AirGate PCS, Inc. Announces First Quarter Fiscal 2005 Results; Reaches 400,000 Subscribers and 46% Year over Year Gross Addition Growth.ATLANTA Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. -- 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: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 PCS Affiliate of Sprint, today announced financial and operating results for its first fiscal quarter ended December December: see month. 31, 2004. Financial and operating highlights of the quarter include the following: --Net loss for the quarter was ($15.3) million, or ($1.30) per share, compared with net income of $173.0 million, or $33.32 per share in the first fiscal quarter of 2004. --EBITDA, 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.
--Gross additions were 51,931 compared with 35,601 in the first fiscal quarter of 2004. --Churn decreased to 2.72% from 3.10% in the first fiscal quarter of 2004. --Net additions were 15,775 compared with 438 in the first fiscal quarter of 2004. --Cash, cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investment securities increased to $110.0 million as of December 31, 2004 from $68.5 million at September September: see month. 30, 2004.
First Quarter Financial Overview and Key Operating Metrics
Financial and operating metrics, which include non-GAAP financial
measures, for the quarters ended December 31, 2004 and 2003 include
the following:
For the Quarters Ended December 31,
-------------------------------------
2004 2003 Change % Change
-------- -------- --------- ---------
Selected Financial Data (dollars in thousands)
Revenue $92,212 $81,503 $10,709 13.1%
Operating expenses 96,265 81,454 14,811 18.2%
Loss from continuing operations (15,264) (11,110) (4,154) N/M
Discontinued operations - 184,115 (184,115) (100.0%)
Net income (loss) (15,264) 173,005 (188,269) (108.8%)
Capital expenditures 2,773 1,599 1,174 73.4%
Cash, cash equivalents and
short-term investments, end of
period 109,976 60,043 49,933 83.2%
Key Operating Metrics and Non-GAAP Financial Measures
Total subscribers, end of
period 400,312 359,898 40,414 11.2%
Subscriber gross additions 51,931 35,601 16,330 45.9%
Subscriber net additions 15,775 438 15,337 N/M
Churn 2.72% 3.10% (0.38%) N/M
Wholesale subscribers 23,472 - 23,472 N/M
ARPU $55.36 $57.62 $(2.26) (3.9%)
CPGA $309 $437 $(128) (29.3%)
EBITDA (in thousands) $11,940 $11,816 $124 1.0%
Notable financial effects during the quarter ended December 31, 2003 included: --A reduction to 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. revenues of approximately $0.9 million resulting from a correction in Sprint's billing system with respect to data-related inbound in·bound 1 adj. Bound inward; incoming: inbound commuter traffic. Adj. 1. inbound roaming revenues. --A reduction of cost of service and roaming of $3.8 million related to a year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. settlement of 2003 Sprint service bureau fees and Sprint's decision to discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: their billing system conversion. --An increase of general and administrative expenses related to debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: costs of $2.3 million. --Net income was positively affected by a $184.1 million non-monetary gain from disposition of discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. resulting from the elimination of the investment in iPCS. Recent Events On December 8, 2004, it was announced that the Board of Directors approved a definitive agreement under which AirGate PCS, Inc. will merge with and into a wholly-owned subsidiary of Alamosa Holdings, Inc. Under the terms of the definitive agreement, AirGate shareholders will receive 2.87 Alamosa shares for every share of AirGate common stock they hold. In addition, AirGate shareholders will have the option to elect cash consideration in place of Alamosa stock, up to an aggregate amount of $100 million, with the per share cash consideration based on the average closing price of Alamosa stock in the ten trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. prior to the completion of the transaction multiplied mul·ti·ply 1 v. mul·ti·plied, mul·ti·ply·ing, mul·ti·plies v.tr. 1. To increase the amount, number, or degree of. 2. Mathematics To perform multiplication on. by 2.87. The shareholders of AirGate are scheduled to meet on February February: see month. 15, 2005 to vote on adoption of the merger agreement. Management Comments "AirGate is off to a great start for Fiscal 2005," said Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs M. Dougherty Dougherty may refer to:
"This was the first quarter in which we added a material number of wholesale subscribers," Dougherty continued. "We added approximately 23,000 wholesale subscribers during the quarter in addition to approximately 16,000 net subscribers added through our Sprint-branded business. We are very pleased with these net addition results especially considering that we were able to achieve a CPGA (Ceramic PGA) See PGA. CPGA - Ceramic Pin Grid Array approaching $300 during the quarter." "The first quarter of Fiscal 2005 also marked a defining point for the Company as we announced a definitive agreement under which AirGate will merge with and into a wholly-owned subsidiary of Alamosa Holdings, Inc," Dougherty continued. "We believe that this proposed combination creates the premier Sprint PCS Affiliate serving a combined population of over 23 million residents and approximately 1.3 million subscribers. The increased scale of our combined