Alamosa Reports Solid First Quarter 2005 Results.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 -- 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) ): First Quarter Highlights: --Completed merger with 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. on February February: see month. 15, 2005 --Net loss of $3.1 million or $0.02 per common share, after 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 inducement Inducement Electra incited brother, Orestes, to kill their mother and her lover. [Gk. Myth.: Zimmerman, 92; Gk. Lit.: Electra, Orestes] Hezekiah exhorts Judah to stand fast against Assyrians. [O.T. premiums of $2.9 million --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 totaled $62.5 million, including $55.3 million from the Alamosa properties and $7.3 million from the former AirGate properties from February 16, 2005 --Exchanged approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 31,000 units of convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". prior to March 31, 2005 and approximately 184,000 units subsequent to the quarter end, for 16 million newly-issued common shares --As previously announced: --Subscribers increased by approximately 65,000 to 1,395,000 with average monthly customer churn churn: see butter. of 2.3 percent --Announced early redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of the 12 7/8% Senior Discount Notes due 2010 Alamosa Holdings, Inc. (Nasdaq/NM: APCS), a PCS 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. ) today reported financial and operational results for the first quarter ended March 31, 2005, including previously announced results on April 11, 2005 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 average monthly customer churn. During the first quarter, the Company closed the merger with AirGate PCS, Inc., and began integration to the Alamosa system. Reported financial results reflect AirGate's operations from February 16, 2005 through the first quarter ended March 31, 2005. Alamosa also exchanged convertible preferred stock and announced its intention to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. the 12 7/8% Senior Discount Notes (the Notes) due 2010. Total 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: revenue for the first quarter was $267.8 million comprised of: $190.0 million in subscriber revenues, $68.2 million in travel revenues (including wholesale and resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. ) and $9.6 million in product sales revenues. On a standalone stand·a·lone adj. Self-contained and usually independently operating: a standalone computer terminal. basis, Alamosa reported total revenue of $223.6 million comprised of: $155.0 million in subscriber revenues, $60.6 million in travel revenues (including wholesale and resale) and $8.0 million in product sales revenues. For the former AirGate properties from February 16, 2005, total revenue was $44.7 million, comprised of: $34.9 million in subscriber revenues, $8.1 million in travel revenues (including wholesale and resale) and $1.6 million in product sales revenues. Total consolidated Adjusted EBITDA of $62.5 million for the first quarter included $55.3 million from the Alamosa properties and $7.3 million for the former AirGate properties from February 16, 2005. The consolidated Company reported a first quarter net loss of $3.1 million or $0.02 per common share, after preferred stock dividends and inducement premiums of $2.9 million. This compares to a net income of $1.6 million and $0.01 per common share, after preferred stock dividends, during the fourth quarter of 2004. On a standalone basis, Alamosa generated $7.6 million in net income. The former AirGate properties generated a net loss of $6.3 million. As previously announced on April 11, 2005, the Company reported that combined net subscribers grew by 65,000 during the first quarter to end at 1.395 million total direct subscribers. Net subscriber additions were 55,000 for Alamosa for the full quarter and 10,000 for the former AirGate properties from the date of the merger until the end of the quarter. Along with subscriber growth, the Company reported combined average monthly customer churn of 2.3 percent for the first quarter unchanged from the fourth quarter of 2004 and down from 2.4 percent in the