Metro PCS 2011 Annual Report Download - page 3

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A Message From
Chairman and Chief Executive Officer Roger D. Linquist
Dear Fellow Shareholders,
2011 was a year of significant accomplishments, both operationally and financially. Our business continued its
impressive customer growth by ending 2011 with more than 9.3 million customers, an increase of 15 percent when
compared to 2010. We added approximately 1.2 million net new customers and continued a trend we have sustained
for the last six years by adding over one million net new customers a year. In what is a highly penetrated and
competitive market, we have consistently grown and gained share in the midst of continued challenging economic
conditions.
In 2011, we expanded our products and services and continued the build out of our 4G LTE network. By year end
2011 we had launched 4G LTE services in all of our major metropolitan areas. We also launched a $40 4G LTE
smartphone plan that gives our customers the best value for 4G LTE service in the United States. Plus, we added
new services, such as Rhapsody music service, which allows our customers to have unlimited music on any one of
our unlimited smartphone data plans.
We also added to our handset portfolio in 2011 by introducing new, multimedia-rich 3G CDMA and 4G LTE Android
smartphones, along with other QWERTY and feature handsets for our customers. 2011 was the year of the
smartphone and specifically the year when Android eclipsed all other operating systems. Indeed, in early 2011 we
launched the world’s first dual mode CDMA/4G LTE Android handset, the Samsung Indulge. Android smartphones
accounted for approximately 38 percent of all of the handsets we sold in 2011 and, at year end, 35 percent of our
customers were on smartphone plans. The popularity of Android smartphones, however, drove higher data usage on
our 3G CDMA network. In order to provide service to our customers, we invested in adding capacity to our 3G CDMA
network. In addition to other network initiatives -- and at a cost of less than $100 million -- we deployed EVDO
carriers selectively in high traffic areas. This deployment increased capacity on our 3G CDMA network when and
where our customers needed it on a cost effective basis.
In 2011, we also achieved a number of financial milestones as well. For 2011, we generated the highest level of
Adjusted EBITDA in our company’s history at more than $1.3 billion, nearly doubling our Adjusted EBITDA in 2007 --
the year we went public on the New York Stock Exchange. The fourth quarter of 2011 also marked our highest
quarterly Adjusted EBITDA in company history of $362 million. Since 2003, we are proud to have recorded a 40
percent compounded annual growth rate in Adjusted EBITDA. Further, for the eighth straight consecutive year we
maintained Adjusted EBITDA margins of 30 percent or greater. In addition, for the third consecutive year, we also
reported positive unlevered free cash flow (Adjusted EBITDA less Capital Expenditures), totaling $442 million in
2011. These financial results are impressive, especially given the highly competitive industry we compete in along
with the rapid technological change that the wireless broadband mobile industry has experienced in the last year.
Accomplishments during 2011
Total customer growth of 15 percent in 2011 to over 9.3 million customers
Approximately 1.2 million net customer additions and the sixth consecutive year of over 1 million net
customer additions
Total gross customer additions of more than 5.3 million, an increase of 11 percent over 2010
Consolidated total revenues of $4.8 billion, an increase of 19 percent over 2010
Record Adjusted EBITDA of $1.3 billion, an increase of 13 percent over 2010, and the highest Adjusted
EBITDA in company history
Eighth straight consecutive year of 30 percent or greater Adjusted EBITDA margins
Increased ARPU $0.78 from 2010 to $40.57
Record unlevered free cash flow (Adjusted EBITDA less Capital Expenditures) of $442 million, an increase
of 15 percent over 2010, and third consecutive year of positive unlevered free cash flow
Launched the world’s first dual mode CDMA/4G LTE Android smartphone, the Samsung Galaxy Indulge