NTELOS HOLDINGS CORP WAYNESBORO, Va., May 1, 2015 /PRNewswire/ -- NTELOS Holdings Corp. (NASDAQ: NTLS) ("nTelos" or the "Company") announced today operating and financial results for its first quarter ended March 31, 2015.
"The first quarter proved pivotal for us as we posted strong retail results and accomplished a number of key strategic objectives," said Rod Dir, Chief Executive Officer. "In our Western Markets, we added subscribers at a level not seen in years as customers responded to our strong retail offerings, driving improvements in both churn and gross add results. In addition, we closed the sale of spectrum in our Eastern Markets and completed the sale of most of our remaining owned towers. While we are pleased with our execution so far, we continue to take steps to realign our cost structure, strengthen our retail offerings and expand our LTE network. Moving forward, we are confident these actions will further enhance our competitive position and financial performance."
Western Markets First Quarter 2015 Financial and Recent Highlights
-- Western Markets revenues increased 7% to $95.3 million for the first
quarter 2015, compared to $89.2 million for the first quarter 2014;
-- Western Markets Adjusted EBITDA was $27.3 million for the first quarter
2015, compared to $33.3 million for the first quarter 2014. Adjusted
EBITDA during the quarter reflected the absorption of corporate overhead
previously allocated to the Eastern Markets and, consistent with our
amended agreement with Sprint, reduced revenues from the Strategic
Network Alliance ("SNA");
-- Postpaid churn of 1.7% was the Company's lowest quarterly churn since
second quarter 2013;
-- Net adds of 8,000 were the Company's highest quarterly mark since 2007;
-- Completed the spectrum sale in Eastern Markets for gross proceeds of
$56.0 million; and
-- Completed the sale of 91 Company owned towers for gross proceeds of
approximately $39.3 million.
Western Markets Subscriber Update
Total Subscribers
-- Total subscribers were 290,100 as of March 31, 2015, compared to 282,100
for the fourth quarter 2014 and 277,100 for the first quarter 2014;
-- Total subscriber gross additions for the first quarter 2015 were 27,500,
compared to 28,300 for the fourth quarter 2014 and 25,000 for the first
quarter 2014; and
-- Total subscriber net additions for the first quarter 2015 were 8,000,
compared to 5,000 for the fourth quarter 2014 and 3,500 for the first
quarter 2014.
Postpay Subscribers
-- Postpay subscriber gross additions for the first quarter 2015 were
15,700, compared to 18,600 for the fourth quarter 2014 and 14,600 for
the first quarter 2014;
-- Net postpay subscriber additions were 4,600 for the first quarter 2015,
compared to 4,700 for the fourth quarter 2014 and 1,700 for the first
quarter 2014;
-- Postpay churn for the first quarter 2015 was 1.7%, compared to 2.0% for
the first quarter 2014;
-- ARPA was $122.04 for the first quarter 2015, compared to $136.60 for the
first quarter 2014; and
-- As of March 31, 2015, total postpay subscribers were 224,700.
Prepay Subscribers
-- Prepay subscriber gross additions for the first quarter 2015 were
11,800, compared to 9,700 for the fourth quarter 2014 and 10,400 for the
first quarter 2014;
-- Net prepay subscriber additions were 3,400 for the first quarter 2015,
compared to 300 for the fourth quarter 2014 and 1,800 for the first
quarter 2014;
-- Prepay churn for the first quarter 2015 was 4.4%, flat compared to the
first quarter 2014; and
-- As of March 31, 2015, total prepay subscribers were 65,400.
Net Income
Net income after net income attributable to noncontrolling interests was $14.8 million, or $0.65 per diluted share, for the first quarter 2015, compared to $1.3 million, or $0.06 per diluted share, for the first quarter 2014. Net income for the first quarter 2015 included a $16.0 million benefit related to the previously announced sale of certain cell towers.
Liquidity
Cash at the end of the first quarter 2015 was $105.6 million, compared to $75.7 million at the end of the fourth quarter 2014. In addition, nTelos received $56.0 million on April 15, 2015 in connection with the sale of the Company's spectrum portfolio in its Eastern Markets.
Business Outlook
On December 2, 2014, the Company announced a strategic refocus of its business operations on its Western Markets (West Virginia and western Virginia), where it has experienced strong operating performance, has a favorable competitive position for its branded retail offering and benefits operationally and financially from its Strategic Network Alliance ("SNA") with Sprint. The Company is currently in the process of winding down its operations in its Eastern Markets, which it expects to complete by November 15, 2015.
