Centennial Announces Record First Quarter Results.NEPTUNE Neptune, in Roman religion and mythology Neptune, in Roman religion and mythology, god of water. He was presumably an indigenous god of fertility, but in later times he was identified with the Greek Poseidon, god of the sea. , N.J.--(BUSINESS WIRE)--Sept. 22, 1999-- Centennial Cellular Corp ("Centennial" or the "Company") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CYCL CYCL - A frame language. ["Building Large Knowledge-Based Systems", Doug B. Lenat et al, A-W 1990]. ) announced record results for the quarter ended August 31, 1999 for both domestic cellular and 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. integrated communications services. Quarterly revenues of $117.3 million and earnings before interest, taxes, depreciation, and amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. ("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 ") of $57.9 million as well as number of subscribers reached record levels for both the domestic and Puerto Rico businesses. The Company's wireless subscribers at August 31, 1999 were 486,300 as compared to 354,100 the same date a year ago, an increase of 37%. Domestic cellular subscribers increased by 20,600 during the quarter, as compared to 15,500 the same quarter last year. There were 341,200 domestic subscribers at August 31, 1999. "The introduction of digital rate plans and enhanced services Enhanced service is service offered over commercial carrier transmission facilities used in interstate communications, that employs computer processing applications that act on the format, content, code, protocol, or similar aspects of the subscriber's transmitted information; in our domestic markets took hold during the first quarter," said Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. J. Small, president and chief executive officer. "The majority of new customers are choosing these plans and services with their larger number of package minutes." The Company continued to benefit from increases 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. traffic generated by the single rate plans offered by the large 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. companies. Domestic roaming revenue was $28.0 million during the current quarter, versus $23.7 million in the previous quarter and $17.3 million in the same quarter last year. Wireless subscribers in Puerto Rico increased by 69% to 145,100 from the previous year. Average usage per wireless customer increased to 468 minutes per month during the quarter versus 434 minutes the same quarter last year. Monthly revenue per customer was unchanged at $88 for the current quarter and the same quarter last year. "Centennial de Puerto Rico has targeted high end customers as its key market in both the wireless and wireline businesses," said Small. "Despite the introduction of new competitors, we have been very successful in attracting and keeping these customers. Our one hundred percent digital, island wide network lets us provide the services and packages on minutes that this group wants." Centennial de Puerto Rico increased wireline revenue by 175% to $7.9 million from the same quarter last year. The acquisition of Integrated Systems and Spiderlink Puerto Rico 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 Services during the quarter enhances Centennial de Puerto Rico's strengths as an integrated communications service provider A Communications Service Provider or CSP is a company that transports information electronically. The term encompasses public and private companies in the wireline, wireless, Internet, cable, satellite, and managed services businesses. . Integrated Systems provides network design and integration, systems consulting and software design development to businesses in Puerto Rico. Spiderlink specializes in complete Internet solutions for business, such as e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. , corporate e-mail, web site development and LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. to Internet gateways (1) See cable/DSL gateway. (2) A router or server that converts IP packets to IPX, AppleTalk or some other non-IP format and vice versa. It is used to connect non-IP networks to the Internet. . Revenue from the Company's Puerto Rico wireless and wireline businesses for the quarter ended August 31, 1999 was $44.8 million, an increase of 90% from the $23.5 million in the same quarter the prior year. EBITDA for the quarter was $19.2 million, an increase of 101% from the $9.5 million in the same quarter of the previous year. Revenue from Centennial's domestic business was $72.5 million for the quarter ended August 31, 1999, an increase of 35% from the $53.9 million in the same quarter of the prior year. EBITDA for the quarter was $38.7 million, an increase of 33% from the $29.1 million in the same quarter of the previous year. Total Company revenues for the quarter increased 51% to $117.3 million from $77.4 million for the same quarter in the prior year. Consolidated EBITDA for the quarter was $57.9 million, an increase of 50% from the $38.6 million for the same quarter in the previous year. Consolidated income applicable to common shares for the quarter was $5.7 million versus $1.5 million for the same quarter in the prior year. Centennial is one of the largest independent wireless telecommunications service providers A Telecommunications Service Provider or TSP is a type of Communications Service Provider that has traditionally provided telephone and similar services. This category includes ILECs, CLECs, and mobile wireless companies. 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. and Puerto Rico with approximately 10.8 million Net Pops. Centennial's domestic cellular operation has 5.8 million Net Pops. Centennial de Puerto Rico is a fully integrated provider of communications services in Puerto Rico, utilizing a 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. license that covers 3.8 million Pops in Puerto Rico and the U.S. Virgin Islands, and a CLEC (Competitive Local Exchange Carrier) An organization offering local telephone service that is not one of the traditional telephone companies. The Telecommunications Act of 1996 allowed competition to the incumbent telcos (ILECs), enabling new companies (CLECs) license to operate throughout Puerto Rico. In addition, the Company owns minority shares representing approximately 1.2 million Net Pops in certain other cellular operations controlled and managed by other cellular operators. Welsh, Carson Carson, city (1990 pop. 83,995), Los Angeles co., S Calif., an industrial and residential suburb of Los Angeles; inc. 1968. Oil refining is the major industry; fabricated metals, paper, and other products are manufactured. The California State Univ. Dominguez Hills is there. , Anderson Anderson, river, Canada Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic & Stowe (WCAS WCAS Weinberg College of Arts and Sciences WCAS Warfighter Communication Assessment System (US DoD) ) and an affiliate of The Blackstone Group Blackstone Group L.P. (NYSE: BX) is a prominent private equity and investment management firm founded in 1985 by Peter G. Peterson and Stephen A. Schwarzman. The company is based in New York City, in River House on Park Avenue at Fifty-first Street, with offices in Atlanta, are controlling shareholders of Centennial. WCAS is a private investment firm based in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and founded in 1979. WCAS currently manages over $8 billion in private equity capital and focuses primarily on the information services See Information Systems. , telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and healthcare industries. The Blackstone Group is a New York based private investment bank whose current corporate investment vehicle, Blackstone Capital Partners III Merchant Banking Fund LP, has approximately $3.8 billion in committed capital.
