AirGate PCS, Inc. Announces Fourth Quarter and Fiscal Year-End 2002 Results; Filing of 10-K.Business Editors ATLANTA--(BUSINESS WIRE)--Jan. 15, 2003 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 PCS Affiliate of Sprint, today announced financial and operating results for its fourth quarter and fiscal year ended September September: see month. 30, 2002, and the filing of its 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. . Total revenues for the fourth fiscal quarter ended September 30, 2002 were $137.2 million compared with $62.3 million for fiscal 2001. The 2001 results did not include iPCS, Inc., which was acquired by the Company on November November: see month. 30, 2001. The Company reported a net loss of ($615.0) million, or ($23.83) per share, for the three months ended September 30, 2002, compared with a net loss of ($25.0) million, or ($1.88) per share, in the fourth fiscal quarter of 2001. The loss included a ($556.2) million charge, or ($21.55) per share, associated with the impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of goodwill and tangible and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. related to iPCS, Inc. For the fiscal year ended September 30, 2002, the Company reported revenues of $456.6 million compared with revenues of $172.1 million for fiscal 2001. The Company reported a net loss of ($996.6) million, or ($41.96) per share, for the fiscal year ended September 30, 2002, compared with a net loss of ($111.0) million, or ($8.48) per share, for fiscal 2001. The loss included a total of ($817.4) million, or ($34.42) per share, associated with the impairment of goodwill and tangible and intangible assets related to iPCS, Inc. EDITDA, defined as 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.
During 2002, the Company recorded significant write-downs in the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of goodwill and tangible and intangible assets associated with its wholly-owned unrestricted subsidiary, iPCS. These impairment write-downs were taken 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 the accounting guidance prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). by SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 142 and No. 144. The purpose of the write-downs was to record property and equipment, goodwill and other intangible assets at their fair value. In the second fiscal quarter, the Company recorded a goodwill impairment of $261.2 million. In the fourth fiscal quarter, the impairment of goodwill and tangible and intangible assets related to iPCS was $556.2 million. As indicated in a December December: see month. 30, 2002 press release, a delay in filing AirGate's Annual Report on Form 10-K provided additional time to allow the Company to complete a review of balances owed to the Company by Sprint, as well as the Company's subscriber accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying balances. This review did not impact financial information or disclosures in prior reports on Form 10-Q Form 10-Q See 10-Q. or 10-K. In connection with this review of accounts receivable, the Company has reclassified approximately $10 million of subscriber accounts receivable for the fiscal year ended September 30, 2002 to a receivable from Sprint. The Company believes at least $10 million is payable from Sprint, but Sprint has acknowledged only $5.8 million is owed to AirGate. The Company is in discussions with Sprint regarding the differences and has provided for these discussions in its consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge . Filing of the Form 10-K and the delivery of the Company's audited financial statements and related information to AirGate lenders under its senior secured credit facility and the trustee for its notes cure any potential AirGate default. As previously announced, liquidity is an issue for iPCS in the near term. The Company retained Houlihan Lokey Howard Howard, English noble family. Landowners in Norfolk from the 13th cent., the Howards obtained the duchy of Norfolk through the marriage of Sir Robert Howard to Margaret Mowbray, daughter of Thomas Mowbray, 1st duke of Norfolk. & Zukin Capital to review iPCS' revised long range business plan, the strategic alternatives available to iPCS, and to assist iPCS in developing and implementing a plan to improve its capital structure. iPCS has undertaken efforts to restructure its arrangements with its secured lenders, its public note holders and others. Based upon a review of the historical and expected operating results of iPCS, the Company believes that iPCS will be required to seek protection from its creditors under the federal bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most laws in the near term either as part of a consensual CONSENSUAL, civil law. This word is applied to designate one species of contract known in the civil laws; these contracts derive their name from the consent of the parties which is required in their formation, as they cannot exist without such consent. 2. restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). or in an effort to affect a court administered reorganization. "During this challenging period, we realized we had to reposition the Company for the next phase in the wireless industry," 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:
