– Acquisition by Shentel on Schedule to Close After Receipt of FCC Approval
WAYNESBORO, Va., March 11, 2016 /PRNewswire/ — NTELOS Holdings Corp. (NASDAQ:NTLS, news, filings) (“nTelos” or the “Company”) announced today operating and financial results for its fourth quarter and year ended December 31, 2015.
On August 10, 2015, the Company entered into a definitive agreement to be acquired by Shenandoah Telecommunications Company (“Shentel”, NASDAQ: SHEN) for $9.25 in cash per share. The proposed acquisition was approved by the Company’s shareholders and has received all necessary regulatory approvals from federal and state regulatory bodies, except for approval by the Federal Communications Commission (“FCC”). The Company expects the proposed acquisition by Shentel to close as soon as practical once FCC approval is received. For additional information regarding the transaction and closing conditions, please see the Company’s filings with the Securities and Exchange Commission (“SEC”), including the definitive proxy statement filed with the SEC on October 13, 2015.
The “Highlights” and “Subscriber Update” sections below represent results of the Company’s continuing operations, with additional and reconciling information included in the supplemental schedules provided.
Highlights
- Revenues were $87.6 million for the fourth quarter 2015, compared to $96.7 million for the fourth quarter 2014. Revenues for the year 2015 were $362.6 million, up slightly as compared to $360.1 million for the year 2014;
- Adjusted EBITDA, excluding discontinued operations, was $18.2 million for the fourth quarter 2015, compared to $24.6 million for the fourth quarter 2014. Adjusted EBITDA for the year 2015 was $96.2 million, compared to $108.6 million for the year 2014;
- Net subscriber additions for year 2015 were 20,000, as compared to 14,600 for the prior year;
- Approximately 40% of postpay subscribers were on Equipment Installment Plans at year end 2015; and
- Approximately 70% of covered POPs have access to our LTE network.
Subscriber Update
Total Subscribers
- Total subscribers were 302,000 as of December 31, 2015, compared to 300,200 for the third quarter 2015 and 282,100 for the fourth quarter 2014;
- Total subscriber gross additions for the fourth quarter 2015 were 27,100, compared to 25,500 for the third quarter 2015 and 28,300 for the fourth quarter 2014. Total subscriber net additions for the fourth quarter 2015 were 1,900, compared to 2,700 for the third quarter 2015 and 5,000 for the fourth quarter 2014; and
- Total subscriber gross additions for the year 2015 were 105,800, compared to 100,400 for the year 2014. Total subscriber net additions for the year 2015 were 20,000, compared to 14,600 for the year 2014.
Postpay Subscribers
- Postpay subscriber gross additions for the fourth quarter 2015 were 16,900, compared to 15,400 for the third quarter 2015 and 18,600 for the fourth quarter 2014;
- Net postpay subscriber additions were 1,600 for the fourth quarter 2015, compared to 2,100 for the third quarter 2015 and 4,700 for the fourth quarter 2014;
- Postpay churn for the fourth quarter 2015 was 2.2%, compared to 1.9% for third quarter 2015 and 2.2% for the fourth quarter 2014;
- ABPU was $57.83 for the fourth quarter 2015, compared to $58.29 for the third quarter 2015 and $59.35 for the fourth quarter 2014; and
- As of December 31, 2015, total postpay subscribers were 233,300.
Prepay Subscribers
- Prepay subscriber gross additions for the fourth quarter 2015 were 10,200, compared to 10,100 for the third quarter 2015 and 9,700 for the fourth quarter 2014;
- Net prepay subscriber additions were 300 for the fourth quarter 2015, compared to 600 for the third quarter 2015 and 300 for the fourth quarter 2014;
- Prepay churn for the fourth quarter 2015 was 4.8%, compared to 4.6% for the third quarter 2015 and 5.0% for the fourth quarter 2014; and
- As of December 31, 2015, total prepay subscribers were 68,700.
Net Income
Net income (loss) of nTelos, after net income attributable to noncontrolling interests, was $(19.6) million, or $(0.92) per basic share, for the fourth quarter 2015, compared to $(56.2) million, or $(2.66) per basic share, for the fourth quarter 2014.
Liquidity
Total cash, including both restricted and unrestricted cash, at the end of the fourth quarter 2015 was $74.9 million, compared to $75.7 million at the end of the fourth quarter 2014.
Eastern Markets Commercial Wind Down Completion
In the fourth quarter of 2014, the Company announced a strategic refocus of its business operations on its western Virginia and West Virginia markets (“Western Markets” or “Markets”). On November 15, 2015, the Company completed the wind down of commercial operations in its Eastern Markets.
As a result of no longer providing service in the Eastern Markets, certain assets, liabilities and results of operations are now being reported as Discontinued Operations. Accordingly, the Company has recast the prior period results to be comparable with the current Discontinued Operations presentation.
Business Outlook
As a result of the announcement that the Company has entered into a definitive agreement to be acquired by Shentel, the Company no longer provides operating or financial guidance.
Conference Call
As a result of the announcement that the Company has entered into a definitive agreement to be acquired by Shentel, the Company will not host a fourth quarter and full year 2015 conference call and webcast.
Non-GAAP Measures
Adjusted EBITDA is defined as net income attributable to NTELOS Holdings Corp. before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, transaction related costs, restructuring and asset impairment charges, gain/loss on sale or disposal of assets and derivatives, net income attributable to noncontrolling interests, other expenses/income, equity-based compensation charges, separation charges, secondary offering costs, adjustments for impact of recognizing deferred gain associated with towers sold to Grain Management and adjustments for impact of recognizing a portion of the billed SNA contract revenues on a straight line basis.
ABPU, or average billings per user, is computed by adding average monthly postpaid service billings to users and equipment installment plan (EIP) billings divided by the average number of postpaid users during the period, further divided by the number of months in the period. NTELOS believes average postpaid customer billings per user is indicative of estimated cash collection, including equipment installments, from customers each month.
Adjusted EBITDA is a key metric used by investors to determine if the Company is generating sufficient cash flows to continue to produce shareholder value and provide liquidity for future growth. ABPU provides management with useful information concerning the appeal of the Company’s postpay rate plans and service offerings and the Company’s performance in attracting and retaining high value customers.
