substantially all of these facilities was paid off in the third quarter, with the remaining balance paid off in late October. In addition, the net loss applicable to common shareholders included $878,000 in dividends on the Company's newly issued Series F preferred stock and $17.8 million of cash and in-kind dividends on mandatorily redeemable preferred stock. The $17.8 million in dividends is reflected as financing expense in accordance with the provisions of SFAS 150, the adoption of which was required as of July 1, 2003. Prior to the adoption of SFAS 150, these dividends were reported after net income, as a reduction in net income attributable to common shares.
Dobson's results include the results of operations of American Cellular Corporation from August 19, 2003, when Dobson acquired American Cellular.
The third quarter's results also reflect the operations of Dobson's newly acquired Anchorage Metropolitan Service Area (MSA) and Alaska Rural Service Area (RSA) 2, which Dobson acquired on June 17, 2003. These acquisitions are not reflected in historical results previous to their acquisition dates. To review the complete results of Dobson Cellular and American Cellular separately, please see attached Tables 4 and 5.
For last year's third quarter, Dobson recorded net income applicable to common shareholders of $19.4 million, or $0.21 per share. This included a $2.6 million gain on the early repayment of debt, $3.5 million in income from discontinued operations, net of taxes; $24.8 million in dividends on preferred stock; and a $30.2 million gain representing the excess of liquidation preference amount over repurchase price of preferred stock. This $30.2 million reflected the repurchase of $41.1 million (liquidation preference amount) of Dobson's 12 1/4% and 13% Senior Exchangeable Preferred Stock during that quarter.
The average of total shares outstanding for the third quarter last year was approximately 90.2 million.
"We moved decisively since the beginning of the third quarter to restructure and acquire American Cellular, to strengthen Dobson's balance sheet to increase free cash flow, and to position the Company to compete successfully in the world of GSM/GPRS technology," said Everett R. Dobson, president, chairman and chief executive officer. "We continue to execute to our growth strategy: We are adding profitable subscribers, primarily on two-year contracts; and we are balancing the growth of subscriber and roaming revenue in a manner that we believe will maximize free cash flow on long-term."
Dobson's EBITDA for the third quarter of 2003 was $100.6 million, representing a 54 percent increase over EBITDA of $65.6 million for the third quarter last year. EBITDA margin on total revenue for the third quarter this year increased to 45.0 percent, compared with an EBITDA margin of 43.4 percent for the same period in 2002. (For definition of EBITDA and a reconciliation of EBITDA to net income from continuing operations, please see Footnotes 1 and 2 to Table 1, attached.)
Dobson generated approximately 70,700 gross subscriber additions (postpaid) for the third quarter of 2003, compared with 40,100 for the immediately previous quarter and 55,000 for the third quarter last year. Total net subscriber additions for the quarter were 12,400, reflecting postpaid customer churn of 1.8 percent. For the third quarter last year, Dobson reported 14,700 total net subscriber additions and churn of 2.0 percent.
Total revenue for the third quarter was $223.4 million, compared with $151.1 million for the same quarter last year.
Roaming revenue contributed 27 percent of total revenue for the third quarter, compared with 37 percent for the same period last year. Roaming minutes of use increased 45 percent to 346.5 million minutes, compared to the third quarter last year.
Dobson's new roaming agreements with Cingular Wireless, signed in February 2002, and AT&T Wireless, signed in July 2003, have reduced the roaming rates that Dobson receives and reduced the roaming rates that Dobson pays to its roaming partners.
In large part because of these new agreements, Dobson again reduced its cash cost per user (CCPU) in the third quarter, to approximately $19.25 per subscriber, compared with approximately $23 per subscriber in the third quarter last year.
Monthly profit per subscriber -- which the Company defines as the difference between total ARPU (average revenue per user -- postpaid, prepaid and reseller) and CCPU (cash cost per user) - consequently was approximately $22.25 per subscriber for the third quarter, compared with approximately $20.75 for the same period last year.
Postpaid ARPU for the third quarter of 2003 was approximately $43.50, up from approximately $43 in the immediately previous quarter and below last year's third quarter ARPU of approximately $45.25. Dobson reports ARPU on a postpaid basis only.
