NTELOS Holdings Corp. Reports First Quarter 2013 Operating Results

  NTELOS Holdings Corp. Reports First Quarter 2013 Operating Results

                –Quarterly Net Subscriber Additions of 11,400

                 –Quarterly Adjusted EBITDA of $37.4 Million

           –Company Declares Quarterly Dividend of $0.42 Per Share

Business Wire

WAYNESBORO, Va. -- May 07, 2013

NTELOS Holdings Corp. (the “Company,” NASDAQ: NTLS), a leading regional
provider of nationwide wireless voice and data communications and home to the
“best value in wireless,” announced today operating results for its first
quarter ended March 31, 2013.

First Quarter Highlights

  *Operating revenues for the first quarter 2013 increased 8.0% to $119.3
    million, compared to $110.5 million for the same period in 2012;
  *Net postpay subscriber additions were 3,300 for the first quarter 2013,
    compared to a loss of (4,800) for the same period in 2012;
  *Postpay churn for the first quarter 2013 improved to 1.9%, compared to
    2.5% for the same period in 2012; and
  *ARPU for the first quarter 2013 was $53.87, compared to $49.08 for the
    same period in 2012.

“During the first quarter of 2013, we continued to reap the benefits of the
investments we made in our retail business over the past year,” said James A.
Hyde, CEO of NTELOS Holdings Corp. “Retail revenues increased both
sequentially and year-over-year as we saw growth in our subscriber base and
continued expansion of ARPU. Specifically, we posted our fifth consecutive
quarter of both positive net additions and increased ARPU, which together
helped drive Adjusted EBITDA growth for the second straight quarter.”

Highlights from Operations

  *Operating revenues for the first quarter 2013 were $119.3 million, up 8.0%
    from the first quarter 2012. The increase in operating revenues was
    primarily driven by a strong increase in subscriber revenues.

  *Retail revenues, which include subscriber and equipment revenue, increased
    12.0% to $77.6 million for the first quarter 2013, compared to $69.2
    million for the first quarter 2012;
  *Wholesale and other revenue derived primarily from the Company’s Strategic
    Network Alliance with Sprint were $41.8 million for the first quarter
    2013, compared to $41.3 million for the first quarter 2012; and
  *Adjusted EBITDA was $37.4 million for the first quarter 2013, compared to
    $35.9 million for the first quarter 2012.

Total Subscribers

  *Total subscribers were 451,000 as of March 31, 2013, compared to 439,600
    as of December 31, 2012;
  *Total gross additions for the first quarter were 48,500, compared to
    45,900 for the same period of 2012; and
  *Total net subscriber additions for the first quarter were 11,400 compared
    to 6,800 for the same period of 2012.

Postpay Subscribers

  *Postpay subscriber gross additions for the first quarter 2013 were 20,200,
    compared to 17,000 for the first quarter 2012 and 25,100 for the fourth
    quarter 2012;
  *Net postpay subscriber additions were 3,300 for the first quarter 2013,
    compared to a loss of (4,800) for the first quarter 2012 and a gain of
    9,200 in the fourth quarter 2012;
  *Postpay churn for the first quarter 2013 was 1.9%, compared to 2.5% in the
    first quarter 2012 and 1.8% for the fourth quarter of 2012; and
  *As of March 31, 2013, total postpay subscribers were 299,700.

Prepay Subscribers

  *Prepay subscriber gross additions for the first quarter 2013 were 28,300,
    compared to 28,900 for the first quarter 2012 and 21,100 for the fourth
    quarter 2012;
  *Net prepay subscriber additions were 8,100 for the first quarter 2013,
    compared to 11,600 for the first quarter 2012 and 100 for the fourth
    quarter 2012;
  *Prepay churn for the first quarter 2013 was 4.6%, compared to 4.5% for the
    first quarter 2012 and 4.9% for the fourth quarter of 2012; and
  *As of March 31, 2013, total prepay subscribers were 151,300.

Mr. Hyde concluded, “Looking ahead, we remain on track with our plans to roll
out LTE to the first markets in our footprint during the second half of 2013.
These investments in our network mark the next chapter in the resurgence of
our retail business, building on the foundation we set last year through
changes in our handset lineup, improvements in our distribution and continued
focus on the customer. We are excited about the growth prospects of both our
retail and wholesale business lines and remain committed to making the
necessary investments in both areas to create value for our stakeholders.”

