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Previous: MORGAN STANLEY DEAN WITTER MULTI STATE MUNI SERIES TRUST, NSAR-A, EX-99, 2000-08-01 |
Next: NUMEREX CORP /PA/, 8-K, 2000-08-01 |
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 (Date of earliest event reported): April 1, 2000
RURAL CELLULAR CORPORATION
(Exact name of Registrant as Specified in its Charter)
Minnesota
(State or Other Jurisdiction of Incorporation)
| 0-27416 | 41-1693295 | |
| (Commission File Number) | (IRS Employer Identification No.) | |
| 3905 Dakota Street S.W., Alexandria, Minnesota |
|
56308 |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant's Telephone Number, Including Area Code (320) 762-2000
Former Name or Former Address, if Changed Since Last Report
Item 5. Other Events
Rural Cellular Corporation ("RCC") generates revenue from charges to its customers when they use their cellular phone in other wireless providers' markets ("Incollect Revenue"). Until April 2000, RCC included Incollect Revenue in the roaming revenue line item in its statement of operations. Expense associated with Incollect Revenue, charged by third-party wireless providers, was also included in roaming revenue on a net basis. RCC used this method because, historically, it has passed through to its customers most of the costs related to Incollect Revenue. However, the wireless industry, including RCC, has increasingly been using pricing plans that include flat rate pricing and larger home service areas. Under these types of plans, amounts charged to RCC by other wireless providers may not necessarily be passed through to its customers.
Beginning April 2000, RCC is including the associated expense from its incollect activity into network cost rather than reducing roaming revenue and is including Incollect Revenue as service revenue rather than increasing roaming revenue. Roaming revenue will only include the revenue from other wireless provider's customers who use RCC's network ("Outcollect Revenue"). This change in presentation has no impact on operating income or EBITDA.
The following table summarizes certain items from the statements of operations and other key operating data for prior periods reflecting this reclassification.
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Unaudited |
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Three months ended |
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Three months ended March 31, 2000 |
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Year Ended Dec. 31, 1999 |
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March 31, 1999 |
June 30, 1999 |
Sept. 30, 1999 |
Dec. 31, 1999 |
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| (Reclassified) | |||||||||||||||||||||
| Revenues: | |||||||||||||||||||||
| Service | $ | 27,716 | $ | 31,587 | $ | 33,554 | $ | 32,504 | $ | 125,361 | $ | 33,594 | |||||||||
| Roaming | 7,625 | 9,952 | 15,845 | 9,659 | 43,081 | 10,310 | |||||||||||||||
| Equipment | 1,272 | 1,623 | 2,809 | 1,595 | 7,299 | 2,725 | |||||||||||||||
| Total revenues | 36,613 | 43,162 | 52,208 | 43,758 | 175,741 | 46,629 | |||||||||||||||
| Network costs |
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9,292 |
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9,381 |
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10,385 |
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9,491 |
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38,549 |
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9,888 |
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| Operating income |
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3,719 |
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8,098 |
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14,096 |
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4,298 |
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30,211 |
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4,321 |
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| EBITDA | 13,446 | 18,025 | 23,991 | 16,026 | 71,488 | 15,521 | |||||||||||||||
| EBITDA margin |
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36.7 |
% |
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41.8 |
% |
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46.0 |
% |
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36.6 |
% |
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40.7 |
% |
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33.3 |
% |
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| Cellular ARPU: | $ | 55 | $ | 62 | $ | 71 | $ | 58 | $ | 62 | $ | 57 | |||||||||
| (As Originally Stated) |
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| Revenues: | |||||||||||||||||||||
| Service | $ | 23,642 | $ | 26,459 | $ | 28,162 | $ | 27,720 | $ | 105,983 | $ | 28,204 | |||||||||
| Roaming | 7,251 | 10,088 | 15,971 | 10,027 | 43,337 | 10,705 | |||||||||||||||
| Equipment | 1,272 | 1,623 | 2,809 | 1,595 | 7,299 | 2,725 | |||||||||||||||
| Total revenues | 32,165 | 38,170 | 46,942 | 39,342 | 156,619 | 41,634 | |||||||||||||||
| Network costs |
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4,844 |
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4,389 |
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5,119 |
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5,075 |
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19,427 |
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4,893 |
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| Operating income |
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3,719 |
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8,098 |
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14,096 |
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4,298 |
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30,211 |
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4,321 |
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| EBITDA | 13,446 | 18,025 | 23,991 | 16,026 | 71,488 | 15,521 | |||||||||||||||
| EBITDA margin |
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41.8 |
% |
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47.2 |
% |
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51.1 |
% |
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40.7 |
% |
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45.6 |
% |
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37.3 |
% |
||
| Cellular ARPU: | $ | 47 | $ | 54 | $ | 63 | $ | 51 | $ | 54 | $ | 49 | |||||||||
2
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 thereunto duly authorized.
| Date: August 1, 2000 | RURAL CELLULAR CORPORATION | |
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/s/ RICHARD P. EKSTRAND Richard P. Ekstrand President and Chief Executive Officer |
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