e8-k

Exhibit No.

Description

Investor presentation used periodically

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SIGbXvRn1SSv1PGYwV4cS/Imj1SzwEPkt2vejSdC1pz4jUUEQMkPq+vmJK49qu8X T5289MaQGDJLpoifEIGV5A== 0000950144-01-502781.txt : 20010524 0000950144-01-502781.hdr.sgml : 20010524 ACCESSION NUMBER: 0000950144-01-502781 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010523 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010523 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AIRGATE PCS INC /DE/ CENTRAL INDEX KEY: 0001086844 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 582422929 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-27455 FILM NUMBER: 1645966 BUSINESS ADDRESS: STREET 1: 233 PEACHTREE ST NE STREET 2: SUITE 1700 CITY: ATLANTA STATE: GA ZIP: 30303 BUSINESS PHONE: 4045257272 MAIL ADDRESS: STREET 1: 233 PEACHTREE ST STREET 2: SUITE 1700 CITY: ATLANTA STATE: GA ZIP: 30303 8-K 1 g69701e8-k.htm AIRGATE PCS INC. e8-k

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 23, 2001

COMMISSION FILE NUMBER: 027455

AIRGATE PCS, INC.
(Exact name of registrant as specified in its charter)


DELAWARE		58-2422929
(State or other jurisdiction of incorporated or organization)		(IRS Employer Identification Number)

HARRIS TOWER, 233 PEACHTREE STREET N.E., SUITE 1700
ATLANTA, GEORGIA 30303
(Address of Principal Executive Offices)

404-525-7272
(Registrant’s telephone number, including area code)

ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS


Exhibit No.		Description

99		Slide presentation dated May 23, 2001.

ITEM 9. REGULATION FD DISCLOSURE

On May 23, 2001 AirGate PCS, Inc. made a presentation at a financial conference. AirGate PCS hereby incorporates by reference herein the information set forth in its slide presentation dated May 23, 2001, a copy of which is attached hereto as Exhibit 99.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant had duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


		AIRGATE PCS, INC. (Registrant)

Date: May 23, 2001		By: /s/ Alan B. Catherall Name: Alan B. Catherall Title: Chief Financial Officer