For the year ending December 31, 2015, the Company expects its full year 2015 Adjusted EBITDA to be between $100.0 million and $108.0 million, unchanged from the Company's guidance provided on February 26, 2015. This Adjusted EBITDA excludes restructuring costs and results from Eastern Markets business. Full year 2015 capital expenditures are still expected to be between $95.0 and $105.0 million, with expenditures to increase progressively throughout the remainder of the year.
Conference Call
The Company will host a conference call with investors and analysts to discuss its first quarter 2015 results this morning, May 1, 2015, at 9:00 ET. To participate, please dial 1-877-407-9120 in the U.S. and Canada and 1-412-902-1009 for international, approximately 10 minutes before the scheduled start of the call. The conference call and accompanying presentation will also be accessible live on the Investor Relations section of the Company's website at http://ir.ntelos.com.
An archive of the conference call will be available online at http://ir.ntelos.com beginning approximately one hour after the call. A replay will also be available via telephone by dialing 1-877-660-6853 in the U.S. and Canada or 1-201-612-7415 internationally and entering access code 13601222 beginning approximately one hour after the call and continuing until May 8, 2015.
Non-GAAP Measures
Adjusted EBITDA is defined as net income attributable to NTELOS Holdings Corp. before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, transaction related costs, restructuring and asset impairment charges, gain/loss on sale or disposal of assets and derivatives, net income attributable to noncontrolling interests, other expenses/income, equity-based compensation charges, separation charges, secondary offering costs, adjustments for impact of recognizing deferred gain associated with towers sold to Grain Management and adjustments for impact of recognizing a portion of the billed SNA contract revenues on a straight line basis.
ARPA, or average monthly revenue per account, is computed by dividing service revenues per period by the average number of accounts during that period. Please see the footnotes in the exhibits for a complete definition of this measure.
Adjusted EBITDA is a key metric used by investors to determine if the Company is generating sufficient cash flows to continue to produce shareholder value and provide liquidity for future growth. ARPA provides management with useful information concerning the appeal of the Company's postpay rate plans and service offerings and the Company's performance in attracting and retaining high value customers.
Adjusted EBITDA and ARPA are non-GAAP financial performance measures. They should not be considered in isolation or as an alternative to measures determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Please refer to the exhibits and materials posted on the Company's website for a reconciliation of these non-GAAP financial performance measures to the most comparable measures reported in accordance with GAAP and for a discussion of the presentation, comparability and use of such financial performance measures.
About NTELOS
NTELOS Holdings Corp. (NTLS), operating through its subsidiaries as "nTelos Wireless," is headquartered in Waynesboro, VA, and provides high-speed, dependable nationwide voice and data coverage for approximately 290,100 retail subscribers based in its Western Markets, comprised of western Virginia, West Virginia and portions of Maryland, North Carolina, Pennsylvania, Ohio and Kentucky. The Company's licensed territories in the Western Markets have a total population of approximately 4.4 million residents, of which its wireless network covers approximately 3.1 million residents. The Company is also the exclusive wholesale provider of wireless network services to Sprint Corporation in portions of its western Virginia and West Virginia territories for all Sprint wireless customers.
FORWARD-LOOKING STATEMENTS
Any statements contained in this press release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. The words "anticipates," "believes," "expects," "intends," "plans," "estimates," "targets," "projects," "should," "may," "will" and similar words and expressions are intended to identify forward-looking statements. Such forward-looking statements reflect, among other things, our current expectations, plans and strategies, and anticipated financial results, all of which are subject to known and unknown risks, uncertainties and factors that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements. Many of these risks are beyond our ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the date they are made. We do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise. Important factors with respect to any such forward-looking statements, including certain risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, include, but are not limited to: our ability to attract and retain retail subscribers to our services; our dependence on our strategic relationship with Sprint Corporation ("Sprint"); our ability to realize the expected proceeds, cost savings and other benefits from the wind down of our Eastern Markets; a potential increase in roaming rates and wireless handset subsidy costs; rapid development and intense competition in the telecommunications industry; our ability to finance, design, construct and realize the benefits of any planned network technology upgrade; our ability to acquire or gain access to additional spectrum in the future; the potential to experience a high rate of customer turnover; the potential for competitors to build networks in our markets; cash and capital requirements; operating and financial restrictions imposed by our credit agreement; adverse economic conditions; federal and state regulatory fees, requirements and developments; loss of ability to use our current cell sites; our continued reliance on indirect channels of retail distribution; our reliance on certain suppliers and vendors; and other unforeseen difficulties that may occur. These risks and uncertainties are not intended to represent a complete list of all risks and uncertainties inherent in our business, and should be read in conjunction with the more detailed cautionary statements and risk factors included in our SEC filings, including our most recent Annual Report filed on Form 10-K.
