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EXHIBIT 99
Slide show used in the Investor Meeting
Slide 1: AirGate PCS logo
Slide 2: Forward-Looking Statement
Statements contained in this presentation regarding expected financial results
and other expected events should be considered forward-looking statements that
are subject to various risks and uncertainties. Such forward-looking statements
are made pursuant to the "safe-harbor" provisions of the Private Securities
Litigation Reform Act of 1995 and are made based on management's current
expectations or beliefs as well as assumptions made by, and information
currently available to, AirGate PCS' management. A variety of factors could
cause actual results to differ materially from those anticipated in AirGate PCS'
forward-looking statements, including the following factors: the competitiveness
of Sprint PCS pricing plan, products and services; consumer purchasing patterns;
potential fluctuations in quarterly results; our dependence on our affiliation
with Sprint PCS; an adequate supply of subscriber equipment; new product
development; risk related to our ability to compete with larger, more
established businesses; rapid technological and market change; risks related to
future growth and expansion, our significant level of indebtedness and
volatility of stock prices. For a detailed discussion of these and other
cautionary statements and factors that could cause actual results to differ from
AirGate PCS' forward-looking statements, please refer to AirGate PCS' Form 10-K
for the fiscal year ended September 30, 1999, and Form 10-Q for the quarter
ended June 30, 2000, and in subsequent filings with Securities and Exchange
Commission.
Slide 3:
Company Profile
- Exclusive Sprint PCS affiliate in its southeastern territory
- Owns and operates a 100% digital, 100% PCS network
- Offers Sprint PCS wireless communications products and services
- 56,689 customers as of September 30, 2000
Slide 4:
Key Investment Considerations
- Exclusive Sprint PCS provider to over 7.1 million POPs
- Successful execution of rapid network build-out
- Nationally recognized Sprint PCS brand name
- Proven ability to attract customers
- Sprint is local exchange carrier for 30% of POPs in territory
- Established Sprint PCS back office and support services
- Fully financed business plan
Slide 5:
Graphic titled "AirGate Markets - 7.1 MM POPS," showing AirGate PCS' current
service area as provided under its agreement with Sprint PCS on a color-coded
geographic map of Georgia, North Carolina, South Carolina and Tennessee.
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Slide 6:
Sprint Partnership Benefits
- 50 year potential term
- Invested over $55 million for licenses and microwave clearing
- Sprint PCS brand name recognition
- National marketing, advertising and distribution programs
- 92% of collected revenues paid to AirGate
- AirGate collects 100% of roaming revenue
Slide 7:
Market Launch
- ALL MARKETS LAUNCHED IN FY2000 AND MEET SPRINT PCS BUILD-OUT
REQUIREMENTS
- PLANS FOR FY2001:
<TABLE>
<CAPTION>
November 15, 2000 September 30, 2001
<S> <C> <C>
Switches 3 4
Cell Sites 581 675-700
Coverage 76% Low 80%
</TABLE>
- OUR GOAL IS TO PROVIDE COVERAGE THAT MEETS/EXCEEDS THAT WHICH IS
PROVIDED BY ALL OUR COMPETITORS
Slide 8:
Local Sales Focus
INTERIOR REGION
3.7 million total POPS; 2.8 million covered POPS (at 11/15)
Regional VP & 4 market managers
13 stores by Thanksgiving
193 national retailers and total other doors
COASTAL REGION
3.4 million total POPS; 2.6 million covered POPS (at 11/15)
Regional VP & 3 market managers
7 stores by early December
Sprint LEC store, Greenville, NC
158 national retailers and total other doors
Slide 9:
Graphic titled "National Retail Distribution" which lists the following
retailers along with the AirGate PCS logo: RadioShack (listed above the AirGate
PCS logo), BestBuy, Circuit City, OfficeMax, Kmart and Staples (each listed
below the AirGate PCS logo).
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Slide 10:
Other National Sales Channels
The slide shows that Sprint PCS' national accounts sales team, national inbound
telemarketing sales force at (800) 480-4PCS and e-commerce sales platform
www.sprintpcs.com each provide service to AirGate PCS' customers.
