Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - NTELOS HOLDINGS CORP. | d539200d8k.htm |
 Investor Presentation
May 2013
Exhibit 99.1
NASDAQ: NTLS |
 Presentation of Financial and Other Important Information
2
NASDAQ: NTLS
USE OF NON-GAAP FINANCIAL MEASURES
Included in this presentation are certain non-GAAP financial measures that are not determined in
accordance with US generally accepted accounting principles (“GAAP”). These financial
performance measures are not indicative of cash provided or used by operating activities and exclude the effects of
certain operating, capital and financing costs and may differ from comparable information provided by
other companies, and they should not be considered in isolation, as an alternative to, or more
meaningful than measures of financial performance determined in accordance with US generally accepted
accounting principles. These financial performance measures are commonly used in the industry and are
presented because NTELOS believes they provide relevant and useful information to investors.
NTELOS utilizes these financial performance measures to assess its ability to meet future capital expenditure
and working capital requirements, to incur indebtedness if necessary, and to fund continued
growth. NTELOS also uses these financial performance measures to evaluate the performance
of its business, for budget planning purposes and as factors in its employee compensation programs. Adjusted
EBITDA is defined as net income attributable to NTELOS Holdings Corp. before interest, income taxes,
depreciation and amortization, accretion of asset retirement obligations, gain/loss on
derivatives, net income attributable to non-controlling interests, other expenses/income, equity based compensation
charges, acquisition related charges, net loss from discontinued operations and costs related to the
separation of the wireless and wireline companies. Please review the reconciliations and other
definitions of non-GAAP financial measures contained in the press releases filed by the Company with the SEC,
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Any statements contained in this presentation that are not statements of historical fact, including
statements about our beliefs and expectations, are forward- looking statements and should be
evaluated as such. The words “anticipates,” “believes,” “expects,” “intends,” “plans,” “estimates,” “targets,” “projects,”
“should,” “may,” “will” and similar words and expressions are intended
to identify forward-looking statements. Such forward-looking statements reflect, among
other things, our current expectations, plans and strategies, and anticipated financial results, all of which are subject to known and unknown risks,
uncertainties and factors that may cause our actual results to differ materially from those expressed
or implied by these forward-looking statements. Many of these risks are beyond our ability
to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these
forward-looking statements. Furthermore, forward-looking statements speak only as of the date
they are made. We do not undertake any obligation to update or review any forward-looking
information, whether as a result of new information, future events or otherwise. Important factors with respect to any
such forward-looking statements, including certain risks and uncertainties that could cause actual
results to differ from those contained in the forward-looking statements, include, but are
not limited to: our ability to attract and retain retail subscribers to our services; our dependence on our strategic relationship and
the potential outcome of any disputes with Sprint Nextel (“Sprint”); a potential increase in
roaming rates and wireless handset subsidy costs; rapid development and intense competition in
the telecommunications industry; our ability to finance, design, construct and realize the benefits of any planned
network technology upgrade; our ability to acquire or gain access to additional spectrum; the
potential to experience a high rate of customer turnover; the potential for Sprint and others
to build networks in our markets; cash and capital requirements; operating and financial restrictions imposed by our senior
credit facility; adverse economic conditions; federal and state regulatory fees, requirements and
developments; loss of ability to use our current cell sites; our continued reliance on indirect
channels of retail distribution; our reliance on certain suppliers and vendors; and other unforeseen difficulties that may occur.
These risks and uncertainties are not intended to represent a complete list of all risks and
uncertainties inherent in our business, and should be read in conjunction with the more
detailed cautionary statements and risk factors included in our SEC filings, including our most recent Annual Report filed on
Form 10-K.
