T-Mobile USA Reports Record Fourth Quarter and Full Year 2005 Results.BELLEVUE Bellevue (bĕl`vy  ).1 City (1990 pop. 30,982), Sarpy co., E Nebr., a suburb of Omaha, on the Missouri River; inc. 1855. , Wash. -- T-Mobile USA (NYSE NYSE See: New York Stock Exchange :DT): --1.4 million net new customers added in Q4 2005 --4.4 million net new customers in 2005, compared to 4.2 million in 2004 --$1.1 billion in Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. Before Depreciation and Amortization (OIBDA OIBDA Operating Income Before Depreciation & Amortization ) in Q4 2005 --$4.2 billion in OIBDA in 2005, up 67% from 2004 --32% OIBDA margin achieved in 2005 --Nearly 3,500 new cell sites added in 2005 to enhance existing coverage --Geographic coverage increased over 50% primarily through expansion of 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. coverage In the fourth quarter of 2005, T-Mobile USA added 1.39 million net new customers, up from 1.06 million net customers added in the third quarter of 2005 and 1.02 million net added in the fourth quarter of 2004. Postpay customers made up 66% of the fourth quarter customer growth and comprised 85% of T-Mobile USA's total customer base at the end of the year. "A record breaking fourth quarter perfectly capped off another highly successful year for T-Mobile USA," said T-Mobile USA President 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. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Dotson. "During the year we smashed the key 20 million customer milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. , adding an all time high 4.4 million net new customers in 2005. We achieved this strong customer growth while maintaining our disciplined approach to delivering solid operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . 2005 also marked the second year in a row we captured top Overall Customer Satisfaction rankings from J.D. Power and Associates. So however you look at it, 2005 was an outstanding year as record numbers of high quality new customers joined our ranks." Rene RENE Recycling Network Europe RENE Rocket Engine Nozzle Ejector Obermann Obermann was a rank of the German Schutzstaffel which was used between the years 1942 and 1945. Translated as “Senior Member”, the rank of Obermann was exclusive to the Allgemeine-SS and was created as an equivalent to the Waffen-SS , CEO of T-Mobile International and member of the Board of Management of Deutsche Telekom Deutsche Telekom AG (ISIN: DE0005557508, FWB: DTE, NYSE: DT, LSE: DEU, TYO: 9496 ) (abbreviated DTAG) is a telecommunications company headquartered in Bonn, Germany. It is the largest telecommunications company in Germany and in the EU. (NYSE:DT), stated, "T-Mobile USA once again delivered outstanding results and continues to be a top driver of growth for the mobile segment and Deutsche Telekom as a whole. We look forward to further leveraging the global scale and skills of T-Mobile and Deutsche Telekom across both sides of the Atlantic." T-Mobile USA reported OIBDA of $1.11 billion in the fourth quarter of 2005 compared to $1.17 billion in the third quarter of 2005 and $515 million in the fourth quarter of 2004. T-Mobile USA's net income for the fourth quarter of 2005 was $2.99 billion, up from $458 million in the third quarter of 2005 and a net loss of $329 million in the fourth quarter of 2004. Net income in 2005 included a $2.6 billion non-cash income tax benefit related to net 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. carry forwards ("NOLs"). These NOLs represent an asset to the Company to the extent they can be utilized to reduce cash income tax payments expected in the future. 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 guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. requiring evidence supporting the Company's ability to utilize the NOLs, the Company had not previously recognized the NOL-related assets by maintaining a valuation allowance against them. In the fourth quarter of 2005 T-Mobile USA determined that its financial performance trends supported a $2.6 billion reduction in the valuation allowance against its deferred tax assets. T-Mobile USA service revenues, which consist of postpay, prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. ,
roaming and other service revenues, were $3.26 billion in the fourth
quarter of 2005, up from $3.15 billion in the third quarter of 2005 and
$2.75 billion in the fourth quarter of 2004. Other revenues were $213
million in the fourth quarter of 2005, down from $235 million in the
third quarter of 2005 and up from $40 million in the fourth quarter of
2004. Other revenues include Wi-Fi (WIreless-FIdelity) A logo from the Wi-Fi Alliance that certifies network devices comply with the IEEE 802.11 wireless Ethernet standards. In the early 2000s, Wi-Fi/802.11 became widely used (initially 802.11b, then 802. revenues, co-location Placing equipment owned by a customer or competitor in an organization's own facility. Telephone companies often allow co-location in order to provide the best interconnection between devices. rental income Noun 1. rental income - income received from rental propertiesincome - the financial gain (earned or unearned) accruing over a given period of time , and revenues from the usage of our network in 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). , Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). , and 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 by customers of Cingular Wireless LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("Cingular")(see note 1 to the Selected Data below). The sequential One after the other in some consecutive order such as by name or number. decrease in other revenues in the fourth quarter of 2005 reflects the continued migration of Cingular customers to Cingular's own network. Total revenues, including service, equipment, and other revenues were $3.95 billion in the fourth quarter of 2005, up from $3.24 billion in the fourth quarter of 2004. Average Revenue Per User ("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. , "as defined in note 1 to the Selected Data, below) was $52 in the fourth quarter of 2005, down from $53 in the third quarter of 2005 and $55 in the fourth quarter of 2004. The year on year decrease in ARPU was primarily caused by a decrease in prepaid ARPU and the increased percentage of prepaid customers in the customer base in 2005, along with a decline in postpay ARPU. Data services revenue from postpay and prepaid customers continued to grow, reaching a total of $279 million in the fourth quarter of 2005. Data revenues now represent 9.6% of postpay ARPU, or $5.21 per postpay customer, compared to 8.8% in the third quarter of 2005 and 6.6% in the fourth quarter of 2004. Central to the growth in data services revenue was a net increase in postpay converged device A converged device combines the functions of others. Examples
blackberry and T-Mobile Sidekick The first popular popup program for DOS PCs, introduced by Borland in 1984. Sidekick included a calculator, notepad, calendar, phone dialer and ASCII table and popularized the concept of a terminate and stay resident (TSR) utility. devices. Postpay churn churn: see butter. was 2.3% in the fourth quarter of 2005, down from 2.4% in the third quarter of 2005 and 2.6% in fourth quarter 2004. Prepaid churn was 6.6% in the fourth quarter of 2005, which was the same in the third quarter of 2005 and fourth quarter 2004. Blended blend v. blend·ed or blent , blend·ing, blends v.tr. 1. To combine or mix so that the constituent parts are indistinguishable from one another: churn, including both postpay and prepaid customers, was 2.9% in the fourth quarter of 2005, the same as in the third quarter of 2005, and down from 3.1% in the fourth quarter of 2004. The average cost of acquiring a customer, Cost Per Gross Add ("CPGA (Ceramic PGA) See PGA. CPGA - Ceramic Pin Grid Array ", as defined in the note 4 to the Selected Data, below) was $264 in the fourth quarter of 2005, down from $271 in the third quarter of 2005 and $345 in the fourth quarter of 2004. The decrease in CPGA from the fourth quarter of 2004 is primarily due to changes in the postpay and prepaid sales mix sales mix See product mix. and changes in the competitive environment. The average cash cost of serving customers, Cash Cost Per User ("CCPU CCPU Continuous Computing Corporation (stock symbol) CCPU Cash Cost Per User (Sprint) CCPU China Criminal Police University CCPU Cryptographic Central Processing Unit ", as defined in note 3 to the Selected Data, below), was $24.32 per customer per month in the fourth quarter of 2005, down from $24.65 in the third quarter of 2005 and $27.66 in the fourth quarter of 2004 (which included a cumulative non-cash lease charge -- see footnotes). CCPU in the fourth quarter of 2005 was slightly less than the fourth quarter of 2004, excluding the impact of the cumulative lease accounting charge, due to increased economies of scale associated with the larger customer base. Capital expenditures were $807 million in the fourth quarter of 2005, compared with $585 million in the third quarter of 2005 and $422 million in the fourth quarter of 2004. (Capital expenditures in the fourth quarter of 2004 excluded $124 million of expenditures related to the network joint venture with Cingular, which was terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: at the beginning of 2005.) T-Mobile USA added more than 1,000 new cell sites in the fourth quarter of 2005, bringing the total number of cell sites to nearly 33,000. During 2005 T-Mobile USA added almost 3,500 new cell sites, reflecting the continued commitment to network coverage and quality. In 2005 T-Mobile USA also expanded its geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. coverage 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. by over 50% primarily through expanded roaming coverage with new and existing domestic roaming partners. This press release includes non-GAAP financial measures. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Reconciliations from the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below following Selected Data and the financial statements. T-Mobile USA, Inc. ("T-Mobile USA") is the U.S. operation of T-Mobile International AG & Co. KG ("T-Mobile International"), the mobile communications subsidiary of Deutsche Telekom AG ("Deutsche Telekom") (NYSE:DT). In order to provide comparability with the results of other U.S. wireless carriers all financial amounts are in US dollars and are based on accounting principles generally accepted 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. ("GAAP"). T-Mobile USA results are included in the 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: results of Deutsche Telekom, but differ from the information contained herein as Deutsche Telekom reports financial results in accordance with International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). (IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System ).
