SOURCE: Centennial Communications Corp.

January 04, 2007 07:00 ET

Centennial Communications Announces Fiscal Second-Quarter Results; U.S. Wireless Records 17 Percent Retail Revenue Growth on Solid Postpaid Subscriber Gain

WALL, NJ -- (MARKET WIRE) -- January 4, 2007 --

--  Fiscal second-quarter income from continuing operations of $0.01 per
    diluted share, compared to income of $0.09 per diluted share from
    continuing operations in the prior-year quarter (Results from continuing
    operations for all periods presented exclude Centennial Dominicana due to
    its classification as a discontinued operation)
    
--  Fiscal second-quarter consolidated adjusted operating income from
    continuing operations of $88.2 million, up 1 percent year-over-year from
    $87.7 million
    
--  Fiscal second-quarter consolidated revenue from continuing operations
    of $229.2 million, up 6 percent year-over-year from $216.0 million
    
Centennial Communications Corp. (NASDAQ: CYCL) ("Centennial") today reported income from continuing operations of $1.0 million, or $0.01 per diluted share, for the fiscal second quarter of 2007 as compared to income from continuing operations of $9.9 million, or $0.09 per diluted share, in the fiscal second quarter of 2006. Results from continuing operations for all periods presented exclude the results of Centennial's Dominican Republic operations ("Centennial Dominicana") due to its classification as a discontinued operation. The fiscal second quarter of 2007 included $2.9 million of stock-based compensation expense due to the Company's adoption of SFAS 123R (expensing for stock options). Consolidated adjusted operating income (AOI)(1) from continuing operations for the fiscal second quarter was $88.2 million, as compared to $87.7 million for the prior-year quarter.

"We have a strong history of growing retail cash flow in each of our businesses, and continue to take important steps to reassert our market leadership in both the U.S. and Puerto Rico," said Michael J. Small, Centennial's chief executive officer. "We operate great networks, have recently enhanced our direct distribution channels and continue to showcase the continuity and power of our brand. Our successful unlimited offering in Puerto Rico builds on our heritage of bringing simplicity and value to our customers."

Centennial reported fiscal second-quarter consolidated revenue from continuing operations of $229.2 million, which included $121.5 million from U.S. wireless and $107.7 million from Puerto Rico operations. Consolidated revenue from continuing operations grew 6 percent versus the fiscal second quarter of 2006. The Company ended the quarter with 1,058,700 total wireless subscribers, which compares to 992,200 for the year-ago quarter and 1,041,500 for the previous quarter ended August 31, 2006. The Company reported 387,500 total access lines and equivalents at the end of the fiscal second quarter, which compares to 324,100 for the year-ago quarter.

OTHER HIGHLIGHTS

    
--  On November 6, 2006, the Company announced the launch of its unlimited
    wireless service in Puerto Rico, a bold move that reinforces the Company's
    leadership on the island by bringing unprecedented simplicity and value to
    its customers. This flagship service offering builds on Centennial's 10th
    anniversary marketing campaign, leveraging the strength of a superior
    wireless network and the largest direct-distribution channel in Puerto Rico
    that includes nearly 90 retail locations.
    
--  On November 21, 2006, the Company concluded its review of strategic
    and operational alternatives for its Dominican Republic operations and
    entered into a definitive agreement to sell Centennial Dominicana to
    Trilogy International Partners for approximately $80 million in cash.  The
    transaction is expected to close towards the end of the first calendar
    quarter of 2007, subject to the satisfaction of customary closing
    conditions including regulatory approval for the transfer of Centennial
    Dominicana's telecommunications concession.
    
--  On December 15, 2006, Centennial redeemed $20 million aggregate
    principal amount of its $145 million outstanding 10-3/4 percent senior
    subordinated notes due December 15, 2008. The redemption was completed at
    face value with no prepayment penalties.
    


CENTENNIAL SEGMENT HIGHLIGHTS (All segment highlights reflect results from continuing operations)

U.S. Wireless Operations

--  Revenue was $121.5 million, a 10 percent increase from last year's
    second quarter.  Retail revenue (total revenue excluding roaming revenue)
    increased 17 percent from the year-ago period primarily driven by a 9
    percent increase in total retail subscribers, and supported by strong
    feature, data and access revenue.  Roaming revenue decreased 21 percent
    from the year-ago quarter as a result of a 20 percent decline in total
    roaming traffic.
    
