##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-Q


|  |  |                                                                                             
|- |  | --------------------------------------------------------------------------------------------
|þ |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|  |  | For the quarterly period ended March 31, 2005                                               
| 
|o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|  |  | For the transition period
    from           to                                             

Commission File No. 333-110082





American Cellular Corporation


(Exact name of registrant as specified in its charter)


|                                                                   |  |                                         
|------------------------------------------------------------------ |  | ----------------------------------------
|Delaware                                                           |  | 22-3043811                              
|(State or other jurisdiction of
    incorporation or organization) |  | (I.R.S. Employer
    Identification No.)
|                                                                  
|14201 Wireless Way
    Oklahoma City, Oklahoma                     |  | 73134(Zip Code)                         
|(Address of principal executive offices)                           |  |                                         

(405) 529-8500


(Registrants telephone number, including area code)





o o




o þ












---










AMERICAN CELLULAR CORPORATION


INDEX TO FORM 10-Q


|                                                          |   |  |  |                                                                                                            |  |  |    | 
|--------------------------------------------------------- | - |  |  | ---------------------------------------------------------------------------------------------------------- |  |  | -- | 
|Item                                                      |   |  |  |                                                                                                           
|Number                                                    |   |  |  | Page                                                                                                      
|                                                          |   |  |  |                                                                                                           
|PART I. FINANCIAL
    INFORMATION                        
|                                                          | 1 |  |  | Condensed Consolidated Financial Statements (Unaudited):                                                   |  |  |    | 
|                                                          |   |  |  | Condensed Consolidated Balance Sheets as of
    March 31, 2005 and December 31, 2004                       |  |  | 2  | 
|                                                          |   |  |  | Condensed Consolidated Statements of
    Operations for the Three Months Ended March 31, 2005 and
    2004 |  |  | 3  | 
|                                                          |   |  |  | Condensed Consolidated Statements of Cash
    Flows for the Three Months Ended March 31, 2005 and 2004     |  |  | 4  | 
|                                                          |   |  |  | Notes to Condensed Consolidated Financial
    Statements                                                   |  |  | 5  | 
|                                                          | 2 |  |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                  |  |  | 7  | 
|                                                          | 3 |  |  | Quantitative and Qualitative Disclosures
    about Market Risk                                             |  |  | 14 | 
|                                                          | 4 |  |  | Controls and Procedures                                                                                    |  |  | 14 | 
|PART II. OTHER INFORMATION                               
|                                                          | 1 |  |  | Legal Proceedings                                                                                          |  |  | 15 | 
|                                                          | 2 |  |  | Unregistered Sales of Equity Securities and
    Use of Proceeds                                            |  |  | 15 | 
|                                                          | 3 |  |  | Defaults Upon Senior Securities                                                                            |  |  | 15 | 
|                                                          | 4 |  |  | Submission of Matters to a Vote of Security
    Holders                                                    |  |  | 15 | 
|                                                          | 5 |  |  | Other Information                                                                                          |  |  | 15 | 
|                                                          | 6 |  |  | Exhibits                                                                                                   |  |  | 15 | 
|Equity Interest Purchase Agreement                       
|Certification by Principal Executive Officer             
|Certification by Principal Financial Officer             
|Section 1350 Certification by Principal Executive Officer
|Section 1350 Certification by Principal Financial Officer



1



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##### Table of Contents






PART I.


FINANCIAL INFORMATION




|        |                     
|------- | --------------------
|Item 1. | Financial Statements

AMERICAN CELLULAR CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED BALANCE SHEETS


