Alamosa Achieves New Financial Milestone; Announces Third Quarter 2004 Financial & Operational Results, Including Positive Net Income.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 -- The first table, Summary of Quarterly Operating Statistics, line item Avg. Voice MOUs Per User (incl. 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. ), under 2Q 2004 should read 839 (sted 182) and under % Change Qtr over Qtr should read 1.9% (sted 369.8%). Also, the table Computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of Adjusted 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 and Reconciliation of Non-GAAP Liquidity Measures, line item Depreciation and amortization, under For the three months ended June June: see month. 30, 2004, should read 25,523 (sted 22,523). The corrected release reads: ALAMOSA ACHIEVES NEW FINANCIAL MILESTONE “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. ; ANNOUNCES THIRD QUARTER 2004 FINANCIAL & OPERATIONAL RESULTS, INCLUDING POSITIVE NET INCOME Alamosa Holdings, Inc. (Nasdaq/NM: APCS APCS Advanced Placement Computer Science APCS Air Pollution Control System APCS Argonne Premium Coal Sample APCS Automated Project Control System (NASA) APCS Assembly for the Promotion of Civil Society (Cuba) ): Third Quarter Highlights: --Net income totaled $2.2 million, before preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends and conversion premiums or a loss of $274 thousand and a net loss per share of $0.00, after preferred stock dividends and conversion premiums --Adjusted EBITDA totaled $45.9 million --As previously announced, subscribers increased by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 53,000 with churn churn: see butter. at 2.4 percent Alamosa Holdings, Inc. today reported financial and operational results for the third quarter ended September September: see month. 30, 2004, including previously announced results for net subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. additions, total subscribers and monthly customer churn. Alamosa achieved positive net income during the third quarter of $2.2 million. For purposes of calculating earnings per share, the company reported a loss of $274 thousand or $0.00 per share, after preferred stock dividends and conversion premiums, compared to a net loss of $17.5 million or $0.19 per share for the third quarter of 2003. Total revenue grew during the third quarter to $211.4 million, representing a 9 percent sequential One after the other in some consecutive order such as by name or number. increase and a 27 percent increase over the same period one year ago. Revenue growth was aided by a stable customer 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. (without roaming) of $57 and continued growth in roaming and wholesale revenues, which increased 14 percent sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen and 44 percent from third quarter of 2003 to $59.1 million. Adjusted EBITDA of approximately $45.9 million for the third quarter represented a 44 percent increase over the third quarter of 2003 Adjusted EBITDA of approximately $31.9 million. Adjusted EBITDA growth year over year not only continues to reflect increased revenue from both core customers and roaming from other carriers, but also efficiencies in cost of operations, lower bad debt expense, and stable customer acquisition costs. The Company also pre-released customer results for the third quarter on October October: see month. 7, 2004. Net subscriber additions were approximately 53,000 and total subscribers at September 30, 2004 were approximately 866,000. The Company also reported an average monthly churn of 2.4 percent, up from 2.1 percent in the second quarter of 2004 due to seasonal and wireless local number portability "LNP" redirects here. For the airport in Virginia with that IATA code, see Lonesome Pine Airport. For the compound InP, see Indium phosphide. Local number portability, (LNP) for fixed lines, and full mobile number portability ("WLNP (Wireless Local Number Portability) The capability of keeping the same cellphone number when switching carriers. See NP and LNP. ") factors, but down from 2.9 percent for the third quarter of 2003. WLNP, which became effective in all of the Company's markets on May 24, 2004, had little impact on net subscriber additions during the quarter. To date, the Company remains a net positive recipient One who receives. The person to whom an e-mail message is sent is the recipient. (communications) recipient - One who receives; receiver. E.g. "No recipient of the e-mail message will know about the other addressees who were listed in the BCC header." in the number of customers porting their numbers due to WLNP. "Our operating and financial results for the third quarter of 2004 once again demonstrate we are doing the right things to build value for Alamosa," stated David E. Sharbutt, Chairman & Chief Executive Officer of Alamosa Holdings, Inc. "Our customer growth was especially satisfying given the competitiveness of the wireless industry and our first full quarter of WLNP. The fact that for the first time in Alamosa's history we achieved positive net income, before preferred stock dividends, is even more encouraging and shows that our business is on the right course for the future." Mr. Sharbutt concluded, "We are working very hard during the fourth quarter to once again achieve record results for Alamosa and its stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. ."