Capital Expenditures
Capital expenditures were approximately $30.7 million in the Dobson Cellular markets and $36.5 million in the American Cellular markets in the third quarter, bringing year-to-date capital expenditures to approximately $145.7 million for the two entities combined. Of this total, just over one-third was spent to maintain and upgrade coverage on the Company's TDMA networks, with most of the balance focused primarily on the GSM/GPRS overlay.
On July 18, 2003, the Company announced the acceleration of its GSM/GPRS network overlay, moving significant portions of the overlay that had been scheduled for 2004 into the second half of this year. Dobson currently expects that consolidated fourth quarter capital expenditures will result in full-year 2003 capital expenditures in a range of approximately $225 million to $235 million, compared with the most recent guidance in a range of $220 million to $250 million.
Balance Sheet Information
Table 2 (attached) reflects certain balance sheet information for Dobson Communications' as of September 30, 2003, prior to the Company completing the refinancing of its credit facilities and long-term debt. Consequently the summary shows approximately $229 million in cash and cash equivalents; approximately $2.1 billion in total debt; and approximately $654 million in preferred stock obligations.
As a result of refinancing transactions that have been completed since September 30, 2003, a current balance sheet for Dobson Communications would include the following changes:
-- A new $700 million Dobson Cellular credit facility, of which $550
million is drawn in the form of a Term B loan;
-- The repayment of the remaining $54 million Sygnet Wireless credit
facility;
-- The purchase of approximately $183 million in face value of
Dobson/Sygnet senior notes; and
-- The purchase of approximately $247 million liquidation preference
amount of Dobson's 12 1/4% senior exchangeable preferred stock.
The Company's outstanding balance of cash and cash equivalents has not changed materially since the end of the third quarter of 2003.
Conference Call
Dobson plans to conduct a conference call to discuss its third quarter results today, November 10, beginning at 11 a.m. ET (10 a.m. CT). On the conference call, the Company may discuss current market conditions, its operating outlook and its guidance. The call will also be broadcast on the Internet.
Those interested may access the call by dialing: Conference call (800) 810-0924 Pass code 370098
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 370098 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; 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 Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
----- ----- ----- -----
($ in thousands except per share data)
(unaudited)
Operating
Revenue
Service
revenue $ 152,763 $ 89,700 $ 333,682 $ 255,783
Roaming
revenue 61,474 55,827 161,299 151,069
Equipment &
other
revenue 9,188 5,531 20,779 13,813
----------- ----------- ----------- -----------
Total 223,425 151,058 515,760 420,665
----------- ----------- ----------- -----------
Operating
Expenses
(excluding
depreciation
&
amortization)
Cost of
service 52,206 37,910 120,783 113,451
Cost of
equipment 17,424 11,298 36,403 31,743
Marketing &
selling 22,736 17,683 52,542 51,538
General &
administra-
tive 30,423 18,617 65,779 53,679
----------- ----------- ----------- -----------
Total 122,789 85,508 275,507 250,411
----------- ----------- ----------- -----------
EBITDA (1) 100,636 65,550 240,253 170,254
Depreciation
& amortiza-
tion (33,832) (20,876) (77,415) (60,320)
----------- ----------- ----------- -----------
Operating
income 66,804 44,674 162,838 109,934
Minority
interest (1,846) (1,946) (5,251) (4,869)
Loss from
investment
in joint
venture -- -- -- (184,381)
Interest
expense (38,495) (29,139) (87,227) (86,239)
