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 and financial results for its second quarter ended June 30, 2014.
Second Quarter 2014 Highlights
- Extended and amended Strategic Network Alliance (“SNA”) with Sprint until December 2022;
- Launched 4G LTE in Richmond and Norfolk metropolitan markets, providing coverage of 2.8 million POPs as of June 30, 2014;
- Operating revenues were $117.8 million for the second quarter 2014; compared to $119.9 million for the second quarter 2013; and
- Adjusted EBITDA was $34.4 million for the second quarter 2014, compared to $41.2 million for the second quarter 2013.
“The successful extension and expansion of our SNA with Sprint during the quarter marked a significant milestone for nTelos. We are pleased with this outcome as it paves the way for nTelos to build the most robust network in our footprint and to deliver an improved user experience to our retail and wholesale customers,” said Michael A. Huber, Chairman of the Board of ntelos Holdings Corp.
Subscriber Highlights
Total Subscribers
- Total subscribers were 458,100 as of June 30, 2014, compared to 454,800 for the same period of 2013;
- Total subscriber gross additions for the second quarter 2014 were 39,000, compared to 40,100 for the same period of 2013; and
- Total net subscriber additions for the second quarter 2014 were 400, compared to 3,800 for the same period of 2013.
Postpay Subscribers
- Postpay subscriber gross additions for the second quarter 2014 were 20,400, compared to 16,300 for the second quarter 2013 and 20,200 for the first quarter 2014;
- Net postpay subscriber additions were 3,300 for the second quarter 2014, compared to 200 for the second quarter 2013 and 300 for the first quarter 2014;
- Postpay churn for the second quarter 2014 was 1.8%, compared to 1.8% for the second quarter 2013;
- ARPA increased 2.9% to $137.20 for the second quarter 2014, compared to $133.34 for the same period in 2013; and
- As of June 30, 2014, total postpay subscribers were 308,200.
Prepay Subscribers
- Prepay subscriber gross additions for the second quarter 2014 were 18,600, compared to 23,800 for the second quarter 2013 and 25,200 for the first quarter 2014;
- Net prepay subscriber additions (losses) were (2,900) for the second quarter 2014, compared to 3,600 for the second quarter 2013 and 3,100 for the first quarter 2014;
- Prepay churn for the second quarter 2014 was 4.5%, compared to 4.4% for the second quarter 2013; and
- As of June 30, 2014, total prepay subscribers were 149,900.
“During the quarter, we delivered solid results in an increasingly competitive operating environment. We will continue to make strategic investments in the business to improve our operations and to drive increased shareholder value,” said Stebbins B. Chandor, EVP & Chief Financial Officer of ntelos Holdings Corp.
Net Income
Net income after net income attributable to noncontrolling interests was $0.5 million, or $0.02 per diluted share, for the first quarter 2014, compared to $9.4 million, or $0.43 per diluted share, for the second quarter 2013.
Business Outlook
For the year ending December 31, 2014, the Company reiterates its full year 2014 Adjusted EBITDA guidance of between $128.0 million and $135.0 million and full year 2014 capital expenditures guidance of between $110.0 million and $120.0 million.
Conference Call
The Company will host a conference call with investors and analysts to discuss its second quarter 2014 results this morning, July 28, 2014, at 8:00 a.m. ET. To participate, please dial 1-888-317-6002, 1-855-669-9657 in Canada and 1-412-317-1083 for international, approximately 10 minutes before the scheduled start of the call. The conference call and accompanying presentation will also be accessible live on the Investor Relations section of the Company’s website at http://ir.ntelos.com.
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