AirGate PCS, Inc. Announces First Quarter Fiscal 2000 Results.Business Editors ATLANTA--(BUSINESS WIRE)--Feb. 8, 2000 AirGate PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. , Inc., (Nasdaq/NM: PCSA PCSA Primary Care Service Area PCSA Personal Computing Systems Architecture PCSA Power Crane and Shovel Association PCSA Peel Committee on Sexual Assault (Canada) PCSA Presbyterian Church of Southern Africa ), a Sprint PCS (NYSE NYSE See: New York Stock Exchange : PCS) Network Partner, today announced results for the first quarter and three months ended December 31, 1999. AirGate PCS reported a net loss of $9.8 million, or $0.82 per share, in the three months ended December 31, 1999 compared with a net loss of $1.6 million, or $0.47 per share, in the same period of 1998. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
The Company's operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased to $6.5 million in the three months ended December 31, 1999 from $1.2 million in the same period of 1998, primarily due to expenses related to the build-out of the PCS network. From inception in June 1995 through the period ending December 31, 1999, the Company's operating activities were focused on developing a PCS business in the southeastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . During this period AirGate PCS did not generate any significant revenues and, as a result, has incurred operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. since inception. The operating results for the three months December 31, 1999 are not indicative of the anticipated results of operations which the Company expects to achieve, following commencement of commercial operations, as a Sprint PCS affiliate. &uot;The first quarter of fiscal 2000 was highlighted by a number of key strategic events,&uot; said Thomas M. Dougherty, president and chief executive officer of AirGate PCS. &uot;As previously announced, the I-85 corridor in South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. between Atlanta, Georgia and Charlotte, North Carolina “Charlotte” redirects here. For other uses, see Charlotte (disambiguation). Charlotte is the largest city in the state of North Carolina and the 20th largest city in the United States. opened for roaming The ability to use a communications device such as a cellphone or PDA and be able to move from one cell or access point to another without losing the connection. coverage prior to Thanksgiving Thanksgiving annual U.S. holiday celebrating harvest and yearly blessings; originated with Pilgrims (1621). [Am. Culture: EB, IX: 922] See : America Thanksgiving national holiday with luxurious dinner as chief ritual. [Am. Pop. , marking our first phase of roaming coverage. In addition, we made final preparations for the launch of the Company's initial phase of commercial operations in Greenville-Spartanburg and Anderson, South Carolina Anderson is a city located in Anderson County, South Carolina. As of the United States 2000 Census, the city had a population of 25,514 and is the center of an urbanized area of 70,530. on January 3, 2000; and in Asheville and Hickory, North Carolina Hickory is a city in Catawba County, North Carolina, United States. Hickory has the 162nd largest urban area in the United States. It is the economic, social, and cultural center of the Catawba River Valley. on January 10, 2000. All of these operating milestones occurred ahead of schedule. AirGate now has the opportunity to offer exceptional Sprint PCS products and services to over 1.5 million residents in the combined regions, in addition to providing roaming coverage along the heavily traveled I-85 corridor. &uot;Our financial results continue to reflect the considerable investment associated with the completion of our network build-out and the initial launch of commercial PCS service. We believe we have proven our ability to execute our business strategy as evidenced by the significant progress we have made in our PCS network build-out plan. As of January 20, 2000, we are well ahead of schedule with 86% of the cell sites in our territory leased and over half of the cell sites under construction or completed. In addition, our first switch is operational, a second switch has been declared network ready by Sprint PCS and the third switch is in the installation stage.&uot; &uot;We are very pleased with our operating results to date and expect to have our PCS network complete and fully operational in the rest of our market region with over 6.8 million potential POPs by the end of 2000. With the continued execution of our strategy, we believe we can quickly gain significant market share in our territory and leverage the brand name of Sprint PCS, the fastest growing wireless operator in the nation,&uot; Dougherty concluded. AirGate PCS will hold a conference call to discuss this press release today at 10:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . A live broadcast of the conference call will be available online at www.airgatepcsa.com, www.streetevents.com, www.streetfusion.com, or www.vcall.com. To listen to the live call, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call through the close of business on March 8, 2000. AirGate PCS, Inc. is the exclusive manager and operator of Sprint PCS products and services throughout most of the state of South Carolina, including Charleston, Columbia and Greenville-Spartanburg, parts of North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , including Asheville, Wilmington and Hickory Hickory, city, United States Hickory, city (1990 pop. 28,301), Burke and Catawba counties, W N.C., at the foot of the Blue Ridge Mts.; inc. 1870. It is a processing and trade center for an abundant agricultural region (grain, soybeans, poultry, hogs, , and the eastern Georgia cities of Augusta and Savannah Savannah, city, United States Savannah, city (1990 pop. 137,560), seat of Chatham co., SE Ga., a port of entry on the Savannah River near its mouth; inc. 1789. . With a territory that includes more than 6.8 million POPs covering 62,000 contiguous Adjacent or touching. Contrast with fragmentation. See contiguous file. square miles A square mil is a unit of area, equal to the area