Horizon PCS Announces Second Quarter and Six-Month Results.CHILLICOTHE, Ohio Chillicothe is a city in the U.S. state of Ohio and the county seat of Ross CountyGR6. The municipality is located in southern Ohio along the Scioto River. The name comes from the Shawnee name Chalahgawtha, meaning "principal town. -- Horizon 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. , Inc., 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 announced financial results for the second quarter and six months ended June June: see month. 30, 2004. Highlights for the quarter included:
----------------------------------------------------------------------
Second Quarter Highlights
3 Months Ended 6 Months Ended
June 30, June 30,
------------------- -------------------
(in $000's) 2004 2003 2004 2003
-------- --------- -------- ---------
Adjusted EBITDA $ 7,791 ($12,360) $ 10,434 ($24,313)
Gross PCS Subscribers Adds 16,800 42,800 40,400 94,100
Net PCS Subscriber Adds (6,000) 15,100 (9,700) 39,100
PCS Churn excluding 30 days 2.6% 2.7% 2.8% 2.8%
Ending PCS Subscribers 190,800 310,000 190,800 310,000
PCS ARPU $ 76 $ 68 $ 73 $ 68
Results Net of the NTELOS Markets(1)
3 Months Ended 6 Months Ended
June 30, June 30,
--------------------- -------------------
2004 2004
--------------------- -------------------
Gross PCS Subscriber Adds 12,100 27,800
Net PCS Subscriber Adds (4,400) (7,300)
PCS Churn excluding 30 days 2.7% 2.8%
----------------------------------------------------------------------
(1) On June 15, 2004, Horizon completed its settlement agreements
with Sprint and exited the markets in Virginia and West Virginia
which were previously operated under a Network Services Agreement
with NTELOS, Inc. The statistics shown in the "Net of NTELOS"
columns above have been adjusted to remove the results of
operations from those markets. All of the other financial results
and operating statistics cited in this press release include
Horizon's financial and operating results in the NTELOS markets
through June 15, 2004, and thus may not be indicative of Horizon's
financial and operating results for future periods.
--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 was $7.8 million and $10.4 million for the three and six months ended June 30, 2004 respectively, including $(.8) million and $(3.2) million negative EBITDA for the three and six months ended June 30, 2004 from the NTELOS NTELOS (NASDAQ: NTLS) is a telecommunications company based in Waynesboro, Virginia. NTELOS is a provider of PCS services to customers as well as a provider of local telephone service and Internet access to customers in Virginia and West Virginia. operations. --For the three and six months ended June 30, 2004, 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. revenue from the Company's portion of the Sprint PCS network was $18.3 million and $34.6 million, respectively. For the quarter ended June 30, 2004, roaming revenue consisted of $14.1 million of Sprint revenue, $1.9 million of wholesale revenue, and $2.3 million of other revenue. Roaming revenue for the six months ended June 30, 2004, consisted of $27.0 million of Sprint revenue, $3.3 million of wholesale revenue, and $4.3 million of other revenue. --As of June 30, 2004, 80% of the Company's 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. base was prime credit class and the remaining 20% was sub-prime credit class. Of the sub-prime base, 63% provided a deposit. Of the total gross adds in the second quarter of 2004, 82% were prime credit class subscribers. As of June 30, 2004, 69% of the Company's subscriber base was on contracts. --Cost per gross add (CPGA (Ceramic PGA) See PGA. CPGA - Ceramic Pin Grid Array ) was $391 for the second quarter and $356 for the year to date. At the end of the second quarter, Horizon had cash, cash equivalents and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $66.0 million, which excludes $12.0 million in restricted cash and funds held in escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. . Capital expenditures were approximately $800,000 for the second quarter and $1.3 million for the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. period. As recently reported, on July July: see month. 19, 2004, Horizon PCS Escrow Company, a recently formed, wholly owned, indirect subsidiary of Horizon PCS, Inc., completed an offering of $125 million aggregate principal amount of 11-3/8% senior notes due 2012. Upon confirmation and effectiveness of Horizon PCS, Inc.'s plan of reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. under Chapter 11 of the Bankruptcy Code Bankruptcy Code may refer to:
The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the offering will be released from escrow, and Horizon PCS, Inc. will then be an obligor The individual who owes another person a certain debt or duty. The term obligor is often used interchangeably with debtor. obligor (ah-bluh-gore) n. under the notes. Under the plan of reorganization, Horizon expects to use the net proceeds from the sale of the notes to repay in full the obligations under the senior secured credit facility. Horizon has filed a disclosure statement with the bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. which outlines its plan of reorganization. Bill McKell, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Horizon PCS, said, "We are pleased with the actions taken and the results achieved in the second quarter of 2004. We completed our refinancing Refinancing An extension and/or increase in amount of existing debt. , completed the sale of a portion of our markets to Sprint, and settled our litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. with Sprint. We are looking forward to emerging from bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most in September September: see month. and focusing on our future operations." About Horizon PCS Horizon PCS is a PCS Affiliate of Sprint, with the exclusive right to market Sprint wireless mobility communications network The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. products and services to a total population of approximately 7.5 million in portions of 11 contiguous Adjacent or touching. Contrast with fragmentation. See contiguous file. states. Its markets are located between Sprint's Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , 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 Knoxville Knoxville, city (1990 pop. 165,121), seat of Knox co., E Tenn., on the Tennessee River; inc. 1876. A port of entry, it is a trade and shipping center for a farm, bituminous-coal, and marble area. markets and connect or are adjacent to 12 major Sprint markets. As a PCS Affiliate of Sprint, Horizon markets wireless mobile communications network products and services under the Sprint and Sprint PCS brand names. 