(Loss) gain
from
extinguish-
ment of
debt (28,102) 2,637 (28,102) 2,637
Dividends
on
mandatorily
redeemable
preferred
stock (17,833) -- (17,833) --
Other
(expense)
income, net (2,356) 562 2,140 3,253
----------- ----------- ----------- -----------
Income (loss)
before
income taxes (21,828) 16,788 26,565 (159,665)
Income tax
(expense)
benefit 1,514 (6,380) (16,870) 50,648
----------- ----------- ----------- -----------
Income (loss)
from
continuing
operations (20,314) 10,408 9,695 (109,017)
Discontinued
operations:
Income from
discontin-
ued
operations,
net of
taxes (2) -- 3,472 7,198 13,621
Loss from
discontin-
ued opera-
tions from
investment
in joint
venture -- -- -- (327)
Gain from
disposal
of
discon-
tinued
operations,
net of
taxes -- -- 27,515 88,315
Gain from
disposal
of
discon-
tinued
operations
from
investment
in joint
venture -- -- -- 6,736
----------- ----------- ----------- -----------
Income (loss)
before
cumulative
effect
of change in
accounting
principle (20,314) 13,880 44,408 (672)
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) (20,314) 13,880 44,408 (174,786)
Dividends
on
preferred
stock (878) (24,753) (41,421) (71,614)
Gain on
redemption
of preferred
stock -- 30,232 218,310 30,232
----------- ----------- ----------- -----------
Net (loss)
Income
applicable
to common
shareholders $ (21,192) $ 19,359 $ 221,297 $ (216,168)
=========== =========== =========== ===========
Basic net
(loss)income
applicable
to common
shareholders
per common
share:
Continuing
operations $ (0.18) $ 0.11 $ 0.10 $ (1.20)
Discontinued
operations -- 0.04 0.36 1.19
Change in
accounting
principle -- -- -- (1.92)
Dividends
on and
redemption
of
preferred
stock (0.01) 0.06 1.82 (0.45)
----------- ----------- ----------- -----------
Total basic
net (loss)
income
applicable
to common
shareholders
per common
share $ (0.19) $ 0.21 $ 2.28 $ (2.38)
=========== =========== =========== ===========
Basic
weighted
average
common
shares
out-
standing 110,588,140 90,151,246 97,059,585 90,861,205
=========== =========== =========== ===========
Total diluted
net (loss)
income
applicable
to common
shareholders
per common
share $ (0.19) $ 0.21 $ 2.21 $ (2.38)
=========== =========== =========== ===========
Diluted
weighted
average
common
shares
out-
standing 110,588,140 90,151,246 100,128,791 90,861,205
=========== =========== =========== ===========
(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.
Three Months Ended Nine Months Ended
September 30, September 30,
(2)Operating results 2003 2002 2003 2002
from income from ---- ---- ---- ----
discontinued
operations:
Service
revenue $ -- $ 8,094 $ 13,894 $ 26,643
Roaming
revenue -- 9,485 17,285 35,702
Equipment
& other
revenue -- 468 784 1,671
------- ------- ------- -------
Total
operating
revenue -- 18,047 31,963 64,016
------- ------- ------- ------
Cost of
service -- 4,148 6,817 13,554
Cost of
equipment -- 826 1,523 3,275
Marketing
& selling -- 1,382 2,186 5,033
General &
administra-
tive -- 1,892 3,382 6,771
------- ------- ------- ------
Total
operating
expenses
(excluding
depreciation
and amortiza-
tion) -- 8,248 13,908 28,633
------- ------- ------- -------
EBITDA -- 9,799 18,055 35,383
------- ------- ------- -------
Depreciation
&
amortization -- (2,144) (4,040) (5,763)
Interest
expense &
other -- (2,055) (2,405) (7,650)
Income tax
expense -- (2,128) (4,412) (8,349)
------- ------- ------- -------
Income from
discontinued
operations $ -- $ 3,472 $ 7,198 $ 13,621
======= ======= ======= =======
Table 2
Dobson Communications Corporation
Selected Balance Sheet and Statistical Data
Balance Sheet Data: September 30, December 31,
2003 2002
------------- -------------
($ in millions) ($ in millions)
(unaudited)
Cash and cash equivalents
(unrestricted) (1) $ 229.4 $ 294.2
========= =========
Total Debt:
Dobson Operating Co., L.L.C.
