TYPE: 425
SEQUENCE: 1
DESCRIPTION: COMPANY PRESS RELEASE
Filed by: NTELOS Inc.
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: NTELOS Inc.
Commission File No. 000-16751
For Release: August 1, 2001 Contacts:
**Teleconference** Michael B. Moneymaker
Thursday, August 2, 2001 Senior Vice President & CFO
10:30 am (EDT) Wesley B. Wampler
Dial in number: 800-450-0785 Director of Investor Relations
Digital replay: 800-475-6701 (until August 9, 2001) Phone: 540-949-3447
Access code: 592952 Fax: 540-946-3595
e-mail: wamplerwes@ntelos.com
---------------------
NTELOS Reports Quarterly Revenues of $54.7 Million in Second Quarter 2001
Positive Operating Cash Flows of $5.2 Million
Virginia East Integration Completed
WAYNESBORO, VA - August 1, 2001 - NTELOS Inc. (NASDAQ: NTLO) reported second
quarter operating revenues of $54.7 million and net loss applicable to common
shareholders of $23.2 million. These results include the operations of R&B
Communications, Inc. (R&B) and the consolidation of the West Virginia PCS
Alliance L.C. effective February 13, 2001 for the entire quarter. Operating cash
flow, or EBITDA, was $5.2 million.
The final phase of the integration of the Virginia East markets, acquired last
summer, was completed as the billing function was converted to the NTELOS
platform in July. With this conversion, no further costs associated with the
transition services agreement will be incurred.
The Company previously reported a 27% increase over second quarter 2000 in
wireless PCS net subscriber additions and a reduction in monthly PCS post pay
subscriber churn to 2.35%, the lowest level in a year. At the end of the second
quarter, post pay subscribers accounted for 73% of the wireless PCS customer
total of 198,656.
"With the completion of the Virginia East transition on schedule, we have shown
the ability to integrate a business that doubled the size of our company into
our organizational structure and operating platforms," said James S. Quarforth,
chief executive officer. "At the same time, we have delivered two quarters of
improved performance with strong customer growth, decreasing churn and steadily
increasing operating cash flows."
During the second quarter the company was engaged in negotiations that resulted
in the subsequent signing of a definitive merger agreement to acquire Conestoga
Enterprises, Inc. Conestoga is a Birdsboro, Pennsylvania based integrated
communications provider with a service area contiguous to NTELOS' Virginia and
West Virginia operations.
"This merger represents another important step as we execute our Mid-Atlantic
ICP strategy," said Quarforth. "The combined company will have over 135,000 ILEC
and 40,000 CLEC access lines and, equally important, the Conestoga management
team and organization will provide an established base of operations for
expansion in Pennsylvania."
Operating Revenues for second quarter 2001 were $54.7 million, compared to $21.5
million in second quarter 2000. Results for 2001 include amounts reflecting the
acquisition of Virginia East and consolidation of the Virginia PCS Alliance,
both effective July 26, 2000; and the February 13, 2001 merger with R&B and the
concurrent consolidation of the West Virginia PCS Alliance. Amounts for 2000
include the RSA 6 analog cellular operations, a July 26, 2000 disposition. Pro
forma operating revenues for second quarter 2000 were $45.4 million.
Wireless PCS revenues for second quarter were $30.3 million, compared to $2.3
million reported for second quarter of 2000 and to pro forma second quarter 2000
of $23.8 million. Wireline revenues for second quarter were $21.9 million,
compared to $14.3 million reported for second quarter of 2000 and to pro forma
second quarter 2000 of $18.5 million.
Operating Cash Flows (operating income before depreciation and amortization) for
the second quarter of 2001 were $5.2 million, compared to $7.0 million for
second quarter 2000, reflecting the above mentioned transactions. Pro forma
operating cash flows for second quarter 2000 were $3.4 million.
Wireless PCS operating cash flows for second quarter were $(5.0) million,
compared to $(0.6) million reported for second quarter of 2000 and to pro forma
second quarter 2000 of $(4.5) million. Wireline operating cash flows for second
quarter were $9.4 million, compared to $5.6 million reported for second quarter
of 2000 and to pro forma second quarter 2000 of $7.1 million.
