TYPE: 425
SEQUENCE: 1
DESCRIPTION: AMENDED COMPANY PRESENTATION
Filed by: NTELOS Inc.
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: NTELOS Inc.
Commission File No. 000-16751
This Amendment amends and restates in its entirety the Form 425 filed with the
Commission on September 17, 2001 in order to correct certain typographical
errors.
NTELOS and CEi (Conestoga Enterprises, Inc.)
Picture of products and customers
Forward-Looking Statements
--------------------------
The Company wishes to caution readers that forward-looking statements made by
the Company are based on a number of assumptions, estimates and projections.
Such statements include, but are not limited to, statements concerning the
proposed transaction, the combination's expected accretiveness to NTELOS'
earnings, expected synergies and pro forma financial and other information.
These statements are based upon the current beliefs and expectations of NTELOS'
and Conestoga Enterprises' management, are not guarantees of future performance
and involve risks and uncertainties, including those set forth in reports filed
by the Company with the Securities and Exchange Commission as well as the
following: the ability to obtain governmental approvals of the merger on the
proposed schedule; the failure of NTELOS' and Conestoga Enterprises'
stockholders to approve the merger; the risk that the businesses will not be
integrated successfully; the risk that the synergies from the merger may not be
fully realized or may take longer to realize than expected; and disruption from
the merger making it more difficult to maintain relationships with customers,
employees or suppliers. Any significant deviations from the assumptions,
estimates and projections contained herein could cause actual results to differ
materially from those in the forward-looking statements. The Company undertakes
no obligation to revise or update such statements to reflect current events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
WE URGE INVESTORS AND SECURITY HOLDERS TO READ NTELOS' REGISTRATION STATEMENT ON
FORM S-4 AND THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT
DOCUMENTS RELATING TO THE MERGER TRANSACTION DESCRIBED HEREIN, WHEN THEY BECOME
AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. When these and other
documents relating to the transaction are filed with the Commission, investors
and security holders may obtain a free copy at the Commission's web site at
www.sec.gov. The documents filed with the Commission by NTELOS may also be
obtained for free from NTELOS by directing a request to NTELOS Inc., P. O. Box
1990, Waynesboro, Virginia 22980, Attn: Investor Relations, telephone: (540)
946-3500. Certain of these documents may also be available on NTELOS' website at
www.ntelos.com. WHEN THEY BECOME AVAILABLE, READ THE DEFINITIVE REGISTRATION
STATEMENT AND JOINT PROXY STATEMENT/PROSPECTUS CAREFULLY BEFORE MAKING A
DECISION CONCERNING THE MERGER.
Strategic Vision
----------------
Create leading ICP focused on the Mid-Atlanta market, uniquely positioned to
capitalize on attractive growth opportunities.
. Relentless focus on the customer
-- Full product suite: Wireline (ILEC, CLEC, data) and PCS
-- Single point of contact and single bill
-- 24/7 customer service
-- Deep local presence
. Focus on organic growth opportunities within current markets
. Solidify position as regional consolidator
-- Create cross-promotion / cross-marketing revenue synergies
-- Scale world-class operating support systems (IT, customer care, billing)
-- Leverage regional fiber optic network
. Create value for stakeholders, including shareholders, debt holders,
customers, employees, and communities
4
Investment Highlights
---------------------
. Leading regional Integrated Communications Provider
-- Established ILEC business provides stable revenues and cash flow
-- Region's largest PCS provider utilizing CDMA technology
. Conestoga acquisition enhances position as premier regional ICP
