Message #10 From:
Stock News Bot Date: December 14, 2005 11:39:00 AM
IPCX News iPCS, Inc. Reports Financial Results for the Fourth Quarter and Fiscal Year Ended September 30, 2005
SCHAUMBURG, Ill.--(BUSINESS WIRE)--Dec. 14, 2005--iPCS, Inc. (OTCBB: IPCX), a PCS Affiliate of Sprint Nextel, today reported financial and operational results for its fourth fiscal quarter and fiscal year ended September 30, 2005. This information supplements the subscriber activity results, which the Company previously announced on October 31, 2005.
Highlights for the Fourth Fiscal Quarter ended September 30, 2005:
-- Total revenues of approximately $109.1 million
-- Net loss of approximately $16.3 million or $0.99 per share
-- Adjusted EBITDA of approximately $15.7 million; results for the quarter included approximately $1.1 million in merger integration and Sprint litigation expenses.
-- Capital expenditures of approximately $4.4 million
-- As previously announced on October 31, 2005:
-- Gross activations of approximately 60,300
-- Net additions of approximately 17,400
-- Monthly churn, net of 30 day deactivations, of 2.7%
-- Ending subscribers of approximately 476,400
"We were pleased with our results during the most recent quarter and believe that they demonstrate continued successful execution of our business strategy," remarked Timothy M. Yager, President and Chief Executive Officer of the Company. "Our strong subscriber growth during the quarter demonstrates our continued effort to expand distribution and realize significant growth across our markets. Additionally, we completed our merger with Horizon PCS and achieved significant progress toward the integration of the two companies and the realization of the expected operational synergies."
Highlights for the Fiscal Year ended September 30, 2005:
-- Total revenues of approximately $280.0 million
-- Net loss of approximately $50.9 million or $4.60 per share
-- Adjusted EBITDA of approximately $43.4 million
-- Capital expenditures of approximately $17.4 million
"This past year has been one of successful transformation for iPCS and we believe that during this period we achieved significant operational progress," continued Mr. Yager. "We have undertaken important strategic steps to build a strong business foundation and over the year our business has experienced results that validate these initiatives. We remain very optimistic about the future of iPCS."
On July 1, 2005, the Company completed its merger with Horizon PCS, Inc., whereby Horizon PCS was merged with and into the Company. Accordingly, the results of the Company for the fiscal year ended September 30, 2005 include results of Horizon PCS only from and after July 1, 2005.
Conference Call to be held tomorrow, December 15th, at noon ET (11:00am CT)
The Company has scheduled a conference call for tomorrow, December 15th, at noon Eastern Time (11:00 a.m. Central Time). Participating in the call will be Tim Yager, President and Chief Executive Officer, and Steb Chandor, Executive Vice President and Chief Financial Officer. To listen to the call, dial 1-800-370-0898 at least five minutes before the conference call begins and reference the "iPCS Earnings Conference Call." Those calling in from international locations should dial 1-973-935-2101. The call will also be webcast and can be accessed at the Investor Relations page of the iPCS website at www.ipcswirelessinc.com. A replay of the call will be available beginning at 3:00 p.m. Eastern Time on December 15, 2005. To access the replay, dial 1-877-519-4471 using a pass code of 6657832. To access the replay from international locations, dial 1-973-341-3080 and use the same pass code. Replay of the webcast and the call will be available through midnight on December 22, 2005.
About iPCS, Inc.
iPCS is the PCS Affiliate of Sprint Nextel with the exclusive right to sell wireless mobility communications, network products and services under the Sprint brand in 80 markets including markets in Illinois, Michigan, Pennsylvania, Indiana, Iowa, Ohio and Tennessee. The territory includes key markets such as Grand Rapids (MI), Fort Wayne (IN), Tri-Cities (TN), Scranton (PA), Saginaw-Bay City (MI) and Quad Cities (IA/IL), As of September 30, 2005, iPCS's licensed territory had a total population of approximately 15.0 million residents, of which its wireless network covered approximately 11.3 million residents, and had approximately 476,400 subscribers. iPCS is headquartered in Schaumburg, Illinois. For more information, please visit the Company's website at www.ipcswirelessinc.com.
