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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
July 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.)
3650 131st Avenue SE, Suite 400
Bellevue, WA 98006
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(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code: (425) 586-8700
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2001 NW Sammamish Road
Issaquah, WA 98027
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS
On July 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 The Snyder Buscher Group
(425) 586-8072 (206) 652-9704
[email protected] [email protected]
WESTERN WIRELESS REPORTS SECOND QUARTER 1998 RESULTS
- WIRELESS SUBSCRIBERS INCREASE 71 PERCENT OVER 1997 -
- CONTINUED POSITIVE CONSOLIDATED EBITDA IN THE SECOND QUARTER-
BELLEVUE, Wash. (July 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 second
quarter ended June 30, 1998.
"Western Wireless had a terrific second quarter" said John Stanton, chairman
and chief executive officer of Western Wireless. "While adding over 84,000 new
customers, the largest increase in subscribers in our history, for the second
quarter in a row the company had positive EBITDA (operating income before
depreciation and amortization) on a consolidated basis. Our Cellular One(R)
business grew rapidly and continued to generate free cash flow (EBITDA less
capital expenditures) while providing high quality wireless service to the
people we serve in rural America. We accelerated growth in subscribers in our
VoiceStream(R) PCS systems while at the same time we reduced our costs of
serving customers. During 1996 and 1997 we built the foundation for our
VoiceStream business, focusing on building high quality technical and customer
support systems. In 1998 we are seeing the benefit of those efforts."
"On the international front," Stanton continued, "Western Wireless made
great progress in all our markets, launching service in Iceland in May and
announcing in June that our partnership had been awarded a license to provide
wireless service in Ireland. The government of Ireland awarded the DCS-1800/GSM
900 mobile communications license to our partnership through a competitive
evaluation process."
CONSOLIDATED FINANCIAL RESULTS
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For the second quarter ended June 30, 1998, Western Wireless had 795,900
total wireless subscribers, a 71.4 percent increase over the second quarter of
1997. The company reported total revenues of $134.9 million for the quarter, up
48.8 percent over the same quarter a year ago. Consolidated EBITDA was $5.7
million for the second quarter of 1998. The company had a net loss of $53.0
million, a basic loss of $0.70 per share for the quarter, down from a loss of
$70.0 million, and a basic loss of $1.00 per share for the second quarter of
1997.
The company reported total revenues of $255.4 million for the six months
ended June 30, 1998, a 57.5 percent increase over the same period in 1997.
Consolidated EBITDA was $11.0 million for the six months ended June 30, 1998.
Net loss was $117.2 million, a basic loss of $1.55 per share for the six months
ended June 30, 1998, down from a loss of $125.2 million, a basic loss of $1.79
per share for the same period in 1997.
CELLULAR AND PCS SUMMARIES
For the quarter ended June 30, 1998, ending cellular subscribers were
583,300, a 49.6 percent increase over the same quarter in 1997. Cellular net
additions were 36,200 for the quarter. Cellular service revenues for the second
quarter of 1998 increased 38.4 percent from the same quarter a year ago to $95.2
million. Cellular EBITDA for the quarter was $35.9 million, a 43.6 percent
increase over the same quarter in 1997. Cellular free cash flow was $26.6
million for the second quarter, a 88.0 percent increase over the $14.1 million
free cash flow in the second quarter of 1997.
For the six months ended June 30, 1998, cellular net additions were 63,300.
Cellular service revenues for the same period were $183.0 million, a 45.2
percent increase over the six months ended June 30, 1997. For the six months
ended June 30, 1998, cellular EBITDA was $69.5 million, a 63.0 percent increase
over the same period a year ago. Cellular free cash flow for the six months
ended June 30, 1998, was $49.9 million, a 244.4 percent increase over the same
period in 1997.
At the end of the second quarter 1998, Western Wireless had 212,600
VoiceStream PCS subscribers, an increase of 185.8 percent over the 74,400 in the
same quarter of 1997. VoiceStream PCS net additions were 48,000 for the quarter,
a 89.0 percent increase over the second quarter of 1997. PCS service revenues
were $27.5 million for the quarter compared to $12.5 million for the second
quarter of 1997, an increase of 120.0 percent. For the six months ended June 30,
1998, the company had 84,000 VoiceStream PCS net additions. VoiceStream
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PCS service revenues for the same period were $50.3 million, a 153.9 percent
increase over the six months ended June 30, 1997.
Based in Bellevue, 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 name in 17 western
states. Marketed under the VoiceStream 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 PCS service in two additional markets, and owns licenses for another
20 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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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
Dated: July 23, 1998
By /s/ Alan R. Bender
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Alan R. Bender
Senior Vice President and
General Counsel
