##### 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 September 30, 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(State or other jurisdiction of
    incorporation or organization)             |  | 22-3043811(I.R.S. Employer
    Identification No.)
|                                                                                      
|14201 Wireless Way
    Oklahoma City, Oklahoma(Address of principal executive offices) |  | 73134(Zip Code)                                   

(405) 529-8500


(Registrants telephone number, including area code)





o o




o þ


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
    September 30, 2005
    and           December 31,
    2004              |  |      | 2  | 
|                                                                |  | Condensed Consolidated Statements of
    Operations for the Three and Nine Months Ended
    September 30, 2005 and 2004 |  |      | 3  | 
|                                                                |  | Condensed Consolidated Statements of Cash
    Flows for the Nine Months Ended September 30, 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                                                          |  |      | 16 | 
|4                                                               |  | Controls and Procedures                                                                                                 |  |      | 16 | 
|PART II. OTHER INFORMATION                                     
|1                                                               |  | Legal Proceedings                                                                                                       |  |      | 17 | 
|2                                                               |  | Unregistered Sales of Equity Securities and
    Use of Proceeds                                                         |  |      | 17 | 
|3                                                               |  | Defaults Upon Senior Securities                                                                                         |  |      | 17 | 
|4                                                               |  | Submission of Matters to a Vote of Security
    Holders                                                                 |  |      | 17 | 
|5                                                               |  | Other Information                                                                                                       |  |      | 17 | 
|6                                                               |  | Exhibits                                                                                                                |  |      | 17 | 
|Rule 15d-14(a) Certification by our Principal Executive Officer
|Rule 15d-14(a) Certification by our Principal Financial Officer
|Section 1350 Certification by our Principal Executive Officer  
|Section 1350 Certification by our 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


|                                            |                                                                                        |                            |                                            |             |                   |               |             |             |               |               | 
|------------------------------------------- | -------------------------------------------------------------------------------------- | -------------------------- | ------------------------------------------ | ----------- | ----------------- | ------------- | ----------- | ----------- | ------------- | ------------- | 
|                                            |                                                                                        | September 30, 2005         |                                            |             | December 31, 2004 |              
|                                            |                                                                                        |                            |                                            |             |                   |              
|                                            |                                                                                        | (Unaudited)                |                                            |             |                  
|ASSETS                                     
|CURRENT ASSETS:                             |                                                                                        |                            |                                            |             |                   |               |             |            
|                                            | Cash and cash equivalents                                                              |                            | $                                          | 55,683,580  |                   |               | $           | 41,488,979  |              
|                                            | Accounts receivable                                                                    |                            |                                            | 53,045,616  |                   |               |             | 40,412,508  |              
|                                            | Inventory                                                                              |                            |                                            | 4,455,127   |                   |               |             | 5,153,250   |              
|                                            | Deferred tax assets                                                                    |                            |                                            | 5,184,000   |                   |               |             | 4,207,000   |              
|                                            | Prepaid expenses                                                                       |                            |                                            | 3,753,722   |                   |               |             | 2,858,438   |              
|                                            |                                                                                        |                            |                                            |             |                   |              
|                                            |                                                                                        | Total current assets       |                                            |             | 122,122,045       |               |             |             | 94,120,175    |              
|                                            |                                                                                        |                            |                                            |             |                   |              
|PROPERTY, PLANT AND EQUIPMENT, net (Note 3) |                                                                                        |                            | 163,544,572                                |             |                   |               | 177,141,717 |            
|                                            |                                                                                        |                            |                                            |             |                   |              
|OTHER ASSETS:                               |                                                                                        |                            |                                            |             |                   |               |             |            
|                                            | Restricted assets                                                                      |                            |                                            | 22,219      |                   |               |             |            |              
|                                            | Wireless license acquisition costs                                                     |                            |                                            | 679,434,666 |                   |               |             | 669,168,756 |              