CENTENNIAL CELLULAR CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except per share data)
Three Months Ended August 31,
-----------------------------
1999 1998
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REVENUE:
Service revenue - Domestic $ 69,409 $ 52,964
Service revenue - Puerto Rico 43,546 23,227
Equipment sales - Domestic 3,110 938
Equipment sales - Puerto Rico 1,207 317
-------- --------
117,272 77,446
COSTS AND EXPENSES:
Cost of equipment sold - Domestic 5,555 3,881
Cost of equipment sold - Puerto Rico 2,044 652
Cost of services - Domestic 7,219 6,104
Cost of services - Puerto Rico 8,486 4,278
Sales and marketing - Domestic 10,280 6,048
Sales and marketing - Puerto Rico 7,494 4,983
General and administrative - Domestic 10,715 8,757
General and administrative - Puerto Rico 7,553 4,108
Depreciation and amortization - Domestic(1) 7,973 20,755
Depreciation and amortization - Puerto Rico 11,011 11,049
------- -------
78,330 70,615
------- -------
OPERATING INCOME 38,942 6,831
------- -------
INCOME FROM EQUITY INVESTMENTS 3,484 3,649
(LOSS) GAIN ON DISPOSITION OF ASSETS (2) 9,556
INTEREST EXPENSE - NET (35,934) (11,131)
------- -------
INCOME BEFORE INCOME TAX EXPENSE
AND MINORITY INTEREST 6,490 8,905
INCOME TAX EXPENSE (856) (3,008)
------- -------
INCOME BEFORE MINORITY INTEREST 5,634 5,897
MINORITY INTEREST IN LOSS
(INCOME) OF SUBSIDIARIES 45 (242)
------- -------
NET INCOME 5,679 5,655
DIVIDEND REQUIREMENT ON PREFERRED STOCK -- (4,113)
------- -------
INCOME APPLICABLE TO COMMON SHARES $ 5,679 $ 1,542
======= =======
EARNINGS PER COMMON SHARE:
BASIC $ 0.18 $ 0.03
======= =======
DILUTED $ 0.18 $ 0.03
======= =======
(1) Effective March 1, 1999, Centennial prospectively changed its
amortization period for cellular telephone licenses from ten
years to forty years to better reflect the period over which the
economic benefits of the cellular licenses are expected to be
realized. The Company also prospectively changed its amortization
period for the difference between the cost of its equity
investments and the underlying book value from ten years to forty
years to better reflect the period over which the economic
benefits of the equity investments are expected to be realized.
CENTENNIAL CELLULAR CORP.
STATISTICS
August 31, 1999
($000's, except per subscriber data)
For the Quarter Ended
8/31/99 8/31/98
------- -------
DOMESTIC
--------
Subscribers 341,200 268,200
Net Gain - Subscribers 20,600 15,500
Revenue per Average Customer $73 $68
Roaming Revenue $28,018 $17,317
Penetration 5.8% 4.9%
Monthly Churn 1.9% 1.8%
Monthly MOU's per Customer 110 111
Cost to Acquire per Activation $291 $290
Capital Additions $9,024 $5,573
PUERTO RICO
-----------
Wireless Revenue $36,883 $20,685
Wireline Revenue $7,870 $2,859
Wireless Subscribers 145,100 85,900
Net Gain - Wireless Subscribers 11,600 16,400
Revenue per Average Wireless Customer $88 $88
Penetration 3.8% 2.4%
Monthly Churn 3.7% 3.7%
Monthly MOU's per Wireless Customer 468 434
Capital Additions $23,334 $11,229
Fiber Route Miles 341 272
REVENUES
--------
Consolidated $117,272 $77,446
Domestic $72,519 $53,902
Puerto Rico $44,753 $23,544
EBITDA
------
Consolidated $57,926 $38,635
Domestic $38,750 $29,112
Puerto Rico $19,176 $9,523
LIQUIDITY
---------
Total Debt Less Cash Equivalents $1,392,000 $471,000
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