MetroPCS Communications, Inc. (PCS)

[bowonwing]

Good Q4-09. 2009 EBITDA $956M; income from operations $67M; EPS $0.49 vrs. $0.42 for 2008.

"Core" mkts doing well, but growth is slowing from 2008. "Northeast" mkt expansion is the key for PCS since in 2009 EBITDA loss of $205M and "penetration of covered POP's" 2.8%, compared to "core" mkts, 2009 EBITDA +$1.16B and "penetration of covered POP's" 9%, but net additions in 2009 of 674K, more than "core" mkts total.

"Current assets:" end 2009 $1.49B vrs. 2008 $1.04B. "Cash and cash equivalents" end of 2009 $929M vrs. end of 2008 $697M.

Monthly avg. "churn:" 2009 5.5%; 2008 4.7%, not good, but almost 1.3M more subscribers in 2009 than in 2008, so that could be part of the reason.

Room to grow in "northeast" mkt, which PCS did in 2009, service revenues of $235M, vrs. in 2008 $12M. PCS needs to get "penetration of covered POP's" in "expansion" mkts to "core" mkt range of about 9%, which would be an increase of 6%, or +200% from current 2.8%.

"Cost per gross addition" (CPGA) and "cost per user" (CPU) both went up in 2009.

Linquist reaffirmed that PCS was going to move forward with G4-LTE new technology in the second half of 2010.

The "net cash provided by financing activities" increased in 2009 to $449M, due to "proceeds from 9-1/4% Senior Notes Due 2014," in 2008 is was $74.5M.

The time is now for PCS and within two years, by 2012, we should know if Linquist & Co. pulled it off. JMHO