|                                            | Goodwill                                                                               |                            |                                            | 574,813,057 |                   |               |             | 572,113,347 |              
|                                            | Deferred financing costs, net                                                          |                            |                                            | 14,018,071  |                   |               |             | 15,784,770  |              
|                                            | Customer list, net                                                                     |                            |                                            | 47,454,333  |                   |               |             | 59,253,333  |              
|                                            | Assets held for sale                                                                   |                            |                                            | 97,158      |                   |               |             |            |              
|                                            | Other non-current assets                                                               |                            |                                            | 649,414     |                   |               |             | 696,846     |              
|                                            |                                                                                        |                            |                                            |             |                   |              
|                                            |                                                                                        | Total other assets         |                                            |             | 1,316,488,918     |               |             |             | 1,317,017,052 |              
|                                            |                                                                                        |                            |                                            |             |                   |              
|                                            |                                                                                        |                            | Total assets                               |             | $                 | 1,602,155,535 |             |             | $             | 1,588,278,944 | 
|                                            |                                                                                        |                            |                                            |             |                   |              
|LIABILITIES AND STOCKHOLDERS EQUITY       
|CURRENT LIABILITIES:                        |                                                                                        |                            |                                            |             |                   |               |             |            
|                                            | Accounts payable                                                                       |                            | $                                          | 14,805,726  |                   |               | $           | 10,297,625  |              
|                                            | Accounts payable  affiliates                                                          |                            |                                            | 9,198,489   |                   |               |             | 6,182,755   |              
|                                            | Accrued expenses                                                                       |                            |                                            | 12,980,989  |                   |               |             | 13,140,622  |              
|                                            | Accrued interest payable                                                               |                            |                                            | 15,792,882  |                   |               |             | 37,867,260  |              
|                                            | Deferred revenue and customer deposits                                                 |                            |                                            | 12,930,029  |                   |               |             | 13,026,284  |              
|                                            |                                                                                        |                            |                                            |             |                   |              
|                                            |                                                                                        | Total current liabilities  |                                            |             | 65,708,115        |               |             |             | 80,514,546    |              
|                                            |                                                                                        |                            |                                            |             |                   |              
|OTHER LIABILITIES:                          |                                                                                        |                            |                                            |             |                   |               |             |            
|                                            | Notes payable, net (Note 4)                                                            |                            |                                            | 914,538,462 |                   |               |             | 913,773,624 |              
|                                            | Deferred tax liabilities                                                               |                            |                                            | 163,087,287 |                   |               |             | 160,231,500 |              
|                                            | Deferred gain on disposition of operating assets and other
    non-current liabilities |                            |                                            | 29,455,678  |                   |               |             | 4,161,627   |              
|                                            | Commitments (Note 5)                                                                   |                            |                                            |             |                   |               |             |             |              
|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                                                                    |                            |                                            | (45,181,259 | )                 |               |             | (44,949,605 | )            
|                                            |                                                                                        |                            |                                            |             |                   |              
|                                            |                                                                                        | Total stockholders equity |                                            |             | 429,365,993       |               |             |             | 429,597,647   |              
|                                            |                                                                                        |                            |                                            |             |                   |              
|                                            |                                                                                        |                            | Total liabilities and stockholders equity |             | $                 | 1,602,155,535 |             |             | $             | 1,588,278,944 | 
|                                            |                                                                                        |                            |                                            |             |                   |              



