Western Wireless Reports First Quarter 1998 Results Positive Consolidated EBITDA of $5.3 Million in the First Quarter.ISSAQUAH, Wash.--(BUSINESS WIRE)--April 23, 1998--Western Wireless Corporation (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 :WWCA WWCA Western Wireless Corporation (stock symbol) WWCA Western Washington Center for the Arts ), a leading provider of cellular and personal communications services See PCS. (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. ), announced today its financial and operating results for the first quarter ended March 31, 1998. "Western Wireless had an outstanding first quarter," said John Stanton Stanton, city (1990 pop. 30,491), Orange co., SW Calif., SW of Anaheim; inc. 1956. The city's population grew rapidly in the late 20th century. Manufactures include electrical and electronic goods, signs, computer equipment, building materials, and plastics. , chairman and chief executive officer of Western Wireless. "We reached, in the first quarter, the important 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. of having positive 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 (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) on a 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: basis. This was possible because of the continued outstanding growth in cash flow of our cellular operations combined with the rapid growth in subscribers and revenues of the newer PCS markets, while continuing to focus on cost controls." Total Company Results At the end of the first quarter the company had 711,700 total wireless subscribers, a 77.8 percent increase over the first quarter of 1997. The company reported total revenues of $120.5 million for the quarter, up 68.4 percent over the same quarter a year ago. Consolidated EBITDA was $5.3 million. Net loss was $64.1 million, a basic loss of $0.85 per share for the quarter, compared to a loss of $55.2 million, a basic loss of $0.79 per share for the first quarter of 1997. Cellular and PCS Summaries For the quarter ended March 31, 1998 ending cellular subscribers were 547,100, a 55.8 percent increase over the same quarter in 1997. Cellular net additions were 27,100 for the quarter. Cellular service revenues for the first quarter of 1998 increased 53.2 percent from the same quarter a year ago to $87.9 million. Cellular EBITDA for the quarter was $33.5 million, a 90.5 percent increase over the same quarter in 1997. Cellular capital expenditures were $10.2 million for the quarter. Cellular free cash flow (EBITDA less capital expenditures) was $23.3 million for the first quarter. At the end of the first quarter 1998, Western Wireless had 164,600 VoiceStream PCS subscribers compared to 49,000 in the same quarter of 1997. VoiceStream PCS net additions were 36,000 for the quarter. PCS service revenues were $22.8 million for the quarter comparted under the Cellular One(R) name in 17 western states. Marketed under the VoiceStream(R) Wireless name, Western Wireless provides PCS service using the globally doadditional markets, and owns licenses for another 24 markets. As a result, Western Wireless' combined cellular and PCS licenses, along with its joint ventures, cover 59 percent of the land in the continental United States United States territory, including the adjacent territorial waters, located within North America between Canada and Mexico. Also called CONUS. . -0-
1998 1997
Revenues:
Subscriber revenues $ 98,246 $ 56,685
Roamer revenues 11,131 6,694
Equipment sales and other revenues 11,136 8,181
Total revenues 120,513 71,560
Operating expenses:
Cost of s 26,421
Total operating expenses 152,758 108,951
Operating loss y in net loss of unconsolidated
affiliates (9,159) (1,087)
Other, net 2,689 665
Total other income (expense) (37,658) (17,782)
Minority interest in net loss of
consolidated subsidiary 5,753
Net loss $ (64,150) $ (55,173)
Basic loss per common share $ (0.85) $ (0.79)
Weighted average common shares used
in computing basic loss per common
share 75,776,000 69,934,000
WESTERN WIRELESS CORPORATION
SUPPLEMENTARY FINANCIAL AND OPERATIONAL DATA
(Dollars in thousands)
(Unaudited)
(Note: The following Table sets forth certain selected financial
and operating data of the company for the three months ended March
31, 1998 and 1997.)
Three Months Ended March 31,
1998 1997
Cellular PCS Cellular PCS
Revenues:
Subscriber revenues $ 76,103 $ 22,143 $ 49,382 $ 7,303
Roamer revenues 10,487 644 6,694
Equipment sales 2,753 7,096 2,905 3,999
Other revenues 1,287 1,277
Total revenues 90,630 29,883 60,258 11,302
Operating expenses:
Cost of service 11,887 11,122 11,066 9,171
Cost of equipment sales 7,452 14,477 5,943 7,122
General and
administrative 20,262 18,177 13,587 11,116
Sales and marketing 17,491 14,341 12,055 12,470
Depreciation and
amortization 17,550 19,999 15,924 10,497
Total operating
expenses 74,642 78,116 58,575 50,376
Operating income (loss) $ 15,988 $ (48,233) $ 1,683 $ (39,074)
EBITDA $ 33,538 $ (28,234) $ 17,607 $ (28,577)
Ending subscribers 547,100 164,600 351,200 49,000
CONTACT: Investment Community: Western Wireless Corporation Ken Prussing, 425/313-7803 ken.prussing@wwireless.com or Media: Kaufer Miller Communications John Snyder Snyder, city (1990 pop. 12,195), seat of Scurry co., NW Tex., in a prairie and mesquite region; inc. 1907. Oil production is the city's main industry; natural gas is also refined and processed. , 425/450-9965 JohnS@kmrc.com www.kmrc.inter.net |
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