NTELOS Holdings Corp. Reports Third Quarter 2013 Operating Results

      NTELOS Holdings Corp. Reports Third Quarter 2013 Operating Results

-Seventh Consecutive Quarter of Positive Net Adds

-Quarterly Adjusted EBITDA of $45.6 Million

-Company Declares Quarterly Dividend of $0.42 per Share

PR Newswire

WAYNESBORO, Va., Nov. 5, 2013

WAYNESBORO, Va., Nov. 5, 2013 /PRNewswire/ --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 third quarter ended September 30,
2013.

Third Quarter Highlights

  oOperating revenues for the third quarter 2013 increased 14.4% to $130.9
    million, compared to $114.5 million for the same period in 2012;
  oSubscriber revenues increased 14.4% to $73.7 million for the third quarter
    2013, compared to $64.4 million for the third quarter 2012;
  oTotal subscriber gross additions were 44,500 for the third quarter 2013,
    compared to 42,400 for the third quarter 2012 and 40,100 for the second
    quarter 2013; and
  oTotal net subscriber additions were 2,300 for the third quarter 2013,
    marking the seventh straight quarter of positive subscriber growth.

"The favorable settlement with Sprint over disputes related to our Strategic
Network Alliance announced last month capped off a successful third quarter of
2013. We believe the settlement ensures that our wholesale revenues will
continue at levels consistent with recent quarters and, perhaps more
importantly, establishes a foundation from which we will look to extend and
expand our relationship," said James A. Hyde, CEO of NTELOS Holdings Corp.
"Meantime, we continue to be pleased with the growth of our retail business as
we increased subscribers for the seventh straight quarter."

Highlights from Operations

  oRetail revenues, which include subscriber and equipment revenue, increased
    12.8% to $80.3 million for the third quarter 2013, compared to $71.1
    million for the third quarter 2012;
  oWholesale and other revenue derived primarily from the Company's Strategic
    Network Alliance with Sprint were $50.6 million for the third quarter 2013
    (inclusive of $9.0 million related to the Sprint settlement), compared to
    $43.3 million for the third quarter 2012; and
  oAdjusted EBITDA was $45.6 million for the third quarter 2013, compared to
    $31.9 million for the third quarter 2012.

Total Subscribers

  oTotal subscribers were 457,100 as of September 30, 2013, compared to
    430,300 for the same period of 2012;
  oTotal subscriber gross additions for the third quarter were 44,500,
    compared to 42,400 for the same period of 2012
  oBlended ARPU increased 6.6% to $54.29 for the third quarter, compared to
    $50.93 for the same period in 2012; and
  oTotal net subscriber additions for the third quarter were 2,300, compared
    to 5,500 for the same period of 2012.

Postpay Subscribers

  oPostpay subscriber gross additions for the third quarter 2013 were 20,000,
    compared to 22,000 for the third quarter 2012 and 16,300 for the second
    quarter 2013;
  oNet postpay subscriber additions were 400 for the third quarter 2013,
    compared to 4,900 for the third quarter 2012 and 200 for the second
    quarter 2013;
  oPostpay churn for the third quarter 2013 was 2.2%, compared to 2.0% for
    the third quarter 2012 and 1.8% for the second quarter of 2013;
  oPostpay ARPU increased 9.6% to $64.62 for the third quarter, compared to
    $58.97 for the same period in 2012; and
  oAs of September 30, 2013, total postpay subscribers were 298,000.

Prepay Subscribers

  oPrepay subscriber gross additions for the third quarter 2013 were 24,500,
    compared to 20,400 for the third quarter 2012 and 23,800 for the second
    quarter 2013;
  oNet prepay subscriber additions were 1,900 for the third quarter 2013,
    compared to 600 for the third quarter 2012 and 3,600 for the second
    quarter 2013;
  oPrepay churn for the third quarter 2013 was 4.8%, compared to 4.7% for the
    third quarter 2012 and 4.4% for the second quarter of 2013;
  oPrepay ARPU increased 0.9% to $34.80 for the third quarter, compared to
    $34.50 for the same period in 2012; and
  oAs of September 30, 2013, total prepay subscribers were 159,100.

