NTELOS Holdings Corp. Reports Fourth Quarter and Year-End 2015 Results

- Acquisition by Shentel on Schedule to Close After Receipt of FCC Approval

Mar 11, 2016, 19:37 ET from NTELOS Holdings Corp.

WAYNESBORO, Va., March 11, 2016 /PRNewswire/ -- NTELOS Holdings Corp. (NASDAQ: NTLS) ("nTelos" or the "Company") announced today operating and financial results for its fourth quarter and year ended December 31, 2015.

On August 10, 2015, the Company entered into a definitive agreement to be acquired by Shenandoah Telecommunications Company ("Shentel", NASDAQ: SHEN) for $9.25 in cash per share.  The proposed acquisition was approved by the Company's shareholders and has received all necessary regulatory approvals from federal and state regulatory bodies, except for approval by the Federal Communications Commission ("FCC"). The Company expects the proposed acquisition by Shentel to close as soon as practical once FCC approval is received.  For additional information regarding the transaction and closing conditions, please see the Company's filings with the Securities and Exchange Commission ("SEC"), including the definitive proxy statement filed with the SEC on October 13, 2015. 

The "Highlights" and "Subscriber Update" sections below represent results of the Company's continuing operations, with additional and reconciling information included in the supplemental schedules provided.

Highlights

  • Revenues were $87.6 million for the fourth quarter 2015, compared to $96.7 million for the fourth quarter 2014. Revenues for the year 2015 were $362.6 million, up slightly as compared to $360.1 million for the year 2014;
  • Adjusted EBITDA, excluding discontinued operations, was $18.2 million for the fourth quarter 2015, compared to $24.6 million for the fourth quarter 2014. Adjusted EBITDA for the year 2015 was $96.2 million, compared to $108.6 million for the year 2014;
  • Net subscriber additions for year 2015 were 20,000, as compared to 14,600 for the prior year;
  • Approximately 40% of postpay subscribers were on Equipment Installment Plans at year end 2015; and
  • Approximately 70% of covered POPs have access to our LTE network. 

Subscriber Update

Total Subscribers

  • Total subscribers were 302,000 as of December 31, 2015, compared to 300,200 for the third quarter 2015 and 282,100 for the fourth quarter 2014;
  • Total subscriber gross additions for the fourth quarter 2015 were 27,100, compared to 25,500 for the third quarter 2015 and 28,300 for the fourth quarter 2014. Total subscriber net additions for the fourth quarter 2015 were 1,900, compared to 2,700 for the third quarter 2015 and 5,000 for the fourth quarter 2014; and
  • Total subscriber gross additions for the year 2015 were 105,800, compared to 100,400 for the year 2014. Total subscriber net additions for the year 2015 were 20,000, compared to 14,600 for the year 2014.

Postpay Subscribers

  • Postpay subscriber gross additions for the fourth quarter 2015 were 16,900, compared to 15,400 for the third quarter 2015 and 18,600 for the fourth quarter 2014; 
  • Net postpay subscriber additions were 1,600 for the fourth quarter 2015, compared to 2,100 for the third quarter 2015 and 4,700 for the fourth quarter 2014;
  • Postpay churn for the fourth quarter 2015 was 2.2%, compared to 1.9% for third quarter 2015 and 2.2% for the fourth quarter 2014;
  • ABPU was $57.83 for the fourth quarter 2015, compared to $58.29 for the third quarter 2015 and $59.35 for the fourth quarter 2014; and
  • As of December 31, 2015, total postpay subscribers were 233,300.

Prepay Subscribers

  • Prepay subscriber gross additions for the fourth quarter 2015 were 10,200, compared to 10,100 for the third quarter 2015 and 9,700 for the fourth quarter 2014;
  • Net prepay subscriber additions were 300 for the fourth quarter 2015, compared to 600 for the third quarter 2015 and 300 for the fourth quarter 2014;
  • Prepay churn for the fourth quarter 2015 was 4.8%, compared to 4.6% for the third quarter 2015 and 5.0% for the fourth quarter 2014; and
  • As of December 31, 2015, total prepay subscribers were 68,700.

Net Income

Net income (loss) of nTelos, after net income attributable to noncontrolling interests, was $(19.6) million, or $(0.92) per basic share, for the fourth quarter 2015, compared to $(56.2) million, or $(2.66) per basic share, for the fourth quarter 2014.

Liquidity

Total cash, including both restricted and unrestricted cash, at the end of the fourth quarter 2015 was $74.9 million, compared to $75.7 million at the end of the fourth quarter 2014.  

