TeleCorp PCS Announces 27% Increase in Subscribers and 28% Increase in Revenues over Second Quarter 2000 and 435% Increase in Subscribers and 243% Increase in Revenues over Third Quarter 1999.Business Editors ARLINGTON Arlington, county, United States Arlington, county (1990 pop. 170,936), N Va., across the Potomac River from Washington, D.C. Arlington is a residential and commercial suburb of Washington. , Va.--(BUSINESS WIRE)--Nov. 1, 2000 TeleCorp 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. (Nasdaq:TLCP TLCP Thermotropic Liquid Crystalline Polymer TLCP Toxicity Characteristic Leaching Procedure ), AT&T Wireless' largest affiliate, today announced strong third quarter 2000 results as demand for its SunCom SunCom is a wireless carrier that has operated in the southeastern United States since 1999 and in parts of the Caribbean since 2004. SunCom provides digital wireless communications services to more than 1,000,000 customers, employs more than 1,900 people and offers international, digital wireless service continues to grow. Total number of PCS subscribers at quarter end was 405,444, a 27% increase over the previous quarter end and a 435% increase over third quarter end 1999. In an earlier release announcing the FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. granting of license applications, TeleCorp and Tritel pre-announced their third quarter 2000 subscriber and net addition numbers for a combined total of over 560,000 customers and 135,000 net additions. Operating highlights: - Total subscribers grew to 405,444, increasing 27% or 85,562 from June 30, 2000, and 435% or 329,721 from September 30, 1999. - Post pay subscribers grew to 230,607, increasing 30% or 53,045 from June 30, 2000, and 307% or 173,911 from September 30, 1999. - Total revenues grew to $91.9 million for the quarter, increasing 28% from $72.0 million in the second quarter 2000, and 243% from $26.8 million in the third quarter 1999. - Roaming minutes of use totaled approximately 88 million for the quarter, an increase of 28% over the second quarter 2000. - Total average revenue per subscriber (including outcollect roaming revenue) was approximately $75 per month; total average revenue per subscriber (not including outcollect roaming revenue) was approximately $59 per month. - Post pay average revenue per subscriber (including outcollect roaming revenue) was approximately $95 per month; post pay average revenue per subscriber (not including outcollect roaming revenue) was approximately $78 per month. - Total average usage per subscriber was approximately 300 minutes per month. - Post pay average usage per subscriber was approximately 460 minutes per month. - Total average churn rate was approximately 3.6% for the quarter. - Post pay average churn rate was approximately 2.5% for the quarter. - SunCom digital wireless service was introduced in five new markets: Alexandria, Louisiana; Blytheville and Pine Bluff, Arkansas; Evansville, Indiana; and Dyersburg, Tennessee, ending the quarter with 37 launched markets. Financial highlights: Total revenue for the third quarter ended September September: see month. 30, 2000 increased 28% to $91.9 million from $72.0 million in the second quarter of 2000. Included in total revenue for the quarter, service revenue increased 26% to $64.3 million from $51.1 million in the second quarter 2000 and 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 increased 25% to $18.3 million from $14.7 million in the second quarter 2000. Total revenue for the nine months ended September 30, 2000 increased 355% to $219.3 million, from $48.2 million for the same period of 1999. Total revenue for the nine months included service revenue which increased 704% to $152.3 million from $18.9 million and roaming revenue which increased 135% to $44.5 million from $18.9 million, for the same period of 1999. For the third quarter 2000, the company's 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 loss narrowed to ($20.8) million, from a loss of ($29.4) million in the second quarter. EBITDA before sales and marketing increased 118% in the third quarter to $22.5 million compared to $10.3 million in the second quarter. The third quarter net loss attributable to common shareholders was ($89.8) million, or ($0.88) per share, compared to ($102.0) million or ($1.01) per share in the second quarter. For the nine months ended September 30, 2000, the company's EBITDA loss was ($81.6) million, compared to a loss of ($79.5) million in the same period last year, while EBITDA before sales and marketing for the nine month period was $35.9 million compared to a loss of ($39.8) million for the nine months ended September 30, 1999. The net loss attributable to common shareholders for the nine months ended September 30, 2000 was ($274.0) million, or ($2.72) per share, compared to ($161.0) million, or ($2.30) per share, in the same period 1999. At September 30, 2000, the company had cash and cash equivalents and short term investments totaling $445 million and available bank and vendor credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities of $456 million. Capital expenditures for the quarter and nine months ended September 30, 2000 were $139.6 million and $314.3 million, respectively. Available bank and credit facilities include a $175 million Lucent credit facility related to the company's new markets in Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee and Iowa. Upon the close of the company's merger with Tritel, TeleCorp will receive access of up to $175 million of incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. Lucent financing, which would increase the company's available bank and vendor credit facilities to $631 million. "We continued to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. expectations in the third quarter of 2000," said Gerald Gerald - ["Gerald: An Exceptional Lazy Functional Programming Language", A.C. Reeves et al, in Functional Programming, Glasgow 1989, K. Davis et al eds, Springer 1990]. T. Vento, 