|                                                                           |                                            |                |             |               |                   |   |             |               | 
|-------------------------------------------------------------------------- | ------------------------------------------ | -------------- | ----------- | ------------- | ----------------- | - | ----------- | ------------- | 
|                                                                           |                                            | March 31, 2005 |             |               | December 31, 2004 |  
|                                                                           |                                            |                |             |               |                   |  
|                                                                           |                                            | (Unaudited)    |             |               |                  
|ASSETS                                                                    
|CURRENT ASSETS:                                                            |                                            |                |             |               |                   |   |             |              
|Cash and cash equivalents                                                  |                                            | $              | 34,944,292  |               |                   | $ | 41,488,979  |              
|Accounts receivable, net                                                   |                                            |                | 36,261,878  |               |                   |   | 40,412,508  |              
|Inventory                                                                  |                                            |                | 3,484,755   |               |                   |   | 5,153,250   |              
|Deferred tax assets                                                        |                                            |                | 3,968,000   |               |                   |   | 4,207,000   |              
|Prepaid expenses                                                           |                                            |                | 3,386,877   |               |                   |   | 2,858,438   |              
|                                                                           |                                            |                |             |               |                   |  
|                                                                           | Total current assets                       |                |             | 82,045,802    |                   |   |             | 94,120,175    | 
|                                                                           |                                            |                |             |               |                   |  
|PROPERTY, PLANT AND EQUIPMENT, net (Note 2)                                |                                            |                | 168,462,724 |               |                   |   | 177,141,717 |              
|                                                                           |                                            |                |             |               |                   |  
|OTHER ASSETS:                                                              |                                            |                |             |               |                   |   |             |              
|Wireless license acquisition costs                                         |                                            |                | 669,168,756 |               |                   |   | 669,168,756 |              
|Goodwill                                                                   |                                            |                | 572,113,347 |               |                   |   | 572,113,347 |              
|Deferred financing costs, net                                              |                                            |                | 15,194,163  |               |                   |   | 15,784,770  |              
|Customer list, net                                                         |                                            |                | 55,253,333  |               |                   |   | 59,253,333  |              
|Other non-current assets                                                   |                                            |                | 729,790     |               |                   |   | 696,846     |              
|                                                                           |                                            |                |             |               |                   |  
|                                                                           | Total other assets                         |                |             | 1,312,459,389 |                   |   |             | 1,317,017,052 | 
|                                                                           |                                            |                |             |               |                   |  
|                                                                           | Total assets                               |                | $           | 1,562,967,915 |                   |   | $           | 1,588,278,944 | 
|                                                                           |                                            |                |             |               |                   |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                      
|CURRENT LIABILITIES:                                                       |                                            |                |             |               |                   |   |             |              
|Accounts payable                                                           |                                            | $              | 18,056,655  |               |                   | $ | 10,297,625  |              
|Accounts payable  affiliates                                              |                                            |                | 9,132,256   |               |                   |   | 6,182,755   |              
|Accrued expenses                                                           |                                            |                | 7,838,245   |               |                   |   | 13,140,622  |              
|Accrued interest payable                                                   |                                            |                | 15,797,657  |               |                   |   | 37,867,260  |              
|Deferred revenue and customer deposits                                     |                                            |                | 12,965,864  |               |                   |   | 13,026,284  |              
|                                                                           |                                            |                |             |               |                   |  
|                                                                           | Total current liabilities                  |                |             | 63,790,677    |                   |   |             | 80,514,546    | 
|                                                                           |                                            |                |             |               |                   |  
|OTHER LIABILITIES:                                                         |                                            |                |             |               |                   |   |             |              
|Long-term debt, net (Note 3)                                               |                                            |                | 914,028,570 |               |                   |   | 913,773,624 |              
|Deferred tax liabilities                                                   |                                            |                | 156,657,489 |               |                   |   | 160,231,500 |              
|Other non-current liabilities                                              |                                            |                | 4,161,627   |               |                   |   | 4,161,627   |              
|Commitments (Note 4)                                                       |                                            |                |             |               |                   |   |             |              
|STOCKHOLDERS EQUITY:                                                      |                                            |                |             |               |                   |   |             |              
|Class A common stock, $.01 par value, 50 shares
    authorized and issued  |                                            |                | 1           |               |                   |   | 1           |              
|Class B common stock, $.01 par value, 300 shares
    authorized and issued |                                            |                | 3           |               |                   |   | 3           |              
|Paid-in capital                                                            |                                            |                | 474,547,248 |               |                   |   | 474,547,248 |              
|Accumulated deficit                                                        |                                            |                | (50,217,700 | )             |                   |   | (44,949,605 | )            
|                                                                           |                                            |                |             |               |                   |  
|                                                                           | Total stockholders equity                 |                |             | 424,329,552   |                   |   |             | 429,597,647   | 
|                                                                           |                                            |                |             |               |                   |  
|                                                                           | Total liabilities and stockholders equity |                | $           | 1,562,967,915 |                   |   | $           | 1,588,278,944 | 
|                                                                           |                                            |                |             |               |                   |  