Comparability of Financial Results
Upon emergence from Chapter 11 bankruptcy on July 20, 2004, iPCS applied fresh-start accounting effective as of July 2, 2004. As a result, the reported historical financial statements of iPCS for periods as of and prior to July 1, 2004 are not comparable to those of iPCS for periods subsequent to July 1, 2004. Activity of iPCS for any periods subsequent to July 1, 2004 is included in the post-bankruptcy, or "Successor Company" financial statements. Activity of iPCS for periods as of and prior to July 1, 2004 is included in the pre-bankruptcy, or "Predecessor Company" financial statements. In accordance with generally accepted accounting principles, the reported historical financial statements of the Predecessor Company for periods ending prior to July 2, 2004 cannot be added to those of the Successor Company.
The financial results of Horizon PCS are included in iPCS's reported results effective July 1, 2005. The acquisition of Horizon PCS is accounted for using the purchase method of accounting. Under this method of accounting, the purchase price is allocated to the underlying tangible and intangible assets and liabilities acquired based on their respective fair market values, with any excess purchase price allocated to goodwill. Due to the effects of purchase accounting and other differences in accounting methodologies, the results of Horizon PCS prior to the merger with iPCS are not comparable to its results after the merger.
Definitions of Operating and Non-GAAP Financial Measures
iPCS provides readers financial measures calculated using generally accepted accounting principles ("GAAP") and other measures which are derived from GAAP ("Non-GAAP Financial Measures"). These financial measures reflect conventions or standard measures of liquidity, profitability or performance commonly used by the investment community in the telecommunications industry for comparability purposes. These financial measures are a supplement to GAAP financial measures and should not be considered as an alternative to, or more meaningful than, GAAP financial measures.
The Non-GAAP Financial Measures used in this release include the following:
-- Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization as adjusted for reorganization costs, cancellation of debt income, gain or loss on the disposal of property and equipment and stock-based compensation expense. Adjusted EBITDA is a measure used by the investment community in the telecommunications industry for comparability and is not intended to represent the results of our operations in accordance with GAAP.
-- ARPU, or average revenue per user, is a measure of the average monthly subscriber revenue earned for subscribers based in our territory. This measure is calculated by dividing subscriber revenues (ARPU) or subscriber revenues plus roaming revenues (ARPU including roaming) in our consolidated statement of operations by the number of our average monthly subscribers during the period divided by the number of months in the period.
-- CCPU, or cash cost per user, is a measure of the monthly costs to operate our business on a per subscriber basis consisting of costs of service and operations, and general and administrative expenses in our consolidated statement of operations, plus handset subsidies on equipment sold to existing subscribers, less reorganization costs. These costs are divided by average monthly subscribers in our territory during the period divided by the number of months in the period to calculate CCPU.
-- CPGA, or cost per gross addition, is a measure of the average cost we incur to add a new subscriber in our territory. These costs include handset subsidies on new subscriber activations, commissions, rebates and other selling and marketing costs. We calculate CPGA by dividing (a) the sum of cost of products sold and selling and marketing expenses associated with transactions with new subscribers during the measurement period, less product sales revenues associated with transactions with new subscribers during the measurement period, by (b) the total number of subscribers activated in our territory during the period.
-- Average monthly churn is used to measure the rate at which subscribers based in our territory deactivate service on a voluntary or involuntary basis. We calculate average monthly churn based on the number of subscribers deactivated during the period (net of transfers out of our territory and those who deactivated within 30 days of activation) as a percentage of our average monthly subscriber based during the period divided by the number of months during the period.
-- Licensed Pops represents the number of residents (usually expressed in millions) in our territory in which we have an exclusive right to provide wireless mobility communications services under the Sprint brand name. The number of residents located in our territory does not represent the number of wireless subscribers that we serve or expect to serve in our territory.
-- Covered Pops represents the number of residents (usually expressed in millions) covered by our portion of the wireless network of Sprint in our territory. The number of residents covered by our network does not represent the number of wireless subscribers that we serve or expect to serve in our territory.
