TRICOM Reports Third Quarter Results: 10 Consecutive Quarters Of Revenue And Ebitda Expansion - Company Financial Information

Cambridge Telcom Report, Oct 25, 1999

TRICOM (NYSE: TDR), Tuesday announced the results of operations for the third quarter ended September 30, 1999, marking the Company's tenth consecutive quarter of revenue and cash flow expansion.

Operating Highlights:

-- OPERATING DATA: Local access lines grew by 57.9% to 113,115 at September 30, 1999 from 71,647 at September 30, 1998. Cellular subscribers increased by 78.5% to 158,850 at September 30, 1999 from 88,990 at September 30, 1998. International long distance minutes increased 53.8% to 88.1 million minutes in the third quarter of 1999 from 57.3 million minutes in the same quarter of 1998.

-- OPERATING REVENUES for the third quarter of 1999 increased 37.8% to a record US$ 45.0 million from US$ 32.6 million in the corresponding 1998 quarter.

-- OPERATING INCOME increased by 59.5% to a record US$ 12.3 million in the third quarter of 1999 from US$ 7.7 million in the third quarter of 1998.

-- NET EARNINGS for the third quarter of 1999 grew 9.0% to US$ 5.7 million, or US$ 0.23 cents per share, from US$ 5.2 million, or US$ 0.22 cents per share during the third quarter of 1998. The total number of shares outstanding at September 30, 1999 was 24,844,544 compared to a weighted average number of shares outstanding of 22,311,211 at September 30, 1998.

-- EBITDA increased 42.8% to a record US$ 20.4 million in the third quarter of 1999 from US$ 14.3 million in the third quarter of 1998.

For the nine months ended September 30, 1999, TRICOM reported a 33.6% increase in operating revenues to US$ 120.7 million from US$ 90.3 million for the first nine months of 1998. During the same nine month period, net earnings increased by 27.9% to US$ 15.6 million for the first nine months of 1999 from US$ 12.2 million for the first nine months of 1998. EBITDA grew by 37.9% to US$ 53.3 million for the first nine months of 1999 from US$ 38.6 million for the same period of 1998. Earnings per share increased to US$ 0.63 cents for the first nine months of 1999 from US$ 0.55 cents for the same period of 1998.

"TRICOM continued its solid performance record in the third quarter of 1999," said Arturo Pellerano, Chairman and CEO. "Consistent revenue growth and cash flow generation is a key benchmark for the entire organization and, thus, we are extremely proud to deliver our tenth consecutive quarter of record performance. The sustained growth in our competitive local exchange, cellular and international businesses demonstrate the effectiveness of our strategy of providing customized, value-added products and services to a diversified customer base in a market with still very substantial unmet demand. In addition, we continue to make strategic moves to position ourselves for strong future growth in both our international and domestic markets."

Operating revenues increased by 37.8% to US$ 45.0 million for the third quarter of 1999 from US$ 32.6 million for the third quarter of 1998. For the first nine months of 1999, operating revenues increased 33.6% to US$ 120.7 million from US$ 90.3 million during the first nine months of 1998. This growth was driven primarily by increased revenues from local exchange business, international revenues generated by long-standing carrier relations and TRICOM USA, the Company's New York based subsidiary, toll revenues, as well as cellular revenue growth.

Local service revenues grew 169.4% to US$ 9.4 million for the third quarter of 1999 from US$ 3.5 million for the third quarter of 1998. The increase is attributed to a higher number of local access lines in service and higher local service rates. For the first nine months of 1999 local service revenues increased 150.4% to US$ 23.0 million from US$ 9.2 million during the first nine months of 1998. Average revenue per local service subscriber (ARPU's) increased by 35.4% to US$ 38.69 during the third quarter of 1999 from US$ 28.58 during the third quarter of 1998, primarily as a result of local service rate increases implemented throughout the year. The Company added 10,193 and 32,499 net local access lines during the third quarter and first nine months of 1999, respectively, compared to 11,228 and 28,452 net local access lines added during the same periods of 1998.

Cellular revenues increased by 24.8% to US$ 6.8 million during the third quarter of 1999 from US$ 5.4 million during the third quarter of 1998, as a result of a greater number of cellular subscribers. For the first nine months of 1999, cellular revenues increased 26.4% to US$ 18.6 million from US$ 14.7 million during the first nine months of 1998. Cellular ARPU's remained stable on a sequential basis as a result of positive post-paid PCS growth during the third quarter of 1999. The Company added 16,950 and 50,318 net cellular subscribers during the third quarter and first nine months of 1999, respectively, compared to the 12,895 and 47,883 net cellular subscribers acquired during the same periods of 1998. Airtime minutes increased by 41.1% to 34.6 million minutes in the third quarter of 1999 from 24.5 million minutes in the third quarter of 1998.