Exhibits:
-- Condensed Consolidated Balance Sheets
-- Condensed Consolidated Statements of Income
-- Reconciliation of Net Income Attributable to NTELOS Holdings Corp. to
Adjusted EBITDA
-- Key Metrics
-- ARPA Reconciliation - Postpay
-- Western Markets
-- Western Markets Condensed Consolidated Statements of Operating
Income
-- Western Markets Reconciliation of Net Income Attributable to NTELOS
Holdings Corp. to Adjusted EBITDA
-- Western Markets Key Metrics
-- Western Markets ARPA Reconciliation - Postpay
NTELOS Holdings Corp.
---------------------
Condensed Consolidated Balance Sheets (Unaudited) (Unaudited)
March 31, 2015 December 31, 2014
-------------- -----------------
(In thousands)
ASSETS
Current Assets
Cash $103,418 $73,546
Restricted cash 2,167 2,167
Accounts receivable, net 50,247 43,668
Inventories and supplies 20,377 18,297
Deferred income taxes 24,923 24,770
Prepaid expenses 13,003 13,543
Other current assets 625 4,626
214,760 180,617
------- -------
Assets Held for Sale 59,398 64,271
Securities and Investments 1,522 1,522
Property, Plant and Equipment, net 299,456 289,947
Intangible Assets
Goodwill 63,700 63,700
Radio spectrum licenses 44,933 44,933
Customer relationships and trademarks, net 4,885 5,084
Deferred Charges and Other Assets 19,835 18,474
Total Assets $708,489 $668,548
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Current portion of long-term debt $5,772 $5,816
Accounts payable 21,137 24,541
Accrued expenses and other current liabilities 43,599 41,706
70,508 72,063
------ ------
Long-Term Debt 518,392 519,592
Other Long-Term Liabilities 136,216 109,845
Stockholders' Equity (Deficit) (16,627) (32,952)
Total Liabilities and Stockholders' Equity (Deficit) $708,489 $668,548
======== ========
NTELOS Holdings Corp.
---------------------
Condensed
Consolidated
Statements of Income Three Months Ended
--------------------- ------------------
(Unaudited)
(In thousands, except
per share amounts) March 31, 2015 March 31, 2014
--------------------- -------------- --------------
Operating Revenues $120,206 $122,082
Operating Expenses
Cost of sales and services 53,293 51,758
Customer operations 24,349 27,623
Corporate operations 9,412 11,771
Restructuring and other charges 2,008 -
Depreciation and amortization 13,874 19,067
Gain on sale of assets (15,947) -
86,989 110,219
------ -------
Operating Income 33,217 11,863
Other Expense
Interest expense (7,917) (7,959)
Other expense (4) (1,072)
--- ---
(7,921) (9,031)
------ ------
Income before Income
Taxes 25,296 2,832
Income Tax Expense 10,009 1,110
------ -----
Net Income 15,287 1,722
Net Income
Attributable to
Noncontrolling
Interests (491) (436)
Net Income
Attributable to
NTELOS Holdings
Corp. $14,796 $1,286
======= ======
Earnings per Share
Attributable to
Common Shares:
Net Income applicable to NTELOS
Holdings Corp. $14,796 $1,286
Net Income applicable to
participating securities 459 -
Net Income applicable to common
shares $14,337 $1,286
======= ======
Basic $0.68 $0.06
===== =====
Weighted average shares outstanding -
basic 21,193 21,080
====== ======
Diluted $0.65 $0.06
Weighted average shares outstanding -
diluted 22,161 22,023
====== ======
Cash Dividends
Declared per Share -
Common Stock $ - $0.42
================= =====
NTELOS Holdings Corp.