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AMERICAN CELLULAR CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


|                                  |                                                                                         |                            |            |             |                           |   |            |             |             |   |            |             |             |   |             |             |             | 
|--------------------------------- | --------------------------------------------------------------------------------------- | -------------------------- | ---------- | ----------- | ------------------------- | - | ---------- | ----------- | ----------- | - | ---------- | ----------- | ----------- | - | ----------- | ----------- | ----------- | 
|                                  |                                                                                         | For the Three Months Ended |            |             | For the Nine Months Ended |  
|                                  |                                                                                         | September 30,              |            |             | September 30,             |  
|                                  |                                                                                         |                            |            |             |                           |  
|                                  |                                                                                         | 2005                       |            |             | 2004                      |   |            | 2005        |             |   | 2004       |            
|                                  |                                                                                         |                            |            |             |                           |   |            |             |             |   |            |            
|                                  |                                                                                         | (Unaudited)                |            |             | (Unaudited)               |  
|OPERATING REVENUE:                |                                                                                         |                            |            |             |                           |   |            |             |             |   |            |             |             |   |             |            
|                                  | Service revenue                                                                         |                            | $          | 92,712,559  |                           |   | $          | 84,008,184  |             |   | $          | 270,120,374 |             |   | $           | 241,208,869 |            
|                                  | Roaming revenue                                                                         |                            |            | 34,658,745  |                           |   |            | 26,525,298  |             |   |            | 83,341,930  |             |   |             | 66,039,064  |            
|                                  | Equipment and other revenue                                                             |                            |            | 4,794,133   |                           |   |            | 3,973,009   |             |   |            | 15,740,661  |             |   |             | 14,061,874  |            
|                                  |                                                                                         |                            |            |             |                           |   |            |             |             |   |            |            
|                                  |                                                                                         | Total operating revenue    |            |             | 132,165,437               |   |            |             | 114,506,491 |   |            |             | 369,202,965 |   |             |             | 321,309,807 | 
|                                  |                                                                                         |                            |            |             |                           |   |            |             |             |   |            |            
|OPERATING EXPENSES:               |                                                                                         |                            |            |             |                           |   |            |             |             |   |            |             |             |   |             |            
|                                  | Cost of service (exclusive of depreciation and amortization
    shown separately below) |                            |            | 30,871,850  |                           |   |            | 26,632,889  |             |   |            | 87,380,767  |             |   |             | 72,392,143  |            
|                                  | Cost of equipment                                                                       |                            |            | 13,448,679  |                           |   |            | 11,582,305  |             |   |            | 37,875,095  |             |   |             | 34,534,252  |            
|                                  | Marketing and selling                                                                   |                            |            | 15,003,570  |                           |   |            | 14,342,789  |             |   |            | 44,270,890  |             |   |             | 42,805,593  |            
|                                  | General and administrative                                                              |                            |            | 22,296,760  |                           |   |            | 21,932,583  |             |   |            | 66,715,318  |             |   |             | 65,665,116  |            
|                                  | Depreciation and amortization                                                           |                            |            | 20,356,770  |                           |   |            | 20,881,069  |             |   |            | 62,773,512  |             |   |             | 62,030,537  |            
|                                  | Gain on disposition of operating assets                                                 |                            |            | (648,566    | )                         |   |            |            |             |   |            | (1,587,704  | )           |   |             |            |            
|                                  |                                                                                         |                            |            |             |                           |   |            |             |             |   |            |            
|                                  |                                                                                         | Total operating expenses   |            |             | 101,329,063               |   |            |             | 95,371,635  |   |            |             | 297,427,878 |   |             |             | 277,427,641 | 
|                                  |                                                                                         |                            |            |             |                           |   |            |             |             |   |            |            
|OPERATING INCOME                  |                                                                                         |                            | 30,836,374 |             |                           |   | 19,134,856 |             |             |   | 71,775,087 |             |             |   | 43,882,166  |            
|OTHER EXPENSE:                    |                                                                                         |                            |            |             |                           |   |            |             |             |   |            |             |             |   |             |            
|                                  | Interest expense                                                                        |                            |            | (23,781,690 | )                         |   |            | (23,971,275 | )           |   |            | (71,343,502 | )           |   |             | (71,339,009 | )          
|                                  | Other expense, net                                                                      |                            |            | (399,924    | )                         |   |            | (615,360    | )           |   |            | (1,498,253  | )           |   |             | (1,969,041  | )          
|                                  |                                                                                         |                            |            |             |                           |   |            |             |             |   |            |            
|INCOME (LOSS) BEFORE INCOME TAXES |                                                                                         |                            | 6,654,760  |             |                           |   | (5,451,779 | )           |             |   | (1,066,668 | )           |             |   | (29,425,884 | )          
|                                  | Income tax (expense) benefit                                                            |                            |            | (2,099,129  | )                         |   |            | 2,071,675   |             |   |            | 835,014     |             |   |             | 11,181,836  |            
|                                  |                                                                                         |                            |            |             |                           |   |            |             |             |   |            |            
|NET INCOME (LOSS)                 |                                                                                         | $                          | 4,555,631  |             |                           | $ | (3,380,104 | )           |             | $ | (231,654   | )           |             | $ | (18,244,048 | )          
|                                  |                                                                                         |                            |            |             |                           |   |            |             |             |   |            |            



