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WALL, NJ, Aug 09, 2007 (MARKET WIRE via COMTEX News Network) -- Centennial Communications Corp. (NASDAQ: CYCL)
-- Fiscal fourth-quarter income from continuing
operations of $0.05 per diluted share,
compared to income of $0.05 per diluted share
from continuing operations in the prior-year quarter
-- Fiscal fourth-quarter consolidated adjusted operating
income from continuing operations of $89.1 million, after
giving effect to a $9.0 million charge for an adjustment to
USF revenue in Puerto Rico related to prior periods
-- Fiscal fourth-quarter consolidated revenue from continuing
operations of $228.2 million, after giving effect to the USF charge
Centennial Communications Corp. (NASDAQ: CYCL) ("Centennial") today reported income from continuing operations of $5.9 million, or $0.05 per diluted share, for the fiscal fourth quarter of 2007 as compared to income from continuing operations of $5.3 million, or $0.05 per diluted share, in the fiscal fourth quarter of 2006. The fiscal fourth quarter of 2007 included $1.8 million of stock-based compensation expense due to the Company's adoption of SFAS 123R (expensing for stock options). Consolidated adjusted operating income (AOI)(1) from continuing operations for the fiscal fourth quarter was $89.1 million, as compared to $90.3 million for the prior-year quarter. Consolidated AOI for the fiscal fourth quarter included a $9.0 million charge for an adjustment to Universal Service Fund (USF) revenue in Puerto Rico related to prior periods (the "USF charge")(2). Excluding the USF charge, consolidated AOI was $98.1 million, an increase of 10 percent versus the adjusted fiscal fourth quarter of 2006. For comparison, our fiscal 2006 financial results have been adjusted to give effect to the portion of the USF charge that relates to fiscal 2006. Refer to the attached table for historical results as adjusted for the USF charge reflected in the period to which it relates.
"The momentum in our U.S. wireless retail business is very strong as we head into fiscal 2008," said Michael J. Small, Centennial's chief executive officer. "We achieved these results by building a powerful retail distribution presence, launching innovative service offerings and customer care programs and tirelessly developing our Trusted Advisor brand."
Small continued, "In Puerto Rico, our unlimited offering continues to make progress in revitalizing customer growth and improving customer retention to its best mark in two years. With all of our businesses moving in the right direction, our focus remains on growing cash flow and deleveraging to increase shareholder value."
Centennial reported fiscal fourth-quarter consolidated revenue from continuing operations of $228.2 million. Excluding the USF charge, consolidated revenue was $237.2 million, which included $130.1 million from U.S. wireless and $107.1 million from Puerto Rico operations. Consolidated revenue from continuing operations excluding the USF charge grew 8 percent versus the adjusted fiscal fourth quarter of 2006. The Company ended the quarter with 1,101,000 total wireless subscribers, which compares to 1,031,500 for the year-ago quarter and 1,085,500 for the previous quarter ended February 28, 2007. The Company reported 419,500 total access lines and equivalents at the end of the fiscal fourth quarter, which compares to 335,600 for the year-ago quarter.
FULL-YEAR FISCAL 2007 RESULTS
For the full year, the Company reported income from continuing operations of $7.0 million, or $0.06 per diluted share, as compared to income from continuing operations of $27.1 million, or $0.25 per diluted share, for fiscal year 2006. Centennial reported full-year 2007 consolidated revenue from continuing operations of $911.9 million, which included $498.6 million from U.S. wireless and $413.3 million from Puerto Rico operations. The Company's fiscal 2007 consolidated AOI from continuing operations was $354.1 million, which included an aggregate $11.0 million charge for an adjustment to USF revenue in Puerto Rico related to prior periods. Excluding the USF charge, consolidated AOI for fiscal 2007 was $365.1 million, an increase of 6 percent versus the adjusted 2006 fiscal year. The Company ended fiscal 2007 with net debt of $1.95 billion, a decrease of $89.5 million from the end of fiscal 2006.
OTHER HIGHLIGHTS
-- The Company announced that it will redeem $25 million aggregate
principal amount of its $45 million outstanding 10-3/4 percent senior
subordinated notes due December 15, 2008. The redemption will occur on or
about September 7, 2007 at face value with no prepayment penalties.
