<PAGE>
EXHIBIT 99.1
[LOGO OF TRITON PCS]
________________________________________________________________________________
[LETTERHEAD OF TRITON PCS]
For Immediate Release
October 25, 2000
TRITON PCS POSTS POSITIVE EBITDA WITH STRONG 3RD-QTR RESULTS
Positive EBITDA Comes After 6 Quarters of Operation and 6 Months Ahead of
Forecast
BERWYN, Pa., Oct. 25 - Triton PCS Holdings Inc. (Nasdaq: TPCS), a member of the
AT&T Wireless Services Network, today reported a quarter of outstanding growth,
acquiring over 60,000 net new subscribers, recording continued strength in
roaming revenue, maintaining industry-low churn rates, and achieving positive
EBITDA six months ahead of forecast.
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Three Months Ended Nine Months Ended
9/30/1999 9/30/2000 9/30/1999 9/30/2000
---------- ---------- ---------- ----------
($ in thousands) ($ in thousands)
Total Revenue $ 43,113 $ 99,342 $ 81,355 $ 247,426
EBITDA $ (19,664) $ 2,303 $ (51,275) $ (17,117)
EPS $ (4.44) $ (0.66) $ (15.53) $ (2.14)
Net Additions 51,252 60,608 95,735 166,386
Total Subscribers 129,616 361,590 129,616 361,590
Churn 1.7% 1.9% 2.0% 1.8%
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"Reaching positive EBITDA after only six full quarters of operations is an
extraordinary accomplishment which emphasizes the momentum of our operations and
the soundness of our business plan," said Michael E. Kalogris, Triton PCS
chairman and chief executive officer. "We achieved that milestone while
continuing to add subscribers at better-than-expected rates, adding over 60,000
subscribers in the quarter to end the third quarter with more than 360,000."
Kalogris attributed the positive results to the company's successful strategy of
focusing on attracting high-value customers, coupled with extraordinary customer
service that continues to hold down churn to one of the lowest levels in the PCS
industry. "We continue to achieve rapid market penetration by offering
compelling service plans, unparalleled network quality and superior customer
service," he said. "We recently expanded our popular, all-inclusive regional
rate plans, further fueling momentum for subscriber growth."
Kalogris said Triton PCS continues to benefit from excellent progress on the
company's expanded network buildout, which drives increased roaming from all
partners, including adjacent AT&T Wireless Services markets such as Washington,
DC; Charlotte, North Carolina and Atlanta, Georgia. Roaming traffic - measured
in minutes of use - increased 18 % in the third quarter from the second quarter.
<PAGE>
Operating Highlights
. Triton PCS added 60,608 net new customers in the third quarter,
bringing the company's total subscribers at Sept. 30 to 361,590.
. Triton PCS's churn rate was 1.9% in the third quarter.
. Average monthly revenue per subscriber (ARPU) was $62.97, an increase
from $61.82 in the second quarter. ARPU with roaming was $90.67 for
the quarter.
. Home Minutes of Use per subscriber averaged 341 in the third quarter.
. Roaming rose to 106.8 million minutes for the third quarter from 90.5
million minutes in the second quarter.
. Triton PCS's cost per gross addition (CPGA) improved to $404 in the
third quarter from $462 the previous quarter.
. The company in the third quarter added 76 distribution points, which
expands total distribution points to 776.
Navy Exchange Service Command Contract
Additionally, the company announced it had been recently selected by the Navy
Exchange Service Command (NEXCOM) to be the exclusive provider of digital
wireless service and equipment to 10 Southeast military exchange locations
including the Norfolk Naval Shipyard, Norfolk Naval Station and Camp Elmore
Marine Corps Base in Virginia; Camp LeJeune Marine Corps Base and Cherry Point
Marine Corps Air Station in North Carolina; Parris Island Marine Corps Base and
Charleston Naval Station in South Carolina.
"The NEXCOM contract award represents a significant distribution channel that
provides the company with exclusive access to a large segment of the population
in our markets," Skinner said. "We are proud to have been chosen to provide
wireless service to military families in our region."
Skinner said expanding distribution continues to fuel strong subscriber growth.
In the third quarter, the company added five new company-owned retail stores.
Twenty-two new authorized dealers were added for a total of 447 locations.
Triton PCS's national retailer relationships also expanded including the opening
of eight new Sam's Club locations, eleven new Circuit City locations, six Zap
Wireless and three Bobby Allison Wireless locations for a total of 170 national
retail locations. The company has 81 company-operated retail stores and 78
direct corporate sales representatives.
Financial Performance
Third quarter revenue was more than $99 million, up 17% from the previous
quarter. Service revenue increased 24% to $62.6 million from $50.4 million in
the second quarter. Roaming revenue rose to $27.5 million from $25.9 million the
previous quarter, and equipment revenue was $9.2 million compared with $8.8
million in the second quarter.
EBITDA (recurring operating income/loss before non-cash items) was $2.3 million,
compared with a loss of $7.1 million in the second quarter and a loss of $19.7
million a year ago. The third-quarter net loss available to common shareholders
was $41.2 million, or $0.66 per share, on 62.1 million weighted average common
shares outstanding.
