NTELOS HOLDINGS CORP. - FORM 8-K - EX-99.1 - PRESS RELEASE ANNOUNCING FINANCIAL RESULTS

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8-K - FORM 8-K - NTELOS HOLDINGS CORP.	d8k.htm
EX-99.2 - PRESS RELEASE ANNOUNCING LAUNCH OF PROPOSED REPRICING - NTELOS HOLDINGS CORP.	dex992.htm

Exhibit 99.1


For Release: February 24, 2011	Contact:	Wesley B. Wampler
Teleconference		Director, Investor Relations

February 25, 2011, 10:30 A.M. (ET)

Domestic dial in number: 1-877-317-6789

International dial in number: 1-412-317-6789

Canada dial in number: 1-866-605-3852

Replay number: 1-877-344-7529

International replay number: 1-412-317-0088

Confirmation ID: 448762

Audio webcast: http://ir.ntelos.com/

NTELOS Holdings Corp. Reports Fourth Quarter and Year

2010 Operating Results

2010 Operating Revenues of $545.7 Million

Fourth Quarter 2010 Revenues 6% Over Fourth Quarter Last Year

NTELOS Net Income of $44.8 Million for 2010, or $1.07 per Share

Fourth Quarter 2010 Sprint Wholesale Revenues Reach a Six-Quarter High

WAYNESBORO, VA – February 24, 2011 – NTELOS Holdings Corp. (NASDAQ: NTLS), a leading provider of wireless and wireline communications services (branded as NTELOS) in seven Mid-Atlantic states, today announced operating results for its fourth quarter and year of 2010.

Operating highlights include:

•

Adjusted EBITDA (a non-GAAP measure) for 2010 of $220.4 million, representing a 40% margin

•

Wireless postpay subscriber gross additions for fourth quarter 2010 up 12% from fourth quarter 2009

•

Wireless postpay ARPU of $57.79, the highest in eight quarters

•

Wireline Adjusted EBITDA of $21.3 million for the quarter, including results of FiberNet commencing 12/1/10

•

Wireless Sprint Wholesale Revenues exceed minimums at $29.2 million for fourth quarter 2010

•

Adjusted EBITDA less capital expenditures for 2010 was $129.7 million, up 9% from 2009

“Our postpay subscriber gross additions continued to show strength in the fourth quarter and our sequential quarter growth rate in prepay gross additions was our best ever,” said James A. Hyde, CEO of NTELOS Holdings Corp. “Our improved distribution model is gaining momentum and we continue to add higher quality prepay customers in greater numbers. The closing of the FiberNet acquisition is a major milestone for our company and we are delighted to welcome the FiberNet employees to the NTELOS team.”

Recent Developments

Declaration of Dividend: The Board of Directors of NTELOS Holdings Corp. today declared a quarterly cash dividend on its common stock in the amount of $0.28 per share to be paid on April 14, 2011 to stockholders of record on March 15, 2011.

FiberNet Acquisition: The Company closed on the acquisition of the FiberNet business from One Communications Corp. on December 1, 2010. The purchase includes approximately 30,000 customer accounts in West Virginia, Ohio, Maryland, Pennsylvania, Virginia and Kentucky. The purchase price for the transaction was $169 million, less working capital and other adjustments to date of approximately $6 million, for a net cash consideration at closing of approximately $163 million.

Wireless and Wireline Separation: On December 7, 2010, the Company’s board of directors unanimously approved a proposed plan to create separate wireless and wireline businesses by spinning off the wireline business into a publicly traded company (“The New Wireline Company”). Pursuant to the plan, the transaction will be structured as a tax-free distribution of The New Wireline Company shares to stockholders of NTELOS Holdings Corp. at a time and exchange rate to be determined during the second half of 2011. Consummation of the spin-off transaction is subject to final approval by the NTELOS Holdings Corp. board of directors. It also is subject to satisfaction of several conditions, including confirmation of the tax-free treatment, receipt of Nasdaq listing, Federal and State telecommunications regulatory approvals, and the filing and effectiveness of a registration statement on Form 10 with the Securities and Exchange Commission.

