SHENANDOAH TELECOMMUNICATIONS COMPANY WAYNESBORO, Va., March 11, 2016 /PRNewswire/ -- NTELOS Holdings Corp. (NASDAQ: NTLS) ("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
Other(2) (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 -
Other(2) (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
Other(2) (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 EBITDA(3)
(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 Markets(3) $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)
------------------------
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
Other(2) (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
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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 - -
Other(2) (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
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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
Other(2) (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
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Reconciliation of Adjusted EBITDA - (Continuing Operations) to previously reported Western Markets Adjusted EBITDA(3)
(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 Markets(3) $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.
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.