same period one year ago. On a standalone basis, Alamosa's average monthly customer churn was 2.2 percent compared to 2.3 percent in the prior quarter, while the former AirGate properties reported an average monthly customer churn of 2.5 percent compared to 2.7 percent in the prior quarter. The Company launched 68 new sites, including 22 in the former AirGate properties and added an additional 33 second carriers in the first quarter, resulting in an increased covered population of 19.4 million, including 13.1 million covered pops in the Alamosa properties and 6.3 million in the former AirGate properties. During the quarter, the Company spent approximately $30.4 million on fixed asset additions, including $22.7 million in the Alamosa footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. and $7.7 million in the former AirGate properties. The Company exchanged approximately 31,000 units of convertible preferred stock prior to March 31, 2005 with approximately 184,000 additional units being converted subsequent to quarter end, representing a liquidation value Liquidation value Net amount that could be realized by selling the assets of a firm after paying the debt. in excess of $53.9 million and resulting in the issuance of 16 million newly-issued shares of common stock. Inducement premiums paid in these transactions included approximately 383,000 shares of common stock. As a result of these recent transactions, Alamosa eliminated in excess of $6.8 million in dividend requirements on these units through the November November: see month. 2006 call date. Since June June: see month. 1, 2004 the Company has eliminated approximately 417,000 units of preferred stock, or approximately 61% of the original outstanding preferred issue and approximately $103 million in liquidation value in exchange for approximately 32 million newly-issued shares of Alamosa common stock. The redemption of the 12 7/8% Senior Notes announced on March 29, 2005 was completed on April 25, 2005 for $6.4 million. The Company will avoid approximately $4 million dollars in interest expense over the next five years, based on the original maturity of the Notes. "We experienced strong momentum in the first quarter, both as the result of our operational efforts last year and our early success in the initial integration of the former AirGate properties," said David E. Sharbutt, Chairman and Chief Executive Officer of Alamosa Holdings, Inc. "We are excited about the growth we are seeing in our business, our path toward financial profitability and rationalization rationalization, in psychology: see defense mechanism. of our balance sheet through the early conversion of convertible preferred stock and the early redemption of the 12 7/8% Senior Notes, both of which will avoid the cash outlay of dividends and interest in the future. All in all, we are very encouraged by the start to 2005, both for Alamosa and the wireless industry in general. We look forward to maintaining that momentum for the balance of 2005," Mr. Sharbutt concluded.
SUMMARY OF QUARTERLY OPERATING STATISTICS
AirGate
Standalone
Alamosa Alamosa (From
Alamosa-Q1 2005 (Consolidated) Standalone 2/16/05)
----------------------------------------------------------------------
Service Revenue (millions)(a) $258.2 $215.6 $43.1
Adjusted EBITDA (millions) (a) $62.5 $55.3 $7.3
Net income (loss) (millions) (a) $(242) $7,615 $(6,336)
Cash & ST investments at period-
end (millions) (a) $137.9 $76.0 $57.8
Fixed Asset Additions during
period (millions) $30.4 $22.7 $7.7
----------------------------------------------------------------------
Total Customers 1,395,000 970,000 425,000
Net Additions 65,000 55,000 10,000
Licensed POPs (millions) 23.2 15.8 7.4
Covered POPs (millions) 19.4 13.1 6.3
Churn (net of 30 day returns) 2.3% 2.2% 2.5%
Penetration - Covered POPs 7.2% 7.4% 6.7%
----------------------------------------------------------------------
ARPU (including roaming &
wholesale) $75 $76 $70
ARPU (without roaming & wholesale) $55 $55 $57
CCPU (including roaming) $41 $41 $43
CCPU (without roaming) $29 $29 $32
CPGA $368 $362 $397
----------------------------------------------------------------------
Total Voice System Minutes of Use
(MOUs) (millions) 3,508 2,820 688
Avg. Voice MOUs Per User (w/out
roaming) 734 703 875
Avg. Voice MOUs Per User (incl.