FOURTH-QUARTER SEGMENT HIGHLIGHTS
U.S. Wireless Operations
-- Revenue was $130.1 million, a 12 percent increase from last year's
fourth quarter. Retail revenue (total revenue excluding roaming revenue)
increased 19 percent from the year-ago period primarily driven by an 8
percent increase in total retail subscribers, and supported by strong
equipment, feature, data and access revenue. Roaming revenue decreased 20
percent from the year-ago quarter as a result of an 11 percent decline in
total roaming traffic.
-- Average revenue per user (ARPU) was $68 during the fiscal fourth
quarter, a 5 percent year-over-year increase. ARPU included approximately
$3.52 of data revenue per user, which grew 89 percent from the year-ago
period.
-- AOI was $54.2 million, a 22 percent year-over-year increase,
representing an AOI margin of 42 percent. AOI benefited from robust growth
in retail revenue, partially offset by a decline in roaming revenue.
-- U.S. wireless ended the quarter with 694,500 total subscribers
including 51,400 wholesale subscribers. This compares to 648,000 for the
prior-year quarter including 51,100 wholesale subscribers and to 686,100
for the previous quarter ended February 28, 2007 including 51,300 wholesale
subscribers. At the end of the fiscal fourth quarter, approximately 92
percent of U.S. retail wireless subscribers were on GSM calling plans.
Postpaid subscribers increased 6,100 from the fiscal third quarter of 2007,
supported by record postpaid churn of 1.6 percent.
-- Capital expenditures were $22.2 million for the fiscal fourth quarter.
Puerto Rico Wireless Operations
-- Revenue was $70.5 million. Excluding the USF charge, revenue was
$78.3 million, an increase of 2 percent from the adjusted prior-year fourth
quarter, driven primarily by subscriber growth.
-- Excluding the USF charge, postpaid ARPU was $65, which declined from
$67 when compared to the adjusted fiscal third quarter. ARPU decreased
largely due to a decline in equipment and miscellaneous revenue, partially
offset by an increase in data revenue. ARPU included approximately $5.88
of data revenue per user, which grew 77 percent from the year-ago period.
-- AOI totaled $18.2 million. Excluding the USF charge, AOI was $26.0
million, a 7 percent adjusted year-over-year decrease, representing an AOI
margin of 33 percent. AOI was pressured by higher customer acquisition
costs related to the Company's launch of its unlimited wireless offering
and increased equipment expense related to customer acquisition and
retention efforts.
-- Puerto Rico wireless ended the quarter with 406,500 subscribers, which
compares to 383,500 for the prior-year quarter and to 399,400 for the
previous quarter ended February 28, 2007. Postpaid subscribers increased
7,900 from the fiscal third quarter of 2007, aided by a two-year low for
postpaid churn of 2.3 percent.
-- Capital expenditures were $11.4 million for the fiscal fourth quarter.
Puerto Rico Broadband Operations
-- Revenue was $30.4 million. Excluding the USF charge, revenue was
$31.6 million, a 4 percent adjusted year-over-year increase. AOI was $16.7
million. Excluding the USF charge, AOI was $18.0 million, a 7 percent
increase from the adjusted year-ago period, representing an AOI margin of
57 percent. Revenue and AOI increased primarily due to solid access line
growth.
-- Switched access lines totaled approximately 76,300 at the end of the
fiscal fourth quarter, an increase of 6,500 lines, or 9 percent from the
prior-year quarter. Dedicated access line equivalents were 343,200 at the
end of the fiscal fourth quarter, a 29 percent year-over-year increase.
-- Capital expenditures were $7.0 million for the fiscal fourth quarter.
FISCAL 2008 OUTLOOK
-- The Company expects consolidated AOI from continuing operations
between $385 million and $405 million for fiscal 2008, excluding
approximately $10.3 million of projected stock-based compensation expense
based on stock options outstanding as of May 31, 2007. Consolidated AOI
from continuing operations for fiscal year 2007 was $365.1 million,
excluding an aggregate $11.0 million USF charge related to prior periods.
Centennial's fiscal 2008 AOI outlook reflects the Company's best estimate
of Puerto Rico USF revenue in consideration of recent adjustments. The
Company has not included a reconciliation of projected AOI because
projections for some components of this reconciliation are not possible to
forecast at this time.
