CONSHOHOCKEN, Pa., Feb. 27 /PRNewswire-FirstCall/ -- UbiquiTel Inc.
(NASDAQ:UPCS), a PCS Affiliate of Sprint Nextel (NYSE:S), today
reported financial and operating results for the fourth quarter and
full year ended December 31, 2005. Highlights for the 4th quarter
and full year 2005: - Net income for the year ended December 31,
2005 was $47.7 million, or $0.49 per diluted share, compared to a
net loss of $(15.3) million, or $(0.16) per diluted share, for
2004. In the fourth quarter and year ended December 31, 2005, the
company incurred $2.6 million and $4.3 million, respectively, of
expense associated with litigation against Sprint Nextel. The
company also recognized a deferred income tax benefit of $32.1
million in the fourth quarter 2005 due to the elimination of the
deferred tax asset valuation allowance. Excluding the litigation
expense and income tax benefit, net income for the year ended
December 31, 2005 was $19.9 million, or $0.20 per diluted share. -
Adjusted EBITDA for the fourth quarter and year ended December 31,
2005 was $26.8 million and $110.5 million, respectively,
representing increases of 30% and 52% over the same periods of
2004. Excluding the above litigation expense, Adjusted EBITDA for
the fourth quarter and year ended December 31, 2005 was $29.5
million, reflecting a 43% year over year increase, and $114.9
million, reflecting a 58% year over year increase, respectively. -
Free cash flow for the fourth quarter and year ended December 31,
2005 was $24.2 million and $26.5 million, respectively, compared to
$11.7 million and $28.4 million in the same periods of 2004. -
Service revenues grew 9% and 15% in the fourth quarter 2005 and
year ended December 31, 2005, respectively. - The company added
approximately 13,600 net subscribers during the fourth quarter 2005
bringing total subscribers, excluding reseller subscribers, to
approximately 447,900. The company added approximately 17,900
reseller subscribers during the fourth quarter 2005, bringing total
reseller subscribers to 145,000. "UbiquiTel reached another
milestone in 2005 by generating our first full year of positive net
income. Through operating leverage and continued improvement to our
cost structure, Adjusted EBITDA margin, excluding Sprint Nextel
litigation expenses, expanded to 28% in 2005 from 21% in 2004,
exceeding the target we set at this time last year," said Donald A.
Harris, chairman and CEO of UbiquiTel Inc. Total revenues were
$107.8 million for the fourth quarter 2005, comprised of $73.2
million of subscriber revenues, $31.1 million of roaming and
wholesale revenues and $3.5 million of equipment revenues. Cost per
gross addition for the fourth quarter 2005 improved to $445 from
$505 in the same period a year ago. Operating income was $12.2
million for the quarter, representing a 129% increase from the
fourth quarter 2004. Net income for the fourth quarter 2005 was
$34.6 million, or $0.35 per diluted share, compared to a net loss
of $(1.4) million, or $(0.01) per diluted share, in the fourth
quarter 2004. Excluding the litigation expense and income tax
benefit described above, net income in the fourth quarter 2005 was
$5.1 million, or $0.05 per diluted share. For the full year 2005,
total revenues were $422.7 million, comprised of $281.6 million of
subscriber revenues, $125.6 million of roaming and wholesale
revenues and $15.5 million of equipment revenues. Subscriber
revenues grew 13% and roaming and wholesale revenues grew 22% in
2005. Operating income for 2005 was $56.3 million, representing a
