NTELOS Holdings Corp. Reports Second Quarter 2014 Results

          NTELOS Holdings Corp. Reports Second Quarter 2014 Results

-Renewed Agreement with Sprint extended to December 2022

-Ninth Consecutive Quarter of Positive Net Postpay Adds

PR Newswire

WAYNESBORO, Va., July 28, 2014

WAYNESBORO, Va., July 28, 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 second quarter ended
June 30, 2014.

Second Quarter 2014 Highlights

  oExtended and amended Strategic Network Alliance ("SNA") with Sprint until
    December 2022;
  oLaunched 4G LTE in Richmond and Norfolk metropolitan markets, providing
    coverage of 2.8 million POPs as of June 30, 2014;
  oOperating revenues were $117.8 million for the second quarter 2014;
    compared to $119.9 million for the second quarter 2013; and
  oAdjusted EBITDA was $34.4 million for the second quarter 2014, compared to
    $41.2 million for the second quarter 2013.

"The successful extension and expansion of our SNA with Sprint during the
quarter marked a significant milestone for nTelos. We are pleased with this
outcome as it paves the way for nTelos to build the most robust network in our
footprint and to deliver an improved user experience to our retail and
wholesale customers," said Michael A. Huber, Chairman of the Board of NTELOS
Holdings Corp.

Subscriber Highlights

Total Subscribers

  oTotal subscribers were 458,100 as of June 30, 2014, compared to 454,800
    for the same period of 2013;
  oTotal subscriber gross additions for the second quarter 2014 were 39,000,
    compared to 40,100 for the same period of 2013; and
  oTotal net subscriber additions for the second quarter 2014 were 400,
    compared to 3,800 for the same period of 2013.

Postpay Subscribers

  oPostpay subscriber gross additions for the second quarter 2014 were
    20,400, compared to 16,300 for the second quarter 2013 and 20,200 for the
    first quarter 2014;
  oNet postpay subscriber additions were 3,300 for the second quarter 2014,
    compared to 200 for the second quarter 2013 and 300 for the first quarter
    2014;
  oPostpay churn for the second quarter 2014 was 1.8%, compared to 1.8% for
    the second quarter 2013;
  oARPA increased 2.9% to $137.20 for the second quarter 2014, compared to
    $133.34for the same period in 2013; and
  oAs of June 30, 2014, total postpay subscribers were 308,200.

Prepay Subscribers

  oPrepay subscriber gross additions for the second quarter 2014 were
    18,600,compared to 23,800 for the second quarter 2013 and 25,200 for the
    first quarter 2014;
  oNet prepay subscriber additions (losses) were (2,900) for the second
    quarter 2014, compared to 3,600 for the second quarter 2013 and 3,100 for
    the first quarter 2014;
  oPrepay churn for the second quarter 2014 was 4.5%, compared to 4.4% for
    the second quarter 2013; and
  oAs of June 30, 2014, total prepay subscribers were 149,900.

"During the quarter, we delivered solid results in an increasingly competitive
operating environment. We will continue to make strategic investments in the
business to improve our operations and to drive increased shareholder value,"
said Stebbins B. Chandor, EVP & Chief Financial Officer of NTELOS Holdings
Corp.

Net Income
Net income after net income attributable to noncontrolling interests was $0.5
million, or $0.02 per diluted share, for the first quarter 2014, compared to
$9.4 million, or $0.43 per diluted share, for the second quarter 2013.

Business Outlook
For the year ending December 31, 2014, the Company reiterates its full year
2014 Adjusted EBITDA guidance of between $128.0 million and $135.0 million and
full year 2014 capital expenditures guidance of between $110.0 million and
$120.0 million.

Conference Call
The Company will host a conference call with investors and analysts to discuss
its second quarter 2014 results this morning, July 28, 2014, at 8:00a.m. ET.
To participate, please dial 1-888-317-6002, 1-855-669-9657 in Canada and
1-412-317-1083 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 10049798
beginning approximately one hour after the call and continuing until August
12, 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, separation charges, secondary offering
costs, net loss from discontinued operations, adjustments for impact of
recognizing a portion of the billed SNA contract revenues on a straight line
basis and acquisition related charges.

