<PAGE> 1
EXHIBIT 99.2
NEWS RELEASE EASTERLY
INVESTOR RELATIONS
Client: Alamosa PCS Holdings Inc.
IMMEDIATE RELEASE
Contacts: Kendall Cowan, CFO
Alamosa PCS
806-722-1100
[email protected]
Ken Dennard / [email protected]
Lisa Elliott / [email protected]
Easterly Investor Relations
713-529-6600
ALAMOSA PCS REPORTS STRONG THIRD QUARTER RESULTS
Sequential Subscriber Base Grew 31 Percent; Subscriber Revenue Grew 39 Percent
OCTOBER 31, 2000 - LUBBOCK, TEXAS - Alamosa PCS Holdings Inc. (NASDAQ:APCS), The
1999 Sprint PCS (NYSE:PCS) Affiliate of the Year, today reported strong
sequential subscriber growth and service revenues for the third quarter ended
September 30, 2000. Subscribers grew to 91,443 at the end of the third quarter,
up 21,874 subscribers, or 31 percent, over subscribers at the end of the second
quarter of 2000. Subscriber revenues for the third quarter were $14.9 million,
up 39 percent over the second quarter of 2000.
Total revenue for the third quarter of 2000 was $22,983,000 including
subscriber revenue of $14,941,000, roaming revenue of $5,813,000 and product
sales of $2,229,000. Subscriber revenue represented a 39 percent increase over
the second quarter of 2000, while roaming revenue grew 35 percent. Earnings
before interest, taxes, depreciation and amortization, or EBITDA, excluding
non-cash compensation was negative ($11,094,000) for the third quarter of 2000.
Excluding selling and marketing expense, pre-marketing EBITDA was a positive
$2,848,000 for the quarter.
Average monthly revenue per user (ARPU) was $87 for the third quarter
including roaming and $63 without roaming, which increased from $83 and $60 for
the second quarter, respectively.
Average minutes of use per month were 440 per average subscriber including
roaming and 360 without roaming. Churn was approximately 3.4 percent, and total
system minutes of use were approximately 105 million for the quarter, compared
to 81 million for the previous quarter.
For the nine months ended September 30, 2000, Alamosa reported total
revenue of $51,902,000, comprised of $32,772,000 of subscriber revenue,
$13,129,000 of roaming revenue
<PAGE> 2
and $6,001,000 of product sales revenue. EBITDA excluding non-cash compensation
for the nine-month period was negative ($25,310,674).
At the end of the quarter, Alamosa PCS had cash and short-term investments
of approximately $173 million and committed but unused credit facilities of
approximately $170 million. Capital expenditures for the third quarter were
$50.3 million.
"We are pleased with our growth during the third quarter," said David E.
Sharbutt, Chairman and Chief Executive Officer. "While our financial results
continue to reflect the considerable investment associated with the completion
of our network build-out, we are very pleased with the initial results we are
seeing in the commercial Sprint PCS market launches in portions of Alamosa's,
Robert's and WOW's territories."
[ALAMOSA LOGO]
Alamosa PCS Holdings, Inc., The 1999 Sprint PCS Affiliate of the Year, is a
Sprint PCS Network Partner providing Sprint PCS wireless personal communication
services in the southwestern and midwestern United States. Alamosa PCS has the
exclusive right to provide digital wireless personal communication services
under the Sprint PCS brand throughout its designated territory primarily located
in Texas, New Mexico, Arizona, Colorado and Wisconsin. Pro forma for its
previously announced WOW and Roberts mergers, Alamosa will have an expanded
territory that will include a licensed population of approximately 12.5 million
residents, and Alamosa PCS will be the nation's largest Sprint PCS Network
Partner based on the size of the population in its territory.
<PAGE> 3
Sprint PCS operates the largest 100 percent digital, 100 percent PCS
nationwide wireless network in the United States, already serving the majority
of the nation's metropolitan areas including more than 4,000 cities and
communities across the country. Sprint PCS has licensed PCS coverage of nearly
270 million people in all 50 states, Puerto Rico and the US Virgin Islands. For
more information, visit the Sprint PCS web site at http://www.sprintpcs.com.
Sprint PCS is a wholly-owned tracking group of Sprint Corporation trading on the
NYSE under the symbol "PCS."
Sprint is a global communications company at the forefront of integrating
long-distance, local and wireless communications services, and a large carrier
of Internet traffic. Sprint built and operates the United States' first
nationwide all-digital, fiber-optic network and is a leader in advanced data
communications services. Sprint has $20 billion in annual revenues and serves
more than 20 million business and residential customers.