SELECTED DATA FOR T-MOBILE USA
(`000) YE 05 Q4 05 Q3 05 Q2 05 Q1 05 YE 04 Q4 04
----------------------------------------------------------------------
Covered
population 233,000 233,000 232,000 232,000 229,000 229,000 229,000
----------------------------------------------------------------------
Customers, end
of period 21,690 21,690 20,302 19,243 18,271 17,314 17,314
----------------------------------------------------------------------
Thereof
postpay
customers 18,424 18,424 17,512 16,796 16,115 15,340 15,340
----------------------------------------------------------------------
Thereof
prepaid
customers 3,266 3,266 2,790 2,447 2,156 1,974 1,974
----------------------------------------------------------------------
Net customer
additions 4,376 1,388 1,059 972 957 4,186 1,019
----------------------------------------------------------------------
----------------------------------------------------------------------
Minutes of
use/post pay
customer/
month 963 985 985 960 921 877 907
----------------------------------------------------------------------
Postpay churn 2.3% 2.3% 2.4% 2.3% 2.3% 2.6% 2.6%
----------------------------------------------------------------------
Prepaid churn 6.6% 6.6% 6.6% 6.4% 6.4% 6.3% 6.6%
----------------------------------------------------------------------
Blended churn 2.9% 2.9% 2.9% 2.8% 2.8% 3.0% 3.1%
----------------------------------------------------------------------
($ / month)
----------------------------------------------------------------------
ARPU
(blended)(1) 53 52 53 54 54 55 55
----------------------------------------------------------------------
ARPU (postpay) 55 54 55 55 54 56 56
----------------------------------------------------------------------
ARPU (prepaid) 25 24 24 27 28 28 29
----------------------------------------------------------------------
Cost of serving
(CCPU)(3) 25 24 25 26 26 25 28
----------------------------------------------------------------------
Cost per gross
add (CPGA)(4) 297 264 271 310 357 323 345
----------------------------------------------------------------------
($ million)
----------------------------------------------------------------------
Total revenues 14,806 3,953 3,802 3,614 3,437 11,679 3,238
----------------------------------------------------------------------
Service
revenues(1) 12,308 3,261 3,153 3,040 2,854 10,032 2,748
----------------------------------------------------------------------
OIBDA(2,5) 4,185 1,112 1,166 1,081 826 2,512 515
----------------------------------------------------------------------
OIBDA margin
(8) 32% 32% 34% 33% 27% 25% 19%
----------------------------------------------------------------------
Capital
expenditures
(6) 5,045 807 585 815 2,838 2,138 422
----------------------------------------------------------------------
----------------------------------------------------------------------
Cell sites
on-air (7) 32,861 32,861 31,840 30,876 29,869 29,401 29,401
----------------------------------------------------------------------
Since all companies do not calculate these figures in the same
manner, the information contained in this press release may not be
comparable to similarly titled measures reported by other companies.