company offers significant opportunities for additional operational and financial benefits, and will be a platform for future growth and value creation for customers and shareholders alike. Together we will leverage the assets and operating expertise of our companies, as well as the proven Sprint PCS brand, and move forward aggressively to strengthen our leadership position in the competitive wireless marketplace. With the proposed transaction with Alamosa, we have many reasons to be optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the outlook for fiscal 2005. " About AirGate PCS AirGate PCS, Inc. is the PCS Affiliate of Sprint with the right to sell wireless mobility communications network The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. products and services under the Sprint brand in territories within three states located 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. . The territories include over 7.4 million residents in key markets such as Charleston Charleston, cities, United States Charleston. 1 City (1990 pop. 20,398), seat of Coles co., E Ill.; inc. 1835. Charleston is an industrial, rail, and trade center located in an agricultural area; shoes are also made. Eastern Illinois Univ. , Columbia Columbia, cities, United States Columbia (kəlŭm`bēə). 1 City (1990 pop. 75,883), Howard co., central Md., between Washington, D.C., and Baltimore. , and Greenville-Spartanburg, 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. ; Augusta Augusta, city, Italy Augusta (oug  `stä), city (1991 pop. 34,189), E Sicily, Italy, on an island (formerly a peninsula) in the Ionian Sea, connected by bridge with the Sicilian and Savannah, Georgia Savannah is a city located in (and the county seat of) Chatham County, Georgia (USA). The city's population was 128,500 in 2005, according to the most recent U.S. Census estimate. Savannah was the first colonial and state capital of Georgia. ;
and Asheville Asheville (ăsh`vəl, –vĭl), city (1990 pop. 61,607), seat of Buncombe co., W N.C., on the French Broad and Swannanoa rivers and on a plateau in the Blue Ridge Mts.; inc. 1797. , Wilmington Wilmington.1 City (1990 pop. 71,529), seat of New Castle co., NE Del., on the Delaware River and tributary streams, the Christina and the Brandywine; settled 1638, inc. as a city 1832. and the Outer Banks Outer Banks or the Banks, chain of sand barrier islands and peninsulas, c.175 mi (280 km), along the Atlantic coast of SE Va. and E N.C. 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. . Forward Looking Statements This document contains 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. within the meaning 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. Such statements include, but are not limited to, (1) statements about the benefits of the proposed merger between Alamosa Holdings, Inc. ("Alamosa") and AirGate PCS, Inc. ("AirGate"), including future financial and operating results; (2) statements with respect to Alamosa's plans, objectives, expectations and intentions and other statements that are not historical facts; and (3) other statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "projects" and similar expressions. Such statements are based upon the current beliefs and expectations of Alamosa's and AirGate's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: (1) the businesses of Alamosa and AirGate may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; (2) expected combination benefits from the Alamosa/AirGate transaction may not be fully realized or realized within the expected time frame; (3) the failure of AirGate and Alamosa stockholders to approve the merger and/or the failure to obtain approvals from regulators or other groups; (4) disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. from the merger making it more difficult to maintain relationships with clients, employees or suppliers; (5) Alamosa's and AirGate's dependence on their affiliation with Sprint; (6) shifts in populations or network focus; (7) changes or advances in technology; (8) changes in Sprint's national service plans or fee structure with Alamosa or AirGate; (9) change in population; (10) difficulties in network construction; (11) increased competition in Alamosa's and AirGate's markets; and (12) adverse changes in financial position, condition or results of operations. Additional factors that could cause Alamosa's and AirGate's results to differ materially from those described in the forward-looking statements can be found in the 2004 Annual Report on 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. of AirGate and in the 2003 Annual Report on Form 10-K and in the Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. of Alamosa filed with the Securities and Exchange Commission (the "Commission") and available at the Commission's internet site (http://www.sec.gov). The forward-looking statements in this document speak only as of the date of the document, and Alamosa and AirGate assume no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contained in the forward-looking statements. On January 19, 2005, Alamosa filed a definitive proxy statement/prospectus with the Commission regarding the proposed merger with AirGate. Stockholders are urged to read the definitive joint proxy statement/prospectus because it contains important information. Stockholders can obtain a free copy of the joint proxy statement/prospectus, as well as other filings containing information about Alamosa and AirGate, without charge, at the Commission's internet site (http://www.sec.gov). Copies of the joint proxy statement/prospectus and the filings with the Commission that are incorporated by reference in the joint proxy statement/prospectus can also be obtained without charge, by directing a request to Alamosa Holdings, Inc., 5225 S. Loop 289, Lubbock, Texas “Lubbock” redirects here. For other uses, see Lubbock (disambiguation). Lubbock is the 10th-largest city in the state of Texas.