. Significant liquidity and financial flexibility
-- Fully-funded business plan
. Experienced management team
-- Proven track record of integrating acquisitions
. Preeminent financial sponsorship
5
Leading Regional ICP
--------------------
. Regionally-focused ICP
- Long operating history, founded in 1897
- Public for over 30 years (NASDAQ: NTLO)
- Run-rate revenues of $214.4MM
- $1.2Bn enterprise value
. Wireline
- 51,938 ILEC access lines
- 26,509 CLEC access lines
- 67,098 Internet/DSL subscribers
- 1,500 route miles, 32,000 fiber miles
. PCS
- 10.3MM licensed PCS pops
- 198,656 subscribers
- 740 cell sites
Map of Virginia, West Virginia, Maryland, Portions of Tennessee, Portions of
Ohio and Portions of Pennsylvania showing regions with:
CLEC and Internet
PCS, CLEC and Internet
PCS & ISP
PCS
ILEC
6
Leading Regional ICP
--------------------
Key Recent Milestones
[GRAPH]
1995 - Introduced Internet Service Provider (ISP) Offering
1996 - VA Alliance acquired digital PCS licenses
1997 - Formed WV PCS Alliance
Launched digital PCS service in VA
Celebrated 100th anniversary
1998 - Launched digital PCS service in WV
Launched CLEC services in VA
Opened integrated customer care center
1999 - Acquired Net Access and Cornerstone, regional ISP's
Launched CLEC services in WV
2000 - Implemented consolidated billing
Divested directory assistance and towers
Acquired PrimeCo's assets and operations in Norfolk - Richmond, VA
Raised $950MM of capital ($250MM of preferred and $700MM of debt)
2001 - Merged with R&B Communications
Announced Sale of CENI Wireless to VoiceStream
Announced Acquisition of Conestoga
7
Proven Track Record of Growth
-----------------------------
Leading Regional ICP
[Graph]
Customer (1)
54% CAGR Since 1996
-------------------------------------------------------------------------------------
Year Internet/DSL ILEC/CLEC PCS Total
---- ------------ --------- ---
Subscribers Access Lines Subscribers
----------- ------------ -----------
-------------------------------------------------------------------------------------
1996 .3 43.4 --- 43.7
-------------------------------------------------------------------------------------
1997 4.8 45.5 23.8 74.1
-------------------------------------------------------------------------------------
1998 8.7 48.9 69.8 127.4
-------------------------------------------------------------------------------------
1999 47.3 59.3 122.1 228.7
-------------------------------------------------------------------------------------
2000 62.9 72.5 168.4 303.8
-------------------------------------------------------------------------------------
2001E 70 85 225 (2) 380.0
-------------------------------------------------------------------------------------
Revenues (1)
36% CAGR Since 1996
-------------------------------------------------------------------------
Year Wireline/Other PCS Total
---- -------------- ---
-------------------------------------------------------------------------
1996 48.5 0.7 49.2
-------------------------------------------------------------------------
1997 53.1 11.3 64.4
-------------------------------------------------------------------------
1998 60.9 36.0 96.9
-------------------------------------------------------------------------
1999 75.3 66.8 142.1
-------------------------------------------------------------------------
2000 87.7 91.8 179.5
-------------------------------------------------------------------------
2001E 97 128 225.0
-------------------------------------------------------------------------
(1) Pro forma for R&B and PrimeCo
(2) PCS customer estimate reflects 22,000 - 25,000 4Q net additions and year-end
customer mix of:
----------------------------------------------------
2000 2001E
---- -----
----------------------------------------------------
Pre-Pay 61.4 55.0
----------------------------------------------------
Post-Pay 107.0 170.0
----------------------------------------------------
168.4 225.0
----------------------------------------------------
8