credit facility $ -- $ 501.0
Sygnet credit facility (2) 54.0 285.4
DCC 10.875% Senior
Notes, net 298.4 298.2
DCC 8.875% Senior
Notes 650.0 --
Dobson/Sygnet
Senior Notes (2) 188.5 188.5
ACC 9.5% Senior Notes, net 12.6 --
ACC 10.0% Senior Notes 900.0 --
--------- ---------
Total debt $ 2,103.5 $ 1,273.1
========= =========
Preferred Stock:
Series AA Preferred Stock,
5.96% $ -- $ 200.0
Senior Exchangeable
Preferred Stock, 12.25%,
net (2)(3) 343.8 362.3
Senior Exchangeable
Preferred Stock, 13.00%,
net (4) 187.6 196.0
Series F Preferred Stock 122.5 --
--------- ---------
Total preferred stock $ 653.9 $ 758.3
========= =========
Nine Months Ended
September 30, September 30,
2003 2002
($ in millions) ($ in millions)
Capital Expenditures: $ 109.8 $ 57.2
========= =========
(1) Includes $49.7 million of cash from American Cellular.
(2) On October 23, 2003, Dobson Cellular Systems obtained a $700.0
million credit facility, under which $550.0 was borrowed to
payoff the remaining portion of the Dobson/Sygnet credit
facility, $183.3 million of the Dobson/Sygnet senior notes and
$247.0 million of Dobson's 12.25% preferred stock.
(3) Net of deferred financing costs of $(3.3) million and $(4.2)
million and discount of $(7.0) million and $(8.4) million at
September 30, 2003 and December 31, 2002, respectively. (4) Net
of deferred financing costs of $(2.1) million and $(2.8) million
at September 30, 2003 and December 31, 2002, respectively.
(4) Net of deferred financing costs of $(2.1) million and
$(2.8) million at September 30, 2003 and December 31, 2002,
respectively.
Table 3
Dobson Communications Corporation
(Includes results of American Cellular since its acquisition on
8/19/03)
For the Quarter
Ended 9/30/2002 12/31/2002 3/31/2003 6/30/2003 9/30/2003
($ in thousands except per subscriber data)
(unaudited)
Operating Revenue
Service
revenue $ 89,700 $ 86,717 $ 87,305 $ 93,614 $152,763
Roaming revenue 55,827 50,141 45,400 54,426 61,474
Equipment &
other revenue 5,531 4,382 5,388 6,202 9,188
-------- -------- -------- -------- --------
Total 151,058 141,240 138,093 154,242 223,425
-------- -------- -------- -------- --------
Operating Expenses
(excluding
depreciation &
amortization)
Cost of service 37,910 35,618 32,775 35,803 52,206
Cost of
equipment 11,298 10,401 9,032 9,947 17,424
Marketing
& selling 17,683 16,022 14,458 15,347 22,736
General &
administrative 18,617 18,734 17,921 17,436 30,423
-------- -------- -------- -------- --------
Total 85,508 80,775 74,186 78,533 122,789
-------- -------- -------- -------- --------
EBITDA (1) (2) $ 65,550 $ 60,465 $ 63,907 $ 75,709 $100,636
======== ======== ======== ======== ========
Pops 5,711,500 5,711,500 5,711,500 6,094,600 11,091,600
Post-paid
Gross Adds 55,000 53,600 38,700 40,100 70,700
Net Adds 15,400 17,900 4,800 9,700 9,900
Subscribers 662,900 680,800 685,600 810,600 1,477,400
Churn 2.0% 1.8% 1.6% 1.5% 1.8%
Average
Service
Revenue
per
Subscriber
(ARPU) $ 45 $ 42 $ 42 $ 43 $ 44
Average
Service
and
Roaming
Revenue
per
Subscriber $ 74 $ 67 $ 64 $ 69 $ 61
Pre-paid
Net Adds (4,200) (1,100) 2,300 900 1,600
Subscribers 7,500 6,400 8,700 22,300 31,900
Reseller
Net Adds 3,500 1,900 3,200 2,400 900
Subscribers 19,500 21,400 24,600 34,700 70,200