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AMERICAN CELLULAR CORPORATION AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                                                    |                                                                  |                            |                                           |             |         |             |             |             |         |             |  
|------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | -------------------------- | ----------------------------------------- | ----------- | ------- | ----------- | ----------- | ----------- | ------- | ----------- | -
|                                                                                                                    |                                                                  | For the Nine Months Ended  |                                          
|                                                                                                                    |                                                                  | September 30,              |                                          
|                                                                                                                    |                                                                  |                            |                                          
|                                                                                                                    |                                                                  | 2005                       |                                           |             | 2004    |            
|                                                                                                                    |                                                                  |                            |                                           |             |         |            
|                                                                                                                    |                                                                  | (Unaudited)                |                                          
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                                               |                                                                  |                            |                                           |             |         |             |             |            
|Net loss                                                                                                            |                                                                  | $                          | (231,654                                  | )           |         | $           | (18,244,048 | )          
|Adjustments to reconcile net loss to net cash provided by
    operating activities, net of effects of acquisition  |                                                                  |                            |                                           |             |         |             |             |            
|                                                                                                                    | Depreciation and amortization                                    |                            |                                           | 62,773,512  |         |             |             | 62,030,537  |        
|                                                                                                                    | Amortization of bond premium and deferred financing costs        |                            |                                           | 2,536,824   |         |             |             | 2,454,611   |        
|                                                                                                                    | Deferred income taxes                                            |                            |                                           | (820,923    | )       |             |             | (11,615,723 | )      
|                                                                                                                    | Gain on disposition of operating assets                          |                            |                                           | (1,587,704  | )       |             |             |            |        
|                                                                                                                    | Other operating activities                                       |                            |                                           | 5,928       |         |             |             | 23,591      |        
|Changes in current assets and liabilities                                                                          |                                                                  |                            |                                           |             |         |             |             |            
|                                                                                                                    | Accounts receivable                                              |                            |                                           | (12,633,108 | )       |             |             | 2,511,953   |        
|                                                                                                                    | Inventory                                                        |                            |                                           | 698,123     |         |             |             | (1,525,118  | )      
|                                                                                                                    | Prepaid expenses and other                                       |                            |                                           | (895,503    | )       |             |             | (1,266,015  | )      
|                                                                                                                    | Accounts payable                                                 |                            |                                           | 4,508,101   |         |             |             | (6,205,569  | )      
|                                                                                                                    | Accrued expenses                                                 |                            |                                           | (22,234,011 | )       |             |             | (19,326,804 | )      
|                                                                                                                    | Deferred revenue and customer deposits                           |                            |                                           | (96,255     | )       |             |             | (27,257     | )      
|                                                                                                                    |                                                                  |                            |                                           |             |         |            
|                                                                                                                    |                                                                  |                            | Net cash provided by operating activities |             |         | 32,023,330  |             |             |         | 8,810,158   |  
|                                                                                                                    |                                                                  |                            |                                           |             |         |            
|CASH FLOWS FROM INVESTING ACTIVITIES:                                                                               |                                                                  |                            |                                           |             |         |             |             |            
|                                                                                                                    | Capital expenditures                                             |                            |                                           | (36,266,014 | )       |             |             | (34,450,651 | )      
|                                                                                                                    | Purchase of wireless licenses and properties                     |                            |                                           | (15,174,662 | )       |             |             |            |        
|                                                                                                                    | Proceeds from sale of property, plant and equipment              |                            |                                           | 30,948,317  |         |             |             | 28,051      |        
|                                                                                                                    | Change in receivable/payable  affiliates                        |                            |                                           | 2,980,411   |         |             |             | 1,264,276   |        
|                                                                                                                    | Receipt of funds held in escrow for contingencies on sold assets |                            |                                           |            |         |             |             | 4,168,615   |        
|                                                                                                                    | Other investing activities                                       |                            |                                           | (289,494    | )       |             |             | (78,200     | )      
|                                                                                                                    |                                                                  |                            |                                           |             |         |            
|                                                                                                                    |                                                                  |                            | Net cash used in investing activities     |             |         | (17,801,442 | )           |             |         | (29,067,909 | )
|                                                                                                                    |                                                                  |                            |                                           |             |         |            
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                                               |                                                                  |                            |                                           |             |         |             |             |            
|                                                                                                                    |                                                                  | Other financing activities |                                           |             | (27,287 | )           |             |             | (81,075 | )          
|                                                                                                                    |                                                                  |                            |                                           |             |         |            
|                                                                                                                    |                                                                  |                            | Net cash used in financing activities     |             |         | (27,287     | )           |             |         | (81,075     | )
|                                                                                                                    |                                                                  |                            |                                           |             |         |            
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                |                                                                  |                            | 14,194,601                                |             |         |             | (20,338,826 | )          
|CASH AND CASH EQUIVALENTS, beginning of period                                                                      |                                                                  |                            | 41,488,979                                |             |         |             | 27,505,267  |            
|                                                                                                                    |                                                                  |                            |                                           |             |         |            
|CASH AND CASH EQUIVALENTS, end of period                                                                            |                                                                  | $                          | 55,683,580                                |             |         | $           | 7,166,441   |            
|                                                                                                                    |                                                                  |                            |                                           |             |         |            
|SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                                                                  |                                                                  |                            |                                           |             |         |             |             |            
|Cash paid for                                                                                                      |                                                                  |                            |                                           |             |         |             |             |            
|                                                                                                                    | Interest                                                         |                            | $                                         | 90,875,165  |         |             | $           | 89,109,750  |        
|                                                                                                                    | Income taxes                                                     |                            | $                                         | 62,050      |         |             | $           | 278,960     |        
|SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING
    ACTIVITIES:                                        |                                                                  |                            |                                           |             |         |             |             |            
|                                                                                                                    | Transfer of fixed assets from affiliates                         |                            | $                                         | 35,323      |         |             | $           | 12,140      |        



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AMERICAN CELLULAR CORPORATION AND SUBSIDIARIES





NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)