189% increase from 2004. SUMMARY OF QUARTERLY OPERATING AND
FINANCIAL METRICS: Q4 2005 Q3 2005 Q4 2004 Net additions 13,600
10,700 15,100 Churn 2.7% 2.6% 2.9% Ending subscribers 447,900
434,300 398,500 Penetration-Covered POPs 5.4% 5.2% 5.0% Covered
POPs 8.3 million 8.3 million 7.9 million Reseller subscribers
145,000 127,100 98,600 ARPU $55 $56 $57 CPGA $445 $493 $505 CCPU
$42(1) $42(2) $43(3) Adjusted EBITDA $26.8 million(1) $29.9
million(2) $20.6 million(3) Capital expenditures $5.5 million $7.7
million $8.5 million Free cash flow $24.2 million $5.8 million
$11.7 million Minutes of use per subscriber 987 1,003 930 System
minutes 1,530 million 1,544 million 1,315 million Reseller minutes
94 million 93 million 78 million Roaming minutes-Inbound 328
million 361 million 318 million Roaming minutes- Outbound 196
million 201 million 170 million Roaming inbound to outbound ratio
1.7 to 1 1.8 to 1 1.9 to 1 (1) Includes approximately $2 per user,
or $2.6 million, of expense associated with litigation against
Sprint Nextel. (2) Includes approximately $2 per user, or $1.7
million, of expense associated with litigation against Sprint
Nextel. (3) Includes approximately $1 per user, or $1.2 million, of
non-recurring net adjustments. SUMMARY OF ANNUAL OPERATING AND
FINANCIAL METRICS: 2005 2004 Net additions 53,300 70,800 Churn 2.5%
2.9% Ending subscribers 447,900(1) 398,500 Penetration-Covered POPs
5.4% 5.0% Covered POPs 8.3 million 7.9 million Reseller subscribers
145,000(1) 98,600 ARPU $56 $57 CPGA $487 $471 CCPU $41(2) $43(3)
Adjusted EBITDA $110.5 million(2) $72.8 million(3) Capital
expenditures $43.3 million $27.0 million Free cash flow $26.5
million $28.4 million Minutes of use per subscriber 985 899 System
minutes 5,942 million 4,648 million Reseller minutes 371 million
184 million Roaming minutes-Inbound 1,337 million 1,164 million
Roaming minutes-Outbound 761 million 649 million Roaming inbound to
outbound ratio 1.8 to 1 1.8 to 1 (1) Reflects adjustment in the
second quarter 2005 to reclassify approximately 3,900 subscribers
to resellers. (2) Includes approximately $1 per user, or $4.3
million, of expense associated with litigation against Sprint
Nextel. (3) Includes approximately $1 per user, or $2.0 million, of
non-recurring net adjustments. BUSINESS OUTLOOK The table below
provides a range of selected financial guidance for 2006. A variety
of factors referenced elsewhere in this press release under
"Special Note Regarding Forward-Looking Statements" could cause
actual results to differ materially from this guidance. 2006
Guidance Low High Service revenues growth rate 8% 10% Adjusted
EBITDA growth rate* 20% 27% Capital expenditures $40.0 million
$50.0 million * Excludes Sprint Nextel litigation expense in both
2005 and 2006. Sprint Nextel Litigation Update In July 2005,
UbiquiTel filed in the Delaware Court of Chancery an action against
Nextel Communications, Inc., Sprint Corporation and various Sprint-
related entities, alleging that, among other things, following the
consummation of the Sprint-Nextel merger in 2005, Sprint would
breach its exclusivity and confidentiality obligations to UbiquiTel
under the company's written agreements with Sprint and that Nextel
improperly interfered with the company's exclusivity rights under
those agreements. The nine-day trial of UbiquiTel's claims, which
the Court consolidated with a similar case brought by iPCS
subsidiaries Horizon Personal Communications, Inc. and Bright
Personal Communications Services, LLC, occurred in January 2006.