-- The Company expects U.S. wireless roaming revenue to decline between
$15 million and $20 million during fiscal 2008. U.S. wireless roaming
revenue for fiscal 2007 was $65.5 million.
-- The Company expects the sum of consolidated capital expenditures and
spectrum acquisition costs will be approximately $140 million for fiscal
2008. Capital expenditures including spectrum acquisition costs for fiscal
2007 were $130.1 million.
FY2007 Adjusted
Results FY2008 Outlook
---------------------- ----------------------
Consolidated Adjusted $365.1 million $385 million -
Operating Income $405 million
(AOI)
---------------------- ----------------------
U.S. Wireless Roaming $65.5 million $15 million -
Revenue $20 million decline
---------------------- ----------------------
$130.1 million $140 million
Consolidated Capital including spectrum including spectrum
Expenditures (Capex) acquisition costs acquisition costs
---------------------- ----------------------
Note: All periods presented in the above table exclude Centennial's Dominican Republic operations due to its classification as a discontinued operation and an aggregate $11.0 million USF charge in fiscal 2007 for an adjustment to USF revenue in Puerto Rico related to prior periods.
DEFINITIONS AND RECONCILIATION
(1) Adjusted operating income is defined as net income (loss) before loss from discontinued operations, income from equity investments, minority interest in income of subsidiaries, income tax benefit (expense), loss on extinguishment of debt, gain on sale of equity investments, interest expense, net, (loss) gain on disposition of assets, strategic alternatives/recapitalization 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 (loss) 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 (loss):
Three Months Ended Twelve Months Ended
May 31, May 31,
-------------------- --------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Adjusted operating income $ 89,093 $ 90,284 $ 354,080 $ 350,978
Depreciation and amortization (32,852) (31,780) (130,389) (120,529)
Stock-based compensation
expense (1,768) -- (8,437) --
Strategic
alternatives/recapitalization
costs -- (760) (285) (19,336)
(Loss) gain on disposition of
assets (1,316) 23 (1,344) (320)
--------- --------- --------- ---------
Operating income 53,157 57,767 213,625 210,793
Interest expense, net (48,930) (50,276) (201,646) (163,680)
Gain on sale of equity
investments -- -- 4,730 652
Loss on extinguishment of debt (763) -- (990) (750)
Income tax benefit (expense) 3,263 (2,204) (8,022) (20,197)
Minority interest in income of
subsidiaries (837) (216) (1,542) (784)
Income from equity investments -- 238 804 1,083
--------- --------- --------- ---------
Income from continuing
operations 5,890 5,309 6,959 27,117
Loss from discontinued
operations (650) (1,923) (38,578) (6,873)
--------- --------- --------- ---------
Net income (loss) $ 5,240 $ 3,386 $ (31,619) $ 20,244
========= ========= ========= =========
(2) Please refer to the Company's Form 10-K for the year ending May 31, 2007 for additional information regarding the USF charge.
CONFERENCE CALL INFORMATION
As previously announced, the Company will host a conference call to discuss results at 8:30 a.m. ET on Thursday, August 9, 2007. Callers can dial (877) 502-9272 to access the call. The conference call will also be simultaneously webcast on Centennial's Investor Relations website at www.ir.centennialwireless.com. A replay of the conference call will also be available beginning Thursday, August 9 through Thursday, August 23 at both Centennial's Investor Relations website and www.streetevents.com. Callers can also dial (888) 203-1112, Access Code 6104460 to access an audio replay of the conference call.