Mr. Hyde concluded, "Looking ahead, we are implementing a number of
initiatives that we expect will enhance our service offerings and value
proposition. Our LTE roll out remains on schedule and we expect to launch the
service in our first markets in the coming weeks. As we upgrade our network,
we are optimizing our rate plans and expanding our smartphone lineup to better
meet our customers' needs and further support the resurgence of our retail
business. Finally, as we announced last month, we are expanding our pilot
program with DISH Network to provide fixed-mobile broadband services across
larger portions of our footprint, with Phase II coverage of approximately
500,000 residents. Overall, we are excited about the direction of our business
and will continue to take definitive actions to drive value for all key
stakeholders."

Net Income

Net income after net income attributable to noncontrolling interests was $10.6
million, or $0.48 per diluted share, for the third quarter 2013 compared to
$4.6 million, or $0.22 per diluted share, for the third quarter 2012.

Declaration of Dividend

On October 23, 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 January 10, 2014 to stockholders of record on December 13, 2013.

Business Outlook

For the year ending December 31, 2013, the Company reiterates its full year
2013 Adjusted EBITDA guidance of between $150.0 million and $155.0 million.
In addition, the Company expects its full year 2013 capital expenditures to be
approximately $80.0 million (previous range was $75.0 million and $85.0
million).

Conference Call

The Company will host a conference call with investors and analysts to discuss
its third quarter 2013 results this morning, November 5, 2013, at 11:00a.m.
ET. To participate, please dial 1-888-317-6016, 1-855-669-9657 in Canada and
1-412-317-6016 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.combeginning approximately one hour after the call. A replay
will also be available via telephone by dialing 1-877-344-7529, 1-855-669-9658
in Canada or 1-412-317-0088 internationally and entering access code 10035485
beginning approximately one hour after the call and continuing until November
20, 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 sale of assets and derivatives, net
income attributable to noncontrolling interests, other expenses/income,
equity-based compensation charges and business separation charges.

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
457,100 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 Corporation in the Company's western Virginia
and West Virginia service area for all Sprint CDMA wireless customers.

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:

  oConsolidated Balance Sheets
  oConsolidated Statements of Operations
  oReconciliation of Net Income Attributable to NTELOS Holdings Corp. to
    Adjusted EBITDA
  oKey Metrics
  oARPU Reconciliation

NTELOS Holdings Corp.
Condensed Consolidated Balance Sheets (Unaudited)          (Unaudited)
                                      September 30, 2013   December 31, 2012
(In thousands)
       ASSETS
Current Assets
 Cash                                 $             $        
                                      110,897             76,197
 Restricted cash                      2,167                -
 Accounts receivable, net             30,832               51,301
 Inventories and supplies             14,468               9,581
 Deferred income taxes                8,403                4,297
 Prepaid expenses and other current   18,294               17,695
 assets
                                      185,061              159,071
Securities and Investments            1,499                1,499
Property, Plant and Equipment, net   312,486              303,103
Intangible Assets
 Goodwill                             63,700               63,700
 Radio spectrum licenses              131,833              132,033
 Customer relationships and           7,737                9,996
 trademarks, net
Deferred Charges and Other Assets     9,637                10,712
Total Assets                          $             $       
                                      711,953             680,114
       LIABILITIES AND EQUITY
Current Liabilities
 Current portion of long-term debt    $           $         
                                      5,430                5,429
 Accounts payable                     28,781               23,445
 Dividends payable                    9,029                -
 Accrued expenses and other current   30,620               34,457
 liabilities
                                      73,860               63,331
Long-Term Debt                        486,074              488,650
Other Long-Term Liabilities           104,285              83,598
Equity                               47,734               44,535
Total Liabilities and Equity         $             $       
                                      711,953             680,114