Adjusted EBITDA and ABPU are non-GAAP financial performance measures. They should not be considered in isolation or as an alternative to measures determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Please refer to the exhibits and materials posted on the Company’s website for a reconciliation of these non-GAAP financial performance measures to the most comparable measures reported in accordance with GAAP and for a discussion of the presentation, comparability and use of such financial performance measures.
About NTELOS
NTELOS Holdings Corp. (NTLS), operating through its subsidiaries as “nTelos Wireless,” is headquartered in Waynesboro, VA, and provides high-speed, dependable nationwide voice and data coverage for approximately 302,000 retail subscribers based in its Western Markets, comprised of western Virginia, West Virginia and portions of Maryland, North Carolina, Pennsylvania, Ohio and Kentucky. The Company’s licensed territories in the Western Markets have a total population of approximately 4.4 million residents, of which its wireless network covers approximately 3.1 million residents. The Company is also the exclusive wholesale provider of wireless network services to Sprint Corporation in portions of its western Virginia and West Virginia territories for all Sprint wireless customers.
FORWARD-LOOKING STATEMENTS
This document may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “project,” “will,” “may” “should,” and similar expressions identify forward-looking statements, which generally are not historical in nature.
Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. The forward-looking statements are or may be based on a series of projections and estimates and involve risks and uncertainties. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include, but are not limited to, those described in Part II, “Item 1A, Risk Factors” and elsewhere in this quarterly report and in our Annual Report on Form 10-K for the year ended December 31, 2015 and those described from time to time in our filings with the Securities and Exchange Commission.
Additionally, there are risks and uncertainties associated with the proposed acquisition by Shentel such as: (1) conditions to the closing of the merger, including, without limitation, the consummation of certain transactions between Shentel and Sprint, may not be satisfied and required regulatory approvals may not be obtained; (2) the merger may involve unexpected costs, liabilities or delays; (3) the risks related to disruption of management’s attention from the Company’s ongoing business operations due to the transaction, (4) the effect of the announcement of the merger on the ability of the Company to retain and hire key personnel and maintain relationships with its customers, suppliers and others with whom it does business, or on its operating results and business generally, (5) the outcome of any legal proceedings related to the merger; (6) the Company may be adversely affected by other economic, business, and/or competitive factors; (7) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (8) changes in the legal or regulatory environment; and (9) other risks to consummation of the merger, including the risk that the merger will not be consummated within the expected time period or at all. If the merger is consummated, the Company stockholders will cease to have any equity interest in the Company and will have no right to participate in its earnings and future growth.
Exhibits:
- Consolidated Financial Statements
- Condensed Consolidated Balance Sheets
- Condensed Consolidated Statements of Operations
- Consolidated Operating Metrics
- Reconciliation of Net Income Attributable to NTELOS Holdings Corp. to Adjusted EBITDA
- Key Metrics
- ABPU Reconciliation – Postpay
- Quarterly Reconciliation of Net Income Attributable to NTELOS Holdings Corp. to Adjusted EBITDA
|
NTELOS Holdings Corp. |
|||||
|
Condensed Consolidated Balance Sheets |
(Unaudited) |
(Unaudited) |
|||
|
December 31, 2015 |
December 31, 2014 |
||||
|
(In thousands) |
|||||
|
ASSETS |
|||||
|
Current Assets |
|||||
|
Cash |
$ 72,687 |
$ 73,546 |
|||
|
Restricted Cash |
– |
2,167 |
|||
|
Accounts receivable, net |
53,021 |
35,177 |
|||
|
Inventories and supplies, net |
13,345 |
17,978 |
|||
|
Prepaid expenses |
9,350 |
8,295 |
|||
|
Tax refund receivable |
24,986 |
3,883 |
|||
|
Other current assets |
1,132 |
617 |
|||
|
Other current assets from discontinued operations |
2,121 |
14,763 |
|||
|
176,642 |
156,426 |
||||
|
Assets Held for Sale |
62 |
4,317 |
|||
|
Restricted Cash |