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 over 1.1 million wireless subscribers and 419,500 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 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; 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; 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; the effect of changes in the level of support provided to us by the Universal Service Fund; the effects of a decline in the market for our CDMA-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 world events, terrorism, hurricanes, tornadoes, wind storms and other natural disasters; our access to the latest technology handsets in a timeframe and at a cost similar to our competitors; our ability to successfully deploy and deliver wireless data services to our customers, including next generation 3G and 4G technology; our ability to generate cash and the availability and cost of additional capital to fund our operations and our significant planned capital expenditures, including the need to refinance or amend existing indebtedness; 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 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; our ability to attract and retain qualified personnel; the effects of governmental regulation of the telecommunications industry; our ability to acquire, and the cost of acquiring, additional spectrum in our markets to support growth and advanced technologies; 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, including litigation relating to wireless billing, using wireless telephones while operating an automobile or possible health effects of radio frequency transmission; the relative liquidity and corresponding volatility of our common stock and our ability to raise future equity capital: 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
May 31, 2007
($000's, except per subscriber data)
Three Months Ended Twelve Months Ended
------------------------ ------------------------
May-07 May-06 May-07 May-06
----------- ----------- ----------- -----------
CONSOLIDATED
Total Wireless
Subscribers 1,101,000 1,031,500 1,101,000 1,031,500
Net Gain - Total
Subscribers 15,500 13,500 69,500 73,400
Revenue per Average
Wireless Customer (1) $ 64 $ 66 $ 66 $ 67
Retail Penetration (4) 8.3% 7.8% 8.3% 7.8%
Prepaid & Postpaid
Churn - Wireless (5) 2.0% 2.2% 2.3% 2.5%
Monthly MOU's per
Wireless Customer 1,244 1,074 1,175 1,039
U.S. WIRELESS
Postpaid Wireless
Subscribers 618,100 579,400 618,100 579,400
Prepaid Wireless
Subscribers 25,000 17,500 25,000 17,500
----------- ----------- ----------- -----------
Retail Subscribers 643,100 596,900 643,100 596,900
Wholesale Subscribers 51,400 51,100 51,400 51,100
----------- ----------- ----------- -----------
Total Wireless
Subscribers 694,500 648,000 694,500 648,000
Total Wireless Gross
Adds 43,300 43,400 200,400 211,900
Net Gain - Retail
Subscribers 8,300 9,200 46,200 50,200
Net Gain - Wholesale
Subscribers 100 200 300 11,800
----------- ----------- ----------- -----------
Net Gain - Total
Subscribers 8,400 9,400 46,500 62,000
GSM as a % of Retail
Subscribers 92.1% 74.1% 92.1% 74.1%
Revenue per Average
Wireless Customer (1) $ 68 $ 65 $ 67 $ 65
Retail Revenue per
Average Wireless
Customer (2) $ 60 $ 55 $ 58 $ 53
Data Revenue per
Average Wireless
Customer (3) $ 3.52 $ 1.86 $ 2.98 N/A
Retail Revenue $ 115,179 $ 96,953 $ 433,091 $ 364,935
Roaming Revenue $ 14,970 $ 18,770 $ 65,480 $ 79,424
Retail Penetration (4) 7.5% 7.0% 7.5% 7.0%
Postpaid Churn -
Wireless (5) 1.6% 1.7% 1.8% 1.9%
Prepaid & Postpaid
Churn - Wireless (5) 1.8% 1.9% 2.1% 2.2%
