<PAGE> 1
EXHIBIT 99.1
EASTERLY
INVESTOR RELATIONS NEWS RELEASE
Client: Alamosa PCS Holdings, Inc.
Contacts: Kendall Cowan, CFO
FOR IMMEDIATE RELEASE 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 SECOND QUARTER RESULTS
Sequential Subscriber Base Grew 38 Percent; Subscriber Revenue Grew 51 Percent
JULY 27, 2000 - LUBBOCK, TEXAS - Alamosa PCS Holdings Inc. (NASDAQ: APCS), The
1999 Sprint PCS Affiliate of the Year, today reported strong sequential
subscriber growth and service revenues for the second quarter ended June 30,
2000. Subscribers grew to 69,569 at the end of the second quarter, up 19,057
subscribers, or 38 percent, over subscribers at the end of the first quarter of
2000. Subscriber revenues for the second quarter were $10.7 million, up 51
percent over the first quarter of 2000.
"We are pleased with our growth during the second quarter and first half of
2000," said David E. Sharbutt, Chairman and Chief Executive Officer. "Given the
strong subscriber growth and additional capital from our recent public
offerings, we have accelerated our build-out plans with a capital expenditure
budget of over $150 million for 2000, culminating in the expected launch of our
Wisconsin markets in the fourth quarter of this year. We presently have 225
sites and 4 switches in operation and expect to add at least 325 more sites and
3 more switches by the end of the year."
On February 3, 2000, the Company completed its initial public offering of
12,321,100 shares of common stock, at $17 per share, raising net proceeds of
$195 million, and concurrently issued Senior Discount Notes at 12 7/8%, raising
net proceeds of $181 million. The Company simultaneously amended its credit
agreement with Nortel Networks to increase its credit facility to $250 million
before it prepaid $75 million, leaving borrowing capacity of $175 million. Part
of these proceeds will be used for capital expenditures as Alamosa continues to
build-out its network in Texas, New Mexico, Arizona, Colorado, California and
Wisconsin, where it has approximately 8.4 million licensed pops under its
agreement with Sprint PCS.
<PAGE> 2
Total revenue for the second quarter of 2000 was $17,233,000 including
subscriber revenue of $10,733,000, roaming revenue of $4,311,000 and product
sales of $2,189,000. Subscriber revenue represented a 51 percent increase over
the first quarter of 2000, while roaming revenue grew 44 percent. Earnings
before interest, taxes, depreciation and amortization, or EBITDA, excluding
non-cash compensation was negative ($7,332,000) for the second quarter of 2000.
Excluding selling and marketing expense, pre-marketing EBITDA was a positive
$1,923,000 for the quarter.
Average monthly revenue per user (ARPU) was $83 for the quarter including
roaming and $60 without roaming. Average minutes of use per month were 449 per
average subscriber including roaming and 368 without roaming. Churn was
approximately 2.8 percent, and total system minutes of use were approximately 81
million for the quarter, compared to 52 million for the previous quarter.
For the six months ended June 30, 2000, Alamosa reported total revenue of
$28,919,000, comprised of $17,830,000 of subscriber revenue, $7,316,000 of
roaming revenue and $3,773,000 of product sales revenue. EBITDA excluding
non-cash compensation for the six-month period was negative ($14,216,000).
At the end of the quarter, Alamosa PCS had cash and short-term investments
of approximately $263 million and committed but unused credit facilities of
approximately $170 million. Capital expenditures for the second quarter were
$53.3 million.
[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. With a territory that
includes a licensed population of approximately 8.4 million residents, Alamosa
PCS is one of the nation's largest Sprint PCS Network Partners 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 term 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
managesment'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; 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
(unaudited)
<TABLE>
<CAPTION>
For the three months ended For the six months ended
June 30 June 30
------------------------------- -------------------------------
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenue:
Service revenue $ 15,044,154 $ 1,504 $ 25,146,175 $ 1,504
Product sales 2,189,066 33,588 3,772,424 33,588
------------ ------------ ------------ ------------
Total revenue 17,233,220 35,092 28,918,599 35,092
------------ ------------ ------------ ------------
Costs and expenses:
Cost of service and operations 10,856,488 668,319 18,125,782 668,319
Cost of service and operations - related
parties 192,217 -- 324,780 --
Cost of products sold 2,063,279 32,458 3,674,997 32,458
Selling and marketing 9,237,252 866,066 17,339,722 866,066
Selling and marketing - related parties 143,131 89,812 212,374 89,812
General and administrative expenses
(excluding non-cash compensation expense) 1,830,523 423,003 3,078,147 1,290,463
Equity participation compensation expense 921,116 1,802,578 4,893,746 2,793,832
General and administrative - related
parties 241,913 27,515 379,053 135,340
Depreciation and amortization 2,490,990 118,432 4,747,937 127,056
------------ ------------ ------------ ------------
Total costs and expenses 27,976,909 4,028,183 52,776,538 6,003,346
------------ ------------ ------------ ------------
Loss from operations (10,743,689) (3,993,091) (23,857,939) (5,968,254)
Interest and other income 4,407,978 103,803 6,722,463 341,071
Interest expense (6,572,090) (128,285) (11,352,199) (135,379)
------------ ------------ ------------ ------------
Net loss $(12,907,801) $ (4,017,573) $(28,487,675) $ (5,762,562)
============ ============ ============ ============
Net loss per common share, basic and
diluted $ (0.21) $ (0.08) $ (0.48) $ (0.12)
============ ============ ============ ============
Weighted average common shares
outstanding, basic and diluted 61,354,606 48,500,008 59,026,759 48,500,008
============ ============ ============ ============
</TABLE>
<PAGE> 5
ALAMOSA PCS HOLDINGS, INC. AND SUBSIDIARIES AND PREDECESSORS
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30,
2000 December 31,
(unaudited) 1999
------------- -------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 241,038,281 $ 5,655,711
Short-term investments 21,840,763 --
Accounts receivable, net of allowance for doubtful accounts 1,319,352 1,675,636
Inventory 2,151,772 5,777,375
Prepaid expenses and other assets 551,071 882,516
------------- -------------
Total current assets 266,901,239 13,991,238
Property and equipment, net 142,219,575 84,713,724
Debt issuance costs, net 13,853,077 3,743,308
Restricted cash -- 518,017
Other noncurrent assets 431,023 1,525,912
------------- -------------
Total assets $ 423,404,914 $ 104,492,199
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 36,853,543 $ 15,203,103
Accounts payable to related parties 1,834,723 1,182,225
Current installments of capital leases 22,932 21,818
Bank line of credit -- 363,665
Microwave relocation obligations 527,715 3,578,155
------------- -------------
Total current liabilities 39,238,913 20,348,966
Long-term debt 201,098,342 71,876,379
Capital lease obligations, noncurrent 815,272 827,024
------------- -------------
Total liabilities 241,152,527 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,
61,354,606 and 48,500,008 issued and outstanding at
June 30, 2000 and December 31, 1999, respectively 613,546 485,000
Additional paid-in capital 245,949,316 50,824,876
Accumulated deficit (62,247,356) (33,759,681)
Unearned compensation (2,063,119) (6,110,365)
------------- -------------
Total stockholders' equity 182,252,387 11,439,830
------------- -------------
Total liabilities and stockholders' equity $ 423,404,914 $ 104,492,199
============= =============
</TABLE>
# # #