including those filed on Form 8-K on April 30, 2012, August 1, 2012, November
1, 2012 , February 28, 2013 and May 7, 2013. |
 Company Overview
3
Leading pure-play wireless carrier in mid-Atlantic region
Headquartered in Waynesboro, VA
Exclusive CDMA Network provider for Sprint in WV and Western VA
NTELOS-branded retail postpay and prepay subscribers; robust wholesale
business NASDAQ: NTLS
NASDAQ: NTLS –
Market Capitalization approximately $324 million¹
7.9 million licensed POPs; covered POPs of 6.0 million; approx. 451,000
subscribers ¹
As of market close 5/13/13 |
 Investment Considerations
Leading “pure-play”
Mid-Atlantic regional wireless company
4
Strategic asset set
Strong free cash flow
Broad geographic and network technology footprint
Experienced management team
NASDAQ: NTLS
Competitive and diversified business model |
 Key
Operating Strategies 5
Elevate brand & best value in wireless position to improve quality of
subscriber base and grow market share
Enhance customer experience at all touch points by focusing on core differentiators
of Savings, Simplicity and Service to improve customer satisfaction and
reduce subscriber
churn
Leverage disciplined network investments to expand revenues and margins
Drive Smartphone and data services penetration to increase ARPU
NASDAQ: NTLS
Manage cost structure to improve profitability |
 Regional Wireless Service Provider
NASDAQ: NTLS
6
Ntelos Covered Network
Sprint Wholesale Markets
STRATEGIC NETWORK ASSETS |
 Carriers Without Network Assets in NTELOS’s Footprint
7
NASDAQ: NTLS
West Virginia / Virginia West
Leap
Metro PCS
Sprint¹
T-Mobile
US Cellular²
Virginia East
Leap
Metro PCS
US Cellular
¹Sprint’s retail business runs on NTELOS’s Network
²US Cellular has network assets and retail business within a portion of
NTELOS’s footprint |
 Attractive Spectrum Portfolio
8
NASDAQ: NTLS
Average Spectrum Depth in Key Markets
Source:
Map
Info:
Custom
Data,
Total
Population
–
Current
Year
and
Five
Year
USA
by
Block
Group:
United
States,
SO215245
Band
Commentary
PCS
Average depth of 23 MHz
Scarce strategic asset
AWS
Significant spectrum
holdings in contiguous
markets in western Virginia
Currently undeployed
MHZ
3,673
2,710
1,767
1,016
Licensed POPs
(000’s)
302
200
209
216
205
278
66
0
10
20
30
Virginia East
Virginia West
West Virginia
Other
Roanoke, VA
Highland, VA
Bedford, VA
Giles, VA
Charlottesville, VA
Lynchburg, VA
Bath, VA
PCS
AWS |
 Competitively Differentiated Retail Model
SAVINGS
SIMPLICITY
SERVICE
Driving consideration for
“the best value in
wireless”
proposition
Making it “easy”
to switch
Creating “raving fans”
through superior
customer service
9
NASDAQ: NTLS
Note: Historical examples of campaigns; not to be considered current offers.
|
 Closing the Device Gap on Competition
10
NASDAQ: NTLS
Best
Q4 2009
Q4 2010
1Q 2013
Better
Good
LG Optimus
Plus
Motorola
Defy XT
Alcatel One
Touch Ultra
Motorola
Milestone 3
HTC One V
Samsung Galaxy S II
Motorola
RAZR MAXX
Motorola
Milestone PLUS
iPhone 4
iPhone 4S
iPhone 5
BlackBerry
Curve 8330
BlackBerry
Pearl Flip
8230
HTC Hero
Android
BlackBerry
Pearl
8130
HTC 6800
HTC Touch
Diamond
BlackBerry
Curve 8330
BlackBerry
Pearl Flip
8230
HTC Snap
HTC Hero
Android
BlackBerry
Tour 9630 |
 Smartphone Penetration
11
NASDAQ: NTLS
iPhone Update:
14,700 or 72% sold to new customers
5,800 or 28% sold to upgrading
subscribers
As of March 31, 2013:
20,500 iPhones sold in 1Q13
30% of 1Q13 gross additions were iPhones
27% of postpaid base had iPhones as of
March 31, 2013
63% of postpaid subscribers have a
smartphone
53% of prepaid subscribers have a
smartphone
0%
10%
20%
30%
40%
50%
60%
70%
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q 2013
Smartphone Penetration |
 NTELOS Branding Resonating With Consumers
12
Positive net ports
vs. all other carriers
Source: Independent third-party research studies.
