MetroPCS Reports First Quarter 2013 Results

                 MetroPCS Reports First Quarter 2013 Results

PR Newswire

DALLAS, April 24, 2013

DALLAS, April 24, 2013 /PRNewswire/ --

First Quarter 2013 Highlights Include:

  oQuarterly consolidated total revenues of approximately $1.3 billion, an
    increase of 1% over the first quarter of 2012
  oAdjusted EBITDA of $291 million, an increase of 11% over the first quarter
    of 2012
  oAdjusted EBITDA margin of 26.4%, an increase of 380 basis points over the
    first quarter of 2012
  oRecord low quarterly churn of 2.9%, a decrease of 20 basis points over the
    first quarter of 2012, lowest quarterly churn in Company history
  oQuarterly ARPU of $40.96, an increase of $0.40 over the first quarter of
    2012
  oQuarterly income from operations of $108 million, a 10% increase over the
    first quarter of 2012
  oSurpassed 3.5 million 4G LTE subscribers, representing 39% of total
    subscribers

MetroPCS Communications, Inc. (NYSE: PCS), the nation's leading provider of no
annual contract, unlimited, flat-rate wireless communications service, today
announced financial and operational results for the quarter ended March 31,
2013. MetroPCS reported quarterly Adjusted EBITDA of $291 million for the
first quarter 2013 and ended the quarter with approximately 9.0 million
subscribers.

Roger D. Linquist, Chairman and Chief Executive Officer of MetroPCS, said, "We
are pleased with first quarter momentum highlighted by the lowest quarterly
churn in company history, and continued growth in our 4G LTE subscribers. At
the end of the first quarter, we had over 3.5 million 4G LTE subscribers,
representing approximately 39% of our total subscriber base, which was an
increase of 1.2 million over December 31, 2012. Financially, Adjusted EBITDA
grew 11% year over year to $291 million. Our 4G LTE network offers a superior
customer experience and is meeting our customers' current demands for
high-speed wireless broadband service. Throughout 2013, we plan to continue
efforts to fully leverage the capabilities afforded by our high-speed 4G LTE
network.

"Today, by an overwhelming majority, our stockholders approved our combination
with T-Mobile USA. This combination offers both immediate and long-term
compelling economic value to MetroPCS' stockholders and we look forward to
completing this combination on April 30, 2013. As a combined company, we will
create the value leader in the U.S. wireless marketplace," Linquist concluded.

Key Consolidated Financial and Operating Metrics
(in millions, except percentages, per share, per subscriber and subscriber
amounts)
                                           Three Months Ended
                                           March 31
                                           2013        2012        Change
Service revenues                           $  1,101   $  1,159   (5)%
Total revenues                             $  1,287   $  1,277   1%
Income from operations                     $   108  $    98 10%
Net income                                $    19 $    21 (8)%
Diluted EPS                                $   0.05  $   0.06  $  (0.01)
Adjusted EBITDA^(1)                        $   291  $   262  11%
Adjusted EBITDA as apercentage of service
revenues                                   26.4%       22.6%       380 bps
ARPU^(1)                                   $  40.96   $  40.56   $   0.40
CPGA^(1)                                   $ 236.14    $ 235.45    $   0.69
CPU^(1)                                    $  22.21   $  22.87   $  (0.66)
Churn-Average Monthly Rate                 2.9%        3.1%        (20 bps)
Consolidated Subscribers
End of Period                              8,995,391   9,478,313   (5)%
Net Additions                              108,668     131,654     (17)%
Penetration of Covered POPs^(2)            8.7%        9.3%        (60 bps)

    For a reconciliation of non-GAAP financial measures, please refer to the
(1) section entitled "Definition of Terms and Reconciliation of non-GAAP
    Financial Measures" included at the end of this release.
(2) Number of covered POPs covered by MetroPCS Communications, Inc. network
    increased 1.7 million from 3/31/12 to 3/31/13 to 103 million.

