NTELOS Holdings Corp. Reports Fourth Quarter and Year-End 2013 Results

    NTELOS Holdings Corp. Reports Fourth Quarter and Year-End 2013 Results

-Reports Full Year Retail Revenue of $317.1 million, up 11% from 2012

-Reports Year End Subscribers of 464,600, up 6% from 2012

-Completes Refinancing of Term A Loans in January

-Declares Quarterly Dividend of $0.42 Per Share

PR Newswire

WAYNESBORO, Va., Feb. 27, 2014

WAYNESBORO, Va., Feb. 27, 2014 /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 and financial results for its fourth quarter and
year ended December 31, 2013. These results supplement the preliminary
information released on January 14, 2014.

Financial Highlights

  oOperating revenues increased 4% to $121.8 million for the fourth quarter
    2013, compared to $117.4 million for the fourth quarter 2012. Operating
    revenues for the year 2013 increased 8% to $491.9 million, compared to
    $454.0 million for the year 2012;

  oRetail revenues, which include subscriber and equipment revenue, increased
    8% to $80.8 million for the fourth quarter 2013, compared to $75.1 million
    for the fourth quarter 2012. Retail revenues for the year 2013 increased
    11% to $317.1 million, compared to $285.1 million for the year 2012;

  oWholesale and other revenues derived primarily from the Company's
    Strategic Network Alliance with Sprint were $41.0 million for the fourth
    quarter 2013, compared to $42.2 million for the fourth quarter 2012.
    Wholesale and other revenues for the year 2013 were $174.8 million
    (inclusive of $9.0 million related to the Sprint settlement), compared to
    $168.9 million for the year 2012; and

  oAdjusted EBITDA was $26.7 million for the fourth quarter 2013, compared to
    $33.0 million for the fourth quarter 2012. Adjusted EBITDA for the year
    2013 was $150.9 million (inclusive of $9.6 million related to the Sprint
    settlement), up 12% from $134.7 million for the year 2012.

"During the fourth quarter, we continued to execute on our retail/wholesale
strategy. Our operating results reflect the continued strength of our service
offerings, resulting in the tenth consecutive quarter of positive net ports
and an ending subscriber base approximately 6% above year ago levels," said
James A. Hyde, CEO of NTELOS Holdings Corp. "This performance in our retail
business enabled us to post a third consecutive year of strong growth in
operating revenues."

Subscriber Highlights (previously released on January 14, 2014)

Total Subscribers

  oTotal subscribers were 464,600 as of December 31, 2013, compared to
    439,600 for the same period of 2012;

  oTotal subscriber gross additions for the fourth quarter 2013 were 50,800,
    compared to 46,200 for the same period of 2012. Total net subscriber
    additions for the fourth quarter 2013 were 7,500, compared to 9,300 for
    the same period of 2012; and

  oTotal subscriber gross additions for the year 2013 were 183,900 compared
    to 171,300 for the year 2012. Total net subscriber additions for the year
    2013 were 25,000, compared to 25,100 for the year 2012.

Postpay Subscribers

  oPostpay subscriber gross additions for the fourth quarter 2013 were
    28,700, compared to 25,100 for the fourth quarter 2012 and 20,000 for the
    third quarter 2013;

  oNet postpay subscriber additions were 8,900 for the fourth quarter 2013,
    compared to 9,200 for the fourth quarter 2012 and 400 for the third
    quarter 2013;

  oPostpay churn for the fourth quarter 2013 was 2.2%, compared to 1.8% for
    the fourth quarter 2012; and

  oAs of December 31, 2013, total postpay subscribers were 306,700.

Prepay Subscribers

  oPrepay subscriber gross additions for the fourth quarter 2013 were 22,100,
    compared to 21,100 for the fourth quarter 2012 and 24,500 for the third
    quarter 2013;

  oNet prepay subscriber additions (losses) were (1,400) for the fourth
    quarter 2013, compared to 100 for the fourth quarter 2012 and 1,900 for
    the third quarter 2013;

  oPrepay churn for the fourth quarter 2013 was 4.9%, compared to 4.9% for
    the fourth quarter 2012; and

  oAs of December 31, 2013, total prepay subscribers were 157,900.

