Sprint Nextel Corporation has posted the following release to its Newsroom website:
Sprint Leads Global Telecoms on Greenpeace Cool IT Leaderboard
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Monday, 29 April 2013
Sprint Newsroom Notification: Sprint Leads Global Telecoms on Greenpeace Cool IT Leaderboard
Sprint Nextel Corporation has posted the following release to its Newsroom website:
Sprint Newsroom: u-blox, Taoglas and Sprint announce CDMA M2M seminars
Sprint Nextel Corporation has posted the following release to its Newsroom website:
u-blox, Taoglas and Sprint announce CDMA M2M seminars
OVERLAND PARK, Kan. (BUSINESS WIRE), April 29, 2013 - Swiss-based u-blox, a leading provider of cellular modem modules, Sprint, a major U.S. telecommunications provider, and Taoglas, a global antenna solutions provider, announce a series of nationwide seminars covering all aspects of migrating M2M applications from GSM/GPRS to CDMA technology.
The seminars are part of a recently announced u-blox and Sprint collaboration to allow customers designing products for telematics, telemetry, automotive and security applications to extend the product lifetime of their existing 2G M2M devices by seamlessly migrating to the CDMA network with minimal effort. Those customers concerned about the continued availability of 2G GSM networks in the United States can now select from a variety of affordable u-blox modems tested for compatibility on Sprint's CDMA 1xRTT network.
| The seminars will be held at or near the following locations: | ||
| Las Vegas, Nev. |
| Monday, May 20 |
| Detroit, Mich. |
| Tuesday, June 4 |
| Denver, Colo. |
| Wednesday, June 12 |
| Dallas, Texas |
| Thursday, June 13 |
| Nashville, Tenn. | Monday, June 17 | |
| Seattle, Wash. |
| Tuesday, June 18 |
| San Francisco, Calif. |
| Wednesday, June 19 |
| Los Angeles, Calif. |
| Thursday, June 20 |
| San Diego, Calif. |
| Friday, June 21 |
| Boston, Mass. |
| Tuesday, June 25 |
| New York, N.Y. |
| Wednesday, June 26 |
| Washington, D.C. |
| Thursday, June 27 |
| Minneapolis, Minn. |
| Tuesday, July 9 |
| Chicago, Ill. |
| Wednesday, July 10 |
| Atlanta, Ga. |
| Wednesday, July 17 |
| Miami, Fla. |
| Thursday, July 18 |
The agenda can be found at: http://www.u-blox.com/en/m2m-seminar-2013-agenda.html
Interested customers and partners can register at: https://www.u-blox.com/en/m2m-seminar-2013.html.
The seminars include an overview of the following u-blox CDMA modules:
- FW75-C200: connectorized 1xRTT module, in the most widely used M2M GSM form factor
- LISA-C200: surface-mount 1xRTT module in the most popular M2M form factor
- FW2763: 1xRTT PCIe card
- FW2770: EV-DO PCIe card
The four-hour, hands-on training includes design recommendations and real-life case studies. The nominal participation fee includes the seminar, refreshments, development kit with integrated GPS, CDMA module, antennas, and 60 days of service from Sprint (a total estimated value of $199).
For more information about GSM to CDMA modules, antennas and 2G CDMA network support, please contact:
| u-blox: | ||||
| Taoglas: | ||||
| Sprint: | ||||
About u-blox
Swiss-based u-blox (SIX:UBXN) is the global leader in positioning and wireless semiconductors for the consumer, industrial and automotive markets. Our solutions enable people, vehicles and machines to locate their exact position and wirelessly communicate via voice, text or video. With a broad portfolio of chips, modules and software solutions, u-blox is uniquely positioned to enable OEMs to develop innovative personal, professional and M2M solutions quickly and cost-effectively. With headquarters in Thalwil, Switzerland, u-blox is globally present with offices in Europe, Asia and the USA (www.u-blox.com).
About Taoglas
Taoglas provides a comprehensive range of external, embedded and base-station antenna solutions for M2M applications, such as telematics/automotive, smart-grid, metering/telemetry, home automation, remote monitoring and telemedical applications. The company's device RF optimization OTA anechoic test chambers and labs in the United States and Ireland enable M2M manufacturers to design and test antenna solutions for M2M devices with a single company, while also performing pre-certification OTA (efficiency/radiation patterns/TRP/TIS) testing for PTCRB and USA network requirements. Taoglas continually innovates and creates new antenna solutions to meet the evolving needs of the machine-to-machine world. Taoglas' products operate consistently at optimum proficiency levels, delivering world-class performance time after time. With Taoglas, customers experience high performance, unrivaled delivery, plus exceptional backup and support services. (www.taoglas.com)
About Sprint Nextel
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 55 million customers at the end of the first quarter of 2013 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. The American Customer Satisfaction Index rated Sprint No. 1 among all national carriers in customer satisfaction and most improved, across all 47 industries, during the last four years. Newsweek ranked Sprint No. 3 in both its 2011 and 2012 Green Rankings, listing it as one of the nation's greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20130429005885/en/
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Sprint Newsroom: Sprint Special Committee Provides Transaction Update
Sprint Nextel Corporation has posted the following release to its Newsroom website:
Sprint Special Committee Provides Transaction Update
OVERLAND PARK, Kan. (BUSINESS WIRE), April 29, 2013 - Sprint Nextel (NYSE: S) today announced that it had received from SoftBank Corp. a waiver of various provisions of the merger agreement between Sprint and SoftBank. The waiver will permit Sprint and its representatives, including the Special Committee of the Sprint board, to enter into a non-disclosure agreement and discussions with DISH for the purpose of clarifying and obtaining further information from DISH regarding its proposal made on April 15, 2013. The SoftBank waiver does not permit Sprint to provide non-public information to DISH nor does it enable Sprint to enter into negotiations with DISH. Such actions may be taken by Sprint only in accordance with the Sprint-SoftBank merger agreement.
Sprint does not intend to make any further comment on the work of the Special Committee until it completes an assessment with respect to whether the DISH proposal is, or is reasonably likely to lead to a Superior Offer (as defined in the Sprint-SoftBank merger agreement) and the Sprint board has considered such assessment.
About Sprint Nextel
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 55 million customers at the end of the first quarter of 2013 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. The American Customer Satisfaction Index rated Sprint No. 1 among all national carriers in customer satisfaction and most improved, across all 47 industries, during the last four years. Newsweek ranked Sprint No. 3 in both its 2011 and 2012 Green Rankings, listing it as one of the nation's greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.
