MetroPCS Communications, Inc., the nation’s leading provider of unlimited, flat-rate wireless communications service with no annual contract, announced financial and operational results for the quarter and year ended December 31, 2010. MetroPCS reported full year 2010 growth in consolidated Adjusted EBITDA of 23% over 2009 and finished 2010 with over 8.1 million subscribers. The Company reported full year net income of $193 million, or $0.54 per common share, which includes approximately $59 million in net charges related to the extinguishment of our 9 1/4% Senior Notes due 2014 and gains recognized on FCC license exchanges consummated during the year. On a non-GAAP basis, excluding the loss on extinguishment of debt and gains on FCC license exchanges, net income would have been $252 million, or $0.70 per common share. The Company reported fourth quarter 2010 net income of $14 million, or $0.04 per common share, which includes approximately $60 million in net charges related to the extinguishment of our 9 1/4% Senior Notes and a gain recognized on a FCC license exchange consummated during the quarter. On a non-GAAP basis, excluding the loss on extinguishment of debt and gain on the FCC license exchange, net income would have been $74 million, or $0.20 per common share.
“We generated record full year net subscriber additions of over 1.5 million during 2010 and full year consolidated Adjusted EBITDA of approximately $1.18 billion; also a record for the Company. Introduced at the beginning of 2010, adoption of our Wireless for AllSM service plans primarily drove these record results and also contributed to a 190bps decline in full year churn to 3.6%. Our focus on execution, combined with the success of our Wireless for All initiatives, drove approximately 23% year over year subscriber growth and 23% year over year consolidated Adjusted EBITDA growth. Importantly, over the past five years, we have generated impressive results with a CAGR of 29% subscriber growth and 31% Consolidated Adjusted EBITDA growth, both significant accomplishments for a wireless company,” said Roger D. Linquist, Chairman, President and Chief Executive Officer of MetroPCS.
“At the beginning of the year, we transformed our company with the introduction of Wireless for All. The successful transformation provided subscribers with tax and regulatory fee inclusive rate plans as well as reduced prices on handsets. Customer response to Wireless for All has been positive. We also provided existing subscribers an opportunity to upgrade their handsets to QWERTY Smartphone handsets, including the world’s first commercially available 4G LTE enabled handset, the Samsung Craft, as well as two Android™ operating system Smartphones.
“In the second half of 2010, we successfully introduced the first commercial 4G LTE service in the U.S. Concurrently, we introduced MetroSTUDIO, a rich source of multimedia content available with our $60 4G LTE plan. Following our initial 4G LTE launches, we have now introduced 4G LTE in nearly all of our major metropolitan areas. With our 4G LTE service offerings, national coverage through Metro USA, and our compelling handset line-up, which includes many Android™ and touch-screen, QWERTY Smartphones, our pay-in-advance subscribers have an experience that is substantially equivalent to that which is enjoyed by traditional post-pay customers.
“In what continues to be a competitive space, we have delivered record full-year results and successfully gained share. In 2010 we generated the highest annual Consolidated Adjusted EBITDA in company history. Importantly, we also significantly strengthened our balance sheet during the year through extending and staggering our debt maturity profile. Both financially and operationally, we believe we are well-positioned for 2011,” Linquist concluded.
2010 Operational Highlights
* Over 1.5 million consolidated net subscriber additions, surpassing the 8.1 million subscriber milestone
* Fifth consecutive year of over 1 million net subscriber additions
* Introduced Wireless for All nationwide service plans which include all applicable taxes and regulatory fees
* Launched Metro USA nationwide coverage
* Smartphone Launches –
o Launched first Android™ handsets, LG Optimus M and Huawei Ascend
o Unveiled world’s first commercially available 4G LTE handset, the Samsung Craft
o Offered the BlackBerry Curve 8530
* Launched ‘Mas Mexico’ Service which includes unlimited calling to landline numbers and unlimited mobile-to-mobile texting to Mexico for $5.00
* Launched First Commercial 4G LTE services in the United States
* Launched nine 4G LTE markets including Dallas/Ft. Worth, Las Vegas, Detroit, Los Angeles, Philadelphia, San Francisco, Sacramento, Boston and New York City
* Launched MetroSTUDIO, a source of multimedia content which includes access to full-track downloads, ringtones and ring-back tones and premium video content
* Significantly strengthened our capital structure, through extending and staggering the Company’s debt maturity profile
o Modified certain terms in our existing Senior Secured credit agreement including extending the maturity of $1.0 billion of our Term Loan B by three years and providing for future maturity extension of our existing Revolver
o Retired all $1.95 billion of our 9 1/4% Senior Notes due 2014 through issuance of $1.0 billion of 7 7/8% Senior Notes due 2018 and $1.0 billion of 6 5/8% Senior Notes due 2020