Negotiations during the quarter resulted in the signing of two other agreements:
On July 20, 2001 the company entered into a definitive agreement to sell the PCS
license in Kingsport, Tennessee to Lafayette Communications for $11.6 million.
On July 24, 2001, NTELOS announced the sale of up to 82 communications towers in
the Virginia East Market to American Tower Corporation for up to $27.9 million.
Also, during the period of May 24 to July 31, 2001, the company sold 330,500
shares of Illuminet Holdings, Inc. for proceeds of approximately $10.2 million.
Second Quarter 2001 Business Segment Highlights
Wireless
. PCS: Operating revenues totaled $30.3 million for the quarter representing,
on a pro forma basis, increases of 27.5% and 9.4% over second quarter 2000
and first quarter 2001, respectively. For each entity, revenues for the
second quarter 2001 were $13.9 million for Virginia East; $10.5 million for
Virginia West; and $5.8 million for West Virginia. PCS operating cash flows
were $(5.0) million for the quarter, an increase of 28.9% over the pro
forma $(7.0) million in first quarter 2001. For each entity, operating cash
flows were $(3.0) million for Virginia East; $(0.8) million for Virginia
West; and $(1.2) million for West Virginia. Virginia West and West Virginia
continue to trend toward breakeven, differentiated by one year of maturity.
Operating cash flows for the quarter in Virginia East reflect costs of
acquisition associated with strong post pay customer growth and transition
costs. Operating cash flows before costs of acquisition continue
improvement trends at $8.0 million for second quarter 2001, compared to
$6.0 million and $2.7 million in first quarter 2001 and fourth quarter
2000, respectively.
Gross PCS subscriber additions for second quarter were 35,043 of which more
than 76% were high-value post-pay additions. Post pay net additions set a
new quarterly record at 17,333, a 36% increase over the previous quarter.
Monthly blended subscriber churn for all markets continued improvement
trends, finishing the quarter at 3.89%, down 56 basis points from the
previous quarter and down 171 basis points from fourth quarter 2000. Post
pay churn led this improvement, dropping 81 basis points to 2.35%, the
lowest level in over a year. Average revenue per subscriber (ARPU) was
$42.60 for the second quarter, an increase of $2.11 from first quarter
2001, primarily due to "nTown" rate plans sold in the previous two quarters
moving from promotional introductory rates to full rate. While the total
costs of acquisition (COA) were slightly less than the previous quarter,
COA per gross addition increased due to seasonally lower subscriber gross
additions, a greater mix of post pay customer additions and higher costs
associated with handset replacements.
Wholesale and roaming revenues generated through the Sprint/Horizon
agreement continued to show impressive growth, totaling $4.8 million for
second quarter 2001. This represents an increase of $0.7 million, or 17.8%,
over the previous quarter and compares to $1.3 million in second quarter
2000. The conversion to the NTC pre-paid platform, which provides for
enhanced features, was completed for the Virginia East markets with
conversion for Virginia West and West Virginia scheduled for later this
year. New retail stores were opened in Charlottesville, Christiansburg and
Portsmouth, Virginia and in St. Albans, West Virginia.
Wireline
. Telephone (ILEC): Access lines at the end of second quarter were 51,938.
ILEC operating revenues for the second quarter of 2001 were $10.8 million,
compared to $8.0 million for second quarter 2000, reflecting the R&B
merger. Pro forma ILEC revenues for second quarter 2000 were $10.2 million.
Operating cash flows for the quarter were $6.7 million, compared to $5.5
million for second quarter 2000. Pro forma ILEC operating cash flows for
second quarter 2000 were $6.0 million.
. Competitive Local Exchange (CLEC): Operating revenues for second quarter
2001 were $4.7 million, compared to $1.9 million for second quarter 2000.
Pro forma second quarter 2000 CLEC revenues, to include R&B, were $2.6
million. Operating cash flows for second quarter were $0.7 million,
compared to $(0.3) million for second quarter 2000. Pro forma CLEC
operating cash flows for second quarter 2000 were $(0.3) million. End-of-
period CLEC access lines for second quarter were 26,509, an increase of
11.7% over the previous quarter. Revenues recorded from reciprocal
compensation were $1.3 million for second quarter 2001 and $0.9 million and
$1.4 million for second quarter 2000 and first quarter 2001, respectively.