The Vice Chancellor presiding over the actions has requested
post-trial briefs and has tentatively scheduled final arguments for
April 4, 2006. The Vice Chancellor will issue a ruling at some time
following the final arguments. Conference Call to be held February
28th at 10:30 a.m. ET UbiquiTel's management will conduct a
conference call on Tuesday, February 28, at 10:30 a.m., Eastern
Time, to discuss its results for the three months and year ended
December 31, 2005 and discuss selected guidance for 2006. Investors
and interested parties may listen to the call via a live webcast
accessible through the company's website,
http://www.ubiquitelpcs.com/. To listen, please register and
download audio software at the site at least 15 minutes prior to
the start of the call. The call may be accessed by dialing
866-203-3436 (domestic) or 617-213-8849 (international), passcode:
28817659. The webcast will be archived on the site, while a
telephone replay of the call will be available for 7 days beginning
at 12:30 p.m., Eastern Time, February 28, at 888-286-8010 or
617-801-6888, passcode: 91180733. About UbiquiTel Inc. UbiquiTel is
the exclusive provider of Sprint digital wireless mobility
communications network products and services under the Sprint brand
name to midsize markets in the Western and Midwestern United States
that include a population of approximately 10.8 million residents
and cover portions of California, Nevada, Washington, Idaho,
Wyoming, Utah, Indiana, Kentucky and Tennessee. Financial Measures
and Definitions of Terms Used UbiquiTel provides certain financial
measures that are calculated in accordance with accounting
principles generally accepted in the United States (GAAP) and
adjustments to GAAP (non-GAAP) to assess the company's financial
performance. In addition, the company uses certain non-financial
terms, such as churn, which are metrics used in the wireless
communications industry and are not measures of financial
performance under GAAP. The non-GAAP financial measures reflect
industry measures of liquidity, profitability or performance and
the non-financial metrics reflect industry conventions, both of
which are commonly used by the investment community for
comparability purposes. The reconciliation of the non-GAAP
financial measures with comparable measures under GAAP are included
in an attachment to this release. Because the company does not
predict special items that might occur in the future, and our
forecasts are developed at a level of detail different than that
used to prepare GAAP-based financial measures, the company does not
provide reconciliations to GAAP of its forward-looking financial
measures. The non- financial metrics and non-GAAP financial
measures used in this release include the following: Churn is the
monthly rate of customer turnover expressed as the percentage of
customers of the beginning customer base that both voluntarily and
involuntarily discontinued service during the period. Churn is
computed by dividing the number of customers that discontinued
service during the month, net of 30 day returns, by the beginning
customer base for the period. ARPU is average revenue per user and
summarizes the average monthly service revenue per customer,
excluding roaming and wholesale revenues. ARPU is computed by
dividing subscriber revenues by the average subscribers for the
period. The company believes ARPU is a useful measure to assist in
evaluating the company's past and forecasting its future subscriber
revenues. In addition, it provides a gauge to compare the company's
subscriber revenues to that of other wireless communications
providers, although other wireless communications providers may
include or exclude certain items from their calculations which may
make the comparison less meaningful. CPGA is cost per gross
addition and summarizes the average cost to acquire new customers
during the period. CPGA is computed by adding the statement of
operations components of selling and marketing and the cost of
products sold, and reducing that amount by the equipment revenue
recorded. The net result of these components is then divided by the
gross customers acquired during the period. The company believes
CPGA is a useful measure used to compare the company's average cost
to acquire a new subscriber to that of other wireless
communications providers, although other wireless communications
providers may include or exclude certain items from their
calculations which may make the comparison less meaningful. The
inclusion of cost of products sold net of the equipment revenues
earned is critical to the company's understanding of the costs to
the company of acquiring a new customer. CCPU is cash cost per user
and summarizes the average monthly cash costs to provide digital
wireless mobility communications services per customer. CCPU is
computed by dividing the sum of cost of service and operations and
general and administrative expenses by the average subscribers for
the period. The company's calculation of CCPU excludes
depreciation, amortization and accretion expenses. The company
believes CCPU is a useful measure used to compare the company's
cash cost of operations per customer to that of other wireless
communications providers, although other wireless communications
providers may include or exclude certain items from their
calculations which may make the comparison less meaningful.