During the third quarter, the company closed on a $150 million increase to its
Senior Secured Credit Facilities, bringing Triton PCS's total committed Senior
Credit Facilities to $750 million. The proceeds from the increase will be used
primarily to provide additional liquidity to finance growth and strategic
<PAGE>
initiatives. In addition to the increase, the company arranged for a $150
million incremental facility that may be exercised with the approval of a
majority of lenders.
The company paid $110.9 million for capital additions during the quarter,
reflecting the continued geographic expansion of the company's wireless network.
At September 30, 2000, Triton PCS had cash and cash equivalents of $13 million
and $450 million of committed undrawn bank credit facilities.
Kalogris said, "We continue to build momentum by focusing on superior execution
of our business plan, consistently exceeding our own expectations. Our third
quarter results demonstrate the soundness of our strategy to attract high-value
customers through a combination of outstanding network performance, compelling
service offerings and unparalleled customer service."
Conference Call Note
Triton PCS will hold a conference call to discuss this press release Thursday,
October 26 at 11:00a.m. EDT. A live broadcast of the conference call will be
available over the Internet at www.tritonpcs.com or www.streetevents.com. To
listen to the call, please go to the Web site at least 15 minutes prior to the
start time to register, download and install any necessary audio software. An
audio replay will be available on the site for 10 days following the call.
Triton PCS, based in Berwyn, Pennsylvania, is a leading provider of digital
wireless phone service in the Southeast licensed to operate in a contiguous area
covering more than 13 million people in Virginia, North Carolina, South
Carolina, northern Georgia, northeastern Tennessee and southeastern Kentucky.
The company markets its services under the brand SunCom, a member of the AT&T
Wireless Network.
For more information on Triton PCS and its products and services, visit the
company's websites at: www.tritonpcs.com, and www.suncom.com.
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"Safe Harbor" statement under the Private Securities Litigation Reform Act of
1995: Except for historical information, the matters discussed in this news
release that may be considered forward-looking statements could be subject to
certain risks and uncertainties that could cause the actual results to differ
materially from those projected. These include uncertainties in the market,
competition, legal and other risks detailed from time to time in the company's
SEC reports. The company assumes no obligation to update information in this
release.
(Tables follow)
Contacts:
---------
<TABLE>
<S> <C>
Brainerd Communicators Triton PCS Holdings, Inc.
Ryan Barr/ Lenny Santiago Maria Olagues/Christine Davies
Phone: 212-986-6667 Phone: 610-722-4448 or 610-722-4462
[email protected]/[email protected] [email protected]/[email protected]
</TABLE>
<PAGE>
TRITON PCS HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months Nine Months
Ended Ended
September 30, September 30,
1999 2000 1999 2000
(unaudited) (unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C>
Revenues:
Service revenues $19,854 $62,585 $37,516 $150,984
Roaming revenues 14,257 27,528 27,210 71,641
Equipment revenues 9,002 9,229 16,629 24,801
--------- ---------- --------- ----------
Total revenue 43,113 99,342 81,355 247,426
Expenses:
Cost of service 19,677 33,666 38,202 91,157
Cost of equipment 14,678 17,213 27,494 46,281
Selling and marketing 16,461 24,254 38,376 68,949
General and administrative 11,961 21,906 28,558 58,156
Non-cash compensation 1,389 2,379 2,325 5,297
Depreciation and amortization 11,278 24,061 27,247 68,970
--------- ---------- --------- ----------
Loss from operations (32,331) (24,137) (80,847) (91,384)
Interest expense, net of capitalized interest 7,395 15,203 26,242 38,863
Interest and other income 1,488 667 4,140 4,799
Gain on sale of property and equipment 11,682 - 11,682 -
--------- ---------- --------- ----------
Net loss (26,556) (38,673) (91,267) (125,448)
Accretion on preferred stock 2,260 2,496 6,409 7,306
--------- ---------- --------- ----------
Net loss applicable to shareholders ($28,816) ($41,169) ($97,676) ($132,754)
========= ========== ========= ==========
Net loss per common share $(4.44) $(0.66) $(15.53) $(2.14)
========= ========== ========= ==========
(Basic and Diluted)
Weighted average common shares
outstanding (Basic and Diluted) 6,489,175 62,105,092 6,289,398 61,979,187
========= ========== ========= ==========
Supplemental Information (unaudited):
EBITDA (Recurring Operating Income/Loss
Before non-cash items) ($19,664) $ 2,303 ($51,275) ($17,117)
Ending Subscribers 129,616 361,590 129,616 361,590
</TABLE>
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TRITON PCS HOLDINGS, INC.