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 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. . For more information, visit www.sprint.com. EBITDA and Other Information Horizon PCS provides certain financial measures that are calculated 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 accounting principles generally accepted in the United States ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") and adjustments to GAAP ("non-GAAP") to assess the Company's financial performance. In addition, the Company uses certain non-financial terms, such as churn churn: see butter. , CPGA, 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. and CCPU CCPU Continuous Computing Corporation (stock symbol) CCPU Cash Cost Per User (Sprint) CCPU China Criminal Police University CCPU Cryptographic Central Processing Unit , which are 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 the 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. industry and are not measures of financial performance under GAAP. A non-GAAP financial measure is defined as a numerical numerical expressed in numbers, i.e. Arabic numerals of 0 to 9 inclusive. numerical nomenclature a numerical code is used to indicate the words, or other alphabetical signals, intended. measure of financial performance that (a) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the comparable measure calculated and presented in accordance with GAAP in the statement of income or statement of cash flow; or (b) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the comparable measure so calculated and presented. The non-GAAP financial measures reflect standard measures of liquidity, profitability or performance and the non-financial metrics reflect industry conventions, both of which are commonly used by the investment community. These terms as used by the Company may not be comparable to the use of these terms by other companies. The non-GAAP financial measures used in this press release are reconciled rec·on·cile v. rec·on·ciled, rec·on·cil·ing, rec·on·ciles v.tr. 1. To reestablish a close relationship between. 2. To settle or resolve. 3. in an attachment See attach a file. to this release, and should be considered in addition to, not as a substitute for, the information prepared in accordance with GAAP. EBITDA is computed as operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. plus depreciation and amortization. Adjusted EBITDA is computed as EBITDA plus non-cash compensation, (gain) loss on sale of property and equipment, restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , and impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of Sprint PCS licenses and property and equipment. This information should not be considered as an alternative to net income, operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. , cash flows from operations, or any other operating or liquidity performance measure prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). by accounting principles generally accepted in the United States. CPGA - Cost per gross add summarizes the average cost to acquire new subscribers during the period. CPGA is the income statement components of selling and marketing and cost of equipment (net of equipment revenue), divided by the total new gross subscribers acquired during the period. CCPU - Cash cost per user is the monthly cash costs to operate the business on a per user basis consisting of cost of service and general and administrative expenses, divided by the weighted average monthly subscribers for the period and divided by the number of months in the period. ARPU - Average revenue per user summarizes the average monthly revenue per customer. ARPU is computed by dividing service revenues and roaming revenues for the period by the weighted average monthly subscribers for the period and divided by the number of months in the period. This press release contains statements about future events and expectations 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. . Any statement in this press release that is not a statement of historical fact may be deemed to be a forward-looking statement, which involves known and unknown risks, uncertainties and other factors which may cause the company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. For example, our expectations about our emergence from Chapter 11 and the use of proceeds from our offering of notes may prove inaccurate due to factors such as the impact of competition, the effects of our bankruptcy and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , risks associated with our relationship with Sprint, the availability of handsets and delays in our network build-out Build-out is an urban planner’s estimate of the amount and location of potential development for an area. Build-out is one step of the land use planning process. Evaluation of potential development impacts begins with a build-out analysis. . For further information on the risks inherent in Horizon PCS' business, see the "Risk Factors" section in the Disclosure Statement which we filed in our Chapter 11 proceeding.
