Filed by Alamosa Holdings, Inc. pursuant to Rule 425 under the Securities Act of 1933, as amended Subject Company: AirGate PCS, Inc. Exchange Act File Number of Subject Company: 000-27455 #### The following presentation was made by Alamosa Holdings, Inc. on January 11, 2005:
David E. Sharbutt
Chairman & Chief Executive Officer
15th
Annual Global Entertainment, Media &
Telecommunications Conference
January 9-12, 2005
Scottsdale, Arizona
Safe Harbor Provisions
This
document contains forward-looking statements within the meaning of the Private
Securities Litigation
Reform Act of 1995. Such statements include, but are
not limited to, (1) statements about the benefits of the
proposed merger
between Alamosa Holdings, Inc. ("Alamosa") and AirGate PCS, Inc.
("AirGate"), including
future financial and operating results;
(2) statements with respect to Alamosa's plans, objectives,
expectations
and intentions and other statements that are not historical facts; and (3)
other statements
identified by words such as "believes," "expects,"
"anticipates," "estimates," "intends," "plans," "targets,"
"projects" and
similar expressions. Such statements are based upon the current beliefs and
expectations of
Alamosa's and AirGate's management and are subject to
significant risks and uncertainties. Actual results
may differ from those
set forth in the forward-looking statements.
The
following factors, among others, could cause actual results to differ from
those set forth in the forward-
looking statements: (1) the businesses of
Alamosa and AirGate may not be integrated successfully or such
integration
may be more difficult, time-consuming or costly than expected; (2) expected
combination
benefits from the Alamosa/AirGate transaction may not be fully
realized or realized within the expected time
frame; (3) the failure of
AirGate and Alamosa stockholders to approve the merger and/or the failure to
obtain
approvals from regulators or other groups; (4) disruption from the
merger making it more difficult to
maintain relationships with clients,
employees or suppliers; (5) Alamosa's and AirGate's dependence on
their
affiliation with Sprint; (6) shifts in populations or network focus; (7)
changes or advances in
technology; (8) changes in Sprint's national service
plans or fee structure with Alamosa or AirGate; (9)
change in population;
(10) difficulties in network construction; (11) increased competition in
Alamosa's and
AirGate's markets; and (12) adverse changes in financial
position, condition or results of operations.
Additional factors that could
cause Alamosa's and AirGate's results to differ materially from those
described in the forward-looking statements can be found in the 2004 Annual
Report on Form 10-K of
AirGate and in the 2003 Annual Report on Form 10-K
and in the Quarterly Reports on Form 10-Q of Alamosa
filed with the
Securities and Exchange Commission (the "Commission") and available at the
Commission's
internet site (http://www.sec.gov). The forward-looking
statements in this document speak only as of the
date of the document, and
Alamosa and AirGate assume no obligation to update the forward-looking
statements or to update the reasons why actual results could differ from
those contained in the forward-
looking statements.
Safe Harbor Provisions (continued)
On December
22, 2004, Alamosa filed a registration statement with the Commission containing
Alamosa's
and AirGate's preliminary joint proxy statement/prospectus
regarding the proposed merger with AirGate.
Stockholders are urged to read
the Preliminary joint proxy statement/prospectus regarding the proposed
transaction, And the definitive joint proxy statement/prospectus when it
becomes available Because it
contains, or will contain, important
information. Stockholders will
be able to
obtain a free copy of the joint proxy statement/prospectus, as well as other
filings containing
information about Alamosa and AirGate, without charge,
at the Securities and Exchange Commission's
internet site
(http://www.sec.gov). Copies of the joint proxy statement/prospectus and the
filings with the
Securities and Exchange Commission that will be
incorporated by reference in the joint proxy
statement/prospectus can also
be obtained without charge, when they become available, by directing a
request to Alamosa Holdings, Inc., 5225 S. Loop 289, Lubbock, Texas 79424,
Attention: Jon Drake (806-722-
1100); or AirGate PCS, Inc., Harris Tower,
233 Peachtree Street, N.E. Suite 1700, Atlanta, Georgia 30303,
Attention:
Bill Loughman (404-525-7272).