Slide 11:
Graphic titled "The Most Distribution Points in Our Territory" which shows the
number of points of distribution for AirGate's products between "Company Owned
Stores" and "Third Party Doors". The graphic presents the following information
<TABLE>
<CAPTION>
"Company Owned Stores" "Third Party Doors"
<S> <C> <C>
AirGate PCS 20 338
Triton 19 158
Bell South 24 133
Verizon 16 98
Alltel 24 277
</TABLE>
Slide 12:
Graphic titled "Rapid Customer Growth, expected to continue until Fiscal Year
2001" which shows that in the first quarter of 2000 AirGate PCS had 0 customers,
in the second quarter of 2000 AirGate had 6,378 customers, in the third quarter
of 2000 AirGate PCS had 23,482 customers, in the fourth quarter of 2000 AirGate
PCS had 56,689 customers and that for the first quarter of 2001, AirGate
projects it will have 96,689 customers.
Slide 13:
Graphic titled "Channel Mix, 4Q Fiscal 2000" which shows that 43% of AirGate
PCS' distribution in the fourth quarter of 2000 was through its company-owned
stores, 38% was through its third party retailers, 16% was through Sprint PCS
and 8% was through business-to-business.
Slide 14:
Graphic entitled "Growth Driver - Projected PCS vs. Cellular Market Share" which
shows from the years 1997 though 2009 (projected), the approximate market share
of the wireless phone market between cellular and PCS. The source of the
information is Donaldson, Luftkin & Jenrette.
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<TABLE>
<CAPTION>
YEAR PCS CELLULAR
<S> <C> <C>
1997 28% 72%
1998 45% 55%
1999 55% 45%
2000 55% 45%
2001 65% 35%
2002 68% 32%
2003 70% 30%
2004 72% 28%
2005 72% 28%
2006 72% 28%
2007 72% 28%
2008 72% 28%
2009 72% 28%
</TABLE>
Slide 15:
Competitive Advantages:
- Fastest build-out on record
- Proven ability to execute and attract customers
- Potential for higher roaming revenue
- National pricing plans and local pricing flexibility
- Co-location results in significantly lower capex
Slide 16:
FINANCIAL HIGHLIGHTS
Slide 17:
Cumulative Sources and Uses (through 2002)
($ in millions)
SOURCES
<TABLE>
<S> <C>
IPO $131
Senior subordinated discount notes 156
Lucent financing 144
----
Total Sources $431
USES
Capital expenditures $209
Working capital and operating losses 100
Debt service and fees 51
Excess cash 71
----
Total Uses $431
</TABLE>
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Slide 18:
Lucent Technologies Inc. Financing
Commitment - $153.5 Million
- Equipment $110.0 million
- Working Capital $ 43.5 million
Terms - Interest rate: LIBOR + 375 basis points
- Principal repayments begin in 2004
Use of proceeds - To finance the purchase of Lucent products and
services and working capital
Slide 19:
Financial Results (in thousands except Subscribers, ARPU, EPS)
<TABLE>
<CAPTION>
6/30/00 9/30/00 Projected 12/31/00
<S> <C> <C> <C>
Net New subscribers 17,104 33,207 37,000-40,000
ARPU $ 54 $ 56 $ 50-54
Roaming Revenue $ 3,771 $ 7,621 $ 5M-7M
EBITDA* $(15,771) $(18,069) $(16M)-(19M)
EPS $ (2.03) $ (2.30) Not provided
Capex $ 31,243 $ 27,989 $12 Million
</TABLE>
* Excluding non-cash stock option compensation expenses
Slide 20:
Key Points from Business Plan
- EBITDA breakeven by March 31, 2002
- Net Income positive by 2005
- By 2009:
- National wireless penetration levels of 80%
- AirGate penetration rate between 12% and 13%
- 750,000 to 800,000 subscribers
- Revenues of at least $500 million
Slide 21:
Why Invest in AirGate PCS?
- Exclusive Sprint PCS provider to over 7.1 million POPs
- Successful execution of rapid network build-out
- Nationally recognized Sprint PCS brand name
- Proven ability to attract customers
- Sprint is local exchange carrier for 30% of POPs in territory
- Established Sprint PCS back office and support services
- Fully financed business plan
Slide 22:
AirGate PCS logo
Nasdaq: PCSA