HORIZON PCS, INC.
Consolidated Balance Sheets
(Unaudited)
June 30, December 31,
ASSETS 2004 2003
------------- -------------
Current Assets:
Cash and cash equivalents $ 65,971,795 $ 70,651,046
Restricted cash 12,032,009 12,032,009
Accounts receivable - subscriber 15,758,828 20,985,060
Receivable from affiliate and Parent 84,890 --
Equipment inventory 364,564 594,121
Prepaid expenses and other current
assets 3,027,229 3,519,032
------------- -------------
Total current assets 97,239,315 107,781,268
------------- -------------
Other Assets:
Intangible asset - Sprint PCS licenses,
net of amortization -- --
Debt issuance costs, net of amortization -- --
Deferred activation expense and other
assets 1,908,707 3,955,252
------------- -------------
Total other assets 1,908,707 3,955,252
------------- -------------
Property and Equipment, Net 155,054,282 171,787,783
------------- -------------
Total assets $ 254,202,304 $ 283,524,303
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable $ 14,591,290 $ 11,970,315
Payable to Sprint 7,183,590 14,817,567
Accrued personal property, real estate
and other taxes 1,437,259 732,400
Accrued interest, payroll and other
accrued liabilities 946,484 744,109
Deferred service revenue 4,075,876 6,255,748
Liabilities subject to compromise 626,641,757 672,252,371
------------- -------------
Total current liabilities 654,876,256 706,772,510
------------- -------------
Long-term Liabilities:
Long-term debt, net of discount -- --
Other long-term liabilities 482,888 217,448
Deferred activation revenue 1,707,807 3,748,575
Deferred taxes -- --
------------- -------------
Total long-term liabilities 2,190,695 3,966,023
------------- -------------
Total liabilities 657,066,951 710,738,533
------------- -------------
Commitments and Contingencies
Convertible Preferred Stock 176,487,074 169,785,299
Stockholders' Equity (Deficit):
Preferred stock -- --
Common stock - class A 3 3
Common stock - class B 5,846 5,846
Treasury stock - class B (111,061) (111,061)
Accumulated other comprehensive income
(loss) -- --
Additional paid-in capital 91,852,141 91,852,141
Deferred stock option compensation (169,411) (266,107)
Retained deficit (670,929,239) (688,480,351)
------------- -------------
Total stockholders' equity
(deficit) (579,351,721) (596,999,529)
------------- -------------
Total liabilities and
stockholders' equity (deficit) $ 254,202,304 $ 283,524,303
============= =============
HORIZON PCS, INC.