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







|   |                      
|-- | ---------------------
|2. | Business Combinations







|   |                              
|-- | -----------------------------
|3. | Property, Plant and Equipment



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AMERICAN CELLULAR CORPORATION AND SUBSIDIARIES


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                    |  |                  |          |   |              |   |         |  
|----------------------------------- |  | ---------------- | -------- | - | ------------ | - | ------- | -
|                                    |  | September 30,    |          |   | December 31, |  
|                                    |  | 2005             |          |   | 2004         |  
|                                    |  |                  |          |   |              |  
|                                    |  | ($ in thousands) |         
|Gross property, plant and equipment |  | $                | 304,246  |   |              | $ | 268,048 |  
|Accumulated depreciation            |  |                  | (140,701 | ) |              |   | (90,906 | )
|                                    |  |                  |          |   |              |  
|Property, plant and equipment, net  |  | $                | 163,545  |   |              | $ | 177,142 |  
|                                    |  |                  |          |   |              |  



| |                          
| | -------------------------
| | Tower Sale and Lease Back





|   |              
|-- | -------------
|4. | Notes Payable



|                                                |                     |                  |         |         |              |   |         |         | 
|----------------------------------------------- | ------------------- | ---------------- | ------- | ------- | ------------ | - | ------- | ------- | 
|                                                |                     | September 30,    |         |         | December 31, |  
|                                                |                     | 2005             |         |         | 2004         |  
|                                                |                     |                  |         |         |              |  
|                                                |                     | ($ in thousands) |        
|9.5% senior subordinated notes, net of discount |                     | $                | 14,538  |         |              | $ | 13,774  |        
|10.0% senior notes                              |                     |                  | 900,000 |         |              |   | 900,000 |        
|                                                |                     |                  |         |         |              |  
|                                                | Total notes payable |                  | $       | 914,538 |              |   | $       | 913,774 | 
|                                                |                     |                  |         |         |              |  



|   |                              
|-- | -----------------------------
|5. | Commitments and Contingencies

Commitments.


Contingencies.


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| |         |                                                                                          
| | ------- | -----------------------------------------------------------------------------------------
| | 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






ACQUISITIONS


Acquisition of Pennsylvania 4 RSA.


NEW ROAMING AGREEMENT WITH CINGULAR WIRELESS




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| |   |                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Mutual agreement to lower rates, with us paying Cingular a flat
    incollect rate through mid-2009 that is approximately half the
    blended rate in previous roaming agreements;
|
| |  | Agreement to continue to mutually prefer one another for roaming
    through the new roaming agreement, which has been extended
    approximately one year through mid-2009; and   
|
| |  | The new roaming agreement provides for home-on-home
    roaming in areas where both carriers operate.                                                                            

RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2005 AND 2004




|                                                  |  |                    |           |   |                   |   |           |      |  |   |           |   |  |   |           |  
|------------------------------------------------- |  | ------------------ | --------- | - | ----------------- | - | --------- | ---- |  | - | --------- | - |  | - | --------- | -
|                                                  |  | Three Months Ended |           |   | Nine Months Ended |  
|                                                  |  | September 30,      |           |   | September 30,     |  
|                                                  |  |                    |           |   |                   |  
|                                                  |  | 2005               |           |   | 2004              |   |           | 2005 |  |   | 2004      |  
|                                                  |  |                    |           |   |                   |   |           |      |  |   |           |  
|Market population(1)                              |  |                    | 5,166,500 |   |                   |   | 4,997,000 |      |  |   | 5,166,500 |   |  |   | 4,997,000 |  
|Ending subscribers                                |  |                    | 682,200   |   |                   |   | 719,000   |      |  |   | 682,200   |   |  |   | 719,000   |  
|Market penetration(2)                             |  |                    | 13.2      | % |                   |   | 14.4      | %    |  |   | 13.2      | % |  |   | 14.4      | %
|Gross subscriber additions                        |  |                    | 54,600    |   |                   |   | 54,200    |      |  |   | 159,800   |   |  |   | 146,200   |  
|Average subscribers                               |  |                    | 688,600   |   |                   |   | 716,400   |      |  |   | 696,800   |   |  |   | 712,600   |  
|Average monthly service revenue per subscriber(3) |  | $                  | 45        |   |                   | $ | 39        |      |  | $ | 43        |   |  | $ | 38        |  
|Average monthly post-paid churn(4)                |  |                    | 2.9       | % |                   |   | 1.9       | %    |  |   | 2.5       | % |  |   | 1.7       | %






|    |                                                                                                                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 RSAs and
    metropolitan statistical areas, or MSAs, not covered by our
    licenses.
|   
|(2) | Market penetration is calculated by dividing ending subscribers
    by market population.                                                                                                                                                                                                                                                    
|   
|(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.                                                                     

