<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report
May 10, 1999
VOICESTREAM WIRELESS CORPORATION
--------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Delaware
--------------------------------------------------------
(State or Other Jurisdiction of Incorporation)
000-25441 91-1956183
----------------------------- ---------------------------------------
(Commission File Number) (IRS Employer Identification No.)
3650 131st Avenue SE, Suite 400
Bellevue, WA 98006
----------------------------------------------
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code: (425) 586-8700
--------------
_____________________________________________________________________________
(Former Name or Former Address, if Changed Since Last Report)
<PAGE> 2
ITEM 5. OTHER EVENTS
On May 10, 1999, VoiceStream Wireless Corporation issued the following press
release:
FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION CONTACT:
Investment Community: Media:
Ken Prussing John Snyder
VoiceStream Wireless Corporation Snyder Buscher Group
(425) 586-8072 (206) 652-9704
[email protected] [email protected]
www.voicestream.com
VOICESTREAM WIRELESS ANNOUNCES FIRST QUARTER 1999 FINANCIAL RESULTS
- 94,900 NEW SUBSCRIBERS - 164 PERCENT GROWTH OVER THE FIRST QUARTER OF 1998 -
BELLEVUE, Wash. (May 10, 1999) - VoiceStream Wireless Corporation (NASDAQ:
VSTR), a leading provider of personal communications services, announced today
its financial and operating results for the first quarter ended March 31, 1999.
"VoiceStream Wireless continues to set the pace for fast growth and
constantly improving financial performance," said John Stanton, chairman and
chief executive officer of VoiceStream Wireless. "We launched our Seattle
system with a visit by our celebrity spokesperson Jamie Lee Curtis during the
first quarter. For the employees of VoiceStream it has been exciting to launch
the "Get More" campaign in our home market. While adding 94,900 subscribers
during the quarter, VoiceStream continued to grow its service revenues, with a
year over year increase of over 145 percent for the first quarter."
"On May 3, 1999, VoiceStream Wireless was spun-off by Western Wireless
in a tax free distribution" continued Stanton. "We are excited about the
opportunities that are available to VoiceStream. The team at VoiceStream
would like to thank the team at Western Wireless for their help in getting
ready to be an important player in the telecommunications industry."
VoiceStream Wireless subscribers increased by 94,900 during the quarter
ending March 31, 1999, a 164 percent increase in growth over the same quarter
in 1998. VoiceStream service revenues for the first quarter of 1999 were $55.9
million, a 145 percent increase from the same
<PAGE> 3
quarter a year ago. The VoiceStream EBITDA (operating income before depreciation
and amortization) loss for the quarter was $31.7 million. EBITDA before
marketing expenses (including the net loss on equipment sales) for the quarter
ended March 31, 1999 was $17.6 million.
VoiceStream Wireless had a net loss of $77.2 million, a loss of $0.81 per
share (95,541,600 weighted average common shares) for the quarter ended March
31, 1999, compared to a loss of $64.3 million, a loss of $0.75 per share, for
the first quarter of 1998. VoiceStream capital expenditures were $62.2 million
for the quarter, which includes expenditures for the Seattle launch.
Based in Bellevue, Wash., VoiceStream Wireless Corp. is a leading provider
of wireless communications services in the western United States. VoiceStream
Wireless provides personal communications service using the globally dominant
GSM technology in eleven U.S. markets. In conjunction with joint ventures,
VoiceStream provides PCS service in four additional markets.
[Remainder of page intentionally left blank.]
<PAGE> 4
VOICESTREAM WIRELESS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended March 31,
---------------------------------------
1999 1998
------------ ------------
<S> <C> <C>
Revenues:
Subscriber revenues $ 54,150 $ 22,143
Roamer revenues 1,742 644
Equipment revenues 10,919 7,096
------------ ------------
Total revenues 66,811 29,883
------------ ------------
Operating expenses:
Cost of service 16,868 11,122
Cost of equipment sales 25,246 14,477
General and administrative 21,392 18,177
Sales and marketing 35,022 14,341
Depreciation and amortization 25,764 19,999
------------ ------------
Total operating expenses 124,292 78,116
------------ ------------
Operating loss (57,481) (48,233)
------------ ------------
Other income (expense):
Interest and financing expense, net (11,605) (11,167)
Equity in net loss of unconsolidated affiliates (10,710) (7,078)
Interest income and other, net 2,610 2,177
------------ ------------
Total other income (expense) (19,705) (16,068)
------------ ------------
Net loss $ (77,186) $ (64,301)
============ ============
Basic and diluted loss per common share $ (0.81) $ (0.75)
============ ============
Weighted average common shares used in computing
basic and diluted loss per common share 95,541,600 85,614,000
============ ============
Supplemental data:
EBITDA (operating income before depreciation and amortization) $ (31,717) $ (28,234)
============ ============
Ending Subscribers 417,300 164,600
============ ============
</TABLE>
-
<PAGE> 5
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
VOICESTREAM WIRELESS CORPORATION
Dated: May 10, 1999
By /s/ Alan R. Bender
----------------
Alan R. Bender
Executive Vice President,
General Counsel and Secretary
