Metro PCS 2009 Annual Report Download - page 87

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Results of Operations
Year Ended December 31, 2008 Compared to Year Ended December 31, 2007
Set forth below is a summary of certain financial information by reportable operating segment for the periods
indicated:
Reportable Operating Segment Data 2008 2007 Change
(in thousands)
REVENUES:
Service revenues:
Core Markets ................................................................................................................ $ 2,424,859 $ 1,919,197 26%
Northeast Markets ........................................................................................................ 12,391 — **
Total ......................................................................................................................... $ 2,437,250 $ 1,919,197 27%
Equipment revenues:
Core Markets ................................................................................................................ $ 310,452 $ 316,537 (2)%
Northeast Markets ........................................................................................................ 3,814 — **
Total ......................................................................................................................... $ 314,266 $ 316,537 (1)%
OPERATING EXPENSES:
Cost of service (excluding depreciation and amortization disclosed separately below)
(1):
Core Markets ................................................................................................................ $ 785,595 $ 642,206 22%
Northeast Markets ........................................................................................................ 71,700 5,304 **
Total ......................................................................................................................... $ 857,295 $ 647,510 32%
Cost of equipment:
Core Markets ................................................................................................................ $ 690,296 $ 597,233 16%
Northeast Markets ........................................................................................................ 14,352 — **
Total ......................................................................................................................... $ 704,648 $ 597,233 18%
Selling, general and administrative expenses (excluding depreciation and amortization
disclosed separately below) (1):
Core Markets ................................................................................................................ $ 389,896 $ 323,572 21%
Northeast Markets ........................................................................................................ 57,686 28,448 103%
Total ......................................................................................................................... $ 447,582 $ 352,020 27%
Adjusted EBITDA (Deficit) (2):
Core Markets ................................................................................................................ $ 901,751 $ 694,761 30%
Northeast Markets ........................................................................................................ $ (118,618) $ (27,766) 327%
Depreciation and amortization:
Core Markets ................................................................................................................ $ 230,603 $ 170,876 35%
Northeast Markets ........................................................................................................ 6,502 319 **
Other............................................................................................................................. 18,214 7,007 160%
Total ......................................................................................................................... $ 255,319 $ 178,202 43%
Stock-based compensation expense:
Core Markets ................................................................................................................ $ 32,227 $ 22,037 46%
Northeast Markets ........................................................................................................ 8,915 5,987 49%
Total ......................................................................................................................... $ 41,142 $ 28,024 47%
Income (loss) from operations:
Core Markets ................................................................................................................ $ 620,024 $ 504,468 23%
Northeast Markets ........................................................................................................ (134,039) (34,092) 293%
Other............................................................................................................................. (18,218) (10,262) 78%
Total ......................................................................................................................... $ 467,767 $ 460,114 2%
________________________
** Not meaningful
(1) Cost of service and selling, general and administrative expenses include stock-based compensation expense. For the year ended December
31, 2008, cost of service includes $2.9 million and selling, general and administrative expenses includes $38.2 million of stock-based
compensation expense. For the year ended December 31, 2007, cost of service includes $1.8 million and selling, general and administrative
expenses includes $26.2 million of stock-based compensation expense.
(2) Core and Northeast Markets Adjusted EBITDA (Deficit) is presented in accordance with ASC 280 as it is the primary financial measure
utilized by management to facilitate evaluation of our ability to meet future debt service, capital expenditures and working capital
requirements and to fund future growth.