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Thursday, 25 April 2013
Clearwire Reports First Quarter 2013 Results
|
Clearwire Reports First Quarter 2013 Results
BELLEVUE, Wash., April 25, 2013 (GLOBE NEWSWIRE) -- Clearwire Corporation (Nasdaq:CLWR), a leading provider of 4G wireless broadband services in the U.S., today reported its financial and operating results for first quarter 2013. "Our ongoing focus on driving our retail business cash contribution, controlling costs and maintaining liquidity continues to yield results," said Erik Prusch, President and CEO of Clearwire. "Our day-to-day focus on delivering for our customers and the substantial progress on the TDD-LTE network build demonstrate the company's commitment to execution during this transition period." First quarter 2013 total revenue increased 2% over fourth quarter 2012 primarily due to sequential retail revenue growth. On a year over year basis, total revenue declined 1% to $318.0 million, reflecting slight declines in both wholesale and retail revenue over the prior year period. First quarter wholesale revenue of $114.9 million declined 1% sequentially on lower revenue related to the amortization of the second quarter 2011 Sprint wholesale settlement (the "Sprint Settlement"). On a year over year basis, wholesale revenue declined 2% primarily due to a decrease in the non-Sprint wholesale customer base as well as lower Sprint Settlement revenue. Wholesale revenue in first quarter 2013, fourth quarter 2012 and first quarter 2012 reflect the fixed wholesale WiMAX revenue terms of the November 2011 4G MVNO Agreement with Sprint which will continue through 2013. Retail revenue and other revenue increased 4% sequentially and decreased 1% year over year to $203.1 million in first quarter 2013. Retail average revenue per user (ARPU) was $43.49 representing sequential and year over year decreases of $(0.61) and $(3.34), respectively, primarily due to lower equipment lease revenue under the no-contract offering that was fully launched in first quarter 2012. Clearwire ended first quarter 2013 with approximately 9.4 million total subscribers. First quarter 2013 retail subscribers increased 10% year over year and 8% sequentially to approximately 1.5 million retail subscribers. Retail net subscriber additions during the period were 108,000 reflecting 4.2% churn and record gross additions of approximately 287,000. During the period, wholesale subscribers declined 18% year over year and 3% sequentially on 270,000 wholesale net subscriber losses to approximately 7.9 million wholesale subscribers at the end of first quarter 2013. The decline in wholesale subscribers, which consist primarily of Sprint 3G/4G smartphone customers, is primarily due to the discontinuation of postpaid WiMAX offerings by Sprint. Retail cost per gross addition (CPGA) was a company record low $143 in first quarter 2013 compared to $155 in fourth quarter 2012 and $242 in first quarter 2012. Both the sequential and year over year improvements are primarily due to improved efficiencies in retail selling expenses associated with our no-contract offering and higher gross adds, partially offset by increased equipment subsidies. Excluding $9.3 million of merger-related expenses, first quarter 2013 Adjusted EBITDA loss was $(42.2) million. Inclusive of merger-related expenses, Adjusted EBITDA loss in first quarter 2013 was $(51.5) million, representing a $(13.3) million increase compared to first quarter 2012 Adjusted EBITDA loss of $(38.2) million. The increase is primarily due to merger-related expenses, as well as lower revenue and higher COGS (excluding non-cash expenses) on a year over year basis. Cash, cash equivalents and investments (invested primarily in U.S. Treasury securities) as of March 31, 2013 was approximately $797.4 million, a sequential decrease of $71.2 million from December 31, 2012. The sequential decrease primarily reflects cash payments for capital expenditures and operating expenses, which was partially offset by $80 million drawn against the interim financing facility provided by Sprint in conjunction with our merger agreement, as well as payments from Sprint for wholesale WiMAX services and cash inflows from our retail business. As compared to March 31, 2012, cash, cash equivalents and investments decreased by $635.1 million. First quarter 2013 capex of $50 million increased $27 million over prior year period capex of $23 million primarily due to increased expenditures for Clearwire's TDD-LTE network deployment. Compared to fourth quarter 2012 capex of $102 million, first quarter 2013 capex decreased $52 million primarily due to a decline in network equipment received as compared to the prior quarter. At the end of first quarter 2013, Clearwire operated networks in the U.S. covering areas where approximately 136 million people reside, including approximately 134 million people in markets where we provide 4G services. At the end of the period our TDD-LTE network consisted of approximately 1,300 commissioned sites. Results of Operations Cost of goods and services and network costs (COGS) in first quarter 2013 decreased 19% to $213.2 million compared to $263.8 million in first quarter 2012. These amounts include non-cash charges for network equipment reserves and other write-downs of $4.7 million and $56.4 million in first quarters 2013 and 2012, respectively, and other non-cash network-related expenses of $17.7 million and $26.6 million in first quarters 2013 and 2012, respectively. The year over year decrease in network equipment reserves and other write-downs is primarily due to a decrease in charges for network equipment not required to support our network deployment plans or sparing requirements. The year over year decrease in other non-cash network related expenses is primarily due to a higher provision for unused tower-related leases and other network agreements in first quarter 2012. Excluding non-cash expenses, COGS increased 6% year over year primarily due to an increase in customer premise equipment sales associated with our no contract retail model, as well as higher tower- and network-related expenses in conjunction with our ongoing LTE build. Selling, general and administrative (SG&A) expense in first quarter 2013 decreased slightly to $141.1 million from $142.7 million in first quarter 2012. The decrease is primarily attributable to lower sales and marketing, call center and facilities expenses, mostly offset by higher commissions, employee-related costs and general and administrative expenses related to the proposed merger with Sprint. First quarter 2013 reported net loss from continuing operations attributable to Clearwire was $(227.0) million, or $(0.33) per basic share compared to $(182.1) million, or $(0.40) per basic share, respectively in the prior year period. Including the effects of discontinued operations, first quarter 2013 reported net loss attributable to Clearwire was $(227.0) million, or $(0.33) per basic share, compared to $(181.8) million or $(0.40), respectively in the prior year period.