tr.v. ele·vat·ed, ele·vat·ing, ele·vates 1. To move (something) to a higher place or position from a lower one; lift. 2. To increase the amplitude, intensity, or volume of. 3. our business efficiency and effectiveness by restructuring our organizations, reducing capital and other expenditures, and improving cash flow. We also are focused on strengthening the credit quality of new subscribers and reducing churn churn: see butter. while continuing to build a mutually-beneficial relationship with Sprint. Although 2003 is likely to see significantly slower growth in net new subscribers, we expect that the pace of growth will be complemented by improved liquidity and financial performance. "Further, we anticipate that the launch of PCS VisionSM, Sprint's third-generation technology, in our territories will provide an additional vehicle to support future subscriber and revenue growth," Dougherty added. "Vision-enabled PCS devices take and receive pictures, check personal and corporate e-mail, play games with full-color graphics and polyphonic The ability to play back some number of musical notes simultaneously. For example, 16-voice polyphony means a total of 16 notes, or waveforms, can be played concurrently. sounds, and browse (1) To view the contents of a file or a group of files. Browser programs generally let you view data by scrolling through the documents or databases. In a database program, the browse mode often lets you edit the data. See Web browser. the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the wirelessly with speeds that equal or exceed a home computer's dial-up Refers to using the regular "dial-up" telephone network to send data from a computer to a remote network or to a remote device. The computer's digital data are converted to analog signals in the same frequency range as human voice by a modem. connection. We are pleased to be able to offer a broad portfolio of Vision-enabled devices that incorporate voice and data functionality, expanded memory See EMS, EMM and expanded storage. (storage) expanded memory - Memory used through EMS. In systems based on Intel 80386 or later processor expanded memory is part of the extended memory that is mapped into the expanded memory page frame by the processor. , high-resolution and larger color screens that allow greater mobility, convenience and productivity." Additional financial and operating highlights for the fourth quarter of fiscal 2002 include the following: -- The Company added 22,387 net new customers, net of an adjustment for subscribers not reasonably expected to pay. As a result, the Company had a total of 554,833 subscribers as of September 30, 2002. -- Average revenue per subscriber (ARPU) was $60 for the quarter, an increase from $56 in the third quarter of 2002. -- Total roaming revenue was $35.7 million for the fourth fiscal quarter of 2002, compared with $32.0 million for the third quarter of 2002. Roaming expense was $25.4 million for the quarter, compared with $21.8 million for the previous quarter. During 2002, the reciprocal roaming rate paid by Sprint and its affiliates was $0.10 per minute. Sprint has notified the Company it is decreasing this rate to $0.058 per minute on January 1, 2003. -- Churn was 4.0 percent in the fiscal fourth quarter, compared with 3.2 percent in the prior quarter. -- Capital expenditures in the quarter were $19.7 million, compared with $28.9 million in the previous quarter, bringing total capital expenditures for the year to $97.1 million. AirGate PCS will hold a conference call to discuss this press release tomorrow, Thursday, January 16, 2003, at 9:00 a.m. ET. A live broadcast of the conference call will be available on-line at www.airgatepcsa.com or www.companyboardroom.com. To listen to the live call, please go to the Web site at least 15 minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. , 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 February 14, 2003. About AirGate PCS AirGate PCS, Inc., including its unrestricted subsidiary iPCS, is the PCS Affiliate of Sprint with the exclusive 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 seven states located in the Southeastern and Midwestern 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 14.6 million residents in key markets such as Grand Rapids, Michigan “Grand Rapids” redirects here. For other uses, see Grand Rapids (disambiguation). Grand Rapids is a city in the U.S. state of Michigan. As of the 2000 census, the city population was 197,800. ; Charleston, Columbia, 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 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. ; Champaign-Urbana and Springfield, Illinois Springfield is the capital of the U.S. state of Illinois and the county seat of Sangamon County. As reported in the 2000 U.S. Census, the city was home to 111,454 people. The land on which Springfield is today was first settled in the late 1810s, around the time Illinois became a ; and the Quad Cities