New co-locations included one in Blacksburg, Virginia and three in
Charleston, West Virginia.
. Network: Operating revenues for second quarter 2001 were $2.2 million,
compared to $1.0 million for second quarter 2000. Including R&B, pro forma
network revenues for second quarter 2000 were $2.1 million. Operating cash
flows for second quarter were $1.8 million, compared to $0.7 million for
second quarter 2000. Pro forma network operating cash flows for second
quarter 2000 were $1.5 million. Fiber from Waynesboro to Winchester,
Virginia was turned up during the quarter, and a Lynchburg, Virginia ring
came into service in July.
. Internet/DSL: Revenues for second quarter 2001 were $4.2 million, compared
to $3.3 million for second quarter 2000. Pro forma Internet revenues
including R&B were $3.6 million in second quarter 2000. Operating cash
flows for the quarter were $0.2 million, compared to $(0.2) million for
second quarter 2000. Pro forma Internet operating cash flows for second
quarter 2000 were $(0.2) million. Dial-up and DSL lines were 64,801 and
2,297, respectively, at the end of the second quarter. During the quarter,
DSL service was introduced for customers in Covington and Clifton Forge,
Virginia.
EXHIBITS -- Financial Statements & Schedules (following pages)
. Condensed Consolidated Statements of Income - NTELOS Inc.
. Segment Summary Operating Results from Continuing Operations
. Condensed Consolidated Balance Sheet - NTELOS Inc.
. Customer Summary Table
. PCS Customer detail
. Pro Forma PCS Key Performance Indicators
NTELOS Inc. (NASDAQ: NTLO) is an integrated communications provider with
headquarters in Waynesboro, Virginia. NTELOS provides products and services to
customers in Virginia, West Virginia, Kentucky, Tennessee and North Carolina,
including wireless digital PCS, dial-up Internet access, high-speed DSL (high-
speed Internet access), and local and long distance telephone services. Welsh,
Carson, Anderson & Stowe, a New York investment firm with $12 billion in private
capital, is a leading shareholder of NTELOS. Detailed information about NTELOS
is available online at www.ntelos.com.
--------------
Forward-looking statements made by the Companies are based on a number of
assumptions, estimates and projections. These statements 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, and any significant deviations from these assumptions could cause
actual results to differ materially from those in 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.
INVESTORS and security holders ARE URGED 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 above, 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.
NOTICE:
- ------
NTELOS will host a teleconference call on Thursday, August 2, 2001, at 10:30 am
EDT to discuss operating results and Company business activities. To participate
in this call, please dial 800-450-0785. For a taped replay, available through
August 9, 2001, please dial 800-475-6701, and provide the operator with the pass
code of 592952.
NTELOS Inc.
==============================================================================================================================
Condensed Consolidated Statement of Income
(Dollars in thousands except per share amounts)
- ------------------------------------------------------------------------------------------- ------------------------------
Unaudited Three Months Ended Six Months Ended
------------------------------ ------------------------------
June 30, 2001 June 30, 2000 June 30, 2001 June 30, 2000
- ------------------------------------------------------------------------------------------- ------------------------------
Operating Revenues
Wireline Communications $ 21,908 $ 14,303 $ 41,757 $ 27,780
Wireless Communications 30,331 2,331 55,596 4,115
Other Communication Services 2,414 4,883 4,728 10,233
- ------------------------------------------------------------------------------------------- ------------------------------
54,653 21,517 102,081 42,128
Operating Expenses, before depreciation and amortization
Cost of Sales 12,678 2,490 22,726 4,857
Maintenance and Support 15,933 6,181 29,760 11,687
Customer Operations 15,961 3,793 30,752 7,391
Corporate Operations 4,865 2,058 9,742 4,158
- ------------------------------------------------------------------------------------------- ------------------------------
49,437 14,522 92,980 28,093
Operating Cash Flows (EBITDA) 5,216 6,995 9,101 14,035
Depreciation and Amortization 17,610 3,409 33,809 6,751
- ------------------------------------------------------------------------------------------- ------------------------------