SUMMARY OF QUARTERLY OPERATING STATISTICS
----------------------------------------------------------------------
% %
Change Change
Qtr Year
over over
Metric 3Q 2004 2Q 2004 3Q 2003 Qtr. Year
----------------------------------------------------------------------
Total Customers 866,000 813,000 693,000 6.5% 25.0%
Net Additions 53,000 40,000 16,000 32.5% 231.3%
Net income (loss)
(thousands) $2,168 $(10,706) $(17,510) 120.3% 112.4%
Adjusted EBITDA
(in thousands) $45,900 $48,343 $31,947 -5.1% 43.7%
Avg. Revenue Per User
(ARPU) (incl. roaming) $81 $78 $77 3.8% 5.2%
Avg. Revenue Per User
(ARPU) (w/out roaming) $57 $56 $57 1.8% 0.0%
Avg. Monthly Customer
Churn 2.4% 2.1% 2.9% 14.3% -17.2%
Cost Per Gross Addition
(CPGA) $351 $364 $408 -3.6% -14.0%
Avg. Monthly Cash Cost Per
User (CCPU)(w/o Roaming) $32 $30 $34 6.7% -5.9%
Avg. Monthly Cash Cost Per
User (CCPU)(w/Roaming) $45 $43 $45 4.7% 0.0%
Avg. Voice MOUs Per User
(w/out roaming) 666 658 550 1.2% 21.1%
Avg. Voice MOUs Per User
(incl. roaming) 855 839 719 1.9% 18.9%
Voice Minutes of Use
(MOUs) (total system)
(in millions) 2,451 2,199 1,614 11.5% 51.9%
Roaming Minutes - Inbound
(in millions) 604 553 468 9.2% 29.1%
Wholesale & Resale
Minutes-Inbound
(in millions) 171 79 16 116.5% 968.8%
Roaming Minutes - Outbound
(in millions) 476 433 348 9.9% 36.8%
Licensed POPs
(in millions) 15.8 15.8 15.8 0.0% 0.0%
Covered POPs (in millions) 12.3 12.1 11.9 1.7% 3.4%
Fixed Asset Additions
(in millions) $22.8 $19.5 $13.4 16.9% 70.1%
Penetration - Covered POPs 7.0% 6.7% 5.8% 4.5% 20.7%
----------------------------------------------------------------------
BUSINESS OUTLOOK Alamosa is providing the following business outlook for 2004 which may be materially affected by competitive conditions, continued development and acceptance of new Sprint Vision products and services, changes in pricing plans, wireless local number portability and general economic conditions, among other things. As announced on October 7, 2004, Alamosa revised its 2004 annual guidance as follows: --Full year 2004 Adjusted EBITDA of approximately $180 million, revised from $170 million --Fixed asset additions of $90 million, revised from $75-$80 million --Covered POP penetration The successful unauthorized breach of a security perimeter. See penetration test. of Alamosa markets to be in the range of 7.1 to 7.4 percent by 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. 2004, revised from previous guidance of 7.0 to 7.2 percent; covered POPs are now expected to be approximately 12.8 million --Full year average monthly customer churn of 2.4 percent or lower, revised from less than 2.6 percent for 2004 Third Quarter Earnings Release & Conference Call Alamosa has scheduled a conference call, which will be broadcast live over 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 , on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , November November: see month. 5, 2004 at 9:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . To participate in the call, dial 913-981-5543 and ask for the Alamosa call 10 minutes prior to the start time. Investors, analysts and the general public will also have the opportunity to listen to the conference call free over the Internet by visiting the Company's Web site at www.alamosapcs.com or www.fulldisclosure.com. To listen to the live call online, please visit 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 Web cast, a replay will be available through Friday, November 12, 2004, and may be accessed by calling 719-457-0820 and using the passcode 900147. An audio archive (1) A file that contains one or more compressed files. Most archive formats are also capable of storing folders in order to reconstruct the file/folder relationship when decompressed. See archive formats. will be available, shortly after the call, on the Company's website at or www.fulldisclosure.com for approximately 30 days. ABOUT ALAMOSA Alamosa Holdings, Inc. is the largest (based on number of subscribers) 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. Affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. of Sprint (NYSE NYSE See: New York Stock Exchange : FON Fon People of southern Benin and adjacent parts of Togo. They speak a dialect of Gbe, a Kwa language of the Niger-Congo language family. Numbering about 3 million, the Fon are mainly farmers. ), which operates the largest all-digital, all-CDMA Third-Generation (3G) 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. . Alamosa has the exclusive right to provide digital wireless mobile communications network The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. services under the Sprint brand name throughout its designated territory located in Texas, New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). , Oklahoma Oklahoma (ōkləhō`mə), state in SW United States. It is bordered by Missouri and Arkansas (E); Texas, partially across the Red R. (S, W); New Mexico, across the narrow edge of the Oklahoma Panhandle (W); and Colorado and Kansas (N). , Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. , Utah, Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee , Minnesota Minnesota, state, United States Minnesota (mĭn'ĭsō`tə), upper midwestern state of the United States. It is bordered by Lake Superior and Wisconsin (E), Iowa (S), South Dakota and North Dakota (W), and the Canadian provinces , Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. ,