8



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##### Table of Contents





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



|                                  |                                                                                         |                          |                         |         |                   |         |        |               |        |                    |               |         |         |             |         |         |             |         |       |       |     |      |      |       |     |      |  
|--------------------------------- | --------------------------------------------------------------------------------------- | ------------------------ | ----------------------- | ------- | ----------------- | ------- | ------ | ------------- | ------ | ------------------ | ------------- | ------- | ------- | ----------- | ------- | ------- | ----------- | ------- | ----- | ----- | --- | ---- | ---- | ----- | --- | ---- | -
|                                  |                                                                                         |                          |                         |         |                   |         |        |               |        | Percentage Changes |              
|                                  |                                                                                         |                          |                         |         |                   |         |       
|                                  |                                                                                         | Three Months Ended       |                         |         | Nine Months Ended |         |        | Three Months  |        |                    | Nine Months   |        
|                                  |                                                                                         | September 30,            |                         |         | September 30,     |         |        | Ended         |        |                    | Ended         |        
|                                  |                                                                                         |                          |                         |         |                   |         |        | September 30, |        |                    | September 30, |        
|                                  |                                                                                         | 2005                     |                         |         | 2004              |         |        | 2005          |        |                    | 2004          |         |         | 05 vs. 04 |         |         | 05 vs. 04 |        
|                                  |                                                                                         |                          |                         |         |                   |         |        |               |        |                    |               |         |         |             |         |         |             |        
|                                  |                                                                                         | ($ In thousands)         |                         |         | ($ In thousands)  |         |        |               |        |                   
|Operating Revenue:                |                                                                                         |                          |                         |         |                   |         |        |               |        |                    |               |         |         |             |         |         |             |         |       |       |     |      |      |      
|                                  | Service revenue                                                                         |                          | $                       | 92,712  |                   |         | $      | 84,008        |        |                    | $             | 270,120 |         |             | $       | 241,209 |             |         |       | 10.4  | %   |      |      | 12.0  | %  
|                                  | Roaming revenue                                                                         |                          |                         | 34,659  |                   |         |        | 26,526        |        |                    |               | 83,342  |         |             |         | 66,039  |             |         |       | 30.7  | %   |      |      | 26.2  | %  
|                                  | Equipment and other revenue                                                             |                          |                         | 4,794   |                   |         |        | 3,973         |        |                    |               | 15,741  |         |             |         | 14,062  |             |         |       | 20.7  | %   |      |      | 11.9  | %  
|                                  |                                                                                         |                          |                         |         |                   |         |        |               |        |                    |               |         |         |             |         |         |             |        
|                                  |                                                                                         |                          | Total operating revenue |         |                   | 132,165 |        |               |        | 114,507            |               |         |         | 369,203     |         |         |             | 321,310 |       |       |     | 15.4 | %    |       |     | 14.9 | %
|                                  |                                                                                         |                          |                         |         |                   |         |        |               |        |                    |               |         |         |             |         |         |             |        
|Operating Expenses:               |                                                                                         |                          |                         |         |                   |         |        |               |        |                    |               |         |         |             |         |         |             |         |       |       |     |      |      |      
|                                  | Cost of service (exclusive of depreciation and amortization
    shown separately below) |                          |                         | 30,872  |                   |         |        | 26,633        |        |                    |               | 87,381  |         |             |         | 72,392  |             |         |       | 15.9  | %   |      |      | 20.7  | %  
|                                  | Cost of equipment                                                                       |                          |                         | 13,448  |                   |         |        | 11,582        |        |                    |               | 37,875  |         |             |         | 34,534  |             |         |       | 16.1  | %   |      |      | 9.7   | %  
|                                  | Marketing and selling                                                                   |                          |                         | 15,004  |                   |         |        | 14,343        |        |                    |               | 44,271  |         |             |         | 42,806  |             |         |       | 4.6   | %   |      |      | 3.4   | %  
|                                  | General and administrative                                                              |                          |                         | 22,296  |                   |         |        | 21,933        |        |                    |               | 66,715  |         |             |         | 65,665  |             |         |       | 1.7   | %   |      |      | 1.6   | %  
|                                  | Depreciation and amortization                                                           |                          |                         | 20,358  |                   |         |        | 20,881        |        |                    |               | 62,774  |         |             |         | 62,031  |             |         |       | (2.5  | )%  |      |      | 1.2   | %  
|                                  | Gain on disposition of operating assets                                                 |                          |                         | (649    | )                 |         |        |              |        |                    |               | (1,588  | )       |             |         |        |             |         |       | **    |     |      |      | **    |    
|                                  |                                                                                         |                          |                         |         |                   |         |        |               |        |                    |               |         |         |             |         |         |             |        
|                                  |                                                                                         | Total operating expenses |                         |         | 101,329           |         |        |               | 95,372 |                    |               |         | 297,428 |             |         |         | 277,428     |         |       |       | 6.2 | %    |      |       | 7.2 | %   
|                                  |                                                                                         |                          |                         |         |                   |         |        |               |        |                    |               |         |         |             |         |         |             |        
|Operating income                  |                                                                                         |                          | 30,836                  |         |                   |         | 19,135 |               |        |                    | 71,775        |         |         |             | 43,882  |         |             |         | 61.1  | %     |     |      | 63.6 | %    
|                                  | Interest expense                                                                        |                          |                         | (23,782 | )                 |         |        | (23,971       | )      |                    |               | (71,344 | )       |             |         | (71,339 | )           |         |       | *     |     |      |      | *     |    
|                                  | Other expense, net                                                                      |                          |                         | (400    | )                 |         |        | (616          | )      |                    |               | (1,498  | )       |             |         | (1,969  | )           |         |       | (35.1 | )%  |      |      | (23.9 | )% 
|                                  |                                                                                         |                          |                         |         |                   |         |        |               |        |                    |               |         |         |             |         |         |             |        
|Income (loss) before income taxes |                                                                                         |                          | 6,654                   |         |                   |         | (5,452 | )             |        |                    | (1,067        | )       |         |             | (29,426 | )       |             |         | 222.1 | %     |     |      | 96.4 | %    
|                                  | Income tax (expense) benefit                                                            |                          |                         | (2,099  | )                 |         |        | 2,072         |        |                    |               | 835     |         |             |         | 11,182  |             |         |       | **    |     |      |      | **    |    
|                                  |                                                                                         |                          |                         |         |                   |         |        |               |        |                    |               |         |         |             |         |         |             |        
|Net income (loss)                 |                                                                                         | $                        | 4,555                   |         |                   | $       | (3,380 | )             |        | $                  | (232          | )       |         | $           | (18,244 | )       |             |         | 234.8 | %     |     |      | 98.7 | %    
|                                  |                                                                                         |                          |                         |         |                   |         |        |               |        |                    |               |         |         |             |         |         |             |        