Monthly MOU's per
Wireless Customer 986 814 923 757
Cost to Acquire (6) $ 287 $ 344 $ 294 $ 326
Capital Expenditures $ 22,198 $ 25,176 $ 56,641 $ 58,375
PUERTO RICO
Postpaid Wireless
Subscribers 402,900 378,400 402,900 378,400
Prepaid Wireless
Subscribers 3,600 5,100 3,600 5,100
----------- ----------- ----------- -----------
Total Wireless
Subscribers 406,500 383,500 406,500 383,500
Total Wireless Gross
Adds 36,000 32,900 148,100 140,900
Net Gain - Wireless
Subscribers 7,100 4,100 23,000 11,400
Revenue per Average
Wireless Customer (1) $ 58 $ 68 $ 64 $ 69
Data Revenue per
Average Wireless
Customer (3) $ 5.88 $ 3.32 $ 4.79 $ 2.54
Penetration - Wireless
(4) 10.2% 9.6% 10.2% 9.6%
Postpaid Churn -
Wireless (5) 2.3% 2.4% 2.5% 2.8%
Prepaid Churn -
Wireless (5) 14.8% 16.5% 14.1% 7.3%
Prepaid & Postpaid
Churn - Wireless (5) 2.4% 2.5% 2.7% 2.9%
Monthly MOU's per
Wireless Customer 1,654 1,482 1,570 1,463
Fiber Route Miles 1,309 1,246 1,309 1,246
Switched Access Lines 76,300 69,800 76,300 69,800
Dedicated Access Line
Equivalents (7) 343,200 265,800 343,200 265,800
On-Net Buildings 1,983 1,727 1,983 1,727
Capital Expenditures -
Wireless $ 11,409 $ 12,096 $ 36,763 $ 48,711
Capital Expenditures -
Broadband $ 6,958 $ 11,817 $ 21,805 $ 27,334
----------- ----------- ----------- -----------
Capital Expenditures -
Total Puerto Rico $ 18,367 $ 23,913 $ 58,568 $ 76,045
=========== =========== =========== ===========
REVENUES
U.S. Wireless $ 130,149 $ 115,723 $ 498,571 $ 444,359
----------- ----------- ----------- -----------
Puerto Rico - Wireless $ 70,496 $ 77,701 $ 302,138 $ 314,119
Puerto Rico - Broadband $ 30,363 $ 30,481 $ 122,841 $ 116,955
Puerto Rico -
Intercompany $ (2,827) $ (2,671) $ (11,654) $ (10,352)
----------- ----------- ----------- -----------
Total Puerto Rico $ 98,032 $ 105,511 $ 413,325 $ 420,722
----------- ----------- ----------- -----------
Consolidated $ 228,181 $ 221,234 $ 911,896 $ 865,081
=========== =========== =========== ===========
ADJUSTED OPERATING
INCOME (8)
U.S. Wireless $ 54,205 $ 44,368 $ 184,658 $ 160,634
----------- ----------- ----------- -----------
Puerto Rico - Wireless $ 18,197 $ 28,959 $ 101,659 $ 127,031
Puerto Rico - Broadband $ 16,691 $ 16,957 $ 67,763 $ 63,313
----------- ----------- ----------- -----------
Total Puerto Rico $ 34,888 $ 45,916 $ 169,422 $ 190,344
----------- ----------- ----------- -----------
Consolidated $ 89,093 $ 90,284 $ 354,080 $ 350,978
=========== =========== =========== ===========
NET DEBT
Total Debt Less Cash
and Cash Equivalents $ 1,951,800 $ 2,041,300 $ 1,951,800 $ 2,041,300
(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 retail 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 retail customers for such period.
(3) Data Revenue per Average Wireless Customer is determined for each
period by dividing data revenue by the average retail customers
for such period.
(4) The penetration rate equals the percentage of total population in our
service areas who are retail subscribers to our wireless service as of
period-end.
(5) Churn is calculated by dividing the aggregate number of retail
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) May 2007 excludes 82,700 dedicated access line equivalents related to
short term contracts.
(8) Adjusted operating income is defined as net income (loss) before loss
from discontinued operations, income from equity investments, minority
interest in income of subsidiaries, income tax benefit (expense),
loss on extinguishment of debt, gain on sale of equity investments,
interest expense, net, (loss) gain on disposition of assets, strategic