The
respective directors and executive officers of Alamosa and AirGate and other
persons may be deemed
to be participants in the solicitation of proxies in
respect of the proposed merger. Information regarding
Alamosa's directors
and executive officers is available in the proxy statement filed with the
Securities and
Exchange Commission by Alamosa on April 23, 2004, and
information regarding
AirGate's
directors and executive officers is available in the proxy statement filed with
the Securities and
Exchange Commission by AirGate on March 5, 2004. Other
information regarding the participants in the
proxy solicitation and a
description of their direct and indirect interests, by security holdings or
otherwise,
are contained in the joint proxy statement/prospectus filed by
Alamosa with the Securities and Exchange
Commission on December 22, 2004,
and other relevant materials to be filed with the Securities and
Exchange
Commission when they become available.
Investment
Highlights-
Why Wireless/Why Alamosa?
4
Wireless Industry
Current
industry trends strong;
Future industry trends also appear
strong
Execution
key to performance and
cash flow
Attractive assets
Critical
footprint to Sprint &
attractive markets
Favorable Affiliation Agreements
Experienced management team
Strong financial position
Strong capital structure
Development of cash flow
Profitable growth strategy
Consolidation is now a Reality
15.8 million POPs
12.3 million covered POPs
15 states
74 cities
915,000 subscribers *
Less penetrated
Less competition
Favorable roaming position
Attractive demographics
Attractive Markets
Alamosas Footprint
Note: * As of December 31, 2004
5
Critical Footprint to Sprint
Experienced Management Team
Officer
Management
Experience
Years of
Experience
David Sharbutt
Chairman & CEO
SBC, telecom
consulting
32
Kendall Cowan
CFO
Coopers & Lybrand,
public accounting
30
Steven Richardson
COO
Cingular, SBC, PacBell
28
Anthony Sabatino
CTO
Sprint PCS
(national
RF director)
26
Loyd Rinehart
SVP
Corp. Fin
Various senior finance
positions
30
Margaret Couch
CIO (Integration)
Human resources
consulting
27
6
First Sprint PCS
affiliate to achieve
positive cash flow
Successfully
transformed
capital structure
First to
renegotiate Sprint
agreements
Successfully
integrated three
acquisitions
Strong Financial Position
Cash & Investments of $160 million
Cash flow positive
No debt
principal payments until
2009
Cash flow
increasing with subscriber
growth and roaming revenue
Net debt declining
7
Strong
Third Quarter 2004 Results-
Executing
with Excellence
Stable
ARPU** (w/o Roaming)
$57
Roaming
Revenue increased
14% (average $24 per
subscriber)
Stable
Cash Cost Per User
(CCPU)** (w/ Roaming) $45
Lower Cost
Per Gross
Addition (CPGA)** $351
Stable
average monthly
customer churn-2.4%
Better than
expected level of net
customer additions-53,000
Increased
Sprint PCS Vision
attachment rate (Q3 04) ~ 54%
Efficient
fixed asset
expenditures-$22.8 million
8
NOTES:
** See appendix for reconciliation of Adjusted EBITDA, ARPU/CCPU
Rapid Growth in Adjusted EBITDA*
NOTES:
1 Excludes one-time access revenue adjustment of $5.4 million.
* See appendix for reconciliation of adjusted EBITDA
9
Improving
Profit Profile
Incremental
Change (Svc. Revenue & Adj. EBITDA** (03-04))
10
20%
Margin
23%
Margin
43%
Margin
NOTES:
** See appendix for reconciliation of Adjusted EBITDA, ARPU/CCPU
Profitable Growth Strategy
Execute the Plan
Growth with right economics
Drive scale through business
Enhance
Value of
Customers
Increased distribution
Increased 2 year contracts
Expand Network Prudently
Roaming opportunities
In-market expansion
11
Service Revenues ($ mm)
Prime
Subscriber %
Monthly Churn %
Subscribers
(000s)
(at
period end)
2002
2003
2002
2003
2003 Avg
2002 Avg
Execute
The Plan-
Growth
with Right Economics
2004
2004
12
2004 Avg
Execute the Plan-
Drive Scale through the Business
Per Subscriber Economics
NOTES:
1
Excludes one-time access revenue adjustment of $5.4 million.
2
Customer retention costs, reclassified to CCPU starting in 2002. Impact on periods prior to 2002 was immaterial.
3
See appendix for reconciliation/calculation of ARPU/CCPU
2001
2002
2003
2
2004
13
Historical Roaming Trends
Numerous NPV-positive roaming sites identified
Fixed voice
roaming rate with Sprint PCS $0.058 per minute
through 2006
Favorable Sprint PCS travel ratio (1.15 to 1.0 in Q3 04)
Additional future revenue from Qwest, Virgin Mobile and AT&T
2003
14
$8
$11
$9
$9
$10
$12
$10
Expand Network Coverage Prudently-
Profitable Roaming Position
$9.5
15
Expand
the Network Prudently
Expected
Alamosa PCS Coverage 2004-2005
Wireless
Consolidation-
It is Now a Reality!
