Western Wireless Announces Third Quarter 1999 Financial Results
BELLEVUE, Wash., Oct 26, 1999 (BUSINESS WIRE) --
--Company earns first quarterly profit; Cash flow of $71.7 million
and an increase in subscribers of 36,400--
Western Wireless Corporation (Nasdaq:WWCA), a leading provider of
communication services to rural America, announced today its financial
and operating results for the third quarter ended September 30, 1999.
"We had a great third quarter with strong revenue growth and our first
positive earnings per share," said John W. Stanton, chairman and chief
executive officer of Western Wireless. "The company achieved record
average revenue per subscriber. EBITDA (operating income before
non-cash charges) exceeded $71 million during the third quarter of
1999, a 65 percent increase from the same quarter in 1998."
"We also had positive cash flow for Western Wireless International, and
strong subscriber growth," continued Stanton.
Mikal Thomsen, president and chief operating officer of Western
Wireless, added, "We added or upgraded 75 cell sites this quarter,
allowing the company to realize increased revenue while improving the
quality of our customer's experience."
Company Results
At the end of the third quarter 1999, the company reported total
revenues of $157 million, up 41 percent over the same quarter a year
ago. Net income was $13.5 million for the quarter ended September 30,
1999, resulting in basic income per share of $0.18.
Domestic subscribers increased by 36,400, to 774,000, during the third
quarter of 1999, a 25 percent year to year increase. Service revenues
for the third quarter of 1999 increased 41 percent from the same
quarter a year ago to $150 million. EBITDA for the quarter was $71.7
million, a 65 percent increase over the third quarter of 1998. Capital
expenditures were $50.5 million for the quarter. Over $21 million in
free cash flow (EBITDA less capital expenditures) was generated during
the third quarter of 1999.
Western Wireless International, operating companies in Croatia,
Georgia, Ghana, Haiti, Iceland, and Latvia, continued their impressive
growth in the third quarter of 1999. Service was successfully launched
in Croatia and Haiti during the quarter.
Based in Bellevue, Wash., Western Wireless Corp. is a leading provider
of wireless communications services in the western United States and
abroad. It currently offers cellular service marketed under the
Cellular One(R) name in 18 western states. Through its subsidiaries,
Western Wireless offers wireless service in 6 countries.
WESTERN WIRELESS CORPORATION
SUPPLEMENTARY FINANCIAL AND OPERATIONAL DATA
(Dollars in thousands)
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
---------------------------------------------
1999 1998 1999 1998
---------------------- -------------------
---------------------- --------------------
Revenues:
Subscriber revenues $102,441 $ 84,942 $ 284,643 $ 241,802
Roamer revenues 46,461 20,972 104,142 44,669
Equipment sales 6,809 4,133 16,680 10,097
Other revenues 1,333 1,317 3,993 3,830
---------------------- -------- -------------
Total revenues 157,044 111,364 409,458 300,398
---------------------- -------- -------------
Operating expenses:
Cost of service 17,765 14,415 48,717 40,013
Cost of equipment
sales 10,030 9,247 25,854 24,224
General and
administrative 30,341 22,313 85,893 64,361
Sales and marketing 27,188 21,964 71,094 58,899
Depreciation and
amortization 27,020 19,199 76,065 54,241
Stock based
compensation 3,850 - 70,346 -
-------- --------- -------- ----------
Total operating
expenses 116,194 87,138 377,969 241,738
========= ========== ======== =========Operating
income $ 40,850 $ 24,226 $ 31,489 $ 58,660
========= ========== ======== =========
Recurring EBITDA $ 71,720 $ 43,425 $ 177,900 $ 112,901
========= ========== ======== =========
Beginning subscribers 737,600 583,300 660,400 520,000
Change in subscribers
(excluding
acquisitions) 36,400 32,200 108,400 95,200
Change in subscribers
due to acquisitions - 4,800 5,200 5,100
--------------------- ---------------------
Total change in
subscribers 36,400 37,000 113,600 100,300
===================== ======== ===========Ending
subscribers 774,000 620,300 774,000 620,300
====================== ======== ===========
(a) Recurring EBITDA represents earnings before interest, taxes,
depreciation, amortization and stock based compensation.
WESTERN WIRELESS CORPORATION
Consolidated Statements of Operations and Comprehensive Income
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
1999 1998 1999 1998
--------- --------- --------- -------
Revenues:
Subscriber revenues $ 102,441 $ 84,942 $ 284,643 $ 241,802
Roamer revenues 46,461 20,972 104,142 44,669
Equipment sales and
other revenues 8,142 5,450 20,673 13,927
Total revenues 157,044 111,364 409,458 300,398
Operating expenses:
Cost of service 17,765 14,415 48,717 40,013
Cost of equipment
sales 10,030 9,247 25,854 24,224
General and
administrative 30,341 22,313 85,893 64,361
Sales and marketing 27,188 21,964 71,094 58,899
Depreciation and
amortization 27,020 19,199 76,065 54,241
Stock based
compensation 3,850 70,346
Total operating expenses 116,194 87,138 377,969 241,738
Operating income from
continuing operations 40,850 24,226 31,489 58,660
Other income (expense):
Interest and financing
expense, net (24,961) (24,191) (71,761) (68,488)
Equity in net loss of
unconsolidated
affiliates (3,857) (579) (11,542) (5,184)
Other, net 1,001 103 3,028 1,422
Total other income (expense) (27,817) (24,667) (80,275) (72,250)
Minority interest in
net loss of consolidated
subsidiaries 509 1,448
Net income (loss) from
continuing operations 13,542 (441) (47,338) (13,590)
Net loss from
discontinued operations (49,232) (82,152) (153,273)
Cost of discontinuance (18,500)
Total discontinued
operations (49,232) (100,652) (153,273)
Net income (loss) $ 13,542 $ (49,673) $(147,990) (166,863)
Basic income
(loss) per share
Continuing
operations $ 0.18 $ (0.01) $ (0.62)$ (0.18)
Discontinued
operations (0.64) (1.31) (2.02)
Net income
(loss) per share $ 0.18 (0.65) (1.93) (2.20)
Diluted income
(loss) per share
Continuing
operations $ 0.17 $ (0.01) $ (0.62) $ (0.18)
Discontinued
operations (0.64) (1.31) (2.02)
Net income (loss) per share $ 0.17 (0.65) (1.93) (2.20)
Weighted average shares
outstanding
Basic 76,892,000 75,877,000 76,585,000 75,828,000
Diluted 79,642,000 75,877,000 76,585,000 75,828,000
Comprehensive income
(loss)
Net income (loss) $ 13,542 $ (147,990)
Other comprehensive
income:
Foreign currency
translation
adjustment (9) (190)
Total comprehensive
income (loss) $ 13,533 $ (148,180)
Copyright (C) 1999 Business Wire. All rights reserved.
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CONTACT: Western Wireless Corporation
Investment Community
Gina Haggerty, 800/261-5960
gina.haggerty@wwireless.com
or
Snyder Buscher Group
Media
John Snyder, 206/652-9704
jsnyder@sbgir.com
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