<font color=red>BW: Tritel, Inc. Reports 49% Overall Subscriber
Growth and 50% Third Quarter 2000 Revenue
Increase
famulus.msnbc.com
Tritel, Inc. Reports 49% Overall Subscriber
Growth and 50% Third Quarter 2000 Revenue
Increase
BUSINESS WIRE
JACKSON, Miss., Nov. 1 — Tritel, Inc.,
(NASDAQNM:TTEL), a member of the AT&T
Wireless Network and a leading provider of
personal communications services (PCS) in the
Southeastern U.S., today reported operating
statistics for the third quarter and nine-months
ended September 30, 2000.
Tritel is one of three AT&T Wireless Services affiliated companies that
markets PCS services under the SunCom and AT&T brand names. Tritel is
licensed to provide PCS services to approximately 14 million people in the
Southeastern U.S., with contiguous markets in Kentucky, Tennessee,
Mississippi, Alabama, Indiana and Georgia.
The total subscriber base grew to 156,100 as of September 30, compared
with 104,400 at the end of the second quarter and 63,800 at the end of the first
quarter. The third quarter net adds of 51,700 subscribers represent a 49%
increase in the overall Tritel subscriber base and a 27% increase over the
second quarter net adds. Tritel began offering service to customers in
September 1999. Third quarter average revenue per subscriber (ARPU),
excluding outcollect roaming revenues, was $58.21, compared with $58.95 in
the second quarter and $50.99 for the first quarter. Third quarter ARPU,
including outcollect roaming revenues, was $93.54, compared with $97.59 in
the second quarter and $96.62 for the first quarter. Third quarter subscriber
(prepaid and postpaid) churn was 2.02%, compared with 1.48% for the
second quarter and 1.22% in the first quarter. Third quarter roaming minutes
were 78 million compared with 58 million minutes in the second quarter and 41
million minutes in the first quarter.
"We are very pleased with the third quarter results," said E.B. Martin, chief
financial officer. "Our high value postpaid customers, who represent 95% of our
subscriber base, have kept our postpaid churn at 1.45% compared with 1.45%
for the second quarter and 1.17% in the first quarter. Our low churn rate bears
great testimony to our focus on execution. Our well trained customer care
teams, our extensive network and our persistent sales teams continue to have a
direct effect on our low churn rate," continued Martin.
Total revenues for the third quarter increased to $38.8 million, up 50%
compared with $25.8 million in the second quarter and up 150% from $15.5
million in the first quarter. Total revenues for the nine months were $80.1
million. Roaming revenues for the third quarter were $13.0 million, compared
with $9.3 million in the second quarter and $5.9 million in the first quarter.
Earnings before interest, taxes, depreciation and amortization (EBITDA),
excluding non-cash, stock-based compensation, were negative $37.8 million,
compared with a negative $35.0 million for the second quarter and negative
$29.9 million for the first quarter.
During the third quarter, Tritel launched service in the following new
markets: Bowling Green and Owensboro, Kentucky; Florence, Muscle Shoals,
Opelika, Auburn and Gadsden, Alabama; Brookhaven, McComb, Columbus,
Starkville, Tupelo, Laurel, Greenville and Greenwood, Mississippi. Tritel ended
the quarter with 37 markets in operation.
"We are very gratified by the continued strong growth we experienced in
the third quarter," said William Mounger, chairman and chief executive officer.
"Operationally, we continue to exceed our goals. As of September 15, we had
completed our three year buildout plan in just 21 months and we are on track to
complete our five year buildout plan by the end of the year, three years ahead of
schedule. We currently have 1,289 cell sites and five switches in service. We
have 109 cell sites ready to turn on and another 152 permitted and under
construction. Because of our strong market demographics, our extensive
coverage area and the dedication of our operational teams, we have set a
performance trajectory that puts us on track to lead the wireless industry in the
Southeast."
"We are also pleased that the Federal Communications Commission
(FCC) has voted to conditionally approve our merger with our SunCom
neighbor, TeleCorp PCS, Inc. (NASDAQNM:TLCP). Together, we will forge
the two companies into a powerful force within our own high-growth service
areas and within the AT&T Wireless Services affiliate network," Mounger
continued.
On August 9, the shareholders of both Tritel and TeleCorp PCS voted
overwhelmingly to merge the two companies in an all-stock, tax-free transaction
under which Tritel shareholders would receive 0.76 shares of a new holding
company to be called TeleCorp PCS, Inc., for each Tritel common share.
TeleCorp PCS shareholders would receive one share of the new holding
company for each TeleCorp PCS common share. AT&T would own
approximately 23% of the new holding company shares.
In light of the FCC's approval of the planned merger between Tritel and
TeleCorp, Tritel decided to postpone its third quarter conference call that had
been scheduled for 11:00am ET today. The company will reschedule the call
following completion of the merger, which the company anticipates will occur
soon.
Summary Financial Information:
(Dollars in thousands)
Quarter Ended Quarter Ended Nine Months
6/30/00 9/30/00 ended 9/30/00
Total Revenue $ 25,808 $ 38,771 $ 80,076
EBITDA Loss (34,957) (37,797) (102,615)
Depreciation and
Amortization 14,324 20,194 45,069
Stock Based
Compensation Expense (46,186) 16,980 79,092
(Benefit)
Operating Loss (3,095) (74,971) (226,776)
Interest Expense, Net (8,832) (12,235) (26,759)
Income Tax Benefit 570 782 1,857
Net Loss $ (11,357) $ (86,424) $(251,678)
Summary Financial Information (continued):
(Dollars in thousands)
As of As of
9/30/00 12/31/99
Cash and Cash Equivalents $ 168,786 $ 609,269
Other Current Assets 49,982 21,295
Property and Equipment, Net 503,436 262,343
FCC Licensing Costs, Net 202,281 201,946
Other Assets 93,037 101,509
Total Assets $1,017,522 $1,196,362
Current Liabilities $ 83,102 $ 114,247
Long-term Debt 578,740 557,716
Other Liabilities 40,171 37,367
Total Liabilities 702,013 709,330
Series A Preferred Stock 106,386 99,586
Stockholders' Equity 209,123 387,446
Total Liabilities and Equity $1,017,522 $1,196,362
Summary Operational Information:
Quarter Quarter Quarter Quarter Nine Months
Ended Ended Ended Ended Through
12/31/99 3/31/00 6/30/00 9/30/00 9/30/00
Beginning
subscribers 300 24,600 63,800 104,400 24,600
Net activations 24,300 39,200 40,600 51,700 131,500
Ending
subscribers 24,600 63,800 104,400 156,100 156,100
Postpaid
churn 1.01% 1.17% 1.45% 1.45% 1.37%
Overall
churn 1.08% 1.22% 1.48% 2.02% 1.68%
ARPU -
postpaid $50.99 $58.95 $58.21 $57.19
ARPU
(including
outcollect
rev.) $96.62 $97.59 $93.54 $95.41
Total Cost
per gross
add $444 $490 $436 $461
Cell Sites
in Service 709 944 1,208 1,208
Number of
employees 777 987 1,142 1,142
Total Home
(on system)
Minutes 30,839,000 70,292,000 101,089,000 202,220,000
Total Roaming
Minutes 41,078,000 58,120,000 78,066,000 177,264,000
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