(1) Average Revenue Per User ("ARPU") represents the average monthly
service revenue we earn from our customers. ARPU is calculated by
dividing service revenues for the specified period by the average
customers during the period, and further dividing by the number of
months in the period. We believe ARPU provides management and
investors with useful information to evaluate the recurring
revenues generated from our customer base.
Service revenues include postpay, prepaid, and roaming and other
service revenues, and do not include equipment sales and other
revenues. Revenues from our Wi-Fi business, co-location rental
income, and revenues for network usage by Cingular customers who
have not yet transitioned from the former joint venture networks
in California, Nevada, and New York, are therefore not included in
ARPU. The joint venture was terminated at the beginning of 2005.
(2) As a result of financial statement restatements by numerous U.S.
public companies and publication of a letter by the Chief
Accountant of the SEC to the American Institute of Certified
Public Accountants on February 7, 2005, clarifying the
interpretation of existing US GAAP accounting literature
applicable to certain operating leases and leasehold improvements,
T-Mobile USA changed its accounting for operating leases and
recorded a cumulative adjustment representing a net charge to net
income of $143 million in the fourth quarter of 2004, of which $71
million related to the years 2001 through 2003. The net cumulative
adjustment was comprised of a $200 million increase in rent
expense based primarily on rent escalation clauses related to
future renewal periods of cell site leases; an increase of $33
million in the equity loss from the network sharing venture with
Cingular also related to cell site leases; a reduction of $53
million in depreciation expense to adjust the depreciable life of
leasehold improvements; and a reduction of $36 million in the loss
provision related to dissolution of the network sharing joint
venture with Cingular. Financial results for 2004 and prior
periods have not been restated.
The following table provides the impact of the cumulative
adjustment as it relates to the quarterly results in 2004 as if
restated.
($ million) Total Q4 Q3 Q2 Q1
2004 2004 2004 2004 2004
----------------------------------------------------------------------
OIBDA (5) (93.4) (24.2) (23.9) (23.2) (22.1)
----------------------------------------------------------------------
OIBDA margin (8) (0.9%) (0.9%) (0.9%) (0.9%) (1.0%)
----------------------------------------------------------------------
Depreciation (2.0) (.5) (.5) (.5) (.5)
----------------------------------------------------------------------
Equity (loss) (13.6) (3.5) (3.4) (3.4) (3.3)
----------------------------------------------------------------------
Other income/(expense) 36.4 36.4 - - -
----------------------------------------------------------------------
Net income/(loss) (72.6) 8.2 (27.8) (27.1) (25.9)
----------------------------------------------------------------------
($ / month)
----------------------------------------------------------------------
CCPU (3) 1 1 1 1 1
----------------------------------------------------------------------
(3) The average cash cost of serving customers, or Cash Cost Per User
("CCPU") is a non-GAAP financial measure and includes all network
and general and administrative costs as well as the subsidy loss
on equipment (handsets and accessories) sales unrelated to
customer acquisition. This measure is calculated as a per month
average by dividing the total costs for the specified period by
the average total customers during the period and further dividing
by the number of months in the period. We believe that CCPU, which
is a measure of the costs of serving a customer, provides relevant
and useful information to our investors and is used by our
management to evaluate the operating performance of our business.
(4) Cost Per Gross Add ("CPGA") is a non-GAAP financial measure and is
calculated by dividing the costs of acquiring a new customer,
consisting of customer acquisition costs plus the subsidy loss on
equipment (handsets and accessories) sales related to customer
acquisition for the specified period, divided by gross customers
added during the period. We believe that CPGA, which is a measure
of the cost of acquiring a customer, provides relevant and useful
information to our investors and is used by our management to
evaluate the operating performance of our business.
(5) OIBDA is a non-GAAP financial measure, which we define as
operating income before depreciation and amortization. In a
capital-intensive industry such as wireless telecommunications, we
believe OIBDA, as well as the associated percentage margin
calculation, to be meaningful measures of our operating
performance. OIBDA should not be construed as an alternative to
operating income or net income as determined in accordance with
GAAP, as an alternative to cash flows from operating activities as
determined in accordance with GAAP or as a measure of liquidity.