---------------------
Reconciliation of Net Income
Attributable to NTELOS Holdings Corp.
to Adjusted EBITDA
(In thousands)
-------------
Three Months Ended
------------------
March 31, 2015 March 31, 2014
-------------- --------------
Net income attributable to NTELOS
Holdings Corp. $14,796 $1,286
Net income attributable to
noncontrolling interests 491 436
--- ---
Net income $15,287 $1,722
Interest expense 7,917 7,959
Income taxes 10,009 1,110
Other expense 4 1,072
------------- --- -----
Operating income $33,217 $11,863
Depreciation and amortization 13,874 19,067
Restructuring and other charges 2,008 -
Gain on sale of assets (15,947) -
Accretion of asset retirement
obligations 504 315
Equity-based compensation 859 1,311
SNA straight-line adjustment (1) 3,065 -
Other (2) (200) 1,367
-------- ---- -----
Adjusted EBITDA $37,380 $33,923
======= =======
(1) Adjustment
for impact
of
recognizing
a portion of
the billed
SNA contract
revenues on
a straight
line basis.
(2) Other
includes
adjustments
for the
recognition
of a portion
of the
deferred
gain for
towers sold
to Grain
Management,
LLC in 2015
and for
certain
employee
separation
charges in
2014.
NTELOS Holdings Corp.
---------------------
Key Metrics
-----------
Quarter Ended: 3/31/2014 6/30/2014 9/30/2014 12/31/2014 3/31/2015
-------------- --------- --------- --------- ---------- ---------
Subscribers
-----------
Beginning Subscribers 464,600 468,000 458,100 457,200 448,900
Postpay 306,700 306,800 308,200 310,200 310,100
Prepay 157,900 161,200 149,900 147,000 138,800
Gross Additions 45,400 39,000 41,400 40,400 28,800
Postpay 20,200 20,400 20,800 22,500 15,800
Prepay 25,200 18,600 20,600 17,900 13,000
Disconnections (1) 42,000 38,600 42,300 48,700 63,000
Postpay 19,900 17,100 18,900 22,700 31,500
Prepay 22,100 21,500 23,400 26,000 31,500
Net Additions (Losses) (1) 3,400 400 (900) (8,300) (34,200)
Postpay 300 3,300 1,900 (200) (15,700)
Prepay 3,100 (2,900) (2,800) (8,100) (18,500)
Ending Subscribers 1 468,000 458,100 457,200 448,900 414,700
Postpay 306,800 308,200 310,200 310,100 294,300
Prepay 161,200 149,900 147,000 138,800 120,400
Churn, net (1) 3.0% 2.8% 3.1% 3.6% 4.9%
Postpay 2.2% 1.8% 2.0% 2.4% 3.5%
Prepay 4.6% 4.5% 5.3% 6.0% 8.1%
Other Items
-----------
ARPA Statistics
---------------
ARPA $137.47 $137.20 $134.18 $132.48 $125.98
Postpay Accounts (2) 138,400 140,500 142,100 143,400 138,500
Postpay Subscribers per Account (2) 2.2 2.2 2.2 2.2 2.1
Strategic Network Alliance Revenues
(000's) (3)
-----------------------------------
Billed Revenue $39,284 $37,997 $38,144 $38,329 $36,627
Straight-Line Adjustment NA (2,043) (3,065) (3,065) (3,065)
Spectrum Lease Consideration NA 822 1,234 1,233 1,190
--- --- ----- -----
SNA Revenues $39,284 $36,776 $36,313 $36,497 $34,752
------- ------- ------- -------
Network Statistics
------------------
Licensed Population (millions) 8.0 8.0 8.0 8.0 8.0
Covered Population (millions) 6.0 6.0 6.0 6.0 6.0
Total Cell Sites 1,444 1,445 1,446 1,453 1,455
(1) During the 2014
second quarter,
the Company
terminated
approximately
2,100 postpay
subscribers
that repeatedly
exceeded their
terms and
conditions
relating to
permitted
usage.
Additionally,
the Company
changed its
business rules
related to
reporting of
long-term,
non-revenue
prepay
subscribers.
This change
resulted in
approximately
8,200 prepay
subscribers
being excluded
from our ending
subscriber
base. The
impact of these
Company-
initiated
terminations
and change in
business rules
is reflected in
our ending
subscriber
totals as of
June 30, 2014,
and is not
reflected in
our
disconnections,
net additions
and churn
calculations
for the quarter
ended June 30,
2014.
(2) End of Period
(3) Effective
5/1/14, SNA
Revenues
include the
impact of
recognizing the
fixed fee
element of SNA
contract
revenues on a
straightline
basis, which is
a reduction of
billed revenue,
and the non-
cash
consideration
attributable to
spectrum
leases. We
have recognized
an equal charge
for spectrum
lease expense
within cost of
sales and
services.