Washington Washington, town, EnglandWashington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. , Arkansas Arkansas, river, United States Arkansas (ärkăn`zəs, är`kənsô'), river, c.1,450 mi (2,330 km) long, rising in the Rocky Mts., central Colo. , Kansas, Illinois Kansas is a village in Edgar County, Illinois, United States. The population was 842 at the 2000 census. Geography Kansas is located at (39.553627, -87.938392)GR1. and California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . Alamosa's territory includes licensed population of 15.8 million residents. ABOUT SPRINT Sprint is a global integrated communications provider serving more than 26 million customers in over 100 countries. With more than $26 billion in annual revenues in 2003, 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 See fiber optics. network and an award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" 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. . Sprint provides local communications services in 39 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). and operates the largest 100-percent digital, nationwide PCS wireless network in the United States. For more information, visit www.sprint.com FORWARD LOOKING STATEMENTS Statements contained in this news release that are 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. , such as statements containing terms such as can, may, will, expect, plan, and similar terms, 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 Alamosa's forward-looking statements, including the following factors: Alamosa's dependence on its affiliation affiliation (  fil´ēā´sh with Sprint;
shifts in populations or network focus; changes or advances in
technology; changes in Sprint's national service plans or fee
structure with us; change in population; difficulties in network
construction; increased competition in our markets; adverse changes in
financial position, condition or results of operations. For a detailed
discussion of these and other cautionary statements and factors that
could cause actual results to differ from Alamosa's forward-looking
statements, please refer to Alamosa's filings with the Securities
and Exchange Commission, especially in the "risk factors"
sections of Alamosa's Annual Report on Form 10-K Form 10-KA 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 year ended December December: see month. 31, 2003 and in subsequent filings with the Securities and Exchange Commission. Investors and analysts should not place undue reliance on forward-looking statements. Definitions of Operating and Non-GAAP Financial Measures We provide readers financial measures generated using 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 ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") and using adjustments to GAAP ("Non-GAAP"). These financial measures reflect conventions or standard measures of liquidity, profitability or performance commonly used by the investment community in the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry for comparability purposes. The Non-GAAP financial measures used in this release include the following: --Adjusted 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.
disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) items. This definition of adjusted EBITDA is consistent with the definition of adjusted EBITDA in our debt covenants. Adjusted EBITDA is a measure used by the investment community in the telecommunications industry for comparability as well as in our debt covenants for compliance purposes and is not intended to represent the results of our operations 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. The financial measures and other 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. used in this release include the following: --ARPU, or average monthly revenue per user, is a measure used to determine the average monthly subscriber revenue earned for subscribers based in our territory. This measure is calculated by dividing subscriber revenues in our consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: statement of operations See Income statement. by our average daily subscribers during the period divided by the number of months in the period. --CCPU, or cash cost per user, is a measure of the costs to operate our business on a per subscriber basis consisting of costs of service and operations, general and administrative expenses and debt exchange expenses in our consolidated statement of operations, plus 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. subsidies on equipment sold to existing subscribers less roaming charges paid to Sprint PCS. These costs are divided by average daily subscribers during the period divided by the number of months in the period to calculate CCPU CCPU Continuous Computing Corporation (stock symbol) CCPU Cash Cost Per User (Sprint) CCPU China Criminal Police University CCPU Cryptographic Central Processing Unit . --CPGA, or cost per gross addition, is used to measure the average cost we incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. to