We use OIBDA as an integral part of our planning and internal
financial reporting processes, to evaluate the performance of our
senior management and to compare our performance with that of many
of our competitors. We believe that operating income is the
financial measure calculated and presented in accordance with GAAP
that is the most directly comparable to OIBDA.
(6) 2004 amounts exclude our investment to fund capital expenditures
in the network sharing joint venture with Cingular Wireless LLC
("Cingular"). 2005 amounts include capital expenditures in the
coverage areas previously served by the venture.
(7) 2004 amounts include sites in New York, California and Nevada
previously owned and operated by our network sharing joint
venture.
(8) OIBDA margin is a non-GAAP financial measure, which we define as
OIBDA (as described in note 5 above) divided by total revenues
less equipment sales.
T-MOBILE USA
Condensed Consolidated Balance Sheets
(dollars in millions)
(unaudited)
Dec. 31, Dec. 31,
2005 2004
-----------------
ASSETS
Current assets:
Cash and cash equivalents........................ $57 $182
Accounts receivable, net of allowance for
doubtful accounts of $151 and $158, respectively 2,116 1,657
Accounts receivable from affiliates.............. 188 -
Inventory........................................ 409 444
Current portion of net deferred tax assets....... 275 -
Other current assets............................. 437 2,818
----------------
3,482 5,101
----------------
Property and equipment, net of accumulated
depreciation of $5,134 and $3,247, respectively...... 10,805 6,718
Goodwill.............................................. 10,701 10,704
Spectrum licenses..................................... 11,510 11,087
Other intangible assets, net of accumulated
amortization of $282 and $791, respectively.......... 241 35
Investments in and advances to unconsolidated
affiliates........................................... 5 1,203
Other assets and investments.......................... 248 212
----------------
$36,992 $35,060
================
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
Accounts payable................................. $941 $615
Accrued liabilities.............................. 1,134 1,002
Loss provision on network transaction............ - 792
Deferred revenue................................. 373 335
Current portion of capital lease................. 1 1
Construction accounts payable.................... 724 438
Current portion of long-term notes payable to
affiliates...................................... - 2,505
Total current liabilities.................. 3,173 5,688
Long-term payables to affiliates...................... 6,457 5,127
Deferred tax liabilities.............................. 906 3,096
Other long-term liabilities........................... 1,697 395
----------------
Total long-term liabilities other than
preferred stock............................. 9,060 8,618
Voting preferred stock................................ 5,000 5,000
----------------
Total long-term liabilities..................$14,060 $13,618
----------------
Minority interest in equity of consolidated
subsidiaries 65 18
Commitments and contingencies
Shareholder's equity:
Common stock..................................... 39,452 39,433
Deferred stock-based compensation................ - (3)
Accumulated deficit..............................(19,758)(23,694)
----------------
Total shareholder's equity................... 19,694 15,736
----------------
$36,992 $35,060
================
T-MOBILE USA
Condensed Consolidated Statements of Operations
(dollars in millions)
(unaudited)
Quarter Quarter Year Ended Year
Ended Ended Dec. 31, Ended
Dec. 31, Dec. 31, 2005 Dec. 31,
2005 2004 2004
-------------------------------------
Revenues:
Postpay........................$ 2,920 $ 2,484 $11,044 $ 9,051
Prepaid........................ 213 158 741 573
Roaming and other services..... 128 105 523 408
Equipment sales................ 479 452 1,529 1,519
Other.......................... 213 40 969 129
------- --------- ------- -------
Total revenues.............. 3,953 3,239 14,806 11,680
------- --------- ------- -------
Operating expenses:
Network........................ 749 757 2,883 2,297
Cost of equipment sales........ 738 719 2,622 2,313
General and administrative..... 598 511 2,324 1,883
Customer acquisition........... 756 737 2,792 2,675
Depreciation and amortization.. 567 265 2,229 1,273