16
National
Affiliates
46 Million Customers
97 of Top 100
Markets
35 Million Customers
$34 Billion
in LTM
Revenues
23 Million
Lic.
Pops/19 Million
Covered Pops
1.2MM Customers
Sprint-Nextel
Overlap
of Nextel/Nextel Partners with
Alamosa (including AirGate)
17
Creation
of the Premier
Sprint Affiliate
Sector leading combination
Creation of the premier Sprint Affiliate
Over 23
million total POPs, 18 million covered POPs and 1.25 million
subscribers
Pro forma size should appeal to a broader investor base
Alamosa is the strongest Sprint Affiliate
Consistently strong operating results - strongest balance sheet
Enables
combined company to further rationalize pro forma capital
structure to the
benefit of each companies shareholders
Management
team with a proven track record of successful integrations of
acquisitions
Integrated over $690 million1 of acquisitions since 2000
Earnings power better than sum of parts
Estimated annual operational synergies of approximately $10.0 million
Additional scale benefits
Lower cost of capital
Platform for future organic and external growth
Pro forma
company will be far and away the largest Sprint Affiliate on all
metrics
Enhances relationship with Sprint
Note:
1 Based on Alamosas stock price prior to the announcement of each transaction
18
Merger
Beneficial to
All Shareholders
AirGate Shareholders
Attractive valuation
Immediate increase in liquidity
Opportunity
to receive a portion
of proceeds in cash
Strong
Alamosa currency
offered
Most
liquid stock in Sprint
Affiliate sector
Largest
market capitalization
of the Sprint Affiliates
Best
trading fundamentals of
any Sprint Affiliate
Significant
coverage from
Wall Street research analysts
Alamosa Shareholders
Pro forma
Company is better
positioned to grow and create
shareholder value
Accretive on all key metrics
POPs,
Subscribers,
EBITDA, FCF
Positions
Alamosa as the
sector consolidator
Proven
track record of value
creation through acquisitions
Roberts
Wireless
Communications
Washington
Oregon
Wireless
Southwest PCS
19
Strong Pro Forma Footprint
20
The pro
forma Company will be the premier and largest Sprint
Affiliate
Positioned for Sector Leadership
Industry leading combination with significantly increased scale
Net Adds (000s) Q3 04
Covered POPs (mm)
Total POPs (mm)
EOP Subscribers (000s) Q3 04
Source: Alamosas 2004 reported data and Company Guidance, Wall Street research and publicly reported data from AirGate PCS.
21
1,251
866
449
385
383
241
231
185
0
200
400
600
800
1,000
1,200
1,400
APCS +
PCSA
APCS
UNWR
PCSA
UPCS
IPCX
IWO
HZPS
62
53
18
9
8
7
5
(6)
-10
10
30
50
70
APCS +
PCSA
APCS
UPCS
PCSA
IPCX
UNWR
IWO
HZPS
23.2
15.8
11.3
10.0
7.8
7.5
7.4
6.3
0.0
4.0
8.0
12.0
16.0
20.0
24.0
APCS +
PCSA
APCS
UNWR
UPCS
IPCX
HZPS
PCSA
IWO
18.4
12.3
8.1
7.9
6.1
5.9
5.7
4.8
0.0
4.0
8.0
12.0
16.0
20.0
APCS +
PCSA
APCS
UNWR
UPCS
PCSA
IPCX
HZPS
IWO
Positioned for Sector Leadership
Strong pro forma cash flow generation
Does not reflect pro forma impact of estimated annual synergies
LTM EBITDA (mm)
CY 2004 EBITDA (mm)
LTM EBITDA Capex (mm)
CY 2004 EBITDA Capex (mm)
Source: Alamosas 2004 reported data and Company Guidance, Wall Street research and publicly reported data from AirGate PCS.
