NTELOS HOLDINGS CORP WAYNESBORO, Va., Feb. 26, 2015 /PRNewswire/ -- NTELOS Holdings Corp. (NASDAQ: NTLS) (the "Company") announced today operating and financial results for its fourth quarter and year ended December 31, 2014. These results supplement the preliminary information released on January 20, 2015.
On December 2, 2014, nTelos 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. nTelos is currently in the process of winding down its operations in its Eastern Markets, which it expects to complete by November 15, 2015.
"During the fourth quarter, nTelos simultaneously took actions to enhance our competitive position in the Western Markets and to begin an orderly wind down of operations in our Eastern Markets," said Michael A. Huber, Chairman of the Board of NTELOS Holdings Corp. "The successful closing of the first installment of our towers sale demonstrates that we are executing on our strategic objectives and adding liquidity to our already solid balance sheet. The Board is confident that nTelos can thrive in its Western Markets and in the process enhance value for shareholders."
Rod Dir, Chief Executive Officer, added: "nTelos continues to demonstrate why we remain 'the best value in wireless' by offering more options for our customers and a more rewarding network experience. Our expanded 4G LTE coverage is providing subscribers with faster speeds across our comprehensive device lineup, which now includes the Apple iPad. We continue to work diligently to attract new customers looking for exceptional savings, simplicity and service."
Recent Financial and Operational Highlights
-- Revenues were $128.3 million for the fourth quarter 2014, a 5% increase
compared to $121.8 million for the fourth quarter 2013. Revenues for the
year 2014 were $487.8 million, compared to $491.9 million for the year
2013;
-- Adjusted EBITDA was $31.4 million for the fourth quarter 2014, compared
to $26.7 million for the fourth quarter 2013. Consolidated Adjusted
EBITDA for the year 2014 was $132.4 million, compared to $150.9 million
for the year 2013; and
-- Closed on first installment of previously announced towers sale,
divesting 85 towers for gross proceeds of approximately $35.0 million.
Western Markets Proforma Fourth Quarter and Full Year 2014 Financial Highlights
-- Western Markets Proforma revenues increased to $96.7 million for the
fourth quarter 2014, a 9% increase compared to $88.6 million for the
fourth quarter 2013. Western Markets Proforma revenues for the year 2014
were $360.1 million, compared to $359.8 million for the year 2013; and
-- Western Markets Proforma Adjusted EBITDA was $30.2 million for the
fourth quarter 2014, compared to $27.5 million for the fourth quarter
2013. Western Markets Proforma Adjusted EBITDA for the year 2014 was
$129.7 million, compared to $145.7 million for the year 2013.
Western Markets Subscriber Update (previously released on January 20, 2015)
Total Subscribers
-- Total subscribers were 282,100 as of December 31, 2014, compared to
277,100 for the third quarter 2014 and 273,600 for the fourth quarter
2013;
-- Total subscriber gross additions for the fourth quarter 2014 were
28,300, compared to 24,600 for the third quarter 2014 and 29,200 for the
same period of 2013. Total subscriber net additions for the fourth
quarter 2014 were 5,000, compared to 3,100 for the third quarter 2014
and 7,300 for the same period of 2013; and
-- Total subscriber gross additions for the year 2014 were 100,400 compared
to 97,600 for the year 2013. Total subscriber net additions for the
year 2014 were 14,600, compared to 19,000 for the year 2013.
Postpay Subscribers
-- Postpay subscriber gross additions for the fourth quarter 2014 were
18,600, compared to 15,500 for the third quarter 2014 and 20,600 for the
fourth quarter 2013;
-- Net postpay subscriber additions were 4,700 for the fourth quarter 2014,
compared to 3,000 for the third quarter 2014 and 7,800 for the fourth
quarter 2013;
-- Postpay churn for the fourth quarter 2014 was 2.2%, compared to 2.1% for
the same period of 2013;
-- ARPA was $132.12 for the fourth quarter 2014, compared to $136.49 for
the same period of 2013; and
-- As of December 31, 2014, total postpay subscribers were 220,100.