--  Average revenue per user (ARPU) was $67 during the fiscal second
    quarter, a 2 percent year-over-year increase.  ARPU included approximately
    $2.61 of data revenue per user, which grew 9 percent from the fiscal first
    quarter.
    
--  AOI was $42.0 million, a 5 percent year-over-year increase,
    representing an AOI margin of 35 percent.  AOI benefited from strong growth
    in retail revenue, partially offset by a decline in roaming revenue.
    
--  U.S. wireless ended the quarter with 666,400 total subscribers
    including 51,300 wholesale subscribers.  This compares to 614,100 for the
    prior-year quarter including 48,200 wholesale subscribers and to 654,900
    for the previous quarter ended August 31, 2006 including 51,300 wholesale
    subscribers.  At the end of the fiscal second quarter, approximately 86
    percent of U.S. retail wireless subscribers were on GSM calling plans.
    Postpaid subscribers increased 9,000 from the fiscal first quarter of 2007,
    supported by stable postpaid churn of 1.9 percent.
    
--  Capital expenditures were $11.1 million for the fiscal second quarter.
    

Puerto Rico Wireless Operations

--  Revenue was $78.9 million, unchanged from the prior-year second
    quarter.
    
--  Postpaid ARPU in Puerto Rico remained stable at $68 when compared to
    the fiscal first quarter.  ARPU included approximately $4.31 of data
    revenue per user, which grew 23 percent from the fiscal first quarter.
    
--  AOI totaled $28.2 million, a 12 percent year-over-year decrease,
    representing an AOI margin of 36 percent.  AOI was unfavorably impacted by
    lower year-over-year ARPU and increased advertising expense related to the
    Company's launch of its unlimited wireless offering.
    
--  Puerto Rico wireless ended the quarter with 392,300 subscribers, which
    compares to 378,100 for the prior-year quarter and to 386,600 for the
    previous quarter ended August 31, 2006.  Postpaid subscribers increased
    6,000 from the fiscal first quarter of 2007 and postpaid churn was 2.8
    percent.
    
--  Capital expenditures were $7.6 million for the fiscal second quarter.
    
Puerto Rico Broadband Operations
    
--  Revenue was $31.8 million, an 11 percent year-over-year increase.  AOI
    was $17.9 million, a 16 percent increase from the year-ago period,
    representing an AOI margin of 56 percent.  Revenue and AOI increased
    primarily due to solid access line growth.
    
--  Switched access lines totaled approximately 71,400 at the end of the
    fiscal second quarter, an increase of 5,800 lines, or 9 percent from the
    prior-year quarter.  Dedicated access line equivalents were 316,100 at the
    end of the fiscal second quarter, a 22 percent year-over-year increase.
    
--  Capital expenditures were $4.7 million for the fiscal second quarter.
    
FISCAL 2007 OUTLOOK
--  The Company has updated its fiscal 2007 outlook for all periods
    presented to exclude Centennial Dominicana due to its classification as a
    discontinued operation.  Centennial expects consolidated AOI from
    continuing operations between $360 million and $370 million for fiscal
    2007, excluding stock-based compensation expense due to the Company's
    adoption of SFAS 123R (expensing for stock options).  Consolidated AOI from
    continuing operations for fiscal 2006 was $351.0 million.  The Company has
    not included a reconciliation of projected AOI because projections for some
    components of this reconciliation are not possible to forecast at this
    time.
    
--  The Company expects U.S. wireless roaming revenue to decline between
    $15 million and $20 million during fiscal 2007.  U.S. wireless roaming
    revenue for fiscal 2006 was $79.4 million.
    
--  The Company expects the sum of consolidated capital expenditures and
    spectrum acquisition costs from continuing operations will be approximately
    $130 million for fiscal 2007.
    