Eastern Markets Commercial Wind Down Completion

In the fourth quarter of 2014, the Company announced a strategic refocus of its business operations on its western Virginia and West Virginia markets ("Western Markets" or "Markets"). On November 15, 2015, the Company completed the wind down of commercial operations in its Eastern Markets.

As a result of no longer providing service in the Eastern Markets, certain assets, liabilities and results of operations are now being reported as Discontinued Operations. Accordingly, the Company has recast the prior period results to be comparable with the current Discontinued Operations presentation.

Business Outlook

As a result of the announcement that the Company has entered into a definitive agreement to be acquired by Shentel, the Company no longer provides operating or financial guidance.

Conference Call

As a result of the announcement that the Company has entered into a definitive agreement to be acquired by Shentel, the Company will not host a fourth quarter and full year 2015 conference call and webcast.

Non-GAAP Measures

Adjusted EBITDA is defined as net income attributable to NTELOS Holdings Corp. before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, transaction related costs, restructuring and asset impairment charges, gain/loss on sale or disposal of assets and derivatives, net income attributable to noncontrolling interests, other expenses/income, equity-based compensation charges, separation charges, secondary offering costs, adjustments for impact of recognizing deferred gain associated with towers sold to Grain Management  and adjustments for impact of recognizing a portion of the billed SNA contract revenues on a straight line basis.

ABPU, or average billings per user, is computed by adding average monthly postpaid service billings to users and equipment installment plan (EIP) billings divided by the average number of postpaid users during the period, further divided by the number of months in the period. NTELOS believes average postpaid customer billings per user is indicative of estimated cash collection, including equipment installments, from customers each month.

Adjusted EBITDA is a key metric used by investors to determine if the Company is generating sufficient cash flows to continue to produce shareholder value and provide liquidity for future growth. ABPU provides management with useful information concerning the appeal of the Company's postpay rate plans and service offerings and the Company's performance in attracting and retaining high value customers.

Adjusted EBITDA and ABPU are non-GAAP financial performance measures. They should not be considered in isolation or as an alternative to measures determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Please refer to the exhibits and materials posted on the Company's website for a reconciliation of these non-GAAP financial performance measures to the most comparable measures reported in accordance with GAAP and for a discussion of the presentation, comparability and use of such financial performance measures.

About NTELOS

NTELOS Holdings Corp. (NTLS), operating through its subsidiaries as "nTelos Wireless," is headquartered in Waynesboro, VA, and provides high-speed, dependable nationwide voice and data coverage for approximately 302,000 retail subscribers based in its Western Markets, comprised of western Virginia, West Virginia and portions of Maryland, North Carolina, Pennsylvania, Ohio and Kentucky. The Company's licensed territories in the Western Markets have a total population of approximately 4.4 million residents, of which its wireless network covers approximately 3.1 million residents. The Company is also the exclusive wholesale provider of wireless network services to Sprint Corporation in portions of its western Virginia and West Virginia territories for all Sprint wireless customers.

FORWARD-LOOKING STATEMENTS

This document may contain statements, estimates or projections that constitute "forward-looking statements" as defined under U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "plan," "estimate," "anticipate," "project," "will," "may" "should," and similar expressions identify forward-looking statements, which generally are not historical in nature.

Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. The forward-looking statements are or may be based on a series of projections and estimates and involve risks and uncertainties. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include, but are not limited to, those described in Part II, "Item 1A, Risk Factors" and elsewhere in this quarterly report and in our Annual Report on Form 10-K for the year ended December 31, 2015 and those described from time to time in our filings with the Securities and Exchange Commission.

Additionally, there are risks and uncertainties associated with the proposed acquisition by Shentel such as: (1) conditions to the closing of the merger, including, without limitation, the consummation of certain transactions between Shentel and Sprint, may not be satisfied and required regulatory approvals may not be obtained; (2) the merger may involve unexpected costs, liabilities or delays; (3) the risks related to disruption of management's attention from the Company's ongoing business operations due to the transaction, (4) the effect of the announcement of the merger on the ability of the Company to retain and hire key personnel and maintain relationships with its customers, suppliers and others with whom it does business, or on its operating results and business generally, (5) the outcome of any legal proceedings related to the merger; (6) the Company may be adversely affected by other economic, business, and/or competitive factors; (7) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (8) changes in the legal or regulatory environment; and (9) other risks to consummation of the merger, including the risk that the merger will not be consummated within the expected time period or at all. If the merger is consummated, the Company stockholders will cease to have any equity interest in the Company and will have no right to participate in its earnings and future growth.