Total
Net Adds 14,700 18,700 10,300 13,000 12,400
Subscribers 689,900 708,600 718,900 867,600 1,579,500
Penetration 12.1% 12.4% 12.6% 14.2% 14.2%
(1) Includes, $1.9 million, $1.8 million, $1.9 million, $2.1
million and $2.2 million of EBITDA for the quarters ended
September 30, 2002, December 31, 2002, March 31, 2003, June
30, 2003 and September 30, 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 $ 10,408 $ 4,522 $ 11,454 $ 18,551 $(20,314)
Add back non-EBITDA
items included in
income
from continuing
operations:
Depreciation &
amortization (20,876) (19,730) (21,114) (22,468) (33,832)
Interest expense (29,139) (26,408) (24,659) (24,074) (38,495)
Minority Interest (1,946) (1,652) (1,619) (1,785) (1,846)
Loss from
extinguishment of
debt -- -- -- -- (28,102)
Dividends on
mandatorily
redeemable
preferred stock -- -- -- -- (17,833)
Other income (expense) 3,199 (5,373) 1,959 2,537 (2,356)
Income tax expense (6,380) (2,780) (7,020) (11,368) 1,514
-------- -------- -------- -------- --------
EBITDA $ 65,550 $ 60,465 $ 63,907 $ 75,709 $100,636
======== ======== ======== ======== ========
Table 4
Dobson Cellular Systems
(Formerly DOC and Dobson/Sygnet)
For the Quarter
Ended 9/30/02 12/31/02 3/31/03 6/30/03 9/30/03
($ in thousands except per subscriber data)
(unaudited)
Operating Revenue
Service
revenue $89,700 $86,717 $ 87,305 $93,614 $114,133
Roaming
revenue 55,827 50,141 45,400 54,426 46,935
Equipment
& other
revenue 5,531 4,382 5,388 6,202 7,932
------- ------- ------- ------- -------
Total 151,058 141,240 138,093 154,242 169,000
------- ------- ------- ------- -------
Operating Expenses
(excluding depreciation & amortization)
Cost of
service 37,910 35,618 32,775 35,803 40,783
Cost of
equipment 11,298 10,401 9,032 9,947 12,924
Marketing &
selling 17,683 16,022 14,458 15,347 16,183
General &
admini-
strative 18,617 18,734 17,916 17,431 22,095
------ ------ ------ ------ ------
Total 85,508 80,775 74,181 78,528 91,985
------ ------ ------ ------ ------
EBITDA
(1)(2) $65,550 $60,465 $63,912 $75,714 $77,015
======= ======= ======= ======= =======
Net Adds
Pops 5,711,500 5,711,500 5,711,500 6,094,600 6,094,600
Post-paid
Gross
Adds 55,000 53,600 38,700 40,100 49,600
Net
Adds 15,400 17,900 4,800 9,700 7,600
Sub-
scribers 662,900 680,800 685,600 810,600 812,000
Churn 2.0% 1.8% 1.7% 1.5% 1.7%
Average
Service
Revenue
per
Subscriber
(ARPU) $ 45 $ 42 $ 42 $ 43 $ 46
Average
Service
and
Roaming
Revenue
per
Subscriber $ 74 $67 $64 $ 69 $65
Pre-paid
Net Adds (4,200) (1,100) 2,300 900 1,500
Sub-
scribers 7,500 6,400 8,700 22,300 23,800
Reseller
Net Adds 3,500 1,900 3,200 2,400 1,100
Sub-
scribers 19,500 21,400 24,600 34,700 42,000
Total
Net Adds 14,700 18,700 10,300 13,000 10,200
Sub-
scribers 689,900 708,600 718,900 867,600 877,800
Pene-
tration 12.1% 12.4% 12.6% 14.2% 14.4%
(1) Includes, $1.9 million, $1.8 million, $1.9 million, $2.1 million
and $2.2 million of EBITDA for the quarters ended September 30,
2002, December 31, 2002, March 31, 2003, June 30, 2003 and
September 30, 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 $ 14,448 $ 13,940 $ 16,127 $ 23,387 $ 3,251
Add back non-EBITDA items included
in net income from continuing
operations:
Depreciation
