Exhibit 99.1
Alaska Communications Systems Reports Fourth Quarter and Year-End 2005 Results
ANCHORAGE, Alaska--(BUSINESS WIRE)--Feb. 23, 2006--Alaska Communications
Systems Group, Inc. (NASDAQ:ALSK):
-- Revenues Increase 9.8% to $82.5 Million from $75.1 Million in Fourth
Quarter 2004
-- Net Cash Provided by Operating Activities Increases 27.3% to $24.3
Million
-- EBITDA Increases to $26.7 Million, Up 8.0% Compared to Fourth Quarter
2004
-- Announces 7.5% Increase in Dividend
Alaska Communications Systems Group, Inc. ("ACS") (NASDAQ:ALSK) today
reported financial results for its fourth quarter and year ended December 31,
2005. In a separate release, today ACS announced a 7.5 percent increase in its
dividend policy, increasing the planned annual dividend rate to $0.86 per share,
up from the current annual rate of $0.80 per share. The dividend increase will
be reflected in the first quarter 2006 dividend.
"2005 was a terrific year both operationally and financially; as a result
of solid execution, ACS is able to grow distributable cash flow and increase its
dividend," stated Liane Pelletier, ACS president and chief executive officer.
"In 2005, we exceeded our growth objectives for revenues and EBITDA: compared to
2004, revenues grew 8.0 percent and EBITDA rose 23.3 percent."
Pelletier continued, "Strong operational execution centered on integration
strategies which leverage the appeal of our wireless and Internet product lines
as well as operating efficiencies associated with Process Improvement
initiatives. Total retail relationships topped 421,000 at the end of 2005, up
from 395,000 at the end of 2004. ON ACS, our innovative customer retention and
acquisition program, contributed to these results, gaining 6,000 subscribers
during the quarter, bringing the total to over 16,000 since its launch in the
third quarter. Post-paid wireless subscribers rose 27.8 percent annually and now
exceed 107,000. Digital subscriber lines (DSL) grew a record 45.1 percent
annually, bringing total DSL subscribers to more than 35,800. Process
Improvement teams have reduced costs and streamlined the customer experience.
Some of the savings were redirected to fund the healthy growth in the business."
"On the capital markets front, ACS took a number of accretive actions over
the course of the year, the net of which reduces total leverage, lowers the cost
of debt and decreases cash interest costs."
"The combined effects of operational execution and capital market
transactions enable ACS to pass the results of increased cash flow to
shareholders in the form of a 7.5 percent dividend increase beginning with first
quarter declaration."
"To support the growth rates, we are also significantly investing in the
business, which will drive 2006 initiatives. The wireless CDMA network covered
75 percent of the Alaska population at year-end 2005, with superior voice and
data performance. We expanded our DSL footprint to reach 75 percent of access
lines at year end, and we purchased $12.1 million of capacity to the Lower 48 to
support the phenomenal growth in Internet. In 2006, we expect to conclude the
transition of TDMA customers to CDMA, complete our CDMA footprint in providing
coverage to more than 80 percent of the population, further broaden our DSL
footprint, and leverage our enhanced fiber capacity. We will continue to
increase efficiencies via Process Improvement projects, as well as drive growth
with innovative product integration. We are also optimistic about the prospects
for new economic activity in Alaska," concluded Pelletier.
Financial Highlights: Fourth Quarter 2005 Compared to Fourth Quarter 2004
-- Revenues were $82.5 million, representing a 9.8 percent increase.
-- Net cash provided by operations increased 27.3 percent to $24.3
million.
-- EBITDA increased to $26.7 million, up 8.0 percent. EBITDA included
$500,000 of costs incurred to execute the December 2005 secondary
stock offering and $700,000 of third party SOX compliance costs.
-- Operating income increased 17.1 percent to $4.7 million.
Net loss decreased to $4.9 million, or $0.12 per share, of which $1.8
million is attributable to the extinguishment of debt, $1.4 million to stock
based compensation arising in part from the early adoption of SFAS 123R,
"Share-Based Payment" and $500,000 to secondary stock offering costs. The net
loss for the fourth quarter 2004 was $7.1 million, or $0.23 per share. The
year-over-year decrease in net loss is attributable to higher revenues and lower
interest expense.