22
$136
$90
$48
$46
$44
$17
$0
$50
$100
$150
APCS +
PCSA
APCS
UNWR
PCSA
UPCS
IPCX
$133
$86
$60
$47
$31
$24
$0
$50
$100
$150
APCS +
PCSA
APCS
UNWR
PCSA
UPCS
IPCX
$227
$166
$79
$63
$62
$36
$28
$0
$50
$100
$150
$200
$250
APCS +
PCSA
APCS
UNWR
UPCS
PCSA¹
IPCX
HZPS²
Notes:
1
Excludes $11.7 million special settlement credit from the resolution of previous disputes with Sprint
2
Excludes effects of operation in NTELOS markets
$247
$180
$76
$71
$67
$32
$27
$0
$50
$100
$150
$200
$250
APCS +
PCSA
APCS
UNWR
UPCS
PCSA
IPCX
HZPS²
Transaction Terms
Q1 2005
Expected Closing:
Alamosa and AirGate shareholders
Sprint
Hart-Scott-Rodino antitrust approval
Required Approvals:
$630
million, based on closing prices of Alamosa &
AirGate on December 7,
2004
Includes
assumption of approximately $238 million of net
debt
AirGate
shareholders can elect cash consideration if
desired
Based on
Alamosas trailing 10-day average price prior
to closing
Cash
consideration capped at $100 million subject to
proration
Restricted stock & options settled in cash
Election
period from mailing of proxy to day prior to
AirGate shareholder
meeting
Purchase Price:
Cash Election:
2.87 Alamosa shares per AirGate share
$33.01 per
AirGate share based on Alamosa closing price
of $11.50 on December 7,
2004
Consideration:
23
Implied Valuation
Assuming
100% stock consideration, AirGate shareholders will
own approximately
18.1%1 of the
pro forma company
Alamosa
would issue approximately 33.8 million shares2 to
AirGate shareholders
Implied valuation based on 12/7/04 Alamosa share price
Price per AirGate share of $33.01
Equity value of $392 million
Enterprise value of $630 million
Implied market multiples:
Enterprise value / Total POPs = $85
Enterprise value / Covered POPs = $103
Enterprise value / LTM EBITDA = 10.1x
Enterprise value / LTM EBITDA - Capex = 13.6x
Note:
1 Alamosas convertible preferred stock included on an as-converted basis
2
Restricted stock units will receive cash consideration and in-the-money options
outstanding will receive a cash payment equal to
the
excess of the per share
price over the exercise price
24
$94.0
$14.1
1
$79.9
LTM Capex
(mm)
$227.1
$61.5 1
$165.5
LTM EBITDA (mm)
$302.9
$91.5
$211.4
CY Q3 Total Revenue (mm)
Combined
AirGate
Alamosa
$63.0
$17.1 1
$45.9
CY Q3 EBITDA (mm)
$1,085.6
$336.1
$749.5
LTM Total Revenue (mm)
Financial:
62.3
9.3
53.0
CY Q3 Net Additions (000s)
6.8%
6.2%
7.0%
Penetration of Covered POPs
1,250,537
384,537
866,000
EOP Subscribers (9/30/04)
18.9
6.1
12.82
Covered POPs (mm)
23.2
7.4
15.8
Total POPs (mm)
Operating:
Historical
Operating &
Financial Highlights
Notes:
1 Excludes an approximately $10.9 million one time adjustment related to the settlement with Sprint
2 Based on 2004 Guidance from Alamosa
25
Pro Forma Capitalization
26
($ in millions)
$0.0
Max
9/30/2004
9/30/2004
Cash Scenario
Coupon
Maturity
Alamosa
AirGate
1
Adj.
Pro Forma
Cash & Equivalents
$159.6
$105.8
($123.1)
$142.4
Capital Lease
$0.9
-
$0.9
Senior Secured Floating Rate Notes
L+3.75
10/15/2011
-
$175.0
175.0
Senior Subordinated Secured Notes
9.375%
9/1/2009
-
159.0
159.0
Senior Notes
8.500%
1/31/2012
250.0
-
250.0
Senior Notes
11.000%
7/31/2010
250.9
-
250.9
Senior Notes
12.500%
2/1/2011
11.6
-
11.6
Senior Notes
13.625%
8/15/2011
2.3
-
2.3
Senior Discount Notes
12.000%
7/31/2009
211.8
-
211.8
Senior Discount Notes
12.875%
2/15/2010
6.1
-
6.1
Total Debt
$733.7
$334.0
$1,067.7
Senior Secured Debt
/ LTM EBITDA
0.0x
5.4x
1.5x
Total Debt
/ LTM EBITDA
4.4x
5.4x
4.7x
Net Debt
/ LTM EBITDA
3.5x
3.9x
4.1x
LTM EBITDA
2
$165.5
$61.5
$227.1
Source: S-4, 12/22/04
Note:
1 Pro forma for offering of $175 million Senior Secured Floating Rate notes.
Proceeds used to repay senior credit facility and redeem its existing 13.5% Senior Subordinated notes
2 Excludes $11.7 million special settlement credit from the resolution of previous disputes with Sprint
Accretive Transaction
The
transaction is EBITDA per share accretive to
Alamosas shareholders
17%
accretive to 2004 EBITDA per share on a pro
forma basis (all stock
consideration)
Pro forma for the impact of estimated annual synergies
Source: Alamosas 2004 data per Companys guidance. AirGates 2004 data per consensus Wall Street research
2004E EBITDA Accretion
Note:
1 Alamosas convertible preferred stock included on an as converted basis
Alamosa Pro Forma
Alamosa
Stock &
Stand Alone
All Stock
$100mm Cash
Pro Forma Shares Outstanding (mm)
153.3
187.1
178.4
EBITDA
2004E EBITDA (mm)
$180.0
$246.5
$246.5
Operating Synergies
-
10.0
10.0
Pro Forma 2004E EBITDA (mm)
$180.0
$256.5
$256.5
EBITDA / Share
1.17
1.37
1.44
2004 EBITDA Accretion per Share
-
17%
22%
27
2004 GUIDANCE
Full year
2004 Adjusted EBITDA* of approximately $180
million
Fixed asset additions of $90 million
Penetration
of Alamosa markets to be in the range of 7.1 to
7.4 percent by year-end
2004. Covered pops expected to be
approximately 12.8 million
Full year churn of 2.4% percent or lower
28
Summary
29
Wireless Industry
Current
industry trends strong;
Future industry trends also appear
strong
Execution
key to performance and
cash flow
Attractive assets
Critical
footprint to Sprint &
attractive markets
Favorable Affiliation Agreements
Experienced management team
Strong financial position
Strong capital structure
Development of cash flow
Profitable growth strategy
Consolidation is now a Reality
Appendix
Calculation of Adjusted EBITDA*
Adjusted
earnings before interest, taxes, depreciation and amortization (Adjusted
EBITDA) are defined as net loss plus taxes, net interest expense,
depreciation expense, amortization expense and other non-cash expense
items. Adjusted EBITDA is a measure used by the investment community in the
telecommunications industry for comparability and is not intended to
represent the results of our operations in accordance with GAAP.
30
Q3 2004
Q2 2004
Q1 2004
Q4 2003
Q3 2003
Q2 2003
Q1 2003
2002
2001
Net Income/Loss
$2,168
($10,706)
($12,548)
(8,142)
$
(17,510)
$
(18,663)
$
(30,531)
$
(403,349)
$
(147,423)
$
Income tax benefit
-
240
317
(2,235)
(5,446)
(4,480)
(5,768)
(67,086)
(80,441)
Net interest expense
18,844
18,731
18,067
20,780
26,332
25,702
26,152
99,404
70,066
Depreciation and amortization
25,886
25,523
27,384
27,959
28,235
27,419
26,882
105,121
94,722
Non-cash compensation
30
25
26
251
45
199
41
29
(916)
Gain (Loss) on derivative instruments
(1,200)
11,926
(12,672)
(2,858)
-
-
-
-
-
Impairment of goodwill
-
-
-
-
-
-
-
291,635
-
Impairment of property and equipment
172
2,604
306
1,558
291
34
360
1,194
-
Loss on debt extinguishment
-
-
13,101
-
-
-
-
5,472
Adjusted EBITDA
45,900
48,343
33,981
37,313
31,947
30,211
17,136
26,948
(58,520)
Provision for bad debts
3,489
2,179
1,935
2,351
1,100
3,500
6,500
40,285
17,490
Non-cash accretion of ARO
48
46
45
41
524
-
-
-
-
Debt exchange expenses
-
-
-
5,166
2,332
1,196
-
-
-