Exhibits:

  • Consolidated Financial Statements
    • Condensed Consolidated Balance Sheets
    • Condensed Consolidated Statements of Operations

 

  • Consolidated Operating Metrics
    • Reconciliation of Net Income Attributable to NTELOS Holdings Corp. to Adjusted EBITDA
    • Key Metrics
    • ABPU Reconciliation – Postpay
    • Quarterly Reconciliation of Net Income Attributable to NTELOS Holdings Corp. to Adjusted EBITDA

 

NTELOS Holdings Corp.

Condensed Consolidated Balance Sheets

(Unaudited)

(Unaudited)

December 31, 2015

December 31, 2014

(In thousands)

ASSETS

Current Assets  

Cash

$                 72,687

$                 73,546

Restricted Cash

-

2,167

Accounts receivable, net

53,021

35,177

Inventories and supplies, net

13,345

17,978

Prepaid expenses

9,350

8,295

Tax refund receivable

24,986

3,883

Other current assets

1,132

617

Other current assets from discontinued operations

2,121

14,763

176,642

156,426

Assets Held for Sale

62

4,317

Restricted Cash

2,167

-

Securities and Investments

1,522

1,522

Property, Plant and Equipment, net 

326,260

266,054

Intangible Assets 

Goodwill

63,700

63,700

Radio spectrum licenses

44,933

44,933

Customer relationships and trademarks, net

4,292

5,084

Deferred Charges and Other Assets

18,941

16,919

Deferred Income Taxes

2,737

3,360

Other Noncurrent Assets from Discontinued Operations

1,733

85,402

Total Assets

$                642,989

$                647,717

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current Liabilities 

Current portion of long-term debt

$                   5,605

$                   5,728

Accounts payable

20,532

24,130

Advance billings and customer deposits

12,772

10,284

Accrued expenses and other current liabilities

18,003

20,255

Other current liabilities from discountinued operations

13,054

12,245

69,966

72,642

Long-Term Debt

514,634

519,491

Retirement Benefits

22,448

25,209

Deferred Income Taxes

12,272

1,685

Other Long-Term Liabilities

61,860

33,913

Other Long-Term Liabilities from Discontinued Operations

835

27,729

Stockholders' Equity (Deficit) 

(39,026)

(32,952)

Total Liabilities and Stockholders' Equity (Deficit)

$                642,989

$                647,717

 

 

 

NTELOS Holdings Corp.

Condensed Consolidated Statements of Operations

Three Months Ended

Twelve Months Ended

(Unaudited)

(Unaudited)

(In thousands, except per share amounts)

December 31, 2015

December 31, 2014

December 31, 2015

December 31, 2014

Operating Revenues  

Retail Revenue

$                  41,006

$                  44,428

$                168,674

$                177,295

Wholesale and other revenue

33,066

37,396

140,121

152,783

Equipment sales

13,523

14,828

53,845

30,056

Operating Revenues  

87,595

96,652

362,640

360,134

Operating Expenses 

Cost of services

23,019

20,959

89,413

80,763

Cost of equipment sold

23,709

24,721

87,753

73,044

Customer operations 

16,514

20,908

68,484

74,990

Corporate operations 

9,459

9,513

38,951

37,388

Restructuring

115

982

2,487

982

Depreciation and amortization     

15,205

14,758

55,102

55,225

Gain on sale of assets

-

-

(11,111)

-

88,021

91,841

331,079

322,392

Operating Income (loss)

(426)

4,811

31,561

37,742

Other Expense

Interest expense, net

(7,576)

(8,061)

(30,589)

(32,697)

Other income (expense), net

21

80

80

(1,115)

(7,555)

(7,981)

(30,509)

(33,812)

Income (Loss) before Income Taxes

(7,981)

(3,170)

1,052

3,930

Income Tax Expense (Benefit)

(2,941)

(1,395)

2,187

747

Net Income (Loss) from Continuing Operations

(5,040)

(1,775)

(1,135)

3,183

Loss from Discontinued Operations, Net of Tax

(14,441)

(54,128)

(9,903)

(55,349)

Net Loss

(19,481)

(55,903)

(11,038)

(52,166)

Net Income Attributable to Noncontrolling Interests

(168)

(305)

(1,168)

(1,468)

Net Loss Attributable to NTELOS Holdings Corp.

