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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report April 23, 1998
WESTERN WIRELESS CORPORATION
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(Exact Name of Registrant as Specified in Charter)
Washington
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(State or Other Jurisdiction of Incorporation)
000-28160 91-1638901
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(Commission File Number) (IRS Employer Identification No.)
2001 NW Sammamish Road
Issaquah, WA 98027
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (425) 313-5200
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS
On April 23, 1998, Western Wireless Corporation issued the following press
release:
FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION CONTACT:
Investment Community: Media:
Ken Prussing John Snyder
Western Wireless Corporation Kaufer Miller Communications
(425) 313-7803 (425) 450-9965
[email protected] [email protected]
www.kmrc.inter.net
WESTERN WIRELESS REPORTS FIRST QUARTER 1998 RESULTS
POSITIVE CONSOLIDATED EBITDA OF $5.3 MILLION IN THE FIRST QUARTER
ISSAQUAH, Wash. (April 23, 1998) -- Western Wireless Corporation (NASDAQ:
WWCA), a leading provider of cellular and personal communications services
(PCS), announced today its financial and operating results for the first quarter
ended March 31, 1998.
"Western Wireless had an outstanding first quarter." said John Stanton,
chairman and chief executive officer of Western Wireless. "We reached, in the
first quarter, the important milestone of having positive EBITDA (operating
income before depreciation and amortization) on a consolidated basis. This was
possible because of the continued outstanding growth in cash flow of our
cellular operations combined with the rapid growth in subscribers and revenues
of the newer PCS markets, while continuing to focus on cost controls."
TOTAL COMPANY RESULTS
At the end of the first quarter the company had 711,700 total wireless
subscribers, a 77.8 percent increase over the first quarter of 1997. The company
reported total revenues of $120.5 million for the quarter, up 68.4 percent over
the same quarter a year ago. Consolidated EBITDA was $5.3 million. Net loss was
$64.1 million, a basic loss of $0.85 per share for the quarter, compared to a
loss of $55.2 million, a basic loss of $0.79 per share for the first quarter of
1997.
CELLULAR AND PCS SUMMARIES
For the quarter ended March 31, 1998 ending cellular subscribers were
547,100, a 55.8 percent increase over the same quarter in 1997. Cellular net
additions were 27,100 for the quarter. Cellular service revenues for the first
quarter of 1998 increased 53.2 percent from the same quarter a year ago to $87.9
million. Cellular EBITDA for the quarter was $33.5 million, a 90.5 percent
increase over the same quarter in 1997. Cellular capital expenditures were $10.2
-More-
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Western Wireless Announces First Quarter 1998 Financial Results Page 2
million for the quarter. Cellular free cash flow (EBITDA less capital
expenditures) was $23.3 million for the first quarter.
At the end of the first quarter 1998, Western Wireless had 164,600
VoiceStream PCS subscribers compared to 49,000 in the same quarter of 1997.
VoiceStream PCS net additions were 36,000 for the quarter. PCS service revenues
were $22.8 million for the quarter compared to $7.3 million for the first
quarter of 1997.
Based in Issaquah, Wash., Western Wireless Corp. is a leading provider of
wireless communications services in the western United States. It currently
offers cellular service marketed under the Cellular One(R) name in 17 western
states. Marketed under the VoiceStream(R) Wireless name, Western Wireless
provides PCS service using the globally dominant GSM technology in seven U.S.
metropolitan markets. In addition, Western Wireless owns PCS licenses for 96
markets obtained through the Federal Communications Commission's D- and E-block
auctions. In conjunction with joint ventures Western Wireless provides
VoiceStream(R) PCS service in two additional markets, and owns licenses for
another 24 markets. As a result, Western Wireless' combined cellular and PCS
licenses, along with its joint ventures, cover 59 percent of the land in the
continental United States.
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Western Wireless Announces First Quarter 1998 Financial Results Page 3
WESTERN WIRELESS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended March 31,
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1998 1997
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<S> <C> <C>
Revenues:
Subscriber revenues $ 98,246 $ 56,685
Roamer revenues 11,131 6,694
Equipment sales and other revenues 11,136 8,181
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Total revenues 120,513 71,560
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Operating expenses:
Cost of service 23,009 20,237
Cost of equipment sales 21,929 13,065
General and administrative 38,439 24,703
Sales and marketing 31,832 24,525
Depreciation and amortization 37,549 26,421
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Total operating expenses 152,758 108,951
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Operating loss (32,245) (37,391)
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Other income (expense):
Interest and financing expense (31,188) (17,360)
Equity in net loss of unconsolidated affiliates (9,159) (1,087)
Other, net 2,689 665
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Total other income (expense) (37,658) (17,782)
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Minority interest in net loss of consolidated subsidiary 5,753
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Net loss $ (64,150) $ (55,173)
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Basic loss per common share $ (0.85) $ (0.79)
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Weighted average common shares used in computing
basic loss per common share 75,776,000 69,934,000
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</TABLE>
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Western Wireless Announces First Quarter 1998 Financial Results Page 4
WESTERN WIRELESS CORPORATION
SUPPLEMENTARY FINANCIAL AND OPERATIONAL DATA
(Dollars in thousands)
(Unaudited)
(Note: The following Table sets forth certain selected financial
and operating data of the company for the three months ended
March 31, 1998 and 1997.)
<TABLE>
<CAPTION>
Three Months Ended March 31,
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1998 1997
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Cellular PCS Cellular PCS
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<S> <C> <C> <C> <C>
Revenues:
Subscriber revenues $ 76,103 $ 22,143 $ 49,382 $ 7,303
Roamer revenues 10,487 644 6,694
Equipment sales 2,753 7,096 2,905 3,999
Other revenues 1,287 1,277
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Total revenues 90,630 29,883 60,258 11,302
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Operating expenses:
Cost of service 11,887 11,122 11,066 9,171
Cost of equipment sales 7,452 14,477 5,943 7,122
General and administrative 20,262 18,177 13,587 11,116
Sales and marketing 17,491 14,341 12,055 12,470
Depreciation and amortization 17,550 19,999 15,924 10,497
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Total operating expenses 74,642 78,116 58,575 50,376
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Operating income (loss) $ 15,988 $ (48,233) $ 1,683 $(39,074)
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EBITDA $ 33,538 $ (28,234) $ 17,607 $(28,577)
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Ending subscribers 547,100 164,600 351,200 49,000
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</TABLE>
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SIGNATURES
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 hereunto duly authorized.
WESTERN WIRELESS CORPORATION
April 23, 1998 By /s/ Alan R. Bender
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Date Alan R. Bender
Senior Vice President and
General Counsel