roaming) 909 876 1,056
Inbound Roaming Minutes (millions) 742 612 130
Inbound Wholesale & Resale Minutes
(millions) 238 221 17
Outbound Roaming Minutes
(millions) 601 488 113
---------------------------------------------- ------------
(a) Consolidated results includes Holding Company activity, which is
not presented separately
% %
Change Change
Qtr Year
over over
Alamosa (Delaware), Inc. 1Q 2005 4Q 2004 1Q 2004 Qtr. Year
----------------------------- -------- -------- -------- ------- -----
Service Revenue (millions) $ 216 $ 214 $ 168 0.7% 28.4%
Adjusted EBITDA (millions) $ 55 $ 52 $ 34 6.3% 61.7%
Net income (loss) (millions) $ 7,615 $ 5,758 $(24,660) 32.3% NM
Cash & ST investments at
period-end (millions) $ 76 $ 178 $ 134 -57.2% -43.1%
Fixed Asset Additions during
period (millions) $ 23 $ 31 $ 12 -25.7% 88.0%
----------------------------- -------- -------- -------- ------- -----
Total Customers 970,000 915,000 773,000 6.0% 25.5%
Net Additions 55,000 49,000 46,000 12.2% 19.6%
Licensed POPs (millions) 15.8 15.8 15.8 0.0% 0.0%
Covered POPs (millions) 13.1 12.9 12.1 1.6% 8.3%
Churn (net of 30 day returns) 2.2% 2.3% 2.4% -4.3% -8.3%
Penetration - Covered POPs 7.4% 7.1% 6.4% 4.2% 15.6%
----------------------------- -------- -------- -------- ------- -----
ARPU (including roaming &
wholesale) $ 76 $ 80 $ 75 -5.0% 1.3%
ARPU (without roaming &
wholesale) $ 55 $ 58 $ 56 -5.2% -1.8%
CCPU (including roaming) $ 41 $ 45 $ 43 -8.9% -4.7%
CCPU (without roaming) $ 29 $ 32 $ 31 -9.4% -6.5%
CPGA $ 362 $ 364 $ 359 -0.5% 0.8%
----------------------------- -------- -------- -------- ------- -----
Total Voice System Minutes of
Use (MOUs) (millions) 2,820 2,652 1,971 6.3% 43.1%
Average Voice MOUs Per User
(without roaming) 703 685 640 2.6% 9.8%
Average Voice MOUs Per User
(including roaming) 876 867 809 1.0% 8.3%
Inbound Roaming Minutes
(millions) 612 643 496 -4.8% 23.4%
Inbound Wholesale & Resale
Minutes (millions) 221 180 39 22.8% 466.7%
Outbound Roaming Minutes
(millions) 488 484 380 0.8% 28.4%
----------------------------- -------- -------- -------- ------- -----
BUSINESS OUTLOOK The following business outlook for 2005 may be materially affected by competitive conditions, continued development and acceptance of new Vision products and services, changes in pricing plans, the integration of AirGate PCS, Inc., the proposed business combination between Sprint and Nextel (Nextel Communications, Inc., Reston, VA, www.nextel.com) A wireless communications carrier founded in New Jersey in 1987 as Fleet Call, a two-way radio service. Throughout the late 1980s and 1990s, the company acquired a large number of SMR (Specialized Mobile Radio) operators and turned and general economic conditions, among other things (See "Forward Looking Statements" below):
AirGate (10
Alamosa 1/2 Months) Combined
--------------------------------- ----------- ------------- ----------
Adjusted EBITDA $250 $65 million $315
million million
Fixed Asset Additions $90 million $50 million $140
million
Net Subscriber Additions 165,000 40,000 205,000
Average Monthly Churn - less than less than less than less than
2.4% 2.6% 2.5%
First 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 Thursday Thursday: see week. , May 5, 2005 at 9:00 a.m. ET. Investors and analysts may access the call live via phone by dialing 913-981-4911 and asking for the Alamosa call 10 minutes prior to the start time or listen live over the Internet by logging on to www.alamosapcs.com or www.fulldisclosure.com. A telephonic replay of the conference call will be available through Thursday, May 12, 2005, and may be accessed by calling 719-457-0820 and using the passcode 5410744. 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 www.alamosapcs.com or www.earnings.com for 30 days. ABOUT ALAMOSA Alamosa Holdings, Inc. is the largest (based on number of subscribers) PCS Affiliate of Sprint (NYSE: FON), 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 mobility 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. , 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). , 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. , 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. , 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. and Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. . Alamosa's territory includes licensed population of 23.2 million residents, including 15.8 million residents in Alamosa's territories and 7.4 million residents in the recently acquired AirGate properties. ABOUT SPRINT Sprint offers an extensive range of innovative communication products and solutions, including global IP, wireless, local and multiproduct bundles. A Fortune 100 company with more than $27 billion in annual revenues in 2004, 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; 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. ; and one of the largest 100-percent digital, nationwide wireless networks in the United States. For more information, visit www.sprint.com/mr. 