add a new subscriber in our territory. Costs we incur in calculating this measure include handset subsidies on new subscriber activations, commissions, rebates and other selling and marketing costs. We calculate CPGA (Ceramic PGA) See PGA. CPGA - Ceramic Pin Grid Array by dividing (a) the sum of cost of products sold and selling and marketing expenses associated with transactions with new subscribers during the measurement period, less product sales revenues associated with transactions with new subscribers during the measurement period, by (b) the total number of subscribers activated activated a state of being more than usually active. In biological systems this is usually brought about by chemical or electrical means. Commonly said of pharmaceutical and chemical products. in our territory during the period (net of activations deactivated within 30 days and activations due to transfers from Sprint PCS and other PCS Affiliates of Sprint into our territory). --Average monthly churn is used to measure the rate at which subscribers based in our territory deactivate de·ac·ti·vate tr.v. de·ac·ti·vat·ed, de·ac·ti·vat·ing, de·ac·ti·vates 1. To render inactive or ineffective. 2. To inhibit, block, or disrupt the action of (an enzyme or other biological agent). 3. service on a voluntary or involuntary involuntary adj. or adv. without intent, will, or choice. Participation in a crime is involuntary if forced by immediate threat to life or health of oneself or one's loved ones, and will result in dismissal or acquittal. INVOLUNTARY. basis. We calculate average monthly churn based on the number of subscribers deactivated during the period (net of transfers out of our service area and those who deactivated within 30 days of 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. ) as a percentage of our average daily subscriber base during the period divided by the number of months during the period. --Licensed POPs represent the number of residents (usually expressed in millions) in our territory in which we have an exclusive right to provide wireless mobility communications services under the Sprint brand name. The number of residents located in our territory does not represent the number of wireless subscribers that we serve or expect to serve in our territory. --Covered POPs represent the number of residents (usually expressed in millions) covered by our portion of the PCS network of Sprint in our territory. The number of residents covered by our network does not represent the number of wireless subscribers that we serve or expect to serve in our territory.
ALAMOSA HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(dollars in thousands, except share information)
September 30, December 31,
2004 2003
------------- ------------
ASSETS
Current assets:
Cash and cash equivalents $109,269 $99,644
Restricted cash -- 1
Short term investments 50,342 --
Customer accounts receivable, net 45,164 28,034
Receivable from Sprint 18,531 22,947
Inventory 6,778 7,309
Prepaid expenses and other assets 10,816 9,763
Deferred customer acquisition costs 6,884 8,060
Deferred tax asset 4,572 4,572
------------- ------------
Total current assets 252,356 180,330
Property and equipment, net 431,363 434,840
Debt issuance costs, net 9,286 14,366
Early redemption option on preferred stock 23,637 21,687
Intangible assets, net 424,283 448,354
Other noncurrent assets 4,700 6,393
------------- ------------
Total assets $1,145,625 $1,105,970
============= ============
LIABILITIES, REDEEMABLE CONVERTIBLE
PREFERRED STOCK AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $25,880 $33,247
Accrued expenses 43,272 37,325
Payable to Sprint 26,729 26,616
Interest payable 8,423 5,353
Deferred revenue 23,284 22,742
Current installments of capital leases 168 481
------------- ------------
Total current liabilities 127,756 125,764
------------- ------------
Long term liabilities:
Capital lease obligations 777 812
Other noncurrent liabilities 6,225 8,693
Deferred tax liability 15,963 15,966
Senior secured debt -- 200,000
Senior notes 732,722 464,424
------------- ------------
Total long term liabilities 755,687 689,895
------------- ------------
Total liabilities 883,443 815,659
------------- ------------
Commitments and contingencies -- --
Redeemable convertible preferred stock:
Series B preferred stock, $.01 par value,
750,000 shares authorized;
479,849 and 679,495 shares issued and
outstanding, respectively 161,438 228,606
Series C preferred stock, $.01 par value;
500,000 shares authorized; no shares
issued -- --
------------- ------------
Total redeemable convertible preferred
stock 161,438 228,606
------------- ------------
Stockholders' equity:
Preferred stock, $.01 par value; 8,750,000
shares authorized; no shares issued -- --
Common stock, $.01 par value; 290,000,000
shares authorized,
114,191,880 and 95,401,557 shares issued
and outstanding, respectively 1,142 954
Additional paid-in capital 860,512 800,992
Accumulated deficit (760,652) (739,566)
Unearned compensation (258) (145)
Accumulated other comprehensive loss, net
of tax -- (530)
------------- ------------
Total stockholders' equity 100,744 61,705
------------- ------------
Total liabilities and stockholders'
