Alamosa PCS Announces Strong Subscriber Growth During Fourth Quarter
LUBBOCK, Texas--(BUSINESS WIRE)--March 24, 2000--Alamosa PCS Holdings Inc. (Nasdaq:APCS), The 1999 Sprint PCS Affiliate of the Year, today reported results for the fourth quarter and year ended Dec. 31, 1999. Alamosa experienced strong subscriber growth with year-end subscribers of 31,876, an addition of 21,998 subscribers during the three-month period. This growth has continued into the first quarter of 2000 with over 46,700 subscribers as of March 13, 2000.
"We are very pleased with our performance in the fourth quarter and our subsequent successful initial public offering (IPO) in February, including the issuance of our Senior Discount Notes," said David E. Sharbutt, chairman and chief executive officer. "These additional resources position Alamosa to accelerate our build-out and pursue expansion opportunities."
On Feb. 3, 2000 the Company raised $195.3 million net of underwriting discount in its IPO along with $181.5 million net of underwriting discount in its issuance of Senior Discount Notes. Part of these proceeds will be used for capital expenditures as Alamosa continues to build-out its network in Texas, New Mexico, Arizona, Colorado, California and Wisconsin where it has approximately 8.4 million licensed pops under its agreement with Sprint PCS.
"We are extremely pleased with our affiliation with Sprint PCS as they have grown to become the nation's largest all-digital wireless network over the past three years," continued Sharbutt. "We launched eleven markets from June 1999 to October 1999, including our largest markets, Albuquerque and El Paso, and plan on 12 more in 2000 to continue the expansion of the Sprint PCS network."
Revenues for the fourth quarter and year ended Dec. 31, 1999 were $6,984,000 and $8,984,000, respectively. Earnings before interest, taxes, depreciation and amortization, or EBITDA, excluding non-cash compensation were negative ($9,927,000) for the fourth quarter and negative ($19,416,000) for the year.
Average revenue per subscriber (ARPU) without roaming was approximately $60 and with roaming was approximately $92 in the fourth quarter. Churn was just under three percent and the Company achieved penetration of covered pops of just over one percent.
Capital expenditures for the year were approximately $86 million with $17.6 million in the fourth quarter. "We have an aggressive build-out plan for 2000 through 2002 where we plan to invest over $250 in capital expenditures. This includes the additions in December 1999 to our footprint from Sprint PCS in Arizona and Wisconsin made possible by our ability to execute and our ability to access the public markets," concluded Sharbutt.
Alamosa PCS Holdings Inc., The 1999 Sprint PCS Affiliate of the Year, is a provider of wireless personal communication services in the southwestern and midwestern United States. Alamosa PCS has the exclusive right to provide digital wireless personal communication services under the Sprint and Sprint PCS brand names throughout its designated territory primarily located in Texas, New Mexico, Arizona, Colorado and Wisconsin. With a territory that includes a licensed population of approximately 8.4 million residents, Alamosa PCS is one of the nation's largest Sprint PCS affiliates based on the size of the population in its territory.
Statements contained in this news release regarding plans of network build-out and expansion should be considered forward-looking statements that are subject to various risks and uncertainties. Such forward looking statements are made pursuant to the "safe-harbor" provisions of the private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. A variety of factors could cause actual results to differ materially from those anticipated in Alamosa's forward-looking statements, including the following factors: Alamosa's dependence on its affiliation with Sprint PCS; greater than anticipated capital requirements or operating losses; an adequate supply of infrastructure and subscriber equipment; shifts in populations or network focus; changes or advances in technology; acquisitions of other markets; failures by third-party vendors, suppliers, consultants, contractors and local exchange carriers; and adverse changes in financial position, condition or results of operations. For a detailed discussion of these and other cautionary statements and factors that could cause actual results to differ from Alamosa's forward-looking statements, please refer to Alamosa's filings with the Securities and Exchange Commission, especially in the "risk factors" sections of Alamosa's Prospectuses filed on February 4, 2000, its Form 10-K for the year ended Dec. 31, 1999 and in subsequent filings with the Securities and Exchange Commission.
ALAMOSA PCS HOLDINGS INC.
(formerly ALAMOSA PCS LLC)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the period
July 16, 1998
Year (Inception)
Ended through
December 31, December 31,
1999 1998
------------ ------------
Revenues:
Service revenues $6,533,623 $--
Product sales 2,450,090 --
------------ ------------
Total revenue 8,983,713 --
------------ ------------
Costs and expenses:
Cost of service
and operations 6,616,266 --
Cost of service
and operations -
related parties 824,210 --
Cost of product sold 2,403,306 --
Selling and marketing 13,941,917 --
Selling and marketing
- related parties 404,561 --
General and
administrative
expenses
(excluding non-cash
compensation
expense) 3,711,548 949,445
Non-cash compensation
expense 8,199,511 --
General and
administrative -
related parties 497,427 6,886
Depreciation and
amortization 3,056,923 2,063
------------ ------------
Total costs and
expenses 39,655,669 958,394
------------ ------------
Loss from operations (30,671,956) (958,394)
Interest and other income 477,390 34,589
Interest expense (2,641,293) (17)
------------ ------------
Net loss $(32,835,859) $(923,822)
============ ============
Pro forma information:
Net loss $(32,835,859) $(923,822)
Pro forma income
tax adjustment:
Income tax benefit 10,854,083 317,592
Deferred tax
valuation allowance (10,854,083) (317,592)
------------ ------------
Pro forma net loss $(32,835,859) $(923,822)
============ ============
Pro forma basic
and diluted weighted
average common
shares outstanding 48,500,008 48,500,008
============ ============
Basic and diluted
pro forma net loss
per common share $(0.68) $(0.02)
============ ============
Three Months Ended
December 31,
1999 1998
------------ ------------
Revenues:
Service revenues $5,346,615 $--
Product sales 1,637,038 --
------------ ------------
Total revenue 6,983,653 --
------------ ------------
Costs and expenses:
Cost of service
and operations 4,734,258 --
Cost of service
and operations -
related parties 622,599 --
Cost of product sold 1,376,030 --
Selling and marketing 8,701,731 --
Selling and marketing
- related parties 22,750 --
General and
administrative
expenses
(excluding non-cash
compensation
expense) 1,299,612 548,814
Non-cash compensation
expense 1,377,474 --
General and
administrative -
related parties 153,671 6,886
Depreciation and
amortization 2,120,187 2,063
------------ ------------
Total costs and
expenses 20,408,312 557,763
------------ ------------
Loss from operations (13,424,659) (557,763)
Interest and other income 32,644 34,419
Interest expense (1,755,425) (17)
------------ ------------
Net loss $(15,147,440) $(523,361)
============ ============
Pro forma information:
Net loss $(15,147,440) $(523,361)
Pro forma income
tax adjustment:
Income tax benefit 5,007,074 172,709
Deferred tax
valuation allowance (5,007,074) (172,709)
------------ ------------
Pro forma net loss $(15,147,440) $(523,361)
============ ============
Pro forma basic
and diluted weighted
average common
shares outstanding 48,500,008 48,500,008
============ ============
Basic and diluted
pro forma net loss
per common share $(.31) $(0.01)
============ ============
ALAMOSA PCS HOLDINGS INC.
(formerly ALAMOSA PCS LLC)
CONSOLIDATED BALANCE SHEETS
Dec. 31, Dec. 31,
1999 1998
------------- -------------
ASSETS
Current assets:
Cash and cash
equivalents $5,655,711 $13,529,077
Accounts receivable,
net of allowance
for doubtful accounts
of $161,704 at
Dec. 31, 1999 1,675,636 --
Inventory 5,777,375 --
Prepaid expenses
and other assets 882,516 52,046
------------- -------------
Total current assets 13,991,238 13,581,123
Property and
equipment, net 84,713,724 2,092,762
Note receivable
from officer 100,000 --
Debt issuance
costs, net 3,743,308 --
Restricted cash 518,017 --
Other noncurrent assets 1,425,912 --
------------- -------------
Total assets $104,492,199 $15,673,885
============= =============
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued expenses $15,153,068 $395,355
Accounts payable to
related parties 1,182,225 450,496
Current installments
of capital leases 21,818 20,145
Bank line of credit 363,665 23,637
Microwave relocation
obligation 3,578,155 --
------------- -------------
Total current
liabilities 20,298,931 889,633
Capital lease obligations,
noncurrent 827,024 708,074
Long-term debt 71,926,414 --
------------- -------------
Total liabilities 93,052,369 1,597,707
------------- -------------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01
par value; 10,000,000
shares authorized; no
shares issued -- --
Common stock, $.01 par
value; 290,000,000
shares authorized,
48,500,008 issued
and outstanding 485,000 485,000
Additional paid-in
capital 50,824,876 14,515,000
Deficit accumulated during
the development stage (33,759,681) (923,822)
Unearned compensation (6,110,365) --
------------- -------------
Total stockholders'
equity 11,439,830 14,076,178
------------- -------------
Total liabilities and
stockholders' equity $104,492,199 $15,673,885
============= =============
CONTACT:
Alamosa PCS, Lubbock
Kendall Cowan, 806/722-1100
CFO
kcowan@sprintpcslbb.com
or
Easterly Investor Relations, Houston
Ken Dennard, 713/529-6600
Managing Partner
kdennard@easterly.com
KEYWORD: TEXAS NEW MEXICO ARIZONA COLORADO WISCONSIN
BW0271 MAR 24,2000
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