Operating Income (Loss) (12,394) 3,586 (24,708) 7,284
Other Income (Expenses)
Equity Loss from PCS Investees
Virginia PCS Alliance/1/ - (1,315) - (2,839)
West Virginia PCS Alliance/2/ - (1,673) (1,286) (3,817)
Other, Principally Interest, net (18,263) (493) (33,432) (911)
- ------------------------------------------------------------------------------------------- ------------------------------
(30,657) 105 (59,426) (283)
Income Taxes (Benefit) (10,872) 84 (21,636) (87)
- ------------------------------------------------------------------------------------------- ------------------------------
(19,785) 21 (37,390) (196)
Minority Interests in Losses (Earnings) of Subsidiaries (1,311) 32 (3,058) 105
- ------------------------------------------------------------------------------------------- ------------------------------
Loss from Continuing Operations (18,474) (11) (34,732) (301)
Discontinued Operation/3/
Income from Discontinued Operation, Net of Tax - 348 - 687
- ------------------------------------------------------------------------------------------- ------------------------------
Net Income (Loss) (18,474) 337 (34,732) 386
Dividend Requirements on Preferred Stock 4,690 - 9,377 -
- ------------------------------------------------------------------------------------------- ------------------------------
Income (Loss) Applicable to Common Shares $ (23,164) $ 337 $ (44,109) $ 386
=========================================================================================== ==============================
Net Income (Loss) per Common Share - Basic & Diluted $ (1.37) $ 0.03 $ (2.76) $ 0.03
Average Shares Outstanding - Basic 16,857 13,101 15,972 13,084
Average Shares Outstanding - Diluted 17,259 13,310 16,349 13,292
==============================================================================================================================
/1/ The Virginia PCS Alliance was consolidated into operations effective July 26, 2000 in connection with the Company increasing
its common ownership interests to 65% from 21%.
/2/ The West Virginia PCS Alliance was consolidated into operations effective February 13, 2001 concurrent with the effective date
of the R&B merger which increased its common ownership interests to 79% from 45%.
/3/ In May 2000, the Company announced that it had entered into a definitive agreement to sell its directory assistance operations.
The Company sold its directory assistance operations in July 2000, recognizing a $26.2 million gain, before taxes, on the sale.
All periods have previously been restated to reflect the accounting for the directory assistance segment as discontinued
operations.
NTELOS Inc.
==============================================================================================================================
Summary Operating Results from Continuing Operations
(Dollars in Thousands)
- ------------------------------------------------------------------------------------------- ------------------------------
Unaudited Three Months Ended Six Months Ended
------------------------------------------------ ------------------------------
June 30, 2001 June 30, 2000 March 31, 2001 June 30, 2001 June 30, 2000
- ------------------------------------------------------------------------------------------- ------------------------------
Operating Revenues
Wireless PCS Digital $ 30,331 $ 2,331 $ 25,265 $ 55,596 $ 4,115
Subscriber Revenues 22,666 2,197 18,784 41,450 3,795
Wholesale/Roaming Revenues 5,579 3,793 9,372
Equipment Revenues 1,388 134 1,817 3,025 318
Other Revenues 698 - 871 1,749 2
Wireline Operations
Telephone (ILEC) 10,831 8,022 9,712 20,543 15,991
CLEC 4,705 1,930 4,293 8,998 3,545
Network 2,205 1,003 1,710 3,915 1,872
Internet & DSL 4,167 3,348 4,134 8,301 6,372
------------------------------ ------------- ------------- -------------
Wireline Total 21,908 14,303 19,849 41,757 27,780
Other Operations/1/ 2,414 4,883 2,314 4,728 10,233
Analog Cellular - 2,169 - - 4,847
Other 2,414 2,714 2,314 4,728 5,386
- ------------------------------------------------------------------------------------------- ------------------------------
Total Operating Revenues $ 54,653 $ 21,517 $ 47,428 $ 102,081 $ 42,128
=========================================================================================== ==============================
Operating Expenses (before depreciation & amortization)
Wireless PCS Digital $ 35,325 $ 2,911 $ 31,008 $ 66,333 $ 5,351
Cost of Sales - Equipment 7,419 720 6,919 14,388 1,410
Cost of Sales - Access & Other 5,197 1,301 3,267 8,464 2,359