NTELOS Holdings
Corp.
---------------
ARPA Reconciliation
-Postpay Three Months Ended
------------------- ------------------
Average Monthly
Revenue per
Account (ARPA) 1 March 31, 2015 March 31, 2014
----------------- -------------- --------------
(In thousands,
except for
accounts and ARPA)
Operating revenues $120,206 $122,082
Less: prepay
service revenues (12,365) (16,960)
Less: equipment
revenues (17,389) (7,491)
Less: wholesale and
other adjustments (36,866) (40,018)
Postpay service
revenues $53,586 $57,613
Average number of
postpay accounts 141,800 139,700
Postpay ARPA $125.98 $137.47
============ ======= =======
(1) Average
monthly
revenue per
account
(ARPA) is
computed by
dividing
postpay
service
revenues per
period by the
average
number of
postpay
accounts
during that
period. ARPA
as defined
may not be
similar to
ARPA measures
of other
companies, is
not a
measurement
under GAAP
and should be
considered in
addition to,
but not as a
substitute
for, the
information
contained in
the Company's
consolidated
statements of
operations.
The Company
closely
monitors the
effects of
new rate
plans and
service
offerings on
ARPA in order
to determine
their
effectiveness.
ARPA
provides
management
useful
information
concerning
the appeal of
NTELOS rate
plans and
service
offerings and
the Company's
performance
in attracting
and retaining
high-value
customers.
Western Markets (1)
------------------
Condensed Consolidated
Statements of Operating Income Three Months Ended
------------------------------- ------------------
(Unaudited)
(In thousands, except per share
amounts) March 31, 2015 March 31, 2014
------------------------------- -------------- --------------
Operating Revenues $95,311 $89,166
Operating Expenses
Cost of sales and services 43,819 34,551
Customer operations 19,552 16,021
Corporate operations 8,625 7,723
Restructuring 1,605 -
Depreciation and amortization 12,861 12,922
Gain on sale of assets (11,009) -
75,453 71,217
------ ------
Operating Income $19,858 $17,949
(1) Western Markets is defined as Holdings less Eastern
Markets.
NTELOS Western Markets 1
------------------------
Reconciliation of Net Income Attributable to NTELOS Holdings Corp. to Western Markets Proforma Adjusted EBITDA
(In thousands)
-------------
Three Months Ended
------------------
March 31, 2015 March 31, 2014
-------------- --------------
Net Income Attributable to NTELOS
Holdings Corp. $14,796 $1,286
Net income attributable to
noncontrolling interests 491 436
--- ---
Net income $15,287 $1,722
Operating loss (income) attributable
to Eastern Markets (13,359) 6,086
Interest expense 7,917 7,959
Income taxes 10,009 1,110
Other expense 4 1,072
------------- --- -----
Operating income $19,858 $17,949
Depreciation and amortization 12,861 12,922
Restructuring (2) 1,605 -
Gain on sale of assets (11,009) -
Accretion of asset retirement
obligations 300 223
Equity-based compensation 860 887
SNA straight-line adjustment (3) 3,065 -
Other 4 (200) 1,367
------- ---- -----
Adjusted EBITDA $27,340 $33,348
======= =======
Western
Markets is
defined as
Holdings
less Eastern
(1) Markets.
Restructuring
costs
attributable
to Corporate
and Western
(2) Markets.
Adjustment
for impact
of
recognizing
a portion of
the billed
SNA contract
revenues on
a straight
(3) line basis.
Other
includes
adjustments
for the
recognition
of a portion
of the
deferred
gain for
towers sold
to Grain
Management,
LLC in 2015
and for
certain
employee
separation
charges in
4 2014.