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. including "Business Outlook" data and statements containing terms such as "can", "may", "will", "expect", "plan", and similar terms and statements about the benefits of the merger between Alamosa and AirGate PCS, Inc, 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 and adverse changes
in financial position, condition or results of operations and as
outlined in the "Business Outlook" section of this release,
competitive conditions, continued development and acceptance of new
Vision products and services, changes in pricing plans, the integration
of AirGate PCS, Inc., the proposed business combination between Sprint
and Nextel and general economic conditions, among other things. 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, 2004 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. Adjusted EBITDA is a measure used by the investment community in the telecommunications industry for comparability 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 (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. ) or total service revenues (ARPU with 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. ) in our consolidated 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 (CCPU CCPU Continuous Computing Corporation (stock symbol) CCPU Cash Cost Per User (Sprint) CCPU China Criminal Police University CCPU Cryptographic Central Processing Unit with roaming) less roaming charges paid to Sprint PCS (CCPU before roaming). These costs are divided by average daily subscribers during the period divided by the number of months in the period to calculate CCPU. --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 in the PCS wireless spectrum. 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)
March 31, 2005 December 31, 2004
-------------- ------------------
ASSETS
Current assets:
Cash and cash equivalents $42,566 $129,917
Short term investments 95,318 50,418
Customer accounts receivable, net 68,275 44,687
Receivable from Sprint 43,449 24,809
Interest receivable 196 216
Inventory 16,594 9,136
Prepaid expenses and other assets 19,634 13,170
Deferred customer acquisition costs 6,040 6,337
Deferred tax asset 4,230 4,230
-------------- ------------------
Total current assets 296,302 282,920
Property and equipment, net 526,647 441,808
Debt issuance costs, net 8,858 9,086
Early redemption option on
preferred stock 22,019 21,387
Goodwill 252,778 --
Intangible assets, net 818,443 416,716
Other noncurrent assets 5,638 4,188
-------------- ------------------
Total assets $1,930,685 $1,176,105
============== ==================
LIABILITIES, REDEEMABLE CONVERTIBLE
PREFERRED STOCK AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $29,227 $24,692
Accrued expenses 59,589 43,916
Payable to Sprint 59,569 35,852
Interest payable 14,590 21,076
Deferred revenue 27,927 22,549
Current installments of capital
leases 113 110
-------------- ------------------
Total current liabilities 191,015 148,195
-------------- ------------------
Long term liabilities:
Capital lease obligations 720 749
Other noncurrent liabilities 8,874 5,835
Deferred tax liability 38,204 16,362
Senior notes 1,093,662 739,141
-------------- ------------------
Total long term liabilities 1,141,460 762,087
-------------- ------------------
Total liabilities 1,332,475 910,282
-------------- ------------------
Commitments and contingencies -- --
Redeemable convertible preferred
stock:
Series B preferred stock, $.01 par
value, 750,000 shares authorized;
448,180 and 478,987 shares issued
and outstanding, respectively 150,783 161,148
Series C preferred stock, $.01 par
value; 500,000 shares authorized;
no shares issued -- --
-------------- ------------------
Total redeemable convertible
preferred stock 150,783 161,148
-------------- ------------------
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,
144,892,392 and 114,895,245
shares issued and outstanding,
respectively 1,449 1,149
Additional paid-in capital 1,205,352 860,425
Accumulated deficit (757,076) (756,834)
Unearned compensation (2,298) (65)
-------------- ------------------