David Wilson, ACS senior vice president and chief financial officer, said,
"Strong fourth quarter 2005 results were driven by wireless, where revenue rose
52.7 percent to $23.6 million compared to $15.4 million a year ago. Our wireless
subscribers grew 16.8 percent annually to approximately 117,500; ARPU grew by
27.2 percent annually to $57.46; and our strategically important post-paid CDMA
subscribers represent a large percent of our base. Foreign roaming revenue of
$1.7 million also contributed to results."
"Cash generated from operating activities in the quarter was $24.3 million,
net of $1.1 million of early redemption premium charges for our November 2005
debt repurchase. We invested $8.6 million in our CDMA wireless network,
paid-down $12.0 million of our 9 7/8 senior notes, and exited the year with
cash, restricted cash and investments of $43.8 million," added Wilson.
Metric Highlights: Fourth Quarter 2005 Compared to Third Quarter 2005
-- Increased the total number of retail customer relationships across all
product lines by approximately 8,100 to approximately 421,750.
-- Increased post-paid wireless subscribers by 6.8 percent, or
approximately 6,800. Net of prepaid and wholesale wireless shifts, we
added 5,900 wireless subscribers, bringing the total wireless
subscribers to approximately 117,500.
-- Recorded post-paid churn of 1.8 percent and overall average wireless
monthly churn of 2.0 percent.
-- Recorded wireless ARPU of $57.46 down slightly from $57.99, inclusive
of CETC revenue of $8.84 and $8.81, respectively.
-- Increased DSL by 8.4 percent, or 2,800 lines, to over 35,800 lines.
-- Increased long distance subscribers by approximately 2,760 to
approximately 56,300 customers.
-- Recorded over 199,300 local retail access lines reflecting an access
line decrease of approximately 1,900 lines.
-- Recorded over 270,800 total local network access lines. Total access
lines decreased by approximately 7,100, reflecting wireless and
broadband substitution and migration to cable telephony.
Annual Financial Review
For the year ended December 31, 2005:
-- Total revenues were $326.8 million, which represented an 8.0 percent
increase over 2004 revenues of $302.7 million;
-- Net loss for the year 2005, inclusive of a loss on the extinguishment
of debt of $34.9 million and $2.8 million of stock based compensation
costs, was $41.6 million, or $1.04 per share, as compared to a net
loss of $39.3 million, or $1.33 per share, in 2004;
-- Net cash provided by operating activities for the year 2005, net of
$18.3 million of early redemption premiums, was $56.3 million, as
compared to $59.0 million in 2004;
-- EBITDA for the year 2005, inclusive of $500,000 of secondary offering
costs and $1.3 million of third party SOX compliance costs, was $112.4
million, an increase of 23.3 percent from $91.2 million in 2004; and
-- Investment in construction and capital investments totaled $64.4
million, comprising maintenance capital spend of $35.1 million;
investments in pre-funded wireless and fiber capacity growth capex
projects of $26.7 million; and $2.6 million of investments in DSL
footprint expansion and process improvement projects funded from
excess cash generated in 2005.
2006 Business Outlook
For the full year 2006, revenues are expected to be in the range of $335
million to $345 million, and EBITDA is expected to be in the range of $112
million to $116 million. For the year 2006, net cash interest expense is
expected to be approximately $28 million.
ACS expects capital expenditures for 2006 to be approximately $58 million,
comprised of maintenance capital expenditures of approximately $37 million and
pre-funded growth capital expenditures, DSL footprint expansion and process
improvement initiatives of approximately $21 million.
Conference Call
The company will host a conference call and live webcast today at 5:00 p.m.
Eastern Time to discuss third quarter results. For parties in the United States
and Canada, call 866-250-3615 to access the earnings call. International parties
can access the call at 303-262-2006.
The live webcast of the conference call is accessible from the "Investor
Relations" section of the company's website www.alsk.com. The webcast will be
archived for a period of 90 days. A telephonic replay of the conference call
will also be available 2 hours after the call and will run until Monday,
February 27, 2006 at midnight ET. To hear the replay, parties in the United
States and Canada should call 800-405-2236 and enter pass code 11052373.
International parties should call 303-590-3000 and enter pass code 11052373.