Market Expansion of Wireline Triple-Play Offerings: In the fourth quarter, construction began on the fiber-to-the-home initiative in Alleghany County, Virginia. Partially funded by a Federal stimulus grant, work is scheduled over three years and will pass approximately 4,200 homes at completion. Customer trials are underway with approximately 450 pre-orders to date.

Business Segment Highlights

Wireless

•

Wireless operating revenues for the fourth quarter 2010 were $102.4 million, up 2% from third quarter 2010 due primarily to a $1.8 million increase in wholesale revenues. Subscriber revenues were $66.3 million in fourth quarter 2010 compared to $66.0 million in the previous quarter. Adjusted EBITDA for Wireless was $35.1 million for the fourth quarter 2010. Revenues from the Sprint wholesale agreement were $29.2 million for fourth quarter 2010, exceeding the $9.0 million per month minimum for the first time since a scheduled travel data rate reset became effective July 1, 2009.

•

Retail wireless subscribers were 432,433 at December 31, 2010. Postpay subscriber net additions were 1,030, positive for the third consecutive quarter, increasing postpay subscribers at quarter-end to 306,769. Wireless postpay gross subscriber additions for fourth quarter 2010 were 21,289, up 12% from fourth quarter 2009. Prepay gross subscriber additions were 22,899, up 31% from the previous quarter. Fourth quarter 2010 total subscriber churn was 3.5% and postpay monthly subscriber churn was 2.2%. Prepay subscribers at year-end totaled 125,664.

•

Postpay ARPU was $57.79 for the fourth quarter of 2010, the highest in eight quarters, with postpay data ARPU continuing solid growth, increasing $3.87, or 36%, from $10.74 in fourth quarter 2009 to $14.61 in fourth quarter 2010. Sequentially, postpay data ARPU was up 4%, or $0.55, compared to third quarter 2010.

“We are encouraged by our fourth quarter subscriber and revenue development results,” said Hyde. “Postpay sales and net additions were strong again for the quarter and prepay results began to show similar improvement. Both reflect the impact from expanded and improved distribution and our relentless focus on the customer experience.”

Wireline

•

Wireline operating revenues for the fourth quarter 2010 were $39.0 million, up 26% from fourth quarter 2009 and up 15% from the previous quarter. With the closing effective on December 1, 2010, these results reflect one month of FiberNet results. Adjusted EBITDA for Wireline was $21.3 million for the fourth quarter 2010, up 19% from the same quarter last year.

•

Competitive Wireline: Revenues from Wireline strategic products increased approximately $8.0 million, or 55% from fourth quarter 2009 to $22.4 million in fourth quarter 2010. This improvement is due to increases related to the FiberNet acquisition, as well as customer growth and continued growth in data connectivity and bandwidth demand. Adjusted EBITDA for Competitive Wireline was $11.5 million for the fourth quarter 2010, an increase of 50% over fourth quarter 2009, reflecting the revenue growth and continued margin strength at 45%.

•

RLEC: RLEC revenues for the fourth quarter of 2010 were $13.3 million, down 4% from fourth quarter 2009 as an increase in access revenues only partially offset revenue losses related to a decline in access lines. Broadband growth within the RLEC footprint continued increasing customer penetration to 59% as of December 31, 2010. RLEC adjusted EBITDA, with a margin of 74%, was $9.8 million for fourth quarter 2010, compared to $10.2 million in fourth quarter 2009.

“Our wireline business continues to deliver industry-leading performance on all fronts and our FiberNet acquisition accelerates the growth potential of our high-bandwidth data product offerings,” stated Hyde. “The strategic opportunities provided to both our wireline and wireless operations by the planned separation of the wireline business are truly exciting.”

###

Business Outlook

The Company will provide 2011 financial guidance updates on the Fourth Quarter 2010 Earnings Conference Call scheduled for February 25, 2011 at 10:30 A.M. ET.