Total stockholders' equity 447,427 104,675
-------------- ------------------
Total liabilities and
stockholders' equity $1,930,685 $1,176,105
============== ==================
ALAMOSA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(dollars in thousands, except per share amounts)
For the three months
ended
March 31,
------------------------
2005 2004
------------ -----------
Revenues:
Subscriber revenues $189,980 $124,746
Roaming and wholesale revenues 68,177 43,153
------------ -----------
Service revenues 258,157 167,899
Product sales 9,615 8,791
------------ -----------
Total revenue 267,772 176,690
------------ -----------
Costs and expenses:
Cost of service and operations 122,275 86,216
Cost of products sold 28,579 19,783
Selling and marketing 45,277 30,993
General and administrative expenses 9,180 5,717
Merger related expenses 1,280 --
Depreciation and amortization 40,654 27,384
(Gain) loss on disposal of property and
equipment (24) 306
Non-cash compensation 771 26
------------ -----------
Total costs and expenses 247,992 170,425
------------ -----------
Income from operations 19,780 6,265
Loss on debt extinguishment -- (13,101)
Gain on derivative instrument 849 12,672
Interest and other income 1,100 168
Interest expense (22,354) (18,235)
------------ -----------
Loss before income taxes (625) (12,231)
Income tax (expense) benefit 383 (317)
------------ -----------
Net loss (242) (12,548)
Preferred stock dividend (2,149) (3,220)
Preferred stock conversion premium (729) --
------------ -----------
Net loss attributable to common
stockholders $(3,120) $(15,768)
============ ===========
Net loss per common share, basic and diluted $(0.02) $(0.17)
============ ===========
Weighted average common shares outstanding,
basic and diluted 128,944,685 95,490,768
============ ===========
ALAMOSA HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(dollars in thousands)
For the three months
ended March 31,
--------------------
2005 2004
-------- ---------
Cash flows from operating activities:
Net loss $ (242) $ (12,548)
Adjustments to reconcile net loss to net cash
provided by
operating activities:
Non-cash compensation 771 26
Non-cash interest expense (benefit) on
derivative instruments -- 6
Non-cash accretion of asset retirement
obligations 70 45
Non-cash gain on derivative instruments (849) (12,672)
Provision for bad debts 1,719 1,935
Depreciation and amortization of property and
equipment 22,381 17,980
Amortization of intangible assets 18,273 9,404
Amortization of financing costs included in
interest expense 228 265
Amortization of debt premium (441) --
Loss on debt extinguishment -- 13,101
Interest accreted on discount notes 6,571 6,001
(Gain) loss on disposal of property and
equipment (24) 306
Merger related expenses 1,280 --
(Increase) decrease in:
Receivables (3,146) (6,380)
Inventory (3,126) 1,936
Prepaid expenses and other assets (2,092) (631)
Increase (decrease) in:
Accounts payable and accrued expenses (32,059) 1,423
-------- ---------
Net cash provided by operating activities 9,314 20,197
-------- ---------
Cash flows from investing activities:
Proceeds from sale of assets 131 343
Purchases of property and equipment (26,371) (24,218)
Net cash paid in business combination (69,756) --
Merger related expenses (1,280) --
Change in restricted cash -- 1
Change in short term investments (277) --
-------- ---------
Net cash used in investing activities (97,553) (23,874)
-------- ---------
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 -- (8,059)
Preferred stock dividends (2,245) (2,866)
Stock options exercised 2,890 235
Shares issued to employee stock purchase plan 267 492
Proceeds from restricted stock sales 2 --
Payments on capital leases (26) (139)
-------- ---------
Net cash provided by financing activities 888 39,663
-------- ---------
Net increase (decrease) in cash and cash
equivalents (87,351) 35,986
Cash and cash equivalents at beginning of period 129,917 99,644
-------- ---------
Cash and cash equivalents at end of period $ 42,566 $ 135,630
======== =========
Supplemental disclosure of non-cash financing and
investing activities:
Stock issued in business combination $330,847 $ --
Conversion of preferred stock 10,365 19
Asset retirement obligations capitalized 213 29
Change in accounts payable for purchases of
property and equipment 3,658 (12,110)
Non-cash fixed asset additions 127 --
Computation of Adjusted EBITDA and Reconciliation of Non-GAAP
Liquidity Measures
(Unaudited)
(In thousands)
Alamosa AirGate
Holdings, PCS,
Inc. Alamosa (Delaware), Inc. Inc.