                                                        FY2007 Continuing
                      FY2006        FY2007 Previous    Operations Outlook
                    Continuing    Outlook (including       (excluding
                    Operations        Centennial           Centennial
                      Results         Dominicana)          Dominicana)
                  --------------- -------------------- --------------------
Consolidated
 Adjusted
 Operating Income                     $365 million -       $360 million -
 (AOI)            $ 351.0 million     $385 million         $370 million
                  --------------- -------------------- --------------------
U.S. Wireless                        Approximately          $15 million -
 Roaming Revenue    $79.4 million  $20 million decline $ 20 million decline
                  --------------- -------------------- --------------------
Consolidated
 Capital                             $140 million          $130 million
 Expenditures                      including spectrum   including spectrum
 (Capex)           $134.4 million   acquisition costs    acquisition costs
                  --------------- -------------------- --------------------
DEFINITIONS AND RECONCILIATION

(1) Adjusted operating income is defined as net (loss) income before loss from discontinued operations, income from equity investments, minority interest in income of subsidiaries, income tax benefit (expense), interest expense, net, loss on disposition of assets, strategic alternatives/recapitalization costs, stock-based compensation expense and depreciation and amortization. Please refer to the schedule below for a reconciliation of adjusted operating income to consolidated net income and the Investor Relations website at www.ir.centennialwireless.com for a discussion and reconciliation of this and other non-GAAP financial measures.

Reconciliation of adjusted operating income to consolidated net income:

                                 Three Months Ended     Six Months Ended
                                     November 30,          November 30,
                                --------------------  --------------------
                                   2006       2005       2006       2005
                                ---------  ---------  ---------  ---------
Adjusted operating income       $  88,235  $  87,740  $ 180,388  $ 177,726
Depreciation and amortization     (32,695)   (28,528)   (64,913)   (58,078)
Stock-based compensation
 expense                           (2,869)         -     (4,818)         -
Strategic
 alternatives/recapitalization
 costs                                 (2)         -       (285)         -
Loss on disposition of assets         (88)      (473)      (293)      (388)
                                ---------  ---------  ---------  ---------
Operating income                   52,581     58,739    110,079    119,260
Interest expense, net             (51,689)   (34,489)  (102,403)   (68,492)
Income tax benefit (expense)           48    (14,430)    (7,033)   (26,267)
Minority interest in income of
 subsidiaries                        (233)      (227)      (441)      (439)
Income from equity investments        293        337        546        445
Loss from discontinued
 operations                       (34,352)    (1,687)   (36,259)    (1,589)
                                ---------  ---------  ---------  ---------
Net (loss) income               $ (33,352) $   8,243  $ (35,511) $  22,918
                                =========  =========  =========  =========
CONFERENCE CALL INFORMATION

As previously announced, the Company will host a conference call to discuss results at 8:30 a.m. ET on Thursday, January 4, 2007. Callers can dial (800) 819-9193 to access the call. The conference call will also be simultaneously webcast on Centennial's Investor Relations website at www.ir.centennialwireless.com. A replay of the conference call will also be available beginning Thursday, January 4 through Thursday, January 18 at both Centennial's Investor Relations website and www.streetevents.com. Callers can also dial (888) 203-1112, Access Code 1564657 to access an audio replay of the conference call.

ABOUT CENTENNIAL

Centennial Communications (NASDAQ: CYCL), based in Wall, NJ, is a leading provider of regional wireless and integrated communications services in the United States and the Puerto Rico with approximately 1.1 million wireless subscribers and 387,500 access lines and equivalents. The U.S. business owns and operates wireless networks in the Midwest and Southeast covering parts of six states. Centennial's Puerto Rico business owns and operates wireless networks in Puerto Rico and the U.S. Virgin Islands and provides facilities-based integrated voice, data and Internet solutions. Welsh, Carson, Anderson & Stowe and an affiliate of the Blackstone Group are controlling shareholders of Centennial. For more information regarding Centennial, please visit our websites http://www.centennialwireless.com/, http://www.centennialpr.com/ and http://www.centennialrd.com/.