Statements made will be based on management’s current expectations. These statements are forward-looking and actual results may differ materially. Please see “Special Note from the Company Regarding Forward-Looking Statements.”

Non-GAAP Measures

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 noncontrolling interests, other expenses/income, equity based compensation charges, acquisition related charges, charges from voluntary early retirement and workforce reduction plans and costs related to the planned separation of the wireless and wireline companies.

ARPU, or average monthly revenues per subscriber/unit with service, is computed by dividing service revenues per period by the weighted average number of subscribers with service during that period. Please see the footnotes in the exhibits for a complete definition of this measure.

Adjusted EBITDA and ARPU are non-GAAP financial performance measures. They should not be considered in isolation or as an alternative to measures determined in accordance with GAAP. Please refer to the exhibits and materials posted on the Company’s website for a reconciliation of these non-GAAP financial performance measures to the most comparable measures reported in accordance with GAAP and for a discussion of the presentation, comparability and use of such financial performance measures.

About NTELOS

NTELOS Holdings Corp. (NASDAQ: NTLS) is an integrated communications provider with headquarters in Waynesboro, VA. NTELOS provides products and services to customers in Virginia, West Virginia, Pennsylvania, Kentucky, Ohio, Tennessee, Maryland and North Carolina, including nationwide wireless voice and data services, local and long distance telephone, high capacity transport, networking and high-speed Broadband data services and IPTV-based video products. Detailed information about NTELOS is available at www.ntelos.com.

SPECIAL NOTE FROM THE COMPANY 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: rapid development and intense competition in the telecommunications industry; our ability to successfully integrate the operations of the FiberNet business; the failure to realize synergies and cost savings from the acquisition of the FiberNet business or delay in realization thereof; adverse economic conditions; operating and financial restrictions imposed by our senior credit facility; our cash and capital requirements; declining prices for our services; the potential to experience a high rate of customer turnover; our dependence on our affiliation with Sprint Nextel (“Sprint”); a potential increase in our roaming rates and wireless handset subsidy costs; the potential for Sprint to build networks in our markets; federal and state regulatory fees, requirements and developments; loss of our cell sites; the rates of penetration in the wireless telecommunications industry; our reliance on certain suppliers and vendors; Failure to complete the business separation of the wireless and wireline operations in an orderly fashion as currently structured 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 Annual Reports filed on Forms 10-K.

Exhibits:

•

Condensed Consolidated Balance Sheets

•

Condensed Consolidated Statements of Operations

•

Summary of Operating Results

•

Reconciliation of Net Income Attributable to NTELOS Holdings Corp. to Operating Income

•

Reconciliation of Operating Income to Adjusted EBITDA

•

Customer Summary

•

Wireless Customer Detail

•

Wireless Key Performance Indicators (KPI)

•

Wireless ARPU Reconciliation

NTELOS Holdings Corp.

Condensed Consolidated Balance Sheets


	December 31, 2010		December 31, 2009
(in thousands)

ASSETS
Current Assets
Cash	$	15,676	$	51,097
Restricted cash ¹		9,210		—
Accounts receivable, net		55,988		45,767
Inventories and supplies		7,120		10,870
Other receivables		2,390		1,705
Income tax receivable		11,008		4,368
Prepaid expenses and other		12,193		10,196

		113,585		124,003


Securities and investments		1,236		1,023

Property, plant and equipment, net		570,358		500,975

Other Assets
Goodwill		195,915		113,041
Franchise rights		32,000		32,000
Other intangibles, net		83,237		64,360
Radio spectrum licenses in service		115,449		115,449
Radio spectrum licenses not in service		16,859		16,850
Deferred charges and other assets		15,474		12,845

		458,934		354,545


Total Assets	$	1,144,113	$	980,546


LIABILITIES AND EQUITY
Current Liabilities
Current portion of long-term debt	$	8,567	$	6,876
Accounts payable		32,004		30,756
Dividends payable		11,749		11,604
Advance billings and customer deposits		23,227		20,006
Accrued compensation		8,799		5,583
Accrued interest		3,727		30
Accrued operating taxes		3,195		3,070
Other accrued liabilities		7,068		4,802

