Exhibit 99.1
Alaska Communications Systems Reports
Fourth Quarter and Year-End 2006 Results
- Revenues Increase 11.2% to $91.7 Million from $82.5 Million in
Fourth Quarter 2005-
- Cash Provided by Operating Activities Increases 9.0% to $26.5
Million -
- EBITDA Increases to $31.4 Million, Up 17.4% Compared to Fourth
Quarter 2005 -
ANCHORAGE, Alaska--(BUSINESS WIRE)--Feb. 22, 2007--Alaska
Communications Systems Group, Inc. ("ACS") (Nasdaq:ALSK) today
reported financial results for its fourth quarter and year ended
December 31, 2006.
Liane Pelletier, ACS president and chief executive officer,
stated, "Once again we have proven that with continued focus on
fundamentals, we can achieve superior results. 2006 closed with total
financial performance above plan, with liquidity in the stock enhanced
through the sale of all remaining private equity interests, with a
stronger management team and with many operating components
significantly enhanced through process improvement. Over the last two
plus years, ACS has continued to exceed its revenue and EBITDA
targets, and demonstrated the value of its asset mix. The ACS team
concluded the year with annual revenue growth of 7.0 percent and
annual EBITDA growth of 8.5 percent, driving continued expansion in
cash flow per share."
"A stable incumbent local telephone company has effectively
transformed into a growing wireless-wireline company that is driving
top line growth while managing costs. As a result, ACS is well
positioned to take advantage of further growth opportunities in its
market," commented Pelletier.
"Consistent with the direction conveyed in the last quarter's
earnings release, ACS continues to evaluate certain Alaskan investment
opportunities that will position the company for long term shareholder
value enhancement. No further update is available as of today, but the
Board and the executive team are focused on the evaluation and more
will be reported as it is appropriate. In the meantime, the company is
pleased to share a 2007 performance outlook that is consistent with
what the organization has achieved over the past 3 years: continued
growth in recurring revenue, EBITDA and distributable cash flow,"
concluded Pelletier.
Financial Highlights: Fourth Quarter 2006 Compared to Fourth
Quarter 2005
-- Revenues were $91.7 million, representing an 11.2 percent
increase.
-- Operating income increased to $13.9 million compared to fourth
quarter 2005 operating income of $4.7 million.
-- The Company posted net income of $6.1 million, or $0.14 per
share (diluted). The net loss for the fourth quarter 2005 was
$4.9 million or $0.12 per share.
-- Net cash provided by operations increased 9.0 percent to $26.5
million.
-- EBITDA increased to $31.4 million, up 17.4 percent. EBITDA
performance benefited from $2.4 million of out-of-period CETC
receipts.
David Wilson, ACS senior vice president and chief financial
officer, said, "The strength of our wireless offering continues to
drive strong top and bottom line growth. Wireless revenue rose 38.7
percent to $32.7 million compared to $23.6 million a year ago. Our
wireless subscribers grew 14 percent annually to 134,000; and ARPU
grew by 5.8 percent annually to $60.01. Wireless performance also
benefited from foreign roaming revenue of $3.2 million and the receipt
of $2.4 million of out of period CETC revenue which helped expand
wireless EBITDA margin to just under 50 percent in the quarter."
"Strong organic top line growth coupled with stringent cost
containment continues to drive cash flow expansion, with $90.7 million
of cash generated from operating activities in 2006, up 61.1 percent
over the prior year. We remain well positioned from a liquidity
standpoint and exited the year with cash, restricted cash and
investments of $38.6 million, down only $5.3 million in a year where
we delevered by $9.0 million and invested $21.0 million in our
pre-funded capex program," added Wilson.
Metric Highlights: Fourth Quarter 2006 Compared to Third Quarter
2006
-- Increased the total number of retail customer relationships
across all product lines by approximately 7,100 to 446,400.
-- Increased wireless subscribers by 3.4 percent, or
approximately 4,400, bringing the total to almost 134,000.