Adjusted EBITDA represents net income (loss) before income tax
expense (benefit), gain on debt retirement, interest expense,
interest income, depreciation, amortization and accretion and
non-cash compensation expense. The company believes Adjusted EBITDA
is an important operating measure for comparability to other
wireless companies and it is not intended to represent the results
of the company's operations in accordance with GAAP. Adjusted
EBITDA should not be considered as a substitute for net income,
income from operations, net cash provided by operating activities
or any other operating or liquidity measure prepared in accordance
with GAAP. Additionally, the company's Adjusted EBITDA computation
may not be comparable to other similarly titled measures of other
companies. Adjusted EBITDA margin is calculated by dividing
Adjusted EBITDA by service revenues. Free cash flow summarizes the
cash flow from operating activities and capital expenditures and is
computed by adding net cash provided by operating activities,
capital expenditures and proceeds from disposal of equipment. The
company believes free cash flow is an important measure of
liquidity to meet the company's debt service requirements. SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS Statements contained in
this news release that are forward-looking statements are subject
to various risks and uncertainties. Such forward- looking
statements are made pursuant to the "safe-harbor" provisions of the
Private Securities Litigation Reform Act of 1995 and are made based
on management's current expectations or beliefs as well as
assumptions made by, and information currently available to,
management. A variety of factors could cause actual results to
differ materially from those anticipated in UbiquiTel's
forward-looking statements, including the following factors:
UbiquiTel's dependence on its affiliation with Sprint; the impact
of the Sprint-Nextel merger on UbiquiTel's affiliation with Sprint
as well as Sprint's competitiveness in the wireless industry; the
outcome of UbiquiTel's, and any other PCS affiliate of Sprint's,
litigation with Sprint concerning the Sprint-Nextel merger; changes
in Sprint's affiliation strategy as a result of the Sprint-Nextel
merger or any other merger involving Sprint Nextel; the
competitiveness of and changes in Sprint's pricing plans, products
and services; increased competition in UbiquiTel's markets; rates
of penetration in the wireless communications industry; the
potential to experience a high rate of customer turnover; customer
quality; potential declines in roaming and wholesale revenue;
UbiquiTel's reliance on the timeliness, accuracy and sufficiency of
financial and other data and information received from Sprint; the
ability of Sprint to provide back office, customer care and other
services; UbiquiTel's debt level; adequacy of bad debt and other
reserves; UbiquiTel's ability to manage anticipated growth and
rapid expansion; changes in population; changes or advances in
technology; effects of mergers and consolidations within the
wireless communications industry and unexpected announcements or
developments from others in the wireless communications industry;
and general market and economic conditions. Certain of these and
other applicable risks, cautionary statements and factors that
could cause actual results to differ from UbiquiTel's
forward-looking statements are included in UbiquiTel's filings with
the Securities and Exchange Commission ("SEC"), specifically in the
"Business-Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations" sections of its
Annual Report on Form 10-K for the fiscal year ended December 31,
2004, and in subsequent filings with the SEC. Except as otherwise
required under federal securities laws and the rules and
regulations of the SEC, the company does not have any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, changes in
assumptions or otherwise. -Financial Tables Follow- UbiquiTel Inc.
and Subsidiaries Consolidated Balance Sheets (In thousands, except