Quarterly Consolidated Results

  oConsolidated service revenues of approximately $1.1 billion for the first
    quarter of 2013, a decrease of $58 million, or 5%, when compared to the
    prior year's first quarter.
  oIncome from operations increased $10 million, or 10%, for the first
    quarter of 2013 when compared to the prior year's first quarter.
  oAdjusted EBITDA of $291 million increased by $29 million for the first
    quarter of 2013, or 11%, when compared to the prior year's first quarter.
    For the first quarter of 2013 the Company incurred $4 million in expenses
    in connection with the proposed business combination with T-Mobile.
  oNet income for the quarter was $19 million and includes $3 million in
    expenses, net of tax, incurred in connection with the proposed business
    combination with T-Mobile. On a non-GAAP basis excluding the expenses
    related to the proposed business combination, net income would have been
    $22 million or $0.06 per common share.
  oAverage revenue per user (ARPU) of $40.96 for the first quarter of 2013
    represents an increase of $0.40 when compared to the first quarter of
    2012. The increase in ARPU was primarily attributable to continued demand
    for our 4G LTE service plans partially offset by promotional service
    plans.
  oThe Company's cost per gross addition (CPGA) of $236 for the first quarter
    of 2013 represents an increase of $1 when compared to the prior year's
    first quarter. The increase is primarily driven by a 12% decrease in gross
    additions partially offset by decreased promotional activities as compared
    to the three months ended March 31, 2012.
  oCost per user (CPU) decreased to $22.21 in the first quarter of 2013, or a
    3% decrease over the first quarter of 2012. The decrease in CPU is
    primarily driven by a decrease in retention expense for existing
    customers, a decrease in long distance cost and a decrease in taxes and
    regulatory fees. These items were partially offset by an increase in
    costs associated with our 4G LTE network upgrade and an increase in
    commissions paid to independent retailers for customer reactivations.
    During the quarter we experienced $5.45 in CPU directly related to handset
    upgrades compared to $7.13 in the prior year's first quarter.
  oChurn decreased 20 basis points when compared to the first quarter of
    2012. The decrease in churn was primarily driven by continued investments
    in our network and lower subscriber growth.

Financial Guidance for 2013

For the year ending December 31, 2013, MetroPCS today reaffirms its prior
guidance, originally provided on February 26, 2013. MetroPCS currently expects
to incur capital expenditures in the range of $800 million to $900 million on
a standalone consolidated basis for the year ending December 31, 2013.

Q1 2013 Earnings Conference Call

Given the pending closing of the transaction between MetroPCS Communications,
Inc. and T-Mobile USA, Inc., MetroPCS will not be hosting a first quarter 2013
earnings call. The Company anticipates the closing will occur after the close
of businesson April 30, 2013.

About MetroPCS Communications, Inc.

Dallas-based MetroPCS Communications, Inc. (NYSE: PCS) is a provider of no
annual contract, unlimited wireless communications service for a flat-rate.
MetroPCS is the fifth largest facilities-based wireless carrier in the United
States based on number of subscribers served. With Metro USA(SM), MetroPCS
customers can use their service in areas throughout the United States covering
a population of over 280 million people. As of March 31, 2013, MetroPCS had
approximately 9.0 million subscribers. For more information please visit
www.metropcs.com.

Forward-Looking Statements
This release includes "forward-looking statements" for the purpose of the
"safe harbor" provisions within the meaning of the Private Securities
Litigation Reform Act of 1995, as amended, and rule 3(b)-6 under the
Securities Exchange Act of 1934, as amended. Any statements made in this
release that are not statements of historical fact, including statements about
our plans, beliefs, opinions, projections, and expectations, are
forward-looking statements and should be evaluated as such. Forward-looking
statements include information concerning our plans, our ability to predict
and meet the demands of our subscribers, the competitive differentiations for
our customers, the advantages of a merger with T-Mobile, the anticipated
closing date for the business combination with T-Mobile, our plans to
challenge the wireless market, the reasons for our operational and financial
results, our network capabilities, our guidance on capital expenditures for
2013, and statements that may relate to our plans, objectives, strategies,
goals, future events, future revenues or performance, capital expenditures,
financing needs, and other information that is not historical information.
These forward-looking statements often include words such as "anticipate,"
"expect," "suggests," "plan," "believe," "intend," "estimates," "predicts,"
"targets," "views," "becomes," "projects," "assume," "potential," "should,"
"would," "could," "may," "will," "forecast," and other similar expressions.