Customer Care 1,911 82 1,867 3,778 174
Engineering & Operations 7,474 28 5,765 13,239 58
Selling & Marketing 9,670 560 9,024 18,694 1,054
General & Administrative 3,654 220 4,166 7,770 296
Wireline Operations
Telephone (ILEC) 4,114 2,536 3,263 7,377 5,012
CLEC 4,030 2,261 3,481 7,511 4,088
Network 436 341 343 779 636
Internet & DSL 3,938 3,597 4,049 7,987 6,950
------------------------------ ------------- ------------- -------------
Wireline Total 12,518 8,735 11,136 23,654 16,686
Other Operations/1/ 1,594 2,876 1,399 2,993 6,056
Analog Cellular - 1,064 - - 2,405
Other 1,594 1,812 1,399 2,993 3,651
- ------------------------------------------------------------------------------------------- ------------- -------------
Total Operating Expenses $ 49,437 $ 14,522 $ 43,543 $ 92,980 $ 28,093
=========================================================================================== ============= =============
Operating Cash Flows (EBITDA)/2/
Wireless PCS Digital $ (4,994) $ (580) $ (5,743) $ (10,737) $ (1,236)
Wireline Operations
Telephone (ILEC) 6,717 5,486 6,449 13,166 10,979
CLEC 675 (331) 812 1,487 (543)
Network 1,769 662 1,367 3,136 1,236
Internet & DSL 229 (249) 85 314 (578)
------------------------------ ------------- ------------- -------------
Wireline Total 9,390 5,568 8,713 18,103 11,094
Other Operations/1/ 820 2,007 915 1,735 4,177
Analog Cellular - 1,105 - - 2,442
Other 820 902 915 1,735 1,735
- ------------------------------------------------------------------------------------------- ------------- -------------
Total Operating Cash Flows $ 5,216 $ 6,995 $ 3,885 $ 9,101 $ 14,035
=========================================================================================== ============= =============
/1/ Other Operations includes Paging & Voicemail, Wireless Cable, Wireline Cable, Other Communications Services, National Alarm and
Holding Company. The RSA 6 Analog Cellular operations were disposed of on July 26, 2000 and are included historically until
that date.
/2/ Operating Cash Flows (EBITDA) represents operating income (loss) before depreciation and amortization.
NTELOS Inc.
================================================================================
Condensed Consolidated Balance Sheets
(Dollars in thousands)
- --------------------------------------------------------------------------------
Unaudited
----------------------------
June 30, 2001 Dec. 31, 2000
- --------------------------------------------------------------------------------
ASSETS
Current Assets $ 59,783 $ 71,530
Restricted Cash 39,707 50,903
Investments and Advances to Affiliates 42,054 83,615
Property & Equipment, net 896,304 745,793
Other Assets 149,914 124,364
- --------------------------------------------------------------------------------
Total Assets $ 1,187,762 $ 1,076,205
================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities $ 73,869 $ 75,335
Long-Term Debt 618,353 556,287
Deferred Taxes and Other Long-Term Liabilities 65,346 62,147
Minority Interests 278 1,258
Redeemable, Convertible Preferred Stock 256,282 246,906
Shareholders' Equity 173,634 134,272
- --------------------------------------------------------------------------------
Total Liabilities and Shareholders' Equity $ 1,187,762 $ 1,076,205
================================================================================
- ---------------------------------------------------------------------------------------------
NTELOS Inc.
- ---------------------------------------------------------------------------------------------
Customer Summary Table - Pro Forma /1/
- ---------------------------------------------------------------------------------------------
Quarter Ended: 6/30/00 9/30/00 12/31/00 3/31/01 6/30/01
- ---------------------------------------------------------------------------------------------
PCS Digital Subscribers 151,542 157,717 168,436 186,073 198,656
ILEC Access Lines 51,423 51,685 51,959 51,823 51,938
CLEC Access Lines 17,352 18,137 20,545 23,738 26,509
Internet Subscribers 58,322 58,433 61,261 63,714 64,801
Digital Subscriber Lines 962 1,197 1,655 2,046 2,297
Paging Subscribers 19,865 19,857 19,706 17,686 16,659
Long Distance Subscribers 12,532 12,591 12,764 13,434 14,245
Cable Subscribers 18,659 18,129 17,766 17,513 16,600
/1/ PCS digital subscribers include subscribers of the Virginia and West
Virginia PCS Alliances and of Virginia East, formerly PrimeCo, acquired July
26, 2000. All other categories include the customers of R&B Communications,
which merged with the company effective February 13, 2001.