SAFE HARBOR PROVISION

Cautionary statement for purposes of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995: Information in this release that involves Centennial's expectations, beliefs, hopes, plans, projections, estimates, intentions or strategies regarding the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include, but are not limited to: the effects of vigorous competition in our markets, which may make it difficult for us to attract and retain customers and to grow our customer base and revenue and which may increase churn, which could reduce our revenue and increase our costs; the fact that many of our competitors are larger than we are, have greater financial resources than we do, are less leveraged than we are, have more extensive coverage areas than we do, and may offer less expensive and more technologically advanced products and services than we do; changes and developments in technology, including our ability to upgrade our networks to remain competitive and our ability to anticipate and react to frequent and significant technological changes which may render certain technologies used by us obsolete; our substantial debt obligations, including restrictive covenants, which place limitations on how we conduct business; our ability to attract subscribers in our newly launched markets in Grand Rapids and Lansing, Michigan; market prices for the products and services we offer may continue to decline in the future; the effect of changes in the level of support provided to us by the Universal Service Fund; the effects of consolidation in the telecommunications industry; general economic, business, political and social conditions in the areas in which we operate, including the effects of world events, terrorism, hurricanes, tornadoes, wind storms and other natural disasters; our access to the latest technology handsets in a timeframe and at a cost similar to our competitors; the effect on our business of wireless local number portability, which allows customers to keep their wireless phone numbers when switching between service providers; our ability to successfully deploy and deliver wireless data services to our customers, including next generation 3G technology; our ability to generate cash and the availability and cost of additional capital to fund our operations and our significant planned capital expenditures, including the need to refinance or amend existing indebtedness; our dependence on roaming agreements for a significant portion of our wireless revenue and the expected decline in roaming revenue over the long term; our dependence on roaming agreements for our ability to offer our wireless customers competitively priced regional and nationwide rate plans that include areas for which we do not own wireless licenses; our ability to attract and retain qualified personnel; the effects of governmental regulation of the telecommunications industry; fluctuations in currency values related to our Dominican Republic operations; our ability to acquire, and the cost of acquiring, additional spectrum in our markets to support growth and advanced technologies; our ability to manage, implement and monitor billing and operational support systems; the results of litigation filed or which may be filed against us, including litigation relating to wireless billing, using wireless telephones while operating an automobile or possible health effects of radio frequency transmission; the relative liquidity and corresponding volatility of our common stock and our ability to raise future equity capital; and the control of us retained by our majority stockholders and anti-takeover provisions and other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission. All forward-looking statements included in this release are based upon information available to Centennial as of the date of the release, and we assume no obligation to update or revise any such forward-looking statements.

                      CENTENNIAL COMMUNICATIONS CORP.
                  FINANCIAL DATA AND OPERATING STATISTICS
                            November 30, 2006
                   ($000's, except per subscriber data)



                              Three Months Ended       Six Months Ended
                            ----------------------  ----------------------
                              Nov-06      Nov-05      Nov-06      Nov-05
                            ----------  ----------  ----------  ----------

U.S. WIRELESS

Postpaid Wireless Subscribers  594,800     546,900     594,800     546,900
Prepaid Wireless Subscribers    20,300      19,000      20,300      19,000
                            ----------  ----------  ----------  ----------
Retail Subscribers             615,100     565,900     615,100     565,900
Wholesale Subscribers           51,300      48,200      51,300      48,200
                            ----------  ----------  ----------  ----------
Total Wireless Subscribers     666,400     614,100     666,400     614,100
Total Wireless Gross Adds       51,000      59,300      96,200     106,400
Net Gain - Retail
 Subscribers                    11,400      16,500      18,200      19,200
Net Gain - Wholesale
 Subscribers                       100       5,000         200       8,900
                            ----------  ----------  ----------  ----------
Net Gain - Total Subscribers    11,500      21,500      18,400      28,100
GSM as a % of Retail Subs         86.0%       55.5%       86.0%       55.5%
Revenue per Average Wireless
 Customer (1)               $       67  $       66  $       67  $       66
Retail Revenue per Average
 Wireless Customer (2)      $       57  $       54  $       57  $       53
Data Revenue per Average
 Wireless Customer (3)      $     2.61         N/A  $     2.51         N/A
Retail Revenue              $  104,521  $   89,492  $  205,620  $  176,093
Roaming Revenue             $   16,993  $   21,465  $   36,315  $   42,690
Retail Penetration (4)             7.2%        6.5%        7.2%        6.5%
Postpaid Churn - Wireless
 (5)                               1.9%        2.0%        1.9%        2.1%
Prepaid & Postpaid Churn -
 Wireless (5)                      2.2%        2.3%        2.1%        2.4%
Monthly MOU's per Wireless
 Customer                          895         745         879         716
Cost to Acquire (6)         $      310  $      321  $      321  $      322
Capital Expenditures        $   11,142  $   16,073  $   16,545  $   25,624