& amor-
tization (20,476) (20,012) (20,995) (22,352) (25,206)
Interest
expense (21,413) (17,996) (16,820) (16,782) (14,469)
Minority
Interest (1,946) (1,652) (1,619) (1,785) (1,847)
Loss from
extin-
guishment
of debt - - - - (28,102)
Other income
(expense) 1,695 1,741 1,533 2,927 (2,148)
Income tax
expense (8,962) (8,606) (9,884) (14,335) (1,992)
------ ----- ----- ------ -----
EBITDA $ 65,550 $ 60,465 $ 63,912 $ 75,714 $ 77,015
======= ======= ======= ======= =======
Table 5
American Cellular Corporation Predecessor ACC
----------- ------
For the 7/1/03- 8/19/03-
Quarter 9/30/ 12/31/ 3/31/ 6/30/ 8/18/ 9/30/
Ended 2002 2002 2003 2003 2003 2003
($ in thousands except per subscriber data)
(unaudited)
Operating
Revenue
Service
reve-
nue $ 79,430 $ 76,267 $ 75,176 $ 78,120 $ 42,492 $ 38,630
Roaming
revenue 40,237 32,725 27,680 34,718 19,989 14,539
Equip-
ment
& other
revenue 4,535 3,943 3,634 4,099 2,819 1,994
------- ------- ------- ------- ------- -------
Total 124,202 112,935 106,490 116,937 65,300 55,163
------- ------- ------- ------- ------- -------
Operating
Expenses
(exclud-
ing
deprecia-
tion &
amorti-
zation)
Cost of
service 28,392 25,372 23,569 24,854 13,802 11,612
Cost of
equip-
ment 9,053 10,003 8,909 9,182 5,527 4,500
Market-
ing &
selling 15,031 14,205 12,391 12,442 6,348 6,553
General &
admin-
istra-
tive 18,396 18,258 17,694 17,253 9,488 8,872
------- ------- ------- ------- ------- -------
Total 70,872 67,838 62,563 63,731 35,165 31,537
------- ------- ------- ------- ------- -------
EBITDA
(1) $ 53,330 $ 45,097 $ 43,927 $ 53,206 $ 30,135 $ 23,626
======= ======= ======= ======= ======= =======
Pops 4,997,000 4,997,000 4,997,00 4,997,000 4,997,000 4,997,000
Post-paid
Gross
Adds 49,900 53,000 38,500 37,900 22,800 21,100
Net
Adds 11,200 14,800 (200) 3,500 2,000 2,300
Sub-
scribers 643,000 657,800 657,600 661,100 663,100 665,400
Churn 2.0% 2.0% 2.0% 1.7% 2.0% 2.1%
Average
Service
Revenue
per
Sub-
scriber
(ARPU) $ 41 $ 39 $ 38 $ 39 $ 40 $ 41
Average
Service
and
Roaming
Revenue
per
Sub-
scriber $ 62 $ 55 $ 52 $ 56 $ 58 $ 57
Pre-paid
Net
Adds (300) 900 1,700 1,000 400 100
Sub-
scribers 4,000 4,900 6,600 7,600 8,000 8,100
Reseller
Net
Adds 4,300 1,600 200 900 (400) (200)
Sub-
scribers 26,100 27,700 27,900 28,800 28,400 28,200
Total
Net
Adds 15,200 17,300 1,700 5,400 2,000 2,200
Sub-
scribers 673,100 690,400 692,100 697,500 699,500 701,700
Pene-
tration 13.5% 13.8% 13.9% 14.0% 14.0% 14.0%
(1) A reconciliation of EBITDA to net income (loss) as determined in
accordance with generally accepted accounting principles is as
follows:
Net
income
(loss)
from
contin-
uing
opera-
tions $ 4,280 $(422,908)$ (2,406) $ 2,103 $ 3,404 $ 656
Add
back
non-
EBITDA
items
included
in net
income
(loss):
Deprecia-
tion &
amort-
ization (16,951) (17,050) (17,004) (17,573) (9,014) (8,861)
Interest
expense (29,926) (32,756) (31,254) (31,211) (15,672) (13,849)
Impair-
ment of
goodwill -- (423,894) -- -- -- --
Other
income
(loss) 680 423 321 (917) 58 142
Income
tax
(expense)
benefit (2,853) 5,272 1,604 (1,402) (2,103) (402)
------- ------- ------- ------- ------- -------
EBITDA $ 53,330 $ 45,097 $ 43,927 $ 53,206 $ 30,135 $ 23,626
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