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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
May 11, 1999
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
(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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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS
On May 11, 1999, Western Wireless Corporation issued the following press
release:
FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION CONTACT:
Investment Community: Media:
Ken Prussing John Snyder
(425) 586-8072 Snyder Buscher Group
[email protected] (206) 652-9704
[email protected]
WESTERN WIRELESS ANNOUNCES FIRST QUARTER 1999 FINANCIAL RESULTS
- CELLULAR CASH FLOW OF $44.4 MILLION FOR THE FIRST QUARTER -
- 35,100 INCREASE IN CELLULAR SUBSCRIBERS DURING THE FIRST QUARTER OF 1999 -
BELLEVUE, Wash. (May 11, 1999) -- Western Wireless Corporation (NASDAQ:
WWCA), a leading provider of cellular, announced today its financial and
operating results for the first quarter ended March 31, 1999.
"The need for telecommunication services in rural communities has never
been greater. We look forward to being an integral part of the 21st Century
infrastructure in rural America." said John W. Stanton, chairman and chief
executive officer of Western Wireless. "Through Western Wireless International,
we are bringing the latest wireless technology to seven countries. In each of
these markets, we are using our expertise to support the economic growth and
development by providing essential communications services."
"Western Wireless cellular operations are off to a great start in 1999",
continued Stanton. "With record subscriber and revenue growth, Western Wireless
continues to be one of the industry leaders. We continued to see good growth in
EBITDA (operating income before depreciation and amortization) during the first
quarter of 1999, as it is up 32.5 percent from the same quarter in 1998 to $44.4
million."
TOTAL COMPANY RESULTS
At the end of the first quarter 1999 the company reported total revenues
of $115.9 million for the quarter, up 28 percent over the same quarter a year
ago. Net loss from continuing operations was $5.2 million for the quarter ending
March 31, 1999, a loss of $0.07 per share. Net loss for the quarter ending March
31, 1999, was $113.6 million, a loss of $1.49 per share. On May 3, 1999
VoiceStream Wireless was spun-off to shareholders of Western Wireless. This
spin-off was a tax free distribution of one share of VoiceStream Wireless
(NASDAQ: VSTR) for each share of Western Wireless stock owned. The net loss for
the first quarter of 1999 includes a net
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loss of $89.9 million from the VoiceStream discontinued operations and $18.5
million due to the cost of the discontinuance.
WESTERN WIRELESS CELLULAR RESULTS
Cellular subscribers increased by 35,100 to 695,500 during the first
quarter of 1999, a 27 percent year to year increase. Cellular service revenues
for the first quarter of 1999 increased 27 percent from the same quarter a year
ago to $111.5 million. Cellular EBITDA for the quarter was $44.4 million, a 32.5
percent increase over the same quarter in 1998. Cellular capital expenditures
were $21.4 million for the quarter. The cellular business generated over $23
million in free cash flow (EBITDA less capital expenditures) during the first
quarter of 1999.
WESTERN WIRELESS INTERNATIONAL
Western Wireless International ("WWI"), continued to make good progress
during the first quarter. WWI's operating companies in Latvia, Georgia, and
Iceland provide service to over 95,000 subscribers as of the end of the first
quarter 1999. WWI is on track to launch new service in Croatia and Haiti on
schedule during 1999. Operations in Ghana are progressing with the our
international gateway carrying both inbound and outbound traffic.
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(R) name in 17 western
states.
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WESTERN WIRELESS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Dollars in thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended March 31,
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1999 1998
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<S> <C> <C>
Revenues:
Subscriber revenues $ 86,934 $ 76,103
Roamer revenues 23,250 10,487
Equipment sales and other revenues 5,679 4,040
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Total revenues 115,863 90,630
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Operating expenses:
Cost of service 15,504 11,887
Cost of equipment sales 7,763 7,452
General and administrative 26,704 20,262
Sales and marketing 21,460 17,491
Depreciation and amortization 22,441 17,550
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Total operating expenses 93,872 74,642
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Operating income 21,991 15,988
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Other income (expense):
Interest and financing expense, net (23,296) (20,021)
Equity in net loss of unconsolidated affiliates (4,761) (2,081)
Other, net 647 512
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Total other expense (27,410) (21,590)
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Minority interest in net loss of consolidated subsidiaries 192
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Net loss from continuing operations (5,227) (5,602)
Net loss from discontinued operations (89,861) (58,548)
Cost of discontinuance (18,500)
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(108,361) (58,548)
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Net loss $ (113,588) $ (64,150)
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Basic and diluted loss per common share
Continuing operations $ (0.07) $ (0.07)
Discontinued operations (1.18) (0.77)
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Basic and diluted loss per common share $ (1.49) $ (0.84)
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Weighted average common shares used in computing
basic loss per common share 76,252,000 75,968,000
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Comprehensive income (loss)
Net loss $ (113,588)
Other comprehensive income:
Foreign currency translation adjustment 152
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Total comprehensive loss $ (113,436)
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Supplemental data:
EBITDA (operating income before depreciation and amortization) $ 44,432 $ 33,538
============ ============
Ending Subscribers 695,500 547,100
</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
Dated: May 11, 1999
By /s/ Alan R. Bender
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Alan R. Bender
Senior Vice President,
General Counsel and Secretary