|   |                              
|-- | -----------------------------
|*  | less than 1%                 
|  
|** | Calculation is not meaningful



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



9



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##### Table of Contents









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



Service revenue.




Roaming revenue.


10



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##### Table of Contents







Equipment and other revenue.






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



Cost of service.


11



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##### Table of Contents





|              |                       |                                  |        |        |                                 |  |      |        |   |   |            |        |  |        |      |       |            |   |        |        |  |  |            |       |   |   |        |        |  |  |      |       |  
|------------- | --------------------- | -------------------------------- | ------ | ------ | ------------------------------- |  | ---- | ------ | - | - | ---------- | ------ |  | ------ | ---- | ----- | ---------- | - | ------ | ------ |  |  | ---------- | ----- | - | - | ------ | ------ |  |  | ---- | ----- | -
|              |                       | Three Months Ended September 30, |        |        | Nine Months Ended September 30, | 
|              |                       |                                  |        |        |                                 | 
|              |                       | 2005                             |        |        | 2004                            |  |      | 2005   |   |   | 2004       |       
|              |                       |                                  |        |        |                                 |  |      |        |   |   |            |       
|              |                       | Amount                           |        |        | Percentage                      |  |      | Amount |   |   | Percentage |        |  | Amount |      |       | Percentage |   |        | Amount |  |  | Percentage |      
|              |                       |                                  |        |        |                                 |  |      |        |   |   |            |        |  |        |      |       |            |   |        |        |  |  |            |      
|              |                       | ($ in thousands)                 |        |        | ($ in thousands)                | 
|Network costs |                       | $                                | 22,584 |        |                                 |  | 73.1 | %      |   | $ | 16,553     |        |  |        | 62.2 | %     |            | $ | 61,724 |        |  |  | 70.6       | %     |   | $ | 45,618 |        |  |  | 63.0 | %    
|Roaming costs |                       |                                  | 8,288  |        |                                 |  | 26.9 | %      |   |   | 10,080     |        |  |        | 37.8 | %     |            |   | 25,657 |        |  |  | 29.4       | %     |   |   | 26,774 |        |  |  | 37.0 | %    
|              |                       |                                  |        |        |                                 |  |      |        |   |   |            |        |  |        |      |       |            |   |        |        |  |  |            |      
|              | Total cost of service |                                  | $      | 30,872 |                                 |  |      | 100.0  | % |   | $          | 26,633 |  |        |      | 100.0 | %          |   | $      | 87,381 |  |  |            | 100.0 | % |   | $      | 72,392 |  |  |      | 100.0 | %
|              |                       |                                  |        |        |                                 |  |      |        |   |   |            |        |  |        |      |       |            |   |        |        |  |  |            |      





Cost of equipment.




