Exhibit 99.1
Centennial
Communications Announces Fiscal Fourth-Quarter and Full-Year
Results
Fiscal
Fourth-Quarter Net Income of $0.33 per Diluted Share, Compared to Net Income of
$0.10 per Diluted Share in the Prior-Year Quarter
Fiscal
Fourth-Quarter Consolidated Adjusted Operating Income of $126.2 Million, up 20
Percent Year-Over-Year From $105.6 Million
Fiscal
Fourth-Quarter Consolidated Revenue of $261.8 Million, up 1 Percent
Year-Over-Year From $258.7 Million
WALL,
NJ--(Marketwire - July 30, 2009) - Centennial Communications Corp. (NASDAQ:
CYCL
)
("Centennial") today reported net income of $37.1 million, or $0.33 per diluted
share, for the fiscal fourth quarter of 2009 as compared to net income of $12.9
million, or $0.10 per diluted share, in the fiscal fourth quarter of 2008.
Consolidated adjusted operating income (AOI)(1) was $126.2 million for the
fiscal fourth quarter, as compared to $105.6 million for the adjusted prior-year
quarter. Fiscal fourth quarter AOI benefited from $7.8 million of prior period
items largely related to Universal Service Fund (USF) support and an
intercarrier compensation settlement. For comparison, certain of the Company's
fiscal 2008 financial results have been adjusted to reflect the discontinuation
of its loaned phones program in Puerto Rico as of June 1, 2008(2).
Centennial
reported fiscal fourth-quarter consolidated revenue of $261.8 million, which
included $144.2 million from U.S. wireless and $117.5 million from Puerto Rico
operations. Consolidated revenue grew 1 percent versus the fiscal fourth quarter
of 2008. The Company ended the quarter with 1,078,200 total wireless
subscribers, which compares to 1,092,600 for the year-ago quarter and 1,094,900
for the previous quarter ended February 28, 2009. The Company reported 694,900
total access lines and equivalents at the end of the fiscal fourth quarter,
which compares to 582,200 for the year-ago quarter.
AT&T
TRANSACTION
On
November 7, 2008, we entered into an Agreement and Plan of Merger with AT&T
Inc. ("AT&T") providing for the acquisition of Centennial by AT&T (the
"AT&T Transaction"). Under the terms of the AT&T Transaction, our
stockholders will receive $8.50 per share in cash. The AT&T Transaction was
approved by our stockholders in February 2009. Completion of the AT&T
Transaction is not subject to a financing condition but remains subject to (i)
approval by the Federal Communications Commission and (ii) other customary
conditions. The applicable waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended, has expired; however, the parties are
still discussing the transaction with the Department of Justice. The parties
anticipate that the AT&T Transaction will be completed during the third
quarter of calendar year 2009, assuming timely satisfaction or waiver of all
remaining closing conditions.
FULL-YEAR
FISCAL 2009 RESULTS
For the
full year, the Company reported net income of $67.3 million, or $0.60 per
diluted share, as compared to net income of $25.1 million, or $0.22 per diluted
share, for fiscal year 2008. Centennial reported full-year 2009 consolidated
revenue of $1.1 billion, which included $583.4 million from U.S. wireless and
$468.2 million from Puerto Rico operations. The Company's fiscal 2009
consolidated AOI was $425.8 million, an increase of 10 percent versus the
adjusted 2008 fiscal year. The Company ended fiscal 2009 with net debt of $1.8
billion, a decrease of $101.8 million from the end of fiscal 2008.
FOURTH-QUARTER
SEGMENT HIGHLIGHTS
U.S.
Wireless Operations
-- Revenue
was $144.2 million, a 1 percent increase from last year's
fourth
quarter. Retail revenue (total revenue excluding roaming
revenue)
was
unchanged from the year-ago period. Roaming revenue increased
16
percent
from the year-ago quarter primarily because of an increase in data
roaming
revenue, partially offset by a decline in voice roaming revenue due
to
a 14 percent decrease in the average voice roaming rate per minute.