Prepay Subscribers
-- Prepay subscriber gross additions for the fourth quarter 2014 were
9,700, compared to 9,100 for the third quarter 2014 and 8,600 for the
fourth quarter 2013;
-- Net prepay subscriber additions (losses) were 300 for the fourth quarter
2014, compared to 100 for the third quarter 2014 and (500) for the
fourth quarter 2013;
-- Prepay churn for the fourth quarter 2014 was 5.0%, compared to 4.6% for
the fourth quarter 2013; and
-- As of December 31, 2014, total prepay subscribers were 62,000.
Net Income
Net income (loss) after net income attributable to noncontrolling interests was $(53.6) million, or $(2.54) per basic share, for the year 2014, compared to $24.7 million, or $1.13 per diluted share, for the year 2013. Full year 2014 results included $91.5 million in impairment and restructuring charges related to the previously announced wind down of operations in the Company's Eastern Markets.
Business Outlook
For the year ending December 31, 2015, the Company expects its full year 2015 Adjusted EBITDA to between $100.0 million and $108.0 million, unchanged from the Company's preliminary outlook provided on December 2, 2014. This Adjusted EBITDA excludes restructuring costs and results from Eastern Markets business. Full year 2015 capital expenditures are expected to be between $95.0 and $105.0 million.
Conference Call
The Company will host a conference call with investors and analysts to discuss its fourth quarter 2014 results this morning, February 26, 2015, at 8:30 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 March 6, 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, 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 282,100 retail subscribers based in 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 network services to Sprint Corporation in portions of its western Virginia and West Virginia territories for all Sprint CDMA and LTE 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"); the approval and timing of Eastern Markets' spectrum sale; our ability to realize the expected proceeds, cost savings and other benefits from the wind down of our Eastern Markets; the timing and ultimate completion of any tower sales; 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; 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 and Quarterly Reports filed on Form 10-Q.
Exhibits:
-- Condensed Consolidated Balance Sheets
-- Condensed Consolidated Statements of Operations
-- Reconciliation of Net Income (Loss) Attributable to NTELOS Holdings
Corp. to Adjusted EBITDA
-- Key Metrics
-- ARPA Reconciliation - Postpay
-- Western Markets Proforma
-- Western Markets Condensed Consolidated Statements of Operating
Income
-- Western Markets Reconciliation of Net Income (Loss) 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)
December 31, 2014 December 31, 2013
----------------- -----------------
(In thousands)
ASSETS
Current Assets
Cash $73,546 $88,441
Restricted cash 2,167 2,167
Accounts receivable, net 43,668 37,741
Inventories and supplies 18,297 23,962
Deferred income taxes 24,770 10,650
Prepaid expenses 13,543 15,891
Other current assets 4,626 4,916
180,617 183,768
------- -------
Assets Held for Sale 64,271 -
Securities and Investments 1,522 1,499
Property, Plant and Equipment, net 289,947 319,376
Intangible Assets
Goodwill 63,700 63,700
Radio spectrum licenses 44,933 131,834
Customer relationships and trademarks, net 5,084 6,985
Deferred Charges and Other Assets 18,474 9,089
Total Assets $668,548 $716,251
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Current portion of long-term debt $5,816 $5,410
Accounts payable 24,541 24,748
Dividends payable - 9,034
Accrued expenses and other current liabilities 41,706 40,399
72,063 79,591
------ ------
Long-Term Debt 519,592 484,956
Other Long-Term Liabilities 109,845 107,911
Stockholders' Equity (Deficit) (32,952) 43,793
Total Liabilities and Stockholders' Equity (Deficit) $668,548 $716,251
======== ========
NTELOS Holdings Corp.