Consolidated Statements of Operations
(Unaudited)
For the Three Months Ended For the Six Months Ended
June 30, June 30,
-------------------------- --------------------------
2004 2003 2004 2003
----------- ------------- ----------- -------------
Operating Revenues:
Subscriber
revenues $43,416,326 $47,857,766 $89,074,884 $91,436,720
Roaming
revenues 18,348,878 13,578,695 34,590,474 27,376,568
Equipment
revenues 1,388,729 2,071,360 2,664,094 3,889,456
----------- ----------- ----------- -----------
Total
operating
revenues 63,153,933 63,507,821 126,329,452 122,702,744
----------- ------------- ----------- -------------
Operating Expenses:
Cost of
services
(exclusive of
items below) 40,103,314 46,860,008 83,421,795 90,655,941
Cost of
equipment 1,207,960 5,073,999 2,942,013 10,828,768
Selling and
marketing 6,754,028 12,350,927 14,104,817 24,791,711
General
and
administrative
(exclusive of
items
below) 7,297,739 11,582,872 15,426,528 20,739,060
Non-cash
compensation 48,348 154,910 96,695 309,820
Depreciation
and
amortization 8,151,209 10,291,619 16,340,531 21,152,305
(Gain) Loss on
sale of
property and
equipment (46,090,466) (41,064) (46,090,466) 216,312
Impairment of
Sprint PCS
licenses and
property
and
equipment -- 73,760,278 -- 73,760,278
Restructuring
charges 6,556,506 -- 12,076,907 --
----------- ------------- ----------- -------------
Total
operating
expenses 24,028,638 160,033,549 98,318,820 242,454,195
----------- ------------- ----------- -------------
Operating
Income (loss) 39,125,295 (96,525,728) 28,010,632 (119,751,451)
Interest
income and
other, net 147,149 225,795 295,769 525,907
Interest
expense, net (1,988,366) (17,011,030) (4,053,515) (33,284,472)
----------- ------------- ----------- -------------
Income (loss)
on operations
before income
taxes 37,284,078 (113,310,963) 24,252,886 (152,510,016)
----------- ------------- ----------- -------------
Income tax
benefit -- 6,031,000 -- 6,031,000
----------- ------------- ----------- -------------
Net income
(loss) 37,284,078 (107,279,963) 24,252,886 (146,479,016)
----------- ------------- ----------- -------------
Preferred
stock
dividend (3,392,255) (3,151,448) (6,701,775) (6,220,557)
----------- ------------- ----------- -------------
Net income
(loss)
available to
common
stockholders $33,891,823 $(110,431,411) $17,551,111 $(152,699,573)
=========== ============= =========== =============
Net income (loss) per share:
Basic $0.58 $(1.89) $0.30 $(2.61)
=========== ============= =========== =============
Diluted $0.58 $(1.89) $0.30 $(2.61)
=========== ============= =========== =============
Weighted-average common shares outstanding:
Basic 58,469,900 58,469,861 58,469,900 58,469,900
=========== ============= =========== =============
Diluted 58,469,900 58,469,861 58,469,900 58,469,900
=========== ============= =========== =============
For the Three Months Ended For the Six Months Ended
June 30, June 30,
-------------------------- --------------------------
2004 2003 2004 2003
----------- ------------- ----------- -------------
Net income
(loss) $37,284,078 $(107,279,963) $24,252,886 $(146,479,016)
Other Comprehensive
Income (Loss):
Net
unrealized
gain (loss)
on hedging
activities -- 127,737 -- 461,644
Comprehensive
Income (Loss) $37,284,078 $(107,152,226) $24,252,886 $(146,017,372)
=========== ============= =========== =============
HORIZON PCS, INC.
Consolidated Statements of Cash Flows
(Unaudited)
For the Six Months Ended
June 30,
---------------------------
2004 2003
------------ -------------
Cash Flows from Operating Activities:
Net income (loss) $ 24,252,886 $(146,479,016)
------------ -------------
Adjustments to reconcile net loss of
net cash used in operating activities:
Depreciation and amortization 16,340,531 21,152,305
Impairment of Sprint PCS licenses
and property and equipment -- 73,760,278
Income tax benefit -- (6,031,000)
Non-cash compensation expense 96,695 309,820
Non-cash interest expense -- 16,258,827
Gain on Sprint transaction (46,090,466) --
Bad debt expense 2,375,267 3,586,767
Loss on disposal of property and
equipment -- 216,312
Change in:
Accounts receivable 1,339,967 (6,936,074)
Equipment inventory 229,557 817,326
Prepaid expenses and other 491,803 (1,562,331)
Accounts payable 2,620,975 (6,658,144)
Liabilities subject to compromise (706,344) --
Payable to Sprint (3,361,343) 4,088,607
Accrued liabilities and deferred
service revenue (1,272,638) 12,805,763
Receivable/payable from affiliates
and Parent (84,890) (75,633)
Other assets and liabilities, net 15,329 760,319
------------ -------------
Total adjustments (28,005,557) 112,493,142
------------ -------------
Net cash used in operating
activities (3,752,671) (33,985,874)
------------ -------------
Cash Flows from Investing Activities:
Capital expenditures (1,275,823) (5,649,628)
Proceeds from the sale of property and
equipment 73,072 --
Proceeds from Sprint transaction 33,010,271 --
------------ -------------
Net cash used in investing
activities 31,807,520 (5,649,628)
------------ -------------
Cash Flows from Financing Activities:
Exercise of stock options -- 24
Notes Payable - Borrowings, net of
repayments (32,734,100) --
------------ -------------
Net cash provided by financing
activities (32,734,100) 24
------------ -------------
Net Increase (Decrease) in Cash and Cash
Equivalents (4,679,251) (39,635,478)
Cash and Cash Equivalents, Beginning of
Period 70,651,046 86,137,284
------------ -------------
Cash and Cash Equivalents, End of Period $ 65,971,795 $ 46,501,806
============ =============
HORIZON PCS, INC.