Management Webcast Clearwire executives will host a conference call and simultaneous webcast to discuss the company's first quarter 2013 financial results at 4:30 p.m. Eastern Time today. A live broadcast of the conference call will be available online on the company's investor relations website located at http://investors.clearwire.com. Interested parties can access the conference call by dialing 1-877-392-9886, or from outside the U.S. by dialing 1-707-287-9329, at least five minutes prior to the start time. A replay of the call will be available beginning at approximately 7:30 p.m. Eastern Time on April 25, through Thursday, May 2, by calling 1-855-859-2056, or from outside the U.S. by dialing 1-404-537-3406. The passcode for the replay is 36445633. About Clearwire Clearwire Corporation (Nasdaq:CLWR), through its operating subsidiaries, is a leading provider of 4G wireless broadband services offering services in areas of the U.S. where more than 130 million people live. The company holds the deepest portfolio of wireless spectrum available for data services in the U.S. Clearwire serves retail customers through its own CLEAR® brand as well as through wholesale relationships with some of the leading companies in the retail, technology and telecommunications industries, including Sprint and NetZero. The company is constructing a next-generation 4G LTE Advanced-ready network to address the capacity needs of the market, and is also working closely with the Global TDD-LTE Initiative to further the TDD-LTE ecosystem. Clearwire is headquartered in Bellevue, Wash. Additional information is available at http://www.clearwire.com. Forward-Looking Statements This release, and other written and oral statements made by Clearwire from time to time, contain forward-looking statements which are based on management's current expectations and beliefs, as well as on a number of assumptions concerning future events made with information that is currently available. Forward-looking statements may include, without limitation, management's expectations regarding future financial and operating performance and financial condition; proposed transactions; network development and market launch plans; strategic plans and objectives; industry conditions; the strength of the balance sheet; and liquidity and financing needs. The words "will," "would," "may," "should," "estimate," "project," "forecast," "intend," "expect," "believe," "target," "designed," "plan" and similar expressions are intended to identify forward-looking statements. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of Clearwire's control, which could cause actual results to differ materially and adversely from such statements. Some factors that could cause actual results to differ are:
For a more detailed description of the factors that could cause such a difference, please refer to Clearwire's filings with the Securities and Exchange Commission, including the information under the heading "Risk Factors" in our Annual Report on Form 10-K filed on February 14, 2013, and subsequent SEC filings. Clearwire assumes no obligation to update or supplement such forward-looking statements.
CONTACT: Investor Relations: Alice Ryder, 425-505-6494 alice.ryder@clearwire.com Media Relations: Susan Johnston, 425-505-6178 susan.johnston@clearwire.com JLM Partners for Clearwire: Mike DiGioia or Jeremy Pemble, 206-381-3600 mike@jlmpartners.com or jeremy@jlmpartners.com | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| You are subscribed to Clearwire Corporation Investor Relations' e-mail alerts as haridh.mobilebroadband@blogger.com. To update your e-mail and alert preferences, please click here. To unsubscribe, please click here. Clearwire Corporation 4400 CARILLON PT , Kirkland, WA 98033-7353 Service provided by Shareholder.com | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wednesday, 24 April 2013
Sprint Newsroom: Sprint Reports First Quarter 2013 Results
Sprint Nextel Corporation has posted the following release to its Newsroom website:
Sprint Reports First Quarter 2013 Results
OVERLAND PARK, Kan. (BUSINESS WIRE), April 24, 2013 - Sprint Nextel Corp. (NYSE: S) today reported operating income of $29 million, and Adjusted OIBDA* of $1.5 billion was the highest in nearly four years even as Sprint made significant investments in the business during the quarter. Sprint reported continued strong growth in the Sprint platform business, reaching highest-ever subscriber base and service revenue levels in the first quarter of 2013.
"This is a transformative year for Sprint and we've gotten off to a good start," said Dan Hesse, Sprint CEO. "Record Sprint platform service revenue and subscriber levels fueled our performance. We achieved significant Adjusted OIBDA* growth while investing heavily to improve our network, expanding our 4G LTE footprint and offering customers the best smartphones with truly unlimited data plans."
EPS and Operating Income Improve
Operating income for the quarter was $29 million as compared to a loss of $255 million in the year-ago period. Consolidated net service revenues of nearly $8 billion were flat year-over-year as Sprint platform growth offset declines in Nextel platform and Wireline revenues. The company reported a net loss of $643 million and a diluted net loss of $.21 per share for the first quarter of 2013 as compared to a net loss of $863 million and a diluted net loss of $.29 per share in the first quarter of 2012.
Adjusted OIBDA* Improves By Over 25 Percent Year-Over-Year
Quarterly Adjusted OIBDA* of $1.5 billion was the highest in nearly four years and improved by $311 million as compared to the first quarter of 2012. Adjusted OIBDA* improved year-over-year primarily due to growth in Sprint platform service revenue, lower cost of service and lower SG&A expense, partially offset by lower Nextel revenue.
Sprint Platform Achieves Record Revenue, ARPU and Subscribers
Sprint platform service revenue reached best-ever levels in the first quarter driven by all-time high postpaid ARPU and subscribers for the Sprint platform. Sprint platform postpaid ARPU grew by more than $1 year-over-year. Postpaid subscriber growth on the platform continued to benefit from better than expected recapture rates of Nextel customers as well as improved postpaid churn. Additionally, all three of the Sprint platform prepaid brands achieved net additions in the quarter and each reached highest-ever subscriber levels.
Unlimited Data and Iconic Smartphones Continue to Drive Growth
Eighty-six percent of quarterly Sprint platform postpaid handset sales were smartphones, including more than 1.5 million iPhones sold during the quarter. Forty-three percent of iPhone sales were to new customers, a rate that continues to outperform larger competitors.
Sprint continued to enhance its smartphone portfolio – launching HTC One® earlier this month and announcing plans to offer Samsung Galaxy S® 4 in the next few weeks as well as BlackBerry® Q10 and two Windows 8 phones later this year.
Network Vision Deployment Gains Momentum
Sprint made significant progress on the Network Vision deployment in the quarter, exceeding 12,000 sites on air during the first quarter. To date there are more than 13,500 sites on air compared to more than 8,000 reported on Feb. 7. The number of sites that are either ready for construction, already underway or completed has grown to more than 25,000.
As part of Network Vision, Sprint has launched 4G LTE in 88 cities, including Los Angeles, Boston and Charlotte, N.C. since the beginning of the year and expects that 4G LTE will be available in more than 170 additional cities in the coming months.
The company remains on track to shut down the Nextel platform at the end of the second quarter.
Third Parties Recognize Sprint Leadership
For the fourth time in a row, J.D. Power & Associates ranked Sprint highest in satisfaction with the purchase experience among Full Service Wireless Providers. Additionally, Sprint's Boost Mobile prepaid brand was ranked highest in satisfaction with the purchase experience among Non-Contract Wireless Providers. Sprint also received U.S. Long-Haul Wholesale Carrier Excellence from ATLANTIC-ACM in the Brand, Network Performance, Customer Service and Voice Quality categories. Finally, Sprint collected the North American Mobile & Wireless Green Excellence Award from Frost & Sullivan.