PUERTO RICO

Postpaid Wireless
 Subscribers                   386,800     373,200     386,800     373,200
Prepaid Wireless Subscribers     5,500       4,900       5,500       4,900
                            ----------  ----------  ----------  ----------
Total Wireless Subscribers     392,300     378,100     392,300     378,100
Total Wireless Gross Adds       39,400      35,600      73,200      71,600
Net Gain  - Wireless
 Subscribers                     5,700       2,200       8,800       6,000
Revenue per Average Wireless
 Customer (1)               $       68  $       70  $       67  $       71
Data Revenue per Average
 Wireless Customer (3)      $     4.31         N/A  $     3.91         N/A
Penetration - Total
 Wireless (4)                      9.8%        9.4%        9.8%        9.4%
Postpaid Churn -
 Wireless (5)                      2.8%        3.0%        2.6%        3.0%
Prepaid  Churn -
 Wireless (5)                     14.0%        0.5%       13.4%        0.4%
Prepaid & Postpaid Churn -
 Wireless (5)                      2.9%        3.0%        2.8%        2.9%
Monthly MOU's per Wireless
 Customer                        1,536       1,475       1,527       1,455
Fiber Route Miles                1,261       1,193       1,261       1,193
Switched Access Lines           71,400      65,600      71,400      65,600
Dedicated Access Line
 Equivalents (7)               316,100     258,500     316,100     258,500
On-Net Buildings                 1,854       1,569       1,854       1,569
Capital Expenditures -
 Wireless                   $    7,567  $   16,238  $   14,796  $   25,176
Capital Expenditures -
 Broadband                  $    4,749  $    3,789  $    8,492  $   10,582
                            ----------  ----------  ----------  ----------
Capital Expenditures - Total
 Puerto Rico                $   12,316  $   20,027  $   23,288  $   35,758
                            ==========  ==========  ==========  ==========

REVENUES

U.S. Wireless               $  121,514  $  110,957  $  241,935  $  218,783
                            ----------  ----------  ----------  ----------
Puerto Rico - Wireless      $   78,893  $   78,995  $  156,433  $  160,123
Puerto Rico - Broadband     $   31,831  $   28,622  $   62,142  $   57,368
Puerto Rico - Intercompany  $   (3,036) $   (2,545) $   (5,907) $   (5,126)
                            ----------  ----------  ----------  ----------
Total Puerto Rico           $  107,688  $  105,072  $  212,668  $  212,365
                            ----------  ----------  ----------  ----------
Consolidated                $  229,202  $  216,029  $  454,603  $  431,148
                            ==========  ==========  ==========  ==========

ADJUSTED OPERATING INCOME (8)

U.S. Wireless               $   42,049  $   40,188  $   85,740  $   80,841
                            ----------  ----------  ----------  ----------
Puerto Rico - Wireless      $   28,249  $   32,042  $   59,862  $   66,118
Puerto Rico - Broadband     $   17,937  $   15,510  $   34,786  $   30,767
                            ----------  ----------  ----------  ----------
Total Puerto Rico           $   46,186  $   47,552  $   94,648  $   96,885
                            ----------  ----------  ----------  ----------
Consolidated                $   88,235  $   87,740  $  180,388  $  177,726
                            ==========  ==========  ==========  ==========

NET DEBT

Total Debt Less Cash and
 Cash Equivalents           $2,037,000  $1,434,900  $2,037,000  $1,434,900