$      (19,649)

$      (56,208)

$      (12,206)

$       (53,634)

Earnings (Loss) per Share Attributable to NTELOS Holdings Corp

Basic Earnings (Loss) per common share from continuing operations

$         (0.24)

$         (0.10)

$         (0.10)

$           0.08

Basic Earnings (Loss) per common share from discontinued operations

(0.68)

(2.56)

(0.47)

(2.62)

Basic Earnings (Loss) per common share

$         (0.92)

$         (2.66)

$         (0.57)

$          (2.54)

Weighted average shares outstanding - basic 

21,307

21,146

21,257

21,111

Diluted Earnings (Loss) per common share from continuing operations

$         (0.24)

$         (0.10)

$         (0.10)

$           0.08

Diluted Earnings (Loss) per common share from discontinued operations

(0.68)

(2.56)

(0.47)

(2.62)

Diluted Earnings (Loss) per common share

$         (0.92)

$         (2.66)

$         (0.57)

$          (2.54)

Weighted average shares outstanding - diluted

21,307

21,146

21,257

21,111

Cash Dividends Declared per Share - Common Stock

$               -

$               -

$               -

$           0.84

 

 

 

NTELOS Holdings Corp.

Reconciliation of Net Income (Loss) Attributable to NTELOS Holdings Corp. to Adjusted EBITDA - (Consolidated)

(In thousands)

 Three Months Ended 

 Twelve Months Ended 

December 31, 2015

December 31, 2014

December 31, 2015

December 31, 2014

Net loss attributable to NTELOS Holdings Corp.

$              (19,649)

$              (56,208)

$              (12,206)

$              (53,634)

Net loss attributable to discontinued operations

(14,441)

(54,128)

(9,903)

(55,349)

Net income attributable to noncontrolling interests 

168

305

1,168

1,468

Net income (loss) attributable to continuing operations

$                (5,040)

$                (1,775)

$                (1,135)

$                 3,183

Interest expense 

7,576

8,061

30,589

32,697

Income tax (benefit)

(2,941)

(1,395)

2,187

747

Other expense (income), net

(21)

(80)

(80)

1,115

Operating income (loss)

$                   (426)

$                 4,811

$               31,561

$               37,742

Depreciation and amortization     

15,205

14,758

55,102

55,225

Restructuring

115

982

2,487

982

Gain on sale of assets

-

-

(11,111)

-

Accretion of asset retirement obligations

275

241

1,209

878

Adjusted EBITDA attributable to discontinued operations

(1,178)

6,781

11,487

23,884

Equity-based compensation

792

731

3,428

2,272

SNA straight-line adjustment ¹

2,315

3,065

11,010

8,173

Other2

(28)

2

2,481

3,279

Adjusted EBITDA

$               17,070

$               31,371

$             107,654

$             132,435

Reconciliation of Net Income (Loss) Attributable to Discontinued Operations to Adjusted EBITDA - (Discontinued Operations)

(In thousands)

 Three Months Ended 

 Twelve Months Ended 

December 31, 2015

December 31, 2014

December 31, 2015

December 31, 2014

Net loss attributable to discontinued operations

$              (14,441)

$              (54,128)

$                (9,903)

$              (55,349)

Net income attributable to noncontrolling interests 

-

-

-

-

Net loss  

$              (14,441)

$              (54,128)

$                (9,903)

$              (55,349)

Interest expense 

(27)

(10)

(127)

(2)

Income tax (benefit)

(9,327)

(34,016)

(6,880)

(33,641)

Operating income (loss)

$              (23,795)

$              (88,154)

$              (16,910)

$              (88,992)

Depreciation and amortization     

1,497

4,232

4,999

21,235

Restructuring

20,965

2,681

26,830

2,681

Gain on sale of assets

-

-

(5,637)

-

Asset Impairment

-

87,853

117

87,853

Accretion of asset retirement obligations

(132)

121

157

410

Equity-based compensation

4

47

20

697

Cell site spectrum rent

302

-

1,911

-

Other2

(19)

1

-

-

Adjusted EBITDA attributable to discontinued operations

$                (1,178)

$                 6,781

$               11,487

$               23,884

Reconciliation of Net Income (Loss) Attributable to NTELOS Holdings Corp. to Adjusted EBITDA - (Continuing Operations)

(In thousands)

 Three Months Ended 

 Twelve Months Ended 

December 31, 2015

December 31, 2014

December 31, 2015

December 31, 2014

Net income (loss) attributable to NTELOS Holdings Corp.

