LUBBOCK, Texas-Sprint PCS affiliate Alamosa Holdings Inc. reported $147.4 million in total revenues for the third quarter, a 36.7-percent increase from the $107.9 million the carrier reported for the third quarter last year. Even with the increase in revenues, net losses surged from $37.7 million last year, a loss of 41 cents per share, to $320.8 million this year, or a loss of $3.45 per share.
The company attributed the increase in net losses to a $291.6 million charge related to its first annual impairment test required by SFAS No. 142, “Goodwill and Intagible Assets.” Without the charge, Alamosa said it would have recorded a net loss of $29.2 million, or a loss of 31 cents per share.
Alamosa reported $5.4 million in earnings before interest, taxes, depreciation and amortization, which was below the $6.4 million posted during the second quarter of this year, but ahead of the negative $11.3 million recorded for the third quarter last year. The carrier also said it expects to have adequate funding through next year when it will become free cash flow positive and that it is continuing to work with the New York Stock Exchange regarding its compliance for continued listing.
Operationally, Alamosa added 20,000 net customers during the quarter, well below the 88,000 the carrier added during the third quarter of 2001, but flat with second quarter 2002 net additions. Net additions were affected by an increase in customer churn from 2.7 percent during the third quarter last year to 3.8 percent this year.
Average revenue per user was up from $59 during the second quarter of this year to $60 during the third quarter, but down from the $63 posted for the third quarter last year. Cost per gross customer addition increased from $324 last year to $442 this year with cash cost per user falling from $44 to $41 over the same time frame.
“Operationally, we are extremely focused on increasing our rate of customer additions and decreasing churn,” explained David Sharbutt, chief executive officer of Alamosa. “We are also looking at ways to decrease our customer costs, increase margins and leverage our fixed asset base, which should result in improved financial performance.”
