AirGate PCS, Inc. Announces Outstanding Fourth Quarter and Year-end Fiscal 2000 Results; Added More Than 33,000 Subscribers During the Quarter.Business Editors ATLANTA--(BUSINESS WIRE)--Nov. 16, 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 Network Partner, today announced financial and operating results for the three months and fiscal year ended September September: see month. 30, 2000. In the fourth fiscal quarter, AirGate PCS added over 33,000 new customers, completed its initial network build-out Build-out is an urban planner’s estimate of the amount and location of potential development for an area. Build-out is one step of the land use planning process. Evaluation of potential development impacts begins with a build-out analysis. ahead of schedule and gained over $7.6 million in 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. Net revenues for the fourth quarter ended September 30, 2000, totaled $16.3 million. 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.
For the twelve months ended September 30, 2000, the Company reported net revenues of $24.5 million. EBITDA, excluding non-cash stock option compensation expense, was ($50.8) million for fiscal 2000, compared with ($6.3) million for the same period a year ago. AirGate PCS reported a net loss of ($81.3) million, or ($6.60) per share, in the twelve months ended September 30, 2000 compared with a net loss of ($17.2) million, or ($5.05) per share, in the same period of 1999. The Company had $58.4 million in cash and cash equivalents at the end of the fourth quarter and fiscal year ended September 30, 2000, compared with $258.9 million at September 30, 1999. Working capital at the end of the fourth quarter of fiscal 2000 was $36.6 million. The Company believes that the proceeds of the concurrent equity and debt offerings completed in September 1999, together with the undrawn un·draw tr.v. un·drew , un·drawn , un·draw·ing, un·draws To draw to one side, as a curtain. Adj. 1. undrawn - not represented in a drawing undelineated - not represented accurately or precisely Lucent commitment of $140 million, will fund the Company's existing build-out plan as well as expected capital expenditures and working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. through 2002, at which point the Company expects to achieve break-even operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. . "AirGate PCS set aggressive targets for build-out and start-up Start-up The earliest stage of a new business venture. in its first full year of operation. As a result of our focus on superior execution, we exceeded virtually all of these targets," 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:
"Our fourth quarter results demonstrated continued momentum, with subscribers increasing by over 33,000, or double the prior quarter, and roaming revenues up sequentially by 100% to $7.6 million," Dougherty added. Additional financial and operating highlights for the fourth quarter of fiscal 2000 include the following: -- AirGate added 33,207 net new customers in its third quarter of commercial PCS operations, a 94% sequential growth rate compared with 17,105 net new customers added in the prior quarter. As a result, the Company had a total of 56,689 subscribers as of September 30, 2000. -- Average revenue per subscriber (ARPU), excluding roaming and activation fees, was $56 for the quarter, compared with $54 for the previous quarter. -- Total roaming revenue was $7.6 million for the fourth fiscal quarter, a 100% sequential increase compared with $3.8 million for the third fiscal quarter. -- Commercial Sprint PCS service was launched in the Greenwood and Sumter, South Carolina markets and the Greenville-Washington, North Carolina market. All 21 of the Company's markets were launched by September 30, 2000. -- The Company opened a total of five Sprint PCS stores in the fiscal fourth quarter, bringing the total number of stores to 16. -- Churn, net of 14-day returns, improved to 2.9% compared with 3% in the third fiscal quarter. -- The customer average minutes of use (MOU) were 380 in the fourth fiscal quarter, compared with 363 in the previous quarter. -- The EBITDA loss, excluding non-cash stock option compensation expense, was slightly greater than the consensus estimate, primarily as a result of the additional costs associated with over 4,000 more new subscribers than expected. In addition, the Company incurred business development expenses of $1.4 million during the quarter. The Company also indicated that, based on current preliminary information and internal projections, it is providing guidance for the first fiscal quarter of 2001 ended December December: see month. 31, 2000 as follows: -- Net subscriber additions ("net adds") are expected to be 10-20% higher than the fourth fiscal quarter of 2000. -- Roaming revenue is forecasted to be approximately $5.0 - $7.0 million. -- 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. is expected to be $50 - $54. -- Churn churn: see butter. , net of 14-day returns, is expected to be 2.9% - 3.1%. -- Capital expenditures are expected to be approximately $12.0 million, primarily due to the accelerated expansion of coverage. Four Sprint PCS stores will be opened for a total of 20 stores. -- EBITDA losses, excluding non-cash compensation expense, are expected to be approximately $16.0 - $19.0 million AirGate PCS will hold a conference call to discuss this press release today at 10:00 a.m. Eastern time. A live broadcast of the conference call will be available online at www.airgatepcsa.com, www.streetevents.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 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 December 16, 2000. Revised Business Outlook Publication Procedures In connection with the recent adoption of new SEC rules on corporate disclosure, AirGate PCS is changing its procedures for publishing and updating its business outlook 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. and risk factors statements. Following any publication of a business outlook in its quarterly earnings release, AirGate PCS will continue its current practice of having corporate representatives meet with investors, the media, investment analysts and others. At these meetings, AirGate PCS may reiterate re·it·er·ate tr.v. re·it·er·at·ed, re·it·er·at·ing, re·it·er·ates To say or do again or repeatedly. See Synonyms at repeat. re·it the business outlook published in the earnings release. At the same time, AirGate PCS will keep its earnings release and business outlook publicly available on its web site (www.airgatepcsa.com). Prior to the start of the Quiet Period (described below), the public can continue to rely on the business outlook on the web site as still being AirGate PCS's current expectations on matters covered, unless AirGate PCS publishes a notice stating otherwise. Towards the end of each fiscal quarter, AirGate PCS will have a "Quiet Period" when it no longer publishes or updates a business outlook as its current expectations and AirGate PCS representatives will not comment concerning business outlook or AirGate PCS's financial results or expectations or meet privately with investment analysts, investors, the media or others. The Quiet Period will extend until the day when AirGate PCS's next quarterly earnings release is published. For the fourth quarter, the Quiet Period will be December 15, 2000 through the Company's earnings release date, now expected to be in early February February: see month. 2001. About AirGate PCS, Sprint PCS and Sprint AirGate PCS, Inc. is the exclusive manager and operator of Sprint PCS products and services throughout most of the state of 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. , including 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, 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 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 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 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. cities of 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 Savannah, city, United StatesSavannah, 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 7.1 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 built 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 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. , 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 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. 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 expected events should be considered forward-looking statements that are subject to various risks and uncertainties. Such forward looking statements are made pursuant to the "safe-harbor" 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: the competitiveness of Sprint PCS pricing plans, products and services; consumer purchasing patterns; potential fluctuations in quarterly results; our dependence on our affiliation with Sprint PCS; an adequate supply of subscriber equipment; new product development; risks related to our ability to compete with larger, more established businesses; rapid technological and market change; risks related to future growth and expansion and 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 "risk factors" 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 Form 10-Q Form 10-Q See 10-Q. for the quarter ended June 30, 2000, and in subsequent filings with Securities and Exchange Commission.