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AMERICAN CELLULAR CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


|                         |                                                                                         |                          |            |             |             |   |             |             |            | 
|------------------------ | --------------------------------------------------------------------------------------- | ------------------------ | ---------- | ----------- | ----------- | - | ----------- | ----------- | ---------- | 
|                         |                                                                                         | For the Three Months     |           
|                         |                                                                                         | Ended March 31,          |           
|                         |                                                                                         |                          |           
|                         |                                                                                         | 2005                     |            |             | 2004        |  
|                         |                                                                                         |                          |            |             |             |  
|                         |                                                                                         | (Unaudited)              |           
|OPERATING REVENUE:       |                                                                                         |                          |            |             |             |   |             |            
|                         | Service revenue                                                                         |                          | $          | 86,558,291  |             |   | $           | 77,372,582  |           
|                         | Roaming revenue                                                                         |                          |            | 22,518,722  |             |   |             | 18,112,996  |           
|                         | Equipment and other revenue                                                             |                          |            | 5,008,491   |             |   |             | 4,423,881   |           
|                         |                                                                                         |                          |            |             |             |  
|                         |                                                                                         | Total operating revenue  |            |             | 114,085,504 |   |             |             | 99,909,459 | 
|                         |                                                                                         |                          |            |             |             |  
|OPERATING EXPENSES:      |                                                                                         |                          |            |             |             |   |             |            
|                         | Cost of service (exclusive of depreciation and amortization
    shown separately below) |                          |            | 29,618,633  |             |   |             | 22,148,365  |           
|                         | Cost of equipment                                                                       |                          |            | 11,658,321  |             |   |             | 10,124,095  |           
|                         | Marketing and selling                                                                   |                          |            | 14,372,904  |             |   |             | 13,214,896  |           
|                         | General and administrative                                                              |                          |            | 21,241,241  |             |   |             | 22,044,256  |           
|                         | Depreciation and amortization                                                           |                          |            | 21,255,302  |             |   |             | 20,230,711  |           
|                         |                                                                                         |                          |            |             |             |  
|                         |                                                                                         | Total operating expenses |            |             | 98,146,401  |   |             |             | 87,762,323 | 
|                         |                                                                                         |                          |            |             |             |  
|OPERATING INCOME         |                                                                                         |                          | 15,939,103 |             |             |   | 12,147,136  |            
|OTHER EXPENSE:           |                                                                                         |                          |            |             |             |   |             |            
|                         | Interest expense                                                                        |                          |            | (23,783,598 | )           |   |             | (23,675,438 | )         
|                         | Other expense, net                                                                      |                          |            | (652,434    | )           |   |             | (350,157    | )         
|                         |                                                                                         |                          |            |             |             |  
|LOSS BEFORE INCOME TAXES |                                                                                         |                          | (8,496,929 | )           |             |   | (11,878,459 | )          
|                         | Income tax benefit                                                                      |                          |            | 3,228,834   |             |   |             | 4,513,815   |           
|                         |                                                                                         |                          |            |             |             |  
|NET LOSS                 |                                                                                         | $                        | (5,268,095 | )           |             | $ | (7,364,644  | )          
|                         |                                                                                         |                          |            |             |             |  