ARPA, or average monthly revenue per account, is computed by dividing service
revenues per period by the average number of accounts 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
and provide liquidity for future growth. ARPA provides management with useful
information concerning the appeal of the Company's postpay rate plans and
service offerings and the Company's performance in attracting and retaining
high value customers.

Adjusted EBITDA and ARPA 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.

During the quarter, the Company terminated approximately 2,100 postpay
subscribers that repeatedly exceeded their terms and conditions relating to
permitted usage. Additionally, the Company changed its business rules related
to reporting of long-term, non-revenue producing prepay subscribers. This
change resulted in approximately 8,200 prepay subscribers being excluded from
our ending subscriber base. The impact of these Company-initiated
terminations and change in business rules is reflected in the ending
subscriber totals as of June 30, 2014 and is not reflected in our
disconnections, net additions and churn calculations for the periods ended
June 30, 2014.

About NTELOS
NTELOS Holdings Corp. (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 458,100 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 8.0 million residents, of which its
wireless network covers approximately 6.0 million residents. The Company is
also the exclusive wholesale provider of network services to Sprint
Corporation in the western Virginia and West Virginia portions of its
territories for all Sprint CDMA and LTE 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 Income
  oReconciliation of Net Income Attributable to NTELOS Holdings Corp. to
    Adjusted EBITDA
  oKey Metrics
  oARPA Reconciliation – Postpay

Investor Relations Contacts:

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



NTELOS Holdings Corp.
Condensed Consolidated Balance Sheets (Unaudited)          (Unaudited)
                                      June 30, 2014        December 31, 2013
(In thousands)
       ASSETS
Current Assets
 Cash                                 $             $        
                                      108,340             88,441
 Restricted cash                      2,167                2,167
 Accounts receivable, net             41,947               37,740
 Inventories and supplies             15,501               23,962
 Deferred income taxes                8,970                10,650
 Prepaid expenses and other current   18,819               20,808
 assets
                                      195,744              183,768
Securities and Investments            1,499                1,499
Property, Plant and Equipment, net   320,795              319,376
Intangible Assets
 Goodwill                             63,700               63,700
 Radio spectrum licenses              131,838              131,834
 Customer relationships and           5,479                6,985
 trademarks, net
Deferred Charges and Other Assets     11,117               9,089
Total Assets                          $             $       
                                      730,172             716,251
       LIABILITIES AND EQUITY
Current Liabilities
 Current portion of long-term debt    $           $         
                                      5,835                5,410
 Accounts payable                     21,812               33,677
 Dividends payable                    9,104                9,034
 Accrued expenses and other current   32,318               31,389
 liabilities
                                      69,069               79,510
Long-Term Debt                        521,978              484,956
Other Long-Term Liabilities           109,716              107,992
Equity                               29,409               43,793
Total Liabilities and Equity         $             $       
                                      730,172             716,251