NTELOS Holdings Corp.
Condensed Consolidated      Three Months Ended         Nine Months Ended
Statements of Operations
                            (Unaudited)                (Unaudited)
(In thousands, except per   September 30, September    September   September
share amounts)              2013          30, 2012     30, 2013    30, 2012
Operating Revenues ^       $          $         $        $   
                            130,912      114,466     370,116    336,591
Operating Expenses
   Cost of sales and        46,511        46,270       133,613     127,263
   services
   Customer operations     32,206        30,068       93,137      89,459
   Corporate operations    8,214         8,599        23,878      24,908
   Depreciation and         16,559        15,810       55,458      45,818
   amortization 
   Gain on sale of          -             -            (4,442)     -
   intangible assets
                            103,490       100,747      301,644     287,448
Operating Income            27,422        13,719       68,472      49,143
Other Income (Expense)
   Interest expense       (7,480)       (5,432)      (22,239)    (16,293)
   Other income (expense),  (431)         (50)         (649)       (156)
   net
                            (7,911)       (5,482)      (22,888)    (16,449)
Income before Income Taxes  19,511        8,237        45,584      32,694
Income Taxes             8,340         3,141        18,464      13,130
Net Income                  11,171        5,096        27,120      19,564
Net Income Attributable to  (588)         (488)        (1,658)     (1,498)
Noncontrolling Interests
Net Income Attributable to  $         $       $       $    
NTELOS Holdings Corp.       10,583       4,608        25,462     18,066
Earnings per Share
Attributable to NTELOS
Holdings Corp.:
   Basic                    $       $       $      $     
                            0.50           0.22        1.21       0.87
   Weighted average shares  21,047        20,900       20,987      20,877
   outstanding - basic
   Diluted                  $       $       $      $     
                            0.48           0.22        1.17       0.85
   Weighted average shares  21,910        21,375       21,708      21,317
   outstanding - diluted
Cash Dividends Declared per $       $       $      $     
Share - Common Stock        0.42           0.42        1.26       1.26





NTELOS Holdings Corp.
Reconciliation of Net Income Attributable to NTELOS Holdings Corp. to Adjusted
EBITDA^
(In thousands)
                           Three Months Ended       Nine Months Ended
                           September     September    September    September
                           30, 2013      30, 2012     30, 2013     30, 2012
    Net income             $        $       $       $     
    attributable to NTELOS    10,583                       
    Holdings Corp.                       4,608        25,462       18,066
    Net income
    attributable to        588           488          1,658        1,498
    noncontrolling
    interests
                           $        $       $       $     
    Net income              11,171                       
                                         5,096        27,120       19,564
    Interest expense      7,480         5,432        22,239       16,293
    Income taxes          8,340         3,141        18,464       13,130
    Other expense, net     431           50           649          156
                           $        $       $       $     
    Operating income          27,422                        
                                         13,719       68,472       49,143
    Depreciation and       16,559        15,810       55,458       45,818
    amortization
    Gain on sale of        -             -            (4,442)      -
    intangible assets
    Accretion of asset     135           163          451          463
    retirement obligations
    Equity-based           1,442         1,478        4,223        4,683
    compensation
    Business separation    -             684          -            1,604
    charges ^1
                           $        $       $       $     
    Adjusted EBITDA           45,558              124,162    101,711
                                         31,854
    Charges for legal and consulting services in connection with
 ^1 the separation of the Company's wireless and wireline
    operations.





NTELOS Holdings Corp.
Key Metrics                                                          Nine Months Ended
 Quarter Ended:  9/30/2012 12/31/2012 3/31/2013 6/30/2013 9/30/2013  9/30/2012 9/30/2013
Subscribers
 Beginning       424,800   430,300    439,600   451,000   454,800    414,500   439,600
 Subscribers
 Postpay         285,400   288,900    297,400   299,700   298,700    292,400   297,400
 Prepay          139,400   141,400    142,200   151,300   156,100    122,100   142,200
 Gross           42,400    46,200     48,500    40,100    44,500     125,100   133,100
 Additions
 Postpay         22,000    25,100     20,200    16,300    20,000     55,800    56,500
 Prepay          20,400    21,100     28,300    23,800    24,500     69,300    76,600
 Disconnections  36,900    36,900     37,100    36,300    42,200     109,300   115,600
 Postpay         17,100    15,900     16,900    16,100    19,600     55,000    52,600
 Prepay          19,800    21,000     20,200    20,200    22,600     54,300    63,000
 Net Additions   5,500     9,300      11,400    3,800     2,300      15,800    17,500
 (Losses)
 Postpay         4,900     9,200      3,300     200       400        800       3,900
 Prepay          600       100        8,100     3,600     1,900      15,000    13,600
 Ending          430,300   439,600    451,000   454,800   457,100    430,300   457,100
 Subscribers
 Postpay         288,900   297,400    299,700   298,700   298,000    288,900   298,000
 Prepay          141,400   142,200    151,300   156,100   159,100    141,400   159,100
 Churn, net      2.9%      2.8%       2.8%      2.7%      3.1%       2.9%      2.8%
 Postpay         2.0%      1.8%       1.9%      1.8%      2.2%       1.9%      2.0%
 Prepay          4.7%      4.9%       4.6%      4.4%      4.8%       4.5%      4.6%
Other Items
 ARPU            $       $        $       $       $        $       $  
                 50.93    52.78     53.87    53.82    54.29     49.82    53.99
 Postpay         $       $        $       $       $        $       $  
                 58.97    61.19     62.67    63.48    64.62     56.67    63.59
 Prepay          $       $        $       $       $        $       $  
                 34.50    35.41     35.85    35.04    34.80     35.28    35.21
 Data ARPU       $       $        $       $       $        $       $  
                 20.25    21.03     21.86    22.14    22.35     19.65    22.12
 Licensed
 Population      8.1       7.9        7.9       7.9       7.9        8.1       7.9
 (millions)
 Covered
 Population      6.0       6.0        6.0       6.0       6.0        6.0       6.0
 (millions)
 Total Cell      1,396     1,429      1,431     1,432     1,434      1,396     1,434
 Sites
 SNA Revenues    $        $         $        $        $         $         $
 (000's)         41,626   40,747    40,152   39,607   48,644    121,898  128,403