-- Average
revenue per user (ARPU) was $73 during the fiscal fourth
quarter,
a 1 percent year-over-year increase. ARPU included
approximately
$8.21
of data revenue per user, which grew 31 percent from the year-ago
period.
-- AOI
was $67.6 million, a 17 percent year-over-year increase,
representing
an AOI margin of 47 percent. AOI benefited from solid
growth
in
roaming revenue and a decrease in handset expenditures.
-- U.S.
wireless ended the quarter with 652,000 total subscribers, which
compares
to 665,300 for the prior-year quarter and to 664,200 for the
previous
quarter ended February 28, 2009. Postpaid subscribers decreased
11,300
from the fiscal third quarter of 2009 due to a 35 percent decrease
in
gross additions.
-- Capital
expenditures were $29.2 million for the fiscal fourth quarter.
Puerto
Rico Wireless Operations
-- Revenue
was $84.0 million, an increase of 1 percent from the prior-
year
fourth quarter, primarily driven by increased USF support and
Instant
Internet
broadband data revenue, largely offset by a continued decline in
traditional
voice revenue. $2.6 million of USF support related to
prior
periods.
-- ARPU
was $65, which was unchanged compared to the year-ago period.
ARPU
included approximately $10.94 of data revenue per user, which
increased
52 percent from the year-ago period.
-- AOI
totaled $34.2 million, an adjusted 23 percent year-over-year
increase,
representing an AOI margin of 41 percent. AOI benefited
from
increased
USF support and a decrease in handset expenditures.
-- Puerto
Rico wireless ended the quarter with 426,200 total subscribers,
which
compares to 427,300 for the prior-year quarter and to 430,700 for
the
previous
quarter ended February 28, 2009. Postpaid subscribers decreased
4,300
from the fiscal third quarter of 2009 due to a continued decline in
traditional
voice customers, partially offset by an increase in Instant
Internet
broadband data customers. Postpaid churn rose to 2.9
percent.
-- Capital
expenditures were $6.8 million for the fiscal fourth quarter.
Puerto
Rico Broadband Operations
-- Revenue
was $36.3 million, a 1 percent year-over-year increase.
Revenue
increased primarily due to solid access line growth and increased
USF
support, partially offset by a decrease in recurring revenue per
line.
-- AOI
was $24.5 million, a 22 percent increase from the year-ago period,
representing
an AOI margin of 67 percent. AOI rose largely due to a
$2.2
million
intercarrier compensation settlement related to prior periods.
-- Switched
access lines totaled approximately 104,200 at the end of the
fiscal
fourth quarter, an increase of 9,000 lines, or 9 percent from the
prior-year
quarter. Dedicated access line equivalents were 590,700 at the
end of
the fiscal fourth quarter, a 21 percent year-over-year increase.
-- Capital
expenditures were $10.9 million for the fiscal fourth quarter.
DEFINITIONS
AND RECONCILIATION
(1)
Adjusted operating income is defined as net income before loss from discontinued
operations, minority interest in income of subsidiaries, income tax expense,
loss on extinguishment of debt, interest expense, net, loss on disposition of
assets, litigation settlement expense, transaction costs, stock-based
compensation expense and depreciation and amortization. Please refer to the
schedule below for a reconciliation of adjusted operating income to consolidated
net income and the Investor Relations website at
www.ir.centennialwireless.com
for a discussion and reconciliation of this and other non-GAAP financial
measures.