The Quad Cities are a group of cities which flank the Mississippi River in Iowa and Illinois in the midwestern United States. areas of Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. and Iowa. AirGate PCS is among the largest PCS Affiliates of Sprint. About Sprint Sprint operates the nation's largest all-digital, all-PCS wireless network, already serving more than 4,000 cities and communities across the country. Sprint has licensed PCS coverage of more than 280 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. In August 2002, Sprint became the first wireless carrier in the country to launch next generation services nationwide delivering faster speeds and advanced applications on Vision-enabled phones and devices. For more information on products and services, visit www.sprint.com/mr. Sprint PCS is a wholly-owned tracking stock of Sprint Corporation trading on the NYSE NYSE See: New York Stock Exchange under the symbol "PCS." 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. with approximately 75,000 employees worldwide and $26 billion in annual revenues and is widely recognized for developing, engineering and deploying state-of-the-art network technologies Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under 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 This news release 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. that are based on current expectations, estimates, forecasts and projections about AirGate, iPCS, the wireless industry, our beliefs and our management's assumptions. Words such as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates" and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results to differ include: the liquidity and potential restructuring of iPCS, including the potential loss of all value in the iPCS common stock held by AirGate; the unsettled nature of the wireless market; the current economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. ; the potential to continue to experience a high rate of customer turnover; our ability to predict future customer growth, as well as other 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. ; the competitiveness and impact of Sprint PCS pricing plans, products and services; the ability to successfully launch and leverage 3G products and services; customer credit quality; our ability to retain customers; the ability of Sprint PCS to provide back office, customer care and other services; the prices charged by Sprint for its services; consumer purchasing patterns; potential fluctuations in quarterly results; an adequate supply of subscriber equipment; risks related to our ability to compete with larger, more established businesses; rapid technological and market change; risks related to future growth and expansion; rates of penetration in the wireless industry; the potential need for additional sources of liquidity; impacts of spending cuts Noun 1. spending cut - the act of reducing spending cut - the act of reducing the amount or number; "the mayor proposed extensive cuts in the city budget" on network quality, customer retention and customer growth; anticipated future losses; the 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. of each of AirGate and iPCS; adequacy of bad debt and other reserves; and the volatility of AirGate PCS' stock price. For a detailed discussion of these and other cautionary statements and factors that could cause actual results to differ from those contained in this news release, please refer to AirGate PCS' filings with the Securities and Exchange Commission ("SEC"), especially in the "risk factors" section of AirGate PCS' Form 10-K for the fiscal year ended September 30, 2002 and in subsequent filings with the SEC. Except as otherwise required under federal securities laws and the rules and regulations of the SEC, we do not have any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise. Definitions of Terms Used: The following are terms used in the press release. None are measures of financial performance under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting in the United States. These terms as used by the Company may not be comparable to the use of these terms by other companies. EDITDA: EDITDA (earnings before interest, taxes, depreciation and amortization) is a financial measure used in the financial community. EDITDA as used in this release is EBITDA excluding non-cash stock compensation expense, loss on disposal of property and equipment and impairment losses. 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. (average revenue per user): Summarizes the average monthly service revenue per customer, excluding 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. revenue. ARPU is computed by dividing service revenue by the average subscribers for the period, net of an adjustment for those customers not reasonably expected to pay. Churn: Churn is the monthly rate of customer turnover expressed as a percentage of the customer base that 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 month. Churn is computed by dividing the number of customers that discontinued the service during the month by the average subscribers for the period, net of an adjustment for 30 day returns and those customers not reasonably expected to pay. Net Additions: Net additions refer to the increase in total subscribers between periods, net of an adjustment for those customers not reasonably expected to pay. Ending Subscribers: Ending subscribers exclude an estimate of new subscribers added during the period who are not reasonably expected to pay.