NTELOS Western Markets (1)
Key Metrics
-----------
Quarter Ended: 3/31/2014 6/30/2014 9/30/2014 12/31/2014 3/31/2015
-------------- --------- --------- --------- ---------- ---------
Subscribers
-----------
Beginning Subscribers 273,600 277,100 274,000 277,100 282,100
Postpay 208,800 210,300 212,400 215,500 220,100
Prepay 64,800 66,800 61,600 61,600 62,000
Gross Additions 25,000 22,500 24,600 28,300 27,500
Postpay 14,600 14,700 15,500 18,600 15,700
Prepay 10,400 7,800 9,100 9,700 11,800
Disconnections (2) 21,500 19,500 21,500 23,300 19,500
Postpay 12,900 11,200 12,500 13,900 11,100
Prepay 8,600 8,300 9,000 9,400 8,400
Net Additions (Losses) (2) 3,500 3,000 3,100 5,000 8,000
Postpay 1,700 3,500 3,000 4,700 4,600
Prepay 1,800 (500) 100 300 3,400
Ending Subscribers (2) 277,100 274,000 277,100 282,100 290,100
Postpay 210,300 212,400 215,500 220,100 224,700
Prepay 66,800 61,600 61,600 62,000 65,400
Churn, net (2) 2.6% 2.3% 2.6% 2.8% 2.3%
Postpay 2.0% 1.8% 1.9% 2.2% 1.7%
Prepay 4.4% 4.2% 4.9% 5.0% 4.4%
Other Items
-----------
ARPA Statistics
---------------
ARPA $136.60 $136.61 $133.83 $132.12 $122.04
Postpay Accounts (3) 91,400 93,700 95,500 98,700 101,900
Postpay Subscribers per Account (3) 2.3 2.3 2.3 2.2 2.2
Strategic Network Alliance Revenues
(000's) 4
-----------------------------------
Billed Revenue $39,284 $37,997 $38,144 $38,329 $36,627
Straight-Line Adjustment NA (2,043) (3,065) (3,065) (3,065)
Spectrum Lease Consideration NA 822 1,234 1,233 1,190
---------------------------- --- --- ----- -----
SNA Revenues $39,284 $36,776 $36,313 $36,497 $34,752
Network Statistics
------------------
Licensed Population (millions) 4.4 4.4 4.4 4.4 4.4
Covered Population (millions) 3.1 3.1 3.1 3.1 3.1
Total Cell Sites 999 999 1,000 1,004 1,006
LTE Cell Sites NA 89 135 135 202
Western Markets
is defined as
Holdings less
Eastern
(1) Markets.
(2) During the 2014
second quarter,
the Company
terminated
approximately
1,400 postpay
subscribers
that repeatedly
exceeded their
terms and
conditions
relating to
permitted
usage.
Additionally,
the Company
changed its
business rules
related to
reporting of
long-term,
non-revenue
prepay
subscribers.
This change
resulted in
approximately
4,700 prepay
subscribers
being excluded
from our ending
subscriber
base. The
impact of these
Company-
initiated
terminations
and change in
business rules
is reflected in
our ending
subscriber
totals as of
June 30, 2014,
and is not
reflected in
our
disconnections,
net additions
and churn
calculations
for the periods
ended June 30,
2014.
(3) End of Period
Effective
5/1/14, SNA
Revenues
include the
impact of
recognizing the
fixed fee
element of SNA
contract
revenues on a
straightline
basis, which is
a reduction of
billed revenue,
and the non-
cash
consideration
attributable to
spectrum
leases. We
have recognized
an equal charge
for spectrum
lease expense
within cost of
sales and
4 services.
NTELOS Western
Markets (1)
--------------
ARPA Reconciliation
-Postpay Three Months Ended
------------------- ------------------
Average Monthly
Revenue per
Account (ARPA) (2) March 31, 2015 March 31, 2014
------------------- -------------- --------------
(In thousands,
except for
accounts and ARPA)
Operating revenues $95,311 $89,166
Less: prepay
service revenues (6,235) (6,700)
Less: equipment
revenues (16,703) (4,556)
Less: wholesale and
other adjustments (35,612) (40,139)
Postpay service
revenues $36,761 $37,771
Average number of
postpay accounts 100,400 92,200
Postpay ARPA $122.04 $136.60
============ ======= =======
(1) Western Markets is
defined as Holdings
less Eastern Markets.
(2) Average monthly
revenue per account
(ARPA) is computed
by dividing postpay
service revenues
per period by the
average number of
postpay accounts
during that period.
ARPA as defined may
not be similar to
ARPA measures of
other companies, is
not a measurement
under GAAP and
should be
considered in
addition to, but
not as a substitute
for, the
information
contained in the
Company's
consolidated
statements of
operations. The
Company closely
monitors the
effects of new rate
plans and service
offerings on ARPA
in order to
determine their
effectiveness.
ARPA provides
management useful
information
concerning the
appeal of NTELOS
rate plans and
service offerings
and the Company's
performance in
attracting and
retaining high-
value customers.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ntelos-holdings-corp-reports-first-quarter-2015-results-300075788.html
SOURCE NTELOS Holdings Corp.