(4,000)
(2,000)
0
2,000
4,000
6,000
8,000
1Q
2010
2Q
2010
3Q
2010
4Q
2010
1Q
2011
2Q
2011
3Q
2011
4Q
2011
1Q
2012
2Q
2012
3Q
2012
4Q
2012
1Q
2013
Net Ports
1Q11
1Q12
1Q13
Unaided
Awareness
16%
28%
31%
Unaided
Recall
13%
24%
27%
Purchase
Consideration
6%
14%
12% |
 Managing Churn to Enhance Profitability
13
NASDAQ: NTLS
Prepaid Churn
Postpaid Churn
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
3Q 2011
4Q 2011
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q 2013
1.0%
1.5%
2.0%
2.5%
3.0%
3Q 2011
4Q 2011
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q 2013 |
 Subscribers –
Return to Growth
14
NASDAQ: NTLS
Highest quarterly net adds since 1Q08
(4,700)
(9,800)
(500)
6,800
3,500
5,500
9,300
11,400
(15,000)
(10,000)
(5,000)
0
5,000
10,000
15,000
2Q 2011
3Q 2011
4Q 2011
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q 2013 |
 Average Revenue Per User (ARPU)
15
NASDAQ: NTLS
1Q13 Blended ARPU up 10% year-over-year to $53.87
1Q13 Postpaid ARPU up 15% year-over-year to $62.67
+10%
$46.00
$47.00
$48.00
$49.00
$50.00
$51.00
$52.00
$53.00
$54.00
$55.00
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q 2013
Blended ARPU
$50.00
$52.00
$54.00
$56.00
$58.00
$60.00
$62.00
$64.00
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q 2013
Postpaid ARPU
+15% |
 Significant Growth in Operating Revenues
16
NASDAQ: NTLS
millions
+8%
1Q13 revenue increased 8% from 1Q12 to $119.3 million
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
1Q 2012
1Q 2013
Retail
Wholesale & Other |
 Retail Revenue Gains Momentum
17
NASDAQ: NTLS
millions
Subscriber revenue growth driven by both:
ARPU growth
Subscriber growth
1Q13 retail revenue increased 3% sequentially and 12% from 1Q12 to $77.6
million Highest level since 1Q109
+12%
$64.0
$66.0
$68.0
$70.0
$72.0
$74.0
$76.0
$78.0
$80.0
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q 2013 |
 Wholesale/Other Revenue Shows Growth
18
NASDAQ: NTLS
millions
+1%
1Q13 wholesale/other revenue increased 1% from 1Q12 to $41.8 million
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
1Q 2012
1Q 2013 |
 Growth in Cell Sites
19
NASDAQ: NTLS
Expands wholesale coverage
Controls roaming costs
Mitigates churn risk
As of March 31, 2013, 88% of cell sites support 3G EV-DO
Remaining sites expected to be upgraded by Summer 2013
1,365
1,378
1,396
1,429
1,431
1,320
1,340
1,360
1,380
1,400
1,420
1,440
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q 2013 |
 Network Evolution
NASDAQ: NTLS
20
•
6.0mm covered POPs; 7.9 mm licensed
POPs
•
88% of covered POPs are served with 3G
EV-DO Rev. A
•
Primarily Alcatel Lucent equipment
•
1,431 cell sites deployed
•
Market level spectrum holdings ranging from
10 MHz to 50 MHz
•
PCS average depth of 23 MHz
•
AWS average depth of 20 MHz
•
Additional spectrum includes
•
Small amount of WCS and BRS
•
Opportunities for additional spectrum
and spectrum sharing being evaluated
•
Upgrade history
•
1xRTT launched in 2002
•
EV-DO Rev A launched in 2008
•
LTE Drivers
•
Serve the needs of our retail
subscribers
•
Maintain competitive position in
marketplace
•
Optimize long-term network
operating cost with new technology
•
Serve the needs of our largest
wholesale customer, Sprint
•
Deployment Plan
•
Launch first LTE markets in 2H 2013
•
Complete initial build-out by year-end
2014; 70% of covered POPs
•
Devices supporting Band Classes 2,
4 and 25
•
Estimated network CapEx of
approximately $60mm to $65mm
Current network
4G LTE upgrade plans |
 Sprint Strategic Network Alliance Evolution
21
NASDAQ: NTLS
1999
8/1999:
Agreement
with Horizon PCS
(Sprint affiliate)
10/2010:
Sprint
announces
Network Vision
2010
8/2004:
Horizon
bankruptcy; Sprint
agreement signed
8/2007:
Amends
agreement with Sprint
10/2006:
Sprint
launches EV-DO
Rev A in San Diego
2006
9/2012:
Sprint
has
19
metropolitan areas
with 4G LTE
2012
2008
3/2008:
Launch