Reconciliation
of adjusted operating income to consolidated net income:
|
|
|
Three Months Ended
May 31,
|
|
|
Twelve
Months Ended
May 31,
|
|
|
|
|
2009
|
|
|
2008
|
|
|
2009
|
|
|
2008
|
|
|
Adjusted
operating income
|
|
$
|
126,243
|
|
|
$
|
108,996
|
|
|
$
|
425,824
|
|
|
$
|
404,124
|
|
|
Depreciation
and amortization
|
|
|
(33,151
|
)
|
|
|
(36,846
|
)
|
|
|
(136,170
|
)
|
|
|
(139,719
|
)
|
|
Stock-based
compensation expense
|
|
|
(482
|
)
|
|
|
(3,463
|
)
|
|
|
(9,501
|
)
|
|
|
(12,011
|
)
|
|
Transaction
costs
|
|
|
(9,160
|
)
|
|
|
(2,004
|
)
|
|
|
(12,162
|
)
|
|
|
(2,004
|
)
|
|
Litigation
settlement expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,950
|
)
|
|
Loss
on disposition of assets
|
|
|
(17
|
)
|
|
|
(1,319
|
)
|
|
|
(473
|
)
|
|
|
(3,050
|
)
|
|
Operating
income
|
|
|
83,433
|
|
|
|
65,364
|
|
|
|
267,518
|
|
|
|
244,390
|
|
|
Interest
expense, net
|
|
|
(41,111
|
)
|
|
|
(46,615
|
)
|
|
|
(173,274
|
)
|
|
|
(190,209
|
)
|
|
Loss
on extinguishment of debt………………………………………………..
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(307
|
)
|
|
Income
tax expense
|
|
|
(4,890
|
)
|
|
|
(4,923
|
)
|
|
|
(25,145
|
)
|
|
|
(25,193
|
)
|
|
Minority
interest in income of subsidiaries
|
|
|
(203
|
)
|
|
|
(212
|
)
|
|
|
(784
|
)
|
|
|
(704
|
)
|
|
Income
from continuing operations
|
|
|
37,229
|
|
|
|
13,614
|
|
|
|
68,315
|
|
|
|
27,977
|
|
|
Loss
from discontinued operations
|
|
|
(94
|
)
|
|
|
(667
|
)
|
|
|
(1,020
|
)
|
|
|
(2,924
|
)
|
|
Net
income
|
|
$
|
37,135
|
|
|
$
|
12,947
|
|
|
$
|
67,295
|
|
|
$
|
25,053
|
|
(2)
Please refer to the Company's Form 10-K for the year ending May 31, 2008 and the
fiscal fourth-quarter 2008 earnings press release for information regarding the
discontinuation of the loaned phones program.
ABOUT
CENTENNIAL
Centennial
Communications (NASDAQ:
CYCL
), based in Wall,
NJ, is a leading provider of regional wireless and integrated communications
services in the United States and Puerto Rico with approximately 1.1 million
wireless subscribers and 694,900 access lines and equivalents. The U.S. business
owns and operates wireless networks in the Midwest and Southeast covering parts
of six states. Centennial's Puerto Rico business owns and operates wireless
networks in Puerto Rico and the U.S. Virgin Islands and provides
facilities-based integrated voice, data and Internet solutions. Welsh, Carson,
Anderson & Stowe is a significant shareholder of Centennial. For more
information regarding Centennial, please visit our websites
http://www.centennialwireless.com/
and
http://www.centennialpr.com/
.
SAFE
HARBOR PROVISION
Cautionary
statement for purposes of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995: Information in this release that involves
Centennial's expectations, beliefs, hopes, plans, projections, estimates,
intentions or strategies regarding the future are forward-looking statements.
