NTELOS Holdings Corp. (the “Company,” NASDAQ: NTLS), a leading regional provider of nationwide wireless voice and data communications and home to the “best value in wireless,” announced today operating results for its second quarter ended June 30, 2013.
Second Quarter Highlights
• Operating revenues for the second quarter 2013 increased 7.4% to $119.9 million, compared to $111.6 million for the same period in 2012;
• Total net subscriber additions were 3,800 for the second quarter 2013, compared to 3,500 for the same period in 2012;
• Postpay churn for the second quarter 2013 was 1.8%, compared to 1.9% for the same period in 2012; and
• Postpay ARPU for the second quarter 2013 was $63.48, compared to $56.42 for the same period in 2012.
“During the second quarter of 2013, we continued to successfully execute against our strategy to grow our business,” said James A. Hyde, CEO of NTELOS Holdings Corp. “Retail revenues increased for the sixth straight quarter, driven by growth in our subscriber base and continued expansion of ARPU. At the same time, our wholesale revenues, primarily associated with Sprint, remained strong driven by continued data usage on our network.”
Highlights from Operations
• Retail revenues, which include subscriber and equipment revenue, increased 12.6% to $78.4 million for the second quarter 2013, compared to $69.6 million for the second quarter 2012;
• Wholesale and other revenue derived primarily from the Company’s Strategic Network Alliance with Sprint were $41.4 million for the second quarter 2013, compared to $41.9 million for the second quarter 2012; and
• Adjusted EBITDA was $41.2 million for the second quarter 2013, compared to $34.0 million for the second quarter 2012.
Total Subscribers
• Total subscribers were 454,800 as of June 30, 2013, compared to 424,800 for the same period of 2012;
• Total subscriber gross additions for the second quarter were 40,100, compared to 36,800 for the same period of 2012; and
• Total net subscriber additions for the second quarter were 3,800, compared to 3,500 for the same period of 2012.
Postpay Subscribers
• Postpay subscriber gross additions for the second quarter 2013 were 16,300, compared to 16,800 for the second quarter 2012 and 20,200 for the first quarter 2013;
• Net postpay subscriber additions were 200 for the second quarter 2013, compared to 700 for the second quarter 2012 and 3,300 for the first quarter 2013;
• Postpay churn for the second quarter 2013 was 1.8%, compared to 1.9% for the second quarter 2012 and 1.9% for the first quarter of 2013; and
• As of June 30, 2013, total postpay subscribers were 298,700.
Prepay Subscribers
• Prepay subscriber gross additions for the second quarter 2013 were 23,800, compared to 20,000 for the second quarter 2012 and 28,300 for the first quarter 2013;
• Net prepay subscriber additions were 3,600 for the second quarter 2013, compared to 2,800 for the second quarter 2012 and 8,100 for the first quarter 2013;
• Prepay churn for the second quarter 2013 was 4.4%, compared to 4.2% for the second quarter 2012 and 4.6% for the first quarter of 2013; and
• As of June 30, 2013, total prepay subscribers were 156,100.
Mr. Hyde concluded, “Looking ahead, we remain focused on improving our service offering, which includes expanding our network capabilities and further enhancing the customer experience. Our plan to roll out LTE in our first markets during the second half of 2013 remains on track. In addition, we are also exploring new and innovative ways to maximize the value of our network assets. For example, in May, we announced a pilot program with DISH Network to potentially provide fixed-mobile broadband services within portions of our footprint. Overall, we are excited about the growth prospects of both our retail and wholesale businesses and will continue to seek ways to maximize value for all key stakeholders.”
Net Income
Net income after net income attributable to noncontrolling interests was $9.4 million, or $0.43 per diluted share, for the second quarter 2013 compared to $5.6 million, or $0.26 per diluted share, for the second quarter 2012.
Declaration of Dividend
On July 25, 2013, the Company’s Board of Directors declared a quarterly cash dividend on its common stock in the amount of $0.42 per share to be paid on October 11, 2013 to stockholders of record on September 13, 2013.
Business Outlook
For the year ending December 31, 2013, the Company updated its full year 2013 Adjusted EBITDA guidance to between $140.0 million and $145.0 million (previous range was $135.0 million and $145.0 million). In addition, the Company reiterates its full year 2013 capital expenditures guidance of between $75.0 million and $85.0 million.
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