AirGate PCS, Inc. and Subsidiaries
Condensed Consolidating Balance Sheets at September 30, 2002
(dollars in thousands, except share and per share amounts)
Consolidated
AirGate PCS, AirGate PCS,
Inc. iPCS, Inc. Eliminations Inc.
----------- ---------- ------------ ------------
ASSETS
Current Assets:
Cash and cash
equivalents $4,887 $27,588 $- $32,475
Accounts receivable,
net 24,245 13,882 - 38,127
Receivable from
Sprint PCS 28,977 15,976 - 44,953
Inventories 4,136 2,597 - 6,733
Prepaid expenses 4,130 3,029 - 7,159
Other current
assets 1,331 109 (1,114) 326
----------- --------- -------- ------------
Total current
assets 67,706 63,181 (1,114) 129,773
Property and
equipment, net 213,777 185,378 - 399,155
Intangible assets, net 1,428 26,899 - 28,327
Investment in
subsidiary (99,212) - 99,212 -
Financing costs - 8,118 - 8,118
Other assets 4,924 3,997 - 8,921
----------- --------- -------- ------------
Total assets $188,623 $287,573 $98,098 $574,294
=========== ========= ======== ============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable and
accrued expenses $20,245 $19,971 $(1,114) $39,102
Payable to Sprint PCS 53,381 34,979 - 88,360
Deferred revenue 7,140 4,635 - 11,775
Current maturities
of long term debt
and capital lease
obligations 44,957 309,979 - 354,936
----------- --------- -------- ------------
Total current
liabilities 125,723 369,564 (1,114) 494,173
Long-term debt and
capital lease
obligations,
excluding current
maturities 354,264 564 - 354,828
Other long term
liabilities 1,583 16,657 - 18,240
----------- --------- -------- ------------
Total
liabilities 481,570 386,785 (1,114) 867,241
Stockholders' equity
(deficit):
Common stock 258 - - 258
Additional paid-in-
capital 731,158 192,850 - 924,008
Unearned stock
compensation (1,029) - - (1,029)
Accumulated
deficit (1,023,334) (292,062) 99,212 (1,216,184)
----------- --------- -------- ------------
Total
stockholders'
equity (deficit)(292,947) (99,212) 99,212 (292,947)
----------- --------- -------- ------------
Total liabilities
and stockholders'
equity (deficit)$188,623 $287,573 $98,098 $574,294
=========== ========= ======== ============
Note 1: AirGate did not apply push down accounting for the acquisition
of iPCS.
Note 2: The $44,957 reflected as AirGate's current maturities of
long-term debt includes $2,024 related to the current
maturities of AirGate's senior credit facility and $42,933
related to the adjustments to fair value of iPCS' debt
obligation under purchase accounting.