These forward-looking statements are based on reasonable assumptions at the
time they are made, including our current expectations, strategies,
objectives, goals, plans, beliefs, opinions and assumptions in light of our
experience in the industry, as well as our perceptions of historical trends,
current conditions, expected future events and developments and other factors
we believe are appropriate under the circumstances and at such times.
Forward-looking statements are not guarantees of future performance or
results. Actual financial results, performance or results of operations may
differ materially from those expressed in the forward-looking statements.
Factors that may materially affect such forward-looking statements include,
but are not limited to:

  othe highly competitive nature of the wireless broadband mobile industry
    and changes in the competitive landscape;
  oours and our competitors' current and planned promotions and advertising,
    marketing, sales and other initiatives, including pricing decisions, entry
    into consolidation and alliance activities, and our ability to respond to
    and support them;
  othe effects of the T-Mobile Transaction on dealers, retailers, vendors,
    suppliers, customers, content and application providers, our equity and
    debt holders and our employees;
  othe diversion of management's time and attention while the T-Mobile
    Transaction is pending;
  oour ability to operate our business in light of the T-Mobile transaction
    and the covenants contained in the Business Combination Agreement;
  othe inability to have developed or to obtain handsets, equipment or
    software that our customers want, demand and expect or to have handsets,
    equipment or software serviced, updated, revised or maintained in a timely
    and cost-effective manner for the prices and the features our customers
    want, expect or demand;
  oour ability to construct, operate and manage our network to deliver the
    services, content, applications, service quality and speed our customers
    want, expect and demand, and to provide, maintain and increase the
    capacity of our network and business systems to satisfy the demands of our
    customers and the demands placed by devices on our network;
  oour plans and expectations relating to, without limitation, (i)our growth
    opportunities and competitive position; (ii)our products and services;
    (iii)our customer experience; (iv)our results of operations, including
    projected synergies from the T-Mobile Transaction, earnings and cash
    flows; (v)the impact of the T-Mobile Transaction on our credit rating;
    and (vi)integration matters;
  othe federal income tax consequences of the T-Mobile Transaction and the
    enactment of additional state, federal, and/or foreign tax and/or other
    laws and regulations;
  oexpectations, intentions and outcomes relating to , diversion of
    managements time and attention to, and our ability to successfully defend
    against, litigation, including securities, class action, derivative,
    intellectual property (including patents), and product safety claims, by
    or against third parties, related to the proposed transaction or
    otherwise;
  othe possibility that the T-Mobile Transaction is delayed or does not
    close, including due to the failure to receive the required stockholder
    approval or required approvals from governmental authorities necessary to
    satisfy the closing conditions, along with satisfaction or waiver of other
    closing conditions, pursuant to the Business Combination Agreement;
  oalternative acquisition proposals that could delay completion of the
    T-Mobile Transaction;
  oour ability to successfully integrate our business with T-Mobile's
    business and realize the expected spectrum, cost and capital expenditure
    savings and synergies and other expected benefits from the T-Mobile
    Transaction;
  ochanges in economic, business, competitive, technological and/or
    regulatory factors, including the passage of legislation or action by
    governmental or regulatory entities;
  oany changes in the regulatory environment in which we operate, including
    any change or increase in restrictions on our ability to operate our
    network;
  oterminations of, or limitations imposed on MetroPCS' or T-Mobile's
    business by, contracts entered into by either MetroPCS or T-Mobile, or the
    effect of provisions with respect to change in control, exclusivity,
    commitments or minimum purchase amounts contained in such contracts;
  othe impact of economic conditions on our business plan, strategy and stock
    price;
  odelays in, or changes in policies related to, income tax refunds or other
    governmental payments;
  othe impact on our network and business from major equipment failures,
    denial of service attacks, and security breaches related to the network or
    customer information;