per share data) December 31, December 31, 2005 2004 ASSETS CURRENT
ASSETS: Cash and cash equivalents $121,127 $91,781 Accounts
receivable, net of allowance for doubtful accounts of $3,435 and
$3,358 at December 31, 2005 and December 31, 2004, respectively
30,082 22,609 Inventory, net 4,777 4,025 Prepaid expenses and other
assets 17,411 17,680 Deferred income taxes 20,290 - Total current
assets 193,687 136,095 PROPERTY AND EQUIPMENT, NET 244,163 243,679
CONSTRUCTION IN PROGRESS 2,169 1,867 DEFERRED FINANCING COSTS, NET
9,184 10,868 GOODWILL 38,138 38,138 INTANGIBLES, NET 60,261 64,565
DEFERRED INCOME TAXES 13,038 - OTHER LONG-TERM ASSETS 2,223 2,595
Total assets $562,863 $497,807 LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES: Current maturities of long-term debt $240 $223
Accounts payable 11,062 3,124 Accrued expenses 18,230 18,824
Accrued compensation and benefits 4,770 4,591 Interest payable
13,825 13,825 Taxes payable 2,677 2,672 Deferred revenue 12,455
12,274 Other 3,165 1,501 Total current liabilities 66,424 57,034
LONG-TERM LIABILITIES, EXCLUDING CURRENT MATURITIES 423,475 423,893
OTHER LONG-TERM LIABILITIES 11,357 11,462 Total long-term
liabilities 434,832 435,355 Total liabilities 501,256 492,389
COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Preferred
stock, par value $0.001; 10,000 shares authorized; 0 shares issued
and outstanding at December 31, 2005 and December 31, 2004 - -
Common stock, par value $0.0005; 240,000 shares authorized; 94,209
and 93,016 shares issued and outstanding at December 31, 2005 and
December 31, 2004, respectively 47 46 Additional paid-in-capital
312,305 303,830 Accumulated deficit (250,745) (298,458) Total
stockholders' equity 61,607 5,418 Total liabilities and
stockholders' equity $562,863 $497,807 UbiquiTel Inc. and
Subsidiaries Consolidated Statements of Operations (In thousands,
except per share data) Three Months Ended Year Ended December 31,
December 31, 2005 2004 2005 2004 REVENUES: Subscriber revenues
$73,190 $66,154 $281,622 $250,034 Roaming and wholesale revenues
31,092 29,445 125,649 102,920 Service revenues 104,282 95,599
407,271 352,954 Equipment revenues 3,558 2,705 15,456 13,089 Total
revenues 107,840 98,304 422,727 366,043 COSTS AND EXPENSES: Cost of
service and operations (exclusive of depreciation as shown
separately below) 48,603 45,750 185,384 170,265 Cost of products
sold 8,107 9,841 36,166 38,314 Selling and marketing 17,197 17,524
67,450 67,485 General and administrative 7,093 4,594 23,197 17,185
Non-cash compensation expense 1,514 3,371 2,906 3,371 Depreciation,
amortization and accretion 13,137 11,909 51,312 49,913 Total costs
and expenses 95,651 92,989 366,415 346,533 OPERATING INCOME 12,189
5,315 56,312 19,510 INTEREST INCOME 1,118 396 3,110 877 INTEREST
EXPENSE (10,825) (10,817) (43,469) (40,070) GAIN ON DEBT
RETIREMENTS - 3,837 40 4,947 INCOME (LOSS) BEFORE INCOME TAXES
2,482 (1,269) 15,993 (14,736) INCOME TAX BENEFIT (EXPENSE) 32,161
(84) 31,720 (561) NET INCOME (LOSS) $34,643 $(1,353) $47,713
$(15,297) NET INCOME (LOSS) PER COMMON SHARE: BASIC $0.37 $(0.01)
$0.51 $(0.16) DILUTED $0.35 $(0.01) $0.49 $(0.16) WEIGHTED AVERAGE
SHARES OUTSTANDING: BASIC 94,109 92,935 93,576 92,761 DILUTED
98,058 92,935 97,582 92,761 UbiquiTel Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (In thousands) Year
Ended December 31, 2005 2004 CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $47,713 $(15,297) Adjustments to reconcile net
income (loss) to net cash provided by operating activities:
Amortization of deferred financing costs 1,776 1,497 Amortization
of debt (premium) discount (124) 823 Amortization of intangible
assets 4,304 4,304 Depreciation and accretion 47,008 45,609
Interest accrued on discount notes - 9,749 Non-cash compensation
from stock options granted to employees 2,906 3,371 Deferred income
taxes (32,055) 316 Gain on disposal of equipment (421) (308) Gain
on debt retirements (40) (4,947) Changes in operating assets and
liabilities exclusive of capital expenditures, net (1,252) 10,274
Net cash provided by operating activities 69,815 55,391 CASH FLOWS