of EV-DO
11/2008:
Completes
EV-DO build
2013
3/2013:
Sprint
has
88 metropolitan
areas with 4G LTE
2008
2004 |
 Sprint Strategic Network Alliance Service
22
NASDAQ: NTLS
Exclusively provides 3G services to large number of Sprint home and travel
subscribers
Encompasses approximately
•
2.0mm covered POPs in WV and Western VA
•
823 cell sites
•
36,800 square miles
Provides ~$40mm in quarterly revenues
Sprint relationship update
•
Rate dispute previously outlined remains outstanding; ranges updated to:
•
Sprint’s favor: $11.0 million
•
nTelos’s favor: $18.0 million
•
$4.2 million unrelated dispute raised during 3Q, isolated to historical billing
issues •
$14.1 million accrual recorded for the disputes, included in current
liabilities |
 Sprint Strategic Network Alliance Leverages NTELOS’s Network
23
NASDAQ: NTLS
Strategic Network Alliance revenues
(1)
(1)
Excludes roaming
Sprint Nextel Strategic Network Alliance
through at least July 2015
$9 million monthly minimum revenue
guarantee
Attractive contribution to margin
Growing Usage
Significant growth in data usage
since EV-DO launched
Voice continues to grow
Calculated revenues exceeded
the $9 million monthly minimum in
all quarters of 2011 and 2012
millions
$22
$23
$23
$24
$24
$25
$24
$23
$11
$13
$15
$16
$17
$17
$17
$17
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2Q 2011
3Q 2011
4Q 2011
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q 2013
Total Voice
Total Data |
 Financial Summary |
 Operating Revenues
25
NASDAQ: NTLS
millions
+8%
$69
$70
$71
$75
$77
$41
$42
$43
$42
$42
$111
$112
$115
$117
$119
$0
$20
$40
$60
$80
$100
$120
$140
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q 2013
Sprint, Wholesale & Other
Retail |
 Adjusted EBITDA
26
NASDAQ: NTLS
millions
Investments in network and smartphone lineup driving return to growth in
EBITDA $36
$34
$32
$33
$37
$29
$30
$31
$32
$33
$34
$35
$36
$37
$38
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q 2013 |
 Historical Financial Performance
27
NASDAQ: NTLS
Revenue
Adjusted EBITDA
$407
$423
$454
$100
$140
$180
$220
$260
$300
$340
$380
$420
$460
2010
2011
2012
millions
$142
$143
$135
$135 -
$145
$50
$70
$90
$110
$130
$150
2010
2011
2012
2013 G
millions |
 Managing Free Cash Flow with Disciplined Capital Investment
28
NASDAQ: NTLS
CapEx
millions
millions
CapEx
Adjusted EBITDA less CapEx
Note: Excludes wireline and related capex incurred prior to business separation
Revenue
Revenue
millions
$85
$97
$71
$50
$58
$70
$75 -
$85
$350
$375
$400
$425
$450
$475
$0
$25
$50
$75
$100
2007
2008
2009
2010
2011
2012
2013 G
Maintenance, IT & Other
Capacity
Growth
EV-DO
$59
$60
$85
$92
$85
$63
$0
$25
$50
$75
$100
2007
2008
2009
2010
2011
2012 |
  Capitalization Overview
($ in millions)
March 31, 2013
Cash
$99.5
Total Debt
$493.4
Net Debt
$393.9
LTM Adjusted EBITDA
$136.3
Secured Term Loan
$492.5
Net Debt Leverage
2.9x
NASDAQ: NTLS
29 |
 Guidance (as of May 7, 2013)
NASDAQ: NTLS
30
FY
2013
Adjusted
EBITDA
of
$135
million
-
$145
million
FY 2013 CapEx of $75 million -
$85 million
2013 net adds expected to exceed 2012 net adds |
 Senior Executives—Wireless Veterans
JIM HYDE
CEO, President and Director
STEB CHANDOR
EVP, CFO and Treasurer
CONRAD HUNTER
EVP, COO
Former CEO, T-Mobile UK
Former T-Mobile USA /
Western Wireless /
VoiceStream Sr. Exec
18 years industry experience
Former CFO, iPCS Wireless
Former CFO, Metro One
Telecommunications
17 years industry experience
Former COO, iPCS Wireless
Former VP of Midwest
Operations, U.S. Cellular
Corporation
33 years industry experience
31
NASDAQ: NTLS |
 Summary
Leading “pure-play”
Mid-Atlantic regional wireless company
32
Strategic asset set
Strong free cash flow
Broad geographic and network technology footprint
Experienced management team
NASDAQ: NTLS
Competitive and diversified business model |
 Appendix |
 34
NASDAQ: NTLS
NTELOS Holdings Corp.
