Summary
MetroPCS Communications, Inc. (operating as MetroPCS) reported its financial results for the second quarter ended June 30, 2012. The company demonstrated revenue growth, with total revenues increasing by 6% year-over-year to $1.28 billion. This growth was primarily driven by a 4% increase in service revenues and a significant 27% increase in equipment revenues. Income from operations saw a substantial 48% rise to $311.9 million, indicating improved operational efficiency. Despite the positive top-line and operating income performance, investors should note a decline in net customer additions, with a net loss of 186,062 customers in the quarter compared to net additions in the prior year period. This shift in focus from customer growth to generating Adjusted EBITDA and cash flow, along with competitive pressures and customer expectations for 4G LTE service, are cited as contributing factors. The company maintained a strong liquidity position with approximately $2.3 billion in cash, cash equivalents, and short-term investments.
Financial Highlights
51 data points| Revenue | $4.88B |
| Cost of Revenue | $646.34M |
| Gross Profit | $4.24B |
| SG&A Expenses | $167.49M |
| Operating Expenses | $4.43B |
| Operating Income | $452.00M |
| Interest Expense | $0 |
| Net Income | $207.00M |
| EPS (Basic) | $0.39 |
| EPS (Diluted) | $0.39 |
| Shares Outstanding (Basic) | 535.29M |
| Shares Outstanding (Diluted) | 535.29M |
Key Highlights
- 1Total revenues increased by 6% to $1.28 billion for the three months ended June 30, 2012, compared to $1.21 billion for the same period in 2011.
- 2Service revenues grew by 4% to $1.16 billion, while equipment revenues saw a substantial 27% increase to $122.2 million.
- 3Income from operations surged by 48% to $311.9 million, reflecting improved operational efficiency.
- 4Net customer additions turned into a net loss of 186,062 for the quarter, a significant shift from net additions of 198,810 in the prior year's comparable quarter.
- 5Average monthly churn rate decreased to 3.4% from 3.9% year-over-year, indicating improved customer retention.
- 6Adjusted EBITDA, a key non-GAAP metric, increased by 33% to $476.7 million for the quarter.
- 7The company reported approximately $2.3 billion in cash, cash equivalents, and short-term investments as of June 30, 2012, indicating a solid liquidity position.