"Safe Harbor" Statement under Private Securities Litigation Reform Act of 1995
Statements in this press release regarding iPCS's business which are not historical facts are "forward-looking statements." Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe" or "continue" or the negative thereof or variations thereon or similar terminology. Such statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. A variety of factors could cause actual results to differ materially from those anticipated in iPCS's forward-looking statements, including the following factors: (1) iPCS's dependence on its affiliation with Sprint; (2) the outcome of iPCS's litigation against Sprint and Nextel concerning the Sprint/Nextel merger; (3) changes in Sprint's affiliation strategy as a result of the Sprint/Nextel merger; (4) the businesses of iPCS and Horizon PCS may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; (5) expected combination benefits from the iPCS/Horizon PCS merger may not be fully realized or realized within the expected time frame; (6) disruption from integration of the iPCS/Horizon PCS making it more difficult to maintain relationships with Sprint, subscribers, employees, dealers or suppliers; (7) shifts in populations or network focus; (8) changes or advances in technology; (9) changes in Sprint's national service plans or fee structure with iPCS; (10) changes in population or network focus; (11) difficulties in network construction, expansion and upgrades; (12) increased competition in iPCS's markets; (13) adverse changes in financial position, condition or results of operations; and (14) the inability to open the number of new stores and to expand the co-dealer network as planned. For a detailed discussion of these and other cautionary statements and factors that could cause actual results to differ from iPCS's forward-looking statements, please refer to iPCS's filings with the SEC, especially in the "risk factors" sections of the joint proxy statement/prospectus, dated May 13, 2005, relating to iPCS's merger with Horizon PCS, the "risk factors" section of iPCS's Annual Report on Form 10-K for the year ended September 30, 2005 to be filed and in iPCS's subsequent filings with the SEC. Investors and analysts should not place undue reliance on forward-looking statements. The forward-looking statements in this document speak only as of the date of the document and iPCS assume no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contained in the forward-looking statements.
iPCS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in thousands except per share amounts)
----------------------------------------------------------------------
Successor Company
-------------------
September September
30, 30,
2005 2004
--------- ---------
Assets
Current Assets:
Cash and cash equivalents $ 98,107 $ 57,760
Investments 16,700 -
Accounts receivable, net 25,601 14,772
Receivable from Sprint 30,837 13,264
Inventories, net 3,179 1,310
Prepaid expenses 5,717 3,127
Other current assets 4,092 21
--------- ---------
Total current assets 184,233 90,254
Property and equipment, net 153,504 134,931
Financing costs 9,590 6,497
Customer activation costs 1,003 451
Intangible assets, net 178,800 78,861
Goodwill 146,391 -
Other assets 469 1,314
--------- ---------
Total assets $673,990 $312,308
========= =========
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 4,322 $ 2,742
Accrued expenses 33,275 20,880
Payable to Sprint 41,135 24,404
Deferred revenue 10,486 5,764
Current maturities of long-term debt and capital
lease obligations 17 7
--------- ---------
Total current liabilities 89,235 53,797
Customer activation fee revenue 1,003 451
Other long-term liabilities 9,112 3,614
Long-term debt and capital lease obligations,
excluding current maturities 304,558 165,400
--------- ---------
Total liabilities 403,908 223,262
--------- ---------
Commitments and contingencies - -
--------- ---------
Stockholders' Equity:
Preferred stock, par value $.01 per share;
25,000,000 shares authorized; none issued - -
Common stock, par value $.01 per share; 75,000,000
shares authorized, 16,635,482 and 8,744,164 shares
issued and outstanding, respectively 166 87
Additional paid-in-capital 328,202 95,275
Unearned compensation (1,372) (340)
Accumulated deficiency (56,914) (5,976)
--------- ---------
Total stockholders' equity 270,082 89,046
--------- ---------
Total liabilities and stockholders' equity $673,990 $312,308
========= =========
iPCS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(Dollars in thousands
except per share amounts)