Mr. Hyde concluded, "We expect the wireless environment to remain very
dynamic. As a result, we will continue to take decisive actions to be
competitive, including the introduction of nControl—our new and innovative
service offering—to attract new and retain existing customers. We believe that
these actions, combined with the further rollout of our LTE network and the
recently completed and successful refinancing of our bank loans, will allow us
to continue to drive value for all of our key stakeholders."

Net Income

Net income after net income attributable to noncontrolling interests was $24.7
million, or $1.13 per diluted share, for the year 2013, compared to $18.4
million, or $0.86 per diluted share, for the year 2012.

Declaration of Dividend

On February 24, 2014, 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 April 11, 2014 to stockholders of record on March 14, 2014.

Business Outlook

As previously released, for the year ending December 31, 2014, the Company
expects full year 2014 Adjusted EBITDA to be between $140.0 million and $150.0
million. In addition, the Company expects its full year 2013 capital
expenditures to be between $85.0 million and $95.0 million.

Conference Call

The Company will host a conference call with investors and analysts to discuss
its fourth quarter and year-end 2013 results this morning, February 27, 2014,
at 10:00a.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 10039912
beginning approximately one hour after the call and continuing until March 14,
2014.

Non-GAAP Measures

Adjusted EBITDA is defined as net income attributable to NTELOS Holdings Corp.
before interest, income taxes, depreciation and amortization, accretion of
asset retirement obligations, gain/loss on sale of assets and derivatives, net
income attributable to noncontrolling interests, other expenses/income,
equity-based compensation charges, business separation charges, secondary
offering cost, net loss from discontinued operations and acquisition related
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 over 464,600
retail subscribers based in Virginia, West Virginia and portions of Maryland,
North Carolina, Pennsylvania, Ohio and Kentucky. The Company's licensed
territories have a total population of approximately 8.0 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:

  oCondensed Consolidated Balance Sheets
  oCondensed Consolidated 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)
                                          December 31, 2013  December 31, 2012
(In thousands)
         ASSETS
Current Assets
 Cash                                     $    88,441    $    76,197
 Restricted cash                          2,167              -
 Accounts receivable, net                 37,740             51,301
 Inventories and supplies                 23,962             9,581
 Deferred income taxes                    10,650             4,297
 Prepaid expenses and other current       20,808             17,695
 assets
                                          183,768            159,071
Securities and Investments                1,499              1,499
Property, Plant and Equipment, net       319,376            303,103
Intangible Assets
 Goodwill                                 63,700             63,700
 Radio spectrum licenses                  131,834            132,033
 Customer relationships and trademarks,   6,985              9,996
 net
Deferred Charges and Other Assets         9,089              10,712
Total Assets                              $    716,251    $    680,114
         LIABILITIES AND EQUITY
Current Liabilities
 Current portion of long-term debt        $     5,410   $     5,429
 Accounts payable                         33,677             23,445
 Dividends payable                        9,034              -
 Accrued expenses and other current       31,389             34,457
 liabilities
                                          79,510             63,331
Long-Term Debt                            484,956            488,650
Other Long-Term Liabilities               107,992            83,598
Equity                                   43,793             44,535
Total Liabilities and Equity             $    716,251    $    680,114





NTELOS Holdings Corp.
Condensed Consolidated    Three Months Ended         Twelve Months Ended
Statements of Operations
                          (Unaudited)                (Unaudited)
(In thousands, except per December 31, December 31,  December 31, December 31,
share amounts)            2013         2012          2013         2012
Operating Revenues ^     $ 121,766   $ 117,398    $ 491,882   $ 453,989
Operating Expenses
    Cost of sales and     50,977       47,420        184,590      174,683
    services
    Customer operations  37,513       30,691        130,650      120,150
    Corporate operations 8,426        7,848         32,304       32,756
    Depreciation and      17,486       17,440        72,944       63,258
    amortization 
    Gain on sale of       -            -             (4,442)      -
    intangible assets
                          114,402      103,399       416,046      390,847
Operating Income          7,364        13,999        75,836       63,142
Other Expense
    Interest expense    (7,504)      (6,651)       (29,743)     (22,944)
    Other expense, net    (161)        (7,038)       (810)        (7,194)
                          (7,665)      (13,689)      (30,553)     (30,138)
Income (Loss) before      (301)        310           45,283       33,004
Income Taxes
Income Taxes           80           (454)         18,544       12,676
Net Income (Loss)         (381)        764           26,739       20,328
Net Income Attributable
to Noncontrolling         (403)        (443)         (2,061)      (1,941)
Interests
Net Income (Loss)         $   
Attributable to NTELOS    (784)        $    321  $  24,678  $  18,387
Holdings Corp.
Earnings per Share
Attributable to NTELOS
Holdings Corp.:
    Basic                 $          $    0.02  $    1.17 $    0.88
                          (0.04)
    Weighted average
    shares outstanding -  21,061       20,922        21,026       20,889
    basic
    Diluted               $          $    0.02  $    1.13 $    0.86
                          (0.04)
    Weighted average
    shares outstanding -  22,008       21,380        21,826       21,337
    diluted
Cash Dividends Declared   $    0.42 $    0.42  $    1.68 $    1.68
per Share - Common Stock





