Exhibit 99.1
Alaska Communications Systems Reports Third Quarter 2006 Results
- Revenue Increased 5.5% to $90.4 Million Compared to Third
Quarter 2005 -
- Wireless Revenue Rose 29.6% to $31.4 Million -
- Cash Provided by Operating Activities Reached $26.4 Million and
Grew 56.0% -
- EBITDA of $32.2 Million Grew 10.9% over Third Quarter 2005 -
- Increased 2006 Annual Revenue and EBITDA Guidance -
ANCHORAGE, Alaska--(BUSINESS WIRE)--Oct. 26, 2006--Alaska Communications
Systems Group, Inc. ("ACS") (NASDAQ:ALSK) today reported financial results for
its third quarter and nine months ended September 30, 2006.
Liane Pelletier, ACS president and chief executive officer, stated,
"Fundamental strength in our retail operations and seasonal strength from
visitors to Alaska combined to deliver another great quarter. We continue to
execute well against our focused strategies -- adding wireless subscribers and
stabilizing local retail lines. Our track record of robust top line growth and
efficiencies from process improvement continues, resulting in increased cash
from operations. The company's vibrant yet disciplined operating model continues
to produce best-in-class results: quarterly revenue was up over five percent and
EBITDA was up over 10 percent from the year ago quarter."
"We are enthusiastic about Alaska's future prospects for growth, and we
intend to capitalize on them. The ACS team is evaluating certain incremental
investment opportunities in the State that would help maximize long-term
shareholder value. These investments are not expected to affect ACS' existing
dividend or the Board's current target payout ratio averaging 70 percent to 75
percent over the long term, nor will they substantially alter ACS' credit
profile," commented Pelletier.
Financial Highlights: Third Quarter 2006 Compared to Third Quarter 2005
-- Revenues were $90.4 million, a 5.5 percent increase over third quarter
2005 revenues of $85.7 million.
-- Operating income more than doubled to $16.0 million compared to the
third quarter 2005 operating income of $7.2 million.
-- The company posted net income of $8.7 million, or $0.21 per share. The
net loss for the third quarter 2005 was $7.9 million, or $0.19 per
share.
-- Net cash provided by operating activities increased to $26.4 million,
or 56.0 percent, compared to $16.9 million of net cash in the same
period a year ago.
-- EBITDA was $32.2 million, an increase of 10.9 percent, compared to
$29.0 million for the year ago period.
David Wilson, ACS senior vice president and chief financial officer,
stated, "Our ability to successfully execute against our organic growth
opportunities once again drove exceptional financial results in the quarter.
Cash generation was particularly strong with net cash provided by operating
activities increasing to $26.4 million from $16.9 million in the prior year
quarter, which included a $4.3 million debt redemption charge. After giving
effect to this debt redemption charge, cash from operations jumped an impressive
25 percent versus the prior year."
"We are well positioned from a liquidity standpoint, exiting the quarter
with $39.9 million in cash, restricted cash and short-term investments. I'm
particularly proud of the fact that we have been able to grow our cash balances
by $14.8 million during our strong summer quarters even as we continue to invest
heavily in our pre-funded capex program," added Wilson.
"We are committed to a high level of network quality and providing the
highest level of service to both our customers and others who roam on our
network. Wireless roaming revenue from the lower 48 carriers was a key driver of
our strong performance, driven in large part by cruise ship visitors exceeding
industry forecasts. To assure we maintain superior network performance, we are
allocating $5 million of excess cash generated in 2006 to augment wireless
capacity in the tourist corridors, ahead of the 2007 visitors' season,"
concluded Wilson.
Metric Highlights: Third Quarter 2006 Compared to Second Quarter 2006
-- Increased the total number of retail customer relationships across all
product lines by approximately 6,600, or 1.5 percent, to more than
439,300.
-- Increased wireless post-paid subscribers by 4.6 percent, or almost
5,300. Inclusive of prepaid and wholesale users, the company added
nearly 5,700 wireless subscribers, bringing the total number to almost
129,600.
-- Recorded average wireless monthly post-paid churn of 1.7 percent
compared to 1.6 percent in the prior quarter. Overall average wireless
monthly churn was 1.9 percent compared to 1.7 percent.
