WAYNESBORO, Va., Sept. 24, 2013 /PRNewswire/ -- NTELOS Holdings Corp. (NASDAQ: NTLS), a leading regional provider of nationwide wireless voice and data communications and home to the "best value in wireless," today announced that it has reached a settlement with Sprint Corporation ("Sprint") over disputes related to their Strategic Network Alliance ("SNA"). Terms of the agreement were not disclosed.
"We are pleased to put our disputes with Sprint behind us in a manner we view as a win/win for both companies," said James A. Hyde, CEO of NTELOS Holdings Corp. "Since entering into the SNA in 1999, we have worked closely with Sprint to create a strong and mutually beneficial partnership. Today's announcement further strengthens our relationship by revising and simplifying a number of terms from the original agreement, which we expect will allow nTelos to maintain wholesale revenue at levels consistent with recent quarters and by establishing a basis from which we can extend and expand our partnership beyond the current term."
Under the SNA, nTelos provides exclusive PCS service on a wholesale basis to Sprint's customers in portions of western Virginia and West Virginia. The settlement resolves the open disputes under the SNA, including the data rate reset dispute that began in the fourth quarter 2011 and the unrelated historical billing disputes that were raised in the third quarter 2012.
Business OutlookIn connection with the settlement, nTelos expects to recognize an additional $9.6 million in Adjusted EBITDA for the quarter ending September 30, 2013, primarily due to a reversal of the previously disclosed accrual relating to the disputes. As a result, the Company raised its full year 2013 Adjusted EBITDA guidance to between $150.0 million to $155.0 million (up from the previous range of $140.0 million to $145.0 million). Non-GAAP Measures Adjusted EBITDA is defined as net income attributable to the Company before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, gain/loss on sale of assets and derivatives, net income attributable to noncontrolling interests, other expenses/income, equity-based compensation charges and acquisition related charges.
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