---------------------
Condensed Consolidated Statements of Operations
-----------------------------------------------
Three Months Ended Twelve Months Ended
------------------ -------------------
(Unaudited) (Unaudited)
(In thousands, except per share
amounts) December 31, 2014 December 31, 2013 December 31, 2014 December 31, 2013
------------------------------- ----------------- ----------------- ----------------- -----------------
Operating Revenues $128,319 $121,766 $487,834 $491,882
Operating Expenses
Cost of sales and services 63,177 57,984 223,140 199,004
Customer operations 27,394 27,914 105,774 106,235
Corporate operations 10,582 11,018 42,195 42,305
Restructuring 3,663 - 3,663 -
Impairment and other charges 87,853 - 87,853 -
Depreciation and amortization 18,990 17,486 76,459 72,944
Gain on sale of intangible assets - - - (4,442)
211,659 114,402 539,084 416,046
------- ------- ------- -------
Operating Income (Loss) (83,340) 7,364 (51,250) 75,836
Other Expense
Interest expense (8,052) (7,504) (32,696) (29,743)
Other income (expense), net 80 (161) (1,114) (810)
--- --- -----
(7,972) (7,665) (33,810) (30,553)
------ ------ ------- -------
Income (Loss) before Income Taxes (91,312) (301) (85,060) 45,283
Income Tax Expense (Benefit) (35,411) 80 (32,894) 18,544
------- --- ------- ------
Net Income (Loss) (55,901) (381) (52,166) 26,739
Net Income Attributable to
Noncontrolling Interests (307) (403) (1,468) (2,061)
Net Income (Loss) Attributable to
NTELOS Holdings Corp. $(56,208) $(784) $(53,634) $24,678
======== ===== ======== =======
Earnings (Loss) per Share Attributable to NTELOS Holdings Corp.:
Basic $(2.66) $(0.04) $(2.54) $1.17
===== ====== ======
Weighted average shares outstanding - basic 21,146 21,061 21,111 21,026
====== ====== ======
Diluted $(2.66) $(0.04) $(2.54) $1.13
Weighted average shares outstanding - diluted 21,146 21,061 21,111 21,826
====== ====== ======
Cash Dividends Declared per Share -
Common Stock $ - $0.42 $0.84 $1.68
================= ===== ===== =====
NTELOS Holdings Corp.
---------------------
Reconciliation of Net Income (Loss) Attributable to NTELOS Holdings Corp. to Adjusted EBITDA
(In thousands)
-------------
Three Months Ended Twelve Months Ended
------------------ -------------------
December 31, 2014 December 31, 2013 December 31, 2014 December 31, 2013
----------------- ----------------- ----------------- -----------------
Net income (loss) attributable to NTELOS Holdings Corp. $(56,208) $(784) $(53,634) $24,678
Net income attributable to noncontrolling interests 307 403 1,468 2,061
--- --- ----- -----
Net income (loss) $(55,901) $(381) $(52,166) $26,739
Interest expense 8,052 7,504 32,696 29,743
Income tax expense (benefit) (35,411) 80 (32,894) 18,544
Other expense (income), net (80) 161 1,114 810
--------------------------- --- --- ----- ---
Operating income (loss) $(83,340) $7,364 $(51,250) $75,836
Depreciation and amortization 18,990 17,486 76,459 72,944
Impairment and other charges 87,853 - 87,853 -
Restructuring 3,663 - 3,663 -
Gain on sale of intangible assets - - - (4,442)
Accretion of asset retirement obligations 362 171 1,288 622
Equity-based compensation 778 1,330 2,969 5,553
SNA straight-line adjustment (1) 3,065 - 8,173 -
Other (2) - 375 3,280 375
-------- --- --- ----- ---
Adjusted EBITDA $31,371 $26,726 $132,435 $150,888
======= ======= ======== ========
(1) Adjustment
for impact
of
recognizing
a portion
of the
billed SNA
contract
revenues on
a straight-
line basis.
(2) Other
includes
legal and
advisory
fees
related to
Amended and
Restated
Sprint
agreement
and certain
employee
separation
charges.
NTELOS Holdings Corp.
