Virgin Mobile Usa Inc (VM) research, news, and more from GeoInvesting

Company description

Mon, 11 May 2009 04:00:00 GMT

Virgin Mobile USA, Inc., through its operating company Virgin Mobile USA, L.P., offers more than 5 million customers control, flexibility and choice through Virgin Mobile's Plans Without Annual Contracts, with coverage powered by the Nationwide Sprint Network.

Virgin Mobile USA is known for its award-winning customer service, with more than 90% of its customers reporting satisfaction. Virgin Mobile USA service recently announced its Pink Slip Protection program, which provides eligible monthly plan customers who lose their jobs and become eligible for state unemployment benefits free service for up to three months.

Research

Tue, 04 Aug 2009 04:00:00 GMT

New article available for Virgin Mobile

Financials

Fri, 29 May 2009 04:00:00 GMT

1st QUARTER 2009 vs. 2008 FINANCIAL SNAPSHOT ENDED MARCH

	1st Quarter 2009	1st Quarter 2008	Period Change
GAAP Revenue	$337.3 million	$318.1 million	6.04%
GAAP EPS	$0.19	$0.07	171.43%
Non-GAAP EPS ^a	$0.24	$0.07	243.86%
Adjusted EBITDA PER Share ^a	$0.75	$0.44	70.45%
Tax Rate	4.65%	8.39%	4.46%
Fully Tax-Adjusted EPS ^b	$0.13	$0.05	1.60%
Fully Tax-Adjusted Non-GAAP EPS ^b	$0.16	$0.05	$220.00
Fully Diluted Shares	70,399,000	64,828,000	8.59%

Source: See Release

FULL YEAR 2008 vs. 2007 FINANCIAL SNAPSHOT ENDED DECEMBER

	Full Year 2008	Full Year 2007	Period Change
GAAP Revenue	$1.3 billion	$1.3 billion	00.00%
GAAP EPS	$0.13	$0.08	62.50%
Non-GAAP EPS ^a	$0.26	$0.08	225.00%
Adjusted EBITDA PER Share ^a	$1.74	$1.87	-7.47%
Tax Rate	11.08%	7.07%	-56.72%
Fully Tax-Adjusted EPS ^b	$0.10	$0.06	66.67%
Fully Tax-Adjusted Non-GAAP EPS ^b	$0.20	$0.06	233.33%
Fully Diluted Shares	65,972,000	53,211,000	23.98%

Source: See Release

^a Excludes transition and restructuring costs related to the acquisition of Helio, the outsourcing of IT services to IBM and workforce reductions totaling approximately $5.4 million in the fourth quarter and $14.1 million in the full year 2008. Adjusted earnings (loss) per share also excludes the amortization of intangibles associated with the acquisition of Helio. Adjustments to earnings (loss) per share are net of minority interest and taxes. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information.For a more complete explanation of the company's definition of non-GAAP please refer to their First Quarter financial press release.

^bFor valuation purposes, The GeoTeam® prefers to adjust EPS to reflect a standard United States tax rate of 36%

Potential Valuation Scenarios

Mon, 11 May 2009 04:00:00 GMT

Valuation Scenarios

Wireless provider companies are often valued on EBITDA.

Data Inputs:

Diluted Shares Outstanding	70,399,000
Low End EBITDA Est.	$127 million
High End EBITDA Est.	$142 million
Low End EBITDA Per Share	$1.80
High End EBITDA Per Share	$2.02

Scenario based on 5.5*EBITDA Per Share:

Price based on low end EBITDA per share	$9.00
Price based on high end EBITDA est. per share	$10.10

Scenario based on 7*EBITDA Per Share:

Price based on low end EBITDA per share	$12.60
Price based on high end EBITDA est. per share	$14.14

These scenarios are not intended to be investment advice, but are scenarios based on some commonly used investment guidelines. They are provided to aid investors in making their own investment decisions.

GeoBargain Notes

Mon, 11 May 2009 04:00:00 GMT

Virgin Mobile does not meet a significant portion on the GeoBargain criteria. However, the GeoTeam® is making an exception due the company's EBITDA level which may give the stock some significant upside. See potential valuation scenarios.