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AMERICAN CELLULAR CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                             |                                                                                  |                                                           |                                       |            |             |            |            |             |             |            |  
|---------------------------------------------------------------------------- | -------------------------------------------------------------------------------- | --------------------------------------------------------- | ------------------------------------- | ---------- | ----------- | ---------- | ---------- | ----------- | ----------- | ---------- | -
|                                                                             |                                                                                  | For the Three Months                                      |                                      
|                                                                             |                                                                                  | Ended March 31,                                           |                                      
|                                                                             |                                                                                  |                                                           |                                      
|                                                                             |                                                                                  | 2005                                                      |                                       |            | 2004        |           
|                                                                             |                                                                                  |                                                           |                                       |            |             |           
|                                                                             |                                                                                  | (Unaudited)                                               |                                      
|CASH FLOWS FROM OPERATING ACTIVITIES:                                        |                                                                                  |                                                           |                                       |            |             |            |            |            
|                                                                             | Net loss                                                                         |                                                           | $                                     | (5,268,095 | )           |            | $          | (7,364,644  | )          
|                                                                             | Adjustments to reconcile net loss to net cash used in operating
    activities  |                                                           |                                       |            |             |            |            |             |            
|                                                                             |                                                                                  | Depreciation and amortization                             |                                       |            | 21,255,302  |            |            |             | 20,230,711  |           
|                                                                             |                                                                                  | Amortization of bond premium and deferred financing costs |                                       |            | 845,553     |            |            |             | 804,138     |           
|                                                                             |                                                                                  | Deferred income taxes                                     |                                       |            | (3,335,011  | )          |            |             | (4,677,590  | )         
|                                                                             |                                                                                  | Loss (gain) on disposition on assets, net                 |                                       |            | 6,195       |            |            |             | (5,700      | )         
|                                                                             | Changes in current assets and liabilities                                       |                                                           |                                       |            |             |            |            |             |            
|                                                                             |                                                                                  | Accounts receivable                                       |                                       |            | 4,150,630   |            |            |             | 5,329,369   |           
|                                                                             |                                                                                  | Inventory                                                 |                                       |            | 1,668,495   |            |            |             | (387,216    | )         
|                                                                             |                                                                                  | Prepaid expenses and other                                |                                       |            | (528,439    | )          |            |             | (574,052    | )         
|                                                                             |                                                                                  | Accounts payable                                          |                                       |            | 7,759,030   |            |            |             | 3,634,124   |           
|                                                                             |                                                                                  | Accrued expenses                                          |                                       |            | (27,371,980 | )          |            |             | (19,927,139 | )         
|                                                                             |                                                                                  | Deferred revenue and customer deposits                    |                                       |            | (60,420     | )          |            |             | (309,299    | )         
|                                                                             |                                                                                  |                                                           |                                       |            |             |           
|                                                                             |                                                                                  |                                                           | Net cash used in operating activities |            |             | (878,740   | )          |             |             | (3,247,298 | )
|                                                                             |                                                                                  |                                                           |                                       |            |             |           
|CASH FLOWS FROM INVESTING ACTIVITIES:                                        |                                                                                  |                                                           |                                       |            |             |            |            |            
|                                                                             | Capital expenditures                                                             |                                                           |                                       | (8,588,089 | )           |            |            | (15,253,588 | )          
|                                                                             | Change in receivable/payable  affiliates                                        |                                                           |                                       | 2,951,586  |             |            |            | 6,659,124   |            
|                                                                             | Receipt of funds held in escrow for contingencies on sold assets                 |                                                           |                                       |           |             |            |            | 4,168,615   |            
|                                                                             | Other investing activities                                                       |                                                           |                                       | (29,444    | )           |            |            | (7,545      | )          
|                                                                             |                                                                                  |                                                           |                                       |            |             |           
|                                                                             |                                                                                  |                                                           | Net cash used in investing activities |            |             | (5,665,947 | )          |             |             | (4,433,394 | )
|                                                                             |                                                                                  |                                                           |                                       |            |             |           
|CASH FLOWS FROM FINANCING ACTIVITIES:                                        |                                                                                  |                                                           |                                       |            |             |            |            |            
|                                                                             | Other financing activities                                                       |                                                           |                                       |           |             |            |            | (50,237     | )          
|                                                                             |                                                                                  |                                                           |                                       |            |             |           
|                                                                             |                                                                                  |                                                           | Net cash used in financing activities |            |             |           |            |             |             | (50,237    | )
|                                                                             |                                                                                  |                                                           |                                       |            |             |           
|NET DECREASE IN CASH AND CASH EQUIVALENTS                                    |                                                                                  |                                                           | (6,544,687                            | )          |             |            | (7,730,929 | )          
|CASH AND CASH EQUIVALENTS, beginning of period                               |                                                                                  |                                                           | 41,488,979                            |            |             |            | 27,505,267 |            
|                                                                             |                                                                                  |                                                           |                                       |            |             |           
|CASH AND CASH EQUIVALENTS, end of period                                     |                                                                                  | $                                                         | 34,944,292                            |            |             | $          | 19,774,338 |            
|                                                                             |                                                                                  |                                                           |                                       |            |             |           
|SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                           |                                                                                  |                                                           |                                       |            |             |            |            |            
|                                                                             | Cash paid for (received from)                                                   |                                                           |                                       |            |             |            |            |             |            
|                                                                             |                                                                                  | Interest                                                  |                                       | $          | 45,009,213  |            |            | $           | 43,250,000  |           
|                                                                             |                                                                                  | Income taxes                                              |                                       | $          | (29,975     | )          |            | $           | 246,503     |           
|SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING
    ACTIVITIES: |                                                                                  |                                                           |                                       |            |             |            |            |            
|                                                                             | Transfer of fixed assets from affiliates                                         |                                                           | $                                     | 2,085      |             |            | $          | 2,031       |            