2,167 |
– |
|||
|
Securities and Investments |
1,522 |
1,522 |
|||
|
Property, Plant and Equipment, net |
326,260 |
266,054 |
|||
|
Intangible Assets |
|||||
|
Goodwill |
63,700 |
63,700 |
|||
|
Radio spectrum licenses |
44,933 |
44,933 |
|||
|
Customer relationships and trademarks, net |
4,292 |
5,084 |
|||
|
Deferred Charges and Other Assets |
18,941 |
16,919 |
|||
|
Deferred Income Taxes |
2,737 |
3,360 |
|||
|
Other Noncurrent Assets from Discontinued Operations |
1,733 |
85,402 |
|||
|
Total Assets |
$ 642,989 |
$ 647,717 |
|||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|||||
|
Current Liabilities |
|||||
|
Current portion of long-term debt |
$ 5,605 |
$ 5,728 |
|||
|
Accounts payable |
20,532 |
24,130 |
|||
|
Advance billings and customer deposits |
12,772 |
10,284 |
|||
|
Accrued expenses and other current liabilities |
18,003 |
20,255 |
|||
|
Other current liabilities from discountinued operations |
13,054 |
12,245 |
|||
|
69,966 |
72,642 |
||||
|
Long-Term Debt |
514,634 |
519,491 |
|||
|
Retirement Benefits |
22,448 |
25,209 |
|||
|
Deferred Income Taxes |
12,272 |
1,685 |
|||
|
Other Long-Term Liabilities |
61,860 |
33,913 |
|||
|
Other Long-Term Liabilities from Discontinued Operations |
835 |
27,729 |
|||
|
Stockholders’ Equity (Deficit) |
(39,026) |
(32,952) |
|||
|
Total Liabilities and Stockholders’ Equity (Deficit) |
$ 642,989 |
$ 647,717 |
|||
|
NTELOS Holdings Corp. |
||||||
|
Condensed Consolidated Statements of Operations |
Three Months Ended |
Twelve Months Ended |
||||
|
(Unaudited) |
(Unaudited) |
|||||
|
(In thousands, except per share amounts) |
December 31, 2015 |
December 31, 2014 |
December 31, 2015 |
December 31, 2014 |
||
|
Operating Revenues |
||||||
|
Retail Revenue |
$ 41,006 |
$ 44,428 |
$ 168,674 |
$ 177,295 |
||
|
Wholesale and other revenue |
33,066 |
37,396 |
140,121 |
152,783 |
||
|
Equipment sales |
13,523 |
14,828 |
53,845 |
30,056 |
||
|
Operating Revenues |
87,595 |
96,652 |
362,640 |
360,134 |
||
|
Operating Expenses |
||||||
|
Cost of services |
23,019 |
20,959 |
89,413 |
80,763 |
||
|
Cost of equipment sold |
23,709 |
24,721 |
87,753 |
73,044 |
||
|
Customer operations |
16,514 |
20,908 |
68,484 |
74,990 |
||
|
Corporate operations |
9,459 |
9,513 |
38,951 |
37,388 |
||
|
Restructuring |
115 |
982 |
2,487 |
982 |
||
|
Depreciation and amortization |
15,205 |
14,758 |
55,102 |
55,225 |
||
|
Gain on sale of assets |
– |
– |
(11,111) |
– |
||
|
88,021 |
91,841 |
331,079 |
322,392 |
|||
|
Operating Income (loss) |
(426) |
4,811 |
31,561 |
37,742 |
||
|
Other Expense |
||||||
|
Interest expense, net |
(7,576) |
(8,061) |
(30,589) |
(32,697) |
||
|
Other income (expense), net |
21 |
80 |
80 |
(1,115) |
||
|
(7,555) |
(7,981) |
(30,509) |
(33,812) |
|||
|
Income (Loss) before Income Taxes |
(7,981) |
(3,170) |
1,052 |
3,930 |
||
|
Income Tax Expense (Benefit) |
(2,941) |
(1,395) |
2,187 |
747 |
||
|
Net Income (Loss) from Continuing Operations |
(5,040) |
(1,775) |
(1,135) |
3,183 |
||
|
Loss from Discontinued Operations, Net of Tax |
(14,441) |
(54,128) |
(9,903) |
(55,349) |
||
|
Net Loss |
(19,481) |
(55,903) |
(11,038) |
(52,166) |
||
|
Net Income Attributable to Noncontrolling Interests |
(168) |
(305) |
(1,168) |
(1,468) |
||
|
Net Loss Attributable to NTELOS Holdings Corp. |
$ (19,649) |
$ (56,208) |
$ (12,206) |
$ (53,634) |
||
|
Earnings (Loss) per Share Attributable to NTELOS Holdings Corp |
||||||
|
Basic Earnings (Loss) per common share from continuing operations |
$ (0.24) |
$ (0.10) |
$ (0.10) |
$ 0.08 |
||
|
Basic Earnings (Loss) per common share from discontinued operations |
(0.68) |
(2.56) |
(0.47) |
(2.62) |
||
|
Basic Earnings (Loss) per common share |
$ (0.92) |
$ (2.66) |
$ (0.57) |
$ (2.54) |
||
|
Weighted average shares outstanding – basic |
21,307 |
21,146 |
21,257 |
21,111 |
||
|
Diluted Earnings (Loss) per common share from continuing operations |
$ (0.24) |
$ (0.10) |
$ (0.10) |
$ 0.08 |
||
|
Diluted Earnings (Loss) per common share from discontinued operations |
(0.68) |
(2.56) |
(0.47) |
(2.62) |
||
|
Diluted Earnings (Loss) per common share |
$ (0.92) |
$ (2.66) |
$ (0.57) |
$ (2.54) |
||
|
Weighted average shares outstanding – diluted |
21,307 |
21,146 |
21,257 |
21,111 |
||
|
Cash Dividends Declared per Share – Common Stock |
$ – |
$ – |
$ – |
$ 0.84 |
||
|
NTELOS Holdings Corp. |
|||||||||
|
Reconciliation of Net Income (Loss) Attributable to NTELOS Holdings Corp. to Adjusted EBITDA – (Consolidated) |
|||||||||
|
(In thousands) |
|||||||||
|
Three Months Ended |
Twelve Months Ended |
||||||||
|
December 31, 2015 |