Non-cash interest items
6,525
6,277
6,273
7,728
10,123
9,898
9,653
36,773
32,022
Interest expense, net
(18,844)
(18,731)
(18,067)
(20,780)
(26,332)
(25,702)
(26,152)
(99,404)
(70,066)
Cash income taxes
(240)
(317)
-
-
-
-
-
-
Working capital changes
(10,362)
3,615
(3,653)
(11,928)
(4,923)
(2,525)
(3,015)
(31,179)
(34,681)
Cash flow from operating activities
26,756
$
41,489
$
20,197
$
19,891
$
14,771
$
16,578
$
4,122
$
(26,577)
$
(113,755)
$
Calculation of ARPU/CCPU
31
Q3 2004
Q2 2004
Q1 2004
Q4 2003
Q3 2003
Q2 2003
Q1 2003
2002
2001
Net Income/Loss
$2,168
($10,706)
($12,548)
(8,142)
$
(17,510)
$
(18,663)
$
(30,531)
$
(403,349)
$
(147,423)
$
Income tax benefit
-
240
317
(2,235)
(5,446)
(4,480)
(5,768)
(67,086)
(80,441)
Net interest expense
18,844
18,731
18,067
20,780
26,332
25,702
26,152
99,404
70,066
Depreciation and amortization
25,886
25,523
27,384
27,959
28,235
27,419
26,882
105,121
94,722
Non-cash compensation
30
25
26
251
45
199
41
29
(916)
Gain (Loss) on derivative instruments
(1,200)
11,926
(12,672)
(2,858)
-
-
-
-
-
Subscriber Revenue
143,623
$
133,569
$
124,746
$
117,157
$
116,665
$
114,550
$
104,024
$
391,927
$
231,145
$
Travel Revenues
59,106
51,705
43,153
42,816
41,126
35,040
31,790
139,843
99,213
Total Service Revenues
202,729
$
185,274
$
167,899
$
159,973
$
157,791
$
149,590
$
135,814
$
531,770
$
330,358
$
Average Subscribers
839,000
794,000
748,000
707,000
685,000
665,000
635,000
566,500
315,000
Average Revenue Per User (ARPU)
57
$
56
$
56
$
55
$
57
$
57
$
55
$
58
$
61
$
ARPU with Roaming
81
$
78
$
75
$
75
$
77
$
75
$
71
$
78
$
87
$
Costs
Cost of service and operations
99,250
91,062
$
86,216
$
74,303
$
83,313
$
80,282
$
79,317
$
343,468
$
237,843
$
Less: Roaming expense
(33,675)
(29,158)
(27,176)
(24,007)
(23,847)
(20,898)
(18,808)
(96,352)
(83,344)
General and administrative expenses
5,861
5,706
5,717
3,786
4,084
4,722
3,665
15,243
13,853
Debt exchange expenses
-
-
-
5,166
2,332
1,196
-
-
-
Upgrade costs in selling and marketing expenses
8,876
4,901
4,680
4,152
3,058
3,671
3,939
10,213
-
80,312
$
72,511
$
69,437
$
63,400
$
68,940
$
68,973
$
68,113
$
272,572
$
168,352
$
Average Subscribers
839,000
794,000
748,000
707,000
685,000
665,000
635,000
566,500
315,000
Cash Cost Per User (CCPU)
32
$
30
$
31
$
30
$
34
$
35
$
36
$
40
$
45
$
CCPU with Roaming
45
$
43
$
43
$
41
$
45
$
45
$
46
$
54
$
67
$
Calculation of CPGA
32
Q3 2004
Q2 2004
Q1 2004
Q4 2003
Q3 2003
Q2 2003
Q1 2003
2002
2001
Selling & Marketing Expenses
40,090
31,839
30,993
28,095
29,801
26,584
28,146
119,059
110,052
Less Upgrade costs in selling & marketing
(8,876)
(4,901)
(4,680)
(4,152)
(3,058)
(3,671)
(3,939)
(10,213)
-
Cost of Products Sold
20,265
16,379
19,783
19,495
14,913
12,399
12,844
50,974
53,911
Product Sales Revenue
(8,637)
(8,055)
(8,791)
(8,185)
(8,599)
(5,804)
(5,294)
(23,922)
(26,781)
Total Cost of Acquisition
42,842
35,262
37,305
35,253
33,057
29,508
31,757
135,898
137,182
Gross Activation
122,000
97,000
104,000
93,000
81,000
79,000
93,000
370,000
410,000
Cost Per Gross Activation (CPGA)
351
$
364
$
359
$
379
$
408
$
374
$
341
$
367
$
335
$
David E. Sharbutt
Chairman & Chief Executive Officer
15th
Annual Global Entertainment, Media &
Telecommunications Conference
January 9-12, 2005
Scottsdale, Arizona