Statements contained in this news release that are forward-looking statements,
such as statements containing terms such as can, may, will, expect, plan, and
similar terms, 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, management. A variety of factors could cause
actual results to differ materially from those anticipated in Alamosa's
forward-looking statements, including the following factors: Alamosa's
dependence on its affiliation with Sprint PCS; shifts in populations or network
focus; changes or advances in technology; changes in Sprint's national service
plans or fee structure with us; change in population; difficulties in network
construction; increased competition in our markets; failure to consummate
anticipated acquisitions and adverse changes in financial position, condition or
results of operations. For a detailed discussion of these and other cautionary
statements and factors that could cause actual results to differ from Alamosa's
forward-looking statements, please refer to Alamosa's filings with the
Securities and Exchange Commission, especially in the "risk factors" sections of
Alamosa's Prospectuses filed on February 4, 2000, its Form 10-K for the year
ended December 31, 1999 and in subsequent filings with the Securities and
Exchange Commission.
- Tables to Follow -
<PAGE> 4
ALAMOSA PCS HOLDINGS, INC. AND SUBSIDIARIES AND PREDECESSORS
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the three months ended For the nine months ended
September 30 September 30
---------------------------- ----------------------------
2000 1999 2000
(unaudited) (unaudited) (unaudited) 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenue:
Service revenue $ 20,754,150 $ 1,121,561 $ 45,900,325 $ 1,123,065
Product sales 2,228,949 779,464 6,001,373 813,052
------------ ------------ ------------ ------------
Total revenue 22,983,099 1,901,025 51,901,698 1,936,117
------------ ------------ ------------ ------------
Costs and expenses:
Cost of service and operations 14,720,863 1,520,735 32,846,645 2,189,054
Cost of service and operations - related
parties 198,369 38,818 523,149 38,818
Cost of products sold 4,604,697 1,811,780 11,636,860 1,844,238
Selling and marketing 11,328,579 3,016,576 25,311,135 3,882,642
Selling and marketing - related parties 238,256 230,624 450,630 320,436
General and administrative expenses
(excluding non-cash compensation expense)
2,872,635 1,564,109 5,950,782 2,854,572
Equity participation compensation expense
511,116 4,028,205 5,404,862 6,822,037
General and administrative - related
parties 114,118 159,541 493,171 294,881
Depreciation and amortization 3,015,497 809,680 7,763,434 936,736
------------ ------------ ------------ ------------
Total costs and expenses 37,604,130 13,180,068 90,380,668 19,183,414
------------ ------------ ------------ ------------
Loss from operations (14,621,031) (11,279,043) (38,478,970) (17,247,297)
------------ ------------ ------------ ------------
Interest and other income 4,112,352 103,675 10,834,815 444,746
Interest expense (6,961,479) (750,489) (18,313,678) (885,868)
------------ ------------ ------------ ------------
Net loss $(17,470,158) $(11,925,857) $(45,957,833) $(17,688,419)
============ ============ ============ ============
Net loss per common share, basic and
diluted $ (0.28) $ (0.25) $ (0.77) $ (0.36)
============ ============ ============ ============
Weighted average common shares
outstanding, basic and diluted 61,354,715 48,500,008 59,808,408 48,500,008
============ ============ ============ ============
</TABLE>
<PAGE> 5
ALAMOSA PCS HOLDINGS, INC. AND SUBSIDIARIES AND PREDECESSORS
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30,
2000 December 31,
(unaudited) 1999
------------- -------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 172,633,478 $ 5,655,711
Accounts receivable, net of allowance for doubtful accounts 9,662,519 1,675,636
Inventory 2,578,842 5,777,375
Prepaid expenses and other assets 774,179 882,516
------------- -------------
Total current assets 185,649,018 13,991,238
Property and equipment, net 189,521,616 84,713,724
Notes receivable 22,196,043 --
Debt issuance costs, net 13,482,401 3,743,308
Restricted cash -- 518,017
Other noncurrent assets 2,135,420 1,525,912
------------- -------------
Total assets $ 412,984,498 $ 104,492,199
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 37,171,288 $ 15,203,103
Accounts payable to related parties 2,067,982 1,182,225
Current installments of capital leases 23,510 21,818
Bank line of credit -- 363,665
Microwave relocation obligations 263,366 3,578,155
------------- -------------
Total current liabilities 39,526,146 20,348,966
Long-term debt 207,351,584 71,876,379
Capital lease obligations, noncurrent 809,173 827,024
------------- -------------
Total liabilities 247,686,903 93,052,369
------------- -------------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value; 10,000,000 shares authorized;
no shares issued -- --
Common stock, $.01 par value; 290,000,000 shares authorized,
61,354,856 and 48,500,008 issued and outstanding at
September 30, 2000 and December 31, 1999, respectively 613,548 485,000
Additional paid-in capital 245,953,564 50,824,876
Accumulated deficit (79,717,514) (33,759,681)
Unearned compensation (1,552,003) (6,110,365)
------------- -------------
Total stockholders' equity 165,297,595 11,439,830
------------- -------------
Total liabilities and stockholders' equity $ 412,984,498 $ 104,492,199
============= =============
</TABLE>
# # #