------- --------- ------- -------
Total operating expenses.... 3,408 2,989 12,850 10,441
------- --------- ------- -------
Operating income................. 545 250 1,956 1,239
Other income (expense):
Interest expense............... (97) (135) (453) (566)
Equity in net losses of
unconsolidated affiliates..... 1 (83) 2 (202)
Interest income and other, net. 21 (784) 27 (793)
------- --------- ------- -------
Total other income (expense)... (75) (1,002) (424) (1,561)
------- --------- ------- -------
Income (loss) before income taxes 470 (752) 1,532 (322)
Income tax benefit............... 2,518 423 2,404 329
------- --------- ------- -------
Net income (loss)................$ 2,988 $ (329) $ 3,936 $ 7
======= ========= ======= =======
T-MOBILE USA
Condensed Consolidated Statements of Cash Flows
(dollars in millions)
(unaudited)
Year Ended Year Ended
Dec. 31, Dec. 31,
2005 2004
---------------------
Operating activities:
Net income..................................... $ 3,936 $ 7
Adjustments to reconcile net income to net cash
provided by(used in) operating activities:
Depreciation and amortization.......... 2,229 1,273
Income tax benefit..................... (2,404) (329)
Amortization of debt discount and
premium, net.......................... (43) (30)
Equity in net (income) losses of
unconsolidated affiliates............. (2) 202
Stock-based compensation............... 2 12
Allowance for bad debts................ (7) 7
Deferred rent.......................... 86 200
Loss provision on network transaction.. 32 792
Other, net............................. (51) (6)
Changes in operating assets and
liabilities:
Accounts receivable............... (640) (395)
Inventory......................... 35 (153)
Other current assets.............. 2,512 (2,357)
Accounts payable.................. 106 20
Accrued liabilities............... 107 139
------- -------
Net cash provided by (used in) operating
activities............................... 5,898 (618)
------- -------
Investing activities:
Purchases of property and equipment.......... (2,338) (2,139)
Joint venture and network transaction with
Cingular.................................... (2,282) -
Acquisitions spectrum licenses and wireless
properties.................................. (425) (2)
Proceeds on disposal of assets............... 22 -
Investments in and advances to unconsolidated
affiliates, net............................. - (648)
------- -------
Net cash used in investing activities..... (5,023) (2,789)
------- -------
Financing activities:
Long-term debt repayments.................... - (15)
Long-term debt repayments to affiliates...... (1,205) (1,514)
Long-term debt borrowings from affiliates.... 100 900
Equity Increase.............................. - 4,000
Change in minority interest.................. 62 -
Book overdraft............................... 43 70
------- -------
Net cash (used in) provided by financing
activities............................... (1,000) 3,441
------- -------
Change in cash and cash equivalents.............. (125) 34
Cash and cash equivalents, beginning of period... 182 148
------- -------
Cash and cash equivalents, end of period......... $ 57 $ 182
======= =======
T-MOBILE USA
Reconciliation of Non-GAAP Financial Measures to GAAP Financial
Measures
(dollars in millions, except for CPGA and CCPU)
(unaudited)
OIBDA can be reconciled to our operating income as follows (refer to
footnote 2 of the Selected Data Table for the quarterly impacts of the
cumulative operating lease adjustment):
YE Q4 Q3 Q2 Q1 YE Q4
2005 2005 2005 2005 2005 2004 2004
-----------------------------------------------------
OIBDA $4,185 $1,112 $1,166 $1,081 $826 $2,512 $515
Depreciation and
amortization (2,229) (567) (558) (585) (519) (1,273) (265)
-----------------------------------------------------
Operating income $1,956 $545 $608 $496 $307 $1,239 $250
=====================================================
The following schedule reflects the CPGA calculation and provides a
reconciliation of cost of acquiring customers used for the CPGA
calculation to customer acquisition costs reported on our condensed
consolidated statements of operations:
YE Q4 Q3 Q2 Q1 YE Q4
2005 2005 2005 2005 2005 2004 2004
----------------------------------------------
Customer acquisition
costs $ 2,792 $ 756 $ 657 $ 668 $ 711 $ 2,675 $ 737
Plus: Subsidy loss
Equipment sales (1,529) (479) (414) (305) (331) (1,519) (452)
Cost of equipment