NTELOS Inc.
=====================================================================================================
PCS Customer Detail (Pro Forma to Include Virginia East)
- -----------------------------------------------------------------------------------------------------
Quarter Ended 6/30/00 9/30/00 12/31/00 3/31/01 6/30/01
- -----------------------------------------------------------------------------------------------------
Virginia East (Formerly PrimeCo)
- -----------------------------------------------------------------------------------------------------
Beginning Subscribers 86,383 87,955 88,300 87,684 96,629
Pre-Pay 42,251 43,573 44,974 42,752 42,646
Post-Pay 44,132 44,382 43,326 44,932 53,983
Gross Additions 13,946 15,403 16,788 22,812 18,940
Pre-Pay 9,375 11,320 10,130 12,113 4,937
Post-Pay 4,571 4,083 6,658 10,699 14,003
Net Additions 1,572 345 (616) 8,945 5,121
Pre-Pay 1,322 1,401 (2,222) 2,783 (4,505)
Post-Pay 250 (1,056) 1,606 6,162 9,626
Transfers Pre-Pay (2,889) (4,694)
Post-Pay 2,889 4,694
Ending Subscribers 87,955 88,300 87,684 96,629 101,750
Pre-Pay 43,573 44,974 42,752 42,646 33,447
Post-Pay 44,382 43,326 44,932 53,983 68,303
- -----------------------------------------------------------------------------------------------------
Virginia West (Formerly Virginia PCS Alliance & RSA 6 Digital)
- -----------------------------------------------------------------------------------------------------
Beginning Subscribers 37,233 41,978 45,248 51,531 56,642
Pre-Pay 9,881 12,151 12,412 14,325 15,886
Post-Pay 27,352 29,827 32,836 37,206 40,756
Gross Additions 9,738 8,484 12,533 10,988 9,916
Pre-Pay 4,696 3,212 4,581 4,209 2,370
Post-Pay 5,042 5,272 7,952 6,779 7,546
Net Additions 4,745 3,270 6,283 5,111 4,828
Pre-Pay 2,270 261 1,913 1,561 (284)
Post-Pay 2,475 3,009 4,370 3,550 5,112
Ending Subscribers 41,978 45,248 51,531 56,642 61,470
Pre-Pay 12,151 12,412 14,325 15,886 15,602
Post-Pay 29,827 32,836 37,206 40,756 45,868
- -----------------------------------------------------------------------------------------------------
West Virginia
- -----------------------------------------------------------------------------------------------------
Beginning Subscribers 18,016 21,609 24,169 29,221 32,802
Pre-Pay 2,755 3,427 3,600 4,365 4,902
Post-Pay 15,261 18,182 20,569 24,856 27,900
Gross Additions 5,677 5,581 8,423 7,337 6,187
Pre-Pay 1,402 1,128 1,592 1,380 983
Post-Pay 4,275 4,453 6,831 5,957 5,204
Net Additions 3,593 2,560 5,052 3,581 2,634
Pre-Pay 672 173 765 537 39
Post-Pay 2,921 2,387 4,287 3,044 2,595
Ending Subscribers 21,609 24,169 29,221 32,802 35,436
Pre-Pay 3,427 3,600 4,365 4,902 4,941
Post-Pay 18,182 20,569 24,856 27,900 30,495
- -----------------------------------------------------------------------------------------------------
Total PCS Subscribers
- -----------------------------------------------------------------------------------------------------
Beginning Subscribers 141,632 151,542 157,717 168,436 186,073
Pre-Pay 54,887 59,151 60,986 61,442 63,434
Post-Pay 86,745 92,391 96,731 106,994 122,639
Gross Additions 29,361 29,468 37,744 41,137 35,043
Pre-Pay 15,473 15,660 16,303 17,702 8,290
Post-Pay 13,888 13,808 21,441 23,435 26,753
Net Additions 9,910 6,175 10,719 17,637 12,583
Pre-Pay 4,264 1,835 456 4,881 (4,750)
Post-Pay 5,646 4,340 10,263 12,756 17,333
Transfers Pre-Pay - - - (2,889) (4,694)
Post-Pay - - - 2,889 4,694
Ending Subscribers 151,542 157,717 168,436 186,073 198,656
Pre-Pay 59,151 60,986 61,442 63,434 53,990
Post-Pay 92,391 96,731 106,994 122,639 144,666
NTELOS Inc.
