Cricket Wireless 2010 Annual Report Download - page 77

Download and view the complete annual report

Please find page 77 of the 2010 Cricket Wireless annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 172

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172

internal comparisons of our historical operating performance, management also uses this metric for business
planning purposes and to measure our performance relative to that of our competitors. In addition, we believe that
adjusted OIBDA and similar measures are widely used by investors, financial analysts and credit rating agencies as
measures of our financial performance over time and to compare our financial performance with that of other
companies in our industry.
Adjusted OIBDA has limitations as an analytical tool, and should not be considered in isolation or as a
substitute for analysis of our results as reported under GAAP. Some of these limitations include:
• it does not reflect capital expenditures;
• although it does not include depreciation and amortization, the assets being depreciated and amortized will
often have to be replaced in the future and adjusted OIBDA does not reflect cash requirements for such
replacements;
• it does not reflect costs associated with share-based awards exchanged for employee services;
• it does not reflect the interest expense necessary to service interest or principal payments on current or future
indebtedness;
• it does not reflect expenses incurred for the payment of income taxes and other taxes; and
• other companies, including companies in our industry, may calculate this measure differently than we do,
limiting its usefulness as a comparative measure.
Management understands these limitations and considers adjusted OIBDA as a financial performance measure
that supplements but does not replace the information provided to management by our GAAP results.
The following table shows metric information for 2010 (in thousands, except for ARPU, CPGA, CCU and
Churn):
March 31,
2010
June 30,
2010
September 30,
2010
December 31,
2010
Year Ended
December 31,
2010
Three Months Ended
ARPU .................. $ 38.04 $ 37.71 $ 37.13 $ 38.14 $ 37.76
CPGA .................. $ 171 $ 215 $ 219 $ 209 $ 199
CCU ................... $ 17.49 $ 17.61 $ 19.95 $ 21.77 $ 19.22
Churn .................. 4.5% 5.0% 5.5% 4.0% 4.7%
AdjustedOIBDA .......... $122,992 $172,020 $123,237 $107,045 $525,294
Reconciliation of Non-GAAP Financial Measures
We utilize certain financial measures, as described above, that are widely used in the telecommunications
industry but that are not calculated based on GAAP. Certain of these financial measures are considered “non-
GAAP” financial measures within the meaning of Item 10 of Regulation S-K promulgated by the SEC.
71