Such forward-looking statements are subject to a number of risks, assumptions
and uncertainties that could cause the Company's actual results to differ
materially from those projected in such forward-looking statements. These risks,
assumptions and uncertainties include, but are not limited to: the occurrence of
any event, change or other circumstance that could give rise to the termination
of our agreement to be acquired by AT&T (the "AT&T Transaction") or
failure of the AT&T Transaction to close for any other reason; the outcome
of any legal proceeding that has been or may be instituted against Centennial
and others relating to the AT&T Transaction; the inability to complete the
AT&T Transaction due to the failure to satisfy conditions to consummate the
AT&T Transaction; risks that the AT&T Transaction disrupts current plans
and operations and the potential difficulties in employee retention as a result
of the AT&T Transaction; business uncertainty and contractual restrictions
during the pendency of the AT&T Transaction, which may adversely affect our
relationships with our employees, customers and suppliers; the diversion of
management's attention to the AT&T Transaction from ongoing business
concerns; the effect of the announcement and pendency of the AT&T
Transaction on our customer and supplier relationships, operating results and
business generally; the amount of the costs, fees, expenses and charges related
to the AT&T Transaction; the timing of the completion of the AT&T
Transaction or the impact of the AT&T Transaction on our capital resources,
cash requirements, profitability, management resources and liquidity; the
effects of the current recession in the United States and general downturn in
the economy, including the effects on unemployment, consumer confidence,
consumer debt levels, consumer spending and other macroeconomic conditions that
could impact the demand for the products and services we provide and our
customers' ability to pay for them; our need to refinance or amend existing
indebtedness on or prior to its stated maturity and the difficulties and
illiquidity experienced by the debt/capital markets; the effects of vigorous
competition in our markets, which may make it difficult for us to attract and
retain customers and to grow our customer base and revenue and which may
increase churn, which could reduce our revenue and increase our costs; the fact
that many of our competitors are larger than we are, have greater financial
resources than we do, are less leveraged than we are, have more extensive
coverage areas than we do, and may offer less expensive and more technologically
advanced products and services than we do; our ability to gain access to the
latest technology handsets in a timeframe and at a cost similar to our
competitors; our ability to acquire, and the cost of acquiring, additional
spectrum in our markets to support growth and deployment of advanced
technologies, including 3G and 4G services; our ability to successfully deploy
and deliver wireless data services to our customers, including next generation
3G and 4G technology; the effect of changes in the level of support provided to
us by the Universal Service Fund, or USF; our ability to grow our subscriber
base at a reasonable cost to acquire; our dependence on roaming agreements for a
significant portion of our wireless revenue and the expected decline in roaming
revenue over the long term; our ability to successfully integrate any acquired
markets or businesses; the effects of higher than anticipated handset subsidy
costs; our dependence on roaming agreements for our ability to offer our
wireless customers competitively priced regional and nationwide rate plans that
include areas for which we do not own wireless licenses; the effects of adding
new subscribers with lower credit ratings; our substantial debt obligations,
including restrictive covenants, which place limitations on how we conduct
business; market prices for the products and services we offer may decline in
the future; changes and developments in technology, including our ability to
upgrade our networks to remain competitive and our ability to anticipate and
react to frequent and significant technological changes which may render certain
technologies used by us obsolete; the effects of a decline in the market for our
Code Division Multiple Access -based technology; the effects of consolidation in
the telecommunications industry; general economic, business, political and
social conditions in the areas in which we operate, including the effects of
downturns in the economy, world events, terrorism, hurricanes, tornadoes, wind
storms and other natural disasters; our ability to generate cash and the
availability and cost of additional capital to fund our operations and our
significant planned capital expenditures; the effects of governmental regulation
of the telecommunications industry; our ability to attract and retain qualified
personnel; the effects of network disruptions and system failures; our ability
to manage, implement and monitor billing and operational support systems; the
results of litigation filed or which may be filed against us or our vendors,
including litigation relating to wireless billing, using wireless telephones
while operating an automobile and litigation relating to infringement of
patents; the effects of scientific reports that may demonstrate possible health
effects of radio frequency transmission from use of wireless telephones; and the
influence on us by our significant stockholder and anti-takeover provisions and
other risks referenced from time to time in the Company's filings with the
Securities and Exchange Commission. All forward-looking statements included in
this release are based upon information available to Centennial as of the date
of the release, and we assume no obligation to update or revise any such
forward-looking statements.
|
CENTENNIAL
COMMUNICATIONS CORP.
