AirGate PCS, Inc. Announces Strong Third Quarter Fiscal 2000 Results; Subscriber Base More Than Tripled Sequentially Combined With Outstanding Growth in Roaming Revenue.Business Editors ATLANTA--(BUSINESS WIRE)--Aug. 3, 2000 AirGate PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. , Inc., (Nasdaq/NM: PCSA PCSA Primary Care Service Area PCSA Personal Computing Systems Architecture PCSA Power Crane and Shovel Association PCSA Peel Committee on Sexual Assault (Canada) PCSA Presbyterian Church of Southern Africa ), a Sprint PCS (NYSE NYSE See: New York Stock Exchange : PCS) Network Partner, today announced financial and operating results for the third fiscal quarter and nine months ended June 30, 2000. Net revenues for the third quarter ended June 30, 2000 totaled $6.5 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, 2000, the Company reported net revenues of $8.3 million. EBITDA was ($33.8) million for the first nine months of fiscal 2000, compared with ($2.8) million for the same period a year ago. AirGate PCS reported a net loss of ($52.1) million, or ($4.27) per share, in the nine months ended June 30, 2000 compared with a net loss of ($9.4) million, or ($2.77) per share, in the same period of 1999. "We are very pleased to report an 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, president and chief executive officer of AirGate PCS. "Our strong top line performance reflects our aggressive network build-out and our ability to launch PCS service in most of our markets a full six months ahead of schedule. As a result of our rapid network construction, we are now offering coverage to over 75% of the population in our territory. Even more exciting is the tremendous response we have witnessed in these initial markets as evidenced by the significant growth of new subscribers. As these markets mature, we expect this trend to continue and, as a result, we believe that AirGate is well positioned for continued strong customer growth in our territory. "In addition, the quarter was highlighted by strong growth 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. coverage generated in these markets," Dougherty continued. "We believe we will continue to see an increase in roaming traffic with our newly launched markets and the additional opportunity to benefit from attractive patterns for roaming activity." Operating highlights for the third quarter of fiscal 2000 include the following: -- AirGate added 17,104 net new customers in its second quarter of commercial PCS operations compared to the 6,378 net new customers added in the prior quarter. As a result, the Company had a total of 23,482 subscribers as of June 30, 2000. -- Average revenue per subscriber (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. ), excluding roaming and activation activation /ac·ti·va·tion/ (ak?ti-va´shun) 1. the act or process of rendering active. 2. the transformation of a proenzyme into an active enzyme by the action of a kinase or another enzyme. 3. fees, was $54 for the quarter, compared with $53 for the previous quarter. -- Total roaming revenue was $3.8 million for the third fiscal quarter, compared with $816,000 for the second fiscal quarter. -- Commercial Sprint PCS service was launched in the following markets: Charleston, 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. on April 28, 2000; 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. on May 22, 2000; Jacksonville and Roanoke Rapids, 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. on May 29, 2000; Augusta, 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. and Columbia, Florence and Orangeburg, South Carolina Orangeburg, also known as "The Garden City," is the largest city and county seat of Orangeburg County, South Carolina, United States. The population was 12,765 at the 2000 census. The population has steadily declined since the 1950s. on June 7, 2000; and Greenville and New Bern, North Carolina “New Bern” redirects here. For the fictional city of the TV series Jericho, see New Bern, Kansas. New Bern is a city in Craven County, North Carolina with a population of 23,128 as of the 2000 census. on June 30, 2000. Additionally, the Company launched service in Sumter, South Carolina 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. region of North Carolina on July 19, 2000. -- The Company opened a total of seven Sprint PCS stores in the fiscal third quarter. In addition, a further three stores have been opened in July. -- Churn churn: see butter. , net of 14 day returns, was 3% in the third fiscal quarter. -- The customer average minutes of use (MOU (Minutes Of Usage) A metric used to compute billing and/or statistics for telephone calls or other network use. ) was 363 in the third quarter, compared with 326 in the previous quarter. AirGate PCS will hold a conference call to discuss this press release today at 10:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . A live broadcast of the conference call will be available online at www.airgatepcsa.com, www.streetevents.com, or www.vcall.com and a replay will be available to institutional subscribers on www.streetfusion.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 8, 2000. AirGate PCS, Inc. is the exclusive manager and operator of Sprint PCS products and services throughout most of the state of South Carolina, including Charleston, Columbia and Greenville-Spartanburg, parts of North Carolina, including Asheville, Wilmington and Hickory Hickory, city, United States Hickory, city (1990 pop. 28,301), Burke and Catawba counties, W N.C., at the foot of the Blue Ridge Mts.; inc. 1870. It is a processing and trade center for an abundant agricultural region (grain, soybeans, poultry, hogs, , and the eastern Georgia cities of Augusta and Savannah Savannah, city, United States Savannah, city (1990 pop. 137,560), seat of Chatham co., SE Ga., a port of entry on the Savannah River near its mouth; inc. 1789. . With a territory that includes more than 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 is building its own PCS network to exclusively provide 100% digital, 100% PCS products and services under the Sprint and Sprint PCS brand names in its territory. Sprint PCS operates the largest all-digital, all-PCS nationwide wireless network in the United States 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 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 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: 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 March 31, 2000, and in subsequent filings with Securities and Exchange Commission.