About Alaska Communications Systems
ACS is the leading integrated communications provider in Alaska, offering
local telephone service, wireless, long distance, data, and Internet services to
business and residential customers throughout Alaska. More information can be
found on the company's website at www.acsalaska.com or at its investor site at
www.alsk.com.
Forward-Looking EBITDA Guidance
This press release includes management's estimate of EBITDA for the year
ending December 31, 2005. Management believes the most directly comparable GAAP
measure would be "Net cash provided by operating activities." Due to the
difficulty in forecasting and quantifying the amounts that would be required to
be included in this comparable GAAP measure, the Company is not providing an
estimate of year-end net cash provided by operating activities at this time.
Forward-Looking Statements
We have included in this press release certain "forward-looking
statements," as that term is defined in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are based on management's beliefs
as well as on a number of assumptions concerning future events made using
information currently available to management. Readers are cautioned not to put
undue reliance on such forward-looking statements, which are not a guarantee of
performance and are subject to a number of uncertainties and other factors, many
of which are outside ACS' control. Such factors are, without limitation, rapid
technological developments and changes in the telecommunications industry;
ongoing deregulation and increased competition; changes in our revenue from
Universal Service Funds; regulatory limitations on our ability to change our
pricing for communications services; changes in accounting policies or
practices; our ability to bundle our products and services; changes in the
demand for our products and services; changes in general industry and market
conditions; changes in interest rates or other general national, regional or
local economic conditions; governmental and public policy changes; our ability
to generate sufficient earnings and cash flows to continue to make dividend
payments to our stockholders; the continued availability of financing necessary
to support our future business; and the success of any future acquisitions. For
further information regarding risks and uncertainties associated with ACS'
business, please refer to the company's SEC filings, including, but not limited
to, the sections entitled "Management's Discussion and Analysis of Financial
Condition and Results of Operations" on our annual report on Form 10-K and
quarterly reports on Form 10-Q and "Risk Factors" on our current report on Form
8-K filed on November 30, 2005. Copies of our SEC filings may be obtained by
contacting our investor relations department at (907) 564-7556 or by visiting
our investor relations website at http://www.alsk.com.
All information in this release is as of February 23, 2006. The company
undertakes no duty to update any forward-looking statement to conform the
statement to actual results or changes in the company's expectations.
Schedule 1
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months and Twelve Months Ended
December 31, 2005 and 2004
(Unaudited, in Thousands, Except per Share Amounts)
Three Months Twelve Months
Ended Ended
December 31, December 31,
--------------- ------------------
2005 2004 2005 2004
------- ------- -------- ---------
Operating revenues:
Local telephone $49,455 $50,961 $202,842 $211,187
Wireless 23,565 15,428 86,235 56,694
Internet 5,490 5,160 21,672 20,173
Interexchange 3,965 3,576 16,060 14,653
------- ------- -------- ---------
Total operating
revenues 82,475 75,125 326,809 302,707
Operating expenses:
Local telephone 32,474 30,862 126,982 127,918
Wireless 13,191 10,689 49,407 37,918
Internet 6,714 4,535 23,298 25,739
Interexchange 4,683 4,262 17,314 19,773
Depreciation and amortization 20,759 20,701 82,819 78,387
Loss (gain) on disposal of
assets, net (84) 29 (152) 2,854
------- ------- -------- ---------
Total operating expenses 77,737 71,078 299,668 292,589
Operating income 4,738 4,047 27,141 10,118
Other income and expense:
Interest expense (8,685)(12,150) (35,894) (47,641)
Loss on extinguishment of debt (1,790) - (34,882) (3,423)
Interest income 929 867 2,253 1,633
Other (122) (48) (253) (200)
------- ------- -------- ---------
Total other income
(expense) (9,668)(11,331) (68,776) (49,631)
------- ------- -------- ---------
Loss before income tax benefit (4,930) (7,284) (41,635) (39,513)
Income tax benefit - 219 - 219