  othe ability to obtain financing on terms favorable to us, or at all;
  othe impact of public and private regulations;
  opossible disruptions, a denial of service, cyber attacks, or intrusions of
    our network, billing, operational support and customer care systems that
    may limit or disrupt our ability to provide service, customer care, or
    bill our customers, or which may cause disclosure or improper use of
    customers' information and associated harm to our customers, systems,
    reputation and goodwill;
  oour continued ability to offer a diverse portfolio of wireless devices;
  oour ability to obtain and continue to obtain roaming on terms that are
    reasonable;
  osevere weather conditions, natural disasters, energy shortages, wars or
    terrorist attacks, and any resulting financial impact not covered by
    insurance;
  odisruptions of our key suppliers' provisioning of products, services,
    content or applications;
  ofluctuations in interest and exchange rates;
  osignificant increases in benefit plan costs or lower investment returns on
    plan assets;
  omaterial adverse changes in labor matters, including labor negotiations or
    additional organizing activity, and any resulting financial and/or
    operational impact;
  owrite-offs, including write-offs in connection with the transaction, or
    changes in MetroPCS' and/or T-Mobile's accounting assumptions that
    regulatory agencies, including the SEC, may require or that result from
    changes in the accounting rules or their application, which could result
    in an impact on earnings;
  othe significant capital commitments of MetroPCS and T-Mobile;
  oour ability to remain focused and keep all employees focused on the
    business during the pendency of the T-Mobile Transaction;
  othe current economic environment in the United States; disruptions to the
    credit and financial markets in the United States; and the impact of the
    economy on consumer demand and fluctuations in consumer demand generally
    for the products and services provided;
  oour ability to manage our growth, achieve planned growth, manage churn
    rates, maintain our cost structure and achieve additional economies of
    scale;
  oour ability to negotiate and maintain acceptable agreements with our
    suppliers and vendors, including obtaining roaming on reasonable terms;
  othe seasonality of our business and any failure to have strong customer
    growth in the first and fourth quarters;
  othe rates, nature, collectability and applicability of taxes and
    regulatory fees on the services we provide and increases or changes in
    taxes and regulatory fees or the services to, or the manner in, which such
    taxes and fees are applied, calculated, or collected;
  othe rapid technological changes in our industry, and our ability to adapt,
    respond and deploy new technologies, and successfully offer new services
    using such new technology;
  oour ability to fulfill the demands and expectations of our customers,
    provide the customer care our customers want, expect, or demand, secure
    the products, services, applications, content and network infrastructure
    equipment we need, or which our customers or potential customers want,
    expect or demand;
  othe availability of additional spectrum, our ability to secure additional
    spectrum, or secure it at acceptable prices, when we need it;
  oour ability to enforce or protect our intellectual property rights;
  oour capital structure, including our indebtedness amount, the limitations
    imposed by the covenants in the documents governing our indebtedness and
    the maintenance of our financial and disclosure controls and procedures;
  oour ability to attract and retain key members of management and train
    personnel;
  oour ability to retain and grow our indirect distribution channels for our
    products and services;
  oour reliance on third parties to provide distribution, products, software
    content and services that are integral to or used or sold by our business
    and the ability of our suppliers to perform, develop and timely provide us
    with technological developments, products and services we need to remain
    competitive;
  ogovernmental regulation affecting our services and changes in government
    regulation, and the costs of compliance and our failure to comply with
    such regulations; and
  oother factors described or referenced from time to time in our quarterly
    report on Form 10-Q, for the quarter ended March 31, 2013, to be filed on
    or before May 10, 2013, as well as subsequent quarterly reports on Form
    10-Q, or current reports on Form 8-K, all of which are on file with the
    SEC and may be obtained free of charge through the SEC's website
    http://www.sec.gov, from the Company's website at www.metropcs.com under
    the investor relations tab, or from the Company by contacting the Investor
    Relations department.