December 31, 2014 |
December 31, 2015 |
December 31, 2014 |
||||||
|
Net loss attributable to NTELOS Holdings Corp. |
$ (19,649) |
$ (56,208) |
$ (12,206) |
$ (53,634) |
|||||
|
Net loss attributable to discontinued operations |
(14,441) |
(54,128) |
(9,903) |
(55,349) |
|||||
|
Net income attributable to noncontrolling interests |
168 |
305 |
1,168 |
1,468 |
|||||
|
Net income (loss) attributable to continuing operations |
$ (5,040) |
$ (1,775) |
$ (1,135) |
$ 3,183 |
|||||
|
Interest expense |
7,576 |
8,061 |
30,589 |
32,697 |
|||||
|
Income tax (benefit) |
(2,941) |
(1,395) |
2,187 |
747 |
|||||
|
Other expense (income), net |
(21) |
(80) |
(80) |
1,115 |
|||||
|
Operating income (loss) |
$ (426) |
$ 4,811 |
$ 31,561 |
$ 37,742 |
|||||
|
Depreciation and amortization |
15,205 |
14,758 |
55,102 |
55,225 |
|||||
|
Restructuring |
115 |
982 |
2,487 |
982 |
|||||
|
Gain on sale of assets |
– |
– |
(11,111) |
– |
|||||
|
Accretion of asset retirement obligations |
275 |
241 |
1,209 |
878 |
|||||
|
Adjusted EBITDA attributable to discontinued operations |
(1,178) |
6,781 |
11,487 |
23,884 |
|||||
|
Equity-based compensation |
792 |
731 |
3,428 |
2,272 |
|||||
|
SNA straight-line adjustment ¹ |
2,315 |
3,065 |
11,010 |
8,173 |
|||||
|
Other2 |
(28) |
2 |
2,481 |
3,279 |
|||||
|
Adjusted EBITDA |
$ 17,070 |
$ 31,371 |
$ 107,654 |
$ 132,435 |
|||||
|
Reconciliation of Net Income (Loss) Attributable to Discontinued Operations to Adjusted EBITDA – (Discontinued Operations) |
|||||||||
|
(In thousands) |
|||||||||
|
Three Months Ended |
Twelve Months Ended |
||||||||
|
December 31, 2015 |
December 31, 2014 |
December 31, 2015 |
December 31, 2014 |
||||||
|
Net loss attributable to discontinued operations |
$ (14,441) |
$ (54,128) |
$ (9,903) |
$ (55,349) |
|||||
|
Net income attributable to noncontrolling interests |
– |
– |
– |
– |
|||||
|
Net loss |
$ (14,441) |
$ (54,128) |
$ (9,903) |
$ (55,349) |
|||||
|
Interest expense |
(27) |
(10) |
(127) |
(2) |
|||||
|
Income tax (benefit) |
(9,327) |
(34,016) |
(6,880) |
(33,641) |
|||||
|
Operating income (loss) |
$ (23,795) |
$ (88,154) |
$ (16,910) |
$ (88,992) |
|||||
|
Depreciation and amortization |
1,497 |
4,232 |
4,999 |
21,235 |
|||||
|
Restructuring |
20,965 |
2,681 |
26,830 |
2,681 |
|||||
|
Gain on sale of assets |
– |
– |
(5,637) |
– |
|||||
|
Asset Impairment |
– |
87,853 |
117 |
87,853 |
|||||
|
Accretion of asset retirement obligations |
(132) |
121 |
157 |
410 |
|||||
|
Equity-based compensation |
4 |
47 |
20 |
697 |
|||||
|
Cell site spectrum rent |
302 |
– |
1,911 |
– |
|||||
|
Other2 |
(19) |
1 |
– |
– |
|||||
|
Adjusted EBITDA attributable to discontinued operations |
$ (1,178) |
$ 6,781 |
$ 11,487 |
$ 23,884 |
|||||
|
Reconciliation of Net Income (Loss) Attributable to NTELOS Holdings Corp. to Adjusted EBITDA – (Continuing Operations) |
|||||||||
|
(In thousands) |
|||||||||
|
Three Months Ended |
Twelve Months Ended |
||||||||
|
December 31, 2015 |
December 31, 2014 |
December 31, 2015 |
December 31, 2014 |
||||||
|
Net income (loss) attributable to NTELOS Holdings Corp. |
$ (19,649) |
$ (56,208) |
$ (12,206) |
$ (53,634) |
|||||
|
Net income (loss) attributable to discontinued operations |
(14,441) |
(54,128) |
(9,903) |
(55,349) |
|||||
|
Net income attributable to noncontrolling interests |
168 |
305 |
1,168 |
1,468 |
|||||
|
Net income (loss) |
$ (5,040) |
$ (1,775) |
$ (1,135) |
$ 3,183 |
|||||
|
Interest expense |
7,576 |
8,061 |
30,589 |
32,697 |
|||||
|
Income tax (benefit) |
(2,941) |
(1,395) |
2,187 |
747 |
|||||
|
Other expense (income), net |
(21) |
(80) |
(80) |
1,115 |
|||||
|
Operating income (loss) |
$ (426) |
$ 4,811 |
$ 31,561 |
$ 37,742 |
|||||
|
Depreciation and amortization |
15,205 |
14,758 |
55,102 |
55,225 |
|||||
|
Restructuring |
115 |
982 |
2,487 |
982 |
|||||
|
Gain on sale of assets |
– |
– |
(11,111) |
– |
|||||
|
Accretion of asset retirement obligations |
275 |
241 |
1,209 |
878 |
|||||
|
Equity-based compensation |
792 |
731 |
3,428 |
2,272 |
|||||
|
SNA straight-line adjustment ¹ |
2,315 |
3,065 |
11,010 |
8,173 |
|||||
|
Other2 |
(28) |
2 |
2,481 |
3,279 |
|||||
|
Adjusted EBITDA attributable to continuing operations |
$ 18,248 |
$ 24,590 |
$ 96,167 |
$ 108,551 |
|||||
|
Reconciliation of Adjusted EBITDA – (Continuing Operations) to previously reported Western Markets Adjusted EBITDA³ |
|||||||||
|
(In thousands) |
|||||||||
|
Three Months Ended |
Twelve Months Ended |
||||||||
|
December 31, 2015 |
December 31, 2014 |
December 31, 2015 |
December 31, 2014 |
||||||
|
Adjusted EBITDA attributable to continuing operations |
