MetroPCS Reports Second Quarter 2010 Results
Record Adjusted EBITDA and Record Second Quarter Net Subscriber Additions
DALLAS, Aug 05, 2010 (BUSINESS WIRE) -- --Second Quarter 2010 Highlights Include:
--Record second quarter net subscriber additions of over 303 thousand
--Quarterly consolidated total revenues of $1.0 billion, an increase of approximately 18% over second quarter of 2009
--Quarterly consolidated Adjusted EBITDA of over $322 million, an increase of approximately 38% over second quarter of 2009
--Quarterly consolidated churn of 3.3%, down 250bps from 5.8% during the second quarter 2009 and down 40bps from first quarter 2010
--Quarterly net income of approximately $80 million, an increase of 205% over second quarter of 2009, and EPS of $0.22 compared to EPS of $0.07 in the second quarter of 2009
MetroPCS Communications, Inc. /quotes/comstock/13*!pcs/quotes/nls/pcs (PCS 9.35, +0.56, +6.34%) , the nation's leading provider of unlimited, flat-rate wireless communications service with no annual contract, today announced financial and operational results for the quarter ended June 30, 2010. MetroPCS reported growth in quarterly consolidated Adjusted EBITDA of approximately 38% over the second quarter 2009 and finished the second quarter 2010 with over 7.6 million subscribers.
"The outstanding operational and financial results for the second quarter were primarily a result of strong net subscriber additions and lower churn primarily driven by continued acceptance of our Wireless for All plans. Strong operational results and net subscriber growth of approximately 1.4 million subscribers over the past 12 months resulted in record consolidated Adjusted EBITDA for the company of over $322 million, up approximately 38% from the second quarter 2009. We continue to build our 4G LTE network, and we are currently testing in selected metropolitan areas. We are on track for our initial 4G LTE launch in selected metropolitan areas in the second half of this year. Our goal is to provide our pay-in-advance subscribers a 4G experience equivalent to that which will be enjoyed by traditional post-pay customers," said Roger D. Linquist, Chairman, President and Chief Executive Officer of MetroPCS.
"Our Wireless for All unlimited text/talk/Web tax-inclusive plans provide unparalleled value for the U.S. consumer. Our handset line-up is strong, highlighted by a number of Smartphones and QWERTY keyboard handsets and we are focused on introducing additional Smartphones and QWERTY handsets to our line-up. With our low cost structure, strong CDMA network, current service offerings and the anticipated launch of our 4G LTE network, we believe we are very well-positioned as a full service broadband wireless provider," Linquist concluded.
Key Consolidated Financial and Operating Metrics
(in millions, except percentages, per share, per subscriber and
subscriber amounts)
Three Months Ended Three Months Ended Six Months Ended Six Months Ended
June 30, 2010 June 30, 2009 June 30, 2010 June 30, 2009
------------------- ------------------- ------------------ ------------------
Service revenues $ 922 $ 767 $ 1,775 $ 1,494
Total revenues $ 1,013 $ 860 $ 1,983 $ 1,655
Income from operations $ 198 $ 116 $ 304 $ 247
Net income $ 80 $ 26 $ 103 $ 70
Diluted net income per common share $ 0.22 $ 0.07 $ 0.29 $ 0.20
Consolidated Adjusted EBITDA(1) $ 322 $ 234 $ 546 $ 433
Consolidated Adjusted EBITDA as a
percentage of service revenues 35.0 % 30.5 % 30.8 % 29.0 %
ARPU(1) $ 39.84 $ 40.52 $ 39.83 $ 40.46
CPGA(1) $ 164.29 $ 159.87 $ 153.72 $ 145.95
CPU(1) $ 17.90 $ 16.82 $ 18.33 $ 16.75
Churn-Average Monthly Rate 3.3 % 5.8 % 3.5 % 5.4 %
Consolidated Subscribers
End of Period 7,634,135 6,256,112 7,634,135 6,256,112
Net Additions 303,009 205,585 994,611 889,279
Penetration of Covered POPs(2) 8.0 % 7.2 % 8.0 % 7.2 %
(1) For a reconciliation of non-GAAP financial measures, please refer to the section entitled "Definition of Terms and Reconciliation of non-GAAP Financial Measures" included at the end of this release.
(2) Number of covered POPs covered by MetroPCS Communications, Inc. network increased approximately 8 million from 6/30/09 to 6/30/10.
Quarterly Consolidated Results
-- MetroPCS reported consolidated service revenues of $922 million for the second quarter, an increase of $155 million, or 20%, when compared to the prior year's second quarter.
-- Income from operations increased $82 million, or 71%, for the quarter ended June 30, 2010 when compared to the prior year's second quarter.
-- Net income for the quarter increased approximately $54 million, or 205%, for the quarter ended June 30, 2010 when compared to the prior year's second quarter.
-- Consolidated Adjusted EBITDA of approximately $322 million increased by $88 million, or approximately 38%, when compared to the same period in the previous year.
-- Average revenue per user (ARPU) of $39.84 for the second quarter represents a decrease of $0.68 when compared to the second quarter of 2009 and an increase of $0.01 when compared to the first quarter of 2010.
-- The Company's cost per gross addition (CPGA) of $164.29 for the quarter represents an increase of $4.42 when compared to the prior year's second quarter.
-- Cost per user (CPU) increased to $17.90 in the second quarter, or 6%, when compared to the second quarter of 2009. The increase in CPU is primarily driven by the increase in handset subsidies on existing customers, the inclusion of regulatory fees in the tax-inclusive service pricing on our Wireless for All customers, as well as the costs associated with our unlimited international calling service.
-- Churn decreased 250 basis points from 5.8% to 3.3%, when compared to the second quarter of 2009. The decrease in churn was primarily driven by acceptance of our Wireless for All offerings including a decline in false churn as we no longer offer the first month of service for free.
Effective January 1, 2010, in accordance with the provisions of Accounting Standards Codification 280 "Segment Reporting," the Company now aggregates its thirteen operating segments into one reportable segment.
MetroPCS Conference Call Information
MetroPCS Communications, Inc. will host a conference call to discuss its Second Quarter 2010 Earnings Results at 9:00 a.m. Eastern Daylight Time (EDT) on Thursday, August 5, 2010.
Date: Thursday, August 5, 2010
Time: 9:00 a.m. EDT
Call-in Numbers: Toll free: 888-464-7607
International: 706-634-9318
Participant Passcode: 81837565