$              (19,649)

$              (56,208)

$              (12,206)

$              (53,634)

Net income (loss) attributable to discontinued operations

(14,441)

(54,128)

(9,903)

(55,349)

Net income attributable to noncontrolling interests 

168

305

1,168

1,468

Net income (loss)  

$                (5,040)

$                (1,775)

$                (1,135)

$                 3,183

Interest expense 

7,576

8,061

30,589

32,697

Income tax (benefit)

(2,941)

(1,395)

2,187

747

Other expense (income), net

(21)

(80)

(80)

1,115

Operating income (loss)

$                   (426)

$                 4,811

$               31,561

$               37,742

Depreciation and amortization     

15,205

14,758

55,102

55,225

Restructuring

115

982

2,487

982

Gain on sale of assets

-

-

(11,111)

-

Accretion of asset retirement obligations

275

241

1,209

878

Equity-based compensation

792

731

3,428

2,272

SNA straight-line adjustment ¹

2,315

3,065

11,010

8,173

Other2

(28)

2

2,481

3,279

Adjusted EBITDA attributable to continuing operations

$               18,248

$               24,590

$               96,167

$             108,551

Reconciliation of Adjusted EBITDA - (Continuing Operations) to previously reported Western Markets Adjusted EBITDA³

(In thousands)

 Three Months Ended 

 Twelve Months Ended 

December 31, 2015

December 31, 2014

December 31, 2015

December 31, 2014

Adjusted EBITDA attributable to continuing operations

$               18,248

$               24,590

$               96,167

$             108,551

Cost of services-previous allocation to Eastern Markets

-

195

-

583

Customer operations-previous allocation to Eastern Markets

-

2,612

-

10,507

Corporate operations-previous allocation to Eastern Markets

-

2,800

-

10,089

Adjusted EBITDA attributable to Western Markets³

$               18,248

$               30,197

$               96,167

$             129,730

1

Adjustment for impact of recognizing a portion of the billed SNA contract revenues on a straight line basis.

2

In 2014, Other includes legal and advisory fees related to new Sprint agreement and certain employee separation charges.

In 2015, Other includes certain non-recurring corporate costs and adjustments for recognizing a portion of the deferred gain

for towers sold to Grain Management, LLC.

Western Markets was previously defined as Holdings less Eastern Markets and, for 2014, included the allocation of

certain corporate expenses to the Eastern Markets.

 

 

 

NTELOS Holdings Corp. ¹

Key Metrics

Twelve Months Ended

Quarter Ended:

12/31/2014

3/31/2015

6/30/2015

9/30/2015

12/31/2015

12/31/2014

12/31/2015

Subscribers

Beginning Subscribers

277,100

282,100

290,100

297,500

300,200

273,600

282,100

Postpay

215,500

220,100

224,700

229,000

231,300

208,800

220,100

Prepay

61,600

62,000

65,400

68,500

68,900

64,800

62,000

Gross Additions

28,300

27,500

25,700

25,500

27,100

100,400

105,800

Postpay

18,600

15,700

14,300

15,400

16,900

63,400

62,300

Prepay

9,700

11,800

11,400

10,100

10,200

37,000

43,500

Disconnections

23,300

19,500

18,300

22,800

25,200

85,800

85,800

Postpay

13,900

11,100

10,000

13,300

15,300

50,500

49,700

Prepay

9,400

8,400

8,300

9,500

9,900

35,300

36,100

Net Additions (Losses)

5,000

8,000

7,400

2,700

1,900

14,600

20,000

Postpay

4,700

4,600

4,300

2,100

1,600

12,900

12,600

Prepay

300

3,400

3,100

600

300

1,700

7,400

Ending Subscribers ²

282,100

290,100

297,500

300,200

302,000

282,100

302,000

Postpay

220,100

224,700

229,000

231,300

233,300

220,100

233,300

Prepay

62,000

65,400

68,500

68,900

68,700

62,000

68,700

Churn, net

2.8%

2.3%

2.1%

2.5%

2.8%

2.6%

2.4%

Postpay

2.2%

1.7%

1.5%

1.9%

2.2%

2.0%

1.8%

Prepay

5.0%

4.4%

4.1%

4.6%

4.8%

4.6%

4.5%

Other Items

ABPU Statistics

ABPU

$      59.35

$      58.04

$      58.64

$      58.29

$      57.83

$      59.64

$      58.20

Strategic Network Alliance Revenues (000's) ³

Billed Revenue

$    38,329

$    36,627

$    37,887

$    35,408

$    33,453

$  153,754

$  143,375

Straight-Line Adjustment

(3,065)

