Centennial Communications Corp. Reports Record Fiscal 2001 Year Results.Business & High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Editors WALL, N.J.--(BUSINESS WIRE)--July 25, 2001 (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]. ) 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. today announced record revenue, 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 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. results for the year ended May 31, 2001. Total Company revenues increased 18 percent to $644 million from $544 million for the prior fiscal year. Earnings before gains and losses on disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of assets, interest, taxes, depreciation, and amortization (EBITDA) were $255 million, a 7 percent increase from the prior year. The Company's wireless subscribers at May 31, 2001 were 763,100 as compared to 626,800 at May 31, 2000, an increase of 136,300 subscribers or 22 percent. "During the year we established the dominant strategic position among operators in the vibrant Caribbean telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. market," 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 now have the widest wireless coverage and the most extensive fiber optic optic /op·tic/ (op´tik) ocular (1). op·tic or op·ti·cal adj. 1. Of or relating to the eye or vision. 2. network in the region. Also, we continued our rapid conversion to digital technology in the U.S., with over 70% of our 500,000 U.S. wireless customers using digital phones by year end." During the year, Centennial reported several strategic accomplishments. The Company:
- Launched wireless service in the Dominican Republic in October
2000 with a CDMA network that now provides service to 75% of the
country's population, began construction of a CDMA wireless
network in Jamaica and launched service in the USVI in June 2001.
Within its 15 million POP licensed serving area, Centennial now
has the most expansive wireless coverage in the Caribbean.
- Continued rapid conversion from analog to TDMA digital technology
in our U.S. wireless operations. The efficiency gains from this
conversion allowed dramatically improved pricing for both our
retail customers and roaming partners.
- Acquired undersea fiber optic capacity in the Caribbean,
culminating with a multi-year capacity purchase agreement with
Global Crossing. Combined with our terrestrial fiber, we have
assembled the most extensive fiber optic network in the Caribbean.
- Acquired two cable television companies that pass over 300,000
homes in Puerto Rico with a broadband network.
- Realized a pre-tax gain of $369.2 million and after tax proceeds
of approximately $400 million from the sale of non-strategic
assets in the U.S. wireless operations.
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: net income for the year ended May 31, 2001 was $182.9 million, compared to the consolidated net income for the year ended May 31, 2000 of $16.7 million. Revenue from the Company's Caribbean operations for the year ended May 31, 2001 was $279 million, an increase of $80.2 million above the $198.8 million for the year ended May 31, 2000. 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). revenue before inter-company eliminations was $89.1 million in fiscal 2001. Fiscal year EBITDA for Centennial's Caribbean operations increased 19 percent to $102.8 million from the same period last year. Wireless subscribers of the Company's Caribbean operation reached 263,000 at May 31, 2001 from 181,500 a year earlier. 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. operation began to contribute to Caribbean wireless subscriber growth in the second half of the year. Revenue from Centennial's U.S. wireless business was $364.9 million for the year ended May 31, 2001, an increase of $20 million or 6 percent over revenue of $344.9 million for the year ended May 31, 2000. EBITDA for the year ended May 31, 2001 in Centennial's U.S. wireless business was $152.3 million, an increase of $0.6 million or 0.4 percent above the year ended May 31, 2000. U.S. wireless subscribers increased by 54,800 to 500,100 subscribers at May 31, 2001. Internal growth, driven by new digital service offerings, contributed 67,800 U.S. subscriber additions, while the net effect of markets acquired and divested reduced subscribers by 13,000. 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 ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 17.5 million Net Pops and 763,100 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, 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 Welsh most commonly refers to:
Places , 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 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 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 industry, including potential overbuilding by personal communications service
CENTENNIAL COMMUNICATIONS CORP.
STATISTICS
MAY 31, 2001
($000's, except per subscriber data)
Three Months Fiscal Year
Ended Ended
------------------- ------------------
May-01 May-00 May-01 May-00
-------- -------- ------- -------
CARIBBEAN
Wireless Subscribers 263,000 181,500 263,000 181,500
Net Gain - Wireless
Subscribers 31,100 12,500 81,500 48,000
Dial-Up Internet
Subscribers 21,780 6,782 21,780 6,782
Revenue per Average Wireless
Customer (1) $68 $83 $76 $86
Penetration - Total
Wireless 2.1% 4.6% 2.1% 4.6%
Monthly Churn - Total
Wireless 2.5% 3.8% 2.5% 3.8%
Monthly MOU's per Wireless
Customer 466 515 486 489
Capital Expenditures $50,727 $33,178 $179,460 $103,580
Fiber Route Miles 1,137 482 1,137 482
Switched Access Lines 22,474 16,112 22,474 16,112
Dedicated Access Line
Equivalents 110,471 32,159 110,471 32,159
US WIRELESS
Subscribers 500,100 445,300 500,100 445,300
Net Gain - Subscribers 14,200 28,800 54,800 124,700
Revenue per Average
Customer (2) $58 $70 $64 $76
Roaming Revenue $21,788 $29,386 $109,487 $113,291
Penetration 8.4% 7.2% 8.4% 7.2%
Monthly Churn 2.1% 1.9% 2.2% 1.9%
Monthly MOU's per
Customer 157 127 144 119
Cost to Acquire $364 $272 $304 $273
Capital Expenditures $8,886 $8,041 $45,518 $45,532
REVENUES (3)
Caribbean - Wireless $52,088 $43,580 $196,693 $162,535
Caribbean - Broadband $27,955 $11,125 $89,068 $43,878
Caribbean - Intercompany ($1,771) ($1,994) ($6,763) ($7,634)
Total Caribbean $78,272 $52,711 $278,998 $198,779
US Wireless $85,133 $90,749 $364,894 $344,946
Consolidated $163,405 $143,460 $643,892 $543,725
EBITDA
Caribbean - Wireless $23,790 $22,594 $79,044 $76,555
Caribbean - Broadband $5,926 $2,326 $23,757 $9,640
Total Caribbean $29,716 $24,920 $102,801 $86,195
US Wireless $32,202 $41,640 $152,307 $151,664
Consolidated $61,918 $66,560 $255,108 $237,859
Net Debt
Total Debt Less Cash and
Short-term Investments $1,668,900 $1,552,000 $1,668,900 $1,552,000
(1) Revenue per Average Wireless Customer was recomputed to reflect
reclassification of incollect cost from revenue to expense. The
reclassification caused an increase in Caribbean revenue per
average customer for each of the three months ended May 31, 2001
and May 31, 2000 of $1. The reclassification caused an increase in
Caribbean revenue per average customer for each of the twelve
months ended May 31, 2001 and May 31, 2000 of $1.