------- ------- -------- ---------
Net loss $(4,930)$(7,065)$(41,635)$(39,294)
======= ======= ======== =========
Loss per share - basic and diluted:
Net loss $(0.12) $(0.23) $(1.04) $(1.33)
======= ======= ======== =========
Weighted average shares
outstanding:
Basic and diluted 41,580 30,105 40,185 29,592
======= ======= ======== =========
Schedule 2
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited, In Thousands Except Per Share Amounts)
December December
31, 31,
Assets 2005 2004
--------- ----------
Current assets:
Cash and cash equivalents $ 28,877 $ 50,660
Restricted cash 4,415 4,690
Short-term investments 10,525 35,200
Accounts receivable-trade, net of allowance of
$6,206 and $4,869 41,080 39,413
Materials and supplies 7,885 6,623
Prepayments and other current assets 3,445 3,724
--------- ----------
Total current assets 96,227 140,310
Property, plant and equipment 1,116,780 1,061,767
Less: accumulated depreciation and amortization 718,750 649,455
--------- ----------
Property, plant and equipment, net 398,030 412,312
Goodwill 38,403 38,403
Intangible assets, net 21,688 21,871
Debt issuance costs, net 11,733 15,482
Deferred charges and other assets 10,332 8,749
--------- ----------
Total assets $576,413 $637,127
========= ==========
Liabilities and Stockholders' Equity (Deficit)
Current liabilities:
Current portion of long-term obligations $ 683 $ 2,298
Accounts payable-affiliate 2,844 3,973
Accounts payable, accrued and other current
liabilities 54,920 53,843
Advance billings and customer deposits 9,712 8,948
--------- ----------
Total current liabilities 68,159 69,062
Long-term obligations, net of current portion 444,895 523,591
Other deferred credits and long-term liabilities 82,223 77,916
Commitments and contingencies
Stockholders' equity (deficit):
Preferred stock, no par, 5,000 authorized, no
shares issued and outstanding - -
Common stock, $.01 par value; 145,000 shares
authorized, 46,230 and 35,245 shares issued
and 41,681 and 30,696 outstanding,
respectively 462 352
Treasury stock, 4,549, at cost (18,443) (18,443)
Paid in capital in excess of par value 333,522 282,272
Accumulated deficit (334,727) (293,092)
Accumulated other comprehensive income (loss) 322 (4,531)
--------- ----------
Total stockholders' equity (deficit) (18,864) (33,442)
--------- ----------
Total liabilities and stockholders' equity
(deficit) $576,413 $637,127
========= ==========
Schedule 3
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Years ended December 31, 2005 and 2004
(Unaudited, in Thousands)
2005 2004
-------- --------
Net cash provided by operating activities $ 56,336 $59,025
Cash Flows from Investing Activities:
Construction & capital expenditures, net of
capitalized interest (58,422) (51,422)
Purchase of short-term investments (95,095)(154,650)
Sale of short-term investments 119,770 162,672
Placement of funds in restricted account (700) (1,055)
Release of funds from escrow 975 -
-------- --------
Net cash used by investing activities (33,472) (44,455)
Cash Flows from Financing Activities:
Repayments of long-term debt (459,015) (26,962)
Proceeds from the issuance of long-term debt, net
of discounts 375,000 -
Debt issuance costs (11,307) -
Payment of stock dividend, net (30,393) -
Issuance of common stock 88,885 9,801
Stock issuance costs (7,817) -
Purchase of treasury stock - (1,325)
-------- --------
Net cash used by financing activities (44,647) (18,486)
Decrease in cash (21,783) (3,916)
Cash, Beginning of period 50,660 54,576
-------- --------
Cash, End of period $ 28,877 $50,660
======== ========
Supplemental Cash Flow Data:
Interest paid, net of capitalized interest $ 39,474 $44,502
======== ========
Income taxes paid, net of refund $ - $ 876
======== ========
Supplemental Non-cash Transactions:
Interest rate swap marked to market $ (4,744) $ -
======== ========
Stock funding of pension $ 599 $ -
======== ========
Minimum pension liability adjustment $ (109) $ (12)
======== ========
Dividend declared, but not paid $ (8,347) $(5,694)
======== ========
Construction & capital expenditures, not paid $ (5,975) $ -
======== ========
Schedule 4
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
SCHEDULE OF LOCAL TELEPHONE REVENUES
For the Three Months and Twelve Months Ended
December 31, 2005 and 2004
(Unaudited, in Thousands)
Three Months Twelve Months
Ended Ended
December 31, December 31,
--------------- -----------------
2005 2004 2005 2004
------- ------- ------- --------
Local telephone revenues:
Local network service $20,807 $22,697 $ 86,482 $ 91,669