Net Income

Net income after net income attributable to noncontrolling interests was $5.5
million, or $0.25 per diluted share, for the first quarter 2013 compared to
$7.9 million, or $0.37 per diluted share, for the first quarter 2012.

Declaration of Dividend

On May 2, 2013, the Company’s Board of Directors declared a quarterly cash
dividend on its common stock in the amount of $0.42 per share to be paid on
July 12, 2013 to stockholders of record on June 14, 2013.

Business Outlook

For the year ending December 31, 2013, the Company reiterates its full year
2013 Adjusted EBITDA guidance of between $135.0 million and $145.0 million. In
addition, the Company reiterates its full year 2013 capital expenditures
guidance of between $75.0 million and $85.0 million.

Conference Call

The Company will host a conference call with investors and analysts to discuss
its first quarter 2013 results this morning, May 7, 2013, at 11:00a.m. ET. To
participate, please dial 1-888-317-6016, 1-412-317-6016 in Canada and
1-855-669-9657 for international, approximately 10 minutes before the
scheduled start of the call. The conference call and accompanying presentation
will also be accessible live on the Investor Relations section of the
Company’s website at http://ir.ntelos.com.

An archive of the conference call will be available online at
http://ir.ntelos.com beginning approximately one hour after the call. A replay
will also be available via telephone by dialing 1-877-344-7529 or
1-412-317-0088 internationally and entering access code 10027920 beginning
approximately one hour after the call and continuing until May 15, 2013.

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 and costs related to the separation of the wireless
and wireline operations.

ARPU, or average monthly revenue per user, is computed by dividing service
revenues per period by the average number of subscribers during that period.
Please see the footnotes in the exhibits for a complete definition of this
measure.

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,
provide liquidity for future growth and continue to fund dividends. ARPU
provides management with useful information concerning the appeal of the
Company’s rate plans and service offerings and the Company’s performance in
attracting and retaining high value customers.

Adjusted EBITDA and ARPU 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. (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 approximately
451,000 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 7.9 million
residents, of which its wireless network covers approximately 6.0 million
residents. The Company is also the exclusive wholesale provider of wireless
digital PCS services to Sprint Nextel in the Company’s western Virginia and
West Virginia service area for all Sprint CDMA wireless customers. Additional
information about the Company is available at www.ntelos.com or
www.facebook.com/nteloswireless and www.twitter.com/ntelos_wireless.

SPECIAL NOTE FROM THE COMPANY REGARDING FORWARD-LOOKING STATEMENTS

Any statements contained in this press release 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.

Exhibits:

  *Consolidated Balance Sheets
  *Consolidated Statements of Operations
  *Reconciliation of Net Income Attributable to NTELOS Holdings Corp. to
    Adjusted EBITDA
  *Key Metrics
  *ARPU Reconciliation

                                                          
NTELOS Holdings Corp.                                     
Condensed Consolidated Balance Sheets       (Unaudited)      (Audited)
                                          March 31, 2013  December 31, 2012
(In thousands)
                                                             
ASSETS
Current Assets
Cash                                        $    99,456      $     76,197
Accounts receivable, net                         43,979            51,301
Inventories and supplies                         8,757             9,581
Deferred income taxes                            4,616             4,297
Prepaid expenses and other current assets       18,881           17,695
                                                175,689          159,071
                                                             
Securities and Investments                       1,499             1,499
                                                             
Property, Plant and Equipment, net               300,699           303,103
                                                             
Intangible Assets
Goodwill                                         63,700            63,700
Radio spectrum licenses                          132,033           132,033
Customer relationships and trademarks,           9,243             9,996
net
                                                             
Deferred Charges and Other Assets                10,821            10,712
                                                            
Total Assets                                $    693,684     $     680,114
                                                             
                                                             
LIABILITIES AND EQUITY
Current Liabilities
Current portion of long-term debt           $    5,400       $     5,429
Accounts payable                                 18,468            23,445
Dividends payable                                9,006             -
Accrued expenses and other current              43,063           34,457
liabilities
                                                75,937           63,331
                                                             
