AirGate PCS, Inc. Announces Solid Third Quarter Fiscal 2001 Results; Company Again Exceeds Expectations With Almost 36,000 Net New Subscribers; EBITDA Losses Continue to Decline.Business Editors/Technology Writers ATLANTA--(BUSINESS WIRE)--July 25, 2001 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 third fiscal quarter and nine months ended June June: see month. 30, 2001. The quarter was highlighted by strong subscriber growth as AirGate added almost 36,000 new subscribers, reaching over 179,000 subscribers by the end of the quarter. Net revenues for the third quarter ended June 30, 2001 totaled $47.6 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 nine months ended June 30, 2001, the Company reported net revenues of $104.8 million. EBITDA, excluding non-cash stock option compensation expense, was ($42.3) million for the first nine months of fiscal 2001, compared with ($32.8) million for the same period a year ago. AirGate PCS reported a net loss of ($86.0) million, or ($6.61) per share, in the nine months ended June 30, 2001 compared with a net loss of ($52.1) million, or ($4.27) per share, in the same period of 2000. "This was another outstanding quarter for AirGate PCS," 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:
The period beginning at the start of the calendar year up to the current date. while our EBITDA losses have continued to decline. "We continue to make significant progress in penetrating penetrating breaching the tissues of the body. our territory as evidenced by the addition of over 156,000 subscribers in the trailing twelve month period, just under a year of being fully launched in all of our markets. This reflects an annual penetration gain of 2.7% based on covered POPs. AirGate has a distinct competitive advantage over other wireless providers with the ability to offer exceptional value to our customers with proven Sprint PCS products and competitive rate plans. Our impressive results affirm that we have the right assets, the right strategy and a management team capable of leveraging these attributes. We look forward to reaching the 200,000 subscriber milestone in the September September: see month. quarter with a strong finish to what has been a truly exceptional fiscal year," concluded Dougherty. Additional financial and operating highlights for the third quarter of fiscal 2001 include the following: -- AirGate added 35,854 net new customers in its sixth quarter of commercial PCS operations. As a result, the Company had a total of 179,403 subscribers as of June 30, 2001. -- Average revenue per subscriber (ARPU), excluding roaming, net of bad debt, was $59 for the quarter, compared with $58 for the previous quarter. -- Total roaming revenue was $17.1 million for the third fiscal quarter of 2001, compared with $11.0 million for the previous quarter. Roaming expense was $11.0 million for the quarter, compared with $7.4 million for the previous quarter. Thus, net roaming margin increased to $6.1 million in the third fiscal quarter compared to $3.6 million in the second fiscal quarter. -- Churn, net of 30-day returns, was 2.8% compared with 2.6% in the prior quarter. -- Capital expenditures were $17.9 million, reflecting additional cell site and switch expansion expenditures. The Company also indicated that, based on current preliminary information and internal projections, it is providing guidance for the fourth fiscal quarter ended September 30, 2001 as follows: -- Net subscriber additions ("net adds") are expected to be 40,000 to 43,000. -- 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. , net of bad debt, is expected to be $57 to $59. -- With a lower reciprocal Bilateral; two-sided; mutual; interchanged. Reciprocal obligations are duties owed by one individual to another and vice versa. A reciprocal contract is one in which the parties enter into mutual agreements. 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. rate in effect for a full three months, roaming revenue is forecasted to be $14 to $17 million. Conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. , roaming expense is expected to be $11 -$13 million, given our strong projected subscriber growth. -- Capital expenditures are expected to be approximately $8 million. -- EBITDA losses, excluding non-cash stock option compensation expense, are expected to be $6 - $8 million. AirGate PCS will hold a conference call to discuss this press release tomorrow, July July: see month. 26, 2001 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 or www.streetevents.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 August 26, 2001. 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 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 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 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. serving 23 million business and residential customers in more than 70 countries. With more than 80,000 employees worldwide and $23 billion in annual revenues, Sprint is widely recognized for developing, engineering and deploying state of the art network technologies, including the United States' first nationwide all-digital, fiber-optic network. Sprint's award-winning Tier 1 Internet backbone (communications, networking) Internet backbone - High-speed networks that carry Internet traffic. These communications networks are provided by companies such as AT&T, GTE, IBM, MCI, Netcom, Sprint, UUNET and consist of high-speed links in the T1, T3, OC1 and OC3 ranges. is being extended to key global markets to provide customers with a broad portfolio of scalable IP products. Sprint's high-capacity, high-speed network gives customers fast, dependable, non-stop access to the vast majority of the world's 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 content. Sprint also operates the largest 100-percent digital, nationwide PCS 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. For more information, visit the Sprint PCS web site at http://www.sprintpcs.com. Statements contained in this news release regarding expected financial results and other expected 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 "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 and impact of Sprint PCS pricing plans, products and services; consumer purchasing patterns; potential fluctuations in quarterly results; our dependence on our affiliation with and services provided by 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 our stock price. 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 "investment considerations" 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, 2000, the Form 10-Q Form 10-Q See 10-Q. for the fiscal quarter ended March 31, 2001, and in subsequent filings with Securities and Exchange Commission.