========================================================================================================================
Wireless PCS Key Performance Indicators - Pro Forma
- ------------------------------------------------------------------------------------------------------------------------
Quarter Ended: 6/30/00 9/30/00 12/31/00 3/31/01 6/30/01
- ------------------------------------------------------------------------------------------------------------------------
Average Subscribers (weighted monthly)
Virginia East 86,970 88,772 86,906 91,630 99,414
Virginia West 39,491 43,281 47,933 53,915 58,941
West Virginia 19,823 22,859 26,006 30,967 33,963
----------------------------------------------------------------------------------------------------------------------
Total 146,284 154,912 160,845 176,512 192,318
Gross Subscriber Revenues ($000)/1/
Virginia East $ 11,999 $ 11,126 $ 11,262 $ 11,283 $ 12,671
Virginia West 5,423 5,773 6,031 6,436 7,284
West Virginia 2,880 3,400 3,528 3,722 4,624
----------------------------------------------------------------------------------------------------------------------
Total $ 20,302 $ 20,299 $ 20,821 $ 21,441 $ 24,579
Average Monthly Revenue per Subscriber (ARPU)/1/
Virginia East $ 45.99 $ 41.78 $ 43.20 $ 41.05 $ 42.49
Virginia West 45.78 44.46 41.94 39.79 41.19
West Virginia 48.43 49.59 45.22 40.06 45.38
----------------------------------------------------------------------------------------------------------------------
Total $ 46.26 $ 43.68 $ 43.15 $ 40.49 $ 42.60
Cost of Acquisition per Gross Add/2/
Virginia East $ 308.30 $ 325.05 $ 299.54 $ 289.45 $ 388.12
Virginia West 320.24 424.22 349.47 323.53 333.10
West Virginia 413.65 399.85 402.81 395.94 383.55
----------------------------------------------------------------------------------------------------------------------
Total $ 337.62 $ 368.54 $ 339.17 $ 317.55 $ 371.74
Monthly Subscriber Churn
Virginia East 4.74% 5.65% 6.68% 5.05% 4.63%
Virginia West 4.21% 4.02% 4.35% 3.63% 2.88%
West Virginia 3.50% 4.41% 4.32% 4.04% 3.49%
----------------------------------------------------------------------------------------------------------------------
Total 4.43% 5.01% 5.60% 4.45% 3.89%
Cell Sites (Period Ending)
Virginia East 215 220 225 227 230
Virginia West 232 260 299 306 317
West Virginia 126 136 178 183 193
----------------------------------------------------------------------------------------------------------------------
Total 573 616 702 716 740
Operating Cash Flows (EBITDA) Before Cost of Acquisition ($000)
Virginia East $ 5,014 $ 4,326 $ 3,126 $ 3,640 $ 4,301
Virginia West 478 725 236 2,129 2,527
West Virginia (265) 154 (617) 263 1,204
----------------------------------------------------------------------------------------------------------------------
Total $ 5,227 $ 5,205 $ 2,745 $ 6,032 $ 8,032
Gross Wireless Plant, Property & Equipment ($000)/3/
Virginia East $ 138,385 $ 143,831 $ 146,067
Virginia West 107,946 114,746 120,824
West Virginia 57,240 61,469 64,814
----------------------------------------------------------------------------------------------------------------------
Total $ 303,571 $ 320,046 $ 331,705
/1/ Gross subscriber revenues include access, airtime, toll, incollect roaming
and miscellaneous other. ARPU is calculated by dividing subscriber revenues
by the number of average subscribers.
/2/ Cost of acquisition includes handset subsidy, marketing costs, advertising
costs, sales commissions and sales management costs.
/3/ Gross wireless plant, property & equipment excludes PCS licenses.