Network access revenue 22,836 22,174 92,379 97,536
Deregulated and other 5,812 6,090 23,981 21,982
------- ------- -------- ---------
Local telephone revenues $49,455 $50,961 $202,842 $211,187
======= ======= ======== =========
Schedule 5
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
SCHEDULE OF EBITDA CALCULATION
(Unaudited, in Thousands)
Three Months Twelve Months
Ended Ended
December 31, December 31,
--------------- ------------------
2005 2004 2005 2004
----------------------------------
Net cash provided by operating
activities $24,314 $19,093 $56,336 $59,025
Adjustments to reconcile net
income to net cash provided
by operating activities:
Loss (gain) on disposal of
assets and asset
impairments 84 (29) 152 (2,854)
Depreciation and
amortization (20,759)(20,701) (82,819) (78,387)
Amortization of debt
issuance costs, warrants
and original
issue discount (1,252) (1,085) (18,760) (6,088)
Non-cash stock compensation
expense (1,417) - (2,800) -
Other non-cash expenses (109) (12) (109) (12)
Other deferred credits (1,986) (1,478) (502) (3,048)
Changes in components of
working capital:
Accounts receivable and
other current assets (2,923) (2,811) 2,650 (7,907)
Accounts payable and other
current liabilities (506) 404 7,977 (22)
Deferred charges and other
assets (376) (446) (3,760) (1)
------- ------- -------- --------
Net loss $(4,930)$(7,065)$(41,635)$(39,294)
Add (subtract):
Interest expense 8,685 12,150 35,894 47,641
Loss on extinguishment of
debt 1,790 - 34,882 3,423
Interest income (929) (867) (2,253) (1,633)
Income tax (benefit) expense - (219) - (219)
Depreciation and
amortization 20,759 20,701 82,819 78,387
(Gain) loss on disposal
of assets and asset
impairment charges, net (84) 29 (152) 2,854
Stock based compensation 1,417 - 2,800 -
------- ------- -------- -------
EBITDA $26,708 $24,729 $112,355 $91,159
======= ======= ======== =======
Note: In an effort to provide investors with additional information
regarding the Company's results as determined by generally
accepted accounting principles (GAAP), the Company also
discloses certain non-GAAP information which management
utilizes to assess performance and believes provides useful
information to investors. The Company has disclosed its net
gain before interest expense, provisions for taxes,
depreciation expense, amortization expense (EBITDA) because the
Company believes it is an important indicator as it provides
information about our ability to service debt, pay dividends
and fund capital expenditures. EBITDA is not a GAAP measure and
should not be considered a substitute for net cash provided by
operating activities and other measures of financial
performance recorded in accordance with GAAP. The calculation
of "EBITDA" as presented in this press release differs from the
calculation of, and therefore is not directly comparable
to, "Indenture EBITDA" as presented in ACS' prospectus
supplement, dated January 26, 2005, primarily because the
calculation of "Indenture EBITDA" allows for additional
adjustments that meet the criteria of being "non-cash,"
"extraordinary" or otherwise "non-recurring" in nature.
Schedule 6
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
Allocation of Stock Based Compensation between Segments
(Unaudited, in Thousands, Except per Share Amounts)
Three Months Ended Twelve Months Ended
December 31, 2005 December 31, 2005
---------------------------- ---------------------------
Stock Based Stock Based
As Compen- As Compen-
Reported sation Adjusted Reported sation Adjusted
--------- --------- -------- --------- -------- --------
Operating
expenses:
Local
telephone 32,474 (1,229) 31,245 126,982 (2,432)124,550
Wireless 13,191 (129) 13,062 49,407 (252) 49,155
Internet 6,714 (53) 6,661 23,298 (104) 23,194
Interexchange 4,683 (6) 4,677 17,314 (12) 17,302
Depreciation
and
amortization 20,759 - 20,759 82,819 - 82,819
(Loss) gain
on disposal
of assets,
net (84) - (84) (152) - (152)
--------- --------- -------- --------- -------- --------
Total
operating
expenses $ 77,737 $ (1,417)$ 76,320 $ 299,668 $ (2,800)$296,868
========= ========= ======== ========= ======== ========
The balances reported on Schedule 1 -- Statement of Operations,
include the company's third quarter 2005 adoption of FAS 123R
Accounting for Stock-Based Compensation. The adoption resulted in a
non-cash charge of $1,417 and $2,800 for the three and twelve months
ended December 31, 2005. This schedule shows the company's
operating performance prior to that expense being recorded to allow
analysis of the operating segments without this noncash charge.