Forecast
The company expects 2013 Adjusted OIBDA* to be at the high-end of the previous forecast of between $5.2 billion and $5.5 billion excluding the effects of the closing of strategic transactions.
| Wireless Operating Statistics (Unaudited) | ||||||||||
| Quarter To Date | ||||||||||
| 3/31/13 | 12/31/12 | 3/31/12 | ||||||||
| Net Additions (Losses) (in thousands) | ||||||||||
| Sprint platform: | ||||||||||
| Postpaid (2) | 12 | 401 | 263 | |||||||
| Prepaid (3) | 568 | 525 | 870 | |||||||
| Wholesale and affiliate | (224 | ) | (243 | ) | 785 | |||||
| Total Sprint platform | 356 | 683 | 1,918 | |||||||
| Nextel platform: | ||||||||||
| Postpaid (2) | (572 | ) | (644 | ) | (455 | ) | ||||
| Prepaid (3) | (199 | ) | (376 | ) | (381 | ) | ||||
| Total Nextel platform | (771 | ) | (1,020 | ) | (836 | ) | ||||
| Total retail postpaid net losses | (560 | ) | (243 | ) | (192 | ) | ||||
| Total retail prepaid net additions | 369 | 149 | 489 | |||||||
| Total wholesale and affiliate net (losses) additions | (224 | ) | (243 | ) | 785 | |||||
| Total Wireless Net (Losses) Additions | (415 | ) | (337 | ) | 1,082 | |||||
| End of Period Subscribers (in thousands) | ||||||||||
| Sprint platform: | ||||||||||
| Postpaid (2) | 30,257 | 30,245 | 28,992 | |||||||
| Prepaid (3) | 15,701 | 15,133 | 13,698 | |||||||
| Wholesale and affiliate | 7,938 | 8,162 | 8,003 | |||||||
| Total Sprint platform | 53,896 | 53,540 | 50,693 | |||||||
| Nextel platform: | ||||||||||
| Postpaid (2) | 1,060 | 1,632 | 3,830 | |||||||
| Prepaid (3) | 255 | 454 | 1,580 | |||||||
| Total Nextel platform | 1,315 | 2,086 | 5,410 | |||||||
| Total retail postpaid end of period subscribers | 31,317 | 31,877 | 32,822 | |||||||
| Total retail prepaid end of period subscribers | 15,956 | 15,587 | 15,278 | |||||||
| Total wholesale and affiliate end of period subscribers | 7,938 | 8,162 | 8,003 | |||||||
| Total End of Period Subscribers | 55,211 | 55,626 | 56,103 | |||||||
| Supplemental Data - Connected Devices | ||||||||||
| End of Period Subscribers (in thousands) | ||||||||||
| Retail postpaid | 824 | 813 | 791 | |||||||
| Wholesale and affiliate | 2,803 | 2,670 | 2,217 | |||||||
| Total | 3,627 | 3,483 | 3,008 | |||||||
| Churn | ||||||||||
| Sprint platform: | ||||||||||
| Postpaid | 1.84 | % | 1.98 | % | 2.00 | % | ||||
| Prepaid | 3.05 | % | 3.02 | % | 2.92 | % | ||||
| Nextel platform: | ||||||||||
| Postpaid | 7.57 | % | 5.27 | % | 2.09 | % | ||||
| Prepaid | 12.46 | % | 9.79 | % | 8.73 | % | ||||
| Total retail postpaid churn | 2.09 | % | 2.18 | % | 2.01 | % | ||||
| Total retail prepaid churn | 3.26 | % | 3.30 | % | 3.61 | % | ||||
| ARPU (a) | ||||||||||
| Sprint platform: | ||||||||||
| Postpaid | $ | 63.67 | $ | 63.04 | $ | 62.55 | ||||
| Prepaid | $ | 25.95 | $ | 26.30 | $ | 25.64 | ||||
| Nextel platform: | ||||||||||
| Postpaid | $ | 35.43 | $ | 37.27 | $ | 40.94 | ||||
| Prepaid | $ | 31.75 | $ | 35.59 | $ | 35.68 | ||||
| Total retail postpaid ARPU | $ | 62.47 | $ | 61.47 | $ | 59.88 | ||||
| Total retail prepaid ARPU | $ | 26.08 | $ | 26.69 | $ | 26.82 | ||||
| Nextel Platform Subscriber Recaptures | ||||||||||
| Subscribers (in thousands) (4): | ||||||||||
| Postpaid | 264 | 333 | 228 | |||||||
| Prepaid | 67 | 188 | 137 | |||||||
| Rate (5): | ||||||||||
| Postpaid | 46 | % | 51 | % | 46 | % | ||||
| Prepaid | 34 | % | 50 | % | 23 | % | ||||
| (a) ARPU is calculated by dividing service revenue by the sum of the average number of subscribers in the applicable service category. Changes in average monthly service revenue reflect subscribers for either the postpaid or prepaid service category who change rate plans, the level of voice and data usage, the amount of service credits which are offered to subscribers, plus the net effect of average monthly revenue generated by new subscribers and deactivating subscribers. | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||||||||||||
| (Millions, except per Share Data) | |||||||||||||||||
| Quarter To Date | |||||||||||||||||
| 3/31/13 | 12/31/12 | 3/31/12 | |||||||||||||||
| Net Operating Revenues | $ | 8,793 | $ | 9,005 | $ | 8,734 | |||||||||||
| Net Operating Expenses | |||||||||||||||||
| Cost of services | 2,640 | 2,659 | 2,787 | ||||||||||||||
| Cost of products | 2,293 | 2,993 | 2,298 | ||||||||||||||
| Selling, general and administrative | 2,336 | 2,557 | 2,436 | ||||||||||||||
| Depreciation and amortization | 1,492 | 1,493 | 1,666 | ||||||||||||||
| Other, net | 3 | 8 | (198 | ) | |||||||||||||
| Total net operating expenses | 8,764 | 9,710 | 8,989 | ||||||||||||||
| Operating Income (Loss) | 29 | (705 | ) | (255 | ) | ||||||||||||
| Interest expense | (432 | ) | (432 | ) | (298 | ) | |||||||||||
| Equity in losses of unconsolidated investments and other, net | (202 | ) | (140 | ) | (273 | ) | |||||||||||
| Loss before Income Taxes | (605 | ) | (1,277 | ) | (826 | ) | |||||||||||
| Income tax expense | (38 | ) | (44 | ) | (37 | ) | |||||||||||
| Net Loss | $ | (643 | ) | $ | (1,321 | ) | $ | (863 | ) | ||||||||
| Basic and Diluted Net Loss Per Common Share | $ | (0.21 | ) | $ | (0.44 | ) | $ | (0.29 | ) | ||||||||
| Weighted Average Common Shares outstanding | 3,013 | 3,007 | 2,999 | ||||||||||||||
| Effective Tax Rate | -6.3 | % | -3.4 | % | -4.5 | % | |||||||||||
| NON-GAAP RECONCILIATION - NET LOSS TO ADJUSTED OIBDA* (Unaudited) | |||||||||||||||||
| (Millions) | |||||||||||||||||
| Quarter To Date | |||||||||||||||||
| 3/31/13 | 12/31/12 | 3/31/12 | |||||||||||||||
| Net Loss | $ | (643 | ) | $ | (1,321 | ) | $ | (863 | ) | ||||||||
| Income tax expense | 38 | 44 | 37 | ||||||||||||||
| Loss before Income Taxes | (605 | ) | (1,277 | ) | (826 | ) | |||||||||||
| Equity in losses of unconsolidated investments and other, net | 202 | 140 | 273 | ||||||||||||||
| Interest expense | 432 | 432 | 298 | ||||||||||||||
| Operating Income (Loss) | 29 | (705 | ) | (255 | ) | ||||||||||||