---------- -------------------------- --------
For the
period
from
For three For the three For three February
months months ended months ended 16,
ended March 31, December 2005 to
March 31, ----------------- 31, March 31,
2005 2005 2004 2004 2005
---------- -------------------------- --------
Net income (loss) $(242) $7,615 $(24,660) $5,758 $(6,336)
Income tax expense
(benefit) (383) 1,551 -- 946 (3,970)
Net interest expense 21,254 18,818 18,068 18,632 2,449
Depreciation and
amortization 40,654 26,349 27,384 25,982 14,305
Non-cash compensation 771 603 20 20 --
Loss on debt
extinguishment -- -- 13,101 -- --
Merger related expenses 1,280 436 -- -- 844
(Gain) loss on
derivative instruments (849) -- -- -- --
(Gain) loss on disposal
of property and
equipment (24) (24) 306 648 --
---------- -------------------------- --------
Adjusted EBITDA 62,461 55,348 34,219 51,986 7,292
Provision for bad debts 1,719 1,773 1,935 5,224 (54)
Non-cash accretion of
asset retirement
obligation 70 (1,551) -- 48 15
Non-cash interest items 6,358 55 45 6,648 (441)
Cash income tax
(expense) benefit 383 6,799 6,272 625 --
Net interest expense (21,254) (18,818) (18,068) (18,632) (2,449)
Working capital changes (36,405) (48,045) (4,107) (2,767) (8,138)
---------- -------------------------- --------
Cash flows from
operating activities $13,332 $(4,439) $20,296 $43,132 $(3,775)
========== ========================== ========
Computation of Average Revenue per User (ARPU)
Computation of Cash Cost per User (CCPU)
(Unaudited)
Alamosa Alamosa (Delaware), Inc. AirGate
Holdings, PCS,
Inc. Inc.
---------- --------------------------- --------
For the
period
For the from
For the For the three three February
three months ended months 16,
months March 31, ended 2005 to
ended ------------------ December March
March 31, 31, 31,
2005 2005 2004 2004 2005
---------- --------------------------- --------
Subscriber revenues
(000s) $189,980 $155,031 $124,746 $153,773 $34,949
Roaming and wholesale
revenue (000s) 68,177 60,606 43,153 60,266 8,140
---------- --------------------------- --------
Service revenue (000s) $258,157 $215,637 $167,899 $214,039 $43,089
========== =========================== ========
Average subscribers 1,147,000 942,000 748,000 889,000 308,000
========== =========================== ========
ARPU $55 $55 $56 $58 $57
========== =========================== ========
ARPU with roaming $75 $76 $75 $80 $70
========== =========================== ========
Cost of service and
operations (000s) $122,275 $101,483 $86,216 $106,759 $21,361
Less roaming expense
(000s) (40,182) (33,628) (27,176) (33,461) (6,554)
General and
administrative
expenses (000s) 9,180 6,102 5,717 5,303 2,899
Merger related expenses
(000s) 1,280 436 -- -- 844
Upgrade costs in
selling and marketing
expenses (000s) 8,300 7,086 4,680 6,725 1,214
---------- --------------------------- --------
$100,853 $81,479 $69,437 $85,326 $19,764
========== =========================== ========
Average subscribers 1,147,000 942,000 748,000 889,000 308,000
========== =========================== ========
CCPU $29 $29 $31 $32 $32
========== =========================== ========
CCPU with roaming $41 $41 $43 $45 $43
========== =========================== ========
Computation of Cost per Gross Addition (CPGA)
(Unaudited)
Alamosa Alamosa (Delaware), Inc. AirGate
Holdings, PCS,
Inc. Inc.
---------- ------------------------- --------
For the
period
For the from
For the For the three three February
three months ended months 16,
months March 31, ended 2005 to
ended ------------------ December March
March 31, 31, 31,
2005 2005 2004 2004 2005
--------- -------------------------- --------
Selling and marketing
expenses (000s) $45,277 $36,520 $30,993 $37,911 $8,757
Less upgrade costs in
selling and marketing
costs(000s) (8,300) (7,086) (4,680) (6,725) (1,214)
Cost of products
sold(000s) 28,579 24,151 19,783 19,756 4,428
Product sales
revenues(000s) (9,615) (7,967) (8,791) (7,676) (1,648)
---------- ------------------------- --------
$55,941 $45,618 $37,305 $43,266 $10,323
========== ========================= ========
Activations 152,000 126,000 104,000 119,000 26,000
========== ========================= ========
CPGA $368 $362 $359 $364 $397
========== ========================= ========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion