Earnings released:
PEOPLE'S CHOICE ANNOUNCES 4TH QUARTER AND YEAR-END 1996 RESULTS
SHELTON, Conn., March 14 /PRNewswire/ -- People's Choice TV Corp.
(Nasdaq-NNM: PCTV) today reported for the fiscal year ending December
31, 1996 revenues of $33,425,000 compared with 1995 revenues of $26,004,
000, an increase of 29 percent. The Company had 1996 fourth quarter
revenues of $8,211,000 compared with 1995 fourth quarter revenues of $8,
179,000.
Net loss for the Company was $75,887,000 or $6.26 per share for the
year ending December 31, 1996 compared with a net loss of $53,235,000
or $5.23 per share for 1995, an increase of 43 percent (in net loss
dollars). Net loss for the 1996 fourth quarter was $24,074,000 or
$1.95 per share, compared with a net loss for the 1995 fourth quarter
of $21,070,000 or $1.72 per share, an increase of 14 percent (in net
loss dollars). The net loss for the year ending December 31, 1995
includes an extraordinary gain of $1,197,000 or $.11 per share.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
was negative $11,778,000 for the year ended December 31, 1996 compared
to negative $17,649,000 for the year ended December 31, 1995. EBITDA
was negative $2,870,000 for the 1996 fourth quarter compared to
negative $5,754,000 for the 1995 fourth quarter. The year and three
month period ended December 31, 1996 includes $580,000 and $490,000,
respectively, in digital and internet testing expenses and the year
ended December 31, 1996 also includes a $616,000 non-cash expense
associated with the settlement of a lawsuit. Excluding these charges,
EBITDA was negative $10,582,000 and $2,380,000 for the year and three
months ended December 31, 1996, respectively. Excluding the
aforementioned settlement of the lawsuit, EBITDA was negative
$2,312,000 for the 1996 third quarter. At year end 1996, PCTV had $104,
702,000 in cash and marketable securities.
Revenues and net loss increased for the year and fourth quarter ended
December 31, 1996 compared to the comparable 1995 periods primarily as
a result of the acquisitions of the Chicago and Detroit systems in late
1995, the initial development of a digital system, additional interest
expense incurred on the Company's Senior Discount Notes issued in May
1995, the write down of a note receivable, the non-cash settlement of a
lawsuit and increased depreciation expense. The year ended December
31, 1995 was negatively affected by excessive delinquent accounts in
the Houston system and by the inclusion of the pro-rata amount of net
loss from Preferred Entertainment, Inc. for such period.
The Company had 77,800 customers at December 31, 1996 compared to
80,100 customers at December 31, 1995, a decrease of 3 percent from
1995. Customer count at September 30, 1996 was 77,500.
The Company has previously disclosed its plan to suspend growing its
analog customer base in 1996 in order to conserve capital as the
Company positions itself for the implementation of digital video
compression technology in 1997. Already in use in satellite
distribution of video, digital compression will enable the Company to
substantially increase its channel capacity and allow the Company to
use a portion of its spectrum for other telecommunication services.
The Company, together with CS Wireless Systems, Inc., recently ordered
600,000 digital set-top boxes from the NextLevel Broadband Group of
General Instrument Corporation. The Company anticipates launching a
digital video system in one of its markets during 1997.
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necessary digital authorizations from the Federal Communications
Commission to provide high-speed internet access service in its Detroit
market. The Company plans to offer such service in Detroit during
1997.
People's Choice TV Corp. owns and operates wireless cable television
systems in Chicago, Detroit, Houston, Phoenix, St. Louis, and Tucson
and holds wireless cable frequency rights in Indianapolis, Kansas City
and Milwaukee. The Company has a pending transaction in which it will
exchange its Kansas City wireless cable assets for the Salt Lake City
wireless cable assets. Wireless cable television service competes with
traditional hard-wired cable systems and transmits satellite television
channels and local off-air television stations to small receiving
antennas at customer locations via super high frequencies.
PEOPLE'S CHOICE TV CORPORATION
For the Year Ended
December 31,
1996 1995
===============================================================================
Revenues(a) $33,425,000 $26,004,000
Net Loss (a) $(75,887,000) $(53,235,000)
Net Loss Per Common
Share (a)(b) $(6.26) $(5.23)
Weighted Average Number of Common
Shares Outstanding (c) 13,100,000 11,072,000
For the Three Months Ended
December 31,
1996 1995
Revenues $8,211,000 $8,179,000
Net Loss $(24,074,000) $(21,070,000)
Net Loss Per Common Share (b) $(1.95) $(1.72)
Weighted Average Number of Common
Shares Outstanding (c) 13,138,000 13,063,000
(a) The years ended December 31, 1996 and 1995 reflect the
operations of the Detroit and Chicago systems from the date of their
respective acquisitions. The year ended December 31, 1995 reflects an
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(b) The year ended December 31, 1996 and 1995 net loss per common share
reflects net loss being adjusted by non-cash, pay-in-kind, preferred
stock dividends in the amount of $6,123,000 and $4,696,000,
respectively. The three months December 31, 1996 and 1995 net loss per
common share reflects a similar adjustment in the amount of $1,582,000
and $1,455,000 respectively.
(c) The weighted average number of shares were computed based on the
weighted number of common shares and common share equivalents assumed
outstanding. The shares include common equivalent shares issuable upon
exercise of certain outstanding stock options and warrants.
SOURCE People's Choice TV Corporation
-0- 3/14/97 /CONTACT: Michael F. Whalen,
Jr., Vice President, Finance & Acquisitions of People's Choice TV Corp.
203-925-7932, or fax, 203-929-1454/
(PCTV)
CO: People's Choice TV Corporation ST: New York IN: ENT SU: ERN
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