|
|
FINANCIAL
DATA AND OPERATING STATISTICS
|
|
05/31/2009
|
|
($000's,
except per subscriber data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Twelve
Months Ended
|
|
|
|
|
May-09
|
|
|
May-08
|
|
|
May-09
|
|
|
May-08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Wireless Subscribers
|
|
|
1,078,200
|
|
|
|
1,092,600
|
|
|
|
1,078,200
|
|
|
|
1,092,600
|
|
|
Net
Gain - Total Subscribers
|
|
|
(16,700
|
)
|
|
|
6,300
|
|
|
|
(14,400
|
)
|
|
|
43,000
|
|
|
Revenue
per Average Wireless Customer (1)
|
|
$
|
70
|
|
|
$
|
69
|
|
|
$
|
70
|
|
|
$
|
69
|
|
|
Retail
Penetration (4)
|
|
|
8.3
|
%
|
|
|
8.4
|
%
|
|
|
8.3
|
%
|
|
|
8.4
|
%
|
|
Prepaid
& Postpaid Churn - Wireless (5)
|
|
|
2.5
|
%
|
|
|
2.3
|
%
|
|
|
2.6
|
%
|
|
|
2.3
|
%
|
|
Monthly
MOU's per Wireless Voice Customer
|
|
|
1,329
|
|
|
|
1,390
|
|
|
|
1,385
|
|
|
|
1,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. WIRELESS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
Wireless Subscribers
|
|
|
638,200
|
|
|
|
646,400
|
|
|
|
638,200
|
|
|
|
646,400
|
|
|
Prepaid
Wireless Subscribers
|
|
|
13,800
|
|
|
|
18,900
|
|
|
|
13,800
|
|
|
|
18,900
|
|
|
Total
Wireless Subscribers
|
|
|
652,000
|
|
|
|
665,300
|
|
|
|
652,000
|
|
|
|
665,300
|
|
|
Total
Wireless Gross Adds
|
|
|
30,500
|
|
|
|
44,500
|
|
|
|
178,300
|
|
|
|
199,300
|
|
|
Net
Gain - Wireless Subscribers
|
|
|
(12,200
|
)
|
|
|
2,600
|
|
|
|
(13,300
|
)
|
|
|
22,200
|
|
|
GSM
as a % of Retail Subscribers
|
|
|
100.0
|
%
|
|
|
98.7
|
%
|
|
|
100.0
|
%
|
|
|
98.7
|
%
|
|
Revenue
per Average Wireless Customer (1)
|
|
$
|
73
|
|
|
$
|
72
|
|
|
$
|
74
|
|
|
$
|
70
|
|
|
Retail
Revenue per Average Wireless Customer (2)
|
|
$
|
65
|
|
|
$
|
65
|
|
|
$
|
66
|
|
|
$
|
63
|
|
|
Data
Revenue per Average Wireless Customer (3)
|
|
$
|
8.21
|
|
|
$
|
6.26
|
|
|
$
|
7.61
|
|
|
$
|
5.18
|
|
|
Retail
Revenue
|
|
$
|
128,459
|
|
|
$
|
128,883
|
|
|
$
|
523,723
|
|
|
$
|
492,385
|
|
|
Roaming
Revenue
|
|
$
|
15,786
|
|
|
$
|
13,588
|
|
|
$
|
59,631
|
|
|
$
|
58,299
|
|
|
Penetration
- Wireless (4)
|
|
|
7.3
|
%
|
|
|
7.4
|
%
|
|
|
7.3
|
%
|
|
|
7.4
|
%
|
|
Postpaid
Churn - Wireless (5)
|
|
|
2.1
|
%
|
|
|
1.8
|
%
|
|
|
2.3
|
%
|
|
|
2.0
|
%
|
|
Prepaid
& Postpaid Churn - Wireless (5)
|
|
|
2.2
|
%
|
|
|
2.1
|
%
|
|
|
2.4
|
%
|
|
|
2.3
|
%
|
|
Monthly
MOU's per Wireless Voice Customer
|
|
|
1,046
|
|
|
|
1,100
|
|
|
|
1,091
|
|
|
|
1,069
|
|
|
Cost
to Acquire (6)
|
|
$
|
304
|
|
|
$
|
273
|
|
|
$
|
329
|
|
|
$
|
305
|
|
|
Capital
Expenditures