ILEC with Attractive Competitive Position
-----------------------------------------
Leading Regional ICP
Strong financial performance
- 63% EBITDA margin/(1)/
. No competition in ILEC markets to date, despite deregulation
. ILEC operates under small company status, which is lightly regulated
. Virginia State Corporation Commission has taken a progressive stance on
supporting the value of rural telephone companies and the role they play in
economic development in these regions
. Process for rate increases is less cumbersome than for large telcos
. Ranked a leading ILEC service provider in Virginia
Note: (1) For the 6 months ending June 30, 2001
9
High-Growth PCS Business
------------------------
Leading Regional ICP
. Own and control licenses, network, distribution channels and brand
. Focus on in-region market niche with localized marketing
-- Intra-regional "one-rate" plans (88-94% of subscribers)
-- National "one-rate" (6-12% of subscribers)
-- Target post-pay customers - 59% growth estimated for 2001
. Expand robust digital CDMA PCS network
. Emphasize customer service via consolidated selling effort and single bill
. Target attractive markets
-- Individual - convenience users in the 25-45 age group
-- Business - regional small to medium sized businesses
. Wholesale Provider of Wireless Network
-- Sprint/Horizon Agreement: New Agreement signed August 24, 2001
10
Digital PCS
================================================================================================================================
PCS Spectrum
------------
Virginia West Virginia Pennsylvania
BTA POPS MHz BTA POPS MHz BTA POPS MHz
------------------------------------------- ---------------------------------------- ------------------------------------------
Brunswick 45.2 30 * Beckley 168.2 40 Harrisburg 687.4 10
Tri-Cities(sale pending) 10 * Bluefield 177.3 30 York-Hanover 463.3 10
* Charlottesville 215.3 30 * Charleston 487.0 30 Lancaster 457.0 10
* Danville 169.7 30 * Clarksburg 193.9 10 Reading 356.0 10
Fredericksburg 136.3 10 Cumberland, MD 160.1 40 Williamsport 160.6 10
Harrisonburg 143.1 20 * Fairmont 56.4 40 State College 133.9 10
* Lynchburg 158.4 30 * Huntington 369.1 30 Johnstown 235.9 10
* Martinsville 89.0 30 Logan 41.0 30 Altoona 223.9 25
Norfolk 1,763.4 20 Martinsburg 354.6 20
Richmond 1,210.4 20 * Morgantown 107.0 25
* Roanoke 639.6 30 Parkersburg 181.8 30
* Staunton-W'boro 109.4 30 Portsmouth, OH 95.7 30
Winchester 158.1 30 Wheeling 212.4 40
Williamson 186.2 30
------------------------------------------- ---------------------------------------- ------------------------------------------
4,837.9 2,790.7 2,718.0
------------------------------------------- ---------------------------------------- ------------------------------------------
Total POPs: 10,346,600 Operational POPS: 6,038,000
*Wholesale BTA POPs: 2,763,000
11
Integrated CLEC Operating Strategy
----------------------------------
Leading Regional ICP
o Hybrid facilities-based/"smart-build" strategy
-- Leverage fiber optic network and ILEC switching platform
-- Remote switching in COs
o Target businesses through a direct sales strategy
o Bundle local service with long distance, DSL and digital PCS
-- PCS service emphasized
o Leverage local brand name recognition and strong customer service
o Focus on long-term, sustainable revenues and profitability
12
Internet Operating Strategy
---------------------------
Leading Regional ICP
o Broad product offering of fast and reliable services
-- Offers local dial-up, dedicated and discounted bundled services
-- All digital network
-- Web hosting available
o 24/7 customer care
o High speed data services
-- DSL: offered in a growing number of markets in four states
-- Wireless spectrum: LMDS (1.3MM POPs), MMDS (850,000) households
13
Extensive Fiber Network
-----------------------
. 1,500 route miles; 32,000 fiber miles
. Connectivity to major retail cities
. Differentiating characteristics
- Wholesale revenue stream
- Significant operating cost reduction