sales 2,622 738 648 575 661 2,313 719
------- ----- ----- ----- ----- ------- -----
Total subsidy loss 1,093 259 234 270 330 794 267
------- ----- ----- ----- ----- ------- -----
Less: Subsidy loss
unrelated to customer
acquisition (629) (171) (133) (153) (172) (350) (122)
------- ----- ----- ----- ----- ------- -----
Subsidy loss
related to
customer
acquisition 464 88 101 117 158 444 145
------- ----- ----- ----- ----- ------- -----
Cost of acquiring
customers $ 3,256 $ 844 $ 758 $ 785 $ 869 $ 3,119 $ 882
======= ===== ===== ===== ===== ======= =====
CPGA ($ / new
customer added) $ 297 $ 264 $ 271 $ 310 $ 357 $ 323 $ 345
T-MOBILE USA
Reconciliation of Non-GAAP Financial Measures to GAAP Financial
Measures
(dollars in millions, except for CPGA and CCPU)
(unaudited)
The following schedule reflects the CCPU calculation and provides a
reconciliation of the cost of serving customers used for the CCPU
calculation to total network costs plus general and administrative
costs reported on our condensed consolidated statements of operations
(refer to footnote 2 of the Selected Data Table for the quarterly
impacts of the cumulative operating lease adjustment):
YE Q4 Q3 Q2 Q1 YE Q4
2005 2005 2005 2005 2005 2004 2004
---------------------------------------------------
Network costs $2,883 $ 749 $ 735 $ 718 $ 681 $2,297 $ 757
General and
administrative 2,324 598 596 572 558 1,883 511
------ ------ ------ ------ ------ ------ ------
Total network and
general and
administrative
costs 5,207 1,347 1,331 1,290 1,239 4,180 1,268
Plus: Subsidy loss
unrelated to
customer
acquisition 629 171 133 153 172 350 122
------- ------ ------ ------ ------ ------ ------
Total cost of
serving
customers $5,836 $1,518 $1,464 $1,443 $1,411 $4,530 $1,390
====== ====== ====== ====== ====== ====== ======
CCPU ($ /
customer per
month) $ 25 $ 24 $ 25 $ 26 $ 26 $ 25 $ 28
About T-Mobile USA: Based in Bellevue, WA, T-Mobile USA, Inc. is a member of the T-Mobile International group, the mobile telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. subsidiary of Deutsche Telekom AG (NYSE:DT). T-Mobile USA's GSM/GPRS 1900 voice and data network in the United States reaches over 268 million people, including roaming and other agreements. In addition, T-Mobile USA operates the largest carrier-owned Wi-Fi (802.11b) wireless broadband High-speed wireless transmission of data. What is "high" speed is always a changing number. Wireless systems are typically slower than land-based, wireline networks. In the past, wireless broadband started at 250 Kbps, whereas land-based broadband was generally considered to start at T1 (WLAN See wireless LAN. WLAN - wireless local area network ) network in the United States, available in more than 7,400 public access locations including Starbucks coffeehouses, Kinko's copy shops, Borders Books and Music, Hyatt Hyatt is an international brand of hotels within the Global Hyatt Corporation that operates numerous properties. Hyatt is a part of the Marmon Group which is owned by Chicago's Pritzker Family. Mark S. Hoplamazian is the current President and CEO of Global Hyatt Corporation. and Accor hotels, selected airports' American Airlines American Airlines Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the Admirals Clubs, United Red Carpet carpet or rug, thick fabric, usually woolen (but often synthetic), commonly used today as a floor covering. Carpet Types and Modern Manufactures Clubs, US Airways airways Anatomy The 'pipes'–trachea, bronchi, bronchioles–through which air passes to and from the alveoli. See Small airways. Clubs and Delta Air Lines Clubs. T-Mobile USA is committed to providing the best value in wireless service through its GET MORE promise to provide customers with more minutes, more features and more service. For more information, visit the company website at www.t-mobile.com. About T-Mobile International: T-Mobile International, one of Deutsche Telekom AG's three main strategic business units, is one of the world's leading international mobile communications providers. Deutsche Telekom's majority-held mobile companies today serve 87 million mobile customers in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and the U.S. For more information about T-Mobile
International, please visit http://www.t-mobile.net/. For further
information on Deutsche Telekom, please visit
http://www.telekom.de/investor-relations.
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