AirGate PCS, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(dollars in thousands, except share and per share amounts)
Three Months Ended Twelve Months Ended
September 30, September 30,
----------------------- -----------------------
2002 2001 2002 2001
----------------------- -----------------------
Revenues:
Service revenue $96,943 $39,057 $327,365 $105,976
Roaming revenue 35,704 19,812 111,162 55,329
Equipment revenue 4,505 3,382 18,030 10,782
----------------------- -----------------------
137,152 62,251 456,557 172,087
----------------------- -----------------------
Operating Expenses:
Cost of services
and roaming (exclusive of
depreciation, as shown
separately below) (94,436) (40,274) (311,135) (116,732)
Cost of equipment (13,486) (5,810) (43,592) (20,218)
Selling and
marketing (31,076) (22,448) (116,521) (71,617)
General and
administrative
expenses (7,062) (3,593) (25,339) (15,742)
Non-cash stock
compensation
expense (172) (439) (769) (1,665)
Depreciation (22,333) (9,204) (70,197) (30,621)
Amortization of
intangible assets (9,955) - (39,332) (46)
Impairment of
goodwill (199,708) - (460,920) -
Impairment of
property and
equipment (44,450) - (44,450) -
Impairment of
intangible assets (312,043) - (312,043) -
Loss on disposal of
property and
equipment (1,074) - (1,074) -
----------------------- -----------------------
Total operating
expenses (735,795) (81,768) (1,425,372) (256,641)
----------------------- -----------------------
Operating loss (598,643) (19,517) (968,815) (84,554)
----------------------- -----------------------
Interest expense, net (16,341) (5,495) (56,563) (26,436)
----------------------- -----------------------
Loss before
income tax
benefit (614,984) (25,012) (1,025,378) (110,990)
----------------------- -----------------------
Income tax
benefit - - 28,761 -
----------------------- -----------------------
Net loss $(614,984) $(25,012) $(996,617) $(110,990)
----------------------- -----------------------
Basic and diluted net
loss per share of
common stock $(23.83) $(1.88) $(41.96) $(8.48)
Basic and diluted
weighted-average
outstanding common
shares 25,805,998 13,333,127 23,751,507 13,089,285
AirGate PCS, Inc. and Subsidiaries
Condensed Consolidating Statements of Operations
for the Year Ended September 30, 2002
(dollars in thousands, except share and per share amounts)
Consolidated
AirGate PCS, AirGate PCS,
Inc. iPCS, Inc. Eliminations Inc.
----------- ----------- ------------ ------------
Revenues:
Service revenue $226,504 $100,861 $- $327,365
Roaming revenue 74,013 37,923 (774) 111,162
Equipment revenue 13,027 5,296 (293) 18,030
----------- ---------- --------- -----------
313,544 144,080 (1,067) 456,557
Operating Expenses:
Cost of services and
roaming (exclusive
of depreciation, as
shown separately
below) (203,985) (107,924) 774 (311,135)
Cost of equipment (27,778) (16,107) 293 (43,592)
Selling and marketing (79,010) (37,511) - (116,521)
General and
administrative expenses (17,631) (7,708) - (25,339)
Non-cash stock
compensation expense (769) - - (769)
Depreciation (40,678) (29,519) - (70,197)
Amortization of
intangible assets (35,803) (3,529) - (39,332)
Impairment of
goodwill (452,860) (8,060) - (460,920)
Impairment of property
and equipment - (44,450) - (44,450)
Impairment of
intangible assets (312,043) - - (312,043)
Loss on disposal of
property and equipment (1,074) - - (1,074)
----------- ---------- --------- -----------
Total operating
expenses (1,171,631) (254,808) 1,067 (1,425,372)
----------- ---------- --------- -----------
Operating loss (858,087) (110,728) - (968,815)
Interest expense, net (34,099) (22,464) - (56,563)
Loss in subsidiary (133,192) - 133,192 -
----------- ---------- --------- -----------
Loss before income
tax benefit (1,025,378) (133,192) 133,192 (1,025,378)
Income tax benefit 28,761 - - 28,761
----------- ---------- --------- -----------
Net loss $(996,617) $(133,192) $133,192 $(996,617)
=========== ========== ========= ===========
Calculation of EBITDA:
Operating loss $(858,087) $(110,728) $- $(968,815)
Non-cash stock
compensation
expense 769 - - 769
Depreciation 40,678 29,519 - 70,197
Amortization of
intangible assets 35,803 3,529 - 39,332
Impairment of
goodwill 452,860 8,060 - 460,920
Impairment of
property and
equipment - 44,450 - 44,450
Impairment of
intangible assets 312,043 - - 312,043
Loss on disposal
of property and
equipment 1,074 - - 1,074
----------- ---------- --------- -----------
EBITDA, as defined $(14,860) $(25,170) $- $(40,030)
Note: AirGate did not apply push down accounting for the acquisition
of iPCS.
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