FROM INVESTING ACTIVITIES: Capital expenditures (43,333) (26,984)
Proceeds from disposal of equipment 5 - Change in restricted cash -
1,137 Net cash used in investing activities (43,328) (25,847) CASH
FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of 9.875%
senior notes - 420,552 Repayments under senior secured credit
facility - (230,000) Repayment of 14% Series B senior discount
notes - (12,478) Purchases of 14% senior discount notes and 14%
senior subordinated discount notes (14) (155,194) Financing costs
(92) (12,396) Change in book cash overdraft - (5,671) Proceeds from
issuance of common stock 436 262 Proceeds from exercise of stock
options and warrants 2,801 420 Repayment of other long-term debt
(223) (305) Repurchase of common stock (49) (178) Net cash provided
by financing activities 2,859 5,012 NET INCREASE IN CASH AND CASH
EQUIVALENTS 29,346 34,556 CASH AND CASH EQUIVALENTS, beginning of
period 91,781 57,225 CASH AND CASH EQUIVALENTS, end of period
$121,127 $91,781 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest $41,809 $17,605 Cash paid for income taxes
361 320 SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITY:
Network equipment acquired but not yet paid $4,488 $- SUPPLEMENTAL
DISCLOSURE OF NON-CASH FINANCING ACTIVITY: Tax benefits from
stock-based employee compensation plan $2,382 $- UbiquiTel Inc. and
Subsidiaries Reconciliation of Adjusted EBITDA and Non-GAAP
Financial Measures (Unaudited) Three Months Ended Year Ended
December 31, December 31, 2005 2004 2005 2004 ADJUSTED EBITDA: Net
income (loss) $34,643,000 $(1,353,000) $47,713,000 $(15,297,000)
Income tax expense (benefit) (32,161,000) 84,000 (31,720,000)
561,000 Gain on debt retirement - (3,837,000) (40,000) (4,947,000)
Interest expense 10,825,000 10,817,000 43,469,000 40,070,000
Interest income (1,118,000) (396,000) (3,110,000) (877,000)
Depreciation, amortization and accretion 13,137,000 11,909,000
51,312,000 49,913,000 Non-cash compensation expense 1,514,000
3,371,000 2,906,000 3,371,000 Adjusted EBITDA 26,840,000 20,595,000
110,530,000 72,794,000 Sprint Nextel litigation expense 2,642,000 -
4,368,000 - Adjusted EBITDA excluding Sprint Nextel litigation
expense $29,482,000 $20,595,000 $114,898,000 $72,794,000 AVERAGE
REVENUE PER USER (ARPU): Subscriber revenues $73,190,000
$66,154,000 $281,622,000 $250,034,000 Average subscribers 440,322
389,390 422,455 365,120 ARPU $55 $57 $56 $57 CASH COST PER USER
(CCPU): Cost of service and operations $48,603,000 $45,750,000
$185,384,000 $170,265,000 Add: General and administrative 7,093,000
4,594,000 23,197,000 17,185,000 Total cash costs 55,696,000
50,344,000 208,581,000 187,450,000 Sprint Nextel litigation expense
(2,642,000) - (4,368,000) - Total cash costs excluding Sprint
Nextel litigation expense $53,054,000 $50,344,000 $204,213,000
$187,450,000 Average subscribers 440,322 389,390 422,455 365,120
CCPU $42 $43 $41 $43 Sprint Nextel litigation expense (2) - (1) -
CCPU excluding Sprint Nextel litigation expense $40 $43 $40 $43
COST PER GROSS ADDITION (CPGA): Selling and marketing $17,197,000
$17,524,000 $67,450,000 $67,485,000 Add: Cost of products sold
8,107,000 9,841,000 36,166,000 38,314,000 Less: Equipment revenue
(3,558,000) (2,705,000) (15,456,000) (13,089,000) Total cost of
gross additions $21,746,000 $24,660,000 $88,160,000 $92,710,000
Gross additions 48,900 48,800 181,200 196,600 CPGA $445 $505 $487
$471 FREE CASH FLOW: Net cash provided by operating activities
$29,758,000 $20,116,000 $69,815,000 $55,391,000 Capital
expenditures (5,524,000) (8,462,000) (43,333,000) (26,984,000)
Proceeds from disposal of equipment - - 5,000 - Free cash flow
$24,234,000 $11,654,000 $26,487,000 $28,407,000 First Call Analyst:
FCMN Contact: bdegaray@ubiquitelpcs.com DATASOURCE: UbiquiTel Inc.
CONTACT: Brighid de Garay of UbiquiTel Inc., +1-610-832-3311, or
+1-610-453-7495 Web site: http://www.ubiquitelpcs.com/
Copyright
Ubiquitel (NASDAQ:UPCS)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Ubiquitel (NASDAQ:UPCS)
Historical Stock Chart
Von Jun 2023 bis Jun 2024