- Significant increase in reliability
[Graph]
--------------------------------------------------------------------
Period EBITDA Revenues
------ ------ --------
--------------------------------------------------------------------
1Q 00 1,385 1,876
--------------------------------------------------------------------
2Q 00 1,520 2,060
--------------------------------------------------------------------
3Q 00 1,406 1,893
--------------------------------------------------------------------
4Q 00 1,594 2,350
--------------------------------------------------------------------
1Q 01 1,862 2,323
--------------------------------------------------------------------
2Q 01 1,769 2,205
--------------------------------------------------------------------
Map of Virginia, West Virginia, Maryland, Portions of Tennessee, Portions of
Ohio, and Portions of Pennsylvania showing network that is:
In Service
Planned for 2001
Future
14
Conestoga Opportunity
---------------------
Transaction Summary
o Purchase Price and Consideration
--$40 per Conestoga share
--$335MM plus assumption of $73MM of debt
. $60 MM anticipated proceeds from sale of Conestoga Wireless
. $21 MM anticipated proceeds from sale of Conestoga Towers
--Up to 58% cash consideration funded by equity infusion of up to $200MM
from Welsh, Carson, Anderson & Stowe ("WCAS")
--At least 42% NTELOS common stock with approximate value of $140 MM
--Pricing collar on NTLO stock: $18 to $30
o Accounting / Tax treatment
--Purchase accounting/Tax-free reorganization
o Closing targeted around year-end of 2001
--No significant shareholder- or regulatory-related obstacles anticipated
--WCAS financing fully committed
15
Summary of Transaction Economics
--------------------------------
$MM, except per share & multiple figures
Offer Price per Share $40.00
Equity Value $335
Net Debt (6/30/01) 73
Aggregate Value $408
Value of CLEC/LD Business/(1)/ $20.0 - $40.0
Value of Cable, Paging, and Fiber Assets 5.0 - 10.0
Estimated Value of Wireless Assets 60.0 - 60.0
Value from Tower Agreement 21.0 - 21.0
Implied Value of ILEC Business $302.0 - $277.0
Multiple of 2001E EBITDA 9.2x - 8.4x
Multiple of Access Lines (As of 6/30/01) $3,582 - $3.286
(1) Based on 14,000 CLEC access lines at $1,000 to $2,500 per line, plus the
value of 38,000 LD customers
16
Terms of Proposed Collar
------------------------
o Conestoga shareholders receive a fixed value of $40 within a NTELOS share
price range of $18 to $30
o Outside this range, the implied exchange ratio becomes fixed
[Graphs]
Transaction Value Per Share ($)
NTELOS Share Price Value
14.00 approximately 36.5
18.00 40
22.00 40
26.00 40
30.00 40
34.00 approximately 42
Pro Forma Ownership of New NTELOS Shareholders (%)
NTELOS Share Price Percentage
14.00 approximately 43.8
18.00 approximately 43.8
22.00 42
26.00 approximately 40.5
30.00 approximately 39.5
34.00 approximately 39.5
17
Conestoga Opportunity
---------------------
Leading Pennsylvania ICP
. ILEC - 84,000 access lines
. CLEC - 14,000 access lines
. PCS - 18,000 subscribers
. Historical Financial Performance:
$MM 1998 1999 2000 1H `01
---- ---- ---- ------
------------------------------------------------------------------------------
Revenues 77.3 87.1 87.6 45.4
------------------------------------------------------------------------------
EBITDA
------------------------------------------------------------------------------
ILEC 28.9 31.0 31.3 17.1
------------------------------------------------------------------------------
CLEC & Other 2.4 0.5 (0.4) (0.5)
------------------------------------------------------------------------------
Wireless (3.9) (5.0) (5.1) (1.8)
---- ---- ---- ----
------------------------------------------------------------------------------
Total 27.4 26.5 25.8 14.8
------------------------------------------------------------------------------
18
Conestoga Opportunity
---------------------
Leading Pennsylvania ICP (cont.)
. ILEC: Buffalo Valley Tel. & Conestoga Tel.