-- Recorded wireless average revenue per user (ARPU) of $60.77, up from
$56.51, inclusive of CETC revenue of $9.82 and $9.32, respectively.
-- ACS retail subscribers on the CDMA network have increased to 90
percent, up from 85 percent at the second quarter 2006.
-- The ACS CDMA wireless network now covers 80 percent of the Alaska
population.
-- Increased DSL by 4.4 percent, or approximately 1,800 lines, to almost
42,000 lines.
-- Increased long distance subscribers by over 1,400 to approximately
62,000 customers.
-- Recorded approximately 196,000 local retail access lines, reflecting a
retail access line decrease of 1,034 lines, inclusive of the turn up
of 138 internal use lines. Pro forma for the turn-up of internal use
lines, retail access decline was 0.6 percent.
-- Recorded approximately 259,000 total local access lines. Total access
lines decreased by 3,600.
Nine Months Financial Review
For the nine months ended September 30, 2006, total revenues were $258.1
million, which represented a 5.6 percent increase over revenues of $244.3
million for the same period last year. Net income for the nine months ended
September 30, 2006, was $13.9 million, or $0.33 per share, compared to a net
loss of $36.7 million, or $0.92 per share, in the same period in 2005. Net cash
provided by operating activities for the nine months of 2006 was $64.2 million,
as compared to $32.0 million in the same period in 2005. EBITDA for the nine
months ended September 30, 2006, was $90.6 million, an increase of 5.7 percent
from $85.6 million in the same period last year.
2006 Business Outlook
For the full-year 2006, ACS is increasing the mid point of revenue
guidance. Revenues are now expected to be in the range of $340 million to $345
million, versus prior guidance of $335 million to $345 million. EBITDA, which
excludes stock based compensation, is expected to be in the range of $117
million to $119 million, increasing the previous guidance of $112 million to
$116 million. For the year 2006, net cash interest expense is expected to be
approximately $28 million.
ACS has reaffirmed 2006 capital expenditure guidance 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 the third quarter results. For parties in the United
States and Canada, call 800-240-4186 to access the earnings call. International
parties can access the call at 303-205-0066. Additionally, ACS will offer a live
webcast of the conference call, accessible from the "Investor Relations" section
of the company's website (www.alsk.com). The webcast will be archived on the ACS
website. A telephonic replay of the conference call will also be available two
hours after the call and will run until Monday, October 30, 2006, at midnight
ET. To hear the replay, parties in the United States and Canada should call
800-405-2236 and enter pass code 11073459. International parties should call
303-590-3000 and enter pass code 11073459.
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 information related to management's estimate of
EBITDA for the year ending December 31, 2006. EBITDA, as defined by the company,
may not be similar to EBITDA measures used by other companies and is not a
measurement under generally accepted accounting principles (GAAP). Management
believes that EBITDA provides useful information to investors about the
company's performance because it eliminates the effects of period-to-period
changes in costs associated with capital investments, interest and stock-based
compensation expense that are not directly attributable to the underlying
performance of the company's business operations. 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
This press release includes 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, fluctuations in
wireless revenue, including roaming revenue; changes in company's relationships
with its roaming partners; increased competition, including wireline
facilities-based competition; changes in capital expenditures or other factors
affecting the company's ability to generate sufficient earnings and cash flows
to continue to make dividend payments to its stockholders; changes in revenue
from Universal Service Funds; regulatory limitations on the company's ability to
change its pricing or bundle its communications services or other public policy
changes; the continued availability of financing necessary to support future
business; changes in accounting policies or practices; changes in the demand for
the company's products and services, retail and wholesale; rapid technological
developments in the telecommunications industry; changes in interest rates or
other general national, regional or local economic conditions, including changes
in tourism in Alaska. 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 "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" in our annual report on Form 10-K and quarterly reports on Form
10-Q. Copies of the company's SEC filings may be obtained by contacting its
investor relations department at (907) 564-7556 or by visiting its investor
relations website at http://www.alsk.com.