(2) Revenue per Average Customer was recomputed to reflect
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 May 31, 2001 and May
31, 2000 of $6 and $8, respectively. The reclassification caused
an increase in US Wireless revenue per average customer for the
twelve months ended May 31, 2001 and May 31, 2000 of $6 and $9,
respectively.
(3) Incollect cost was reclassified from revenue to cost of services.
The amounts reclassified for the three months ended May 31, 2001
and 2000 were $8,826 and $10,588, respectively. The amounts
reclassified for the twelve months ended May 31, 2001 and 2000
were $41,376 and $42,431, respectively.
CENTENNIAL COMMUNICATIONS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except per share data)
Three Months Twelve Months
Ended Ended
--------------------- --------------------
May 31, May 31, May 31, May 31,
2001 2000 2001 2000
--------- --------- --------- ---------
REVENUE: (2)
Service revenue $ 156,275 $ 137,267 $ 616,614 $ 522,275
Equipment sales 7,130 6,193 27,278 21,450
--------- --------- --------- ---------
163,405 143,460 643,892 543,725
--------- --------- --------- ---------
COSTS AND EXPENSES: (1) (2)
Cost of equipment sold 13,094 7,990 48,913 33,538
Cost of services 27,757 26,189 131,058 104,438
Sales and marketing 26,021 18,665 94,364 76,800
General and
administrative 34,615 24,056 114,449 91,090
Depreciation and
amortization 34,026 22,301 114,644 82,624
Loss (Gain) on
disposition of
assets 527 21 (369,181) 72
--------- --------- --------- ---------
136,040 99,222 134,247 388,562
--------- --------- --------- ---------
OPERATING INCOME 27,365 44,238 509,645 155,163
--------- --------- --------- ---------
(LOSS) INCOME FROM EQUITY
INVESTMENTS (49) 5,493 8,033 16,500
INTEREST EXPENSE - NET (36,259) (39,147) (156,579) (149,494)
OTHER (116) - 68 -
--------- --------- --------- ---------
(LOSS) INCOME BEFORE
INCOME TAX EXPENSE
AND MINORITY
INTEREST (9,059) 10,584 361,167 22,169
INCOME TAX EXPENSE (11,339) (3,382) (185,692) (5,568)
--------- --------- --------- ---------
(LOSS) INCOME BEFORE
MINORITY
INTEREST (20,398) 7,202 175,475 16,601
MINORITY INTEREST IN
LOSS (INCOME) OF
SUBSIDIARIES 4,878 (10) 11,161 76
--------- --------- --------- ---------
(LOSS) INCOME BEFORE
CUMULATIVE EFFECT
OF CHANGE IN ACCOUNTING
PRINCIPLE (15,520) 7,192 186,636 16,677
CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE,
NET OF INCOME TAXES
OF ($2,271) - - (3,719) -
--------- --------- --------- ---------
NET (LOSS) INCOME $ (15,520) $ 7,192 $ 182,917 $ 16,677
========= ========= ========= =========
EARNINGS (LOSS) PER COMMON
SHARE:
BASIC:
(LOSS) INCOME BEFORE
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE $ (0.16) $ 0.08 $ 1.97 $ 0.18
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE $ - $ - $ (0.04) $ -
--------- --------- --------- ---------
NET (LOSS) INCOME $(0.16) $ 0.08 $ 1.93 $ 0.18
========= ========= ========= =========
DILUTED:
(LOSS) INCOME BEFORE
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE $ (0.16) $ 0.07 $ 1.93 $ 0.17
CUMULATIVE EFFECT
OF CHANGE IN ACCOUNTING
PRINCIPLE $ - $ - $ (0.04) $ -
--------- --------- --------- ---------
NET (LOSS) INCOME $ (0.16) $ 0.07 $ 1.89 $ 0.17
========= ========= ========= =========
(1)Certain prior period balances have been reclassified to conform
with the current period presentation.
(2) Incollect cost was reclassified from revenue to cost of services.
The amounts reclassified for the three months ended May 31, 2001
and 2000 were $8,826 and $10,588, respectively. The amounts
reclassified for the twelve months ended May 31, 2001 and 2000
were $41,376 and $42,431, respectively.
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