AirGate PCS, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(dollars in thousands, except per share amounts)
Three Months Ended
September 30,
---------------------------
2000 1999
------------ -----------
Revenues:
Service revenue $ 6,689 $ --
Roaming revenue 7,621 --
Equipment revenue 1,940 --
------------ ------------
16,250 --
Operating expenses:
Cost of services and roaming (11,421) --
Cost of equipment (3,711) --
Selling and marketing (14,634) --
General and administrative expenses (4,553) (3,495)
Non-cash stock compensation expense (598) (325)
Depreciation and amortization (5,239) (213)
------------ ------------
Operating Loss (23,906) (4,033)
Interest income 1,238 --
Interest expense (6,527) (3,424)
------------ ------------
Net Loss $ (29,195) $ (7,457)
============ ============
Basic and diluted net loss per
share of common stock $ (2.30) $ (2.15)
============ ============
Weighted average outstanding
common shares 12,676,620 3,475,721
============ ============
Weighted average potentially
dilutive common stock equivalents:
Common stock options 788,502 234,599
Stock purchase warrants 142,483 110,639
Convertible promissory notes -- 560,618
------------ ------------
Weighted average outstanding
shares including potentially
dilutive common stock equivalents 13,607,605 4,381,577
============ ============
Twelve Months Ended
September 30,
----------------------------
2000 1999
------------ ------------
Revenues:
Service revenue $ 9,183 $ --
Roaming revenue 12,338 --
Equipment revenue 2,981 --
------------ ------------
24,502 --
Operating expenses:
Cost of services and roaming (27,207) --
Cost of equipment (5,685) --
Selling and marketing (28,357) --
General and administrative expenses (14,078) (6,339)
Non-cash stock compensation expense (1,665) (325)
Depreciation and amortization (12,034) (798)
------------ ------------
Operating Loss (64,524) (7,462)
Interest income 9,321 --
Interest expense (26,120) (9,735)
------------ ------------
Net Loss $ (81,323) $ (17,197)
============ ============
Basic and diluted net loss per
share of common stock $ (6.60) $ (5.05)
============ ============
Weighted average outstanding
common shares 12,329,149 3,406,010
============ ============
Weighted average potentially
dilutive common stock equivalents:
Common stock options 777,594 14,904
Stock purchase warrants 142,492 14,899
Convertible promissory notes -- 77,832
----------- -----------
Weighted average outstanding
shares including potentially
dilutive common stock equivalents 13,249,235 3,513,645
=========== ===========
AirGate PCS, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(dollars in thousands)
September 30, September 30,
2000 1999
------------ --------------
ASSETS
Current assets:
Cash and cash equivalents $ 58,384 $ 258,900
Accounts receivable, net 8,696 --
Inventory, net 2,902 --
Prepaid expenses 2,106 1,596
Due from AirGate Wireless, LLC -- 751
Other current assets 2,227 1,223
------------ --------------
Total current assets 74,315 262,470
------------ --------------
Property and equipment, net 183,581 44,206
Financing costs 9,098 10,399
Other assets 1,954 245
------------ --------------
Total assets $ 268,948 $ 317,320
============ ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 21,009 $ 2,216
Accrued expenses 9,320 20,178
Payable to Sprint PCS 5,292 --
Deferred revenue 1,828 --
Accrued interest 228 1,413
Current maturities of
long-term debt -- 7,700
------------ --------------
Total current liabilities 37,677 31,507
Deferred revenue 671 --
Long-term debt 180,727 157,967
------------ --------------
Total liabilities 219,075 189,474
------------ --------------
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;
150,000,000 shares authorized;
12,816,783 and 11,957,201 shares
issued and outstanding at
September 30, 2000 and
September 30, 1999, respectively 128 120
Additional paid-in capital 161,575 157,880
Accumulated deficit (108,577) (27,254)
Unearned stock option compensation (3,253) (2,900)
------------ -------------
Total stockholders' equity 49,873 127,846
Commitments and contingencies -- --
------------ -------------
Total liabilities and
stockholders' equity $ 268,948 $ 317,320
============ =============
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