alternatives/recapitalization 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,
2007 2006 2007 2006
--------- --------- --------- ---------
REVENUE:
Service revenue $ 214,238 $ 210,119 $ 856,451 $ 826,249
Equipment sales 13,943 11,115 55,445 38,832
--------- --------- --------- ---------
228,181 221,234 911,896 865,081
--------- --------- --------- ---------
COSTS AND EXPENSES:
Cost of services 43,267 39,235 172,396 159,994
Cost of equipment sold 29,010 29,796 124,957 106,584
Sales and marketing 23,538 21,437 94,974 90,241
General and administrative 45,041 41,242 174,211 176,620
Depreciation and
amortization 32,852 31,780 130,389 120,529
Loss (gain) on disposition
of assets 1,316 (23) 1,344 320
--------- --------- --------- ---------
175,024 163,467 698,271 654,288
--------- --------- --------- ---------
OPERATING INCOME 53,157 57,767 213,625 210,793
--------- --------- --------- ---------
INTEREST EXPENSE, NET (48,930) (50,276) (201,646) (163,680)
LOSS ON EXTINGUISHMENT OF DEBT (763) - (990) (750)
GAIN ON SALE OF EQUITY
INVESTMENT - - 4,730 652
--------- --------- --------- ---------
INCOME FROM CONTINUING
OPERATIONS BEFORE INCOME
TAX BENEFIT (EXPENSE),
MINORITY INTEREST IN
INCOME OF SUBSIDIARIES
AND INCOME FROM
EQUITY INVESTMENTS 3,464 7,491 15,719 47,015
INCOME TAX BENEFIT (EXPENSE) 3,263 (2,204) (8,022) (20,197)
--------- --------- --------- ---------
INCOME FROM CONTINUING
OPERATIONS BEFORE
MINORITY INTEREST IN INCOME
OF SUBSIDIARIES AND INCOME
FROM EQUITY INVESTMENTS 6,727 5,287 7,697 26,818
MINORITY INTEREST IN INCOME OF
SUBSIDIARIES (837) (216) (1,542) (784)
INCOME FROM EQUITY INVESTMENTS - 238 804 1,083
--------- --------- --------- ---------
INCOME FROM CONTINUING
OPERATIONS 5,890 5,309 6,959 27,117
Discontinued operations:
Income (loss) 1,120 (2,209) 461 (3,617)
(Loss) gain on disposition (871) - (33,132) 100
Income tax (expense) benefit (899) 286 (5,907) (3,356)
--------- --------- --------- ---------
Net loss from discontinued
operations (650) (1,923) (38,578) (6,873)
========= ========= ========= =========
NET INCOME (LOSS) $ 5,240 $ 3,386 $ (31,619) $ 20,244
========= ========= ========= =========
EARNINGS PER SHARE:
BASIC
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS $ 0.06 $ 0.05 $ 0.07 $ 0.26
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS $ (0.01) $ (0.02) $ (0.37) $ (0.07)
--------- --------- --------- ---------
NET INCOME (LOSS) PER
SHARE $ 0.05 $ 0.03 $ (0.30) $ 0.19
========= ========= ========= =========
DILUTED
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS $ 0.05 $ 0.05 $ 0.06 $ 0.25
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS $ (0.01) $ (0.02) $ (0.36) $ (0.06)
--------- --------- --------- ---------
NET INCOME (LOSS) PER
SHARE $ 0.04 $ 0.03 $ (0.30) $ 0.19
========= ========= ========= =========
WEIGHTED-AVERAGE SHARES
OUTSTANDING DURING THE PERIOD:
BASIC 106,377 105,148 105,673 104,644
========= ========= ========= =========
DILUTED 109,360 107,508 108,182 107,318
========= ========= ========= =========
Centennial Communications Corp.
Impact on Revenue and AOI of Puerto Rico USF Charges
(Amounts in thousands)
FY2006
----------------------------------------------------------
Q1 Q2 Q3 Q4 FY
---------- ---------- ---------- ---------- ----------
Consolidated
Revenue
Consolidated
Revenue - As
Reported 215,119 216,029 212,699 221,234 865,081
Y/Y Growth Rate
- As Reported 8.0% 10.6% 4.5% 6.2% 7.3%
Puerto Rico USF
Adjustment (1,981) (1,981) (1,391) (1,096) (6,449)
Consolidated
Revenue -
Adjusted 213,138 214,048 211,308 220,138 858,632