Reconciliation of Net Income Attributable to NTELOS Holdings Corp. to Adjusted EBITDA
Year Ended:
(In thousands)
2012
2011
2010
2009
2008
2007
Net Income Attributable to NTELOS Holdings Corp.
18,387
$
(23,715)
$
44,808
$
63,285
$
44,829
$
32,453
$
Net income attributable to noncontrolling interests
1,941
(1,769)
(1,417)
(851)
Net Income
20,328
(21,946)
46,225
64,136
44,829
32,453
Discontinued operations, net
-
(45,386)
16,882
18,054
16,002
12,638
Income from continuing operations
20,328
23,440
29,343
46,082
28,827
19,815
Interest expense
22,944
23,380
24,728
15,922
17,024
24,520
Loss (gain) on derivatives
-
264
147
(2,100)
9,531
3,527
Income taxes
12,676
16,363
20,251
26,526
20,787
17,161
Corporate financing fees
-
1,567
Other expense (income), net
7,194
1,240
413
971
1,402
2,953
Operating income
63,142
66,254
74,882
87,401
77,571
67,976
Depreciation and amortization
63,258
63,083
58,016
63,015
75,982
70,102
Accretion of asset retirement obligations
637
658
770
695
914
746
Equity-based compensation
6,029
6,072
5,270
3,227
2,729
4,328
Acquisition related charges
-
-
2,815
1,477
570
Business separation charges ¹
1,660
6,997
352
Adjusted EBITDA
134,726
$
143,064
$
142,105
$
155,815
$
157,196
$
143,721
$
|
 35
NASDAQ: NTLS
NTELOS Holdings Corp.
Reconciliation of Net Income Attributable to NTELOS Holdings Corp. to Adjusted EBITDA
(In thousands)
1Q 2013
4Q12
3Q12
2Q12
1Q12
Net Income Attributable to NTELOS Holdings Corp.
5,493
$
321
$
4,608
$
5,606
$
7,852
$
Net income attributable to noncontrolling interests
529
443
488
881
129
Net Income
6,022
764
5,096
6,487
7,981
Discontinued operations, net
-
-
-
-
-
Income from continuing operations
6,022
764
5,096
6,487
7,981
Interest expense
7,361
6,651
5,432
5,433
5,428
Loss (gain) on derivatives
-
-
-
-
5
Income taxes
3,744
(454)
3,141
4,609
5,380
Other expense (income), net
369
7,038
50
44
57
Operating income
17,496
13,999
13,719
16,573
18,851
Depreciation and amortization
18,456
17,440
15,810
15,101
14,907
Accretion of asset retirement obligations
143
174
163
151
149
Equity-based compensation
1,321
1,346
1,478
1,536
1,669
Business separation charges ¹
-
56
684
635
285
Adjusted EBITDA
37,416
$
33,015
$
31,854
$
33,996
$
35,861
$
1
Charges for legal and consulting services costs in connection with the separation of the
wireless and wireline operations. |
 36
NASDAQ: NTLS
NTELOS Holdings Corp.