The forward-looking statements speak only as of the date made, are based on
current assumptions and expectations, and are subject to the factors above,
among other things, and involve risks, uncertainties, events, circumstances
and assumptions, many of which are beyond our ability to foresee, control or
predict. You should not place undue reliance on these forward-looking
statements. All future written and oral forward looking statements
attributable to us or persons acting on our behalf are expressly qualified in
their entirety by our cautionary statements. MetroPCS Communications, Inc.
does not intend to, is not obligated to, and does not undertake a duty to,
update any forward-looking statement to reflect the occurrence of events or
circumstances after the date of this release, except as required by law. The
results for the first quarter of 2013 may not be reflective of results for any
subsequent period. MetroPCS does not plan to update nor reaffirm guidance
except through formal public disclosure pursuant to Regulation FD.

MetroPCS Communications, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share and per share information)

(Unaudited)
                                                    March31,     December31,
                                                    2013          2012
CURRENT ASSETS:
Cash and cash equivalents                           $ 2,701,281   $ 2,368,302
Short-term investments                              —             244,990
Restricted cash                                     3,475,417     —
Inventories                                         254,871       259,157
Accounts receivable (net of allowance for
uncollectible accounts of $331 and $476 at March    87,810        98,653
31, 2013 and December31, 2012, respectively)
Prepaid expenses                                    97,361        65,069
Deferred charges                                    82,233        78,181
Deferred tax assets                                 3,493         3,493
Other current assets                                70,238        69,458
Total current assets                                6,772,704     3,187,303
Property and equipment, net                         4,177,500     4,292,061
Restricted cash and investments                     4,929         4,929
Long-term investments                               1,679         1,679
FCC licenses                                        2,564,495     2,562,407
Other assets                                        141,239       141,036
Total assets                                        $ 13,662,546  $ 10,189,415
CURRENT LIABILITIES:
Accounts payable and accrued expenses               $ 473,674     $ 501,929
Current maturities of long-term debt                2,450,240     36,640
Deferred revenue                                    241,341       237,635
Other current liabilities                           23,870        71,599
Total current liabilities                           3,189,125     847,803
Long-term debt, net                                 5,807,170     4,724,112
Deferred tax liabilities                            1,044,503     1,031,374
Deferred rents                                      139,291       136,456
Other long-term liabilities                         90,516        90,763
Total liabilities                                   10,270,605    6,830,508
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, par value $0.0001 per share,
100,000,000 shares authorized; no shares of         —             —
preferred stock issued and outstanding at March
31, 2013 and December31, 2012
Common stock, par value $0.0001 per share,
1,000,000,000 shares authorized, 365,644,106 and    37            37
364,492,637 shares issued and outstanding at March
31, 2013 and December31, 2012, respectively
Additional paid-in capital                          1,839,870     1,826,044
Retained earnings                                   1,572,986     1,553,590
Accumulated other comprehensive loss                (7,571)       (9,602)
Less treasury stock, at cost, 1,282,141 and
1,057,237 treasury shares at March 31, 2013 and     (13,381)      (11,162)
December31, 2012, respectively
Total stockholders' equity                          3,391,941     3,358,907
Total liabilities and stockholders' equity          $ 13,662,546  $ 10,189,415





MetroPCS Communications, Inc. and Subsidiaries

Condensed Consolidated Statements of Income and Comprehensive Income

(in thousands, except share and per share information)