CONDENSED BALANCE SHEETS
(Dollars in thousands)
<TABLE>
<CAPTION>
December 31, September 30,
1999 2000
(unaudited) (unaudited)
<S> <C> <C>
ASSETS:
Current assets:
Cash and cash equivalents $ 186,251 $ 13,135
Due from related party 1,099 24
Accounts receivable, net of $1,765 and $2,229 29,064 42,740
Inventory, net 15,270 22,678
Prepaid expenses and other current assets 7,674 17,483
-------------- -----------
Total current assets 239,358 96,060
Property and equipment:
Land 313 313
Network infrastructure and equipment 304,656 571,022
Office furniture and equipment 38,382 51,094
Capital lease assets 5,985 7,839
Construction in progress 105,593 92,315
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454,929 722,583
Less accumulated depreciation (33,065) (90,301)
-------------- -----------
Net property and equipment 421,864 632,282
Intangible assets, net 315,538 304,895
Other long-term assets 3,037 3,051
-------------- -----------
Total Assets $ 979,797 $1,036,288
============== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 82,129 $ 58,381
Accrued payroll and related expenses 9,051 9,220
Accrued expenses 4,890 19,728
Deferred revenue 5,526 5,603
Other liabilities 3,093 8,424
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Total current liabilities 104,689 101,356
Bank credit facility 150,000 300,000
Senior subordinated debt 350,639 381,049
Capital lease obligations 3,997 4,211
Deferred income taxes 11,718 11,718
Deferred gain on sale of property and equipment 30,641 29,720
-------------- -----------
Total liabilities 651,684 828,054
Series A Redeemable Preferred Stock, $0.01 par value, 1,000,000 shares
authorized; issued and outstanding 786,253 shares as of September 30, 2000
and December 31, 1999, plus accreted dividends 94,203 101,509
SHAREHOLDERS' EQUITY
Series B Preferred Stock, $0.01 par value, 50,000,000 shares authorized;
no shares issued or outstanding as of September 30, 2000 or December 31, 1999 - -
Series C Preferred Stock, $0.01 par value, 3,000,000 shares authorized;
no shares issued and outstanding as of September 30, 2000 or December 31, - -
1999
Series D Preferred Stock, $0.01 par value, 16,000,000 shares authorized;
Issued and outstanding 543,683 shares as of September 30, 2000 and
December 31, 1999 5 5
Class A Common Stock, $0.01 par value, 520,000,000 shares authorized;
Issued and outstanding 54,067,172 shares as of September 30, 2000 and
53,700,442 shares as of December 31, 1999 537 541
Class B Non-voting Common Stock, $.01 par value, 60,000,000 shares authorized;
issued and outstanding 8,210,827 shares as of September 30, 2000 and
December 31, 1999 82 82
Additional paid-in capital 436,229 463,167
Accumulated deficit (186,091) (311,539)
Deferred compensation (16,852) (45,531)
-------------- -----------
Total Shareholders' Equity 233,910 106,725
-------------- -----------
Total Liabilities and Shareholders' Equity $ 979,797 $1,036,288
============== ===========
</TABLE>
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TRITON PCS HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
<TABLE>
<CAPTION>
Nine Months
Ended
September 30,
1999 2000
(unaudited) (unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (91,267) $(125,448)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 27,247 68,970
Bad debt expense 1,348 4,941
Accretion of interest 27,809 30,681
Gain on sale of marketable securities (1,004) -
Gain on sale of property and equipment (11,682) -
Non-cash compensation 2,325 5,297
Change in operating assets and liabilities:
Accounts receivable (14,278) (18,617)
Inventory (5,389) (7,408)
Prepaid expenses and other current assets (2,291) (9,809)
Other long-term assets (3,158) (14)
Accounts payable (12,245) (34,340)
Accrued payroll and related expenses 3,020 169
Deferred revenue 90 77
Accrued expenses 7,927 14,838
Other liabilities 1,043 4,410
--------- ---------
Net cash used in operating activities (70,505) (66,253)
Cash flows from investing activities:
Capital expenditures (162,661) (254,764)
Proceeds from sale of property and equipment, net 69,712 -
Proceeds from maturity of short term investments 47,855 -
Purchase of marketable securities (23,239) -
--------- ---------
Net cash used in investing activities (68,333) (254,764)
Cash flows from financing activities:
Borrowings under credit facility 10,000 150,000
Proceeds from issuance of stock in connection with private equity investment 35,000 -
Proceeds from issuance of stock in connection with Norfolk transaction 2,169 -
Proceeds from issuance of Series C preferred stock 340 -
Contributions under employee stock purchase plan - 542
Payment of deferred financing costs - (1,853)
Payment of deferred transaction costs (3,826) (270)
(Advances to) proceeds from related party, net 200 1,075
Principal payments under capital lease obligations (286) (1,593)
--------- ---------
Net cash provided by financing activities 43,597 147,901
--------- ---------
Net decrease in cash (95,241) (173,116)
Cash and cash equivalents, beginning of period 146,172 186,251
--------- ---------
Cash and cash equivalents, end of period $ 50,931 $ 13,135
========= =========
Non-cash investing and financing activities:
Capital expenditures included in accounts payable 15,060 10,592
Deferred stock compensation 15,791 33,976
</TABLE>