| Depreciation and amortization | 1,492 | 1,493 | 1,666 | ||||||||||||||
| OIBDA* | 1,521 | 788 | 1,411 | ||||||||||||||
| Severance and lease exit costs (6) | 25 | (10 | ) | - | |||||||||||||
| Gains from asset dispositions and exchanges (7) | - | - | (29 | ) | |||||||||||||
| Asset impairments and abandonments (8) | - | 18 | 18 | ||||||||||||||
| Spectrum hosting contract termination, net (9) | - | - | (170 | ) | |||||||||||||
| Access costs (10) | - | - | (17 | ) | |||||||||||||
| Litigation (11) | (22 | ) | - | - | |||||||||||||
| Business combinations (12) | - | 19 | - | ||||||||||||||
| Hurricane Sandy (13) | - | 45 | - | ||||||||||||||
| Adjusted OIBDA* | 1,524 | 860 | 1,213 | ||||||||||||||
| Capital expenditures (1) | 1,812 | 1,923 | 800 | ||||||||||||||
| Adjusted OIBDA* less Capex | $ | (288 | ) | $ | (1,063 | ) | $ | 413 | |||||||||
| Adjusted OIBDA Margin* | 19.1 | % | 10.7 | % | 15.2 | % | |||||||||||
| Selected item: | |||||||||||||||||
| Deferred tax asset valuation allowance | $ | 265 | $ | 546 | $ | 348 | |||||||||||
| WIRELESS STATEMENTS OF OPERATIONS (Unaudited) | |||||||||||||||||||
| (Millions) | |||||||||||||||||||
| Quarter To Date | |||||||||||||||||||
| 3/31/13 | 12/31/12 | 3/31/12 | |||||||||||||||||
| Net Operating Revenues | |||||||||||||||||||
| Service revenue | |||||||||||||||||||
| Sprint platform: | |||||||||||||||||||
| Postpaid (2) | $ | 5,773 | $ | 5,674 | $ | 5,408 | |||||||||||||
| Prepaid (3) | 1,194 | 1,170 | 1,016 | ||||||||||||||||
| Wholesale, affiliate and other | 133 | 135 | 103 | ||||||||||||||||
| Total Sprint platform | 7,100 | 6,979 | 6,527 | ||||||||||||||||
| Nextel platform: | |||||||||||||||||||
| Postpaid (2) | 143 | 218 | 500 | ||||||||||||||||
| Prepaid (3) | 33 | 68 | 188 | ||||||||||||||||
| Total Nextel platform | 176 | 286 | 688 | ||||||||||||||||
| Equipment revenue | 813 | 1,010 | 735 | ||||||||||||||||
| Total net operating revenues | 8,089 | 8,275 | 7,950 | ||||||||||||||||
| Net Operating Expenses | |||||||||||||||||||
| Cost of services | 2,171 | 2,210 | 2,289 | ||||||||||||||||
| Cost of products | 2,293 | 2,993 | 2,298 | ||||||||||||||||
| Selling, general and administrative | 2,230 | 2,436 | 2,311 | ||||||||||||||||
| Depreciation and amortization | 1,393 | 1,391 | 1,564 | ||||||||||||||||
| Other, net | - | 3 | (181 | ) | |||||||||||||||
| Total net operating expenses | 8,087 | 9,033 | 8,281 | ||||||||||||||||
| Operating Income (Loss) | $ | 2 | $ | (758 | ) | $ | (331 | ) | |||||||||||
| Supplemental Revenue Data | |||||||||||||||||||
| Total retail service revenue | $ | 7,143 | $ | 7,130 | $ | 7,112 | |||||||||||||
| Total service revenue | $ | 7,276 | $ | 7,265 | $ | 7,215 | |||||||||||||
| WIRELESS NON-GAAP RECONCILIATION (Unaudited) | |||||||||||||||||||
| (Millions) | |||||||||||||||||||
| Quarter To Date | |||||||||||||||||||
| 3/31/13 | 12/31/12 | 3/31/12 | |||||||||||||||||
| Operating Income (Loss) | $ | 2 | $ | (758 | ) | $ | (331 | ) | |||||||||||
| Severance and lease exit costs (6) | 22 | (10 | ) | - | |||||||||||||||
| Gains from asset dispositions and exchanges (7) | - | - | (29 | ) | |||||||||||||||
| Asset impairments and abandonments (8) | - | 13 | 18 | ||||||||||||||||
| Spectrum hosting contract termination, net (9) | - | - | (170 | ) | |||||||||||||||
| Litigation (11) | (22 | ) | - | - | |||||||||||||||
| Hurricane Sandy (13) | - | 42 | - | ||||||||||||||||
| Depreciation and amortization | 1,393 | 1,391 | 1,564 | ||||||||||||||||
| Adjusted OIBDA* | 1,395 | 678 | 1,052 | ||||||||||||||||
| Capital expenditures (1) | 1,706 | 1,786 | 710 | ||||||||||||||||
| Adjusted OIBDA* less Capex | $ | (311 | ) | $ | (1,108 | ) | $ | 342 | |||||||||||
| Adjusted OIBDA Margin* | 19.2 | % | 9.3 | % | 14.6 | % | |||||||||||||
| WIRELINE STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||||
| (Millions) | ||||||||||||||||||
| Quarter To Date | ||||||||||||||||||
| 3/31/13 | 12/31/12 | 3/31/12 | ||||||||||||||||
| Net Operating Revenues | ||||||||||||||||||
| Voice | $ | 352 | $ | 385 | $ | 417 | ||||||||||||
| Data | 94 | 96 | 108 | |||||||||||||||
| Internet | 434 | 451 | 453 | |||||||||||||||
| Other | 13 | 17 | 20 | |||||||||||||||
| Total net operating revenues | 893 | 949 | 998 | |||||||||||||||
| Net Operating Expenses | ||||||||||||||||||
| Costs of services and products | 661 | 671 | 716 | |||||||||||||||
| Selling, general and administrative | 104 | 100 | 121 | |||||||||||||||
| Depreciation | 98 | 102 | 100 | |||||||||||||||
| Other, net | 3 | 5 | (17 | ) | ||||||||||||||
| Total net operating expenses | 866 | 878 | 920 | |||||||||||||||
| Operating Income | $ | 27 | $ | 71 | $ | 78 | ||||||||||||
| WIRELINE NON-GAAP RECONCILIATION (Unaudited) | ||||||||||||||||||
| (Millions) | ||||||||||||||||||
| Quarter To Date | ||||||||||||||||||
| 3/31/13 | 12/31/12 | 3/31/12 | ||||||||||||||||
| Operating Income | $ | 27 | $ | 71 | $ | 78 | ||||||||||||
| Severance and lease exit costs (6) | 3 | - | - | |||||||||||||||
| Asset impairments and abandonments (8) | - | 5 | - | |||||||||||||||
| Access costs (10) | - | - | (17 | ) | ||||||||||||||
| Hurricane Sandy (13) | - | 3 | - | |||||||||||||||
| Depreciation | 98 | 102 | 100 | |||||||||||||||
| Adjusted OIBDA* | 128 | 181 | 161 | |||||||||||||||
| Capital expenditures (1) | 61 | 58 | 45 | |||||||||||||||
| Adjusted OIBDA* less Capex | $ | 67 | $ | 123 | $ | 116 | ||||||||||||
| Adjusted OIBDA Margin* | 14.3 | % | 19.1 | % | 16.1 | % | ||||||||||||
| CONDENSED CONSOLIDATED CASH FLOW INFORMATION (Unaudited) | |||||||||||||||||
| (Millions) | |||||||||||||||||
| Quarter Ended | |||||||||||||||||
| 3/31/13 | 12/31/12 | 3/31/12 | |||||||||||||||
| Operating Activities | |||||||||||||||||
| Net loss | $ | (643 | ) | $ | (1,322 | ) | $ | (863 | ) | ||||||||
| Depreciation and amortization | 1,492 | 1,493 | 1,666 | ||||||||||||||