-- Recorded post-paid churn of 1.8 percent compared to 1.7
percent in the prior quarter. Overall average wireless monthly
churn was 2.1 percent compared to 1.9 percent. As expected
churn was impacted by the aggressive transition of subscribers
from the TDMA to the CDMA network and by troop deployments.
-- Recorded wireless ARPU of $60.01, a seasonally consistent
shift from $60.77 in Q3, inclusive of CETC revenue of $9.85
and $9.82, respectively.
-- Increased long distance subscribers by over 2,000 to
approximately 64,000 customers.
-- Retail local access lines declined by 0.6 percent to 195,000
while DSL lines increased 5.6 percent to over 44,000 lines.
DSL line gains exceeded 2,300 while retail local access lines
losses were only 1,200.
-- Recorded approximately 252,700 total local network access
lines. Total access lines decreased by approximately 6,500 or
2.5 percent.
Annual Financial Review
For the year ended December 31, 2006:
-- Total revenues were $349.8 million, which represented a 7.0
percent increase over 2005 revenues of $326.8 million.
-- Net income for 2006 was $20.0 million, or $0.46 per share
(diluted), as compared to a net loss of $41.6 million, or
$1.04 per share, in 2005;
-- Net cash provided by operating activities for 2006 was $90.7
million as compared to $56.3 million in 2005.
- -0-
*T
- -- EBITDA for 2006 was $121.9 million, an increase of 8.5 percent from
$112.4 million in 2005. 2006 performance benefited from:
-- $2.4 million of out of period CETC revenue received in the
fourth quarter;
-- $1.0 million vendor credit received in the first quarter; and
-- Strong network access revenue that management estimates was $2
million higher than long term trends.
*T
-- Investment in construction and capital investments totaled
$59.4 million, comprising maintenance capital spend of $37.3
million; investments in pre-funded growth capital expenditures
of $21.0 million; and $1.1 million of IRU capacity funded as
part of a negotiated settlement.
2007 Business Outlook
For the full year 2007, revenues are expected to be in the range
of $350 million to $360 million, and EBITDA is expected to be in the
range of $118 million to $122 million. As noted above under the
heading "Annual Financial Review," 2006 EBITDA performance benefited
from out of period CETC revenue, a significant vendor credit and
network access revenue that was higher than long term trends.
For 2007 ACS expects net cash interest expense to be approximately
$27 million and capital expenditures to be approximately $42 million,
comprised of maintenance capital expenditures of approximately $37
million; and wireless capacity augmentation in the major tourist
corridors of $5 million, funded by excess cash generated in 2006.
Conference Call
The company will host a conference call and live webcast today at
5:00 p.m. Eastern Time to discuss fourth quarter results. For parties
in the United States and Canada, call 800-240-2430 to access the
earnings call. International parties can access the call at
303-262-2137.
The live webcast of the conference call is accessible from the
"Events Calendar" 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 26, 2007 at midnight ET. To hear
the replay, parties in the United States and Canada should call
800-405-2236 and enter pass code 11083252. International parties
should call 303-590-3000 and enter pass code 11083252.
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, 2007. 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 the company's relationships with its roaming
partners; increased competition, including wireline facilities-based
competition; changes in capital expenditures, strategic investments,
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 www.alsk.com.
All information in this release is as of February 22, 2007. 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.