$ 18,248 |
$ 24,590 |
$ 96,167 |
$ 108,551 |
|||||
|
Cost of services-previous allocation to Eastern Markets |
– |
195 |
– |
583 |
|||||
|
Customer operations-previous allocation to Eastern Markets |
– |
2,612 |
– |
10,507 |
|||||
|
Corporate operations-previous allocation to Eastern Markets |
– |
2,800 |
– |
10,089 |
|||||
|
Adjusted EBITDA attributable to Western Markets³ |
$ 18,248 |
$ 30,197 |
$ 96,167 |
$ 129,730 |
|||||
|
1 |
Adjustment for impact of recognizing a portion of the billed SNA contract revenues on a straight line basis. |
||||||||
|
2 |
In 2014, Other includes legal and advisory fees related to new Sprint agreement and certain employee separation charges. |
||||||||
|
In 2015, Other includes certain non-recurring corporate costs and adjustments for recognizing a portion of the deferred gain |
|||||||||
|
for towers sold to Grain Management, LLC. |
|||||||||
|
Western Markets was previously defined as Holdings less Eastern Markets and, for 2014, included the allocation of |
|||||||||
|
certain corporate expenses to the Eastern Markets. |
|||||||||
|
NTELOS Holdings Corp. ¹ |
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|
Key Metrics |
Twelve Months Ended |
||||||||||||||||||||||||||||||||||||||||||||||
|
Quarter Ended: |
12/31/2014 |
3/31/2015 |
6/30/2015 |
9/30/2015 |
12/31/2015 |
12/31/2014 |
12/31/2015 |
||||||||||||||||||||||||||||||||||||||||
|
Subscribers |
|||||||||||||||||||||||||||||||||||||||||||||||
|
Beginning Subscribers |
277,100 |
282,100 |
290,100 |
297,500 |
300,200 |
273,600 |
282,100 |
||||||||||||||||||||||||||||||||||||||||
|
Postpay |
215,500 |
220,100 |
224,700 |
229,000 |
231,300 |
208,800 |
220,100 |
||||||||||||||||||||||||||||||||||||||||
|
Prepay |
61,600 |
62,000 |
65,400 |
68,500 |
68,900 |
64,800 |
62,000 |
||||||||||||||||||||||||||||||||||||||||
|
Gross Additions |
28,300 |
27,500 |
25,700 |
25,500 |
27,100 |
100,400 |
105,800 |
||||||||||||||||||||||||||||||||||||||||
|
Postpay |
18,600 |
15,700 |
14,300 |
15,400 |
16,900 |
63,400 |
62,300 |
||||||||||||||||||||||||||||||||||||||||
|
Prepay |
9,700 |
11,800 |
11,400 |
10,100 |
10,200 |
37,000 |
43,500 |
||||||||||||||||||||||||||||||||||||||||
|
Disconnections |
23,300 |
19,500 |
18,300 |
22,800 |
25,200 |
85,800 |
85,800 |
||||||||||||||||||||||||||||||||||||||||
|
Postpay |
13,900 |
11,100 |
10,000 |
13,300 |
15,300 |
50,500 |
49,700 |
||||||||||||||||||||||||||||||||||||||||
|
Prepay |
9,400 |
8,400 |
8,300 |
9,500 |
9,900 |
35,300 |
36,100 |
||||||||||||||||||||||||||||||||||||||||
|
Net Additions (Losses) |
5,000 |
8,000 |
7,400 |
2,700 |
1,900 |
14,600 |
20,000 |
||||||||||||||||||||||||||||||||||||||||
|
Postpay |
4,700 |
4,600 |
4,300 |
2,100 |
1,600 |
12,900 |
12,600 |
||||||||||||||||||||||||||||||||||||||||
|
Prepay |
300 |
3,400 |
3,100 |
600 |
300 |
1,700 |
7,400 |
||||||||||||||||||||||||||||||||||||||||
|
Ending Subscribers ² |
282,100 |
290,100 |
297,500 |
300,200 |
302,000 |
282,100 |
302,000 |
||||||||||||||||||||||||||||||||||||||||
|
Postpay |
220,100 |
224,700 |
229,000 |
231,300 |
233,300 |
220,100 |
233,300 |
||||||||||||||||||||||||||||||||||||||||
|
Prepay |
62,000 |
65,400 |
68,500 |
68,900 |
68,700 |
62,000 |
68,700 |
||||||||||||||||||||||||||||||||||||||||
|
Churn, net |
2.8% |
2.3% |
2.1% |
2.5% |
2.8% |
2.6% |
2.4% |
||||||||||||||||||||||||||||||||||||||||
|
Postpay |
2.2% |
1.7% |
1.5% |
1.9% |
2.2% |
2.0% |
1.8% |
||||||||||||||||||||||||||||||||||||||||
|
Prepay |
5.0% |
4.4% |
4.1% |
4.6% |
4.8% |
4.6% |
4.5% |
||||||||||||||||||||||||||||||||||||||||
|
Other Items |
|||||||||||||||||||||||||||||||||||||||||||||||
|
ABPU Statistics |
|||||||||||||||||||||||||||||||||||||||||||||||
|
ABPU |
$ 59.35 |
$ 58.04 |
$ 58.64 |
$ 58.29 |
$ 57.83 |
$ 59.64 |
$ 58.20 |
||||||||||||||||||||||||||||||||||||||||
|
Strategic Network Alliance Revenues (000’s) ³ |
|||||||||||||||||||||||||||||||||||||||||||||||
|
Billed Revenue |
$ 38,329 |
$ 36,627 |
$ 37,887 |
$ 35,408 |
$ 33,453 |
$ 153,754 |
$ 143,375 |
||||||||||||||||||||||||||||||||||||||||
|
Straight-Line Adjustment |
(3,065) |
(3,065) |
(3,065) |
(2,565) |
(2,315) |
(8,173) |
(11,010) |
||||||||||||||||||||||||||||||||||||||||
|
Spectrum Lease Consideration |
1,233 |
1,190 |
1,222 |
1,221 |
1,222 |
3,289 |
4,855 |
||||||||||||||||||||||||||||||||||||||||
|
SNA Revenues |
$ 36,497 |
$ 34,752 |
$ 36,044 |
$ 34,064 |
$ 32,360 |
$ 148,870 |
$ 137,220 |
||||||||||||||||||||||||||||||||||||||||
|
Network Statistics |
|||||||||||||||||||||||||||||||||||||||||||||||
|
Licensed Population (millions) |
4.4 |
4.4 |