ARPU Reconciliation
Average Monthly Revenue per User (ARPU)
1
1Q13
4Q12
3Q12
2Q12
1Q12
FY 2012
FY 2011
(In thousands, except for subscribers and ARPU)
Operating Revenues
119,345
$
117,398
$
114,466
$
111,585
$
110,540
$
453,989
$
422,629
$
Less: Equipment revenue from sales to new customers
(3,521)
(3,808)
(3,333)
(4,026)
(3,874)
(15,041)
(9,091)
Less: Equipment revenue from sales to existing customers
(3,117)
(3,315)
(3,416)
(3,903)
(4,403)
(15,037)
(17,793)
Less: Wholesale, other and adjustments
(40,918)
(41,488)
(42,380)
(41,061)
(40,836)
(165,765)
(143,477)
Gross subscriber revenue
71,789
68,787
65,337
62,595
61,427
258,146
252,268
Less: prepay subscriber revenue
(15,205)
(14,823)
(14,103)
(14,001)
(13,403)
(56,330)
(48,758)
Less: adjustments to prepay subscriber revenue
(479)
(237)
(434)
(382)
(653)
(1,706)
(1,175)
Gross postpay subscriber revenue
56,105
$
53,727
$
50,800
$
48,212
$
43,371
$
200,110
$
202,335
$
Prepay subscriber revenue
15,205
14,823
14,103
14,001
13,403
56,330
48,758
Plus: adjustments to prepay subscriber revenue
479
237
434
382
653
1,706
1,175
Gross prepay subscriber revenue
15,684
$
15,060
$
14,537
$
14,383
$
14,056
$
58,036
$
49,933
$
Average number of subscribers
444,244
434,457
427,610
422,247
417,195
425,377
422,256
Total ARPU
53.87
$
52.78
$
50.93
$
49.41
$
49.08
$
50.57
$
49.79
$
Average number of postpay subscribers
298,414
292,668
287,165
284,834
289,047
288,428
298,992
Postpay ARPU
62.67
$
61.19
$
58.97
$
56.42
$
54.63
$
57.82
$
56.39
$
Average number of prepay subscribers
145,831
141,789
140,446
137,413
128,148
136,949
123,264
Prepay ARPU
35.85
$
35.41
$
34.50
$
34.89
$
36.56
$
35.31
$
33.76
$
Gross subscriber revenue
71,789
68,787
65,337
62,595
61,427
258,146
252,268
Less: voice and other feature revenue
(42,658)
(41,379)
(39,366)
(37,708)
(37,579)
(156,032)
(171,882)
Data revenue
29,131
$
27,408
$
25,971
$
24,887
$
23,848
$
102,114
$
80,386
$
Average number of subscribers
444,244
434,457
427,610
422,247
417,195
425,377
422,256
Total Data ARPU
21.86
$
21.03
$
20.25
$
19.65
$
19.05
$
20.00
$
15.86
$
Gross postpay subscriber revenue
56,105
53,727
50,800
48,212
47,371
200,110
202,335
Less: postpay voice and other feature revenue
(35,952)
(34,651)
(33,028)
(31,490)
(31,432)
(130,601)
(144,114)
Postpay data revenue
20,153
$
19,076
$
17,772
$
16,722
$
15,939
$
69,509
$
58,221
$
Gross prepay subscriber revenue
15,684
15,060
14,537
14,383
14,056
58,036
49,933
Less: prepay voice and other feature revenue
(6,706)
(6,728)
(6,338)
(6,218)
(6,147)
(25,431)
(27,768)
Prepay data revenue
8,978
$
8,332
$
8,199
$
8,165
$
7,909
$
32,605
$
22,165
$
Average number of postpay subscribers
298,414
292,668
287,165
284,834
289,047
288,428
298,992
Postpay data ARPU
22.51
$
21.73
$
20.63
$
19.57
$
18.38
$
20.08
$
16.23
$
Average number of prepay subscribers
145,831
141,789
140,445
137,413
128,148
136,949
123,264
Prepay data ARPU
20.52
$
19.59
$
19.46
$
19.81
$
20.57
$
19.84
$
14.99
$
Average monthly revenue per user (ARPU) is computed by dividing service revenues per period by the
average number of subscribers during that period. ARPU as defined may not be similar to ARPU measures of
other companies, is not a measurement under GAAP and should be considered in addition to, but not as a
substitute for, the information contained in the Company’s consolidated statements of operations. The
Company closely monitors the effects of new rate plans and service offerings on APRU in order to
determine their effectiveness. ARPU provides management useful information concerning the appeal of NTELOS rate
plans and service offerings and the Company’s performance in attracting and retaining
high-value customers. 1
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