(Unaudited)
                                                    For the Three Months Ended
                                                    March 31,
                                                    2013           2012
REVENUES:
Service revenues                                    $  1,101,031   $ 1,158,779
Equipment revenues                                  186,030        117,811
Total revenues                                      1,287,061      1,276,590
OPERATING EXPENSES:
Cost of service (excluding depreciation and
amortization expense of $149,569 and $132,223       372,978        388,927
shown separately below)
Cost of equipment                                   437,969        458,864
Selling, general and administrative expenses
(excluding depreciation and amortization expense    194,611        176,593
of $23,598 and $20,596 shown separately below)
Depreciation and amortization                       173,167        152,819
Loss on disposal of assets                          508            1,120
Total operating expenses                            1,179,233      1,178,323
Income from operations                              107,828        98,267
OTHER EXPENSE (INCOME):
Interest expense                                    76,346         70,083
Interest income                                     (373)          (375)
Other (income) expense, net                         (84)           (103)
Total other expense                                 75,889         69,605
Income before provision for income taxes            31,939         28,662
Provision for income taxes                          (12,543)       (7,658)
Net income                                          $  19,396      $ 21,004
Other comprehensive income (loss):
Unrealized gains on available-for-sale securities,  6              17
net of tax of $4 and $9, respectively
Unrealized losses on cash flow hedging
derivatives, net of tax benefit of $71 and $1,572,  (115)          (3,133)
respectively
Reclassification adjustment for gains on
available-for-sale securities included in net       (85)           (25)
income, net of tax of $53 and $12, respectively
Reclassification adjustment for losses on cash
flow hedging derivatives included in net income,    2,225          2,887
net of tax benefit of $1,378 and $1,448,
respectively
Total other comprehensive income (loss)             2,031          (254)
Comprehensive income                                $  21,427      $ 20,750
Net income per common share:
Basic                                               $  0.05        $ 0.06
Diluted                                             $  0.05        $ 0.06
Weighted average shares:
Basic                                               364,999,137    362,718,613
Diluted                                             366,556,369    364,283,160





MetroPCS Communications, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)
                                                    For the Three Months Ended
                                                    March 31,
                                                  2013           2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                        $ 19,396       $  21,004
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization                     173,167        152,819
Recovery of uncollectible accounts receivable     (111)          (107)
Deferred rent expense                             2,930          4,792
Cost of abandoned cell sites                      360            423
Stock-based compensation expense                  9,573          10,156
Non-cash interest expense                         2,195          1,831
Loss on disposal of assets                        508            1,120
Gain on maturity or sale of investments           (138)          (37)
Accretion of asset retirement obligations         1,778          1,588
Deferred income taxes                             11,505         14,357
Changes in assets and liabilities:
Inventories                                       4,285          (12,510)
Accounts receivable, net                          10,953         (2,844)
Prepaid expenses                                  (32,312)       (14,904)
Deferred charges                                  (4,052)        (29,808)
Other assets                                      11,171         10,423
Accounts payable and accrued expenses             15,155         (39,803)
Deferred revenue                                  3,706          15,950
Other liabilities                                 (6,618)        2,454
Net cash provided by operating activities         223,451        136,904
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment               (154,608)      (144,016)
Change in prepaid purchases of property and       13,831         (7,352)
equipment
Proceeds from sale of and grants received for     3,323          477
property and equipment
Purchases of investments                          —              (192,415)
Proceeds from maturity of investments             245,000        162,500
Change in restricted cash and investments         (3,475,417)    500
Acquisitions of FCC licenses and microwave        (2,066)        (2,584)
clearing costs
Net cash used in investing activities             (3,369,937)    (182,890)
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in book overdraft                          11,660         (2,830)
Proceeds from debt issuance                       3,500,000      —
Debt issuance costs                               (25,821)       —
Repayment of debt                                 (6,347)        (6,347)
Payments on capital lease obligations             (2,752)        (1,558)
Purchase of treasury stock                        (2,219)        (1,888)
Proceeds from exercise of stock options           4,944          1,565
Net cash provided by (used in) financing          3,479,465      (11,058)
activities
INCREASE (DECREASE) CASH AND CASH EQUIVALENTS     332,979        (57,044)
CASH AND CASH EQUIVALENTS, beginning of period    2,368,302      1,943,282
CASH AND CASH EQUIVALENTS, end of period          $ 2,701,281    $  1,886,238



Definition of Terms and Reconciliation of Non-GAAP Financial Measures

The Company utilizes certain financial measures and key performance indicators
that are not calculated in accordance with GAAP to assess our financial and
operating performance. A non-GAAP financial measure is defined as a numerical
measure of a company's financial performance that (i) excludes amounts, or is
subject to adjustments that have the effect of excluding amounts, that are
included in the comparable measure calculated and presented in accordance with
GAAP in the statement of income or statement of cash flows, or (ii) includes
amounts, or is subject to adjustments that have the effect of including
amounts, that are excluded from the comparable measure so calculated and
presented.