| Provision for losses on accounts receivable | 83 | 148 | 136 | ||||||||||||||
| Share-based compensation expense | 17 | 25 | 17 | ||||||||||||||
| Deferred income taxes | 24 | 67 | 32 | ||||||||||||||
| Equity in losses of unconsolidated investments and other, net | 202 | 140 | 273 | ||||||||||||||
| Contribution to pension plan | - | - | (92 | ) | |||||||||||||
| Spectrum hosting contract termination, net (9) | - | - | (170 | ) | |||||||||||||
| Other working capital changes, net | (276 | ) | (322 | ) | 26 | ||||||||||||
| Other, net | 41 | (13 | ) | (47 | ) | ||||||||||||
| Net cash provided by operating activities | 940 | 216 | 978 | ||||||||||||||
| Investing Activities | |||||||||||||||||
| Capital expenditures (1) | (1,381 | ) | (1,477 | ) | (783 | ) | |||||||||||
| Expenditures relating to FCC licenses | (55 | ) | (46 | ) | (56 | ) | |||||||||||
| Change in short-term investments, net | 355 | (1,165 | ) | (327 | ) | ||||||||||||
| Investment in Clearwire (including debt securities) | (80 | ) | (100 | ) | (128 | ) | |||||||||||
| Other, net | 3 | (2 | ) | (1 | ) | ||||||||||||
| Net cash used in investing activities | (1,158 | ) | (2,790 | ) | (1,295 | ) | |||||||||||
| Financing Activities | |||||||||||||||||
| Proceeds from debt and financings | 204 | 5,599 | 2,000 | ||||||||||||||
| Debt financing costs | (10 | ) | (44 | ) | (36 | ) | |||||||||||
| Repayments of debt and capital lease obligations | (59 | ) | (2,283 | ) | (2 | ) | |||||||||||
| Other, net | 7 | 8 | 3 | ||||||||||||||
| Net cash provided by financing activities | 142 | 3,280 | 1,965 | ||||||||||||||
| Net (Decrease) Increase in Cash and Cash Equivalents | (76 | ) | 706 | 1,648 | |||||||||||||
| Cash and Cash Equivalents, beginning of period | 6,351 | 5,645 | 5,447 | ||||||||||||||
| Cash and Cash Equivalents, end of period | $ | 6,275 | $ | 6,351 | $ | 7,095 | |||||||||||
| RECONCILIATION TO CONSOLIDATED FREE CASH FLOW* (NON-GAAP) (Unaudited) | |||||||||||||||||
| (Millions) | |||||||||||||||||
| Quarter Ended | |||||||||||||||||
| 3/31/13 | 12/31/12 | 3/31/12 | |||||||||||||||
| Net Cash Provided by Operating Activities | $ | 940 | $ | 216 | $ | 978 | |||||||||||
| Capital expenditures (1) | (1,381 | ) | (1,477 | ) | (783 | ) | |||||||||||
| Expenditures relating to FCC licenses, net | (55 | ) | (46 | ) | (56 | ) | |||||||||||
| Other investing activities, net | 3 | (2 | ) | (1 | ) | ||||||||||||
| Free Cash Flow* | (493 | ) | (1,309 | ) | 138 | ||||||||||||
| Debt financing costs | (10 | ) | (44 | ) | (36 | ) | |||||||||||
| Increase in debt and other, net | 145 | 3,316 | 1,998 | ||||||||||||||
| Investment in Clearwire (including debt securities) | (80 | ) | (100 | ) | (128 | ) | |||||||||||
| Other financing activities, net | 7 | 8 | 3 | ||||||||||||||
| Net (Decrease) Increase in Cash, Cash Equivalents and Short-Term Investments | $ | (431 | ) | $ | 1,871 | $ | 1,975 | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||||||||
| (Millions) | ||||||||||||||
| 3/31/13 | 12/31/12 | |||||||||||||
| Assets | ||||||||||||||
| Current assets | ||||||||||||||
| Cash and cash equivalents | $ | 6,275 | $ | 6,351 | ||||||||||
| Short-term investments | 1,494 | 1,849 | ||||||||||||
| Accounts and notes receivable, net | 3,352 | 3,658 | ||||||||||||
| Device and accessory inventory | 843 | 1,200 | ||||||||||||
| Deferred tax assets | 1 | 1 | ||||||||||||
| Prepaid expenses and other current assets | 804 | 700 | ||||||||||||
| Total current assets | 12,769 | 13,759 | ||||||||||||
| Investments and other assets | 1,611 | 1,833 | ||||||||||||
| Property, plant and equipment, net | 14,025 | 13,607 | ||||||||||||
| Goodwill | 359 | 359 | ||||||||||||
| FCC licenses and other | 20,722 | 20,677 | ||||||||||||
| Definite-lived intangible assets, net | 1,271 | 1,335 | ||||||||||||
| Total | $ | 50,757 | $ | 51,570 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||
| Current liabilities | ||||||||||||||
| Accounts payable | $ | 2,963 | $ | 3,487 | ||||||||||
| Accrued expenses and other current liabilities | 5,176 | 5,008 | ||||||||||||
| Current portion of long-term debt, financing and capital lease obligations | 428 | 379 | ||||||||||||
| Total current liabilities | 8,567 | 8,874 | ||||||||||||
| Long-term debt, financing and capital lease obligations | 24,072 | 23,962 | ||||||||||||
| Deferred tax liabilities | 7,131 | 7,047 | ||||||||||||
| Other liabilities | 4,513 | 4,600 | ||||||||||||
| Total liabilities | 44,283 | 44,483 | ||||||||||||
| Shareholders' equity | ||||||||||||||
| Common shares | 6,026 | 6,019 | ||||||||||||
| Paid-in capital | 47,026 | 47,016 | ||||||||||||
| Accumulated deficit | (45,459 | ) | (44,815 | ) | ||||||||||
| Accumulated other comprehensive loss | (1,119 | ) | (1,133 | ) | ||||||||||
| Total shareholders' equity | 6,474 | 7,087 | ||||||||||||
| Total | $ | 50,757 | $ | 51,570 | ||||||||||
| NET DEBT* (NON-GAAP) (Unaudited) | ||||||||||||||
| (Millions) | ||||||||||||||
| 3/31/13 | 12/31/12 | |||||||||||||
| Total Debt | $ | 24,500 | $ | 24,341 | ||||||||||
| Less: Cash and cash equivalents | (6,275 | ) | (6,351 | ) | ||||||||||
| Less: Short-term investments | (1,494 | ) | (1,849 | ) | ||||||||||
| Net Debt* | $ | 16,731 | $ | 16,141 | ||||||||||
| SCHEDULE OF DEBT (Unaudited) | ||||||
| (Millions) | ||||||
| 3/31/13 | ||||||
| ISSUER | COUPON | MATURITY | PRINCIPAL | |||
| Sprint Nextel Corporation | ||||||
| Export Development Canada Facility (Tranche 2) | 4.196% | 12/15/2015 | $ 500 | |||
| 6% Senior Notes due 2016 | 6.000% | 12/01/2016 | 2,000 | |||
| 9.125% Senior Notes due 2017 | 9.125% | 03/01/2017 | 1,000 | |||
| 8.375% Senior Notes due 2017 | 8.375% | 08/15/2017 | 1,300 | |||
| 9% Guaranteed Notes due 2018 | 9.000% | 11/15/2018 | 3,000 | |||
| 1% Convertible Bond due 2019 | 1.000% | 10/15/2019 | 3,100 | |||
| 7% Guaranteed Notes due 2020 | 7.000% | 03/01/2020 | 1,000 | |||
| 7% Senior Notes due 2020 | 7.000% | 08/15/2020 | 1,500 | |||