(1)  Revenue per Average Wireless Customer is determined for each period by
     dividing total monthly revenue per wireless subscriber including
     roaming revenue by the average retail customers for such period.
(2)  Retail Revenue per Average Wireless Customer is determined for each
     period by dividing retail revenue (total revenue excluding roaming
     revenue) by the average retail customers for such period.
(3)  Data Revenue per Average Wireless Customer is determined for each
     period by dividing data revenue by the average retail customers for
     such period.
(4)  The penetration rate equals the percentage of total population in our
     service areas who are retail subscribers to our wireless service as of
     period-end.
(5)  Churn is calculated by dividing the aggregate number of retail
     subscribers who cancel service during each month in a period by the
     total number of subscribers as of the beginning of the month.  Churn
     is stated as the average monthly churn rate for the period.
(6)  Cost to Acquire a new customer is calculated by dividing the sum of
     the cost of phones and marketing expenses less the related
     equipment sales by the gross activations for the period.  Cost to
     acquire excludes costs relating to phones used for customer retention.
(7)  November 2006 excludes 82,700 dedicated access line equivalents
     related to short term contracts.
(8)  Adjusted operating income is defined as net (loss) income before loss
     from discontinued operations, income from equity investments, minority
     interest in income of subsidiaries, income tax benefit (expense),
     interest expense, net, loss on disposition of assets, strategic
     alternatives/recapitalization costs, stock-based compensation expense
     and depreciation and amortization.


             CENTENNIAL COMMUNICATIONS CORP. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
              (Amounts in thousands, except per share data)


                                    Three Months Ended   Six Months Ended
                                    ------------------  ------------------
                                     Nov 30,   Nov 30,   Nov 30,   Nov 30,
                                      2006      2005      2006      2005
                                    --------  --------  --------  --------

REVENUE:
   Service revenue                  $216,743  $207,243  $429,779  $413,715
   Equipment sales                    12,459     8,786    24,824    17,433
                                    --------  --------  --------  --------
                                     229,202   216,029   454,603   431,148
                                    --------  --------  --------  --------

COSTS AND EXPENSES:
   Cost of services                   43,499    40,920    86,741    79,900
   Cost of equipment sold             32,411    25,248    61,095    48,896
   Sales and marketing                24,115    24,019    46,793    46,272
   General and administrative         43,813    38,102    84,689    78,354
   Depreciation and amortization      32,695    28,528    64,913    58,078
   Loss on disposition of assets          88       473       293       388
                                    --------  --------  --------  --------
                                     176,621   157,290   344,524   311,888
                                    --------  --------  --------  --------

OPERATING INCOME                      52,581    58,739   110,079   119,260
                                    --------  --------  --------  --------

INTEREST EXPENSE, NET                (51,689)  (34,489) (102,403)  (68,492)
                                    --------  --------  --------  --------

INCOME FROM CONTINUING OPERATIONS
 BEFORE INCOME TAX EXPENSE,
 MINORITY INTEREST IN INCOME OF
 SUBSIDIARIES AND INCOME FROM
 EQUITY INVESTMENTS                      892    24,250     7,676    50,768

INCOME TAX EXPENSE                        48   (14,430)   (7,033)  (26,267)
                                    --------  --------  --------  --------

INCOME FROM CONTINUING OPERATIONS
 BEFORE MINORITY INTEREST IN INCOME
 OF SUBSIDIARIES AND INCOME FROM
 EQUITY INVESTMENTS                      940     9,820       643    24,501

MINORITY INTEREST IN INCOME OF
 SUBSIDIARIES                           (233)     (227)     (441)     (439)
INCOME FROM EQUITY INVESTMENTS           293       337       546       445
                                    --------  --------  --------  --------

INCOME FROM CONTINUING OPERATIONS      1,000     9,930       748    24,507

Discontinued operations:
   (Loss) Income                      (1,464)     (851)   (2,829)      147
   (Loss) gain on disposition        (31,995)        -   (31,995)      100
   Income tax benefit (expense)         (893)     (836)   (1,435)   (1,836)
                                    --------  --------  --------  --------
Net loss from discontinued
 operations                          (34,352)   (1,687)  (36,259)   (1,589)
                                    ========  ========  ========  ========

NET (LOSS) INCOME                   $(33,352) $  8,243  $(35,511) $ 22,918
                                    ========  ========  ========  ========