4.4 |
4.4 |
4.4 |
4.4 |
4.4 |
||||||||||||||||||||||||||||||||||||||||
|
Covered Population (millions) |
3.1 |
3.1 |
3.1 |
3.1 |
3.1 |
3.1 |
3.1 |
||||||||||||||||||||||||||||||||||||||||
|
Total Cell Sites |
1,004 |
1,006 |
1,007 |
1,006 |
1,008 |
1,004 |
1,008 |
||||||||||||||||||||||||||||||||||||||||
|
LTE Cell Sites |
135 |
202 |
274 |
382 |
489 |
135 |
489 |
||||||||||||||||||||||||||||||||||||||||
|
LTE % of Total Cell Sites |
13.4% |
20.1% |
27.2% |
38.0% |
48.5% |
13.4% |
48.5% |
||||||||||||||||||||||||||||||||||||||||
|
LTE % of Covered POPs |
22.2% |
43.6% |
53.1% |
64.7% |
70.0% |
22.2% |
70.0% |
||||||||||||||||||||||||||||||||||||||||
|
1 |
Results exclude Discontinued Operations (Eastern Markets). |
||||||||||||||||||||||||||||||||||||||||||||||
|
2 |
Ending subscribers may not foot due to customer transfers between product classes and rounding. |
||||||||||||||||||||||||||||||||||||||||||||||
|
3 |
Effective 5/1/14, SNA Revenues include the impact of recognizing the fixed fee element of SNA contract revenues on a straightline basis, which is a reduction of |
||||||||||||||||||||||||||||||||||||||||||||||
|
billed revenue, and the non-cash consideration attributable to spectrum leases. We have recognized an equal charge for spectrum lease expense within |
|||||||||||||||||||||||||||||||||||||||||||||||
|
cost of sales and services. |
|||||||||||||||||||||||||||||||||||||||||||||||
|
NTELOS Holdings Corp. ¹ |
||||||||
|
ABPU Reconciliation – Postpay |
Three Months Ended |
Twelve Months Ended |
||||||
|
Average Monthly Billings per User (ABPU) ² |
December 31, 2015 |
December 31, 2014 |
December 31, 2015 |
December 31, 2014 |
||||
|
(In thousands, except for subscribers and ABPU) |
||||||||
|
Retail Revenue |
$ 41,006 |
$ 44,428 |
$ 168,674 |
$ 177,295 |
||||
|
Plus: EIP billings |
5,418 |
351 |
15,685 |
364 |
||||
|
Less: prepay service revenues and other |
(6,176) |
(6,207) |
(25,151) |
(25,333) |
||||
|
Total postpay billings |
$ 40,248 |
$ 38,572 |
$ 159,208 |
$ 152,326 |
||||
|
Average number of postpay subscribers |
232,000 |
216,600 |
228,000 |
212,800 |
||||
|
Postpay ABPU |
$ 57.83 |
$ 59.35 |
$ 58.20 |
$ 59.64 |
||||
|
1 |
Results exclude Discontinued Operations (Eastern Markets). |
|||||||
|
2 |
Average monthly billings per user (ABPU) is computed by dividing postpay service revenues and equipment installment plan (EIP) billings per period by the average number of postpay subscribers during that period. ABPU as defined may not be similar to ABPU measures of other companies, is not a measurement under GAAP and should be considered in addition to, but not as a substitute for, the information contained in the Company’s consolidated statements of operations. The Company closely monitors the effects of new rate plans and service offerings on ABPU in order to determine their effectiveness. ABPU provides management useful information concerning the appeal of NTELOS rate plans and service offerings and the Company’s performance in attracting and retaining high-value customers. |
|||||||
|
NTELOS Holdings Corp. |
|||||||||||||||||||||||
|
Reconciliation of Net Income (Loss) Attributable to NTELOS Holdings Corp. to Adjusted EBITDA – (Consolidated) |
|||||||||||||||||||||||
|
(In thousands) |
|||||||||||||||||||||||
|
Three Months Ended |
Twelve Months Ended |
||||||||||||||||||||||
|
December 31, 2015 |
September 30, 2015 |
June 30, 2015 |
March 31, 2015 |
December 31, 2014 |
September 30, 2014 |
June 30, 2014 |
March 31, 2014 |
December 31, 2015 |
Qtrs Added |
December 31, 2014 |
Qtr Added |
||||||||||||
|
Net income (loss) attributable to NTELOS Holdings Corp. |
$ (19,649) |
$ (8,963) |
$ 1,610 |
$ 14,796 |
$ (56,208) |
$ 804 |
$ 484 |
$ 1,286 |
$ (12,206) |
$ (12,206) |
$ (53,634) |
$ (53,634) |
|||||||||||
|
Net income (loss) attributable to discontinued operations |
(14,441) |
(4,498) |
787 |
8,249 |
(54,128) |
(92) |
(457) |
(672) |
(9,903) |
(9,903) |
(55,349) |
(55,349) |
|||||||||||
|
Net income attributable to noncontrolling interests |
168 |
237 |
272 |
491 |
305 |
352 |
375 |
436 |
1,168 |
1,168 |
1,468 |
1,468 |
|||||||||||
|
Net income (loss) attributable to continuing operations |
$ (5,040) |
$ (4,228) |
$ 1,095 |
$ 7,038 |
$ (1,775) |
$ 1,248 |
$ 1,316 |
$ 2,394 |
$ (1,135) |
$ (1,135) |
$ 3,183 |
$ 3,183 |
|||||||||||
|
Interest expense |
7,576 |
7,451 |
7,614 |
7,948 |
8,061 |
8,368 |
8,312 |
7,956 |
30,589 |
30,589 |
32,697 |
32,697 |
|||||||||||
|
Income tax (benefit) |
(2,941) |
(577) |
892 |
4,813 |
(1,395) |
417 |
512 |
1,213 |
2,187 |
2,187 |
747 |
747 |
|||||||||||