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AMERICAN CELLULAR CORPORATION AND SUBSIDIARIES





NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)








|   |             
|-- | ------------
|1. | Organization





|   |                              
|-- | -----------------------------
|2. | Property, Plant and Equipment



|                                    |  |                  |          |   |              |   |         |  
|----------------------------------- |  | ---------------- | -------- | - | ------------ | - | ------- | -
|                                    |  | March 31,        |          |   | December 31, |  
|                                    |  | 2005             |          |   | 2004         |  
|                                    |  |                  |          |   |              |  
|                                    |  | ($ in thousands) |         
|Gross property, plant and equipment |  | $                | 276,617  |   |              | $ | 268,048 |  
|Accumulated depreciation            |  |                  | (108,154 | ) |              |   | (90,906 | )
|                                    |  |                  |          |   |              |  
|Property, plant and equipment, net  |  | $                | 168,463  |   |              | $ | 177,142 |  
|                                    |  |                  |          |   |              |  



|   |               
|-- | --------------
|3. | Long-Term Debt



|                               |                      |                  |         |         |              |   |         |         | 
|------------------------------ | -------------------- | ---------------- | ------- | ------- | ------------ | - | ------- | ------- | 
|                               |                      | March 31,        |         |         | December 31, |  
|                               |                      | 2005             |         |         | 2004         |  
|                               |                      |                  |         |         |              |  
|                               |                      | ($ in thousands) |        
|9.5% senior subordinated notes |                      | $                | 14,029  |         |              | $ | 13,774  |        
|10.0% senior notes             |                      |                  | 900,000 |         |              |   | 900,000 |        
|                               |                      |                  |         |         |              |  
|                               | Total long-term debt |                  | $       | 914,029 |              |   | $       | 913,774 | 
|                               |                      |                  |         |         |              |  

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##### Table of Contents



AMERICAN CELLULAR CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                              
|-- | -----------------------------
|4. | Commitments and Contingencies

Commitments.


Contingencies.


6



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##### Table of Contents








|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

The following discussion and analysis presents factors that
we believe are relevant to an assessment and understanding of
our condensed consolidated financial position and results of
operations. This financial and business analysis should be read
in conjunction with our December 31, 2004 consolidated
financial statements included in our Annual Report on
Form 10-K for the fiscal year ended December 31, 2004
and our condensed consolidated financial statements and the
notes thereto included in Item 1.