Average revenue per user, or ARPU, cost per gross addition, or CPGA, cost per
user, or CPU, and Adjusted EBITDA are non-GAAP financial measures utilized by
the Company's management to judge the Company's ability to meet its liquidity
requirements and to evaluate its operating performance. Management believes
that these measures are important in understanding the performance of the
Company's operations from period to period, and although every company in the
wireless industry does not define each of these measures in precisely the same
way, management believes that these measures (which are common in the wireless
industry) facilitate key liquidity and operating performance comparisons with
other companies in the wireless industry. The following tables reconcile the
Company's non-GAAP financial measures with the Company's financial statements
presented in accordance with GAAP.

ARPU - The Company utilizes ARPU to evaluate its per-customer service revenue
realization and to assist in forecasting future service revenues. ARPU is
calculated exclusive of pass through charges that the Company collects from
its customers and remits to the appropriate government agencies.

Average number of customers for any measurement period is determined by
dividing (a)the sum of the average monthly number of customers for the
measurement period by (b)the number of months in such period. Average monthly
number of customers for any month represents the sum of the number of
customers on the first day of the month and the last day of the month divided
by two. The Company believes investors use ARPU primarily as a tool to track
changes in its average revenue per customer and to compare its per customer
service revenues to those of other wireless broadband mobile providers,
although other providers may calculate this measure differently. The following
table reconciles total revenues used in the calculation of ARPU to service
revenues, which the Company considers to be the most directly comparable GAAP
financial measure to ARPU.

                                                 Three Months Ended March 31,
                                                 2013             2012
                                                 (inthousands,exceptaverage
                                                 numberofcustomersandARPU)
Calculation of Average Revenue Per User (ARPU):
Service revenues                                 $   1,101,031    $  1,158,779
Less: Pass through charges                       (8,439)          (16,504)
Net service revenues                             $   1,092,592    $  1,142,275
Divided by: Average number of customers          8,891,298        9,388,465
ARPU                                             $   40.96        $  40.56

CPGA - The Company utilizes CPGA to assess the efficiency of its distribution
strategy, validate the initial capital invested in its customers and determine
the number of months to recover its customer acquisition costs. This measure
also allows management to compare the Company's average acquisition costs per
new customer to those of other wireless broadband mobile providers, although
other providers may calculate this measure differently. Equipment revenues
related to new customers are deducted from selling expenses in this
calculation as they represent amounts paid by customers at the time their
service is activated that reduce the Company's acquisition cost of those
customers. Additionally, equipment costs associated with existing customers,
net of related revenues, are excluded as this measure is intended to reflect
only the acquisition costs related to new customers. The Company believes
investors use CPGA primarily as a tool to track changes in its average cost of
acquiring new customers and to compare its per customer acquisition costs to
those of other wireless broadband mobile providers, although other providers
may calculate this measure differently. The following table reconciles total
costs used in the calculation of CPGA to selling expenses, which the Company
considers to be the most directly comparable GAAP financial measure to CPGA.

                                                  Three Months Ended March 31,
                                                  2013             2012
                                                  (inthousands,exceptgross
                                                  customer additions and CPGA)
Calculation of Cost Per Gross Addition (CPGA):
Selling expenses                                  $   102,526      $  95,541
Less: Equipment revenues                          (186,030)        (117,811)
Add: Equipment revenue not associated with new    131,543          94,069
customers
Add: Cost of equipment                            437,969          458,864
Less: Equipment costs not associated with new     (276,813)        (294,829)
customers
Gross addition expenses                           $   209,195      $  235,834
Divided by: Gross customer additions              885,893          1,001,636
CPGA                                              $   236.14       $  235.45

CPU - The Company utilizes CPU as a tool to evaluate the non-selling cash
expenses associated with ongoing business operations on a per customer basis,
to track changes in these non-selling cash costs over time, and to help
evaluate how changes in the Company's business operations affect non-selling
cash costs per customer. In addition, CPU provides management with a useful
measure to compare its non-selling cash costs per customer with those of other
wireless broadband mobile providers. The Company believes investors use CPU
primarily as a tool to track changes in the Company's non-selling cash costs
over time and to compare the Company's non-selling cash costs to those of
other wireless broadband mobile providers, although other providers may
calculate this measure differently. The following table reconciles total
costs used in the calculation of CPU to cost of service, which the Company
considers to be the most directly comparable GAAP financial measure to CPU.