----------------------------------------------------------------------
Successor Successor Successor Predecessor
Company Company Company Company
----------------------------------------------
For the
For the Period
For the Period from
Three from July October
Months 2, 2004 For the Year 1, 2003
Ended through Ended through
September September September July 1,
30, 2005 30, 2004 30, 2005 2004
----------------------------------------------
Revenues:
Service revenue $70,191 $37,909 $189,177 $107,097
Roaming revenue 36,169 15,829 82,959 34,525
Equipment and other 2,723 1,644 7,911 4,240
----------------------------------------------
Total revenues 109,083 55,382 280,047 145,862
----------------------------------------------
Operating Expenses:
Cost of service and
roaming (exclusive of
depreciation, as
shown separately below) (61,461) (29,082) (153,224) (83,230)
Cost of equipment (9,319) (5,584) (27,260) (12,801)
Selling and marketing (17,376) (7,996) (44,893) (20,976)
General and
administrative (5,303) (1,705) (11,354) (3,550)
Reorganization expense - - - 60,797
Stock-based compensation
expense (775) (22) (1,200) -
Depreciation (14,549) (8,790) (53,700) (28,596)
Amortization of
intangible assets (9,423) (3,051) (18,126) -
Gain (loss) on disposal
of property and
equipment (55) 4 (141) (13)
----------------------------------------------
Total operating
expenses (118,261) (56,226) (309,898) (88,369)
----------------------------------------------
Operating loss (9,178) (844) (29,851) 57,493
Interest income 868 289 1,782 263
Interest expense (7,990) (5,425) (22,926) (10,142)
Cancellation of debt - - - 131,956
Other income 39 4 57 7
----------------------------------------------
Income (loss) before
(provision for) benefit
from income taxes (16,261) (5,976) (50,938) 179,577
----------------------------------------------
(Provision for) benefit
from income taxes - - - -
----------------------------------------------
Net income (loss) $(16,261) $(5,976) $(50,938) $179,577
==============================================
Basic and diluted loss
per share of common
stock
Loss available to
common stockholders $(0.99) $(0.65) $(4.60) n/a
Weighted average
common shares
outstanding 16,434,938 9,257,582 11,073,435 n/a
===================================
iPCS, INC. AND SUBSIDIARIES
(UNAUDITED)
(In thousands)
Reconciliation of Non-GAAP
Financial Measures
----------------------------------------------------------------------
Successor Successor Successor Predecessor
Company Company Company Company
-----------------------------------------
For the
For the Period
For the Period from
Three from July For the October 1,
Months 2, 2004 Year 2003
Ended through Ended through
September September September July 1,
30, 2005 30, 2004 30, 2005 2004
-----------------------------------------
Net loss $(16,261) $(5,976) $(50,938) $179,577
Net interest expense 7,122 5,136 21,144 9,879
Depreciation and amortization 23,972 11,841 71,826 28,596
Stock-based compensation
expense 775 22 1,200 -
Reorganization expense - - - (60,797)
Cancellation of debt - - - (131,956)
Gain (loss) on disposal of
property and equipment 55 (4) 141 13
-----------------------------------------
Adjusted EBITDA $15,663 $11,019 $43,373 $25,312
=========================================
iPCS, INC. AND SUBSIDIARIES
(UNAUDITED)
Summary of Operating Statistics
----------------------------------------------------------------------
Successor Successor Successor
Company Company Company
--------------------------------------
For the
Period from
For the For the July 2,
Three Months Three Months 2004
Ended Ended through
September 30, June 30, September 30,
2005 2005 2004
--------------------------------------
Subscribers
Gross Additions 60,300 32,300 30,300
Net Additions 17,400 11,800 7,500
Total Customers 476,400 271,000 240,500
Churn 2.7% 2.2% 2.9%
Average Revenue Per User,
Monthly
Including Roaming $76 $73 $76
Without Roaming $50 $52 $53
Cash Cost Per User, Monthly
Including Roaming $49 $44 $45
Without Roaming $34 $30 $31
Cost Per Gross Addition $368 $384 $368
Licensed Pops (Millions) 15.0 7.8 7.8
Covered Pops (Millions) 11.3 5.9 5.9
Cell Sites 1,488 690 669
iPCS, INC. AND SUBSIDIARIES
(UNAUDITED)
(Dollars in thousands except
per user and per add amounts)
Reconciliation of Non-GAAP
Financial Measures
----------------------------------------------------------------------
Successor Successor Successor
Company Company Company
--------------------------------------
For the
Period from
For the For the July 2,
Three Months Three Months 2004
Ended Ended through
September 30, June 30, September 30,
2005 2005 2004