OVERVIEW






CRITICAL ACCOUNTING POLICIES AND PRACTICES






RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED
MARCH 31, 2005 AND MARCH 31, 2004




|                                                  |  |                    |           |   |      |   |           |  
|------------------------------------------------- |  | ------------------ | --------- | - | ---- | - | --------- | -
|                                                  |  | Three Months Ended |          
|                                                  |  | March 31,          |          
|                                                  |  |                    |          
|                                                  |  | 2005               |           |   | 2004 |  
|                                                  |  |                    |           |   |      |  
|Market population(1)                              |  |                    | 5,069,900 |   |      |   | 4,997,000 |  
|Ending subscribers                                |  |                    | 700,100   |   |      |   | 708,400   |  
|Market penetration(2)                             |  |                    | 13.8      | % |      |   | 14.2      | %
|Gross subscriber additions                        |  |                    | 51,500    |   |      |   | 43,600    |  
|Average subscribers                               |  |                    | 705,100   |   |      |   | 708,800   |  
|Average monthly service revenue per subscriber(3) |  | $                  | 41        |   |      | $ | 36        |  
|Average monthly post-paid churn(4)                |  |                    | 2.5       | % |      |   | 1.8       | %






|    |                                                                                                                                                                                                                                                                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents the population in our licensed areas for the period
    indicated. The results are based upon the 2003 population
    estimates provided by MapInfo Corporation, a location software
    company, adjusted to exclude those portions of our rural service
    areas, or RSAs, and metropolitan statistical areas, or MSAs, not
    covered by our licenses.
|   
|(2) | Market penetration is calculated by dividing ending subscribers
    by market population.                                                                                                                                                                                                                                                                             

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|    |                                                                                                                                                                                                                                                                                                 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | Average monthly service revenue per subscriber is calculated by
    dividing service revenue by average subscribers and dividing by
    the number of months in the period. We exclude roaming revenue
    from this calculation, since roaming revenue is not derived from
    our subscribers.
|   
|(4) | Average monthly post-paid churn represents the percentage of the
    post-paid subscribers which deactivate service each month. The
    calculation divides the total post-paid deactivations during the
    period by the average post-paid subscribers for the period.                        



| |                      
| | ---------------------
| | Basis of Presentation



|                         |                                                                                               |                          |        |         |            |   |         |           |        |  |      |      |      |  
|------------------------ | --------------------------------------------------------------------------------------------- | ------------------------ | ------ | ------- | ---------- | - | ------- | --------- | ------ |  | ---- | ---- | ---- | -
|                         |                                                                                               | Three Months Ended       |        |         |           
|                         |                                                                                               | March 31,                |        |         | Percentage |  
|                         |                                                                                               |                          |        |         | Changes    |  
|                         |                                                                                               | 2005                     |        |         | 2004       |   |         | 05 vs. 04 |       
|                         |                                                                                               |                          |        |         |            |   |         |           |       
|                         |                                                                                               | ($ in thousands)         |        |         |           
|Operating revenue:       |                                                                                               |                          |        |         |            |   |         |           |        |  |      |     
|                         | Service revenue                                                                               |                          | $      | 86,558  |            |   | $       | 77,372    |        |  |      | 11.9 | %   
|                         | Roaming revenue                                                                               |                          |        | 22,519  |            |   |         | 18,113    |        |  |      | 24.3 | %   
|                         | Equipment and other revenue                                                                   |                          |        | 5,008   |            |   |         | 4,424     |        |  |      | 13.2 | %   
|                         |                                                                                               |                          |        |         |            |   |         |           |       
|                         |                                                                                               | Total operating revenue  |        |         | 114,085    |   |         |           | 99,909 |  |      |      | 14.2 | %
|                         |                                                                                               |                          |        |         |            |   |         |           |       
|Operating expenses:      |                                                                                               |                          |        |         |            |   |         |           |        |  |      |     
|                         | Cost of service (exclusive of depreciation and amortization
    items shown separately below) |                          |        | 29,619  |            |   |         | 22,148    |        |  |      | 33.7 | %   
|                         | Cost of equipment                                                                             |                          |        | 11,658  |            |   |         | 10,124    |        |  |      | 15.2 | %   
|                         | Marketing and selling                                                                         |                          |        | 14,373  |            |   |         | 13,215    |        |  |      | 8.8  | %   
|                         | General and administrative                                                                    |                          |        | 21,241  |            |   |         | 22,044    |        |  |      | (3.6 | )%  
|                         | Depreciation and amortization                                                                 |                          |        | 21,255  |            |   |         | 20,231    |        |  |      | 5.1  | %   
|                         |                                                                                               |                          |        |         |            |   |         |           |       
|                         |                                                                                               | Total operating expenses |        |         | 98,146     |   |         |           | 87,762 |  |      |      | 11.8 | %
|                         |                                                                                               |                          |        |         |            |   |         |           |       
|Operating income         |                                                                                               |                          | 15,939 |         |            |   | 12,147  |           |        |  | 31.2 | %   
|                         | Interest expense                                                                              |                          |        | (23,784 | )          |   |         | (23,675   | )      |  |      | 0.5  | %   
|                         | Other expense, net                                                                            |                          |        | (652    | )          |   |         | (350      | )      |  |      | 86.3 | %   
|                         |                                                                                               |                          |        |         |            |   |         |           |       
|Loss before income taxes |                                                                                               |                          | (8,497 | )       |            |   | (11,878 | )         |        |  | 28.5 | %   
|                         | Income tax benefit                                                                            |                          |        | 3,229   |            |   |         | 4,513     |        |  |      | *    |     
|                         |                                                                                               |                          |        |         |            |   |         |           |       
|Net loss                 |                                                                                               | $                        | (5,268 | )       |            | $ | (7,365  | )         |        |  | 28.5 | %   
|                         |                                                                                               |                          |        |         |            |   |         |           |       