All information in this release is as of October 26, 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
(Unaudited, in Thousands, Except per Share Amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -------------------
2006 2005 2006 2005
-------- --------- --------- ---------
Operating revenues:
Local telephone $47,862 $ 51,481 $143,623 $153,387
Wireless 31,441 24,260 82,895 62,670
Internet 6,544 5,613 18,619 16,182
Interexchange 4,529 4,347 12,952 12,095
-------- --------- --------- ---------
Total operating revenues 90,376 85,701 258,089 244,334
Operating expenses:
Local telephone 32,368 32,857 95,996 94,508
Wireless 16,667 14,196 45,412 36,216
Internet 7,050 5,744 21,638 16,584
Interexchange 3,729 4,720 9,155 12,631
Depreciation and amortization 14,538 20,955 47,669 62,060
Loss (gain) on disposal of
assets, net - - 1,105 (68)
-------- --------- --------- ---------
Total operating expenses 74,352 78,472 220,975 221,931
Operating income 16,024 7,229 37,114 22,403
Other income and expense:
Interest expense (7,722) (8,578) (23,339) (27,209)
Loss on extinguishment of debt - (6,888) (9,650) (33,092)
Interest income 492 418 1,286 1,324
Other (74) (44) 8,443 (131)
-------- --------- --------- ---------
Total other income (expense) (7,304) (15,092) (23,260) (59,108)
-------- --------- --------- ---------
Net profit (loss) $ 8,720 $ (7,863) $ 13,854 $(36,705)
======== ========= ========= =========
Profit (loss) per share:
Basic $ 0.21 $ (0.19) $ 0.33 $ (0.92)
======== ========= ========= =========
Diluted $ 0.20 $ (0.19) $ 0.32 $ (0.92)
======== ========= ========= =========
Weighted average shares
outstanding:
Basic 42,143 41,468 41,976 39,715
-------- --------- --------- ---------
Diluted 43,541 41,468 43,273 39,715
-------- --------- --------- ---------
Schedule 2
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited, In Thousands Except Per Share Amounts)
September 30, December 31,
Assets 2006 2005
------------- ------------
Current assets:
Cash and cash equivalents $ 38,242 $ 28,877
Restricted cash 1,700 4,415
Short-term investments - 10,525
Accounts receivable-trade, net of allowance
of $6,821 and $6,206 40,679 41,080
Materials and supplies 9,534 7,885
Prepayments and other current assets 3,941 3,445
------------- ------------
Total current assets 94,096 96,227
Property, plant and equipment 1,145,850 1,116,780
Less: accumulated depreciation and
amortization 755,027 718,750
------------- ------------
Property, plant and equipment, net 390,823 398,030
Goodwill 38,403 38,403
Intangible Assets 21,604 21,688
Debt issuance costs 9,916 11,733
Deferred charges and other assets 10,765 10,332
------------- ------------
Total assets $ 565,607 $ 576,413
============= ============
Liabilities and Stockholders' Equity (Deficit)
Current liabilities:
Current portion of long-term obligations $ 1,024 $ 683
Accounts payable-affiliate 3,097 2,844
Accounts payable, accrued and other current
liabilities 53,506 54,920
Advance billings and customer deposits 10,331 9,712
------------- ------------
Total current liabilities 67,958 68,159
Long-term obligations, net of current
portion 437,326 444,895
Other deferred credits and long-term
liabilities 85,550 82,223
------------- ------------
Total liabilities 590,834 595,277
------------- ------------
Stockholders' equity (deficit):
Common stock, $.01 par value; 145,000
shares authorized, 46,743 and 46,230
shares issued and 42,194 and 41,681
shares outstanding, respectively 467 462
Treasury stock, 4,549 shares at cost (18,443) (18,443)
Paid in capital in excess of par value 312,395 333,522
Accumulated deficit (320,873) (334,727)
Accumulated other comprehensive income 1,227 322
------------- ------------
Total stockholders' equity (deficit) (25,227) (18,864)
------------- ------------
Commitments and contingencies
Total liabilities and stockholders' equity
(deficit) $ 565,607 $ 576,413
============= ============
Schedule 3
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in Thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- --------------------
2006 2005 2006 2005
--------- --------- --------- ----------
Cash Flows from Operating
Activities:
Net profit (loss) $ 8,720 $ (7,863) $ 13,854 $ (36,705)
Adjustments to reconcile net
income to net cash provided
(used) by operating
activities:
Depreciation and
amortization 14,538 20,955 47,669 62,060
Loss (gain) on disposal of
assets, net - - 1,105 (68)
Gain on sale of long-term
investments - - (6,685) -
Amortization of debt
issuance costs and