| 11.5% Senior Notes due 2021 | 11.500% | 11/15/2021 | 1,000 | |||
| 9.25% Debentures due 2022 | 9.250% | 04/15/2022 | 200 | |||
| 6% Senior Notes due 2022 | 6.000% | 11/15/2022 | 2,280 | |||
| Sprint Nextel Corporation | 16,880 | |||||
| Sprint Capital Corporation | ||||||
| 6.9% Senior Notes due 2019 | 6.900% | 05/01/2019 | 1,729 | |||
| 6.875% Senior Notes due 2028 | 6.875% | 11/15/2028 | 2,475 | |||
| 8.75% Senior Notes due 2032 | 8.750% | 03/15/2032 | 2,000 | |||
| Sprint Capital Corporation | 6,204 | |||||
| iPCS Inc. | ||||||
| First Lien Senior Secured Floating Rate Notes due 2013 | 2.424% | 05/01/2013 | 300 | |||
| Second Lien Senior Secured Floating Rate Notes due 2014 | 3.549% | 05/01/2014 | 181 | |||
| iPCS Inc. | 481 | |||||
| EKN Secured Equipment Facility | 2.030% | 03/30/2017 | 445 | |||
| Tower financing obligation | 9.500% | 01/15/2030 | 697 | |||
| Capital lease obligations and other | 2014 - 2022 | 70 | ||||
| TOTAL PRINCIPAL | 24,777 | |||||
| Net discount from beneficial conversion feature on convertible bond | (238) | |||||
| Net discounts | (39) | |||||
| TOTAL DEBT | $ 24,500 | |||||
| Supplemental information: | ||||||
| The Company had $1.5 billion of borrowing capacity available under our unsecured revolving bank credit facility as of March 31, 2013. Our unsecured revolving bank credit facility expires in February 2018. The company is currently limited by a restriction of debt incurrence in one of our debt issuances which has limited our available borrowing capacity to the $1.5 billion mentioned above under our revolving credit facility. | ||||||
| In May 2012, certain of our subsidiaries entered into a $1.0 billion secured equipment credit facility to finance equipment-related purchases for Network Vision. The facility is equally divided into two consecutive tranches of $500 million, with the drawdown availability contingent upon Sprint's acquisition of equipment-related purchases from Ericsson, up to the maximum of each tranche, ending on May 31, 2013 and May 31, 2014, for the first and second tranche, respectively. Interest and principal are payable semi-annually with a final maturity of March 2017 for both tranches. | ||||||
| NOTES TO THE FINANCIAL INFORMATION (Unaudited) | |
| (1) | Capital expenditures is an accrual based amount that includes the changes in unpaid capital expenditures and excludes capitalized interest. Cash paid for capital expenditures includes total capitalized interest of $15 million for the first quarter of 2013, and $9 million and $115 million for the fourth and first quarters of 2012, respectively, and can be found in the Condensed Consolidated Cash Flow Information and the Reconciliation to Free Cash Flow*. |
| (2) | Postpaid subscribers on the Sprint platform are defined as retail postpaid subscribers on the CDMA network, including subscribers with PowerSource devices, and those utilizing WiMax and LTE technology. Postpaid subscribers on the Nextel platform are defined as retail postpaid subscribers on the iDEN network. |
| (3) | Prepaid subscribers on the Sprint platform are defined as retail prepaid subscribers and session-based tablet users who utilize CDMA and WiMax technology via our multi-brand offerings. Prepaid subscribers on the Nextel platform are defined as retail prepaid subscribers who utilize iDEN technology. |
| (4) | Nextel Subscriber Recaptures are defined as the number of subscribers that deactivated service from the postpaid or prepaid Nextel platform, as applicable, during each period but remained with the Company as subscribers on the postpaid or prepaid Sprint platform, respectively. Subscribers that deactivate service from the Nextel platform and activate service on the Sprint platform are included in the Sprint platform net additions for the applicable period. |
| (5) | The Postpaid and Prepaid Nextel Recapture Rates are defined as the portion of total subscribers that left the postpaid or prepaid Nextel platform, as applicable, during the period and were retained on the postpaid or prepaid Sprint platform, respectively. |
| (6) | Severance and lease exit costs are primarily associated with workforce reductions and with exit costs associated with the Nextel platform. |
| (7) | For the first quarter of 2012, gains from asset dispositions and exchanges are primarily due to spectrum exchange transactions. |
| (8) | For the fourth quarter of 2012, asset impairment and abandonment activity of $18 million is primarily related to network asset equipment in our Wireless segment, no longer necessary for management's strategic plans. The first quarter of 2012 includes $18 million related to a change in our backhaul architecture in connection to our Network Vision design from microwave to a more cost effective fiber backhaul. |
| (9) | On March 16, 2012, we elected to terminate the arrangement with LightSquared LP and LightSquared, Inc. (LightSquared). As we have no future service obligations with respect to the arrangement with LightSquared, we recognized $236 million of the advanced payments as other operating income in the first quarter of 2012. As a result of the termination of the hosting agreement, we impaired capitalized costs specific to LightSquared's 1.6 GHz spectrum that the company no longer intends to deploy which totaled $66 million. |
| (10) | Favorable developments during the first quarter of 2012 relating to disagreements with local exchange carriers resulted in a reduction in expected access costs of $17 million. |
| (11) | For the first quarter of 2013, litigation activity is primarily a result of favorable developments in connection with a tax (non-income) related contingency. |
| (12) | For the fourth quarter of 2012, included in selling, general and administrative expenses are fees paid to unrelated parties necessary for the proposed transactions with SoftBank and our acquisition of Clearwire. |
