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MetroPCS Communications, Inc.(PCS)

 
123Jump Rating: - Short-Term Growth   Underwriters: Bear Stearns & Co. Inc.
      Banc of America Sec. LLC
Status: Priced   Merrill Lynch & Co.
 
Address: 8144 Walnut Hill Lane, Suite 800
FiledDate: 01/04/2007
  Dallas,
   
  TX 75231
Filed Price Range ($): $19.00-21.00
       
Telephone: 214-265-2550 Filed Offer Amount ($ Million): $120.75
       
Fax: Shares Offered (Millions): 50
       
Websites: www.metropcs.com Shares Outstanding (Millions): 346.28
       
Management: Roger Linquist, CEO
IPO Date: 04/18/2007
     
  Final Offer Price ($): $23.00
       
Industry: Telecom. Services Final Offer Size (Millions of Shares): 50.00
       
Employees: 1,860 Final Offer Amount ($ Million): $1,150.00
       
Competitors: Cingular Wireless
S-1 Forms:
  Verizon Wireless
   
   
       
     
     
     
       
 
- Avoid        - Value Gap        - Short-Term Growth        - Long-Term Growth        - Long-Term Value

Company Links
Corporate / History Profile Executives Products Services
Major Stock Holders   (Prior To Offering)

Name

Class A
Arthur C. Patterson 11.70%
C. Kevin Landry 13.24%
James N. Perry, Jr 13.20%
Madison Dearborn Capital Partners IV 13.20%
TA Associates 13.24%

Company Strategy
The Company offers wireless broadband personal communication services, or PCS, on a no long-term contract, flat rate, unlimited usage basis in selected major metropolitan markets in the United States.

Product/Services Portfolio
The Company provides wireless broadband PCS services. All service plans are \\\\\\\\\\\\\\\"paid-in-advance\\\\\\\\\\\\\\\" and do not require a long-term contract.

The Company’s data services include:

- services provided through the Binary Runtime Environment for Wireless, or BREW, platform, including ringtones, games and content applications;

- text messaging services (domestic and international), which allow the customer to send and receive alphanumeric messages that the handset can receive, store and display on demand;

- multimedia messaging services, which allow the customer to send and receive messages containing photographs; and

- mobile Internet browsing.

The Company offers other custom calling features, including caller ID, call waiting, three-way calling, distinctive ringtones, ring back tones and voicemail.

The Company sells a variety of handsets manufactured by nationally recognized handset manufacturers for use on its network, including models that provide color screens, camera phones and other features facilitating digital data. All of the handsets the Company offers are CDMA 1XRTT compliant and are capable of providing the location data mandated by the FCC\\\\\\\\\\\\\\\'s wireless E-911 rules and regulations.

Investment Analysis
Service revenues increased $285.0 million, or 45%, to $916.2 million for the nine months ended September 30, 2006 from $631.2 million for the nine months ended September 30, 2005.

Equipment revenues increased $58.6 million, or 49%, to $177.6 million for the nine months ended September 30, 2006 from $119.0 million for the nine months ended September 30, 2005.

Cost of service increased $111.6 million, or 55%, to $313.5 million for the nine months ended September 30, 2006 from $201.9 million for the nine months ended September 30, 2005.

Cost of equipment increased $120.4 million, or 57%, to $330.9 million for the nine months ended September 30, 2006 from $210.5 million for the nine months ended September 30, 2005.

Depreciation and amortization expense increased $34.3 million, or 55%, to $96.2 million for the nine months ended September 30, 2006 from $61.9 million for the nine months ended September 30, 2005.

Interest expense increased $26.5 million, or 65%, to $67.4 million for the nine months ended September 30, 2006 from $40.9 million for the nine months ended September 30, 2005.

Income Data (Thousand $ Except EPS)
Year Revenues Costs Oper Income Taxes Net Income EPS
2001 0.00 29,626 -29,626 0.00 -45,180 -.72
2002 125,595 -38,400 163,995 0.00 139,067 1.13
2003 451,109 409,936 41,173 -16,179 15,258 -0.10
2004 748,250 620,492 127,758 -47,000 64,890 0.55
2005 1,038,428 616,251 422,177 -127,425 198,677 2.12
2006 1,093,771 923,279 170,492 -47,245 70,625 0.57
*As of period ended September 30, 2006

Balance Sheet Data (Thousand $)

Year

Cash Acct Recv. Inventory Total Cur Assets Total Cur Liability PPE Total Assets LT Debt SH Equity
2004 22,477 9,101 33,717 156,558 163,020 636,368 965,396 170,689 125,434
2005 112,709 16,028 39,431 612,102 235,617 831,490 2,158,981 902,864 367,906
2006 116,265 23,506 39,648 489,496 563,378 1,207,982 2,626,174 902,594 427,689
*As of period ended September 30, 2006

Cash Flow Summary (Thousand $)

Year

Net Cash-Ops Net Cash-Inv Net Cash-Fin Net Change
2003 112,605 -306,868 201,951 7,688
2004 150,379 -190,881 -5,433 -45,935
2005 283,216 -905,228 712,244 90,232
2006 284,688 -489,255 208,123 3,556
*As of period ended September 30, 2006
 

 


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