original issue discount 483 3,031 4,696 17,508
Stock based compensation 1,668 844 4,891 1,383
Other deferred credits 4,109 1,932 575 (1,484)
Changes in components of
working capital:
Accounts receivable and
other current assets (1,203) (1,685) (1,747) (5,573)
Accounts payable and other
current liabilities (1,424) (580) 348 (8,483)
Deferred charges and other
assets (513) 271 (469) 3,384
--------- --------- --------- ----------
Net cash provided by
operating activities $ 26,378 $ 16,905 $ 64,237 $ 32,022
Cash Flows from Investing
Activities:
Construction and capital
expenditures (13,484) (12,873) (40,421) (42,838)
Purchase of short-term
investments (19,675) (14,100) (39,600) (81,845)
Proceeds from the sale of
short-term investments 19,675 14,720 50,125 97,720
Sale of long-term
investments - - 7,663 -
Placement of funds in
restricted account - - - (300)
Release of funds from
escrow 1,750 55 2,715 500
--------- --------- --------- ----------
Net cash used by investing
activities (11,734) (12,198) (19,518) (26,763)
Cash Flows from Financing
Activities:
Payments of long-term debt (195) (41,503) (61,658) (446,833)
Proceeds from the issuance
of long-term debt - 40,000 52,900 375,000
Debt issuance costs - (670) (1,349) (11,307)
Payment of dividend on
common stock (9,047) (8,285) (26,403) (22,087)
Issuance of common stock 717 606 1,156 88,812
Stock issuance costs - - - (7,817)
--------- --------- --------- ----------
Net cash used by financing
activities (8,525) (9,852) (35,354) (24,232)
Increase/(decrease) in cash
and cash equivalents 6,119 (5,145) 9,365 (18,973)
Cash and cash equivalents,
beginning of period 32,123 36,832 28,877 50,660
--------- --------- --------- ----------
Cash and cash equivalents,
end of period $ 38,242 $ 31,687 $ 38,242 $ 31,687
========= ========= ========= ==========
Supplemental Cash Flow Data:
Interest paid $ 7,302 $ 11,463 $ 24,255 $ 33,002
(Increase)/decrease in
accounts payable for
construction and capital
expenditures (4,623) - 1,656 -
Supplemental Noncash
Transactions:
Interest rate swap $ 9,844 $ 5,106 $ (905) $ (2,931)
Dividend declared, but not
paid (17) (14) (9,077) (8,317)
Stock funding of pension
plan - - - 599
Schedule 4
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
SCHEDULE OF LOCAL TELEPHONE REVENUES
(Unaudited, in Thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -------------------
2006 2005 2006 2005
--------- -------- --------- ---------
Local telephone revenue:
Local network service $ 20,371 $21,945 $ 60,427 $ 65,675
Network access 22,086 23,395 68,205 69,543
Deregulated and other 5,405 6,141 14,991 18,169
--------- -------- --------- ---------
Total local telephone revenue $ 47,862 $51,481 $143,623 $153,387
========= ======== ========= =========
Schedule 5
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
SCHEDULE OF EBITDA CALCULATION
(Unaudited, in Thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2006 2005 2006 2005
--------- --------- --------- ---------
Net cash provided by operating
activities $ 26,378 $ 16,905 $ 64,237 $ 32,022
Adjustments to reconcile net
income to net cash
(provided) used by operating
activities:
Depreciation and
amortization (14,538) (20,955) (47,669) (62,060)
Gain (loss) on disposal of
assets, net - - (1,105) 68
Gain on sale of long-term
investments - - 6,685 -
Amortization of debt
issuance costs and original
issue discount (483) (3,031) (4,696) (17,508)
Stock based compensation (1,668) (844) (4,891) (1,383)
Other deferred credits (4,109) (1,932) (575) 1,484
Changes in components of
working capital:
Accounts receivable and
other current assets 1,203 1,685 1,747 5,573
Accounts payable and other
current liabilities 1,424 580 (348) 8,483
Deferred charges and other
assets 513 (271) 469 (3,384)
--------- --------- --------- ---------
Net profit (loss) $ 8,720 $ (7,863) $ 13,854 $(36,705)
Add (subtract):
Interest expense 7,722 8,578 23,339 27,209
Loss on extinguishment of
debt - 6,888 9,650 33,092
Interest income (492) (418) (1,286) (1,324)
Depreciation and
amortization 14,538 20,955 47,669 62,060
(Gain) loss on disposal of
assets, net - - 1,105 (68)
Gain on Crest asset purchase - - (1,979) -
Gain on sale of long-term
investment - - (6,685) -
Stock based compensation 1,668 844 4,891 1,383
--------- --------- --------- ---------
EBITDA $ 32,156 $ 28,984 $ 90,558 $ 85,647
========= ========= ========= =========
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 of intangibles and stock based
compensation 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.
Schedule 6
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
Allocation of Stock Based Compensation between Segments
(Unaudited, in Thousands)
Three Months Ended
September 30, 2006
----------------------------------------
As reported on Stock Based
Schedule 1 Compensation Adjusted
--------------- ------------- ----------
Operating expenses:
Local telephone 32,368 (1,424) 30,944
Wireless 16,667 (166) 16,501
Internet 7,050 (66) 6,984
Interexchange 3,729 (12) 3,717
Depreciation and
amortization 14,538 - 14,538
--------------- ------------- ----------
Total operating expenses $ 74,352 $ (1,668) $ 72,684
=============== ============= ==========
Nine Months Ended
September 30, 2006
----------------------------------------
As reported on Stock Based
Schedule 1 Compensation Adjusted
--------------- ------------- ----------
Operating expenses:
Local telephone 95,996 (4,198) 91,798
Wireless 45,412 (474) 44,938
Internet 21,638 (188) 21,450
Interexchange 9,155 (31) 9,124
Depreciation and
amortization 47,669 - 47,669
(Gain) loss on disposal of
assets, net 1,105 - 1,105
--------------- ------------- ----------
Total operating expenses $ 220,975 $ (4,891) $ 216,084
=============== ============= ==========
Three Months Ended
September 30, 2005
----------------------------------------
As reported on Stock Based
Schedule 1 Compensation Adjusted
--------------- ------------- ----------
Operating expenses:
Local telephone 32,857 (734) 32,123
Wireless 14,196 (75) 14,121
Internet 5,744 (31) 5,713
Interexchange 4,720 (4) 4,716
Depreciation and
amortization 20,955 - 20,955
--------------- ------------- ----------
Total operating expenses $ 78,472 $ (844) $ 77,628
=============== ============= ==========
Nine Months Ended
September 30, 2005
----------------------------------------
As reported on Stock Based
Schedule 1 Compensation Adjusted
--------------- ------------- ----------
Operating expenses:
Local telephone 94,508 (1,203) 93,305
Wireless 36,216 (123) 36,093
Internet 16,584 (51) 16,533
Interexchange 12,631 (6) 12,625
Depreciation and
amortization 62,060 - 62,060
(Gain) loss on disposal of
assets, net (68) - (68)
--------------- ------------- ----------
Total operating expenses $ 221,931 $ (1,383) $ 220,548
=============== ============= ==========
The balances reported on Schedule 1 - Statement of Operations,
include the Company's adoption of FAS 123R Accounting for Stock
Based Compensation. This schedule shows the Company's operating
performance prior to that expense being recorded to allow analysis
of the operating segments without these noncash charges. Prior year
comparison numbers have also been adjusted for a reclassification
of costs from Interexchange to Wireless to better reflect
underlying product profitability.