|
Other expense (income), net |
(21) |
(29) |
(33) |
3 |
(80) |
31 |
92 |
1,072 |
(80) |
(80) |
1,115 |
1,115 |
|||||||||||
|
Operating income (loss) |
$ (426) |
$ 2,617 |
$ 9,568 |
$ 19,802 |
$ 4,811 |
$ 10,064 |
$ 10,232 |
$ 12,635 |
$ 31,561 |
$ 31,561 |
$ 37,742 |
$ 37,742 |
|||||||||||
|
Depreciation and amortization |
15,205 |
13,851 |
13,129 |
12,917 |
14,758 |
13,715 |
13,774 |
12,978 |
55,102 |
55,102 |
55,225 |
55,225 |
|||||||||||
|
Restructuring |
115 |
90 |
677 |
1,605 |
982 |
– |
– |
– |
2,487 |
2,487 |
982 |
982 |
|||||||||||
|
Gain on sale of assets |
– |
– |
(102) |
(11,009) |
– |
– |
– |
– |
(11,111) |
(11,111) |
– |
– |
|||||||||||
|
Accretion of asset retirement obligations |
275 |
319 |
315 |
300 |
241 |
179 |
235 |
223 |
1,209 |
1,209 |
878 |
878 |
|||||||||||
|
Adjusted EBITDA attributable to discontinued operations |
(1,178) |
(1,048) |
3,673 |
10,040 |
6,781 |
4,929 |
6,341 |
5,833 |
11,487 |
11,487 |
23,884 |
23,884 |
|||||||||||
|
Equity-based compensation |
792 |
876 |
900 |
860 |
731 |
(212) |
866 |
887 |
3,428 |
3,428 |
2,272 |
2,272 |
|||||||||||
|
SNA straight-line adjustment ¹ |
2,315 |
2,565 |
3,065 |
3,065 |
3,065 |
3,065 |
2,043 |
– |
11,010 |
11,010 |
8,173 |
8,173 |
|||||||||||
|
Other2 |
(28) |
2,805 |
(96) |
(200) |
2 |
1,038 |
872 |
1,367 |
2,481 |
2,481 |
3,279 |
3,279 |
|||||||||||
|
Adjusted EBITDA |
$ 17,070 |
$ 22,075 |
$ 31,129 |
$ 37,380 |
$ 31,371 |
$ 32,778 |
$ 34,363 |
$ 33,923 |
$ 107,654 |
$ 107,654 |
$ 132,435 |
$ 132,435 |
|||||||||||
|
Reconciliation of Net Income (Loss) Attributable to Discontinued Operations to Adjusted EBITDA – (Discontinued Operations) |
|||||||||||||||||||||||
|
(In thousands) |
|||||||||||||||||||||||
|
Three Months Ended |
Twelve Months Ended |
||||||||||||||||||||||
|
December 31, 2015 |
September 30, 2015 |
June 30, 2015 |
March 31, 2015 |
December 31, 2014 |
September 30, 2014 |
June 30, 2014 |
March 31, 2014 |
December 31, 2015 |
December 31, 2015 |
December 31, 2014 |
December 31, 2014 |
||||||||||||
|
Net income (loss) attributable to discontinued operations |
$ (14,441) |
$ (4,498) |
$ 787 |
$ 8,249 |
$ (54,128) |
$ (92) |
$ (457) |
$ (672) |
$ (9,903) |
$ (9,903) |
$ (55,349) |
$ (55,349) |
|||||||||||
|
Net income attributable to noncontrolling interests |
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
|||||||||||
|
Net income (loss) |
$ (14,441) |
$ (4,498) |
$ 787 |
$ 8,249 |
$ (54,128) |
$ (92) |
$ (457) |
$ (672) |
$ (9,903) |
$ (9,903) |
$ (55,349) |
$ (55,349) |
|||||||||||
|
Interest expense |
(27) |
(29) |
(41) |
(30) |
(10) |
2 |
3 |
3 |
(127) |
(127) |
(2) |
(2) |
|||||||||||
|
Income tax (benefit) |
(9,327) |
(2,946) |
197 |
5,196 |
(34,016) |
350 |
128 |
(103) |
(6,880) |
(6,880) |
(33,641) |
(33,641) |
|||||||||||
|
Operating income (loss) |
$ (23,795) |
$ (7,473) |
$ 943 |
$ 13,415 |
$ (88,154) |
$ 260 |
$ (326) |
$ (772) |
$ (16,910) |
$ (16,910) |
$ (88,992) |
$ (88,992) |
|||||||||||
|
Depreciation and amortization |
1,497 |
1,301 |
1,136 |
1,065 |
4,232 |
4,759 |
6,155 |
6,089 |
4,999 |
4,999 |
21,235 |
21,235 |
|||||||||||
|
Restructuring |
20,965 |
4,537 |
925 |
403 |
2,681 |
– |
– |
– |
26,830 |
26,830 |
2,681 |
2,681 |
|||||||||||
|
Gain on sale of assets |
– |
– |
(699) |
(4,938) |
– |
– |
– |
– |
(5,637) |
(5,637) |
– |
– |
|||||||||||
|
Asset Impairment |
– |
5 |
220 |
(108) |
87,853 |
– |
– |
– |
117 |
117 |
87,853 |
87,853 |
|||||||||||
|
Accretion of asset retirement obligations |
(132) |
(47) |
132 |
204 |
121 |
101 |
96 |
92 |
157 |
157 |
410 |
410 |
|||||||||||
|
Equity-based compensation |
4 |
7 |
10 |
(1) |
47 |
(190) |
416 |
424 |
20 |
20 |
697 |
697 |
|||||||||||
|
Cell site spectrum rent |
302 |
603 |
1,006 |
– |
– |
– |
– |
– |
1,911 |
1,911 |
– |
– |
|||||||||||
|
Other2 |
(19) |
19 |
– |
– |
1 |
(1) |
– |
– |
– |
– |
– |
– |
|||||||||||
|
Adjusted EBITDA attributable to discontinued operations |
$ (1,178) |
$ (1,048) |
$ 3,673 |
$ 10,040 |
$ 6,781 |
$ 4,929 |
$ 6,341 |
$ 5,833 |
$ 11,487 |
$ 11,487 |
$ 23,884 |
$ 23,884 |
|||||||||||
|
Reconciliation of Net Income (Loss) Attributable to NTELOS Holdings Corp. to Adjusted EBITDA – (Continuing Operations) |
|||||||||||||||||||||||
|
(In thousands) |
|||||||||||||||||||||||
|
Three Months Ended |
Twelve Months Ended |
||||||||||||||||||||||
|
December 31, 2015 |
September 30, 2015 |
June 30, 2015 |
March 31, 2015 |
December 31, 2014 |
September 30, 2014 |
June 30, 2014 |
March 31, 2014 |
December 31, 2015 |
December 31, 2015 |
December 31, 2014 |
December 31, 2014 |
||||||||||||
|
Net income (loss) attributable to NTELOS Holdings Corp. |