---------------------
Key Metrics Twelve Months Ended
----------- -------------------
Quarter Ended: 12/31/2013 3/31/2014 6/30/2014 9/30/2014 12/31/2014 12/31/2013 12/31/2014
-------------- ---------- --------- --------- --------- ---------- ---------- ----------
Subscribers
-----------
Beginning Subscribers 457,100 464,600 468,000 458,100 457,200 439,600 464,600
Postpay 298,000 306,700 306,800 308,200 310,200 297,400 306,700
Prepay 159,100 157,900 161,200 149,900 147,000 142,200 157,900
Gross Additions 50,800 45,400 39,000 41,400 40,400 183,900 166,200
Postpay 28,700 20,200 20,400 20,800 22,500 85,200 83,900
Prepay 22,100 25,200 18,600 20,600 17,900 98,700 82,300
Disconnections (1) 43,300 42,000 38,600 42,300 48,700 158,900 171,600
Postpay 19,800 19,900 17,100 18,900 22,700 72,400 78,600
Prepay 23,500 22,100 21,500 23,400 26,000 86,500 93,000
Net Additions (Losses) (1) 7,500 3,400 400 (900) (8,300) 25,000 (5,400)
Postpay 8,900 300 3,300 1,900 (200) 12,800 5,300
Prepay (1,400) 3,100 (2,900) (2,800) (8,100) 12,200 (10,700)
Ending Subscribers (1) 464,600 468,000 458,100 457,200 448,900 464,600 448,900
Postpay 306,700 306,800 308,200 310,200 310,100 306,700 310,100
Prepay 157,900 161,200 149,900 147,000 138,800 157,900 138,800
Churn, net (1) 3.1% 3.0% 2.8% 3.1% 3.6% 2.9% 3.1%
Postpay 2.2% 2.2% 1.8% 2.0% 2.4% 2.0% 2.1%
Prepay 4.9% 4.6% 4.5% 5.3% 6.0% 4.7% 5.1%
Other Items
-----------
ARPA Statistics
---------------
ARPA $136.89 $137.47 $137.20 $134.18 $132.48 $134.44 $135.31
Postpay Accounts (2) 141,200 138,400 140,500 142,100 143,400 141,200 143,400
Postpay Subscribers per Account (2) 2.2 2.2 2.2 2.2 2.2 2.2 2.2
Strategic Network Alliance Revenues (000's) (3)
----------------------------------------------
Billed Revenue $39,326 $39,284 $37,997 $38,144 $38,329 $167,729 $153,754
Straight-Line Adjustment NA NA (2,043) (3,065) (3,065) NA (8,173)
Spectrum Lease
Consideration NA NA 822 1,234 1,233 NA 3,289
--------------- --- --- --- ----- ---
SNA Revenues $39,326 $39,284 $36,776 $36,313 $36,497 $167,729 $148,870
Network Statistics
------------------
Licensed Population (millions) 8.0 8.0 8.0 8.0 8.0 8.0 8.0
Covered Population (millions) 6.0 6.0 6.0 6.0 6.0 6.0 6.0
Total Cell Sites 1,444 1,444 1,445 1,446 1,453 1,444 1,453
(1) During the
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,
and the twelve
months ended
December 31,
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
straight-line
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 Twelve Months Ended
----------------------------- ------------------ -------------------
Average Monthly Revenue per Account (ARPA) (1) December 31, 2014 December 31, 2013 December 31, 2014 December 31, 2013
--------------------------------------------- ----------------- ----------------- ----------------- -----------------
(In thousands, except for accounts and ARPA)
Operating revenues $128,319 $121,766 $487,834 $491,882
Less: prepay service revenues (14,516) (16,956) (63,203) (65,300)
Less: equipment revenues (19,301) (6,572) (43,154) (25,245)
Less: wholesale and other adjustments (37,865) (40,525) (153,014) (172,754)
Postpay service revenues $56,637 $57,713 $228,463 $228,583
Average number of postpay accounts 142,500 140,500 140,700 141,700
Postpay ARPA $132.48 $136.89 $135.31 $134.44
============ ======= ======= ======= =======
(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 Proforma (1)
---------------------------
Condensed Consolidated Statements of Operating Income
-----------------------------------------------------
Three Months Ended Twelve Months Ended
------------------ -------------------
(Unaudited) (Unaudited)
(In thousands, except per share amounts) December 31, 2014 December 31, 2013 December 31, 2014 December 31, 2013
--------------------------------------- ----------------- ----------------- ----------------- -----------------
Operating Revenues $96,652 $88,555 $360,134 $359,766
Operating Expenses
Cost of sales and services 45,486 39,223 153,224 131,903
Customer operations 18,296 16,356 64,482 60,859
Corporate operations 6,710 6,864 27,300 25,911
Restructuring 982 - 982 -
Depreciation and amortization 14,701 12,454 54,999 53,807
Gain on sale of intangible assets - - - (4,442)
86,175 74,897 300,987 268,038
------ ------ ------- -------
Operating Income $10,477 $13,658 $59,147 $91,728
======= ======= ======= =======
(1) Proforma
Western
Markets
is
defined
as
Holdings
less
Eastern
Markets.