Reconciliation of EBITDA and Other Non-GAAP Financial Measures
(Unaudited)
For the Three Months Ended For the Six Months Ended
June 30, June 30,
-------------------------- -------------------------
2004 2003 2004 2003
----------- ------------- ----------- ------------
EBITDA:
Net income
(loss) $37,284,078 $(107,279,963) $24,252,886 $(146,479,016)
Net interest
expense 1,988,366 17,011,030 4,053,515 33,284,472
Depreciation
and
amortization 8,151,209 10,291,619 16,340,531 21,152,305
(Gain) loss
on sale of
property and
equipment (46,090,466) (41,064) (46,090,466) 216,312
Interest
income and
other net (147,149) (225,795) (295,769) (525,907)
Income tax
expense
(benefit) -- (6,031,000) -- (6,031,000)
Non-cash
compensation
expense 48,348 154,910 96,695 309,820
Impairment of
Sprint PCS
licenses and
property and
equipment -- 73,760,278 -- 73,760,278
Restructuring
charges 6,556,506 -- 12,076,907 --
----------- ------------- ------------ ------------
Adjusted
EBITDA $7,790,892 $(12,359,985) $10,434,299 $(24,312,736)
----------- ------------- ------------ ------------
Provision for
bad debts 841,506 2,163,436 2,375,267 3,586,767
Cash paid for
reorganization
and merger
expenses (6,556,506) -- (12,076,907) --
Non-cash
interest
items -- 8,455,147 -- 16,258,827
Net interest
expense (1,988,366) (17,011,030) (4,053,515) (33,284,472)
Working
capital
changes 1,007,481 (623,381) (431,815) 3,765,740
----------- ------------- ------------ ------------
Net cash
flow from
operating
activities $1,095,007 $(19,375,813) $(3,752,671) $(33,985,874)
=========== ============= ============ ============
Average Revenue per User (ARPU)
Subscriber
revenues $43,416,326 $47,857,766 $89,074,884 $91,436,720
Roaming
revenues 18,348,878 13,578,695 34,590,474 27,376,568
----------- ------------- ------------ ------------
Total
subscriber
revenues $61,765,204 $61,436,461 $123,665,358 $118,813,288
=========== ============= ============ ============
Average
subscribers 271,200 302,000 280,500 289,700
ARPU $76 $68 $73 $68
Cash Cost per User (CCPU)
Cost of
service $40,103,314 $46,860,008 $83,421,795 $90,655,941
General and
adminis-
trative 7,297,739 11,582,872 15,426,528 20,739,060
----------- ------------- ------------ ------------
Total cash
costs $47,401,053 $58,442,880 $98,848,323 $111,395,001
=========== ============= ============ ============
Restructuring
charges 6,556,506 -- 12,076,907 --
----------- ------------- ------------ ------------
Total
cash costs
including
restruc-
turing $53,957,559 $58,442,880 $110,925,230 $111,395,001
=========== ============= ============ ============
Average
subscribers 271,200 302,000 280,500 289,700
CCPU $58 $65 $59 $64
CCPU including
restructuring
charges $66 $65 $66 $64
Cost per Gross Add (CPGA)
Selling and
marketing $6,754,028 $12,350,927 $14,104,817 $24,791,711
Cost of
equipment 1,207,960 5,073,999 2,942,013 10,828,768
Equipment
revenues (1,388,729) (2,071,360) (2,664,094) (3,889,456)
----------- ------------- ------------ ------------
Total cost
of gross
additions $6,573,259 $15,353,566 $14,382,736 $31,731,023
=========== ============= ============ ============
Gross
additions 16,800 42,800 40,400 94,100
CPGA $391 $359 $356 $337
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