NTELOS Holdings Corp.
ARPU Reconciliation   Three Months Ended          Nine Months Ended
Average Monthly       September     September     September    September
Revenue per User      30, 2013      30, 2012      30, 2013     30, 2012
(ARPU) ^1
(In thousands, except
for subscribers and
ARPU)
Operating Revenues    $        $        $        $     
                       130,912       114,466        370,116     336,591
Less: Equipment
revenue from sales to (3,595)        (3,333)        (10,220)      (11,233)
new customers
Less: Equipment
revenue from sales to (2,946)        (3,416)        (8,458)       (11,722)
existing customers
Less: Wholesale,      (50,142)       (42,380)       (132,239)     (124,277)
other and adjustments
Gross subscriber     74,229         65,337         219,199       189,359
revenue
Less: prepay         (16,248)       (14,103)       (47,332)      (41,507)
subscriber revenue
Less: adjustments to
prepay subscriber     (230)          (434)          (1,012)       (1,469)
revenue
Gross postpay        $        $        $        $     
subscriber revenue   57,751       50,800       170,855     146,383
Prepay subscriber     16,248         14,103         47,332        41,507
revenue
Plus: adjustments to
prepay subscriber     230            434            1,012         1,469
revenue
Gross prepay         $        $        $        $     
subscriber revenue     16,478       14,537        48,344     42,976
Average number of     455,724        427,610        451,077       422,351
subscribers
                      $        $        $        $     
Total ARPU           54.29       50.93                 
                                                    53.99         49.82
Average number of     297,900        287,165        298,539       287,015
postpay subscribers
                      $        $        $        $     
Postpay ARPU         64.62       58.97                 
                                                    63.59         56.67
Average number of     157,824        140,446        152,537       135,336
prepay subscribers
                      $        $        $        $     
Prepay ARPU            34.80       34.50                 
                                                    35.21         35.28
Gross subscriber      74,229         65,337         219,199       189,359
revenue
Less: voice and other (43,672)       (39,366)       (129,408)     (114,653)
feature revenue
Data revenue       $        $        $        $     
                        30,557       25,971        89,791     74,706
Average number of     455,724        427,610        451,077       422,351
subscribers
                      $        $        $        $     
Total Data ARPU      22.35       20.25                 
                                                    22.12         19.65
Gross postpay         57,751         50,800         170,855       146,383
subscriber revenue
Less: postpay voice
and other feature     (36,652)       (33,028)       (108,774)     (95,950)
revenue
Postpay data         $        $        $        $     
revenue               21,099       17,772        62,081     50,433
Gross prepay          16,478         14,537         48,344        42,976
subscriber revenue
Less: prepay voice
and other feature     (7,020)        (6,338)        (20,634)      (18,703)
revenue
Prepay data          $        $        $        $     
revenue                9,458       8,199       27,710     24,273
Average number of     297,900        287,165        298,539       287,015
postpay subscribers
                      $        $        $        $     
Postpay data ARPU    23.61       20.63                 
                                                    23.11         19.52
Average number of     157,824        140,446        152,537       135,336
prepay subscribers
                      $        $        $        $     
Prepay data ARPU     19.98       19.46                 
                                                    20.18         19.93

   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 the
^1 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.

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 Holdings Corp.

Website: http://ir.ntelos.com
 
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