|
|
$
|
29,175
|
|
|
$
|
26,961
|
|
|
$
|
58,551
|
|
|
$
|
61,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PUERTO RICO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
Wireless Subscribers
|
|
|
422,700
|
|
|
|
423,600
|
|
|
|
422,700
|
|
|
|
423,600
|
|
|
Prepaid
Wireless Subscribers
|
|
|
3,500
|
|
|
|
3,700
|
|
|
|
3,500
|
|
|
|
3,700
|
|
|
Total
Wireless Subscribers
|
|
|
426,200
|
|
|
|
427,300
|
|
|
|
426,200
|
|
|
|
427,300
|
|
|
Total
Wireless Gross Adds
|
|
|
33,200
|
|
|
|
35,800
|
|
|
|
143,400
|
|
|
|
144,100
|
|
|
Net
Gain - Wireless Subscribers
|
|
|
(4,500
|
)
|
|
|
3,700
|
|
|
|
(1,100
|
)
|
|
|
20,800
|
|
|
Revenue
per Average Wireless Customer (1)
|
|
$
|
65
|
|
|
$
|
65
|
|
|
$
|
66
|
|
|
$
|
66
|
|
|
Data
Revenue per Average Wireless Customer (3)
|
|
$
|
10.94
|
|
|
$
|
7.20
|
|
|
$
|
9.81
|
|
|
$
|
6.70
|
|
|
Penetration
- Wireless (4)
|
|
|
10.6
|
%
|
|
|
10.7
|
%
|
|
|
10.6
|
%
|
|
|
10.7
|
%
|
|
Postpaid
Churn - Wireless (5)
|
|
|
2.9
|
%
|
|
|
2.4
|
%
|
|
|
2.8
|
%
|
|
|
2.4
|
%
|
|
Prepaid
& Postpaid Churn - Wireless (5)
|
|
|
2.9
|
%
|
|
|
2.5
|
%
|
|
|
2.8
|
%
|
|
|
2.5
|
%
|
|
Monthly
MOU's per Wireless Voice Customer
|
|
|
1,826
|
|
|
|
1,873
|
|
|
|
1,886
|
|
|
|
1,847
|
|
|
Fiber
Route Miles
|
|
|
1,400
|
|
|
|
1,347
|
|
|
|
1,400
|
|
|
|
1,347
|
|
|
Switched
Access Lines
|
|
|
104,200
|
|
|
|
95,200
|
|
|
|
104,200
|
|
|
|
95,200
|
|
|
Dedicated
Access Line Equivalents
|
|
|
590,700
|
|
|
|
487,000
|
|
|
|
590,700
|
|
|
|
487,000
|
|
|
On-Net
Buildings
|
|
|
2,485
|
|
|
|
2,220
|
|
|
|
2,485
|
|
|
|
2,220
|
|
|
Capital
Expenditures - Wireless
|
|
$
|
6,817
|
|
|
$
|
12,320
|
|
|
$
|
31,050
|
|
|
$
|
39,342
|
|
|
Capital
Expenditures - Broadband
|
|
$
|
10,911
|
|
|
$
|
18,631
|
|
|
$
|
31,615
|
|
|
$
|
32,230
|
|
|
Capital
Expenditures - Total Puerto Rico
|
|
$
|
17,728
|
|
|
$
|
30,951
|
|
|
$
|
62,665
|
|
|
$
|
71,572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Wireless
|
|
$
|
144,245
|
|
|
$
|
142,471
|
|
|
$
|
583,354
|
|
|
$
|
550,684
|
|
|
Puerto
Rico - Wireless
|
|
$
|
83,955
|
|
|
$
|
83,423
|
|
|
$
|
337,681
|
|
|
$
|
328,241
|
|
|
Puerto
Rico - Broadband
|
|
$
|
36,323
|
|
|
$
|
35,948
|
|
|
$
|
142,203
|
|
|
$
|
134,877
|
|
|
Puerto
Rico - Intercompany
|
|
$
|
(2,767
|
)
|
|
$
|
(3,158
|
)
|
|
$
|
(11,648
|
)
|
|
$
|
(12,427
|
)
|
|
Total
Puerto Rico
|
|
$
|
117,511
|
|
|
$
|
116,213
|
|
|
$
|
468,236
|
|
|
$
|
450,691
|
|
|
Consolidated
|
|
$
|
261,756
|
|
|
$
|
258,684
|
|
|
$
|
1,051,590
|
|
|