--62% of total operating revenues
--Access line CAGR of 5.4% (1996 to 2000)
--Approximately $34MM of annual EBITDA
--100% digital local exchanges
--97% DSL capable
. CLEC: CEI Networks
--Operates in 5 Verizon markets in central PA
--Leverages Conestoga network and brand
--130 miles of fiber and 75 miles of coaxial cable
. PCS: Conestoga Wireless Company--Announced sale to VoiceStream for $60MM
19
Conestoga Opportunity
---------------------
Transaction Rationale - Significant, Identifiable Benefits to Accrue from
Conestoga Acquisition
o Enhanced scale and depth to accelerate business plan
o Complementary geographic markets
o Strengthened financial positioning
-- Increased liquidity through greater trading volume
-- Broader analyst coverage/deepened institutional following
o Potential revenue and cost synergies
o Optimal positioning as regional consolidator
o Management depth
. Enhanced growth and profitability prospects
. Significant improvement in credit profile through enhanced cash flows,
new equity infusion and substantially larger asset base
. Conestoga management and organization provide an established base of
operations for expansion in Pennsylvania
20
Conestoga Opportunity
---------------------
Significant Scale - A Premier Regional ICP Under All Benchmarks (1)
[Graphs]
Run-Rate Revenue ($MM)
------------------------------------------------------------
Commonwealth 306
------------------------------------------------------------
Pro Forma NTELOS (2) 299
------------------------------------------------------------
CT Com 127
------------------------------------------------------------
Hickory Tech 108
------------------------------------------------------------
D&E 87
------------------------------------------------------------
North Pittsburgh Systems 85
------------------------------------------------------------
Enterprise Value ($MM)
------------------------------------------------------------
Pro Forma NTELOS 1,595
------------------------------------------------------------
Commonwealth 1,190
------------------------------------------------------------
Hickory Tech 409
------------------------------------------------------------
CT Com 406
------------------------------------------------------------
D&E 242
------------------------------------------------------------
North Pittsburgh Systems 208
------------------------------------------------------------
ILEC & CLEC Access Lines (000's)
------------------------------------------------------------
Commonwealth 429
------------------------------------------------------------
Pro Forma NTELOS 176
------------------------------------------------------------
CT Com 138
------------------------------------------------------------
North Pittsburgh Systems 86
------------------------------------------------------------
Hickory Tech 76
------------------------------------------------------------
D&E 65
------------------------------------------------------------
PCS Subscribers (000's)
------------------------------------------------------------
Triton 502
------------------------------------------------------------
Alamosa 261
------------------------------------------------------------
Pro Forma NTELOS (2) 199
------------------------------------------------------------
AirGate 179
------------------------------------------------------------
US Unwired 172
------------------------------------------------------------
UbiquiTel 109
------------------------------------------------------------
(1) Source: Morgan Stanley, as of 6/30/01
(2) Excludes CENI Wireless
21
Conestoga Opportunity
---------------------
Complementary Geographic Footprint
Map of Virginia, West Virginia, Maryland, North Carolina, Portions of Tennessee,
Portions of Ohio, and Portions of Pennsylvania showing:
NTELOS
CENI
Growth Opportunities
Subs (1) Pro Forma
ILEC 136.0
PCS 198.7
CLEC 40.5
Note: (1) Subs are in thousands and represent 2Q'01 reported numbers. Excludes
CENI Wireless PCS Subscribers to be sold.
22
Conestoga Opportunity
---------------------
Enhanced Financial Profile
($ in MM) - NTELOS Conestoga Conestoga Pro Forma Pro Forma without
Annualized with Wireless without with CENI CENI Wireless
1H01 Wireless Wireless
---------------------------------------------------------------------------------------------------
Revenues 214.4 90.8 83.8 305.2 298.2
---------------------------------------------------------------------------------------------------
EBITDA 18.0 29.5 32.7 47.5 50.7
---------------------------------------------------------------------------------------------------
EBITDA Margin 8.4 32.5 39.0 15.6 17.0
(%)
---------------------------------------------------------------------------------------------------
Total Debt/ Total 0.59 0.48 0.23 0.58 0.56
Capitalization (x)
---------------------------------------------------------------------------------------------------
EBITDA/ Cash 0.22 5.24 25.15 0.58 0.64
Interest (x)
---------------------------------------------------------------------------------------------------
23
Conestoga Opportunity
---------------------
Sources of Potential Synergies
Revenues
. Accelerate penetration in existing markets and entry into new markets
. Faster rollout of new services/growth initiatives
. Enhanced distribution capability
Costs
. $2MM+ in operational synergies from integration of billing, customer
care and other back-office functions
. Economies of scale in purchasing, marketing and new product development,
etc.