(3,065)

(3,065)

(2,565)

(2,315)

(8,173)

(11,010)

Spectrum Lease Consideration

1,233

1,190

1,222

1,221

1,222

3,289

4,855

SNA Revenues

$    36,497

$    34,752

$    36,044

$    34,064

$    32,360

$  148,870

$  137,220

Network Statistics

Licensed Population (millions)

4.4

4.4

4.4

4.4

4.4

4.4

4.4

Covered Population (millions)

3.1

3.1

3.1

3.1

3.1

3.1

3.1

Total Cell Sites

1,004

1,006

1,007

1,006

1,008

1,004

1,008

LTE Cell Sites

135

202

274

382

489

135

489

LTE % of Total Cell Sites

13.4%

20.1%

27.2%

38.0%

48.5%

13.4%

48.5%

LTE % of Covered POPs

22.2%

43.6%

53.1%

64.7%

70.0%

22.2%

70.0%

1

Results exclude Discontinued Operations (Eastern Markets).

2

Ending subscribers may not foot due to customer transfers between product classes and rounding.

3

Effective 5/1/14, SNA Revenues include the impact of recognizing the fixed fee element of SNA contract revenues on a straightline basis, which is a reduction of

billed revenue, and the non-cash consideration attributable to spectrum leases.  We have recognized an equal charge for spectrum lease expense within 

cost of sales and services.

 

 

 

NTELOS Holdings Corp. ¹

ABPU Reconciliation - Postpay

 Three Months Ended 

 Twelve Months Ended 

Average Monthly Billings per User (ABPU) ²

 December 31, 2015 

 December 31, 2014 

 December 31, 2015 

 December 31, 2014 

(In thousands, except for subscribers and ABPU)

Retail Revenue

$                  41,006

$                  44,428

$               168,674

$               177,295

Plus:  EIP billings

5,418

351

15,685

364

Less:  prepay service revenues and other

(6,176)

(6,207)

(25,151)

(25,333)

 Total postpay billings 

$                  40,248

$                  38,572

$               159,208

$               152,326

Average number of postpay subscribers

232,000

216,600

228,000

212,800

 Postpay ABPU   

$                    57.83

$                    59.35

$                    58.20

$                    59.64

1

Results exclude Discontinued Operations (Eastern Markets).

2

Average monthly billings per user (ABPU) is computed by dividing postpay service revenues and equipment installment plan (EIP) billings per period by the average number of postpay subscribers during that period. ABPU as defined may not be similar to ABPU measures of other companies, is not a measurement under GAAP and should be considered in addition to, but not as a substitute for, the information contained in the Company's consolidated statements of operations. The Company closely monitors the effects of new rate plans and service offerings on ABPU in order to determine their effectiveness.  ABPU provides management useful information concerning the appeal of NTELOS rate plans and service offerings and the Company's performance in attracting and retaining high-value customers.

 

 

 

NTELOS Holdings Corp.

Reconciliation of Net Income (Loss) Attributable to NTELOS Holdings Corp. to Adjusted EBITDA - (Consolidated)

(In thousands)

 Three Months Ended 

 Twelve Months Ended 

December 31, 2015

September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

June 30, 2014

March 31, 2014

December 31, 2015

Qtrs Added

December 31, 2014

Qtr Added

Net income (loss) attributable to NTELOS Holdings Corp.

$              (19,649)

$                (8,963)

$                 1,610

$               14,796

$              (56,208)

$                    804

$                    484

$                 1,286

$              (12,206)

$              (12,206)

$              (53,634)

$              (53,634)

Net income (loss) attributable to discontinued operations

(14,441)

(4,498)

787

8,249

(54,128)

(92)

(457)

(672)

(9,903)

(9,903)

(55,349)

(55,349)

Net income attributable to noncontrolling interests 

168

237

272

491

305

352

375

436

1,168

1,168

1,468

1,468

Net income (loss) attributable to continuing operations

$                (5,040)

$                (4,228)

$                 1,095

$                 7,038

$                (1,775)

$                 1,248

$                 1,316

$                 2,394

$                (1,135)

$                (1,135)

$                 3,183

$                 3,183

Interest expense 

7,576

7,451

7,614

7,948

8,061

8,368

8,312

7,956

30,589

30,589

32,697

32,697

Income tax (benefit)

(2,941)

(577)

892

4,813

(1,395)