		98,336		82,727


Long-Term Liabilities
Long-term debt		740,640		622,032
Other long-term liabilities		125,886		99,678

		866,526		721,710


Equity		179,251		176,109


Total Liabilities and Equity	$	1,144,113	$	980,546

During 2010, the Company received Federal stimulus awards, providing 50% funding, to bring broadband services and infrastructure to Alleghany County, Virginia and to provide wireless broadband service and infrastructure to Hagerstown, Maryland. The Company was required to deposit 100% of its portion for both grants ($9.2 million) into pledged accounts in advance of any reimbursements, to be drawn down ratably following reimbursement approvals.

NTELOS Holdings Corp.

Condensed Consolidated Statements of Operations


	Three months ended:						Year ended:
(in thousands, except per share amounts)	December 31, 2010			December 31, 2009			December 31, 2010			December 31, 2009

Operating Revenues	$	141,544		$	133,349		$	545,684		$	549,700

Operating Expenses ¹

Cost of sales and services (exclusive of items shown separately below)		46,889			42,401			174,975			176,707

Customer operations		32,868			30,717			121,697			117,916

Corporate operations ^2,3		10,537			9,837			37,714			32,929

Depreciation and amortization		24,052			22,730			89,381			91,657

Accretion of asset retirement obligations		225			(187	)		781			773

		114,571			105,498			424,548			419,982

Operating Income		26,973			27,851			121,136			129,718

Other Income (Expenses)
Interest expense		(11,848	)		(9,123	)		(43,086	)		(29,570	)
Loss (gain) on derivatives		(147	)		—			(147	)		2,100
Other expense (income)		248			69			(366	)		(864	)

		15,226			18,797			77,537			101,384

Income Tax Expense		6,183			4,299			31,192			37,209

Net Income		9,043			14,498			46,345			64,175

Net Income Attributable to Noncontrolling Interests		(391	)		(221	)		(1,537	)		(890	)

Net Income Attributable to NTELOS Holdings Corp.	$	8,652		$	14,277		$	44,808		$	63,285


Basic and Diluted Earnings per Common Share Attributable to NTELOS Holdings Corp. Stockholders:

Income per share - basic	$	0.21		$	0.34		$	1.08		$	1.50
Income per share - diluted	$	0.21		$	0.34		$	1.07		$	1.50

Weighted average shares outstanding - basic		41,391			41,757			41,322			42,061
Weighted average shares outstanding - diluted		41,813			42,009			41,695			42,300

Cash Dividends Declared per Share - Common Stock	$	0.28		$	0.28		$	1.12		$	1.06

Note: The fourth quarter and year 2010 include operating results of FiberNet, commencing on December 1, 2010.

Includes equity based compensation charges related to all of the Company’s share-based awards and the Company’s 401(k) matching contributions (commencing June 1, 2009) of $1.5 million for the fourth quarter and $5.7 million for the year 2010, and $0.2 million for the fourth quarter and $3.5 million for the year 2009.

First quarter 2010 included a $0.9 million charge related to severance benefits pursuant to an executive employment agreement. Please see Form 8-K filed with the SEC on March 12, 2010 for additional information. First quarter 2009 included a one-time cash payment of $1.0 million to James A. Hyde, NTELOS’ then newly hired president and COO.

Includes acquisition related charges representing legal and professional fees related to the acquisition of FiberNet of $2.8 million for the fourth quarter and $3.0 million for the year 2010. Fourth quarter 2010 also includes $0.4 million of legal and consulting services costs in connection with plans to separate the wireless and wireline operations.

NTELOS Holdings Corp.