|  |                              
|- | -----------------------------
|* | Calculation is not meaningful



| |            
| | -----------
| | Subscribers



8



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##### Table of Contents









| |                  
| | -----------------
| | Operating Revenue



Service revenue.




Roaming revenue.




9



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##### Table of Contents





Equipment and other revenue.






| |                   
| | ------------------
| | Operating Expenses



Cost of service.




|              |                       |                              |        |        |            |  |      |        |   |   |            |        |  |  |      |       |  
|------------- | --------------------- | ---------------------------- | ------ | ------ | ---------- |  | ---- | ------ | - | - | ---------- | ------ |  |  | ---- | ----- | -
|              |                       | Three Months Ended March 31, |       
|              |                       |                              |       
|              |                       | 2005                         |        |        | 2004       | 
|              |                       |                              |        |        |            | 
|              |                       | Amount                       |        |        | Percentage |  |      | Amount |   |   | Percentage |       
|              |                       |                              |        |        |            |  |      |        |   |   |            |       
|              |                       | ($ in thousands)             |       
|Network costs |                       | $                            | 18,935 |        |            |  | 63.9 | %      |   | $ | 13,984     |        |  |  | 63.1 | %    
|Roaming costs |                       |                              | 10,684 |        |            |  | 36.1 | %      |   |   | 8,164      |        |  |  | 36.9 | %    
|              |                       |                              |        |        |            |  |      |        |   |   |            |       
|              | Total cost of service |                              | $      | 29,619 |            |  |      | 100.0  | % |   | $          | 22,148 |  |  |      | 100.0 | %
|              |                       |                              |        |        |            |  |      |        |   |   |            |       





Cost of equipment.


10



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##### Table of Contents







Marketing and selling costs.




General and administrative expenses.




Depreciation and amortization.






| |                      
| | ---------------------
| | Non-Operating Results

Interest expense.


LIQUIDITY AND CAPITAL RESOURCES






11



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##### Table of Contents







| |                                  
| | ---------------------------------
| | Working Capital and Net Cash Flow











| |                  
| | -----------------
| | Capital Resources







| |   |                                                                                         
| | - | ----------------------------------------------------------------------------------------
| |  | incur indebtedness;                                                                     
|
| |  | incur or assume liens;                                                                  
|
| |  | pay dividends or make other restricted payments;                                        
|
| |  | impose dividend or other payment restrictions affecting our
    restricted subsidiaries;
|
| |  | issue and sell capital stock of our restricted subsidiaries;                            
|
| |  | issue certain capital stock;                                                            

12



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##### Table of Contents





| |   |                                                                                
| | - | -------------------------------------------------------------------------------
| |  | issue guarantees of indebtedness;                                              
|
| |  | enter into transactions with affiliates;                                       
|
| |  | sell assets;                                                                   
|
| |  | engage in unpermitted lines of business;                                       
|
| |  | enter into sale and leaseback transactions; and                                
|
| |  | merge or consolidate with or transfer substantial assets to
    another entity.