$
|
1,001,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Wireless
|
|
$
|
67,593
|
|
|
$
|
57,760
|
|
|
$
|
235,809
|
|
|
$
|
212,768
|
|
|
Puerto
Rico - Wireless
|
|
$
|
34,198
|
|
|
$
|
31,219
|
|
|
$
|
107,774
|
|
|
$
|
118,065
|
|
|
Puerto
Rico - Broadband
|
|
$
|
24,452
|
|
|
$
|
20,017
|
|
|
$
|
82,241
|
|
|
$
|
73,291
|
|
|
Total
Puerto Rico
|
|
$
|
58,650
|
|
|
$
|
51,236
|
|
|
$
|
190,015
|
|
|
$
|
191,356
|
|
|
Consolidated
|
|
$
|
126,243
|
|
|
$
|
108,996
|
|
|
$
|
425,824
|
|
|
$
|
404,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET DEBT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Debt Less Cash and Cash Equivalents
|
|
$
|
1,803,700
|
|
|
$
|
1,905,500
|
|
|
$
|
1,803,700
|
|
|
$
|
1,905,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Revenue
per Average Wireless Customer is determined for each period by dividing
total monthly revenue per wireless subscriber including
|
|
|
roaming revenue by the average customers for such period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Retail
Revenue per Average Wireless Customer is determined for each period by
dividing retail revenue (total revenue excluding roaming
|
|
|
revenue) by the average customers for such period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Data
Revenue per Average Wireless Customer is determined for each period by
dividing data revenue by the average customers for such
period.
|
|
|
(4) The
penetration rate equals the percentage of total population in our service
areas who are subscribers to our wireless service as of
period-end.
|
|
|
(5) Churn
is calculated by dividing the aggregate number of subscribers who cancel
service during each month in a period by the total number
|
|
|
of subscribers as of the beginning of the month. Churn is stated as
the average monthly churn rate for the period.
|
|
|
(6) Cost
to Acquire a new customer is calculated by dividing the sum of the cost of
phones and marketing expenses less the related
|
|
|
equipment sales by the gross activations for the period. Cost to
acquire excludes costs relating to phones used for customer
retention.
|
|
|
(7) Adjusted
operating income is defined as net income before loss from discontinued
operations, minority interest in income of subsidiaries, income
tax
|
|
|
expense, loss on extinguishment of debt, interest expense, net, loss on
disposition of assets, litigation settlement expense, transaction
costs,
|
|
|
stock-based compensation expense and depreciation and
amortization.