417

512

1,213

2,187

2,187

747

747

Other expense (income), net

(21)

(29)

(33)

3

(80)

31

92

1,072

(80)

(80)

1,115

1,115

Operating income (loss)

$                   (426)

$                 2,617

$                 9,568

$               19,802

$                 4,811

$               10,064

$               10,232

$               12,635

$               31,561

$               31,561

$               37,742

$               37,742

Depreciation and amortization     

15,205

13,851

13,129

12,917

14,758

13,715

13,774

12,978

55,102

55,102

55,225

55,225

Restructuring

115

90

677

1,605

982

-

-

-

2,487

2,487

982

982

Gain on sale of assets

-

-

(102)

(11,009)

-

-

-

-

(11,111)

(11,111)

-

-

Accretion of asset retirement obligations

275

319

315

300

241

179

235

223

1,209

1,209

878

878

Adjusted EBITDA attributable to discontinued operations

(1,178)

(1,048)

3,673

10,040

6,781

4,929

6,341

5,833

11,487

11,487

23,884

23,884

Equity-based compensation

792

876

900

860

731

(212)

866

887

3,428

3,428

2,272

2,272

SNA straight-line adjustment ¹

2,315

2,565

3,065

3,065

3,065

3,065

2,043

-

11,010

11,010

8,173

8,173

Other2

(28)

2,805

(96)

(200)

2

1,038

872

1,367

2,481

2,481

3,279

3,279

Adjusted EBITDA

$               17,070

$               22,075

$               31,129

$               37,380

$               31,371

$               32,778

$               34,363

$               33,923

$             107,654

$             107,654

$             132,435

$             132,435

Reconciliation of Net Income (Loss) Attributable to Discontinued Operations to Adjusted EBITDA - (Discontinued Operations)

(In thousands)

 Three Months Ended 

 Twelve Months Ended 

December 31, 2015

September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

June 30, 2014

March 31, 2014

December 31, 2015

December 31, 2015

December 31, 2014

December 31, 2014

Net income (loss) attributable to discontinued operations

$              (14,441)

$                (4,498)

$                    787

$                 8,249

$              (54,128)

$                     (92)

$                   (457)

$                   (672)

$                (9,903)

$                (9,903)

$              (55,349)

$              (55,349)

Net income attributable to noncontrolling interests 

-

-

-

-

-

-

-

-

-

-

-

-

Net income (loss)  

$              (14,441)

$                (4,498)

$                    787

$                 8,249

$              (54,128)

$                     (92)

$                   (457)

$                   (672)

$                (9,903)

$                (9,903)

$              (55,349)

$              (55,349)

Interest expense 

(27)

(29)

(41)

(30)

(10)

2

3

3

(127)

(127)

(2)

(2)

Income tax (benefit)

(9,327)

(2,946)

197

5,196

(34,016)

350

128

(103)

(6,880)

(6,880)

(33,641)

(33,641)

Operating income (loss)

$              (23,795)

$                (7,473)

$                    943

$               13,415

$              (88,154)

$                    260

$                   (326)

$                   (772)

$              (16,910)

$              (16,910)

$              (88,992)

$              (88,992)

Depreciation and amortization     

1,497

1,301

1,136

1,065

4,232

4,759

6,155

6,089

4,999

4,999

21,235

21,235

Restructuring

20,965

4,537

925

403

2,681

-

-

-

26,830

26,830

2,681

2,681

Gain on sale of assets

-

-

(699)

(4,938)

-

-

-

-

(5,637)

(5,637)

-

-

Asset Impairment

-

5

220

(108)

87,853

-

-

-

117

117

87,853

87,853

Accretion of asset retirement obligations

(132)

(47)

132

204

121

101

96

92

157

157

410

410

Equity-based compensation

4

7

10

(1)

47

(190)

416

424

20

20

697

697

Cell site spectrum rent

302

603

1,006

-

-

-

-

-

1,911

1,911

-

-

Other2

(19)

19

-

-

1

(1)

-

-

-

-

-

-

Adjusted EBITDA attributable to discontinued operations

$                (1,178)

$                (1,048)

$                 3,673

$               10,040

$                 6,781

$                 4,929

$                 6,341

$                 5,833

$               11,487

$               11,487

$               23,884

$               23,884

Reconciliation of Net Income (Loss) Attributable to NTELOS Holdings Corp. to Adjusted EBITDA - (Continuing Operations)

(In thousands)

 Three Months Ended 

 Twelve Months Ended 

December 31, 2015

September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

June 30, 2014

March 31, 2014

December 31, 2015

December 31, 2015

December 31, 2014

December 31, 2014

Net income (loss) attributable to NTELOS Holdings Corp.