NTELOS Holdings Corp.
Condensed Consolidated       Three Months Ended        Six Months Ended
Statements of Income
                             (Unaudited)               (Unaudited)
(In thousands, except per    June 30,     June 30,     June 30,    June 30,
share amounts)               2014         2013         2014        2013
Operating Revenues ^        $  117,795 $           $          $ 
                                          119,859     239,877    239,204
Operating Expenses
    Cost of sales and        47,439       42,567       94,763      87,102
    services
    Customer operations     31,329       29,977       65,420      60,931
    Corporate operations    9,194        7,760        18,931      15,664
    Depreciation and         19,929       20,443       38,996      38,899
    amortization
    Gain on sale of          -            (4,442)      -           (4,442)
    intangible assets
                             107,891      96,305       218,110     198,154
Operating Income             9,904        23,554       21,767      41,050
Other Expense
    Interest expense       (8,315)      (7,398)      (16,274)    (14,759)
    Other income (expense),  (92)         151          (1,164)     (218)
    net
                             (8,407)      (7,247)      (17,438)    (14,977)
Income before Income Taxes   1,497        16,307       4,329       26,073
Income Taxes              640          6,380        1,750       10,124
Net Income                   857          9,927        2,579       15,949
Net Income Attributable to   (373)        (541)        (809)       (1,070)
Noncontrolling Interests
Net Income Attributable to   $       $         $       $  
NTELOS Holdings Corp.        484         9,386       1,770       14,879
Earnings per Share
Attributable to NTELOS
Holdings Corp.:
    Basic                    $       $       $      $     
                             0.02         0.45         0.08        0.71
    Weighted average shares  21,099       21,027       21,090      20,962
    outstanding - basic
    Diluted                  $       $       $      $     
                             0.02         0.43         0.08        0.69
    Weighted average shares  22,039       21,779       22,037      21,613
    outstanding - diluted
Cash Dividends Declared per  $       $       $      $     
Share - Common Stock         0.42         0.42         0.84        0.84





NTELOS Holdings Corp.
Reconciliation of Net Income Attributable to NTELOS Holdings Corp. to Adjusted
EBITDA^
(In thousands)
                                Three Months Ended    Six Months Ended
                                June 30,   June 30,     June 30,   June 30,
                                2014       2013         2014       2013
    Net income attributable to  $      $       $      $     
    NTELOS Holdings Corp.                9,386           14,879
                                484                    1,770
    Net income attributable to  373        541          809        1,070
    noncontrolling interests
                                $      $       $      $     
    Net income                         9,927           15,949
                                857                    2,579
    Interest expense           8,315      7,398        16,274     14,759
    Income taxes               640        6,380        1,750      10,124
    Other expense (income), net 92         (151)        1,164      218
                                $      $       $      $     
    Operating income                     23,554             41,050
                                9,904                   21,767
    Depreciation and            19,929     20,443       38,996     38,899
    amortization
    Gain on sale of intangible  -          (4,442)      -          (4,442)
    assets
    Accretion of asset          331        173          646        316
    retirement obligations
    Equity-based compensation   1,283      1,460        2,594      2,781
    SNA straight-line           2,043      -            2,043      -
    adjustment ^1
    Other ^2                    874        -            2,241      -
                                $      $       $      $     
    Adjusted EBITDA                       41,188             78,604
                                34,364                  68,287
 ^1 Adjustment for impact of recognizing a portion of the billed SNA contract
    revenues on a straight line basis.
 ^2 Other includes legal and advisory fees related to new Sprint agreement and
    certain employee
    separation charges.