of a square with sides of length one mil. A mil is one thousandth of an international inch. This unit of area is usually used in specifying the area of the cross section of a wire or cable. , AirGate PCS is one of the largest Sprint PCS affiliates based on the size of the population in its territory. As a Sprint PCS affiliate, AirGate PCS is building its own PCS network to exclusively provide 100% digital, 100% PCS products and services under the Sprint and Sprint PCS brand names in its territory. Sprint PCS operates the largest all-digital, all-PCS nationwide wireless network in the United States, already serving the majority of the nation's metropolitan areas including more than 4,000 cities and communities across the country. Sprint PCS has licensed PCS coverage of nearly 270 million people in all 50 states, Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. and the U.S. Virgin Islands. For more information, visit the Sprint PCS web site at http://www.sprintpcs.com. Sprint PCS is a wholly-owned tracking group of Sprint Corporation trading on the NYSE under the symbol &uot;PCS.&uot; Sprint is a global communications company Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D. - at the forefront in integrating long distance, local and wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. services and one of the world's largest carriers of Internet traffic Internet traffic is the flow of data around the Internet. It includes web traffic, which is the amount of that data that is related to the World Wide Web, along with the traffic from other major uses of the Internet, such as electronic mail and peer-to-peer networks. . Sprint built and operates the United States' only nationwide all-digital, fiber optic network and is a leader in advanced data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. services. Sprint has $20 billion in annual revenues and serves more than 20 million business and residential customers. Statements contained in this news release regarding expected financial results and other planned events should be considered forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to various risks and uncertainties. Such forward looking statements are made pursuant to the &uot;safe-harbor&uot; provisions of the private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. A variety of factors could cause actual results to differ materially from those anticipated in AirGate PCS' forward- looking statements, including the following factors: potential fluctuations in quarterly results, our dependence on our affiliation with Sprint PCS; an adequate supply of infrastructure and subscriber equipment; new product development; rapid technological and market change; risks related to future growth and expansion; our significant level of indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. and volatility of stock prices. For a detailed discussion of these and other cautionary statements and factors that could cause actual results to differ from AirGate PCS' forward- looking statements, please refer to AirGate PCS' filings with the Securities and Exchange Commission, especially in the &uot;risk factors&uot; section of AirGate PCS' Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended September 30, 1999 and in subsequent filings with Securities and Exchange Commission.
AirGate PCS, Inc. and Subsidiary and Predecessors
Condensed Consolidated Statements of Operations
(Unaudited)
(dollars in thousands, except per share amounts)
Three Months Ended
December 31,
1999 1998
------------ ------------
Roaming revenues $ 130 $ --
------------ ------------
Operating expenses:
Cost of revenues (2,136) --
Selling and marketing (1,133) --
General and administrative expenses (2,270) (1,045)
Noncash stock compensation expense (404) --
Depreciation and amortization (518) (176)
------------ ------------
Operating Loss (6,331) (1,221)
Interest income 3,470 --
Interest expense (6,967) (377)
------------ ------------
Net Loss $ (9,828) $ (1,598)
============ ============
Basic and diluted net loss per share of
common stock $ (0.82) $ (0.47)
============ ============
Weighted average common
shares outstanding 11,967,009 3,382,518
============ ============
Weighted average common
shares outstanding
including potentially dilutive
equivalents 13,550,256 3,382,518
============ ============
AirGate PCS, Inc. and Subsidiary and Predecessors
Consolidated Balance Sheets
(Unaudited)
(dollars in thousands)
December 31, September 30,
1999 1999
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 208,929 $ 258,900
Due from AirGate Wireless, LLC 766 751
Other current assets 5,117 2,819
------------ ------------
--------- ---------
Total current assets 214,812 262,470
------------ ------------
--------- ---------
Property and equipment, net 77,556 44,206
Financing costs 10,114 10,399
Other assets 256 245
------------ ------------
--------- ---------
Total assets $ 302,738 $ 317,320
============ ============
LIABILITIES AND STOCKHOLDERS= EQUITY
Current liabilities:
Accounts payable $ 5,729 $ 2,216
Accrued expenses 14,711 20,178
Accrued interest 119 1,413
Current maturities of long-term debt -- 7,700
------------ ------------
--------- ---------
Total current liabilities 20,559 31,507
Long-term debt, excluding current
maturities 163,544 157,967
------------ ------------
--------- ---------
Total liabilities 184,103 189,474
------------ ------------
--------- ---------
Stockholders' equity:
Preferred stock, par value, $0.01
per share; 5,000,000 shares
authorized; no shares issued and
outstanding -- --
Common stock, par value, $0.01 per
share; 25,000,000 shares authorized;
11,969,734 and 11,957,201 shares
issued and outstanding at
December 31, 1999 and
September 30, 1999, respectively 120 120
Additional paid-in capital 159,693 157,880
Accumulated deficit (37,082) (27,254)
Unearned stock option compensation (4,096) (2,900)
------------ ------------
--------- ---------
Total stockholders' equity 118,635 127,846
Commitments and contingencies -- --
------------ ------------
--------- ---------
Total liabilities and
stockholders' equity $ 302,738 $ 317,320
============ ============
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion