Exhibit 99.1
Alaska Communications Systems Reports Second Quarter 2007 Results
- Revenue Increased 9.6% to $93.2 Million Compared to Second
Quarter 2006 -
- Wireless Revenue Rose 23.7% to $33.3 Million -
- Cash Provided by Operating Activities Reached $18.8 Million -
- EBITDA of $32.4 Million Grew 7.4% over Second Quarter 2006 -
ANCHORAGE, Alaska--(BUSINESS WIRE)--July 26, 2007--Alaska
Communications Systems Group, Inc. ("ACS") (NASDAQ:ALSK) today
reported financial results for its second quarter and six months ended
June 30, 2007.
"Our second quarter results continue to demonstrate the strength
of our business strategy and execution," said Liane Pelletier, ACS
president and chief executive officer. "The ACS strategy maximizes
cash flow by capturing profitable growth in the strategic telecom
segments, and enhances margins overall even as certain areas of the
telecom market face structural decline. The strategy drives towards a
wireless-centric consumer base and a data-centric business base. As of
Q2 2007, nearly half of the company's EBITDA was derived from wireless
- -- driven primarily by the consumer segment -- and Internet revenues
were up 27% -- driven primarily by the enterprise segment."
"With this strategy, our sales focus increasingly targets segments
and accounts that will deliver meaningful long-term value for the
company. Since Q1, we won a number of key high-end enterprise
accounts, we delivered strong wireless growth and we more selectively
approached the wireline mass market, capitalizing on lessons learned
about the tenure and profitability of certain consumer segments. This
kind of operational and market focus underpins the steady increase in
EBITDA," Pelletier continued.
Financial Highlights: Second Quarter 2007 Compared to Second
Quarter 2006
-- Revenues were $93.2 million, a 9.6 percent increase over
second quarter 2006 revenues of $85.1 million.
-- Operating income increased 18.6 percent to $14.4 million
compared to the second quarter 2006 operating income of $12.2
million.
-- The company posted net income of $7.1 million, or $0.16 per
diluted share, compared to $0.31 per diluted share during the
second quarter 2006. Second quarter 2006 earnings are
inclusive of non-recurring gains of $6.7 million from the
liquidation of Rural Telephone Bank (RTB) class C stock that
settled in April 2006 and $2.0 million from the Crest
terrestrial asset purchase.
-- Net cash provided by operating activities decreased to $18.8
million, or 17.1 percent, compared to $22.7 million of net
cash in the same period a year ago. The reduction in operating
cash flow was in line with expectations following the
settlement of certain network access reserve and 2006
incentive compensation balances. Prior year cash flow also
benefited from a non-recurring gain of $2.0 million.
-- EBITDA was $32.4 million, an increase of 7.4 percent, compared
to $30.1 million for the year ago period.
David Wilson, ACS senior vice president and chief financial
officer, said, "Wireless revenues continue to ramp, growing 24 percent
from a year ago to $33.3 million, driven by a 15 percent increase in
average subscribers and a 9 percent increase in average revenue per
user, or ARPU. Wireline revenues grew by 3 percent from a year ago to
$59.9 million, driven primarily by Internet and long distance.
Revenues earned from retail local access lines remains a key component
of wireline revenue and while the number of retail local access lines
declined by 2.7 percent over the prior year, this decline was offset
by a corresponding 2.7 percent increase in ARPU driven by upselling
activities and improved subscriber mix."
"Our liquidity position continued to improve in the quarter with
cash, restricted cash and investment balances increasing $3.1 million
sequentially to $40.8 million. Major investments and uses of cash in
the quarter included capital expenditures of $13.5 million, comprising
$10.0 million in maintenance capital and $3.5 million in growth
capital expenditures, and $9.2 million in dividend payments,"
concluded Wilson.
Metric Highlights: Second Quarter 2007 Compared to First Quarter
2007
-- Retail relationships grew for the 13th consecutive quarter,
increasing by approximately 1,700 during Q2 to over 452,000.
-- Increased wireless subscribers by 3.2 percent, or over 4,400,
bringing the total to approximately 142,000.
-- Average wireless monthly churn of 1.4 percent was unchanged
from the prior quarter.
-- Increased wireless ARPU, now $61.62, up from $60.60 in Q1,
inclusive of CETC revenue of $9.92 and $10.26, respectively.
-- DSL lines increased by 200 to approximately 45,700, reflective
of second quarter sales focus.
-- Retail local access lines declined by 1.1 percent to 192,000.
-- Recorded approximately 238,600 total local access lines. Total
local access lines decreased by approximately 7,300 or 3.0
percent, driven primarily by resale and UNE access lines
leaving the network.
Six Months Financial Review
For the six months ended June 30, 2007, total revenues were $183.8
million, which represented a 9.6 percent increase over revenues of
$167.7 million for the same period last year. Net income for the six
months ended June 30, 2007, was $14.6 million, or $0.33 per diluted
share, compared to net income of $5.1 million, or $0.12 per share, in
the same period in 2006. Net cash provided by operating activities for
the first half of 2007 was $46.6 million, as compared to $37.9 million
in the same period in 2006. EBITDA for the six months ended June 30,
2007 was $64.8 million, an increase of 11.0 percent from $58.4 million
in the same period last year.
2007 Business Outlook
Reaffirming guidance for the full-year 2007, revenues are expected
to be in the range of $360 million to $370 million, and EBITDA is
expected to be in the range of $120 million to $124 million, exclusive
of stock-based compensation. For the year 2007, net cash interest
expense is expected to be approximately $27 million.
ACS has also reaffirmed 2006 capital expenditure guidance to be
approximately $46 million, comprised of maintenance capital
expenditures of approximately $37 million and growth capital
expenditures of approximately $9 million. The guidance presented is
exclusive of ACS' strategic investment.
Strategic Investment
"Our work continues on the strategic investment in fiber between
Alaska and the Pacific Northwest, positioning ACS to more effectively
compete for carrier, enterprise and government demand; to satisfy
growing bandwidth needs; and to position ACS to capture favorable
macroeconomic trends in Alaska," said Pelletier. "Our project plans
have met with tremendous market enthusiasm for a diverse route and an
additional supplier, and the business case has clearly been
reinforced. As a result, the project options have expanded and we will
screen them to select the one that delivers the best long-term value
for the company, consistent with our dividend policy and target
capital structure objectives."
Conference Call
The company will host a conference call and live webcast today at
5:00 p.m. Eastern Time to discuss first quarter results. For parties
in the United States and Canada, call 866-250-2351 to access the
earnings call. Parties outside the United States and Canada can access
the call at 303-262-2139.
The live webcast of the conference call will be 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, July 30, 2007 at midnight ET. To hear
the replay, parties in the United States and Canada should call
800-405-2236 and enter pass code 11093306. Parties outside the United
States and Canada should call 303-590-3000 and enter pass code
11093306.
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, whether the company undertakes the strategic investment
described above as well as the company's ability to complete, manage,
integrate, market, maintain, and attract sufficient customers to the
products and services it may derive from this strategic investment.
The company cannot assure you that the strategic investment, if made,
will generate sufficient revenue at acceptable cost. Other factors
are, without limitation, fluctuations in wireless revenue, including
roaming revenue; changes in company's relationships with its roaming
partners; increased competition, including from national wireless and
local wireline facilities-based competitors; changes in revenue from
Universal Service Funds; 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; 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; 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
for the year ended December 31, 2006 and on Form 10-Q for the quarter
ended March 31, 2007. 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.
- Tables Follow -
Schedule 1
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in Thousands, Except per Share Amounts)
Three Months Six Months Ended
Ended
June 30, June 30,
-----------------------------------
2007 2006 2007 2006
-----------------------------------
Operating revenues:
Wireline $59,906 $58,125 $118,737 $116,259
Wireless 33,326 26,946 65,068 51,454
-----------------------------------
Total operating revenues 93,232 85,071 183,805 167,713
Operating expenses:
Wireline (exclusive of
depreciation and amortization) 44,516 41,537 88,365 83,642
Wireless (exclusive of
depreciation and amortization) 17,839 14,931 33,699 28,745
Depreciation and amortization 16,408 16,034 32,696 33,131
Loss on disposal of assets, net 21 383 24 1,105
-----------------------------------
Total operating expenses 78,784 72,885 154,784 146,623
-----------------------------------
Operating income 14,448 12,186 29,021 21,090
Other income and expense:
Interest expense (7,715) (7,643) (15,325) (15,617)
Loss on extinguishment of debt - - - (9,650)
Interest income 506 402 1,035 794
Other (72) 8,561 8 8,517
-----------------------------------
Total other income and expense (7,281) 1,320 (14,282) (15,956)
-----------------------------------
Income before income tax expense 7,167 13,506 14,739 5,134
Income tax expense (98) - (105) -
-----------------------------------
Net income $ 7,069 $13,506 $ 14,634 $ 5,134
===================================
Net income per share:
Basic $ 0.17 $ 0.32 $ 0.34 $ 0.12
===================================
Diluted $ 0.16 $ 0.31 $ 0.33 $ 0.12
===================================
Weighted average shares
outstanding:
Basic 42,747 41,989 42,566 41,891
-----------------------------------
Diluted 44,145 43,342 44,061 43,164
-----------------------------------
Schedule 2
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands Except Per Share Amounts)
Unaudited
June 30, December
31,
Assets 2007 2006
----------------------
Current assets:
Cash and cash equivalents $ 38,275 $ 36,860
Restricted cash 2,559 1,700
Accounts receivable-trade, net of allowance
of $8,467 and $7,434 40,188 39,801
Materials and supplies 10,073 7,977
Prepayments and other current assets 4,090 3,514
----------------------
Total current assets 95,185 89,852
Property, plant and equipment 1,184,583 1,164,450
Less: accumulated depreciation and amortization 796,559 767,907
----------------------
Property, plant and equipment, net 388,024 396,543
Goodwill 38,403 38,403
Intangible Assets 21,604 21,604
Debt issuance costs 8,494 9,437
Deferred charges and other assets 9,885 6,482
----------------------
Total assets $ 561,595 $ 562,321
======================
Liabilities and Stockholders' Equity (Deficit)
Current liabilities:
Current portion of long-term obligations $ 977 $ 1,025
Accounts payable-affiliate - 2,942
Accounts payable, accrued and other current
liabilities 61,782 62,307
Advance billings and customer deposits 9,966 10,667
----------------------
Total current liabilities 72,725 76,941
Long-term obligations, net of current portion 436,664 437,188
Other deferred credits and long-term liabilities 74,730 72,881
----------------------
Total liabilities 584,119 587,010
----------------------
Stockholders' equity (deficit):
Common stock, $.01 par value; 145,000
authorized 428 423
Paid in capital in excess of par value 271,743 288,055
Accumulated deficit (300,099) (314,733)
Accumulated other comprehensive income (loss) 5,404 1,566
----------------------
Total stockholders' equity (deficit) (22,524) (24,689)
----------------------
Commitments and contingencies
Total liabilities and stockholders' equity
(deficit) $ 561,595 $ 562,321
======================
Schedule 3
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in Thousands)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------------------
2007 2006 2007 2006
-------------------------------------
Cash Flows from Operating
Activities:
Net income $ 7,069 $ 13,506 $ 14,634 $ 5,134
Adjustments to reconcile net
income to net cash provided
(used) by operating
activities:
Depreciation and
amortization 16,408 16,034 32,696 33,131
Loss on disposal of assets,
net 21 383 24 1,105
Gain on sale of long-term
investment - (6,685) (152) (6,685)
Amortization of debt
issuance costs and
original issue discount 479 479 952 4,213
Stock based compensation 1,566 1,647 3,248 3,223
Other non-cash expenses 263 - 263 -
Changes in components of
assets and liabilities:
Accounts receivable and
other current assets (5,499) (4,959) (3,059) (544)
Accounts payable and
other current
liabilities (971) 2,310 (3,476) 1,772
Deferred charges and
other assets 16 570 162 44
Other deferred credits (551) (617) 1,263 (3,534)
-------------------------------------
Net cash provided by operating
activities 18,801 22,668 46,555 37,859
Cash Flows from Investing
Activities:
Investment in construction
and capital expenditures (13,544) (12,243) (23,564) (20,658)
Change in unsettled
construction and capital
expenditures 6,334 1,040 (808) (6,279)
Purchase of short-term
investments (18,815) (12,425) (36,040) (19,925)
Proceeds from sale of
short-term investments 18,815 14,425 36,040 30,450
Proceeds from liquidation
of long-term investments - 7,663 162 7,663
Placement of funds in
restricted account (997) - (2,979) -
Release of funds from
escrow account 519 965 2,120 965
-------------------------------------
Net cash used by investing
activities (7,688) (575) (25,069) (7,784)
Cash Flows from Financing
Activities:
Payments of long-term debt (214) (193) (632) (61,463)
Proceeds from the issuance
of long-term debt - - - 52,900
Debt issuance costs - - - (1,349)
Payment of cash dividend on
common stock (9,184) (9,020) (18,283) (17,356)
Issuance of common stock 874 564 (1,156) 439
-------------------------------------
Net cash used by financing
activities (8,524) (8,649) (20,071) (26,829)
Increase in cash and cash
equivalents 2,589 13,444 1,415 3,246
Cash and cash equivalents,
beginning of period 35,686 18,679 36,860 28,877
-------------------------------------
Cash and cash equivalents, end of
period $ 38,275 $ 32,123 $ 38,275 $ 32,123
=====================================
Supplemental Cash Flow Data:
Interest paid $ 7,017 $ 6,961 $ 14,285 $ 16,953
Income taxes paid, net of
refund 219 - 353 -
Supplemental Noncash
Transactions:
Property acquired under
capital leases and mortgages $ - $ - $ 51 $ -
Dividend declared, but not
paid 21 28 9,210 9,060
Schedule 4
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
SCHEDULE OF WIRELINE REVENUES AND EXPENSES
(Unaudited, in Thousands)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -----------------
2007 2006 2007 2006
------------------ -----------------
Local network service $ 19,611 $ 20,159 $ 39,442 $ 40,056
Network access 22,821 22,093 44,558 46,119
Deregulated and other 5,058 5,234 10,820 9,586
------------------ -----------------
Local telephone 47,490 47,486 94,820 95,761
Internet 7,710 6,089 14,782 12,075
Interexchange 4,706 4,550 9,135 8,423
------------------ -----------------
Total wireline revenue $ 59,906 $ 58,125 $118,737 $116,259
================== =================
Local telephone $ 32,198 $ 31,519 $ 64,908 $ 63,628
Internet 8,726 6,696 16,659 14,588
Interexchange 3,592 3,322 6,798 5,426
------------------ -----------------
Total wireline expense (a) $ 44,516 $ 41,537 $ 88,365 $ 83,642
================== =================
(a) Expenses are shown exclusive of depreciation and amortization.
Schedule 5
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
SCHEDULE OF EBITDA CALCULATION
(Unaudited, in Thousands)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2007 2006 2007 2006
------------------ ------------------
Net cash provided by operating
activities $ 18,801 $ 22,668 $ 46,555 $ 37,859
Adjustments to reconcile net
income to net cash (provided)
used by operating activities:
Depreciation and
amortization (16,408) (16,034) (32,696) (33,131)
Loss on disposal of assets,
net (21) (383) (24) (1,105)
Gain on sale of long-term
investment - 6,685 152 6,685
Amortization of debt
issuance costs and original
issue discount (479) (479) (952) (4,213)
Stock based compensation (1,566) (1,647) (3,248) (3,223)
Other non-cash expenses (263) - (263) -
Changes in components of
assets and liabilities:
Accounts receivable and
other current assets 5,499 4,959 3,059 544
Accounts payable and other
current liabilities 971 (2,310) 3,476 (1,772)
Deferred charges and other
assets (16) (570) (162) (44)
Other deferred credits 551 617 (1,263) 3,534
------------------ ------------------
Net income $ 7,069 $ 13,506 $ 14,634 $ 5,134
Add (subtract):
Interest expense 7,715 7,643 15,325 15,617
Loss on extinguishment of
debt - - - 9,650
Interest income (506) (402) (1,035) (794)
Depreciation and
amortization 16,408 16,034 32,696 33,131
Loss on disposal of assets,
net 21 383 24 1,105
Gain on Crest asset purchase - (1,979) - (1,979)
Gain on sale of long-term
investments - (6,685) (152) (6,685)
Income tax expense 98 - 105 -
Stock based compensation 1,566 1,647 3,248 3,223
------------------ ------------------
EBITDA $ 32,371 $ 30,147 $ 64,845 $ 58,402
================== ==================
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
(Unaudited, in Thousands)
Three Months Ended
June 30, 2007
-------------------------------------
As Stock Based Adjusted
reported Compensation
on
Schedule
1
-------------------------------------
Operating expenses:
Wireline (exclusive of
depreciation and
amortization) $ 44,516 $ (1,417)$ 43,099
Wireless (exclusive of
depreciation and
amortization) 17,839 (149) 17,690
Depreciation and amortization 16,408 - 16,408
Loss on disposal of assets,
net 21 - 21
---------------------------------
Total operating expenses $ 78,784 $ (1,566)$ 77,218
=================================
Six Months Ended
June 30, 2007
-------------------------------------
As Stock Based Adjusted
reported Compensation
on
Schedule
1
-------------------------------------
Operating expenses:
Wireline (exclusive of
depreciation and
amortization) $ 88,365 $ (2,924)$ 85,441
Wireless (exclusive of
depreciation and
amortization) 33,699 (324) 33,375
Depreciation and amortization 32,696 - 32,696
Loss on disposal of assets,
net 24 - 24
---------------------------------
Total operating expenses $154,784 $ (3,248)$151,536
=================================
Three Months Ended
June 30, 2006
-------------------------------------
As Stock Based Adjusted
reported Compensation
on
Schedule
1
-------------------------------------
Operating expenses:
Wireline (exclusive of
depreciation and
amortization) $ 41,537 $ (1,489) $ 40,048
Wireless (exclusive of
depreciation and
amortization) 14,931 (158) 14,773
Depreciation and amortization 16,034 - 16,034
Loss on disposal of assets,
net 383 - 383
-------------------------------------
Total operating expenses $ 72,885 $ (1,647) $ 71,238
=====================================
Six Months Ended
June 30, 2006
-------------------------------------
As Stock Based Adjusted
reported Compensation
on
Schedule
1
-------------------------------------
Operating expenses:
Wireline (exclusive of
depreciation and
amortization) $ 83,642 $ (2,915) $ 80,727
Wireless (exclusive of
depreciation and
amortization) 28,745 (308) 28,437
Depreciation and amortization 33,131 - 33,131
Loss on disposal of assets,
net 1,105 - 1,105
-------------------------------------
Total operating expenses $146,623 $ (3,223) $143,400
=====================================
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
(Unaudited, in Thousands)
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2007 2006 2007 2006
-------------------- -----------------
Cash outlay for construction and
capital expenditures $ 13,544 $ 12,243 $ 23,564 $20,658
Non-cash capital lease - - 51 -
-------------------- -----------------
Investment in construction and
capital $ 13,544 $ 12,243 $ 23,615 $20,658
==================== =================
Growth 3,494 6,650 5,354 10,716
Maintenance and other 10,050 5,593 18,261 9,942
-------------------- -----------------
Investment in construction and
capital $ 13,544 $ 12,243 $ 23,615 $20,658
==================== =================
Schedule 8A
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
KEY OPERATING STATISTICS
(Unaudited)
June 30, March 31, June 30,
2007 2007 2006
----------------------------
Local telephone:
Retail access lines 191,767 193,851 197,031
Resale access lines 9,989 10,573 12,504
UNE lines 36,822 41,453 53,231
----------------------------
Total local telephone access lines 238,578 245,877 262,766
============================
Average local telephone access lines
for the quarter 242,228 249,272 264,124
Average monthly local telephone
revenue per line for the quarter $ 65.35 $ 63.29 $ 59.93
Quarterly growth rate in local
telephone access lines -3.0% -2.7% -1.0%
Wireless:
Covered population 556,118 542,193 533,930
Post-paid wireless subscribers 132,062 128,247 115,770
Average post-paid wireless
subscribers 130,155 126,656 113,474
Average monthly churn for the
quarter (b) 1.3% 1.3% 1.2%
Average monthly revenue per
subscriber for the quarter (c) $ 64.11 $ 63.11 $ 58.85
Prepaid wireless subscribers 7,322 6,452 4,540
Resale wireless subscribers 2,539 2,812 3,582
Total wireless subscribers 141,923 137,511 123,892
Average subscribers for the
quarter 139,717 135,750 121,516
Average monthly churn for the
quarter (b) 1.4% 1.4% 1.4%
Penetration 25.5% 25.4% 23.2%
Average monthly revenue per
subscriber for the quarter (c) $ 61.62 $ 60.60 $ 56.51
Long Distance:
Long distance subscribers 64,684 65,043 60,556
Average subscribers for the quarter 64,864 64,519 59,554
Average monthly revenue per subscriber
for the quarter $ 24.18 $ 22.88 $ 25.47
Internet:
DSL subscribers 45,670 45,448 39,982
Dial-up subscribers 10,968 11,728 14,738
----------------------------
Total Internet subscribers 56,638 57,176 54,720
============================
Average subscribers for the quarter 56,907 56,917 54,373
Average monthly DSL & dial-up revenue
per subscriber for the quarter $ 29.53 $ 29.01 $ 29.09
(b) Prior year churn has been restated to negate the gross up of
installs and disconnects that were caused by certain account
changes. In prior periods, June 30, 2006 churn was reported at
1.6% and 1.7% for post-paid and total subscribers, respectively.
(c) CETC added $10.44 and $10.76 to postpaid wireless ARPU in the
second and first quarters of 2007, respectively and $9.66 in the
second quarter of 2006. CETC added $9.92 and $10.26 to total
wireless ARPU in the second and first quarters of 2007,
respectively and $9.32 in the second quarter of 2006.
Schedule 8B
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
KEY OPERATING STATISTICS
(Unaudited)
June 30, March 31,
Net
2007 2007 Movement
-----------------------------
Wireline retail relationships
Local telephone retail access lines 191,767 193,851 (2,084)
Interexchange subscribers 64,684 65,043 (359)
Internet subscribers 56,638 57,176 (538)
-----------------------------
313,089 316,070 (2,981)
Wireless retail relationships
Post-paid wireless subscribers 132,062 128,247 3,815
Prepaid wireless subscribers 7,322 6,452 870
-----------------------------
139,384 134,699 4,685
-----------------------------
Total retail relationships 452,473 450,769 1,704
=============================
CONTACT: Alaska Communications Systems
Director, Corporate Communications
Mary Gasperlin, 907-297-3000 (Media)
mary.gasperlin@acsalaska.com
or
Investor Relations, 907-564-7556 (Investors)
investors@acsalaska.com