[1] Located in the northwestern part of the state—a region known historically as the Llano Estacado 79424, Attention: Jon Drake drake 1. male duck. 2. loliumtemulentum. (806-722-1100); or AirGate PCS, Inc., Harris Tower, 233 Peachtree Street Peachtree Street is the main north-south street of Atlanta, Georgia. The city grew up around this one street, and many of its historical and municipal buildings are or were located along it. , N.E. Suite 1700, Atlanta, Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. 30303, Attention: Bill Loughman (404-525-7272). The respective directors and executive officers of Alamosa and AirGate and other persons may be deemed to be participants in the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of proxies in respect of the proposed merger. Information regarding Alamosa's directors and executive officers is available in the proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. filed with the Commission by Alamosa on April 23, 2004, and information regarding AirGate's directors and executive officers is available in the proxy statement filed with the Commission by AirGate on March 5, 2004. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, are contained in the definitive joint proxy statement/prospectus filed by Alamosa with the Commission on January 19, 2005, and other relevant materials to be filed with the Commission when they become available. Financial Measures and Key Operating Metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. In this press release, the Company uses several key operating metrics and non-GAAP financial measures. In Schedule I, the Company defines each of these metrics and provides a reconciliation of non-GAAP financial measures to the most directly comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). financial measure. These financial measures and operating metrics are a supplement to GAAP financial information and should not be considered as an alternative to, or more meaningful than, net income (loss), cash flow or operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (loss) as determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP. SCHEDULE I Financial Measures and Key Operating Metrics The Company uses certain operating and financial measures that are not calculated in accordance with accounting principles generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, , or GAAP. A non-GAAP financial measure is defined as a numerical numerical expressed in numbers, i.e. Arabic numerals of 0 to 9 inclusive. numerical nomenclature a numerical code is used to indicate the words, or other alphabetical signals, intended. measure of a company's financial performance that (i) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the comparable measure calculated and presented in accordance with GAAP in the statement of income or statement of cash flows; or (ii) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the comparable measure so calculated and presented. Terms such as subscriber net additions, average revenue per user ("ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. "), churn churn: see butter. and cost per gross addition ("CPGA") are important operating metrics used in the wireless telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry. These metrics are important to compare us to other wireless service providers. ARPU and CPGA assist management in budgeting and CPGA also assists management in quantifying the incremental costs Costs which are additional costs to the Service appropriations that would not have been incurred absent support of the contingency operation. See also financial management. to acquire a new subscriber. Except for churn and net subscriber additions, the Company has included a reconciliation of these metrics to the most directly comparable GAAP financial measure. Churn and subscriber net additions are operating statistics with no comparable GAAP financial measure. ARPU and CPGA are supplements to GAAP financial information and should not be considered an alternative to, or more meaningful than, revenues, expenses, loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , or net income (loss) as determined in accordance with GAAP. Earnings before interest, taxes, depreciation and amortization, or "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 ", is a performance metric used by AirGate and by other companies. Management believes that EBITDA is a useful adjunct adjunct (aj´ungkt), n a drug or other substance that serves a supplemental purpose in therapy. adjunct to income (loss) from continuing operations and other measurements under GAAP because it is a meaningful measure of a company's performance, as interest, taxes, depreciation and amortization can vary significantly between companies due in part to differences in accounting policies, tax strategies, levels 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. , capital purchasing practices and interest rates. EBITDA also assists management in evaluating operating performance and is sometimes used to evaluate performance for executive compensation. The Company has included below a presentation