|
|
CENTENNIAL
COMMUNICATIONS CORP. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
(Amounts
in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Twelve
Months Ended
|
|
|
|
|
May
31,
|
|
|
May
31,
|
|
|
May
31,
|
|
|
May
31,
|
|
|
|
|
2009
|
|
|
2008
|
|
|
2009
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
|
248,070
|
|
|
$
|
243,581
|
|
|
$
|
991,739
|
|
|
$
|
942,038
|
|
|
Equipment
sales
|
|
|
13,686
|
|
|
|
15,103
|
|
|
|
59,851
|
|
|
|
59,337
|
|
|
|
|
|
261,756
|
|
|
|
258,684
|
|
|
|
1,051,590
|
|
|
|
1,001,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS
AND EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of services (exclusive of depreciation and amortization shown
below)
|
|
|
45,127
|
|
|
|
46,206
|
|
|
|
193,427
|
|
|
|
182,181
|
|
|
Cost
of equipment sold
|
|
|
29,314
|
|
|
|
34,074
|
|
|
|
150,043
|
|
|
|
129,905
|
|
|
Sales
and marketing
|
|
|
18,937
|
|
|
|
24,025
|
|
|
|
97,635
|
|
|
|
101,842
|
|
|
General
and administrative
|
|
|
51,777
|
|
|
|
50,850
|
|
|
|
206,324
|
|
|
|
200,288
|
|
|
Depreciation
and amortization
|
|
|
33,151
|
|
|
|
36,846
|
|
|
|
136,170
|
|
|
|
139,719
|
|
|
Loss
on disposition of assets
|
|
|
17
|
|
|
|
1,319
|
|
|
|
473
|
|
|
|
3,050
|
|
|
|
|
|
178,323
|
|
|
|
193,320
|
|
|
|
784,072
|
|
|
|
756,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
83,433
|
|
|
|
65,364
|
|
|
|
267,518
|
|
|
|
244,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE, NET
|
|
|
(41,111
|
)
|
|
|
(46,615
|
)
|
|
|
(173,274
|
)
|
|
|
(190,209
|
)
|
|
LOSS
ON EXTINGUISHMENT OF DEBT
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(307
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
FROM CONTINUING OPERATIONS BEFORE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
TAX EXPENSE AND MINORITY INTEREST
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IN
INCOME OF SUBSIDIARIES
|
|
|
42,322
|
|
|
|
18,749
|
|
|
|
94,244
|
|
|
|
53,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
TAX EXPENSE
|
|
|
(4,890
|
)
|
|
|
(4,923
|
)
|
|
|
(25,145
|
)
|
|
|
(25,193
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
FROM CONTINUING OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEFORE
MINORITY INTEREST IN INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OF
SUBSIDIARIES
|
|
|
37,432
|
|
|
|
13,826
|
|
|
|
69,099
|
|
|
|
28,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MINORITY
INTEREST IN INCOME OF SUBSIDIARIES
|
|
|
(203
|
)
|
|
|
(212
|
)
|
|
|
(784
|
)
|
|
|
(704
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
FROM CONTINUING OPERATIONS
|
|
|
37,229
|
|
|
|
13,614
|
|
|
|
68,315
|
|
|
|
27,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
LOSS FROM DISCONTINUED OPERATIONS
|
|
|
(94
|
)
|
|
|
(667
|
)
|
|
|
(1,020
|
)
|
|
|
(2,924
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$
|
37,135
|
|
|
$
|
12,947
|
|
|
$
|
67,295
|
|
|
$
|
25,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSS) PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
PER SHARE FROM CONTINUING OPERATIONS
|
|
$
|
0.34
|
|
|
$
|
0.13
|
|
|
$
|
0.62
|
|
|
$
|
0.26
|
|
|
LOSS PER SHARE FROM DISCONTINUED OPERATIONS
|
|
$
|
(0.00
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.03
|
)
|
|
NET INCOME PER SHARE
|
|
$
|
0.34
|
|
|
$
|
0.11
|
|
|
$
|
0.61
|
|
|
$
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE FROM CONTINUING OPERATIONS
|
|
$
|
0.33
|
|
|
$
|
0.12
|
|
|
$
|
0.61
|
|
|
$
|
0.25
|
|
|
LOSS PER SHARE FROM DISCONTINUED OPERATIONS
|
|
$
|
(0.00
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.03
|
)
|
|
NET INCOME PER SHARE
|
|
$
|
0.33
|
|
|
$
|
0.10
|
|
|
$
|
0.60
|
|
|
$
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE
SHARES OUTSTANDING DURING THE PERIOD:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
|
110,556
|
|
|
|
107,802
|
|
|
|
109,055
|
|
|
|
107,544
|
|
|
DILUTED
|
|
|
111,692
|
|
|
|
109,759
|
|
|
|
110,697
|
|
|
|
110,120
|
|
For
investor and media inquiries please contact:
Steve E.
Kunszabo
Executive
Director, Investor Relations
732-556-2220