NTELOS Holdings Corp. (NTLS) Misses Q2 EPS by 15c; CEO James Hyde Resigns

NTELOS Holdings Corp. (NASDAQ: NTLS) reported Q2 EPS of $0.02, $0.15 worse than the analyst estimate of $0.17. Revenue for the quarter came in at $117.8 million versus the consensus estimate of $120.24 million.

Subscriber Highlights

Total Subscribers

• Total subscribers were 458,100 as of June 30, 2014, compared to 454,800 for the same period of 2013;
• Total subscriber gross additions for the second quarter 2014 were 39,000, compared to 40,100 for the same period of 2013; and
• Total net subscriber additions for the second quarter 2014 were 400, compared to 3,800 for the same period of 2013.

Postpay Subscribers

• Postpay subscriber gross additions for the second quarter 2014 were 20,400, compared to 16,300 for the second quarter 2013 and 20,200 for the first quarter 2014;
• Net postpay subscriber additions were 3,300 for the second quarter 2014, compared to 200 for the second quarter 2013 and 300 for the first quarter 2014;
• Postpay churn for the second quarter 2014 was 1.8%, compared to 1.8% for the second quarter 2013;
• ARPA increased 2.9% to $137.20 for the second quarter 2014, compared to $133.34 for the same period in 2013; and
• As of June 30, 2014, total postpay subscribers were 308,200.

Prepay Subscribers

• Prepay subscriber gross additions for the second quarter 2014 were 18,600, compared to 23,800 for the second quarter 2013 and 25,200 for the first quarter 2014;
• Net prepay subscriber additions (losses) were (2,900) for the second quarter 2014, compared to 3,600 for the second quarter 2013 and 3,100 for the first quarter 2014;
• Prepay churn for the second quarter 2014 was 4.5%, compared to 4.4% for the second quarter 2013; and
• As of June 30, 2014, total prepay subscribers were 149,900.

For the year ending December 31, 2014, the Company reiterates its full year 2014 Adjusted EBITDA guidance of between $128.0 million and $135.0 million and full year 2014 capital expenditures guidance of between $110.0 million and $120.0 million.

The company also announced that its Board of Directors ("the Board") has accepted the resignation of James A. Hyde as Chief Executive Officer, President and member of the Board, effective today. The Board also announced the immediate appointment of NTELOS Director Rodney D. Dir as President and Chief Operating Officer. Michael A. Huber, Chairman of the Board, will oversee strategic relationships and external communications.

"On behalf of the Board of Directors, I would like to thank Jim for his service to nTelos and his significant accomplishments during his tenure," said Michael A. Huber. "Jim's guidance and leadership was integral to the successful spinoff of Lumos Networks in 2011 as well as the recent extension of our Strategic Network Alliance (SNA) with Sprint Corporation. We wish him well in his future endeavors."

Mr. Huber continued, "The Board and management remain committed to pursuing our goals of growing our retail business, maximizing the revenue potential of our wholesale relationships and increasing the strategic relevance of our assets. We are pleased that Rod has agreed to serve as our President and Chief Operating Officer. Rod is a seasoned telecommunications executive with decades of operational experience with a number of the leading wireless companies. He has the leadership experience to oversee the operations of the Company, as well as the industry and Company knowledge to execute against our strategic plan. During the transition period, we will complete a thorough search for a new CEO."

Mr. Dir commented, "I am excited to be taking on this new role at nTelos at a dynamic time in the industry. I look forward to working closely with the nTelos team to drive outstanding performance for our customers and shareholders."

Background on Rodney Dir

Rodney Dir, age 56, has been a director since October 2011. He served as President and Chief Executive Officer of Spectrum Bridge, Inc., a wireless spectrum management company, from May 2011 to March 2014. From 2007 to 2011, he served as the Chief Operating Officer of Firethorn Holdings, Inc., a privately held provider of mobile banking and mobile commerce services, which was acquired by Qualcomm Incorporated in November 2007. From 2005 to 2007, he served as the Chief Operating Officer of Cincinnati Bell, Inc., a publicly traded company and provider of telecommunication services. Between 1984 and 2005, Mr. Dir served in various positions having increasing levels of responsibility with various telecom companies, including T-Mobile, Powertel and GTE.

Background on Michael Huber

Michael Huber, age 45, has been a director since April 2005, and has been Chairman of the Board of Directors since December 2009. Since January 2004, Mr. Huber has served as a Managing Principal of Quadrangle Group LLC, a private investment firm, and since January 2010, Mr. Huber also has served as President of Quadrangle. Mr. Huber serves on the Boards of Directors of several companies, including GET AS, Lumos Networks Corp. and Tower Vision Mauritius Limited and as a managing member of Hargray Holdings LLC.

For earnings history and earnings-related data on NTELOS Holdings Corp. (NTLS) click here.

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