Marketing and selling costs.




12



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General and administrative costs.




Depreciation and amortization.


Gain on disposition of operating assets.




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

Interest expense.


LIQUIDITY AND CAPITAL RESOURCES








| |                          
| | -------------------------
| | Tower Sale and Lease Back



13



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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;                            

14



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##### Table of Contents





| |   |                                                                                
| | - | -------------------------------------------------------------------------------
| |  | issue certain capital stock;                                                   
|
| |  | 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.



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







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





FORWARD-LOOKING STATEMENTS




15



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##### Table of Contents










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








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



16



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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* |             | InterCarrier Multi-standard Roaming Agreement by and among
    Cingular Wireless LLC and Dobson Cellular Systems, Inc. and
    American Cellular Corporation dated as of August 12, 2005.                                                                   |           |  | (1)[10.1] | 
|        | 10 | .2* |             | Addendum to GSM Operating Agreement by and between New Cingular
    Wireless Services, Inc. (f/k/a AT&T Wireless Services,
    Inc.), Dobson Cellular Systems, Inc., an Oklahoma corporation
    and American Cellular Corporation, a Delaware corporation. |           |  | (1)[10.2] | 
|        | 31 | .1  |             | Rule 15d-14(a) Certification by our principal executive
    officer.                                                                                                                                                                                        |           |  | (2)       | 
|        | 31 | .2  |             | Rule 15d-14(a) Certification by our principal financial
    officer.                                                                                                                                                                                        |           |  | (2)       | 
|        | 32 | .1  |             | Section 1350 Certification by our principal executive
    officer.                                                                                                                                                                                          |           |  | (2)       | 
|        | 32 | .2  |             | Section 1350 Certification by our principal financial
    officer.                                                                                                                                                                                          |           |  | (2)       | 






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



|    |                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Filed as an exhibit to the Current Report on Form 8-K/ A
    filed by Dobson Communications Corporation on August 23,
    2005 as the exhibit number indicated in brackets and
    incorporated by reference herein.
|   
|(2) | Filed herewith.                                                                                                                                                                                                     

17



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##### Table of Contents



SIGNATURES






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



| |                            
| | ---------------------------
| | /s/ Steven P. Dussek       
| |                            
| | Steven P. Dussek           
| | Chief Executive Officer and
| | principal executive officer



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

18



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##### Table of Contents






INDEX TO EXHIBITS


|        |    |             |  |                                                                                                                                                                                                                                                             |  |  |           | 
|------- | -- | ----------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | --------- | 
|Exhibit |    |             |  | Method of                                                                                                                                                                                                                                                  
|Numbers |    | Description |  | Filing                                                                                                                                                                                                                                                     
|        |    |             |  |                                                                                                                                                                                                                                                            
|        | 10 | .1*         |  | InterCarrier Multi-standard Roaming Agreement by and among
    Cingular Wireless LLC and Dobson Cellular Systems, Inc. and
    American Cellular Corporation dated as of August 12, 2005.                                                                   |  |  | (1)[10.1] | 
|        | 10 | .2*         |  | Addendum to GSM Operating Agreement by and between New Cingular
    Wireless Services, Inc. (f/k/a AT&T Wireless Services,
    Inc.), Dobson Cellular Systems, Inc., an Oklahoma corporation
    and American Cellular Corporation, a Delaware corporation. |  |  | (1)[10.2] | 
|        | 31 | .1          |  | Rule 15d-14(a) Certification by our principal executive
    officer.                                                                                                                                                                                        |  |  | (2)       | 
|        | 31 | .2          |  | Rule 15d-14(a) Certification by our principal financial
    officer.                                                                                                                                                                                        |  |  | (2)       | 
|        | 32 | .1          |  | Section 1350 Certification by our principal executive
    officer.                                                                                                                                                                                          |  |  | (2)       | 
|        | 32 | .2          |  | Section 1350 Certification by our principal financial
    officer.                                                                                                                                                                                          |  |  | (2)       | 






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



|    |                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Filed as an exhibit to the Current Report on Form 8-K/ A
    filed by Dobson Communications Corporation on August 23,
    2005 as the exhibit number indicated in brackets and
    incorporated by reference herein.
|   
|(2) | Filed herewith.