INDEX TO EXHIBITS

EX-99 2 g69701ex99.txt INVESTOR PRESENTATION USED PERIODICALLY 1 EXHIBIT 99 Slide Show used in the Investor Meeting Slide 1: AirGate PCS logo Slide 2: Forward-Looking Statement Statements contained in this presentation regarding expected financial results and other expected events should be considered forward-looking statements that are subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, AirGate PCS' management. A variety of factors could cause actual results to differ materially from those anticipated in AirGate PCS' forward-looking statements, including the following factors: the competitiveness of Sprint PCS pricing plan, products and services; consumer purchasing patterns; potential fluctuations in quarterly results; our dependence on our affiliation with Sprint PCS; an adequate supply of subscriber equipment; new product development; risk related to our ability to compete with larger, more established businesses; rapid technological and market change; risks related to future growth and expansion, our significant level of indebtedness and volatility of stock prices. For a detailed discussion of these and other cautionary statements and factors that could cause actual results to differ from AirGate PCS' forward-looking statements, please refer to AirGate PCS' Form 10-K for the fiscal year ended September 30, 2000, and in subsequent filings with the Securities and Exchange Commission. Slide 3: Key Investment Considerations We are Sprint PCS in our territory - 7.1 million POPS - Sprint PCS bought licenses and cleared microwave paths - 50 year exclusive term - Use Sprint PCS back office services Successful execution of rapid network build-out Sprint is local exchange carrier for 30% of POPS in territory Proven ability to cost efficiently attract customers Fully financed business plan Slide 4: Graphic titled "AirGate Markets - 7.1 MM POPS," showing AirGate PCS' current service area as provided under its agreement with Sprint PCS on a color-coded geographic map of Georgia, North Carolina, South Carolina and Tennessee. 2 Slide 5: Network Coverage - 4 switches by June 15, 2001 - Met or exceeded Sprint PCS build-out requirements in all markets - Current coverage 79%, forecasted coverage 9/30/01 83-84%
Date Cell Sites on Airs ---- ------------------ 9/30/99 0 3/31/00 190 9/30/00 567 3/31/01 633 9/30/01 (Forecast) 690-720
Slide 6: Network Capacity
Technology Capacity vs. Analog ---------- ------------------- ~~CDMA 19 mHz 3.0 times TDMA 29 mHz 2.3 times GSM 1.5 times Analog 1.0 times~~
The immediate future: - 60-80% capacity increase with 1XRTT upgrade - Selective mode vocoder - 1XEV-DV (HDR) - Smart antennae by 2004 Slide 7: EFFICIENT MIGRATION PATH TO 1XRTT - Minimal switch/base station modification - Less than $20 million for ubiquitous deployment - Deployment will be completed by 2Q FY 2002 - Depending on handset availability - Will provide three significant benefits - Increased capacity - Faster data speeds - Longer battery life 3 Slide 8: Graphic titled "Rapid Customer Growth" which shows that in the first quarter of 2000 AirGate PCS had 0 customers, in the second quarter of 2000 AirGate had 6,378 customers, in the third quarter of 2000 AirGate PCS had 23,482 customers, in the fourth quarter of 2000 AirGate PCS had 56,689 customers, in the first quarter of 2001, AirGate PCS had 103,440 customers and for the second quarter of 2001, AirGate PCS had 143,548 customers. Slide 9: Chart titled RAPID CUSTOMER GROWTH showing:
Net adds/Week/ 100,000 POPS -------------- AirGate 43 US Unwired 35 Sprint PCS 33 Triton 32 Alamosa 28 Telecorp 18 Ubiquitel 5
Slide 10: Graphic titled "Channel Mix, 2Q Fiscal 2001" which shows that 40% of AirGate PCS' distribution in the second quarter of 2001 was through its 33 company-owned stores, 31% was through its 300+ third party retailers including Radio Shack, Best Buy, Office Max and Circuit City, 21% was through Sprint PCS and 8% was through business-to-business. Slide 11: Graphic titled "Handset Mix" which lists the following mix of handsets sold in the second fiscal quarter of 2001. Samsung 44%, Qualcomm/Kyocera 24%, Sanyo 10%, Dense 9%, Other 7% and Motorola 6%. Slide 12: Graphic entitled "Cost Per Gross Addition" which shows that AirGate's cost per gross addition has decreased from $636 for the second quarter of 2000 to $515 in the third quarter of 2000 to $438 in the fourth quarter of 2000 to $367 in the first quarter of 2001 to $366 in the second quarter of 2001. 4 Slide 13: Chart entitled "Cost Per Gross Addition" showing for the quarter ended March 31, 2001:
CPGA ---- US Unwired $348 Sprint PCS $360 AirGate $366 Triton $399 Telecorp $412 Alamosa $418 Nextel Partners $500 Ubiquitel $530
Slide 14:
NAME POSITION EXPERIENCE ---- -------- ---------- Thomas Dougherty President and CEO Sprint PCS, Bellsouth Mobility Barbara Blackford General Counsel Monsanto Company Long, Aldridge & Norman Alan Catherall Chief Financial Officer MCI Mark Allen Vice President Marketing Conxus, APCS, Skytel David Roberts Vice President Engineering Motorola and Network Operations Jonathan Pfohl Vice President Sales and Operations Sprint PCS Thomas Body Vice President Strategic Planning American Mobile Phone Paging, Cellular One, MFS
Slide 15: Cumulative Sources and Uses (through 2002) ($ in millions)
SOURCES - ------- IPO $131 Senior subordinated discount notes 156 Senior Credit Facility 144 Total Sources $431
5
USES - ---- Capital expenditures $215 Working capital and operating losses 102 Debt service and fees 51 Excess cash 63 Total Uses $431
Slide 16: Financial Results
12/31/00 3/31/01 6/30/01 (1) -------- ------- ----------- Net New subscribers (000's) 46.7 40.1 27-30 ARPU ($) $54 $58 $57-59 EBITDA (2)($ millions) $(20.4) $(13.6) $(8) - (10) EPS $(2.64) $(2.18) N/A Capex $10.6 $12.1 $12.0
(1) Company guidance (2) Excluding non-cash stock option compensation expenses Slide 17: Chart titled QUARTERS TO EBITDA BREAK EVEN showing: AirGate 11 Triton 10 Powertel 20 Sprint PCS 22

Slide 18: Chart titled CASH EXPENDITURES THROUGH EBITDA BREAK EVEN showing the cumulative cash spent on capital investment and cash operating losses per licensed POP through EBITDA Break even: AirGate $48 Powertel $54 Triton (including equity for licenses) $69 Sprint PCS $71

6 Slide 19: Chart titled POSITIVE EQUITY TRADING PATTERNS the average daily volume ($MM) and % changer per $1MM Volume (Daily Average)
Average Daily Volume ($mm) % Change per $1MM (Daily Average) -------------------------- --------------------------------- AirGate $7.4 1.1% Alamosa $3.1 3.4% Ubiquitel $1.5 9.2% US Unwired $0.9 10.6%
Slide 20 COMPETITIVE ADVANTAGES - Fastest build-out on record with significant capex efficiency - Proven ability to cost efficiently attract customers - Sprint brand name recognition with small company flexibility - Rapid progress to EBITDA break-even - Simple/cost efficient migration path to 1XRTT Slide 21: AirGate PCS logo Nasdaq: PCSA ~~-----END PRIVACY-ENHANCED MESSAGE-----~~