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.