EARNINGS (LOSS) PER SHARE:
   BASIC
      EARNINGS PER SHARE FROM
       CONTINUING OPERATIONS        $   0.01  $   0.10  $   0.01  $   0.24
      LOSS PER SHARE FROM
       DISCONTINUED OPERATIONS      $  (0.33) $  (0.02) $  (0.35) $  (0.02)
                                    --------  --------  --------  --------
      NET (LOSS) INCOME PER SHARE   $  (0.32) $   0.08  $  (0.34) $   0.22
                                    ========  ========  ========  ========

   DILUTED
      EARNINGS PER SHARE FROM
       CONTINUING OPERATIONS        $   0.01  $   0.09  $   0.01  $   0.23
      LOSS PER SHARE FROM
       DISCONTINUED OPERATIONS      $  (0.32) $  (0.01) $  (0.34) $  (0.02)
                                    --------  --------  --------  --------
      NET (LOSS) INCOME PER SHARE   $  (0.31) $   0.08  $  (0.33) $   0.21
                                    ========  ========  ========  ========

WEIGHTED-AVERAGE SHARES OUTSTANDING
 DURING THE PERIOD:
      BASIC                          105,408   104,435   105,309   104,271
                                    ========  ========  ========  ========
      DILUTED                        107,512   107,083   107,363   106,979
                                    ========  ========  ========  ========


                      Proforma Impact on Revenue of
    Presentation of Centennial Dominicana as a Discontinued Operation
                          (Amounts in thousands)


                                      F1Q07     F4Q06     F3Q06     F2Q06
                                    --------  --------  --------  --------

Caribbean Wireless
Revenue, As Previously Reported     $ 91,278  $ 92,497  $ 89,309  $ 92,172
Exclusion of Centennial Dominicana
 as a discontinued operation         (13,738)  (14,796)  (13,014)  (13,177)
                                    --------  --------  --------  --------

Revenue from continuing
 operations(1)                      $ 77,540  $ 77,701  $ 76,295  $ 78,995
                                    ========  ========  ========  ========

Caribbean Broadband
Revenue, As Previously Reported     $ 35,131  $ 36,849  $ 36,281  $ 35,420
Exclusion of Centennial Dominicana
 as a discontinued operation          (4,820)   (6,368)   (7,175)   (6,798)
                                    --------  --------  --------  --------

Revenue from continuing
 operations(1)                      $ 30,311  $ 30,481  $ 29,106  $ 28,622
                                    ========  ========  ========  ========

(1) Reflects Revenue from continuing operations excluding Centennial
    Dominicana as a discontinued operation


            Proforma Impact of Corporate Expense Reallocation
  Due to Exclusion of Centennial Dominicana as a Discontinued Operation
                          (Amounts in thousands)


                                      F1Q07     F4Q06     F3Q06     F2Q06
                                    --------  --------  --------  --------

Caribbean Wireless
   Adjusted Operating Income (AOI),
    As Previously Reported          $ 33,631  $ 32,126  $ 32,815  $ 34,228
   Exclusion of Centennial
    Dominicana as a discontinued
    operation/ Reallocation of
    Corporate Expenses                (2,018)   (3,167)     (861)   (2,186)
                                    --------  --------  --------  --------
   Adjusted Operating Income (AOI)
    from continuing operations (1)  $ 31,613  $ 28,959  $ 31,954  $ 32,042
                                    ========  ========  ========  ========

Caribbean Broadband
   Adjusted Operating Income (AOI),
    As Previously Reported          $ 17,213  $ 15,385  $ 16,556  $ 16,799
   Exclusion of Centennial
    Dominicana as a discontinued
    operation/ Reallocation of
    Corporate Expenses                  (364)    1,572      (967)   (1,289)
                                    --------  --------  --------  --------
   Adjusted Operating Income (AOI)
    from continuing operations (1)  $ 16,849  $ 16,957  $ 15,589  $ 15,510
                                    ========  ========  ========  ========

(1) Reflects Adjusted Operating Income (AOI) from continuing operations
    excluding Centennial Dominicana as a discontinued operation

Contact Information

  • For investor and media inquiries please contact:
    Steve E. Kunszabo
    Executive Director, Investor Relations
    732-556-2220