NTELOS Holdings
Corp.
Key Metrics                                                            Six Months Ended
   Quarter Ended:  6/30/2013 9/30/2013 12/31/2013 3/31/2014 6/30/2014  6/30/2013 6/30/2014
Subscribers
   Beginning       451,000   454,800   457,100    464,600   468,000    439,600   464,600
   Subscribers
   Postpay         299,700   298,700   298,000    306,700   306,800    297,400   306,700
   Prepay          151,300   156,100   159,100    157,900   161,200    142,200   157,900
   Gross           40,100    44,500    50,800     45,400    39,000     88,600    84,400
   Additions
   Postpay         16,300    20,000    28,700     20,200    20,400     36,500    40,600
   Prepay          23,800    24,500    22,100     25,200    18,600     52,100    43,800
   Disconnections  36,300    42,200    43,300     42,000    38,600     73,400    80,600
   ^1
   Postpay         16,100    19,600    19,800     19,900    17,100     33,000    37,000
   Prepay          20,200    22,600    23,500     22,100    21,500     40,400    43,600
   Net Additions   3,800     2,300     7,500      3,400     400        15,200    3,800
   (Losses) ^1
   Postpay         200       400       8,900      300       3,300      3,500     3,600
   Prepay          3,600     1,900     (1,400)    3,100     (2,900)    11,700    200
   Ending          454,800   457,100   464,600    468,000   458,100    454,800   458,100
   Subscribers ^1
   Postpay         298,700   298,000   306,700    306,800   308,200    298,700   308,200
   Prepay          156,100   159,100   157,900    161,200   149,900    156,100   149,900
   Churn, net ^1   2.7%      3.1%      3.1%       3.0%      2.8%       2.7%      2.9%
   Postpay         1.8%      2.2%      2.2%       2.2%      1.8%       1.8%      2.0%
   Prepay          4.4%      4.8%      4.9%       4.6%      4.5%       4.5%      4.6%
Other Items
   ARPA
   Statistics
   ARPA            $       $       $        $        $        $       $  
                   133.34    136.90    136.88    137.47   137.20     132.01    137.34
   Ending Postpay  141,400   140,200   141,200    138,400   140,500    141,400   140,500
   Accounts
   Postpay
   Subscribers     2.1       2.1       2.2        2.2       2.2        2.1       2.2
   per Account
   Strategic Network
   Alliance Revenues
   (000's)^2
   Billed Revenue  $       $       $        $        $        $       $  
                   39,607    48,644    39,326    39,284   37,997     79,759    77,281
   Straight-Line   -         -         -          -         (2,043)    -         (2,043)
   Adjustment
   Spectrum Lease  -         -         -          -         822        -         822
   Consideration
   SNA Revenues -  $       $       $        $        $        $       $  
   As Reported     39,607    48,644    39,326    39,284   36,776     79,759    76,060
   Network
   Statistics
   Licensed
   Population      7.9       7.9       8.0        8.0       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      1,432     1,434     1,444      1,444     1,445      1,432     1,445
   Sites
   During the quarter, the Company terminated approximately 2,100 postpay subscribers that
   repeatedly exceeded their terms and conditions relating to permitted usage.
   Additionally, the Company changed its business rules related to reporting of long-term,
^1 non-revenue prepay subscribers. This change resulted in approximately 8,200 prepay
   subscribers being excluded from our ending subscriber base. The impact of these
   Company-initiated terminations and change in business rules is reflected in our ending
   subscriber totals as of June 30, 2014, and is not reflected in our disconnections, net
   additions and churn calculations for the periods ended June 30, 2014.
   Effective 5/1/14, SNA Revenues include the impact of recognizing the fixed fee element
   of SNA contract revenues on a straightline basis, which is a reduction of billed
^2 revenue, and the non-cash consideration attributable to spectrum lease. We have
   recognized an equal charge for spectrum lease expense withincost of sales and
   services.





NTELOS Holdings Corp.
ARPA Reconciliation -       Three Months Ended      Six Months Ended
Postpay
Average Monthly Revenue per June 30,    June 30,    June 30,    June 30,
Account (ARPA) ^1           2014        2013        2014        2013
(In thousands, except for
accounts and ARPA)
Operating revenues          $        $        $        $     
                            117,795     119,859     239,877     239,204
Less: prepay service       (16,206)     (16,182)     (33,166)     (31,866)
revenues
Less: equipment revenues    (6,560)      (5,499)      (14,051)     (12,137)
Less: wholesale and other   (37,900)     (41,179)     (77,918)     (82,097)
adjustments
Postpay service revenues  $       $       $       $     
                             57,129      56,999     114,742      113,104
Average number of postpay   138,800      142,500      139,200      142,800
accounts
Postpay ARPA            $       $       $       $     
                             137.20      133.34      137.34      132.01

   Average monthly revenue per account (ARPA) is computed by dividing postpay
   service revenues per period by the average number of postpay accounts
   during that period. ARPA as defined may not be similar to ARPA 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 ARPA in
   order to determine their effectiveness. ARPA 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.







SOURCE NTELOS Holdings Corp.

Website: http://ir.ntelos.com
 
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