NTELOS Holdings Corp.
Reconciliation of Net Income Attributable
to NTELOS Holdings Corp. to Adjusted
EBITDA^
(In thousands)
                              Three Months Ended       Twelve Months Ended
                              December 31,  December     December    December
                              2013          31, 2012     31, 2013    31, 2012
    Net income attributable   $        $       $       $    
    to NTELOS Holdings Corp.     (784)      321             
                                                         24,678     18,387
    Net income attributable
    to noncontrolling         403           443          2,061       1,941
    interests
                              $        $       $       $    
    Net income                 (381)      764             
                                                         26,739     20,328
    Interest expense         7,504         6,651        29,743      22,944
    Income taxes             80            (454)        18,544      12,676
    Other expense, net        161           7,038        810         7,194
                              $        $       $       $    
    Operating income            7,364     13,999               
                                                         75,836     63,142
    Depreciation and          17,486        17,440       72,944      63,258
    amortization
    Gain on sale of           -             -            (4,442)     -
    intangible assets
    Accretion of asset        171           174          622         637
    retirement obligations
    Equity-based compensation 1,330         1,346        5,553       6,029
    Business separation and   375           56           375         1,660
    advisory charges ^1 2
                              $        $       $       $    
    Adjusted EBITDA            26,726      33,015               
                                                         150,888     134,726
    Charges for legal and consulting services in connection with
 ^1 the separation of the Company's wireless and wireline
    operations in 2012.
    Charges for advisory fees
 ^2 for secondary offering in
    2013.





NTELOS Holdings Corp.
Key Metrics                                                          Twelve Months Ended
 Quarter Ended: 12/31/2012 3/31/2013 6/30/2013 9/30/2013 12/31/2013  12/31/2012 12/31/2013
Subscribers
 Beginning      430,300    439,600   451,000   454,800   457,100     414,500    439,600
 Subscribers
 Postpay        288,900    297,400   299,700   298,700   298,000     292,400    297,400
 Prepay         141,400    142,200   151,300   156,100   159,100     122,100    142,200
 Gross          46,200     48,500    40,100    44,500    50,800      171,300    183,900
 Additions
 Postpay        25,100     20,200    16,300    20,000    28,700      80,900     85,200
 Prepay         21,100     28,300    23,800    24,500    22,100      90,400     98,700
 Disconnections 36,900     37,100    36,300    42,200    43,300      146,200    158,900
 Postpay        15,900     16,900    16,100    19,600    19,800      70,900     72,400
 Prepay         21,000     20,200    20,200    22,600    23,500      75,300     86,500
 Net Additions  9,300      11,400    3,800     2,300     7,500       25,100     25,000
 (Losses)
 Postpay        9,200      3,300     200       400       8,900       10,000     12,800
 Prepay         100        8,100     3,600     1,900     (1,400)     15,100     12,200
 Ending         439,600    451,000   454,800   457,100   464,600     439,600    464,600
 Subscribers
 Postpay        297,400    299,700   298,700   298,000   306,700     297,400    306,700
 Prepay         142,200    151,300   156,100   159,100   157,900     142,200    157,900
 Churn, net     2.8%       2.8%      2.7%      3.1%      3.1%        2.9%       2.9%
 Postpay        1.8%       1.9%      1.8%      2.2%      2.2%        2.0%       2.0%
 Prepay         4.9%       4.6%      4.4%      4.8%      4.9%        4.6%       4.7%
Other Items
 ARPU           $  52.78 $ 53.87  $ 53.82  $ 54.29  $  54.11  $  50.57 $  54.02
 Postpay        $  61.19 $ 62.67  $ 63.48  $ 64.62  $  63.91  $  57.82 $  63.67
 Prepay         $  35.41 $ 35.85  $ 35.04  $ 34.80  $  35.56  $  35.31 $  35.30
 Data ARPU      $  21.03 $ 21.86  $ 22.14  $ 22.35  $  24.73  $  20.00 $  22.78
 Licensed
 Population     7.9        7.9       7.9       7.9       8.0         7.9        8.0
 (millions)
 Covered
 Population     6.0        6.0       6.0       6.0       6.0         6.0        6.0
 (millions)
 Total Cell     1,429      1,431     1,432     1,434     1,444       1,429      1,444
 Sites
 SNA Revenues   $ 40,747  $40,152   $39,607   $48,644   $ 39,326   $162,645   $167,729
 (000's)