Schedule 7
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
Investment in Construction and Capital Expenditures
(Unaudited, in Thousands)
Three Months Nine Months Twelve Months
Ended Ended Ended
September 30, September 30, December 31,
2006 2006 2005
------------- ------------- -------------
Construction and capital
expenditures 13,484 40,421 58,422
Increase/(decrease) in
accounts payable for
construction and capital
expenditures 4,623 (1,656) 5,975
------------- ------------- -------------
Investment in construction
and capital $ 18,107 $ 38,765 $ 64,397
============= ============= =============
Growth 5,913 17,534 26,735
Maintenance 12,194 21,231 35,044
Investment funded by
excess 2005 cash - - 2,618
------------- ------------- -------------
Investment in construction
and capital $ 18,107 $ 38,765 $ 64,397
============= ============= =============
Schedule 8A
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
KEY OPERATING STATISTICS
(Unaudited)
September 30, June 30, September 30,
2006 2006 2005
------------- --------- -------------
Local telephone:
Retail access lines 195,997 197,031 201,284
Resale access lines 12,045 12,504 14,323
UNE lines 51,089 53,231 62,418
------------- --------- -------------
Total local telephone access
lines 259,131 262,766 278,025
============= ========= =============
Average local telephone access
lines for the quarter 260,949 264,124 281,042
Average monthly local
telephone revenue per line
for the quarter $ 61.14 $ 59.93 $ 61.06
Quarterly growth rate in local
telephone access lines -1.4% -1.0% -2.1%
Wireless:
Covered population 534,542 533,930 509,996
Post-paid wireless subscribers 121,066 115,770 100,297
Average post-paid wireless
subscribers 118,418 113,474 97,721
Quarterly growth rate -
post-paid wireless
subscribers 4.6% 4.1% 5.4%
Average monthly churn for
the quarter 1.7% 1.6% 2.0%
Average monthly revenue per
subscriber for the
quarter(a) $ 62.94 $ 58.85 $ 61.22
Prepaid wireless subscribers 5,023 4,540 6,292
Resale wireless subscribers 3,481 3,582 5,049
Total wireless subscribers 129,570 123,892 111,638
Average subscribers for the
quarter 126,731 121,516 109,680
Quarterly growth rate 4.6% 4.0% 3.6%
Average monthly churn for
the quarter 1.9% 1.7% 2.2%
Penetration 24.2% 23.2% 21.9%
Average monthly revenue per
subscriber for the
quarter(a) $ 60.77 $ 56.51 $ 57.12
Long Distance:
Long distance subscribers 61,984 60,556 53,558
Average subscribers for the
quarter 61,270 59,554 52,130
Average monthly revenue per
subscriber for the quarter $ 24.64 $ 25.47 $ 27.80
Internet:
DSL subscribers 41,744 39,982 33,070
Dial-up subscribers 13,555 14,738 19,187
------------- --------- -------------
Total Internet subscribers 55,299 54,720 52,257
============= ========= =============
Average subscribers for the
quarter 55,010 54,373 51,337
Average monthly DSL & dial-up
revenue per subscriber for
the quarter $ 29.40 $ 29.09 $ 30.06
(a) Wireless ARPU has been restated to exclude late fees and early
termination charges and to allocate competitive eligible
telecommunications carrier (CETC) revenue only to post-paid and
wholesale subscribers. CETC added $10.20 and $9.66 to post-paid
wireless ARPU in the third and second quarter of 2006,
respectively and $9.39 in the third quarter of 2005. CETC added
$9.82 and $9.32 to total wireless ARPU in the third and second
quarter of 2006, respectively and $8.81 in the third quarter of
2005.
Schedule 8B
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
KEY OPERATING STATISTICS
(Unaudited)
September 30, June 30,
2006 2006 Net Movement
-------------- --------- ------------
Local telephone retail access
lines 195,997 197,031 (1,034)
Less: internal lines
installed (138)
------------
(1,172)
Post-paid wireless subscribers 121,066 115,770
Prepaid wireless subscribers 5,023 4,540
-------------- ---------
126,089 120,310 5,779
-------------- ---------
Long distance subscribers 61,984 60,556 1,428
DSL and dial up subscribers 55,299 54,720 579
-------------- --------- ------------
Total retail
relationships 439,369 432,617 6,614 (a)
============== ========= ============
(a) Net movement in total retail relationships inclusive of a 138
adjustment for internal use lines activated during the
quarter.
CONTACT: Alaska Communications Systems
Meghan Stapleton, 907-297-3000 (Media)
Director, Corporate Communications
meghan.stapleton@acsalaska.com
or
Lippert/Heilshorn & Associates
Kirsten Chapman, 415-433-3777 (Investors)
kchapman@lhai.com