$ (19,649) |
$ (8,963) |
$ 1,610 |
$ 14,796 |
$ (56,208) |
$ 804 |
$ 484 |
$ 1,286 |
$ (12,206) |
$ (12,206) |
$ (53,634) |
$ (53,634) |
|||||||||||
|
Net income (loss) attributable to discontinued operations |
(14,441) |
(4,498) |
787 |
8,249 |
(54,128) |
(92) |
(457) |
(672) |
(9,903) |
(9,903) |
(55,349) |
(55,349) |
|||||||||||
|
Net income attributable to noncontrolling interests |
168 |
237 |
272 |
491 |
305 |
352 |
375 |
436 |
1,168 |
1,168 |
1,468 |
1,468 |
|||||||||||
|
Net income (loss) |
$ (5,040) |
$ (4,228) |
$ 1,095 |
$ 7,038 |
$ (1,775) |
$ 1,248 |
$ 1,316 |
$ 2,394 |
$ (1,135) |
$ (1,135) |
$ 3,183 |
$ 3,183 |
|||||||||||
|
Interest expense |
7,576 |
7,451 |
7,614 |
7,948 |
8,061 |
8,368 |
8,312 |
7,956 |
30,589 |
30,589 |
32,697 |
32,697 |
|||||||||||
|
Income tax (benefit) |
(2,941) |
(577) |
892 |
4,813 |
(1,395) |
417 |
512 |
1,213 |
2,187 |
2,187 |
747 |
747 |
|||||||||||
|
Other expense (income), net |
(21) |
(29) |
(33) |
3 |
(80) |
31 |
92 |
1,072 |
(80) |
(80) |
1,115 |
1,115 |
|||||||||||
|
Operating income (loss) |
$ (426) |
$ 2,617 |
$ 9,568 |
$ 19,802 |
$ 4,811 |
$ 10,064 |
$ 10,232 |
$ 12,635 |
$ 31,561 |
$ 31,561 |
$ 37,742 |
$ 37,742 |
|||||||||||
|
Depreciation and amortization |
15,205 |
13,851 |
13,129 |
12,917 |
14,758 |
13,715 |
13,774 |
12,978 |
55,102 |
55,102 |
55,225 |
55,225 |
|||||||||||
|
Restructuring |
115 |
90 |
677 |
1,605 |
982 |
– |
– |
– |
2,487 |
2,487 |
982 |
982 |
|||||||||||
|
Gain on sale of assets |
– |
– |
(102) |
(11,009) |
– |
– |
– |
– |
(11,111) |
(11,111) |
– |
– |
|||||||||||
|
Accretion of asset retirement obligations |
275 |
319 |
315 |
300 |
241 |
179 |
235 |
223 |
1,209 |
1,209 |
878 |
878 |
|||||||||||
|
Equity-based compensation |
792 |
876 |
900 |
860 |
731 |
(212) |
866 |
887 |
3,428 |
3,428 |
2,272 |
2,272 |
|||||||||||
|
SNA straight-line adjustment ¹ |
2,315 |
2,565 |
3,065 |
3,065 |
3,065 |
3,065 |
2,043 |
– |
11,010 |
11,010 |
8,173 |
8,173 |
|||||||||||
|
Other2 |
(28) |
2,805 |
(96) |
(200) |
2 |
1,038 |
872 |
1,367 |
2,481 |
2,481 |
3,279 |
3,279 |
|||||||||||
|
Adjusted EBITDA attributable to continuing operations |
$ 18,248 |
$ 23,123 |
$ 27,456 |
$ 27,340 |
$ 24,590 |
$ 27,849 |
$ 28,022 |
$ 28,090 |
$ 96,167 |
$ 96,167 |
$ 108,551 |
$ 108,551 |
|||||||||||
|
Reconciliation of Adjusted EBITDA – (Continuing Operations) to previously reported Western Markets Adjusted EBITDA³ |
|||||||||||||||||||||||
|
(In thousands) |
|||||||||||||||||||||||
|
Three Months Ended |
Twelve Months Ended |
||||||||||||||||||||||
|
December 31, 2015 |
September 30, 2015 |
June 30, 2015 |
March 31, 2015 |
December 31, 2014 |
September 30, 2014 |
June 30, 2014 |
March 31, 2014 |
December 31, 2015 |
December 31, 2015 |
December 31, 2014 |
December 31, 2014 |
||||||||||||
|
Adjusted EBITDA attributable to continuing operations |
$ 18,248 |
$ 23,123 |
$ 27,456 |
$ 27,340 |
$ 24,590 |
$ 27,849 |
$ 28,022 |
$ 28,090 |
$ 96,167 |
$ 96,167 |
$ 108,551 |
$ 108,551 |
|||||||||||
|
Cost of services-previous allocation to Eastern Markets |
– |
– |
– |
– |
195 |
143 |
121 |
124 |
– |
– |
583 |
583 |
|||||||||||
|
Customer operations-previous allocation to Eastern Markets |
– |
– |
– |
– |
2,612 |
2,619 |
2,647 |
2,629 |
– |
– |
10,507 |
10,507 |
|||||||||||
|
Corporate operations-previous allocation to Eastern Markets |
– |
– |
– |
– |
2,800 |
2,267 |
2,517 |
2,505 |
– |
– |
10,089 |
10,089 |
|||||||||||
|
Adjusted EBITDA attributable to Western Markets³ |
$ 18,248 |
$ 23,123 |
$ 27,456 |
$ 27,340 |
$ 30,197 |
$ 32,878 |
$ 33,307 |
$ 33,348 |
$ 96,167 |
$ 96,167 |
$ 129,730 |
$ 129,730 |
|||||||||||
|
1 |
Adjustment for impact of recognizing a portion of the billed SNA contract revenues on a straight line basis. |
||||||||||||||||||||||
|
2 |
In 2014, Other includes legal and advisory fees related to new Sprint agreement and certain employee separation charges. |
||||||||||||||||||||||
|
In 2015, Other includes certain non-recurring corporate costs and adjustments for recognizing a portion of the deferred gain |
|||||||||||||||||||||||
|
for towers sold to Grain Management, LLC. |
|||||||||||||||||||||||
|
3 |
Western Markets was previously defined as Holdings less Eastern Markets and, for 2014, included the allocation of |
||||||||||||||||||||||
|
certain corporate expenses to the Eastern Markets. |
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ntelos-holdings-corp-reports-fourth-quarter-and-year-end-2015-results-300235054.html
SOURCE NTELOS Holdings Corp.
Released March 11, 2016
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