Long-Term Debt                                   488,046           488,650
                                                             
Other Long-Term Liabilities                      87,162            83,598
                                                             
Equity                                           42,539            44,535
                                                            
Total Liabilities and Equity                $    693,684     $     680,114

                                                             
NTELOS Holdings Corp.                                        
Condensed Consolidated Statements of          Three Months Ended
Operations
                                               (Unaudited)
(In thousands, except per share amounts)      March 31, 2013  March 31, 2012
                                                                
Operating Revenues                             $  119,345       $  110,540
                                                                
Operating Expenses
Cost of sales and services                        44,535           39,200
Customer operations                               30,954           29,583
Corporate operations                              7,904            7,999
Depreciation and amortization                    18,456        14,907   
                                                 101,849       91,689   
Operating Income                                  17,496           18,851
                                                                
Other Expense
Interest expense                                  (7,361   )       (5,428   )
Other expense, net                               (369     )     (62      )
                                                 (7,730   )     (5,490   )
                                                                
Income before Income Taxes                        9,766            13,361
                                                                
Income Taxes                                     3,744         5,380    
Net Income                                        6,022            7,981
                                                                
Net Income Attributable to Noncontrolling         (529     )       (129     )
Interests
                                                              
Net Income Attributable to NTELOS Holdings     $  5,493       $  7,852    
Corp.
                                                                
                                                                
Earnings per Share Attributable to NTELOS
Holdings Corp.:
                                                                
Basic                                          $  0.26        $  0.38     
Weighted average shares outstanding - basic      20,960        20,849   
                                                                
Diluted                                        $  0.25        $  0.37     
Weighted average shares outstanding -            21,550        21,152   
diluted
                                                                
Cash Dividends Declared per Share - Common     $  0.42        $  0.42     
Stock

                                                             
NTELOS Holdings Corp.                                        
Reconciliation of Net Income (Loss) Attributable to NTELOS Holdings Corp. to
Adjusted EBITDA
(In thousands)                                               
                                           Three Months Ended
                                           March 31, 2013   March 31, 2012
      Net income attributable to NTELOS      $    5,493       $    7,852
        Holdings Corp.
        Net income attributable to                529             129
        noncontrolling interests
        Net income                             $    6,022       $    7,981
                                                                
        Interest expense                            7,361            5,428
        Income taxes                                3,744            5,380
        Other expense, net                        369             62
        Operating income                       $    17,496      $    18,851
                                                                
        Depreciation and amortization               18,456           14,907
        Accretion of asset retirement               143              149
        obligations
        Equity-based compensation                   1,321            1,669
        Business separation charges ^1            -               285
        Adjusted EBITDA                        $    37,416      $    35,861

   
^1   Charges for legal and consulting services in connection with the
     separation of the Company's wireless and wireline operations.

                                                                
NTELOS Holdings                                             
Corp.
Key Metrics                                                 
 Quarter Ended:   3/31/2012  6/30/2012  9/30/2012  12/31/2012  3/31/2013
Subscribers                                                 
 Beginning           414,500     421,300     424,800      430,300     439,600
  Subscribers
  Prepay              122,100     135,300     139,400      141,400     142,200
  Postpay             292,400     286,000     285,400      288,900     297,400
                                                                     
  Gross Additions     45,900      36,800      42,400       46,200      48,500
  Prepay              28,900      20,000      20,400       21,100      28,300
  Postpay             17,000      16,800      22,000       25,100      20,200
                                                                     
  Disconnections      39,100      33,300      36,900       36,900      37,100
  Prepay              17,300      17,200      19,800       21,000      20,200
  Postpay             21,800      16,100      17,100       15,900      16,900
                                                                     
  Net Additions       6,800       3,500       5,500        9,300       11,400
  (Losses)
  Prepay              11,600      2,800       600          100         8,100
  Postpay             (4,800)     700         4,900        9,200       3,300
                                                                     
  Ending              421,300     424,800     430,300      439,600     451,000
  Subscribers
  Prepay              135,300     139,400     141,400      142,200     151,300
  Postpay             286,000     285,400     288,900      297,400     299,700
                                                                     