ARPU --------------------------------------
Service revenue $70,191 $41,307 $37,909
Roaming revenue 36,169 16,520 15,829
--------------------------------------
Total service revenue $106,360 $57,827 $53,738
======================================
Average subscribers 467,072 265,227 236,505
Average revenue per user
including roaming, monthly $76 $73 $76
Average revenue per user
without roaming, monthly $50 $52 $53
CCPU
Cost of service and roaming $61,461 $31,787 $29,082
less: Activation costs included
in cost of service and roaming 173 70 471
plus: General and administrative
expenses 5,303 2,153 1,705
less: Retail equipment upgrade
revenue (518) (384) (289)
plus: Retail equipment cost of
upgrades 2,151 1,422 756
--------------------------------------
Total cash costs including
roaming $68,570 $35,048 $31,725
--------------------------------------
less: Roaming expense (20,923) (11,084) (9,645)
--------------------------------------
Total cash costs without
roaming $47,647 $23,964 $22,080
======================================
Average subscribers 467,072 265,227 236,505
Cash cost per user, monthly $49 $44 $45
Cash cost per user without
roaming, monthly $34 $30 $31
CPGA
Selling and marketing $17,376 $9,056 $7,996
plus: Activation costs included
in cost of service and roaming (173) (70) (471)
less: Product sales revenues,
net of upgrade revenue (2,195) (1,248) (1,193)
plus: Cost of products sold,
net of cost of upgrades 7,168 4,642 4,828
--------------------------------------
Total costs of acquisition $22,176 $12,380 $11,160
======================================
Gross adds 60,341 32,272 30,307
Cost per gross add $368 $384 $368
Unaudited Pro Forma Statements of Operations and Operating Metrics
The unaudited pro forma statements of operations and operating metrics for the quarters ended December 31, 2004, March 31, 2005 and June 30, 2005 and for the fiscal year ended September 30, 2005 present the effects of the merger of Horizon PCS, Inc. and iPCS, Inc. using the purchase method of accounting assuming the merger had been completed as of the beginning of the respective periods.
The pro forma statements were prepared using historical unaudited quarterly financial statements of Horizon PCS and iPCS. Adjustments to the historical statements of operations include (i) the elimination of intercompany roaming revenue and expense, (ii) amortization of intangible assets recorded in connection with the merger, (iii) decrease in depreciation of property and equipment based on the fair value of Horizon PCS property and equipment recorded in connection with the merger, and (iv) reduction in interest expense based on fair value of Horizon PCS debt recorded in connection with the merger.
The unaudited pro forma condensed consolidated financial information is for illustrative purposes only and does not purport to represent what the actual consolidated results of operations or the consolidated financial position of iPCS, Inc. would have been had the merger occurred on the dates assumed, nor is it necessarily indicative of future consolidated results of operations or financial position.
The unaudited pro forma condensed consolidated financial information does not include the realization of any cost savings from operation efficiencies, synergies or other restructurings resulting from the merger. The unaudited pro forma condensed consolidated financial information should be read in conjunction with the separate historical consolidated financial statements and accompanying notes of iPCS, Inc. and Horizon PCS, Inc.
iPCS, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(Dollars in thousands)
----------------------------------------------------------------------
For the For the For the For the
Three Three Three Fiscal
Months Months Months Year
Ended Ended Ended Ended
December March June 30, September
31, 2004 31, 2005 2005 30, 2005
-------------------------------------
Revenues:
Service revenue $65,864 $66,040 $69,782 $271,877
Roaming revenue 30,991 29,477 32,868 129,505
Equipment and other 3,257 2,901 2,870 11,751
-------------------------------------
Total revenues 100,112 98,418 105,520 413,133
-------------------------------------
Operating Expenses:
Cost of service and roaming (56,699) (56,467) (59,073) (233,700)
Cost of equipment (7,981) (8,230) (8,145) (33,675)
Selling and marketing (15,930) (14,414) (15,775) (63,495)
General and administrative (5,367) (5,812) (8,443) (24,925)
Stock based compensation
expense (664) (859) (4,813) (7,111)
Depreciation (16,017) (22,860) (22,948) (76,374)
Amortization of intangible
assets (9,616) (9,618) (9,172) (37,829)
