NTELOS Holdings Corp. (NTLS, Financial) filed Quarterly Report for the period ended 2010-06-30.
Ntelos Holdings Corp. has a market cap of $755.7 million; its shares were traded at around $18.17 with a P/E ratio of 13.2 and P/S ratio of 1.4. The dividend yield of Ntelos Holdings Corp. stocks is 6.1%.NTLS is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Operating revenues decreased $7.7 million, or 5.5%, from the three months ended June 30, 2009 to the three months ended June 30, 2010, and decreased $10.8 million, or 3.8%, from the six months ended June 30, 2009 to the six months ended June 30, 2010. The decreases from the three- and six-month comparative periods were due to a decrease in wireless PCS revenues of $9.3 million, or 8.5%, from the three-month comparative period and $14.4 million, or 6.6%, from the six-month comparative period primarily from declines in subscriber revenues and wholesale revenues. Wireline revenues increased $1.6 million, or 5.0%, over the comparative three months and $3.6 million, or 5.8%, over the comparative six months due to growth in key strategic product revenues in the Competitive Wireline segment, including revenues associated with the fiber optic assets acquired from Allegheny Energy, Inc. on December 31, 2009. The net three-and six-month wireline revenue increases were partially offset by a $1.0 million and $1.5 million decline in revenue from the RLEC segment for the respective three -and six-month comparative periods primarily as a result of an unfavorable adjustment to RLEC access revenue of $0.4 million in the second quarter of 2010 and $0.6 million year to date 2010 related to the settlement of a carrier access billing dispute.
Operating income decreased $3.4 million and $5.7 million from the three and six months ended June 30, 2009 driven by the decline in revenue discussed above, partially offset by a decrease in operating expenses of $4.3 million, or 4.1%, from the comparative three-month period and $5.1 million, or 2.4% from the comparative six-month period. The operating expense decreases were primarily driven by decreases in cost of wireless sales and accelerated depreciation as discussed further below.
Net income attributable to NTELOS Holdings Corp. decreased $4.5 million, or 26.0%, from the three months ended June 30, 2009. In addition to the $3.4 million decrease in operating income, other expenses (net of other income), increased by $4.0 million primarily relating to a $3.5 million increase in interest expense and the prior year favorable change in interest rate swap value of $0.5 million. These decreases to net income were offset by a $3.1 million decrease in income tax expense. Similarly, net income attributable to NTELOS Holdings Corp. decreased $9.4 million, or 27.1%, from the six months ended June 30, 2009 due to the $5.7 million decrease in operating income, an increase in other expenses (net of other income) of $9.7 million primarily relating to an $8.3 million increase in interest expense and the prior year favorable change in interest rate swap value of $1.4 million. These decreases to net income were offset by a $6.2 million decrease in income tax expense from the comparative six-month period.
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Ntelos Holdings Corp. has a market cap of $755.7 million; its shares were traded at around $18.17 with a P/E ratio of 13.2 and P/S ratio of 1.4. The dividend yield of Ntelos Holdings Corp. stocks is 6.1%.NTLS is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
We have an agreement with Sprint Spectrum L.P. to act as their exclusive wholesale provider of network services through July 31, 2015. Under this arrangement, which we refer to as the Strategic Network Alliance, we are the exclusive PCS service provider in our western Virginia and West Virginia service area to Sprint for all Sprint CDMA wireless customers. For the six months ended June 30, 2010 and 2009, we realized wireless wholesale revenues of $56.3 million and $61.4 million, respectively. Of this total for the six months ended June 30, 2010 and 2009, $54.1 million and $58.7 million, respectively, related to the Strategic Network Alliance. Following a contractual travel data rate reset on July 1, 2009, our monthly calculated revenue from Sprint Nextel has fallen below the $9.0 million minimum and thus we have been billing and recognizing revenue at the $9.0 million minimum stipulated in the contract since the July 2009 travel data rate reset. Revenue from this contract is projected to remain at that level for the remainder of 2010.Operating revenues decreased $7.7 million, or 5.5%, from the three months ended June 30, 2009 to the three months ended June 30, 2010, and decreased $10.8 million, or 3.8%, from the six months ended June 30, 2009 to the six months ended June 30, 2010. The decreases from the three- and six-month comparative periods were due to a decrease in wireless PCS revenues of $9.3 million, or 8.5%, from the three-month comparative period and $14.4 million, or 6.6%, from the six-month comparative period primarily from declines in subscriber revenues and wholesale revenues. Wireline revenues increased $1.6 million, or 5.0%, over the comparative three months and $3.6 million, or 5.8%, over the comparative six months due to growth in key strategic product revenues in the Competitive Wireline segment, including revenues associated with the fiber optic assets acquired from Allegheny Energy, Inc. on December 31, 2009. The net three-and six-month wireline revenue increases were partially offset by a $1.0 million and $1.5 million decline in revenue from the RLEC segment for the respective three -and six-month comparative periods primarily as a result of an unfavorable adjustment to RLEC access revenue of $0.4 million in the second quarter of 2010 and $0.6 million year to date 2010 related to the settlement of a carrier access billing dispute.
Operating income decreased $3.4 million and $5.7 million from the three and six months ended June 30, 2009 driven by the decline in revenue discussed above, partially offset by a decrease in operating expenses of $4.3 million, or 4.1%, from the comparative three-month period and $5.1 million, or 2.4% from the comparative six-month period. The operating expense decreases were primarily driven by decreases in cost of wireless sales and accelerated depreciation as discussed further below.
Net income attributable to NTELOS Holdings Corp. decreased $4.5 million, or 26.0%, from the three months ended June 30, 2009. In addition to the $3.4 million decrease in operating income, other expenses (net of other income), increased by $4.0 million primarily relating to a $3.5 million increase in interest expense and the prior year favorable change in interest rate swap value of $0.5 million. These decreases to net income were offset by a $3.1 million decrease in income tax expense. Similarly, net income attributable to NTELOS Holdings Corp. decreased $9.4 million, or 27.1%, from the six months ended June 30, 2009 due to the $5.7 million decrease in operating income, an increase in other expenses (net of other income) of $9.7 million primarily relating to an $8.3 million increase in interest expense and the prior year favorable change in interest rate swap value of $1.4 million. These decreases to net income were offset by a $6.2 million decrease in income tax expense from the comparative six-month period.
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