  Churn, net          3.1%        2.6%        2.9%         2.8%        2.8%
  Prepay              4.5%        4.2%        4.7%         4.9%        4.6%
  Postpay             2.5%        1.9%        2.0%         1.8%        1.9%
                                                                     
Other Items                                                 
                                                                     
  ARPU              $ 49.08     $ 49.41     $ 50.93     $  52.78     $ 53.87
  Prepay            $ 36.56     $ 34.89     $ 34.50     $  35.41     $ 35.85
  Postpay           $ 54.63     $ 56.42     $ 58.97     $  61.19     $ 62.67
                                                                     
  Data ARPU         $ 19.05     $ 19.65     $ 20.25     $  21.03     $ 21.86
                                                                     
  Licensed
  Population          8.1         8.1         8.1          7.9         7.9
  (millions)
                                                                     
  Covered
  Population          5.9         6.0         6.0          6.0         6.0
  (millions)
                                                                     
  Total Cell          1,365       1,378       1,396        1,429       1,431
  Sites
                                                                     
  Strategic Network Alliance
  Revenues (000's)
  Total Voice       $ 23,533    $ 23,856    $ 24,655    $  24,141    $ 23,268
  Total Data        16,347    16,536    16,971     16,606    16,884
  Total            $ 39,880   $ 40,392   $ 41,626   $  40,747   $ 40,152


Gross Additions, Disconnections and Churn exclude customer returns within 14
calendar days. From 11/1/11 to 4/4/12, the customer return period was 30
calendar days.

                                                             
NTELOS Holdings Corp.                                        
ARPU Reconciliation                                          
Average Monthly Revenue per User (ARPU) ^1    March 31, 2013  March 31, 2012
(In thousands, except for subscribers and
ARPU)
                                                                
Operating Revenues                             $  119,345       $  110,540
Less: Equipment revenue from sales to new         (3,521   )       (3,874   )
customers
Less: Equipment revenue from sales to             (3,117   )       (4,403   )
existing customers
Less: Wholesale, other and adjustments          (40,918  )     (40,836  )
Gross subscriber revenue                          71,789           61,427
                                                                
Less: prepay subscriber revenue                   (15,205  )       (13,403  )
Less: adjustments to prepay subscriber          (479     )     (653     )
revenue
Gross postpay subscriber revenue              $  56,105      $  47,371   
                                                                
Prepay subscriber revenue                         15,205           13,403
Plus: adjustments to prepay subscriber          479           653      
revenue
Gross prepay subscriber revenue               $  15,684      $  14,056   
                                                                
Average number of subscribers                   444,244       417,195  
Total ARPU                                    $  53.87       $  49.08    
                                                                
Average number of postpay subscribers           298,414       289,047  
Postpay ARPU                                  $  62.67       $  54.63    
                                                                
Average number of prepay subscribers            145,831       128,148  
Prepay ARPU                                   $  35.85       $  36.56    
                                                                
Gross subscriber revenue                          71,789           61,427
Less: voice and other feature revenue           (42,658  )     (37,579  )
Data revenue                                  $  29,131      $  23,848   
                                                                
Average number of subscribers                   444,244       417,195  
Total Data ARPU                               $  21.86       $  19.05    
                                                                
Gross postpay subscriber revenue                  56,105           47,371
Less: postpay voice and other feature           (35,952  )     (31,432  )
revenue
Postpay data revenue                          $  20,153      $  15,939   
                                                                
Gross prepay subscriber revenue                   15,684           14,056
Less: prepay voice and other feature revenue    (6,706   )     (6,147   )
Prepay data revenue                           $  8,978       $  7,909    
                                                                
Average number of postpay subscribers           298,414       289,047  
Postpay data ARPU                             $  22.51       $  18.38    
                                                                
Average number of prepay subscribers            145,831       128,148  
Prepay data ARPU                              $  20.52       $  20.57    

   
     Average monthly revenue per user (ARPU) is computed by dividing service
     revenues per period by the average number of subscribers during that
     period. ARPU as defined may not be similar to ARPU 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
^1   the Company’s consolidated statements of operations. The Company closely
     monitors the effects of new rate plans and service offerings on ARPU in
     order to determine their effectiveness. ARPU 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.

Contact:

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