Gain (loss) on disposal of
property and equipment (13) 688 (41) 579
-------------------------------------
Total operating expenses (112,287)(117,572)(128,410) (476,530)
-------------------------------------
Operating loss (12,175) (19,154) (22,890) (63,397)
Interest income 408 639 760 2,675
Interest expense (7,951) (7,957) (7,958) (31,856)
Other income 8 4 6 57
------------------------------------
Loss before (provision for)
benefit from income taxes (19,710) (26,468) (30,082) (92,521)
------------------------------------
(Provision for) benefit from
Income taxes - - - -
------------------------------------
Net loss $(19,710)$(26,468)$(30,082)$(92,521)
====================================
iPCS, INC. AND SUBSIDIARIES
(UNAUDITED, Pro Forma)
(In thousands)
Reconciliation of Non-GAAP Financial Measures
----------------------------------------------------------------------
For the
For the For the Three For the
Three Three Months Fiscal
Months Months Ended Year
Ended Ended June Ended
December March 30, September
31, 2004 31, 2005 2005 30, 2005
--------------------------------------
Net loss $(19,710) $(26,468) $(30,082)$(92,521)
Net interest expense 7,543 7,318 7,198 29,181
Depreciation and amortization 25,633 32,478 32,120 114,203
Stock-based compensation expense 664 859 4,813 7,111
Gain (loss) on disposal of
property and equipment 13 (688) 41 (579)
--------------------------------------
Adjusted EBITDA $14,143 $13,499 $14,090 $57,395
======================================
iPCS, INC. AND SUBSIDIARIES
(UNAUDITED, Pro Forma)
Summary of Pro Forma Operating
Statistics
----------------------------------------------------------------------
For the
For the Three For the For the
Three Months Three Fiscal
Months Ended Months Year
Ended March Ended Ended
December 31, June 30, September
31, 2004 2005 2005 30, 2005
------------------------------------
Subscribers
Gross Additions 50,400 52,600 52,500 215,900
Net Additions 7,300 12,400 16,000 53,100
Total Customers 432,300 443,000 459,100 476,400
Churn 3.1% 2.7% 2.4% 2.7%
Average Revenue per User,
Monthly
Including Roaming $76 $73 $76 $75
Without Roaming $51 $50 $52 $51
Cash Cost per User, Monthly
Including Roaming $49 $49 $51 $50
Without Roaming $36 $35 $36 $35
Cost per Gross Addition $389 $348 $372 $369
Licensed POPs (millions) 15.0 15.0 15.0 15.0
Covered POPs (millions) 11.3 11.3 11.3 11.3
Cell Sites 1,463 1,466 1,488 1,488
iPCS, INC. AND SUBSIDIARIES
(UNAUDITED, Pro Forma)
(Dollars in thousands except per user and per add amounts)
Reconciliation of Non-GAAP
Financial Measures
----------------------------------------------------------------------
For the For the
For the Three Three For the
Three Months Months Fiscal
Months Ended Ended Year
Ended March June Ended
December 31, 30, September
31, 2004 2005 2005 30, 2005
-------------------------------------
ARPU
Service revenue $65,864 $66,040 $69,782 $271,877
Roaming revenue 30,991 29,477 32,868 129,505
-------------------------------------
Total service revenue $96,855 $95,517 $102,650 $401,382
Average subscribers 426,843 436,422 451,111 445,362
====================================
Average revenue per user
including roaming, monthly $76 $73 $76 $75
Average revenue per user without
roaming, monthly $51 $50 $52 $51
CCPU
Cost of service and roaming $56,699 $56,467 $59,073 $233,700
less: Activation costs included
in cost of service and roaming 314 409 171 1,067
plus: General and administrative
expenses 5,367 5,812 8,443 24,925
less: Retail equipment upgrade
revenue (775) (856) (653) (2,802)
plus: Retail equipment cost of
upgrades 1,616 1,949 2,037 7,753
-------------------------------------
Total cash costs including
roaming $63,221 $63,781 $69,071 $264,643
-------------------------------------
less: Roaming expense (17,569)(18,394) (20,053) (76,939)
-------------------------------------
Total cash costs without roaming $45,652 $45,387 $49,018 $187,704
=====================================
Average subscribers 426,843 436,422 451,111 445,362
Cash cost per user, monthly $49 $49 $51 $50
Cash cost per user without
roaming, monthly $36 $35 $36 $35
CPGA
Selling and marketing $15,930 $14,414 $15,775 $63,495
plus: Activation costs included
in cost of service and roaming (314) (409) (171) (1,067)
less: Product sale revenues, net
of upgrade revenue (2,378) (1,996) (2,164) (8,732)
plus: Cost of products sold, net
of cost of upgrades 6,365 6,282 6,108 25,923
-------------------------------------
Total costs of acquisition $19,603 $18,291 $19,548 $79,619
=====================================
Gross adds 50,376 52,624 52,543 215,884
Cost per gross add $389 $348 $372 $369