| |           
| | ----------
| | Tower Sale





| |                                     
| | ------------------------------------
| | Capital Expenditures and Commitments







| |                        
| | -----------------------
| | Contractual Obligations





FORWARD-LOOKING STATEMENTS




13



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##### Table of Contents








|        |                                                               
|------- | --------------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures about Market
    Risk








|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures



14



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##### Table of Contents






PART II. OTHER INFORMATION







|        |                  
|------- | -----------------
|Item 1. | Legal Proceedings








|        |                                                                
|------- | ---------------------------------------------------------------
|Item 2. | Unregistered Sales of Equity Securities and Use of
    Proceeds








|        |                                
|------- | -------------------------------
|Item 3. | Defaults Upon Senior Securities








|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders








|        |                  
|------- | -----------------
|Item 5. | Other Information








|        |         
|------- | --------
|Item 6. | Exhibits



|        |    |             |  |                                                                                                                                |  |  |     | 
|------- | -- | ----------- |  | ------------------------------------------------------------------------------------------------------------------------------ |  |  | --- | 
|Exhibit |    |             |  | Method of                                                                                                                     
|Numbers |    | Description |  | Filing                                                                                                                        
|        |    |             |  |                                                                                                                               
|        | 10 | .1*         |  | Equity Interest Purchase Agreement dated March 14, 2005 by
    and between Global Tower, LLC and American Cellular Corporation |  |  | (1) | 
|        | 31 | .1          |  | Rule 15d-14(a) Certification by our principal executive
    officer                                                            |  |  | (1) | 
|        | 31 | .2          |  | Rule 15d-14(a) Certification by our principal financial
    officer                                                            |  |  | (1) | 
|        | 32 | .1          |  | Section 1350 Certification by our principal executive
    officer                                                              |  |  | (1) | 
|        | 32 | .2          |  | Section 1350 Certification by our principal financial
    officer                                                              |  |  | (1) | 






| |   |                                                                              
| | - | -----------------------------------------------------------------------------
| | * | Confidential treatment has been requested for a portion of this
    document.



|    |                
|--- | ---------------
|(1) | Filed herewith.

15



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##### Table of Contents



SIGNATURES






| |                                  
| | ---------------------------------
| | American Cellular
    Corporation



| |                            
| | ---------------------------
| | /s/ Everett R. Dobson      
| |                            
| | Everett R. Dobson          
| | Chairman of the Board and  
| | principal executive officer



| |                            
| | ---------------------------
| | /s/ Bruce R. Knooihuizen   
| |                            
| | Bruce R. Knooihuizen       
| | Executive Vice President,  
| | Chief Financial Officer and
| | principal financial officer

16



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##### Table of Contents



INDEX TO EXHIBITS


|        |    |             |  |                                                                                                                                |  |  |     | 
|------- | -- | ----------- |  | ------------------------------------------------------------------------------------------------------------------------------ |  |  | --- | 
|Exhibit |    |             |  | Method of                                                                                                                     
|Numbers |    | Description |  | Filing                                                                                                                        
|        |    |             |  |                                                                                                                               
|        | 10 | .1*         |  | Equity Interest Purchase Agreement dated March 14, 2005 by
    and between Global Tower, LLC and American Cellular Corporation |  |  | (1) | 
|        | 31 | .1          |  | Rule 15d-14(a) Certification by our principal executive
    officer                                                            |  |  | (1) | 
|        | 31 | .2          |  | Rule 15d-14(a) Certification by our principal financial
    officer                                                            |  |  | (1) | 
|        | 32 | .1          |  | Section 1350 Certification by our principal executive
    officer                                                              |  |  | (1) | 
|        | 32 | .2          |  | Section 1350 Certification by our principal financial
    officer                                                              |  |  | (1) | 






| |   |                                                                              
| | - | -----------------------------------------------------------------------------
| | * | Confidential treatment has been requested for a portion of this
    document.



|    |                
|--- | ---------------
|(1) | Filed herewith.