                                                 Three Months Ended March 31,
                                                 2013              2012
                                                 (inthousands,exceptaverage
                                                 number of customers and CPU)
Calculation of Cost Per User (CPU):
Cost of service                                  $    372,978      $  388,927
Add: General and administrative expense          92,085            81,052
Add: Net loss on equipment transactions          145,270           200,760
unrelated to initial customer acquisition
Less: Stock-based compensation expense included
in cost of service and general and               (9,573)           (10,156)
administrative expense
Less: Pass through charges                       (8,439)           (16,504)
Total costs used in the calculation of CPU       $    592,321      $  644,079
Divided by: Average number of customers          8,891,298         9,388,465
CPU                                              $    22.21        $  22.87

Adjusted EBITDA - The Company utilizes Adjusted EBITDA to monitor the
financial performance of its operations. This measurement, together with GAAP
measures such as revenue and income from operations, assists management in its
decision-making process related to the operations of the Company's business.
Adjusted EBITDA has limitations as an analytical tool and should not be
considered in isolation or as a substitute for income from operations, net
income, or any other measure of financial performance reported in accordance
with GAAP. In addition, other providers may calculate this measure
differently.

The Company believes that analysts and investors use Adjusted EBITDA as a
supplemental measure to evaluate its overall operating performance and that
this metric facilitates the comparisons with other wireless communications
companies. The Company uses Adjusted EBITDA internally as a metric to
evaluate and compensate its employees for their performance, and as a
benchmark to evaluate its operating performance in comparison to its
competitors. Management also uses Adjusted EBITDA to measure, from
period-to-period, the Company's ability to provide cash flows to meet future
debt services, capital expenditures and working capital requirements and fund
future growth.

The following tables illustrate the calculation of Adjusted EBITDA and
reconcile Adjusted EBITDA to net income and cash flows from operating
activities, which the Company considers to be the most directly comparable
GAAP financial measures to Adjusted EBITDA.

                                  Three Months Ended March 31,
                                  2013             2012
                                  (in thousands)
Calculation of Adjusted EBITDA:
Net income                        $   19,396       $  21,004
Adjustments:
Depreciation and amortization     173,167          152,819
Loss on disposal of assets        508              1,120
Stock-based compensation expense  9,573            10,156
Interest expense                  76,346           70,083
Interest income                   (373)            (375)
Other (income) expense, net       (84)             (103)
Provision for income taxes        12,543           7,658
Adjusted EBITDA                   $   291,076      $  262,362



                                                  Three Months Ended March 31,
                                                  2013             2012
                                                  (in thousands)
Reconciliation of Net Cash Provided by Operating
Activities to Adjusted EBITDA:
Net cash provided by operating activities         $   223,451      $  136,904
Adjustments:
Interest expense                                  76,346           70,083
Non-cash interest expense                         (2,195)          (1,831)
Interest income                                   (373)            (375)
Other (income) expense, net                       (84)             (103)
Recovery of uncollectible accounts receivable     111              107
Deferred rent expense                             (2,930)          (4,792)
Cost of abandoned cell sites                      (360)            (423)
Gain on sale and maturity of investments          138              37
Accretion of asset retirement obligations         (1,778)          (1,588)
Provision for income taxes                        12,543           7,658
Deferred income taxes                             (11,505)         (14,357)
Changes in working capital                        (2,288)          71,042
Adjusted EBITDA                                   $   291,076      $  262,362



(Logo: http://photos.prnewswire.com/prnh/20121029/MM02011LOGO)

SOURCE MetroPCS Communications, Inc.

Website: http://www.metropcs.com
Contact: Investor Relations, Jim Mathias, Director - Investor Relations,
Chezzarae Hart, Analyst - Investor Relations, 214-570-4641,
investor_relations@metropcs.com
 
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