equity $1,145,625 $1,105,970
============= ============
ALAMOSA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(dollars in thousands, except per share amounts)
For the three For the nine
months ended months ended
September 30, September 30,
------------------------- ------------------------
2004 2003 2004 2003
------------ ------------ ------------ -----------
Revenues:
Subscriber
revenues $143,623 $116,665 $401,938 $335,239
Roaming and
wholesale
revenues 59,106 41,126 153,964 107,956
------------ ------------ ------------ -----------
Service revenues 202,729 157,791 555,902 443,195
Product sales 8,637 8,599 25,483 19,697
------------ ------------ ------------ -----------
Total revenue 211,366 166,390 581,385 462,892
------------ ------------ ------------ -----------
Costs and expenses:
Cost of service
and operations 99,250 83,313 276,528 242,912
Cost of products
sold 20,265 14,913 56,427 40,156
Selling and
marketing 40,090 29,801 102,922 84,531
General and
administrative
expenses 5,861 4,084 17,284 12,471
Depreciation and
amortization 25,886 28,235 78,793 82,536
Impairment of
property and
equipment 172 291 3,082 685
Non-cash
compensation 30 45 81 285
------------ ------------ ------------ -----------
Total costs and
expenses 191,554 160,682 535,117 463,576
------------ ------------ ------------ -----------
Income (loss)
from operations 19,812 5,708 46,268 (684)
Loss on debt
extinguishment -- -- (13,101) --
Debt exchange
expenses -- (2,332) -- (3,528)
Gain on derivative
instrument 1,200 -- 1,946 --
Interest and other
income 362 187 751 821
Interest expense (19,206) (26,519) (56,393) (79,007)
------------ ------------ ------------ -----------
Income (loss)
before income
taxes 2,168 (22,956) (20,529) (82,398)
Income tax
(expense) benefit -- 5,446 (557) 15,694
------------ ------------ ------------ -----------
Net income (loss) 2,168 (17,510) (21,086) (66,704)
Preferred stock
dividend (2,282) -- (8,078) --
Preferred stock
conversion premium (160) -- (6,600) --
------------ ------------ ------------ -----------
Net loss
attributable to
common
stockholders $(274) $(17,510) $(35,764) $(66,704)
============ ============ ============ ===========
Net loss per common
share, basic and
diluted $(0.00) $(0.19) $(0.35) $(0.71)
============ ============ ============ ===========
Weighted average
common shares
outstanding, basic
and diluted 112,845,429 94,126,719 103,441,770 93,810,363
============ ============ ============ ===========
ALAMOSA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(dollars in thousands)
For the nine months ended
September 30,
-------------------------
2004 2003
---------- ----------
Cash flows from operating activities:
Net loss $(21,086) $(66,704)
Adjustments to reconcile net loss to net
cash provided by
operating activities:
Non-cash compensation 81 285
Non-cash interest expense (benefit) on
derivative instruments 6 (468)
Non-cash accretion of asset retirement
obligations 139 524
Non-cash gain on derivative instruments (1,946) --
Provision for bad debts 7,603 11,100
Depreciation and amortization of property
and equipment 54,269 52,486
Amortization of intangible assets 24,524 30,050
Amortization of financing costs included in
interest expense 718 3,362
Amortization of discounted interest -- 297
Loss on debt extinguishment 13,101 --
Deferred tax benefit -- (15,694)
Interest accreted on discount notes 18,351 26,483
Impairment of property and equipment 3,082 685
Debt exchange expenses -- 3,528
(Increase) decrease in:
Receivables (20,318) (3,950)
Inventory 531 1,390
Prepaid expenses and other assets 1,816 (1,138)
Increase (decrease) in:
Accounts payable and accrued expenses 7,571 (6,765)
---------- ----------
Net cash provided by operating activities 88,442 35,471
---------- ----------
Cash flows from investing activities:
Proceeds from sale of assets 569 2,496
Purchases of property and equipment (63,765) (31,645)
Purchase of intangible asset (453) --
Change in restricted cash 1 34,724
Change in short term investments (50,342) --
---------- ----------
Net cash provided by (used in) investing
activities (113,990) 5,575
---------- ----------
Cash flows from financing activities:
Proceeds from issuance of senior notes 250,000 --
Repayments of borrowings under senior
secured debt (200,000) --
Debt issuance costs (8,206) --
Debt exchange expenses -- (3,528)
Preferred stock dividends (8,349) --
Preferred stock conversion premium (276) --
Stock options exercised 1,441 6
Shares issued to employee stock purchase
plan 978 349
Payments on capital leases (415) (884)
---------- ----------
Net cash provided by (used in) financing
activities 35,173 (4,057)
---------- ----------
Net increase in cash and cash equivalents 9,625 36,989
Cash and cash equivalents at beginning of
period 99,644 61,737
---------- ----------
Cash and cash equivalents at end of period $109,269 $98,726
========== ==========
Supplemental disclosure of non-cash
financing and investing activities:
Conversion of preferred stock $67,219 $--
Preferred stock issued in debt exchange $51 $--
Asset retirement obligations capitalized $143 $1,243
Capitalized lease obligations incurred $67 $73
Change in accounts payable for purchases of
property and equipment $(9,532) $(7,065)
Alamosa Holdings, Inc.