24
Experienced Management Team
---------------------------
10 Senior Management with an Average of 18 Year Telecom Experience
James S. Quarforth - CEO
CEO since 1990
21 year of industry experience
J. Allen Layman - President and Chairman
Formerly President and CEO of R&B
27 years of industry experience
Carl A. Rosberg - Executive VP & COO
Formerly SVP of Operations, 1990-1999
16 years of industry experience
Warren C. Catlett - SVP Corporate Development
Formerly VP of Business Development
17 years of industry experience, including 6 years at NECA
Albert H. Kramer - SVP Pennsylvania Operations
Joined CEI in 1995, President since 1998
11 years at Denver and Ephrata Telephone Company
David R. Maccarelli - SVP and CTO
Formerly SVP of Network Services, 1994-1999
18 years at Bell Atlantic PA and corporate
Mary McDermott - SVP Legal & Regulatory Affairs
Most recently SVP & General Counsel for Pathnet Telecommunications
Industry experience also includes senior positions at USTA, PCIA & NYNEX
Michael B. Moneymaker - SVP and CFO
CFO since 1995
Ernst & Young, 1980-1995
Don Marie Persing - SVP Support
Formerly VP of Customer Service at PCS PrimeCo, Division Level at AT&T
27 years of industry experience
Charles A. Richardson - SVP Wireline Operations
Formerly SVP at R&B
26 years of industry experience
25
Experienced Management Team
---------------------------
Proven Track Record of Successful Integration of Customers, Products and
Employees
2/01
R&B Communications, Inc. in Roanoke VA Metropolitan Area
Key Achievements
. Integration of back-office systems and customer care on schedule
. Promotion and growth opportunities for employees
7/00
PrimeCo's Wireless Operations in Norfolk-Richmond, VA market
Key Achievements
. Increase in quarterly gross adds by 55%
. 14,066 net adds in 1H 2001 (more than 2000 annual net adds)
. Strategic re-positioning
--Shift from 51% post pay customers ending 2000 to 67% post pay customers by
2Q01
--Completed repositioning of pre-pay customer base in 3Q01
--New pre-pay platform/product launched end of 3Q01
. Completion of product offering, customer care and engineering integration
. Promotion and growth opportunities for employees
. Completion of billing system conversion resulting in one-time customer loss
of approximately 3,000 in 3Q01 due to more stringent credit parameters
26
Strong Financial Sponsorship
----------------------------
Significant Financial and Strategic Benefits
Welsh, Carson, Anderson & Stowe
Morgan Stanley
. Access to capital
. Enhanced credibility
. Strategic/industry expertise
--Telecom landscape
--Capital markets
. Networking
. Board representation
27
Strong Revenue and EBITDA Growth
--------------------------------
[Graphs]
Wireline/Other Revenues and EBITDA ($MM)
--------------------------------------------------
Period EBITDA Revenues (1)
------ ------ ------------
--------------------------------------------------
1Q 00 8.1 20.7
--------------------------------------------------
2Q 00 8.0 21.7
--------------------------------------------------
3Q 00 8.6 22.0
--------------------------------------------------
4Q 00 9.6 23.5
--------------------------------------------------
1Q 01 10.8 24.9
--------------------------------------------------
2Q 01 10.2 24.3
--------------------------------------------------
Wireless Revenues and EBITDA
----------------------------------------------------------------------------
Period EBITDA before COA EBITDA Revenues (2)
------ ----------------- ------ ------------
----------------------------------------------------------------------------
1Q 00 2.1 (8.9) 21.2
----------------------------------------------------------------------------
2Q 00 5.2 (4.5) 23.8
----------------------------------------------------------------------------
3Q 00 5.2 (5.6) 24.0
----------------------------------------------------------------------------
4Q 00 2.7 (10.1) 22.8
----------------------------------------------------------------------------
1Q 01 6.0 (7.0) 27.7