Y/Y Growth Rate
- Adjusted 7.5% 10.4% 4.8% 6.7% 7.3%
Consolidated
AOI
Consolidated
AOI - As
Reported 89,986 87,740 82,968 90,284 350,978
Y/Y Growth Rate
- As Reported 0.7% 1.1% -5.6% -0.4% -1.1%
Puerto Rico USF
Adjustment (1,981) (1,981) (1,391) (1,096) (6,449)
Consolidated
AOI - Adjusted 88,005 85,759 81,577 89,188 344,529
Y/Y Growth Rate
- Adjusted -0.4% 0.6% -5.2% 0.6% -1.1%
Segment Revenue
- As Reported
Puerto Rico
Wireless 81,128 78,995 76,295 77,701 314,119
Y/Y Growth Rate 10.0% 6.9% -1.7% -4.2% 2.5%
Puerto Rico
Broadband 28,746 28,622 29,106 30,481 116,955
Y/Y Growth Rate 16.5% 10.2% -6.7% 4.8% 5.5%
Intercompany (2,581) (2,545) (2,555) (2,671) (10,352)
Puerto Rico
Total 107,293 105,072 102,846 105,511 420,722
Segment Revenue
- Adjusted
Puerto Rico
Wireless 79,425 77,292 75,099 76,758 308,573
Y/Y Growth Rate 9.0% 6.5% -1.2% -3.3% 2.6%
Puerto Rico
Broadband 28,469 28,345 28,911 30,328 116,052
Y/Y Growth Rate 16.1% 10.1% -6.6% 5.3% 5.5%
Intercompany (2,581) (2,545) (2,555) (2,671) (10,352)
Puerto Rico
Total 105,312 103,091 101,455 104,415 414,273
Segment AOI -
As Reported
Puerto Rico
Wireless 34,076 32,042 31,954 28,959 127,031
Y/Y Growth Rate 13.2% 3.1% -4.9% -14.7% -1.3%
Puerto Rico
Broadband 15,257 15,510 15,589 16,957 63,313
Y/Y Growth Rate 34.6% 9.1% -12.0% 12.7% 8.6%
Segment AOI -
Adjusted
Puerto Rico
Wireless 32,373 30,339 30,758 28,016 121,485
Y/Y Growth Rate 10.8% 2.0% -3.9% -13.1% -1.4%
Puerto Rico
Broadband 14,980 15,233 15,394 16,804 62,410
Y/Y Growth Rate 33.9% 8.8% -11.8% 13.8% 8.7%
FY2007
----------------------------------------------------------
Q1 Q2 Q3 Q4 FY
---------- ---------- ---------- ---------- ----------
Consolidated
Revenue
Consolidated
Revenue - As
Reported 225,401 229,202 229,112 228,181 911,896
Y/Y Growth Rate
- As Reported 4.8% 6.1% 7.7% 3.1% 5.4%
Puerto Rico USF
Adjustment (803) (1,613) 4,358 9,037 10,979
Consolidated
Revenue -
Adjusted 224,598 227,589 233,470 237,218 922,875
Y/Y Growth Rate
- Adjusted 5.4% 6.3% 10.5% 7.8% 7.5%
Consolidated
AOI
Consolidated
AOI - As
Reported 92,153 88,235 84,599 89,093 354,080
Y/Y Growth Rate
- As Reported 2.4% 0.6% 2.0% -1.3% 0.9%
Puerto Rico USF
Adjustment (803) (1,613) 4,358 9,037 10,979
Consolidated
AOI - Adjusted 91,350 86,622 88,957 98,130 365,059
Y/Y Growth Rate
- Adjusted 3.8% 1.0% 9.0% 10.0% 6.0%
Segment Revenue
- As Reported
Puerto Rico
Wireless 77,540 78,893 75,209 70,496 302,138
Y/Y Growth Rate -4.4% -0.1% -1.4% -9.3% -3.8%
Puerto Rico
Broadband 30,311 31,831 30,336 30,363 122,841
Y/Y Growth Rate 5.4% 11.2% 4.2% -0.4% 5.0%
Intercompany (2,871) (3,036) (2,920) (2,827) (11,654)
Puerto Rico
Total 104,980 107,688 102,625 98,032 413,325
Segment Revenue
- Adjusted
Puerto Rico
Wireless 76,849 77,506 78,957 78,268 311,580
Y/Y Growth Rate -3.2% 0.3% 5.1% 2.0% 1.0%
Puerto Rico
Broadband 30,199 31,605 30,946 31,628 124,378
Y/Y Growth Rate 6.1% 11.5% 7.0% 4.3% 7.2%
Intercompany (2,871) (3,036) (2,920) (2,827) (11,654)
Puerto Rico
Total 104,177 106,075 106,983 107,069 424,304
Segment AOI -
As Reported
Puerto Rico
Wireless 31,613 28,249 23,600 18,197 101,659
Y/Y Growth Rate -7.2% -11.8% -26.1% -37.2% -20.0%
Puerto Rico
Broadband 16,849 17,937 16,286 16,691 67,763
Y/Y Growth Rate 10.4% 15.6% 4.5% -1.6% 7.0%
Segment AOI -
Adjusted
Puerto Rico
Wireless 30,922 26,862 27,348 25,969 111,101
Y/Y Growth Rate -4.5% -11.5% -11.1% -7.3% -8.5%
Puerto Rico
Broadband 16,737 17,711 16,896 17,956 69,300
Y/Y Growth Rate 11.7% 16.3% 9.8% 6.9% 11.0%
For investor and media inquiries please contact: Steve E. Kunszabo Executive Director, Investor Relations 732-556-2220