$              (19,649)

$                (8,963)

$                 1,610

$               14,796

$              (56,208)

$                    804

$                    484

$                 1,286

$              (12,206)

$              (12,206)

$              (53,634)

$              (53,634)

Net income (loss) attributable to discontinued operations

(14,441)

(4,498)

787

8,249

(54,128)

(92)

(457)

(672)

(9,903)

(9,903)

(55,349)

(55,349)

Net income attributable to noncontrolling interests 

168

237

272

491

305

352

375

436

1,168

1,168

1,468

1,468

Net income (loss)  

$                (5,040)

$                (4,228)

$                 1,095

$                 7,038

$                (1,775)

$                 1,248

$                 1,316

$                 2,394

$                (1,135)

$                (1,135)

$                 3,183

$                 3,183

Interest expense 

7,576

7,451

7,614

7,948

8,061

8,368

8,312

7,956

30,589

30,589

32,697

32,697

Income tax (benefit)

(2,941)

(577)

892

4,813

(1,395)

417

512

1,213

2,187

2,187

747

747

Other expense (income), net

(21)

(29)

(33)

3

(80)

31

92

1,072

(80)

(80)

1,115

1,115

Operating income (loss)

$                   (426)

$                 2,617

$                 9,568

$               19,802

$                 4,811

$               10,064

$               10,232

$               12,635

$               31,561

$               31,561

$               37,742

$               37,742

Depreciation and amortization     

15,205

13,851

13,129

12,917

14,758

13,715

13,774

12,978

55,102

55,102

55,225

55,225

Restructuring

115

90

677

1,605

982

-

-

-

2,487

2,487

982

982

Gain on sale of assets

-

-

(102)

(11,009)

-

-

-

-

(11,111)

(11,111)

-

-

Accretion of asset retirement obligations

275

319

315

300

241

179

235

223

1,209

1,209

878

878

Equity-based compensation

792

876

900

860

731

(212)

866

887

3,428

3,428

2,272

2,272

SNA straight-line adjustment ¹

2,315

2,565

3,065

3,065

3,065

3,065

2,043

-

11,010

11,010

8,173

8,173

Other2

(28)

2,805

(96)

(200)

2

1,038

872

1,367

2,481

2,481

3,279

3,279

Adjusted EBITDA attributable to continuing operations

$               18,248

$               23,123

$               27,456

$               27,340

$               24,590

$               27,849

$               28,022

$               28,090

$               96,167

$               96,167

$             108,551

$             108,551

Reconciliation of Adjusted EBITDA - (Continuing Operations) to previously reported Western Markets Adjusted EBITDA³

(In thousands)

 Three Months Ended 

 Twelve Months Ended 

December 31, 2015

September 30, 2015

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

June 30, 2014

March 31, 2014

December 31, 2015

December 31, 2015

December 31, 2014

December 31, 2014

Adjusted EBITDA attributable to continuing operations

$               18,248

$               23,123

$               27,456

$               27,340

$               24,590

$               27,849

$               28,022

$               28,090

$               96,167

$               96,167

$             108,551

$             108,551

Cost of services-previous allocation to Eastern Markets

-

-

-

-

195

143

121

124

-

-

583

583

Customer operations-previous allocation to Eastern Markets

-

-

-

-

2,612

2,619

2,647

2,629

-

-

10,507

10,507

Corporate operations-previous allocation to Eastern Markets

-

-

-

-

2,800

2,267

2,517

2,505

-

-

10,089

10,089

Adjusted EBITDA attributable to Western Markets³

$               18,248

$               23,123

$               27,456

$               27,340

$               30,197

$               32,878

$               33,307

$               33,348

$               96,167

$               96,167

$             129,730

$             129,730

1

Adjustment for impact of recognizing a portion of the billed SNA contract revenues on a straight line basis.

2

In 2014, Other includes legal and advisory fees related to new Sprint agreement and certain employee separation charges.

In 2015, Other includes certain non-recurring corporate costs and adjustments for recognizing a portion of the deferred gain

for towers sold to Grain Management, LLC.

3

Western Markets was previously defined as Holdings less Eastern Markets and, for 2014, included the allocation of

certain corporate expenses to the Eastern Markets.

 

 

 

SOURCE NTELOS Holdings Corp.