Summary of Operating Results


(in thousands)	Three months ended:						Year ended:
	December 31, 2009			December 31, 2010			December 31, 2009			December 31, 2010
Operating Revenues
Wireless PCS Operations	$	102,388		$	102,376		$	424,678		$	406,396
Subscriber Revenues		67,754			66,273			280,191			266,193
Wholesale/Roaming Revenues, net		28,396			30,559			118,266			115,619
Equipment Revenues		5,887			5,177			24,832			23,126
Other Revenues		351			367			1,389			1,458

Wireline Operations
RLEC		13,761			13,276			57,304			54,871
Competitive Wireline		17,083			25,737			67,237			83,885

Wireline Total		30,844			39,013			124,541			138,756

Other		117			155			481			532

	$	133,349		$	141,544		$	549,700		$	545,684

Operating Expenses

(before depreciation & amortization, asset impairment charges, accretion of asset retirement obligations, equity based compensation, acquisition related charges, charges from voluntary early retirement and workforce reduction plans and costs related to the planned separation of the wireless and wireline companies, a non-GAAP Measure of operating expenses)

Wireless PCS Operations	$	66,523		$	67,270		$	262,886		$	258,360
Cost of Sales and Services
Cost of Sales - Equipment		8,118			8,043			35,440			29,665
Cost of Sales - Access & Other		10,575			8,749			43,804			37,032
Maintenance and Support		15,079			16,399			59,084			62,665
Customer Operations		27,435			28,301			102,451			104,818
Corporate Operations		5,316			5,778			22,107			24,180

Wireline Operations
RLEC		3,611			3,488			14,403			14,516
Competitive Wireline		9,416			14,269			38,545			45,938

Wireline Total		13,027			17,757			52,948			60,454

Other ¹		1,685			1,200			6,726			6,474

	$	81,235		$	86,227		$	322,560		$	325,288

Adjusted EBITDA (a non-GAAP Measure) ¹
Wireless PCS Operations	$	35,865		$	35,106		$	161,792		$	148,036

Wireline Operations
RLEC		10,150			9,788			42,901			40,355
Competitive Wireline		7,667			11,468			28,692			37,948

Wireline Total		17,817			21,256			71,593			78,303

Other ¹		(1,568	)		(1,045	)		(6,245	)		(5,943	)

	$	52,114		$	55,317		$	227,140		$	220,396

Capital Expenditures
Wireless PCS Operations	$	8,369		$	9,433		$	50,747		$	39,187

Wireline Operations
RLEC		819			4,616			11,316			12,522
Competitive Wireline		4,754			5,802			26,023			28,230

Wireline Total		5,573			10,418			37,339			40,752

Other		2,943			3,311			19,805			10,754

	$	16,885		$	23,162		$	107,891		$	90,693

Adjusted EBITDA less Capital Expenditures (a non-GAAP measure)
Wireless PCS Operations	$	27,496		$	25,673		$	111,045		$	108,849

Wireline Operations
RLEC		9,331			5,172			31,585			27,833
Competitive Wireline		2,913			5,666			2,669			9,718

Wireline Total		12,244			10,838			34,254			37,551

Other ¹		(4,511	)		(4,356	)		(26,050	)		(16,697	)

	$	35,229		$	32,155		$	119,249		$	129,703

First quarter 2010 includes a $0.9 million charge related to severance benefits pursuant to an executive employment agreement. Please see Form 8-K filed with the SEC on March 12, 2010 for additional information. First quarter 2009 includes a one-time cash payment of $1.0 million to James A. Hyde, NTELOS’ then newly hired president and COO.

NTELOS Holdings Corp.

