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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
October 27, 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)
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<S> <C>
000-28160 91-1638901
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(Commission File Number) (IRS Employer Identification No.)
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Suite 400
3650 131st Avenue SE
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
FOR IMMEDIATE RELEASE
WESTERN WIRELESS ANNOUNCES THIRD QUARTER 1999 FINANCIAL RESULTS
- COMPANY EARNS FIRST QUARTERLY PROFIT -
- CASH FLOW OF $71.7 MILLION AND AN INCREASE IN SUBSCRIBERS OF 36,400 -
BELLEVUE, Wash. (October 26, 1999) -- Western Wireless Corporation (NASDAQ:
WWCA), a leading provider of communication services to rural America, announced
today its financial and operating results for the third quarter ended September
30, 1999.
"We had a great third quarter with strong revenue growth and our first
positive earnings per share," said John W. Stanton, chairman and chief executive
officer of Western Wireless. "The company achieved record average revenue per
subscriber. EBITDA (operating income before non-cash charges) exceeded $71
million during the third quarter of 1999, a 65 percent increase from the same
quarter in 1998."
"We also had positive cash flow for Western Wireless International, and
strong subscriber growth," continued Stanton.
Mikal Thomsen, president and chief operating officer of Western Wireless,
added, "We added or upgraded 75 cell sites this quarter, allowing the company to
realize increased revenue while improving the quality of our customer's
experience."
COMPANY RESULTS
At the end of the third quarter 1999, the company reported total revenues
of $157 million, up 41 percent over the same quarter a year ago. Net income was
$13.5 million for the quarter ended September 30, 1999, resulting in basic
income per share of $0.18.
Domestic subscribers increased by 36,400, to 774,000, during the third
quarter of 1999, a 25 percent year to year increase. Service revenues for the
third quarter of 1999 increased 41 percent from the same quarter a year ago to
$150 million. EBITDA for the quarter was $71.7 million, a 65 percent increase
over the third quarter of 1998. Capital expenditures were $50.5 million for the
quarter. Over $21 million in free cash flow (EBITDA less capital expenditures)
was generated during the third quarter of 1999.
Western Wireless International operating companies in Croatia, Georgia,
Ghana, Haiti, Iceland, and Latvia, continued their impressive growth in the
third quarter of 1999. Service was successfully launched in Croatia and Haiti
during the quarter.
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Based in Bellevue, Wash., Western Wireless Corp. is a leading provider of
wireless communications services in the western United States and abroad. It
currently offers cellular service marketed under the Cellular One(R) name in 18
western states. Through its subsidiaries, Western Wireless offers wireless
service in 6 countries.
FOR FURTHER INFORMATION CONTACT:
Investment Community: Media:
Gina Haggerty John Snyder
(800) 261-5960 Snyder Buscher Group
[email protected] (206) 652-9704
[email protected]
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[WESTERN WIRELESS LOGO]
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WESTERN WIRELESS CORPORATION
SUPPLEMENTARY FINANCIAL AND OPERATIONAL DATA
(Dollars in thousands)
(Unaudited)
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THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
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1999 1998 1999 1998
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Revenues:
Subscriber revenues ...................... $102,441 $ 84,942 $284,643 $241,802
Roamer revenues .......................... 46,461 20,972 104,142 44,669
Equipment sales .......................... 6,809 4,133 16,680 10,097
Other revenues ........................... 1,333 1,317 3,993 3,830
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Total revenues ..................... 157,044 111,364 409,458 300,398
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Operating expenses:
Cost of service .......................... 17,765 14,415 48,717 40,013
Cost of equipment sales .................. 10,030 9,247 25,854 24,224
General and administrative ............... 30,341 22,313 85,893 64,361
Sales and marketing ...................... 27,188 21,964 71,094 58,899
Depreciation and amortization ............ 27,020 19,199 76,065 54,241
Stock based compensation ................. 3,850 70,346
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Total operating expenses ........... 116,194 87,138 377,969 241,738
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Operating income ............................... $ 40,850 $ 24,226 $ 31,489 $ 58,660
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Recurring EBITDA ............................... $ 71,720 $ 43,425 $177,900 $112,901
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Beginning subscribers .......................... 737,600 583,300 660,400 520,000
Change in subscribers (excluding acquisitions).. 36,400 32,200 108,400 95,200
Change in subscribers due to acquisitions ...... -- 4,800 5,200 5,100
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Total change in subscribers .................... 36,400 37,000 113,600 100,300
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Ending subscribers ............................. 774,000 620,300 774,000 620,300
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(1) RECURRING EBITDA REPRESENTS EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION, AMORTIZATION AND STOCK BASED COMPENSATION.
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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: October 27, 1999
By /s/ Alan R. Bender
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Alan R. Bender
Executive Vice President,
General Counsel and Secretary