NTELOS Western Markets Proforma (1)
----------------------------------
Reconciliation of Net Income (Loss) Attributable to NTELOS Holdings Corp. to Western Markets Proforma Adjusted EBITDA
(In thousands)
-------------
Three Months Ended Twelve Months Ended
------------------ -------------------
December 31, 2014 December 31, 2013 December 31, 2014 December 31, 2013
----------------- ----------------- ----------------- -----------------
Net income (loss) attributable to NTELOS
Holdings Corp. $(56,208) $(784) $(53,634) $24,678
Net income attributable to noncontrolling
interests 307 403 1,468 2,061
--- --- ----- -----
Net income (loss) $(55,901) $(381) $(52,166) $26,739
Operating loss attributable to Eastern
Markets 93,817 6,294 110,397 15,893
Interest expense 8,052 7,504 32,696 29,743
Income tax expense (benefit) (35,411) 80 (32,894) 18,544
Other expense (income), net (80) 161 1,114 809
--------------------------- --- --- ----- ---
Operating income $10,477 $13,658 $59,147 $91,728
Depreciation and amortization 14,701 12,453 54,999 53,807
Restructuring (2) 982 - 982 -
Gain on sale of intangible assets - - - (4,442)
Accretion of asset retirement obligations 241 120 878 447
Equity-based compensation 731 898 2,272 3,832
SNA straight-line adjustment (3) 3,065 - 8,173 -
Other 4 - 375 3,279 375
------- --- --- ----- ---
Adjusted EBITDA $30,197 $27,504 $129,730 $145,747
======= ======= ======== ========
(1) Proforma
Western
Markets is
defined as
Holdings
less Eastern
Markets.
(2) Restructuring
costs
attributable
to Corporate
and Western
Markets.
(3) Adjustment
for impact
of
recognizing
a portion of
the billed
SNA contract
revenues on
a straight-
line basis.
4 Other
includes
legal and
advisory
fees related
to Amended
and Restated
Sprint
agreement
and certain
employee
separation
charges.