| (13) | Hurricane Sandy charges for the fourth quarter of 2012, represent estimated hurricane-related charges of $45 million, consisting of customer credits, incremental roaming costs, network repairs and replacements. |
*FINANCIAL MEASURES
Sprint Nextel provides financial measures determined in accordance with accounting principles generally accepted in the United States (GAAP) and adjusted GAAP (non-GAAP). The non-GAAP financial measures reflect industry conventions, or standard measures of liquidity, profitability or performance commonly used by the investment community for comparability purposes. These measurements should be considered in addition to, but not as a substitute for, financial information prepared in accordance with GAAP. We have defined below each of the non-GAAP measures we use, but these measures may not be synonymous to similar measurement terms used by other companies.
Sprint Nextel provides reconciliations of these non-GAAP measures in its financial reporting. Because Sprint Nextel does not predict special items that might occur in the future, and our forecasts are developed at a level of detail different than that used to prepare GAAP-based financial measures, Sprint Nextel does not provide reconciliations to GAAP of its forward-looking financial measures.
The measures used in this release include the following:
OIBDA is operating income/(loss) before depreciation and amortization. Adjusted OIBDA is OIBDA excluding severance, exit costs, and other special items. Adjusted OIBDA Margin represents Adjusted OIBDA divided by non-equipment net operating revenues for Wireless and Adjusted OIBDA divided by net operating revenues for Wireline. We believe that Adjusted OIBDA and Adjusted OIBDA Margin provide useful information to investors because they are an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, spectrum acquisitions and other investments and our ability to incur and service debt. While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent non-cash current period costs associated with the use of long-lived tangible and definite-lived intangible assets. Adjusted OIBDA and Adjusted OIBDA Margin are calculations commonly used as a basis for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the telecommunications industry.
Free Cash Flow is the cash provided by operating activities less the cash used in investing activities other than short-term investments and amounts included as investments in Clearwire during the period. We believe that Free Cash Flow provides useful information to investors, analysts and our management about the cash generated by our core operations after interest and dividends, if any, and our ability to fund scheduled debt maturities and other financing activities, including discretionary refinancing and retirement of debt and purchase or sale of investments.
Net Debt is consolidated debt, including current maturities, less cash and cash equivalents, short-term investments and if any, restricted cash. We believe that Net Debt provides useful information to investors, analysts and credit rating agencies about the capacity of the company to reduce the debt load and improve its capital structure.
SAFE HARBOR
This release includes "forward-looking statements" within the meaning of the securities laws. The words "may," "could," "should," "estimate," "project," "forecast," "intend," "expect," "anticipate," "believe," "target," "plan," "providing guidance," and similar expressions are intended to identify information that is not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to network performance, subscriber growth, and liquidity, and statements expressing general views about future operating results — are forward-looking statements. Forward-looking statements are estimates and projections reflecting management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, development and deployment of new technologies; efficiencies and cost savings of multimode technologies; customer and network usage; customer growth and retention; service, coverage and quality; availability of devices; the timing of various events and the economic environment. Sprint Nextel believes these forward-looking statements are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date when made. Sprint Nextel undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our company's historical experience and our present expectations or projections. Factors that might cause such differences include, but are not limited to, those discussed in the company's Annual Report on Form 10-K for the year ended December 31, 2012. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.
Clearwire's first quarter 2013 results from operations have not yet been finalized. As a result, the amount reflected for Sprint's share of Clearwire's results of operations for the quarter ended March 31, 2013, is an estimate and, based upon the finalization of Clearwire's results, may need to be revised if our estimate materially differs from Clearwire's actual results. Changes in our estimate, if any, would affect the carrying value of our investment in Clearwire, net loss, basic and diluted net loss per common share, and comprehensive loss but would have no effect on Sprint's operating income, OIBDA*, Adjusted OIBDA* or consolidated statement of cash flows.
About Sprint Nextel
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 55 million customers at the end of the first quarter 2013 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. The American Customer Satisfaction Index rated Sprint No. 1 among all national carriers in customer satisfaction and most improved, across all 47 industries, during the last four years. Newsweek ranked Sprint No. 3 in both its 2011 and 2012 Green Rankings, listing it as one of the nation's greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.
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