NTELOS Holdings Corp. Provides Preliminary Fourth Quarter and Full Year Financial and Operating Results

--Reports Strong 4Q Gross Additions

--Provides Fiscal Year 2014 Adjusted EBITDA and Capital Expenditures Guidance

--Exploring Debt Refinancing Opportunities

Jan 14, 2014, 07:00 ET from NTELOS Holding Corp.

WAYNESBORO, Va., Jan. 14, 2014 /PRNewswire/ -- NTELOS Holdings Corp. (NASDAQ: NTLS, the "Company") announced today selected preliminary financial and operating results for the fourth quarter and year ended December 31, 2013 and provided fiscal year 2014 Adjusted EBITDA and Capital Expenditure guidance.  The Company also announced that it intends to explore the possibility of refinancing its outstanding Term Loan-A credit facility to take advantage of current favorable market conditions.  In connection with the potential refinancing, the Company has prepared a company overview presentation that it intends to share and discuss with prospective lenders.  A copy of the presentation has been filed with the Securities and Exchange Commission on a Current Report on Form 8-K and is available at www.sec.gov and is also posted on the Company's website at: http://ir.ntelos.com

2013 Subscriber Activity

Quarter Ended

Full Year Ended

December 31, 2013

December 31, 2013

Total gross additions

50,800

183,900

Total postpay gross additions

28,700

85,200

Total prepay gross additions

22,100

98,700

Total net additions

7,500

25,000

Total postpay net additions

8,900

12,800

Total prepay net additions

(1,400)

12,200

Total subscribers

464,600

Total postpay subscribers

306,700

Total prepay subscribers

157,900

Churn

3.1%

2.9%

Postpay Churn

2.2%

2.0%

Prepay Churn

4.9%

4.7%

2013 Adjusted EBITDA and Capital Expenditures

For the fourth quarter, Adjusted EBITDA is expected to be approximately $26.7 million. Adjusted EBITDA for the quarter was impacted by seasonally higher subsidy costs associated with strong gross additions during the holiday sales season and increased retention costs associated with customers coming out of contract.  For fiscal year 2013, Adjusted EBITDA is expected to be approximately $150.9 million, including $9.6 million recognized during the third quarter related to the dispute settlement with Sprint.  Capital expenditures are expected to be approximately $15.5 and $80.7 million for the three and twelve months ended December 31, 2013, respectively. 

The preliminary financial information is based on information available to the management team as of the date of this release and remains subject to the completion of the year-end closing process and has not been audited by the Company's independent registered public accounting firm.  Actual financial results may differ from these estimates.

2014 Business Outlook

For the year ending December 31, 2014, the Company expects full year 2014 Adjusted EBITDA to be between $140.0 million and $150.0 million. In addition, the Company expects its full year 2014 capital expenditures to be between $85.0 million and $95.0 million.

4Q 2013 Earnings Announcement

The Company plans to release its complete fourth quarter 2013 results on or about February 28, 2014.

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, gain/loss on derivatives, net income attributable to noncontrolling interests, other expenses/income, equity-based compensation charges, acquisition related charges, net income from discontinued operations, secondary offering costs and costs related to the separation of the wireless and wireline operations.

Adjusted EBITDA is a key metric used by investors to determine if the Company is generating sufficient cash flows to continue to create shareholder value, provide liquidity for future growth and continue to fund dividends.

Adjusted EBITDA is a non-GAAP financial performance measures.  It 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 any 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. (NASDAQ: NTLS), operating through its subsidiaries as "nTelos Wireless," is headquartered in Waynesboro, VA, and provides high-speed, dependable nationwide voice and data coverage for over 464,600 retail subscribers based in Virginia, West Virginia and portions of Maryland, North Carolina, Pennsylvania, Ohio and Kentucky. The Company's licensed territories have a total population of approximately 8.1 million residents, of which its wireless network covers approximately 6.0 million residents. The Company is also the exclusive wholesale provider of network services to Sprint Nextel in the western Virginia and West Virginia portions of its territories for all Sprint CDMA wireless customers. Additional information about NTELOS is available at www.ntelos.com or www.facebook.com/nteloswireless and www.twitter.com/ntelos_wireless.

Forward-Looking Statements

Any statements contained in this press release or in the materials referenced herein that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. The words "anticipates," "believes," "expects," "intends," "plans," "estimates," "targets," "projects," "should," "may," "will" and similar words and expressions are intended to identify forward-looking statements. Such forward-looking statements reflect, among other things, our current expectations, plans and strategies, and anticipated financial results, all of which are subject to known and unknown risks, uncertainties and factors that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements. Many of these risks are beyond our ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the date they are made. We do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.  There are important factors with respect to any such forward-looking statements, including certain risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements.  We advise the reader to review in detail the cautionary statements and risk factors included in our SEC filings, including our most recent Annual Report filed on Form 10-K and Quarterly Reports filed on Form 10-Q.

Exhibit:

  • Key Metrics – Subscriber Activity

 

NTELOS Holdings Corp.

Key Metrics

Twelve Months Ended

Quarter Ended:

12/31/2012

3/31/2013

6/30/2013

9/30/2013

12/31/2013

12/31/2012

12/31/2013

Subscribers

Beginning Subscribers

430,300

439,600

451,000

454,800

457,100

414,500

439,600

Postpay

288,900

297,400

299,700

298,700

298,000

292,400

297,400

Prepay

141,400

142,200

151,300

156,100

159,100

122,100

142,200

Gross Additions

46,200

48,500

40,100

44,500

50,800

171,300

183,900

Postpay

25,100

20,200

16,300

20,000

28,700

80,900

85,200

Prepay

21,100

28,300

23,800

24,500

22,100

90,400

98,700

Disconnections

36,900

37,100

36,300

42,200

43,300

146,200

158,900

Postpay

15,900

16,900

16,100

19,600

19,800

70,900

72,400

Prepay

21,000

20,200

20,200

22,600

23,500

75,300

86,500

Net Additions (Losses)

9,300

11,400

3,800

2,300

7,500

25,100

25,000

Postpay

9,200

3,300

200

400

8,900

10,000

12,800

Prepay

100

8,100

3,600

1,900

(1,400)

15,100

12,200

Ending Subscribers

439,600

451,000

454,800

457,100

464,600

439,600

464,600

Postpay

297,400

299,700

298,700

298,000

306,700

297,400

306,700

Prepay

142,200

151,300

156,100

159,100

157,900

142,200

157,900

Churn, net

2.8%

2.8%

2.7%

3.1%

3.1%

2.9%

2.9%

Postpay

1.8%

1.9%

1.8%

2.2%

2.2%

2.0%

2.0%

Prepay

4.9%

4.6%

4.4%

4.8%

4.9%

4.6%

4.7%

 

 

Investor Relations Contacts: Jeffrey Goldberger / Rob Fink KCSA Strategic Communications P: 212-896-1249 / 212-896-1206 Email: jgoldberger@kcsa.com / rfink@kcsa.com

SOURCE NTELOS Holding Corp.



RELATED LINKS

http://www.ntelos.com