Reconciliation of Net Income Attributable to NTELOS Holdings Corp. to Operating Income

(in thousands)


	Three months ended:						Year ended:
	December 31, 2009			December 31, 2010			December 31, 2009			December 31, 2010

Net income attributable to NTELOS Holdings Corp.	$	14,277		$	8,652		$	63,285		$	44,808
Net income attributable to noncontrolling interests		221			391			890			1,537

Net Income		14,498			9,043			64,175			46,345

Interest expense		9,123			11,848			29,570			43,086
(Loss) gain on derivatives		—			147			(2,100	)		147
Income taxes		4,299			6,183			37,209			31,192
Other expense		(69	)		(248	)		864			366

Operating income	$	27,851		$	26,973		$	129,718		$	121,136


Wireless	$	20,089		$	19,752		$	96,464		$	88,596
RLEC		6,160			6,138			27,694			25,878
Competitive Wireline		3,453			5,757			14,944			20,447
Other		(1,851	)		(4,674	)		(9,384	)		(13,785	)

Operating income	$	27,851		$	26,973		$	129,718		$	121,136

NTELOS Holding Corp.

Reconciliation of Operating Income to Adjusted EBITDA


(dollars in thousands)	2009															2010
	Wireless PCS			RLEC			Competitive Wireline			Other			Total			Wireless PCS			RLEC			Competitive Wireline			Other			Total
For The Three Months Ended December 31
Operating Income	$	20,089		$	6,160		$	3,453		$	(1,851	)	$	27,851		$	19,752		$	6,138		$	5,757		$	(4,674	)	$	26,973
Depreciation and amortization		14,579			3,891			4,190			70			22,730			15,001			3,547			5,476			28			24,052

Sub-total:		34,668			10,051			7,643			(1,781	)		50,581			34,753			9,685			11,233			(4,646	)		51,025

Accretion of asset retirement obligations		(198	)		5			15			(9	)		(187	)		188			6			30			1			225
Equity based compensation		64			35			9			76			184			165			97			21			1,261			1,544
Voluntary early retirement and workforce reduction plans		1,331			59			—			146			1,536			—			—			—			—			—
Acquisition related charges ¹		—			—			—			—			—			—			—			184			1,987			2,171
Proposed business separation charges²		—			—			—			—			—			—			—			—			352			352

Adjusted EBITDA	$	35,865		$	10,150		$	7,667		$	(1,568	)	$	52,114		$	35,106		$	9,788		$	11,468		$	(1,045	)	$	55,317

Adjusted EBITDA Margin		35.0	%		73.8	%		44.9	%		NM			39.1	%		34.3	%		73.7	%		44.6	%		NM			39.1	%

For The Year Ended December 31
Operating Income	$	96,464		$	27,694		$	14,944		$	(9,384	)	$	129,718		$	88,596		$	25,878		$	20,447		$	(13,785	)	$	121,136
Depreciation and amortization		62,906			14,940			13,654			157			91,657			57,982			14,082			17,231			86			89,381

Sub-total:		159,370			42,634			28,598			(9,227	)		221,375			146,578			39,960			37,678			(13,699	)		210,517

Accretion of asset retirement obligations		704			20			58			(9	)		773			768			22			(11	)		2			781
Equity based compensation		387			188			36			2,845			3,456			690			373			75			4,588			5,726
Voluntary early retirement and workforce reduction plans		1,331			59			—			146			1,536			—			—			—			—			—
Acquisition related charges ¹		—			—			—			—			—			—			—			206			2,814			3,020
Proposed business separation charges²		—			—			—			—			—			—			—			—			352			352

Adjusted EBITDA	$	161,792		$	42,901		$	28,692		$	(6,245	)	$	227,140		$	148,036		$	40,355		$	37,948		$	(5,943	)	$	220,396

Adjusted EBITDA Margin		38.1	%		74.9	%		42.7	%		NM			41.3	%		36.4	%		73.5	%		45.2	%		NM			40.4	%

¹	Acquisition related charges represent legal and professional fees related to the acquisition of FiberNet that closed on December 1, 2010.

²	Fourth quarter 2010 includes $0.4 million of legal and consulting services costs in connection with plans to separate the wireless and wireline operations.

NTELOS Holdings Corp.