----------------------------------------------------------------------------
2Q 01 8.0 (5.0) 30.3
----------------------------------------------------------------------------
Notes: (1) Pro Forma for R&B
(2) Pro Forma for PrimeCo, Virginia PCS Alliance and West Virginia PCS Alliance
28
Improving PCS Operating Metrics
--------------------------------------------------------------------------------
Monthly Subscriber Churn Virginia West & West Virginia
Virginia East
[GRAPH] [GRAPH]
Period Pre-Pay Post-Pay Blended Period Pre-Pay Post-Pay Blended
4Q 00 9.39% 3.91% 6.68% 4Q 00 6.75% 3.59% 4.33%
1Q 01 7.18 3.16 5.05 1Q 01 5.95 3.15 3.80
2Q 01 8.32 2.36 4.63 2Q 01 5.77 2.34 3.10
Post Pay Customer Additions & Mix Virginia West & West Virginia
Virginia East
[GRAPH] [GRAPH]
Period Gross Additions Ending Mix Period Gross Additions Ending Mix
4Q 00 39.6% 51.2% 4Q 00 70.5% 76.8%
1Q 01 46.9 55.9 1Q 01 69.5 76.8
2Q 01 73.9 67.1 2Q 01 78.8 79.2
[LOGO]
29
Significant Liquidity and Financial Flexibility
-----------------------------------------------
Fully funded with over $350MM available funds
Cash and Equivalents (6/30/01)
NTELOS(1) $ 56.5MM
Conestoga $ 15.9MM
Available Funds under Credit Facilities
NTELOS $ 95.0MM
Conestoga $ 63.5MM
---------
Total Committed Capital $ 230.9MM
Expected Proceeds from Non-Core Assets
Kingsport license in Tennessee (2) $ 11.6MM
Up to 82 Towers in Virginia East (2) Up to $ 27.9MM
840,000 shares of Illuminet Holdings at 6/30/01 (3) $ 27.1MM
Conestoga Wireless to VoiceStream (2) $ 60.0MM
Transaction costs of CENI Merger and Dispositions $ (12.5MM)
---------
Total Available Funds (4) $345.00MM
Note: (1) Includes restricted cash of $53.3MM
(2) Definitive agreements executed, subject to routine closing
conditions
(3) As of 9/10/01, 668,900 shares have been sold in 3Q for proceeds of
$21.4MM
(4) Other liquidity sources include PCS, MMDS, LMDS & WCS spectrum
licenses, and cable, alarm and paging operations.
30
NTELOS Pro Forma Operating Results(1) (including Conestoga)
--------------------------------------------------------
[Graphs]
Revenues
---------------------------------------------------------------------------------------------
Period Conestoga NTELOS Pro Forma
------ --------- ------ ---------
---------------------------------------------------------------------------------------------
1998 76.0 58.2 134.2
---------------------------------------------------------------------------------------------
1999 84.2 69.8 144.0
---------------------------------------------------------------------------------------------
2000 82.9 113.5 196.4
---------------------------------------------------------------------------------------------
2001E NTELOS Pro Forma 305-310
2002E NTELOS Pro Forma 360-370
EBITDA
---------------------------------------------------------------------------------------------
Period Conestoga NTELOS Pro Forma
------ --------- ------ ---------
---------------------------------------------------------------------------------------------
1998 31.3 29.4 60.7
---------------------------------------------------------------------------------------------
1999 31.4 27.9 59.3
---------------------------------------------------------------------------------------------
2000 30.7 20.3 51.0
---------------------------------------------------------------------------------------------
2001E NTELOS Pro Forma 51-55
2002E NTELOS Pro Forma 80-90
Notes: (1) Pro Forma to exclude operating results of CENI wireless for all
periods presented
31
Financial Guidance/(1)/
-----------------------
. Revenues: $305-310MM in 2001 and $360-370MM in 2002
. EBITDA: $51-55MM in 2001 and $80-90MM in 2002
. Going forward, the company sees Debt/EBITDA ratios of 7.0x and 5.0x in 2003
and 2004, respectively
. Positive Free Cash Flows are anticipated by 2005
. Capital Expenditures are estimated at $115-125MM and $75-90MM in 2002 and
2003, respectively
Notes: (1) Pro Forma including CENI and assuming sale of CENI Wireless
32