NTELOS Holdings Corp.
ARPU Reconciliation    Three Months Ended         Twelve Months Ended
Average Monthly        December 31,  December     December     December
Revenue per User       2013          31, 2012     31, 2013     31, 2012
(ARPU) ^1
(In thousands, except
for subscribers and
ARPU)
Operating Revenues     $        $        $        $     
                        121,766       117,398    491,882    453,989
Less: Equipment
revenue from sales to  (3,691)        (3,808)       (13,911)      (15,041)
new customers
Less: Equipment
revenue from sales to  (2,882)        (3,315)       (11,340)      (15,037)
existing customers
Less: Wholesale, other (40,525)       (41,488)      (172,764)     (165,765)
and adjustments
Gross subscriber      74,668         68,787        293,867       258,146
revenue
Less: prepay          (16,494)       (14,823)      (63,826)      (56,330)
subscriber revenue
Less: adjustments to
prepay subscriber      (462)          (237)         (1,474)       (1,706)
revenue
Gross postpay         $        $        $        $     
subscriber revenue    57,712                 228,567    200,110
                                      53,727
Prepay subscriber      16,494         14,823        63,826        56,330
revenue
Plus: adjustments to
prepay subscriber      462            237           1,474         1,706
revenue
Gross prepay          $        $        $        $     
subscriber revenue      16,956                            
                                      15,060       65,300       58,036
Average number of      459,968        434,457       453,300       425,377
subscribers
                       $        $        $        $     
Total ARPU            54.11                           
                                      52.78         54.02         50.57
Average number of      301,028        292,668       299,161       288,428
postpay subscribers
                       $        $        $        $     
Postpay ARPU          63.91                           
                                      61.19         63.67         57.82
Average number of      158,940        141,789       154,138       136,949
prepay subscribers
                       $        $        $        $     
Prepay ARPU             35.56                           
                                      35.41         35.30         35.31
Gross subscriber       74,668         68,787        293,867       258,146
revenue
Less: voice and other  (40,544)       (41,379)      (169,952)     (156,032)
feature revenue
                       $        $        $        $     
Data revenue          34,124                 123,915    102,114
                                      27,408
Average number of      459,968        434,457       453,300       425,377
subscribers
                       $        $        $        $     
Total Data ARPU       24.73                           
                                      21.03         22.78         20.00
Gross postpay          57,712         53,727        228,567       200,110
subscriber revenue
Less: postpay voice
and other feature      (33,368)       (34,651)      (142,142)     (130,601)
revenue
Postpay data          $        $        $        $     
revenue                24,344                            
                                      19,076       86,425       69,509
Gross prepay           16,956         15,060        65,300        58,036
subscriber revenue
Less: prepay voice and (7,176)        (6,728)       (27,810)      (25,431)
other feature revenue
                       $        $        $        $     
Prepay data revenue    9,780                           
                                      8,332         37,490       32,605
Average number of      301,028        292,668       299,161       288,428
postpay subscribers
                       $        $        $        $     
Postpay data ARPU     26.96                           
                                      21.73         24.07         20.08
Average number of      158,940        141,789       154,138       136,949
prepay subscribers
                       $        $        $        $     
Prepay data ARPU          20.51                           
                                      19.59         20.27         19.84

   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.
 
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