Customer Summary Table


Quarter Ended:	12/31/2009		3/31/2010		6/30/2010		9/30/2010		12/31/2010
Wireless Subscribers		438,529		445,277		439,348		433,698		432,433
RLEC Total Access Lines		38,237		37,718		37,075		36,233		35,422
CLEC Access Lines ¹		49,694		49,522		49,357		49,474		134,071
RLEC Broadband Customers ²		14,372		14,647		14,706		14,728		14,706
Total Broadband Connections ²		23,478		24,166		24,802		25,302		32,994
Video Subscribers		2,040		2,203		2,345		2,669		2,849

¹	Includes customer Primary Rate Interface (PRI) line equivalents at 23 lines per PRI. Excludes intercompany PRI lines.

²	Includes customers or customer equivalents for DSL, dedicated Internet access, wireless portable broadband, broadband over fiber and metro Ethernet. All revenues from broadband products, including RLEC broadband, are recorded in the operating revenues of the Competitive Wireline segment.

NTELOS Holdings Corp.

Wireless Customer Detail

Year ended:

Quarter Ended:

12/31/2009

3/31/2010

6/30/2010

9/30/2010

12/31/2010

12/31/2009

12/31/2010

Total Wireless Subscribers

Beginning Subscribers

438,303

438,529

445,277

439,348

433,698

435,008

438,529

Prepay

130,184

131,783

142,427

136,289

128,018

123,999

131,783

Postpay

308,119

306,746

302,850

303,059

305,680

311,009

306,746

Gross Additions

44,376

48,047

33,477

38,935

44,188

176,119

164,647

Prepay

25,427

31,062

16,825

17,484

22,899

98,726

88,270

Postpay

18,949

16,985

16,652

21,451

21,289

77,393

76,377

Disconnections

44,150

41,299

39,406

44,585

45,453

172,598

170,743

Prepay

23,587

20,222

22,760

25,539

25,194

89,030

93,715

Postpay

20,563

21,077

16,646

19,046

20,259

83,568

77,028

Net Additions (Losses)

226

6,748

(5,929

)

(5,650

)

(1,265

)

3,521

(6,096

)

Prepay

1,840

10,840

(5,935

)

(8,055

)

(2,295

)

9,696

(5,445

)

Postpay

(1,614

)

(4,092

)

2,405

1,030

(6,175

)

(651

)

Ending Subscribers

438,529

445,277

439,348

433,698

432,433

438,529

432,433

Prepay

131,783

142,427

136,289

128,018

125,664

131,783

125,664

Postpay

306,746

302,850

303,059

305,680

306,769

306,746

306,769

Note: Postpay subscriber gain for second quarter 2010 of 1,089 consists of net gains of 1,030 and conversions of prepay customers to postpay of 59. Please refer to previous earnings releases for comparable information for prior quarters.

NTELOS Holdings Corp.

Wireless Key Performance Indicators


	Three months ended:						Year ended:
	December 31, 2009			December 31, 2010			December 31, 2009			December 31, 2010

Average Subscribers (weighted monthly)		436,970			431,151			440,207			437,735

Gross Subscriber Revenues ($000)	$	67,480		$	66,741		$	281,006		$	267,092
Revenue Accruals & Deferrals		346			(390	)		(542	)		(597	)
Eliminations & Other Adjustments		(72	)		(78	)		(273	)		(302	)


Net Subscriber Revenues ($000)	$	67,754		$	66,273		$	280,191		$	266,193

Average Monthly Revenue per Subscriber/Unit (ARPU) ¹	$	51.48		$	51.60		$	53.20		$	50.85

Average Monthly Revenue per Postpay Subscriber/Unit (ARPU) ¹	$	56.23		$	57.79		$	56.98		$	56.99

Average Monthly Data Revenue per Subscriber/Unit (ARPU) ¹	$	9.84		$	13.56		$	9.23		$	12.08

Average Monthly Data Revenue per Postpay Subscriber/Unit (ARPU) ¹	$	10.74		$	14.61		$	10.06		$	13.43

Strategic Network Alliance Revenues ($000)
Home Voice	$	13,861		$	15,805		$	52,354		$	59,560
Travel Voice		4,442			4,837			16,743			18,074

