Centennial Communications Corp. Announces First Quarter Results.Business Editors WALL, N.J.--(BUSINESS WIRE)--Sept. 20, 2001 Centennial Communications Centennial Communications (NASDAQ: CYCL) and its subsidiaries (Centennial Wireless (U.S.), Centennial Dominicana and Centennial de Puerto Rico) provide wireless and broadband telecommunications services to wireless telephone subscribers in the United States, Puerto Rico, the Corp. (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]. ) today announced results for the quarter ended August 31, 2001. Consolidated revenues grew 10% from the same quarter last year to $174.2 million, and earnings before interest, taxes, depreciation, amortization and gain on disposition of assets ("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 ") decreased 8% from the same quarter last year to $62.9 million. Basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share for the first quarter was $0.09. The Company's wireless subscribers at August 31, 2001 were 803,200, compared to 664,000 on the same date last year, an increase of 21%. Caribbean Wireless subscribers increased 37,600 during the quarter compared to an increase of 15,700 during the same quarter last year. U.S. Wireless subscribers increased by 2,500 during the quarter. Caribbean Broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). switched access lines reached 24,700 and dedicated access line equivalents were 143,800 at quarter end, up 45% and 283%, respectively from the same quarter last year. "During the quarter we began harvesting the fruits of our investments in new wireless licenses, digital technology and fiber optic capacity over the last two years," 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. "We also increased focus on our most profitable customers and are pleased with our sequential revenue and EBITDA growth." For the quarter, U.S. Wireless revenues were $90.9 million and EBITDA was $38.2 million. EBITDA declined by 17% from the prior year due to the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of the Southwest cluster in November November: see month. 2000 and a 34% reduction 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. rates. Over 70% of our U.S. Wireless subscribers now use a digital phone, which has facilitated a 27% increase in average minutes of use per customer over the last year. Also for the quarter, total Caribbean revenues were $83.2 million and EBITDA was $24.6 million, up 41% and 10%, respectively from the same quarter last year. Caribbean Broadband revenues for the quarter reached $31.9 million from $14.7 million in the same quarter last year, an increase of 118%. 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 the Caribbean with approximately 17.5 million Net Pops and 803,200 wireless subscribers. Centennial's U.S. operations have approximately 6.0 million Net Pops in small cities and rural areas. Centennial's Caribbean integrated communications operation owns and operates wireless licenses for 11.4 million Net Pops in 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. , the Dominican Republic Dominican Republic (dəmĭn`ĭkən), republic (2005 est. pop. 8,950,000), 18,700 sq mi (48,442 sq km), West Indies, on the eastern two thirds of the island of Hispaniola. The capital and largest city is Santo Domingo. , Jamaica Jamaica (jəmā`kə), independent state within the Commonwealth (2005 est. pop. 2,732,000), 4,232 sq mi (10,962 sq km), coextensive with the island of Jamaica, West Indies, S of Cuba and W of Haiti. and the U.S. Virgin Islands, and provides voice, data, video and 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 on broadband networks  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. in the region. 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 Stowe (stō), resort town (1990 pop. 2,450), Lamoille co., N central Vt.; settled 1794, inc. 1896. It is surrounded by mountains, including Mt. Mansfield, Vermont's highest. 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. For more information regarding Centennial, please visit our website at www.centennialcom.com. Cautionary statement for purposes of the "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provision 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: Information in this release that involves Centennial's expectations, beliefs, hopes, plans, projections, estimates, intentions or strategies regarding the future 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 forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the competitive nature of the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry, including continued overbuilding by personal communications service In international relations, a weak state dominated by or under the jurisdiction of a more powerful state but not formally annexed by it. Examples include American Samoa (U.S.) and Greenland (Denmark). on roaming agreements for a material portion of our U.S. Wireless revenues and the continued decline in roaming rates and potential reduction in roaming minutes of use; changes in the nature of telecommunications regulation; the impact of technological change and other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission. All forward-looking statements included in this release are based upon information available to Centennial as of the date of the release, and we assume no obligation to update or revise any such forward-looking statements.
CENTENNIAL COMMUNICATIONS CORP.