NTELOS Western Markets Proforma (1)
----------------------------------
Key Metrics Twelve Months Ended
----------- -------------------
Quarter Ended: 12/31/2013 3/31/2014 6/30/2014 9/30/2014 12/31/2014 12/31/2013 12/31/2014
-------------- ---------- --------- --------- --------- ---------- ---------- ----------
Subscribers
-----------
Beginning Subscribers 266,300 273,600 277,100 274,000 277,100 254,600 273,600
Postpay 201,200 208,800 210,300 212,400 215,500 199,600 208,800
Prepay 65,100 64,800 66,800 61,600 61,600 55,000 64,800
Gross Additions 29,200 25,000 22,500 24,600 28,300 97,600 100,400
Postpay 20,600 14,600 14,700 15,500 18,600 58,300 63,400
Prepay 8,600 10,400 7,800 9,100 9,700 39,300 37,000
Disconnections (2) 21,900 21,500 19,500 21,500 23,300 78,600 85,800
Postpay 12,800 12,900 11,200 12,500 13,900 46,600 50,500
Prepay 9,100 8,600 8,300 9,000 9,400 32,000 35,300
Net Additions (Losses) (2) 7,300 3,500 3,000 3,100 5,000 19,000 14,600
Postpay 7,800 1,700 3,500 3,000 4,700 11,700 12,900
Prepay (500) 1,800 (500) 100 300 7,300 1,700
Ending Subscribers (2) 273,600 277,100 274,000 277,100 282,100 273,600 282,100
Postpay 208,800 210,300 212,400 215,500 220,100 208,800 220,100
Prepay 64,800 66,800 61,600 61,600 62,000 64,800 62,000
Churn, net (2) 2.7% 2.6% 2.3% 2.6% 2.8% 2.5% 2.6%
Postpay 2.1% 2.0% 1.8% 1.9% 2.2% 1.9% 2.0%
Prepay 4.6% 4.4% 4.2% 4.9% 5.0% 4.3% 4.6%
Other Items
-----------
ARPA Statistics
---------------
ARPA $136.49 $136.60 $136.61 $133.83 $132.12 $133.62 $134.75
Postpay Accounts (3) 93,100 91,400 93,700 95,500 98,700 93,100 98,700
Postpay Subscribers per Account (3) 2.2 2.3 2.3 2.3 2.2 2.2 2.2
Strategic Network Alliance Revenues (000's) 4
---------------------------------------------
Billed Revenue $39,326 $39,284 $37,997 $38,144 $38,329 $167,729 $153,754
Straight-Line Adjustment NA NA (2,043) (3,065) (3,065) NA (8,173)
Spectrum Lease Consideration NA NA 822 1,234 1,233 NA 3,289
---------------------------- --- --- --- ----- ---
SNA Revenues $39,326 $39,284 $36,776 $36,313 $36,497 $167,729 $148,870
Network Statistics
------------------
Licensed Population (millions) 4.4 4.4 4.4 4.4 4.4 4.4 4.4
Covered Population (millions) 3.1 3.1 3.1 3.1 3.1 3.1 3.1
Total Cell Sites 999 999 999 1,000 1,004 999 1,004
(1) Proforma
Western
Markets is
defined as
Holdings less
Eastern
Markets.
(2) During the
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
4 Effective
5/1/14, SNA
Revenues
include the
impact of
recognizing
the fixed fee
element of SNA
contract
revenues on a
straight-line
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 Western Markets Proforma (1)
----------------------------------
ARPA Reconciliation - Postpay Three Months Ended Twelve Months Ended
----------------------------- ------------------ -------------------
Average Monthly Revenue per Account (ARPA) (2) December 31, 2014 December 31, 2013 December 31, 2014 December 31, 2013
--------------------------------------------- ----------------- ----------------- ----------------- -----------------
(In thousands, except for accounts and ARPA)
Operating revenues $96,652 $88,555 $360,134 $359,766
Less: prepay service revenues (6,235) (6,620) (25,784) (25,048)
Less: equipment revenues (14,827) (3,987) (30,056) (14,847)
Less: wholesale and other adjustments (37,369) (40,330) (152,332) (172,291)
Postpay service revenues $38,221 $37,618 $151,962 $147,580
Average number of postpay accounts 96,400 91,900 94,000 92,000
Postpay ARPA $132.12 $136.49 $134.75 $133.62
============ ======= ======= ======= =======
(1) Proforma
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.
Investor Relations Contacts:
Jeffrey Goldberger / Brad Nelson
KCSA Strategic Communications
P: 212-896-1249 / 212-896-1217
Email: jgoldberger@kcsa.com / bnelson@kcsa.com
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ntelos-holdings-corp-reports-fourth-quarter-and-year-end-2014-results-300041873.html
SOURCE NTELOS Holdings Corp.