Computation of Adjusted EBITDA
and Reconciliation of Non-GAAP Liquidity Measures
(Unaudited)
(In thousands)
For the three For the nine For the three
months ended months ended months ended
September 30, September 30, June 30,
------------------ -----------------
2004 2003 2004 2003 2004
-------- --------- --------- -------- ----------
Net income (loss): $2,168 $(17,510) $(21,086) $(66,704) $(10,706)
Income tax (benefit)
expense -- (5,446) 557 (15,694) 240
Net interest expense 18,844 26,332 55,642 78,186 18,731
Depreciation and
amortization 25,886 28,235 78,793 82,536 25,523
Non-cash
compensation 30 45 81 285 25
Loss on debt
extinguishment -- -- 13,101 -- --
(Gain) loss on
derivative
instruments (1,200) -- (1,946) -- 11,926
Impairment of
property and
equipment 172 291 3,082 685 2,604
-------- --------- --------- --------- ---------
Adjusted EBITDA 45,900 31,947 128,224 79,294 48,343
Provision for bad
debts 3,489 1,100 7,603 11,100 2,179
Non-cash accretion
of ARO 48 524 139 524 46
Non-cash interest
items 6,525 10,123 19,075 29,674 6,277
Debt exchange
expenses -- 2,332 -- 3,528 --
Cash income tax
expense -- -- (557) -- (240)
Interest expense,
net (18,844) (26,332) (55,642) (78,186) (18,731)
Working capital
changes (10,362) (4,923) (10,400) (10,463) 3,615
-------- --------- --------- --------- ---------
Cash flow from
operating activities $26,756 $14,771 $88,442 $35,471 $41,489
======== ========= ========= ========= =========
Alamosa Holdings, Inc.
Computation of Average Revenue per User (ARPU)
Computation of Cash Cost per User (CCPU)
Computation of Cost per Gross Addition (CPGA)
(Unaudited)
For the three months ended For the three
September 30, months ended
--------------------------- June 30,
2004 2003 2004
------------- ------------- -------------
Subscriber revenues $143,623,000 $116,665,000 $133,569,000
Roaming and wholesale
revenues 59,106,000 41,126,000 51,705,000
------------- ------------- -------------
Service revenues $202,729,000 $157,791,000 $185,274,000
============= ============= =============
Average subscribers 839,000 685,000 794,000
============= ============= =============
ARPU $57 $57 $56
============= ============= =============
ARPU with roaming $81 $77 $78
============= ============= =============
For the three months ended For the three
September 30, months ended
--------------------------- June 30,
2004 2003 2004
------------- ------------- -------------
Cost of service and
operations $99,250,000 $83,313,000 $91,062,000
Less: Roaming expense (33,675,000) (23,847,000) (30,144,000)
General and administrative
expenses 5,861,000 4,084,000 5,706,000
Debt exchange expenses -- 2,332,000 --
Upgrade costs in selling and
marketing expenses 8,876,000 3,058,000 4,901,000
------------- ------------- -------------
$80,312,000 $68,940,000 $71,525,000
============= ============= =============
Average subscribers 839,000 685,000 794,000
============= ============= =============
CCPU $32 $34 $30
============= ============= =============
CCPU with roaming $45 $45 $43
============= ============= =============
For the three months ended For the three
September 30, months ended
--------------------------- June 30,
2004 2003 2004
------------- ------------- -------------
Selling and marketing
expenses $40,090,000 $29,801,000 $31,839,000
Less: Upgrade costs in
selling and marketing costs (8,876,000) (3,058,000) (4,901,000)
Cost of products sold 20,265,000 14,913,000 16,379,000
Product sales revenues (8,637,000) (8,599,000) (8,055,000)
------------- ------------- -------------
$42,842,000 $33,057,000 $35,262,000
============= ============= =============
Activations 122,000 81,000 97,000
============= ============= =============
CPGA $351 $408 $364
============= ============= =============
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