STATISTICS
AUGUST 31, 2001
($000's, except per subscriber data)
---------------------
---------------------
Three Months Ended
Aug-01 Aug-00
---------------------
---------------------
CARIBBEAN
Wireless Subscribers 300,600 197,200
Net Gain - Wireless
Subscribers 37,600 15,700
Dial-Up Internet
Subscribers 21,826 16,319
Revenue per Average
Wireless Customer (1) $63 $81
Penetration - Wireless 1.9% 5.0%
Monthly Prepaid & Postpaid
Churn - Wireless (2) 3.7% 2.9%
Monthly MOU's per Wireless Customer 479 520
Capital Expenditures $71,835 $50,181
Fiber Route Miles 1,215 517
Switched Access Lines 24,743 17,077
Dedicated Access Line Equivalents 143,751 37,487
US WIRELESS
Subscribers 502,600 466,800
Net Gain - Subscribers 2,500 21,500
Revenue per Average Customer (3) $60 $72
Roaming Revenue $25,958 $33,348
Penetration 8.4% 7.3%
Monthly Prepaid & Postpaid Churn (2) 2.7% 2.7%
Monthly MOU's per Customer 169 133
Cost to Acquire $376 $295
Capital Expenditures $11,375 $13,106
REVENUES (4)
Caribbean - Wireless $53,094 $46,166
Caribbean - Broadband $31,921 $14,659
Caribbean - Intercompany ($1,790) ($1,597)
Total Caribbean $83,225 $59,228
US Wireless $90,939 $98,465
Consolidated $174,164 $157,693
EBITDA
Caribbean - Wireless $17,991 $18,950
Caribbean - Broadband $6,644 $3,538
Total Caribbean $24,635 $22,488
US Wireless $38,237 $45,878
Consolidated $62,872 $68,366
NET DEBT
Total Debt Less Cash
and Cash Equivalents $1,765,000 $1,615,000
(1) Revenue per Average Wireless Customer was recomputed to
reflect the reclassification of incollect cost from revenue to
expense. The reclassification caused an increase in Caribbean
revenue per average customer for the three months ended August
31, 2000 of $1.
(2) Previously postpaid churn had been presented; all prior period
amounts have been restated.
(3) Revenue per Average Customer was recomputed to reflect the
reclassification of incollect cost from revenue to expense.
The reclassification caused an increase in US Wireless revenue
per average customer for the three months ended August 31,
2000 of $9.
(4) Incollect cost was reclassified from revenue to cost of
services. The amount reclassified for the three months ended
August 31, 2000 was $12,449.
CENTENNIAL COMMUNICATIONS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except per share data)
Three Months Ended
---------------------------
August 31, August 31,
2001 2000
------------ -----------
REVENUE: (1)
Service revenue $ 167,949 $ 151,262
Equipment sales 6,215 6,431
------------ -----------
174,164 157,693
------------ -----------
COSTS AND EXPENSES: (1)
Cost of equipment sold 12,857 9,706
Cost of services 40,410 33,221
Sales and marketing 25,898 21,820
General and administrative 32,127 24,580
Depreciation and amortization 34,278 22,546
Gain on disposition of assets - (32,135)
------------ -----------
145,570 79,738
------------ -----------
OPERATING INCOME 28,594 77,955
------------ -----------
INCOME FROM EQUITY INVESTMENTS 145 5,315
INTEREST EXPENSE - NET (37,928) (41,584)
OTHER 73 -
------------ -----------
(LOSS) INCOME BEFORE
INCOME TAX EXPENSE
AND MINORITY INTEREST (9,116) 41,686
INCOME TAX EXPENSE (3,670) (18,678)
------------ -----------
(LOSS) INCOME BEFORE
MINORITY INTEREST (12,786) 23,008
MINORITY INTEREST IN
LOSS OF SUBSIDIARIES 4,070 843
------------ -----------
(LOSS) INCOME BEFORE
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE (8,716) 23,851
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE, NET OF
INCOME TAXES OF ($2,271) (2) - (3,719)
------------ -----------
NET (LOSS) INCOME $ (8,716) $ 20,132
============ ===========
EARNINGS (LOSS) PER COMMON SHARE:
BASIC AND DILUTED:
(LOSS) INCOME BEFORE
CUMULATIVE EFFECT
OF CHANGE IN ACCOUNTING
PRINCIPLE $ (0.09) $ 0.25
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE (2) - (0.04)
------------ -----------
NET (LOSS) INCOME $ (0.09) $ 0.21
============ ===========
(1) Revenue and Cost of services were restated to reflect the
reclassification of incollect cost from revenue to expense.
The amount reclassified for the three months ended August 31,
2000 was $12,449.
(2) Effective June 1, 2000, the Company changed its method of
accounting for certain customer activation fees upon adoption
of SAB No. 101. The cumulative effect of this accounting
change resulted in a one-time non-cash charge of $3,719, net
of income taxes of $2,271, or $0.04 per share.
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