AirGate PCS, Inc. and Subsidiary and Predecessors
Condensed Consolidated Statements of Operations
(Unaudited)
(dollars in thousands, except per share amounts)
Three Months Ended
June 30,
----------------------------
2000 1999
----------- -----------
Revenues:
Service revenue $ 2,034 $ --
Roaming revenue 3,771 --
Equipment revenue 737 --
------------ -----------
$ 6,542 --
Operating expenses:
Cost of services and roaming (7,509) --
Cost of equipment (1,363) --
Selling and marketing (8,734) --
General and administrative expenses (4,647) (1,201)
Noncash stock compensation expense (354) --
Depreciation and amortization (4,235) (171)
------------ ------------
Operating Loss (20,300) (1,372)
Interest income 2,005 --
Interest expense (6,901) (4,813)
------------ ------------
Net Loss $ (25,196) $ (6,185)
============ ============
Basic and diluted net loss per
share of common stock $ (2.03) $ (1.83)
============ ============
Weighted average outstanding
common shares 12,435,644 3,382,518
============ ============
Weighted average outstanding
shares including potentially
dilutive common stock equivalents 13,754,095 3,382,518
============ ============
Nine Months Ended
June 30,
----------------------------
2000 1999
----------- -----------
Revenues:
Service revenue $ 2,494 $ --
Roaming revenue 4,717 --
Equipment revenue 1,041 --
------------ -----------
$ 8,252 $ --
Operating expenses:
Cost of services and roaming (15,913) --
Cost of equipment (1,974) --
Selling and marketing (13,772) --
General and administrative expenses (9,349) (2,844)
Noncash stock compensation expense (1,067) --
Depreciation and amortization (6,795) (585)
------------ ------------
Operating Loss (40,618) (3,429)
Interest income 8,083 --
Interest expense (19,593) (5,934)
------------ ------------
Net Loss $ (52,128) $ (9,363)
============ ============
Basic and diluted net loss per
share of common stock $ (4.27) $ (2.77)
============ ============
Weighted average outstanding
common shares 12,212,480 3,382,518
============ ============
Weighted average outstanding
shares including potentially
dilutive common stock equivalents 13,504,402 3,382,518
============ ============
AirGate PCS, Inc. and Subsidiary and Predecessors
Consolidated Balance Sheets
(Unaudited)
(dollars in thousands)
June 30, September 30,
2000 1999
--------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 92,221 $ 258,900
Trade receivables, net 3,659 --
Due from AirGate Wireless, LLC -- 751
Other current assets 6,593 2,819
--------------- -------------
Total current assets 102,473 262,470
--------------- -------------
Property and equipment, net 160,830 44,206
Financing costs 9,502 10,399
Other assets 290 245
--------------- -------------
Total assets $ 273,095 $ 317,320
=============== =============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 8,230 $ 2,216
Accrued expenses 12,311 20,178
Accrued interest 392 1,413
Current maturities of
long-term debt -- 7,700
--------------- -------------
Total current liabilities 20,933 31,507
Long-term debt 174,861 157,967
--------------- -------------
Total liabilities 195,794 189,474
--------------- -------------
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; 12,473,802 and
11,957,201 shares issued and
outstanding at June 30, 2000
and September 30, 1999,
respectively 125 120
Additional paid-in capital 160,622 157,880
Accumulated deficit (79,382) (27,254)
Unearned stock option
compensation (4,064) (2,900)
--------------- ------------
Total stockholders' equity 77,301 127,846
Commitments and
contingencies -- --
--------------- ------------
Total liabilities and
stockholders' equity $ 273,095 $ 317,320
=============== ============
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