AirGate PCS, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(dollars in thousands, except share and per share amounts)
Three Months Ended
June 30,
---------------------------
2001 2000
------------ -----------
Revenues:
Service revenue $ 28,057 $ 2,034
Roaming revenue 17,131 3,771
Equipment revenue 2,435 737
------------ ------------
$ 47,623 $ 6,542
Operating expenses:
Cost of services and roaming (30,875) (7,382)
Cost of equipment (4,744) (1,363)
Selling and marketing (16,431) (8,685)
General and administrative expenses (3,868) (4,823)
Non-cash stock compensation expense (299) (354)
Depreciation and amortization (7,701) (4,235)
------------ ------------
Operating loss (16,295) (20,300)
Interest income 337 2,005
Interest expense (7,785) (6,901)
------------ ------------
Net loss $ (23,743) $ (25,196)
============ ============
Basic and diluted net loss per
share of common stock $ (1.80) $ (2.03)
============ ============
Weighted average outstanding
common shares 13,179,506 12,435,644
============ ============
Weighted average potentially
dilutive common stock equivalents:
Common stock options 433,035 907,415
Stock purchase warrants 94,078 411,035
------------ ------------
Weighted average outstanding
shares including potentially
dilutive common stock equivalents 13,706,619 13,754,094
============ ============
Nine Months Ended
June 30,
---------------------------
2001 2000
------------ -----------
Revenues:
Service revenue $ 61,882 $ 2,494
Roaming revenue 35,516 4,717
Equipment revenue 7,400 1,041
------------ ------------
$ 104,798 $ 8,252
Operating expenses:
Cost of services and roaming (71,420) (15,786)
Cost of equipment (14,408) (1,974)
Selling and marketing (49,170) (13,723)
General and administrative expenses (12,149) (9,525)
Non-cash stock compensation expense (1,225) (1,067)
Depreciation and amortization (21,463) (6,795)
------------ ------------
Operating loss (65,037) (40,618)
Interest income 2,350 8,083
Interest expense (23,291) (19,593)
------------ ------------
Net loss $ (85,978) $ (52,128)
============ ============
Basic and diluted net loss per
share of common stock $ (6.61) $ (4.27)
============ ============
Weighted average outstanding
common shares 13,007,119 12,212,480
============ ============
Weighted average potentially
dilutive common stock equivalents:
Common stock options 382,696 884,135
Stock purchase warrants 93,613 407,787
------------ ------------
Weighted average outstanding
shares including potentially
dilutive common stock equivalents 13,483,428 13,504,402
============ ============
AirGate PCS, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(dollars in thousands)
June 30, September 30,
2001 2000
----------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 7,846 $ 58,384
Trade receivables, net 28,458 8,696
Inventories 1,456 2,902
Prepaid expenses 3,137 2,106
Direct customer activation costs 3,380 627
Other current assets 1,364 1,600
----------- ------------
Total current assets 45,641 74,315
----------- ------------
Property and equipment, net 203,157 183,581
Financing costs 8,307 9,098
Other assets 711 1,954
----------- ------------
Total assets $ 257,816 $ 268,948
=========== ============
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 4,995 $ 21,009
Accrued expenses 8,591 9,548
Payable to Sprint PCS 20,091 5,292
Deferred revenue 10,009 1,828
----------- ------------
Total current liabilities 44,686 37,677
Deferred revenue 273 671
Long-term debt 242,122 180,727
----------- ------------
Total liabilities 287,081 219,075
----------- ------------
Stockholders' (deficit) 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; 13,271,488 and
12,816,783 shares issued and
outstanding at June 30, 2001 and
September 30, 2000,
respectively 133 128
Additional paid-in capital 167,103 161,575
Accumulated deficit (194,555) (108,577)
Unearned stock option compensation (1,946) (3,253)
----------- ------------
Total stockholders'
equity (deficit) (29,265) 49,873
Commitments and contingencies
----------- ------------
Total liabilities and
stockholders' equity (deficit) $ 257,816 $ 268,948
=========== ============
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