Tables Follow
Schedule 1
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in Thousands, Except per Share Amounts)
Three Months Twelve Months
Ended Ended
December 31, December 31,
---------------- ------------------
2006 2005 2006 2005
-------- ------- --------- --------
Operating revenues:
Local telephone $48,435 $49,455 $192,058 $202,842
Wireless 32,689 23,565 115,584 86,235
Internet 6,602 5,490 25,221 21,672
Interexchange 4,002 3,965 16,954 16,060
-------- ------- --------- --------
Total operating revenues 91,728 82,475 349,817 326,809
Operating expenses:
Local telephone 34,182 32,474 130,178 126,982
Wireless 16,610 13,191 62,022 49,407
Internet 7,987 6,714 29,625 23,298
Interexchange 3,478 4,683 12,633 17,314
Depreciation and amortization 15,590 20,759 63,259 82,819
Loss (gain) on disposal of assets,
net - (84) 1,105 (152)
-------- ------- --------- --------
Total operating expenses 77,847 77,737 298,822 299,668
Operating income 13,881 4,738 50,995 27,141
Other income and expense:
Interest expense (7,764) (8,685) (31,103) (35,894)
Loss on extinguishment of debt - (1,790) (9,650) (34,882)
Interest income 549 929 1,835 2,253
Other (83) (122) 8,360 (253)
-------- ------- --------- --------
Total other income and expense (7,298) (9,668) (30,558) (68,776)
-------- ------- --------- --------
Net income (loss) before income tax
expense 6,583 (4,930) 20,437 (41,635)
Income tax expense (443) - (443) -
-------- ------- --------- --------
Net income (loss) $ 6,140 $(4,930) $ 19,994 $(41,635)
======== ======= ========= ========
Net income (loss) per share:
Basic $ 0.15 $ (0.12) $ 0.48 $ (1.04)
======== ======= ========= ========
Diluted $ 0.14 $ (0.12) $ 0.46 $ (1.04)
======== ======= ========= ========
Weighted average shares
outstanding:
Basic 42,249 41,580 42,045 40,185
-------- ------- --------- --------
Diluted 43,820 41,580 43,387 40,185
-------- ------- --------- --------
Schedule 2
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited, In Thousands Except Per Share Amounts)
December December
31, 31,
Assets 2006 2005
----------- ----------
Current assets:
Cash and cash equivalents $ 36,860 $ 28,877
Restricted cash 1,700 4,415
Short-term investments - 10,525
Accounts receivable-trade, net of allowance of
$7,434 and $6,206 39,801 41,080
Materials and supplies 7,977 7,885
Prepayments and other current assets 3,514 3,445
----------- ----------
Total current assets 89,852 96,227
Property, plant and equipment 1,164,450 1,116,780
Less: accumulated depreciation and amortization 767,907 718,750
----------- ----------
Property, plant and equipment, net 396,543 398,030
Goodwill 38,403 38,403
Intangible Assets 21,604 21,688
Debt issuance costs 9,437 11,733
Deferred charges and other assets 6,482 10,332
----------- ----------
Total assets $ 562,321 $ 576,413
=========== ==========
Liabilities and Stockholders' Equity (Deficit)
Current liabilities:
Current portion of long-term obligations $ 1,025 $ 683
Accounts payable-affiliate 2,942 2,844
Accounts payable, accrued and other current
liabilities 62,307 54,920
Advance billings and customer deposits 10,667 9,712
----------- ----------
Total current liabilities 76,941 68,159
Long-term obligations, net of current portion 437,188 444,895
Other deferred credits and long-term liabilities 72,881 82,223
----------- ----------
Total liabilities 587,010 595,277
----------- ----------
Stockholders' equity (deficit):
Common stock, $.01 par value; 145,000
authorized, 42,323 and 46,230 issued and
42,323 and 41,681 outstanding, respectively 423 462
Treasury stock, 0 and 4,549 shares at cost - (18,443)
Paid in capital in excess of par value 288,055 333,522
Accumulated deficit (314,733) (334,727)
Accumulated other comprehensive income 1,566 322
----------- ----------
Total stockholders' equity (deficit) (24,689) (18,864)
----------- ----------
Commitments and contingencies
Total liabilities and stockholders' equity
(deficit) $ 562,321 $ 576,413
=========== ==========
Schedule 3
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in Thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
2006 2005 2006 2005
--------- -------- --------- ---------
Cash Flows from Operating
Activities:
Net income (loss) $ 6,140 $ (4,930) $ 19,994 $ (41,635)
Adjustments to reconcile net
income to net cash provided
(used) by operating
activities:
Depreciation and amortization 15,590 20,759 63,259 82,819
Loss (gain) on disposal of
assets, net - (84) 1,105 (152)
Gain on sale of long-term
investments - - (6,685) -
Amortization of debt issuance
costs and original issue
discount 484 1,252 5,180 18,760
Other non-cash expenses 234 109 234 109
Stock based compensation 1,979 1,417 6,870 2,800
Changes in components of
assets and liabilities:
Accounts receivable and other
current assets 2,865 2,923 1,118 (2,650)
Accounts payable and other
current liabilities 8,208 506 8,556 (7,977)
Other deferred credits (13,349) 1,986 (12,774) 502
Deferred charges and other
assets 4,351 376 3,882 3,760
--------- -------- --------- ---------
Net cash provided by operating
activities 26,502 24,314 90,739 56,336
Cash Flows from Investing
Activities:
Construction and capital
expenditures (19,795) (15,584) (60,216) (58,422)
Purchase of short-term
investments (17,900) (13,250) (57,500) (95,095)
Proceeds from the sale of
short-term investments 17,900 22,050 68,025 119,770
Sale of long-term investments - - 7,663 -
Placement of funds in
restricted account - (400) - (700)
Release of funds from escrow - 475 2,715 975
--------- -------- --------- ---------
Net cash used by investing
activities (19,795) (6,709) (39,313) (33,472)
Cash Flows from Financing
Activities:
Payments of long-term debt (202) (12,182) (61,860) (459,015)
Proceeds from the issuance of
long-term debt - - 52,900 375,000
Debt issuance costs - - (1,349) (11,307)
Payment of dividend on common
stock (9,072) (8,306) (35,475) (30,393)
Issuance of common stock 1,185 73 2,341 88,885
Stock issuance costs - - - (7,817)
--------- -------- --------- ---------
Net cash used by financing
activities (8,089) (20,415) (43,443) (44,647)
Increase/(decrease) in cash and
cash equivalents (1,382) (2,810) 7,983 (21,783)
Cash and cash equivalents,
beginning of period 38,242 31,687 28,877 50,660
--------- -------- --------- ---------
Cash and cash equivalents, end
of period $ 36,860 $ 28,877 $ 36,860 $ 28,877
========= ======== ========= =========
Supplemental Cash Flow Data:
Interest paid $ 7,025 $ 6,472 $ 31,280 $ 39,474
Income taxes paid, net of
refund 264 - 264 -
(Increase)/decrease in accounts
payable for construction and
capital expenditures (741) (5,975) 915 (5,975)
Supplemental Noncash
Transactions:
Property acquired under capital
leases and mortgages $ 60 $ - $ 60 $ -
Dividend declared, but not paid 28 30 9,105 8,347
Schedule 4
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
SCHEDULE OF LOCAL TELEPHONE REVENUES
(Unaudited, in Thousands)
Three Months Twelve Months
Ended Ended
December 31, December 31,
---------------- ------------------
2006 2005 2006 2005
-------- ------- --------- --------
Local telephone revenue:
Local network service $19,750 $20,807 $ 80,177 $ 86,482
Network access 22,689 22,836 90,894 92,379
Deregulated and other 5,996 5,812 20,987 23,981
-------- ------- --------- --------
Total local telephone revenue $48,435 $49,455 $192,058 $202,842
======== ======= ========= ========
Schedule 5
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
SCHEDULE OF EBITDA CALCULATION
(Unaudited, in Thousands)
Three Months Ended Twelve Months
Ended
December 31, December 31,
------------------ ------------------
2006 2005 2006 2005
--------- -------- --------- --------
Net cash provided by operating
activities $ 26,502 $ 24,314 $ 90,739 $ 56,336
Adjustments to reconcile net
income to net cash (provided)
used by operating activities:
Depreciation and amortization (15,590) (20,759) (63,259) (82,819)
Gain (loss) on disposal of
assets, net - 84 (1,105) 152
Gain on sale of long-term
investments - - 6,685 -
Amortization of debt issuance
costs and original issue
discount (484) (1,252) (5,180) (18,760)
Other non-cash expenses (234) (109) (234) (109)
Stock based compensation (1,979) (1,417) (6,870) (2,800)
Changes in components of
assets and liabilities:
Accounts receivable and
other current assets (2,865) (2,923) (1,118) 2,650
Accounts payable and other
current liabilities (8,208) (506) (8,556) 7,977
Other deferred credits 13,349 (1,986) 12,774 (502)
Deferred charges and other
assets (4,351) (376) (3,882) (3,760)
--------- -------- --------- --------
Net income (loss) $ 6,140 $ (4,930) $ 19,994 $(41,635)
Add (subtract):
Interest expense 7,764 8,685 31,103 35,894
Loss on extinguishment of
debt - 1,790 9,650 34,882
Interest income (549) (929) (1,835) (2,253)
Depreciation and amortization 15,590 20,759 63,259 82,819
(Gain) loss on disposal of
assets, net - (84) 1,105 (152)
Gain on Crest asset purchase - - (1,979) -
Income tax expense 443 - 443 -
Gain on sale of long-term
investment - - (6,685) -
Stock based compensation 1,979 1,417 6,870 2,800
--------- -------- --------- --------
EBITDA $ 31,367 $ 26,708 $121,925 $112,355
========= ======== ========= ========
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, provisions for taxes, depreciation
expense, gain or loss on asset purchases or disposals,
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
December 31, 2006
------------------------------------------
As reported on Stock Based
Schedule 1 Compensation Adjusted
----------------- -------------- ---------
Operating expenses:
Local telephone $ 34,182 $(1,682) $ 32,500
Wireless 16,610 (203) 16,407
Internet 7,987 (81) 7,906
Interexchange 3,478 (13) 3,465
Depreciation and
amortization 15,590 - 15,590
Loss on disposal of
assets, net - - -
----------------- -------------- ---------
Total operating expenses $ 77,847 $(1,979) $ 75,868
================= ============== =========
Twelve Months Ended
December 31, 2006
------------------------------------------
As reported on Stock Based
Schedule 1 Compensation Adjusted
----------------- -------------- ---------
Operating expenses:
Local telephone $130,178 $(5,880) $124,298
Wireless 62,022 (677) 61,345
Internet 29,625 (269) 29,356
Interexchange 12,633 (44) 12,589
Depreciation and
amortization 63,259 - 63,259
(Gain) loss on disposal of
assets, net 1,105 - 1,105
----------------- -------------- ---------
Total operating expenses $298,822 $(6,870) $291,952
================= ============== =========
Three Months Ended
December 31, 2005
-------------------------------------
As reported
on Stock Based
Schedule 1 Compensation Adjusted
------------ -------------- ---------
Operating expenses:
Local telephone $ 32,474 $(1,229) $ 31,245
Wireless 13,191 (129) 13,062
Internet 6,714 (53) 6,661
Interexchange 4,683 (6) 4,677
Depreciation and amortization 20,759 - 20,759
Loss on disposal of assets,
net (84) - (84)
------------ -------------- ---------
Total operating expenses $ 77,737 $(1,417) $ 76,320
============ ============== =========
Twelve Months Ended
December 31, 2005
-------------------------------------
As reported
on Stock Based
Schedule 1 Compensation Adjusted
------------ -------------- ---------
Operating expenses:
Local telephone $126,982 $(2,432) $124,550
Wireless 49,407 (252) 49,155
Internet 23,298 (104) 23,194
Interexchange 17,314 (12) 17,302
Depreciation and amortization 82,819 - 82,819
(Gain) loss on disposal of
assets, net (152) - (152)
------------ -------------- ---------
Total operating expenses $299,668 $(2,800) $296,868
============ ============== =========
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 non-cash charges.
Schedule 7
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
Investment in Construction and Capital Expenditures
(Unaudited, in Thousands)
Three Twelve Twelve
Months Months Months
Ended Ended Ended
December December December
31, 31, 31,
2006 2006 2005
-------- -------- --------
Cash outlay for construction and capital
expenditures $19,795 $60,216 $58,422
Increase/(decrease) in accounts payable for
construction and capital expenditures 741 (915) 5,975
Non-cash capital lease 60 60 -
-------- -------- --------
Investment in construction and capital $20,596 $59,361 $64,397
======== ======== ========
Growth 4,569 21,003 26,735
Maintenance 16,027 37,258 35,044
IRU funded from Crest settlement - 1,100 -
Investment funded by excess 2005 cash - - 2,618
-------- -------- --------
Investment in construction and capital $20,596 $59,361 $64,397
======== ======== ========
Schedule 8A
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
KEY OPERATING STATISTICS
(Unaudited)
December September December
31, 30, 31,
2006 2006 2005
--------- --------- ---------
Local telephone:
Retail access lines 194,815 195,997 199,341
Resale access lines 11,226 12,045 13,966
UNE lines 46,626 51,089 57,578
--------- --------- ---------
Total local telephone access lines 252,667 259,131 270,885
========= ========= =========
Average local telephone access lines
for the quarter 255,899 260,949 274,455
Average monthly local telephone
revenue per line for the quarter $ 63.09 $ 61.14 $ 60.06
Quarterly growth rate in local
telephone access lines -2.5% -1.4% -2.6%
Wireless:
Covered population 541,940 534,542 523,827
Post-paid wireless subscribers 125,064 121,066 107,144
Average post-paid wireless
subscribers 123,065 118,418 103,721
Quarterly growth rate - post-
paid wireless subscribers 3.3% 4.6% 6.8%
Average monthly churn for the
quarter 1.8% 1.7% 1.8%
Average monthly revenue per
subscriber for the quarter(a) $ 62.16 $ 62.94 $ 60.74
Prepaid wireless subscribers 5,907 5,023 5,710
Resale wireless subscribers 3,017 3,481 4,683
Total wireless subscribers 133,988 129,570 117,537
Average subscribers for the
quarter 131,779 126,731 114,588
Quarterly growth rate 3.4% 4.6% 5.3%
Average monthly churn for the
quarter 2.1% 1.9% 2.0%
Penetration 24.7% 24.2% 22.4%
Average monthly revenue per
subscriber for the quarter(a) $ 60.01 $ 60.77 $ 56.71
Long Distance:
Long distance subscribers 63,995 61,984 56,317
Average subscribers for the quarter 62,990 61,270 54,938
Average monthly revenue per
subscriber for the quarter $ 21.18 $ 24.64 $ 24.06
Internet:
DSL subscribers 44,066 41,744 35,844
Dial-up subscribers 12,591 13,555 17,401
--------- --------- ---------
Total Internet subscribers 56,657 55,299 53,245
========= ========= =========
Average subscribers for the quarter 55,978 55,010 52,751
Average monthly DSL & dial-up revenue
per subscriber for the quarter $ 28.88 $ 29.40 $ 29.15
(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 postpaid and
wholesale subscribers. CETC added $10.29 and 10.20 to postpaid
wireless ARPU in the fourth and third quarter of 2006,
respectively and $9.33 in the fourth quarter of 2005. CETC added
$9.85 and $9.82 to total wireless ARPU in the fourth and third
quarter of 2006, respectively and $8.84 in the fourth quarter of
2005. Out of period CETC revenue is excluded from ARPU.
Schedule 8B
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
KEY OPERATING STATISTICS
(Unaudited)
December September
31, 30,
Net
2006 2006 Movement
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Local telephone retail access lines 194,815 195,997 (1,182)
Post-paid wireless subscribers 125,064 121,066
Prepaid wireless subscribers 5,907 5,023
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130,971 126,089 4,882
-------- ---------
Long distance subscribers 63,995 61,984 2,011
DSL and dial up subscribers 56,657 55,299 1,358
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Total retail relationships 446,438 439,369 7,069
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CONTACT: ACS Investors (Investors)
Alaska Communications Systems
Investor Relations, 907-564-7556
investors@acsalaska.com
or
ACS Corporate Communications (Media)
Mary Gasperlin, 907-297-3000
Director, Corporate Communications
mary.gasperlin@acsalaska.com