EXHIBIT 99.1
CAI WIRELESS SYSTEMS, INC.
FOR IMMEDIATE RELEASE
Investor Relations Contact: Company Contact:
Jason Thompson Jared Abbruzzese, CEO
Lippert/Heilshorn & Associates 518/462-2632
212/838-3777
CAI WIRELESS SYSTEMS, INC. ANNOUNCES
1995 FOURTH QUARTER AND YEAR-END RESULTS
Albany, NY, May 29, 1996 - CAI Wireless Systems, Inc. ("CAI") (NASDAQ NM:
CAWS) today announced results for fourth quarter and year-ended March 31, 1996.
For the fourth quarter ended March 31, 1996, sales increased 184% to
$10,344,000, versus $3,637,000 for the comparable year-ago quarter, primarily
due to system acquisitions and subscriber additions. Operating loss before
depreciation and amortization for the most recent quarter decreased to
$(2,003,000), versus $(3,433,000) for comparable year-ago quarter. Net loss for
the most recent quarter was $(11,186,000) or $(0.37) per common share, versus
$(7,011,000), or $(0.47) per common share, for the comparable year-ago quarter.
For the year ended March 31, 1996, sales increased 497% to $30,682,000
versus $5,141,000 for the year ended March 31, 1995, primarily due to system
acquisitions and subscriber additions. Operating loss before depreciation and
amortization decreased 4% to $(10,115,000) versus $(10,553,000) for the
comparable year-ago period. Net loss for the most recent year was
$(40,985,000), or $(1.73) per common share, versus $(14,107,000) or $(0.93) per
common share, for the year ended March 31, 1995.
Jared Abbruzzese, Chairman and Chief Executive Officer of CAI, said,
"Through an unprecedented series of mergers and acquisitions in the wireless
cable industry, CAI's sales have increased nearly five-fold in the past year.
We added 52,200 subscribers, expanding our subscriber base by 159% last year
and are beginning to see improved operating results in the most current
quarter."
CAI currently operates six wireless cable systems in New York City,
Rochester and Albany, NY, Philadelphia, PA, Washington, DC, and
Norfolk/Virginia Beach, VA and has a portfolio of wireless cable channel rights
in eight additional markets, including Long Island, Buffalo and Syracuse, NY,
Boston, MA, Providence, RI, Hartford, CT, Baltimore, MD, and Pittsburgh, PA. In
addition, CAI owns approximately 54% of CS Wireless Systems, Inc., ("CS
Wireless") which is jointly owned by Heartland Wireless Communications, Inc. CS
Wireless has approximately 5.7 million line-of-sight ("LOS") households and
55,800 subscribers in 12 markets located primarily in the Midwest and Southwest
regions of the United States.
- tables follow -
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CAI WIRELESS SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended,
March 31, March 31,
1996 1995
REVENUES $ 10,344,000 $ 3,637,000
EXPENSES:
Programming and license fees 4,158,000 1,417,000
Marketing 935,000 1,302,000
General and administrative 7,254,000 4,351,000
12,347,000 7,070,000
OPERATING LOSS BEFORE DEPRECIATION
AND AMORTIZATION (2,003,000) (3,433,000)
Depreciation and amortization 7,050,000 2,427,000
OPERATING LOSS (9,053,000) (5,860,000)
OTHER INCOME (EXPENSE):
Other income 2,662,000 55,000
Interest expense (10,795,000) (1,517,000)
(8,133,000) (1,462,000)
LOSS BEFORE PROVISION FOR
INCOME TAXES (17,186,000) (7,322,000)
Provision for income tax benefits 6,000,000 --
LOSS BEFORE MINORITY INTEREST (11,186,000) (7,322,000)
Minority interest -- 311,000
NET LOSS $(11,186,000) $(7,011,000)
LOSS PER COMMON SHARE $(0.37) $(0.47)
Weighted average common shares
outstanding 37,829,482 15,551,723
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CAI WIRELESS SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Year Ended
March 31, March 31,
1996 1995
REVENUES $ 30,682,000 $5,141,000
EXPENSES:
Programming and license fees 12,583,000 2,021,000
Marketing 3,525,000 2,434,000
General and administrative 24,689,000 11,239,000
40,797,000 15,694,000
OPERATING LOSS BEFORE DEPRECIATION
AND AMORTIZATION (10,115,000) (10,553,000)
Depreciation and amortization 24,718,000 3,640,000
OPERATING LOSS (34,833,000) (14,193,000)
OTHER INCOME (EXPENSE):
Other income 6,118,000 937,000
Interest expense (24,592,000) 1,748,000)
(18,474,000) (811,000)
LOSS BEFORE PROVISION FOR
INCOME TAXES (53,307,000) (15,004,000)
Provision for income tax benefits 12,000,000 --
LOSS BEFORE MINORITY INTEREST (41,307,000) (15,004,000)
Minority interest 322,000 897,000
NET LOSS $(40,985,000) $(14,107,000)
LOSS PER COMMON SHARE $ (1.73) $ (0.93)
Weighted average common shares
outstanding 27,075,578 15,456,540
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