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 TeleCorp PCS, Inc. "We accelerated the deployment of our network build-out, launched new markets ahead of schedule, and enhanced our service offerings, all to meet the strong demand for our SunCom digital service. Since launching our first market in February of last year, TeleCorp has been an industry leader in terms of coverage, subscriber growth, penetration and revenue per subscriber. Our initial plans called for us to have covered only 58% of our licensed 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. at this point. Instead, we have launched 37 markets through September 30, with our network covering approximately 81% of our licensed area with 1,137 integrated cell sites and 7 switches. "Even with such strong growth, we are continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. looking at opportunities to solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. our leadership position. Last Friday, the FCC granted license applications approval, clearing the way for us to close our merger with Tritel and acquisitions of properties in Wisconsin and Iowa. Upon closing, we will operate in 71 markets in 14 states and Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. , creating a contiguous Adjacent or touching. Contrast with fragmentation. See contiguous file. footprint that runs from the Great Lakes Great Lakes, group of five freshwater lakes, central North America, creating a natural border between the United States and Canada and forming the largest body of freshwater in the world, with a combined surface area of c.95,000 sq mi (246,050 sq km). to the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east and includes 16 of the top 100 markets. TeleCorp will become one of the top ten largest wireless providers 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 one of the three largest PCS providers. With such a large, contiguous footprint, this transaction will allow us to gain significant economies of scale and, at the same time, enhance our service offerings. I look forward to the opportunities that lie ahead as we leverage our operations and management teams to their fullest," concluded Vento. TeleCorp has scheduled a conference call on Thursday, November 2nd at 8:30 a.m. Eastern Time to discuss its third quarter 2000 results. Investors and interested parties may listen to the call via a live Webcast accessible through VCall at www.vcall.com. To listen, please register and download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. audio software at the site at least 15 minutes prior. The Webcast will be available on the site for approximately three months, while a telephone replay of the call is available for 7 days beginning at 10:30 a.m. Eastern Time, November 2nd, at 1-800-633-8284 or 1-858-812-6440, reservation #16456417. TeleCorp PCS, Inc. currently has licenses to serve approximately 17 million people in markets serving eleven states and Puerto Rico. TeleCorp is headquartered in Arlington, Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). and employs more than 1300 people. More information about the company can be found on the web at www.telecorppcs.com. Except for historical information, the matters discussed in this news release that may be considered 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. could be subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected. These include uncertainties in the market, competition, legal and other risks detailed in the TeleCorp-Tritel Holding Company registration statement on Form S-4 (File no. 333-36954), the TeleCorp PCS, Inc. registration statement on Form S-4 (File no. 333-43596) and the TeleCorp PCS, Inc. Form 10K filed with the SEC on March 30, 2000, each as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. or supplemented. TeleCorp PCS, Inc. assumes no obligation to update information in this release.
TeleCorp PCS, Inc.
Financial Summary
September 30, 2000
(unaudited)
For the quarter ended
------------------------------------------
Dec. 31, March 31, June 30, Sept. 30,
1999 2000 2000 2000
--------- --------- --------- ---------
($ in millions, except per share data)
Statement of operations
data:
Service revenue $ 22.4 $ 36.9 $ 51.1 $ 64.3
Roaming revenue $ 10.1 $ 11.5 $ 14.7 $ 18.3
Equipment revenue $ 7.0 $ 7.0 $ 6.2 $ 9.3
Total revenue $ 39.5 $ 55.4 $ 72.0 $ 91.9
EBITDA before sales and
marketing expense (1) $ (9.5) $ 3.1 $ 10.3 $ 22.5
EBITDA (1) $ (40.0) $ (31.4) $ (29.4) $ (20.8)
Operating loss $ (92.2) $ (59.9) $ (78.1) $ (57.1)
Net loss attributable to
common equity $ (114.1) $ (82.2) $ (102.0) $ (89.8)
Net loss attributable to
common equity per share $ (1.29) $ (0.83) $ (1.01) $ (0.88)
As of As of As of As of
Dec. 31, March 31, June 30, Sept. 30,
1999 2000 2000 2000
--------- --------- --------- ---------
($ in millions, except per share data)
Balance sheet data:
Cash, cash equivalents &
short-term investments $ 182.3 $ 94.6 $ 28.2 $ 445.0
Property and equipment,
net $ 400.5 $ 461.7 $ 531.0 $ 641.6
Total assets $ 952.2 $ 948.7 $ 966.6 $ 1,533.6
Total debt $ 640.6 $ 651.3 $ 729.5 $ 1,255.9
For the quarter ended
------------------------------------------
Dec. 31, March 31, June 30, Sept. 30,
1999 2000 2000 2000
--------- --------- --------- ---------
Other operating data:
Total Company
Net Adds 66,508 86,106 91,545 85,562
ARPU with roaming $104 $88 $80 $75
ARPU without roaming $72 $67 $62 $59
Churn 1.9% 2.3% 2.8% 3.6%
Ending subscribers 142,231 228,337 319,882 405,444
Usage/subscriber/
month(minutes) 400 320 330 300
Roaming minutes (in
millions) 39 million 57 million 69 million 88 million
Post Pay Customers
Net Adds 37,437 40,487 41,458 53,045
ARPU with roaming $118 $102 $96 $95
ARPU without roaming $85 $81 $78 $78
Churn 1.7% 1.4% 2.4% 2.5%
Ending subscribers 94,133 136,104 177,562 230,607
Usage/subscriber/
month(minutes) 490 460 460 460
(1) The Company defines EBITDA as earnings before interest, taxes,
depreciation, amortization and non-cash stock compensation expense
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