of the GAAP financial measure most directly comparable to EBITDA, which is income (loss) from continuing operations, as well as a reconciliation of EBITDA to income (loss) from continuing operations. EBITDA is a supplement to GAAP financial information and should not be considered an alternative to, or more meaningful than, net income (loss), income (loss) from continuing operations, or operating income (loss) as determined in accordance with GAAP. EBITDA has distinct limitations as compared to GAAP information such as net income (loss), income (loss) from continuing operations, or operating income (loss). By excluding interest and income taxes for example, it may not be apparent that both represent a reduction in cash available to the Company. Likewise, depreciation and amortization, while non-cash items, represent generally the decreases in the value of assets that produce revenue for the Company. ARPU, churn, CPGA and EBITDA as used by the Company may not be comparable to a similarly titled measure of another company. The following terms used in this report have the following meanings: --"ARPU" summarizes the average monthly service revenue per user, excluding roaming and wholesale revenue. The Company excludes roaming and wholesale revenue from its ARPU calculation because this revenue is generated from customers of Sprint and other carriers that use our network and not directly from our subscribers. ARPU is computed by dividing average monthly service revenue for the period by the average subscribers for the period. --"Churn" is the average monthly rate of subscriber turnover that both voluntarily and involuntarily in·vol·un·tar·y adj. 1. Acting or done without or against one's will: an involuntary participant in what turned out to be an argument. 2. discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: service during the period, expressed as a percentage of the average subscribers for the period. Churn is computed by dividing the number of subscribers that discontinued service during the period, net of 30-day returns, by the average subscribers for the period. --"CPGA" summarizes the average cost to acquire new subscribers during the period. CPGA is computed by adding the equipment margin for handsets sold to new subscribers (equipment revenues less cost of equipment, which costs have historically exceeded the related revenues) and selling and marketing expenses related to adding new subscribers. Retail customer service expenses and the equipment margin on handsets sold to existing subscribers, including handset The part of the telephone that contains the speaker and the microphone. On a desktop phone, the part you hold in your hand is the handset. On a cellphone, the entire phone is the handset. See multihandset cordless and headset. upgrade transactions, are excluded, as these costs are incurred specifically for existing subscribers. That net amount is then divided by the total new subscribers acquired during the period. --"EBITDA" means earnings before interest, taxes, depreciation and amortization. --"Subscribers" are those customers which are end users of Sprint PCS telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. services and are covered by our digital PCS wireless networks. Subscribers are customers of AirGate PCS. --"Wholesale subscribers" are non-Sprint subscribers who utilize our digital PCS wireless networks through reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. agreements through Sprint PCS. Wholesale subscribers are not subscribers of AirGate PCS and are not included in our subscriber counts described above.
AIRGATE PCS, INC.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands, except per share amounts)
December 31, September 30,
2004 2004
------------ -------------
Assets
Current assets:
Cash and cash equivalents $15,917 $13,453
Short-term investment securities 94,059 55,000
Accounts receivable, net of allowance for
doubtful accounts of $6,220 and $5,517 20,800 20,329
Receivable from Sprint 22,749 23,601
Inventories 4,672 3,052
Prepaid expenses 1,519 983
Other current assets 1,048 23
------------ -------------
Total current assets 160,764 116,441
Property and equipment, net of accumulated
depreciation and amortization of
$192,814 and $177,729 130,809 144,324
Financing costs 4,621 3,071
Direct subscriber activation costs 1,680 1,846
Other assets 965 965
------------ -------------
Total assets $298,839 $266,647
============ =============
Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable $1,275 $2,128
Accrued expense 23,977 18,967
Payable to Sprint 39,954 40,879
Deferred revenue 9,567 9,107
Current maturities of long-term debt - 21,200
------------ -------------
Total current liabilities 74,773 92,281
Deferred subscriber activation fee revenue 2,843 3,172
Other long-term liabilities 3,176 3,090
Long-term debt, excluding current maturities 312,478 248,396
------------ -------------
Total liabilities 393,270 346,939
Commitments and contingencies
Stockholders' deficit:
Preferred stock, $.01 par value; 1,000,000
shares authorized; no shares issued and
outstanding - -
Common stock, $.01 par value; 30,000,000
shares authorized; 11,827,483 and
11,768,058 shares issued and outstanding
at December 31, 2004 and September 30,
2004 118 118
Additional paid-in-capital 1,047,676 1,046,551
Accumulated deficit (1,142,225) (1,126,961)
------------ -------------
Total stockholders' deficit (94,431) (80,292)
------------ -------------
Total liabilities and stockholders'
deficit $298,839 $266,647
============ =============
AIRGATE PCS, INC.
Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except per share amounts)
For the Quarters Ended
December 31,
----------------------
2004 2003
----------- ----------
Revenue:
Service revenue $65,172 $62,173
Roaming and wholesale revenue 22,301 16,483
Equipment revenue 4,739 2,847
----------- ----------
Total revenue 92,212 81,503
Operating Expense:
Cost of service and roaming (exclusive of
depreciation and amortization as shown
separately below) 48,800 42,465
Cost of equipment 10,239 6,586
Selling and marketing expense 15,423 14,125
General and administrative expense 5,020 6,407
Non-cash stock compensation expense 497 106
Depreciation and amortization of property
and equipment 15,993 11,767
Loss (gain) on disposal of property and
equipment 293 (2)
----------- ----------
Total operating expense 96,265 81,454
----------- ----------
Operating (loss) income (4,053) 49
Interest income 530 157
Interest expense (8,750) (11,316)
Loss on early extinguishment of debt (2,991) -
----------- ----------
Loss from continuing operations before
income tax (15,264) (11,110)
Income tax - -
----------- ----------
Loss from continuing operations (15,264) (11,110)
Discontinued Operations:
Gain on disposal of discontinued operations net
of $0 income tax expense - 184,115
----------- ----------
Income from discontinued operations - 184,115
----------- ----------
Net income (loss) $(15,264) $173,005
=========== ==========
Basic and diluted weighted-average number of
shares outstanding 11,771,458 5,192,238
Basic and diluted earnings (loss) per share:
Loss from continuing operations $(1.30) $(2.14)
Income from discontinued operations - 35.46
----------- ----------
Net income (loss) $(1.30) $33.32
=========== ==========
AIRGATE PCS, INC.
Non-GAAP Financial Measures and Key Operating Statistics
(Unaudited)
For the Quarters Ended December 31,
-----------------------------------------------
Increase Increase
2004 2003 (Decrease) (Decrease) %
---------- --------- --------------------------
Total subscribers, end
of period 400,312 359,898 40,414 11.2%
Subscriber gross
additions 51,931 35,601 16,330 45.9%
Subscriber net
additions 15,775 438 15,337 3501.6%
Churn 2.72% 3.10% (0.38%) N/M
Wholesale subscribers,
end of period 23,472 - 23,472 100.0%
ARPU $55.36 $57.62 $(2.26) (3.9%)
CPGA $309 $437 $(128) (29.3%)
EBITDA (in thousands) $11,940 $11,816 $124 1.0%
For the Quarters Ended December 31,
-----------------------------------------------
Increase Increase
2004 2003 (Decrease) $ (Decrease) %
---------- --------- --------------------------
Loss from continuing
operations $(15,264) $(11,110) $(4,154) (37.4%)
Plus: depreciation and
amortization of
property and equipment 15,993 11,767 4,226 35.9%
Less: interest income 530 157 373 237.6%
Plus: loss on early
extinguishment of debt 2,991 - 2,991 100.0%
Plus: interest expense 8,750 11,316 (2,566) (22.7%)
---------- --------- ------------ -------------
EBITDA $11,940 $11,816 $124 1.0%
========== ========= ============ =============
For the Quarters Ended December 31,
-----------------------------------------------
Increase Increase
2004 2003 (Decrease) $ (Decrease) %
---------- --------- --------------------------
Service revenue (in
thousands) $65,172 $62,173 $2,999 4.8%
Average subscribers 392,425 359,679 32,746 9.1%
ARPU $55.36 $57.62 $(2.26) (3.9%)
For the Quarters Ended December 31,
-----------------------------------------------
Increase Increase
2004 2003 (Decrease) $ (Decrease) %
---------- --------- --------------------------
(In thousands, except gross additions data)
Selling and marketing
expense $15,423 $14,125 $1,298 9.2%
Plus: activation costs 166 221 (55) (24.9%)
Plus: cost of equipment 10,239 6,586 3,653 55.5%
Less: cost of existing
subscribers, net (5,038) (2,532) (2,506) 99.0%
Less: equipment revenue (4,739) (2,847) (1,892) (66.5%)
---------- --------- ------------ -------------
Total subscriber
acquisition
costs $16,051 $15,553 $498 3.2%
========== ========= ============ =============
Gross additions 51,931 35,601 16,330 45.9%
CPGA $309 $437 $(128) (29.3%)
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