Total Voice		18,303			20,642			69,097			77,634

Home Data		3,319			4,100			13,157			15,147
Travel Data		1,662			4,418			21,744			10,910

Total Data		4,981			8,518			34,901			26,057

Revenue Minimum Adjustment		3,772			—			8,832			6,657

Total	$	27,056		$	29,160		$	112,830		$	110,348


Monthly Postpay Subscriber Churn		2.2	%		2.2	%		2.2	%		2.1	%

Monthly Blended Subscriber Churn		3.4	%		3.5	%		3.3	%		3.3	%

Total Cell Sites (period ending)		1,247			1,313

EV-DO Rev. A Cell Sites (period ending; sub-set of Total Cell Sites above)		1,065			1,092

Cell Sites under the Strategic Network Alliance Agreement (period ending; sub-set of Total Cell Sites above)		762			771

Average monthly revenues per subscriber/unit in service, or ARPU, is an industry metric that measures service revenues per period divided by the weighted average number of handsets in service 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 statement of operations. The Company closely monitors the effects of new rate plans and service offerings on ARPU 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.

NTELOS Holdings Corp.

Wireless ARPU Reconciliation


	Three months ended:						Year ended:
	December 31, 2009			December 31, 2010			December 31, 2009			December 31, 2010
Average Revenue per Handset/Unit (ARPU) ¹
(amounts in thousands except for subscribers and ARPU)

Operating Revenues	$	133,349		$	141,544		$	549,700		$	545,684
Less: Wireline and other operating revenue		(30,961	)		(39,168	)		(125,022	)		(139,288	)

Wireless communications revenue		102,388			102,376			424,678			406,396
Less: Equipment revenue from sales to new customers		(1,972	)		(1,936	)		(6,379	)		(8,233	)
Less: Equipment revenue from sales to existing customers		(3,915	)		(3,240	)		(18,453	)		(14,893	)
Less: Wholesale revenue		(28,396	)		(30,559	)		(118,266	)		(115,619	)
Plus (Less): Other revenues, eliminations and adjustments		(625	)		100			(574	)		(559	)

Wireless gross subscriber revenue	$	67,480		$	66,741		$	281,006		$	267,092

Less: Paid in advance subscriber revenue		(16,190	)		(13,335	)		(67,974	)		(58,918	)
(Less) Plus: Adjustments		387			(427	)		(483	)		(276	)

Wireless gross postpay subscriber revenue	$	51,677		$	52,979		$	212,549		$	207,898


Average subscribers		436,970			431,151			440,207			437,735

Total ARPU	$	51.48		$	51.60		$	53.20		$	50.85


Average postpay subscribers		306,361			305,556			310,852			303,986

Postpay ARPU	$	56.23		$	57.79		$	56.98		$	56.99


Wireless gross subscriber revenue	$	67,480		$	66,741		$	281,006		$	267,092
Less: Wireless voice and other feature revenue		(54,585	)		(49,201	)		(232,271	)		(203,657	)

Wireless data revenue	$	12,895		$	17,540		$	48,735		$	63,435


Average subscribers		436,970			431,151			440,207			437,735

Total Data ARPU	$	9.84		$	13.56		$	9.23		$	12.08


Wireless gross postpay subscriber revenue	$	51,677		$	52,979		$	212,549		$	207,898
Less: Wireless postpay voice and other feature revenue		(41,803	)		(39,590	)		(175,031	)		(158,890	)

Wireless postpay data revenue	$	9,874		$	13,389		$	37,518		$	49,008


Average postpay subscribers		306,361			305,556			310,852			303,986

Postpay data ARPU	$	10.74		$	14.61		$	10.06		$	13.43

Average monthly revenues per subscriber/unit with service, or ARPU, is an industry metric that measures service revenues per period divided by the weighted average number of subscribers with service 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 statement of operations. The Company closely monitors the effects of new rate plans and service offerings on ARPU 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.

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