Schedule 7A
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
KEY OPERATING STATISTICS
(Unaudited)
December September December
31, 30, 31,
2005 2005 2004
--------- --------- --------
Local telephone:
Retail access lines(1) 199,341 201,284 206,209
Wholesale access lines 13,966 14,323 16,590
UNE loop lines 50,875 55,802 64,589
UNE platform lines 6,703 6,616 6,365
--------- --------- --------
Total local telephone access lines 270,885 278,025 293,753
========= ========= ========
Average local telephone access lines
for the quarter 274,455 281,042 296,887
Average monthly local telephone
revenue per line for the quarter $ 60.06 $ 61.06 $ 57.22
Quarterly growth rate in local
telephone access lines -2.6% -2.1% -2.1%
Wireless
Covered population 523,827 509,996 482,251
Post-paid cellular subscribers 107,144 100,297 83,828
Average post-paid cellular
subscribers 103,721 97,721 81,478
Quarterly growth rate -
post-paid
cellular subscribers 6.8% 5.4% 5.9%
Activations for the quarter 13,133 11,468 9,393
Deactivations for the quarter 6,286 6,316 4,692
Average monthly churn for the
quarter 1.8% 2.0% 1.8%
Average monthly revenue per
subscriber for the quarter(3) $ 61.10 $ 61.64 $ 50.34
Prepaid cellular subscribers 5,710 6,292 10,404
Wholesale cellular subscribers 4,683 5,049 6,425
Total cellular subscribers 117,537 111,638 100,657
Average subscribers for the
quarter 114,588 109,680 98,093
Quarterly growth rate 5.3% 3.6% 5.4%
Activations for the quarter 13,290 11,674 10,642
Deactivations for the quarter 7,391 7,757 5,514
Average monthly churn for the
quarter 2.0% 2.2% 1.7%
Penetration 22.4% 21.9% 20.9%
Quarterly minutes of use
(000's)(2) 127,498 151,288 90,483
Average monthly revenue per
subscriber for the quarter(3) $ 57.46 $ 57.99 $ 45.17
Long Distance:
Long distance subscribers 56,317 53,558 47,050
Quarterly minutes of use (000's) 48,544 55,746 34,779
Average subscribers for the quarter 54,938 52,130 45,692
Average monthly revenue per
subscriber for the quarter 24.06 27.80 26.09
Internet:
DSL subscribers 35,844 33,070 24,711
Dial-up and other service subscribers 17,401 19,187 22,842
--------- --------- --------
Total Internet subscribers 53,245 52,257 47,553
========= ========= ========
Average subscribers for the quarter 52,751 51,337 46,924
Average monthly DSL & dial up
revenue per subscriber for the
quarter $ 29.15 $ 30.06 $ 28.86
(1) Prior period retail access lines impacted by change
in line count methodology.
(2) Wireless MOU have been restated to include
prepaid airtime certificates.
(3) ACS was granted competitive eligible telecommunications
carrier status (CETC) in the first quarter of 2005, which
added $8.84 to wireless ARPU in the fourth quarter of 2005
and $8.81 in the third quarter of 2005.
Schedule 7B
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
KEY OPERATING STATISTICS
(Unaudited)
December September
31, 30, Net
2005 2005 Movement
--------- --------- --------
Local telephone retail access lines 199,341 201,284 (1,943)
Wireless subscribers 117,537 111,638
Less adjustment for resellers (4,683) (5,049)
--------- ---------
112,854 106,589 6,265
--------- ---------
Long distance subscribers 56,317 53,558 2,759
Internet subscribers 53,245 52,257 988
--------- --------- --------
Total retail relationships 421,757 413,688 8,069
========= ========= ========
CONTACT: Alaska Communications Systems Group, Inc.
Meghan Stapleton, 907-297-3000 (Media)
meghan.stapleton@acsalaska.com
or
Lippert/Heilshorn & Associates
Kirsten Chapman, 415-433-3777 (Investors)
David Barnard, CFA, 415-433-3777 (Investors)
david@lhai-sf.com