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.

LTE is a trademark of ETSI. Other marks are the property of their respective owners.

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Sprint Newsroom: Sprint Launches Data Link and Static IP on its 4G LTE Network

Sprint Nextel Corporation has posted the following release to its Newsroom website:

Sprint Launches Data Link and Static IP on its 4G LTE Network

OVERLAND PARK, Kan. (BUSINESS WIRE), April 23, 2013 - Sprint (NYSE: S) today announced that Sprint Data Link™ and Static IP networking services now operate over the Sprint 4G LTE network. Both products are compatible with 3G as well as 4G, and include upgrades that make it easier for businesses and government agencies to deploy, manage and extend an enterprise network to modems, tablets and handsets.

Sprint Data Link enables business networks to reach beyond the limits of a corporate enterprise WAN. Sprint Data Link provides mobile employees and connected devices with access to their mission-critical business information over a private wireless network, separate from the public Internet.

Sprint Data Link comes with a 99.9% availability service level agreement (SLA) and is supported on a vast array of 3G- and 4G-capable devices including handsets, tablets, laptops, mobile broadband cards, hotspots and M2M embedded modems. Uses range from setting up retail kiosks, seasonal storefronts, temporary offices, lottery terminals and wireline backup to remote monitoring and home healthcare.

Sprint Static IP assigns the same IP address to a device each time that device authenticates and accesses the Internet. It allows companies to more easily manage remote wireless devices including M2M applications, handsets and tablets. Sprint provides businesses with the ability to purchase a contiguous, sequential range or block of IP addresses, which can ease the deployment of devices and simplicity of firewall configuration.

"Sprint Data Link and Static IP provide businesses with highly effective tools to deploy and manage wireless devices," said John Dupree-senior vice president of business sales, Sprint. "We are well-positioned to meet the demand for reliable, secure mobile data as our business customers take advantage of new technology, chipsets, devices and applications."

Sprint Network Vision

To support the growing need for data, Sprint is rolling out a new 3G/4G network designed to provide faster data speeds, improved quality and easier connectivity. Sprint introduced its all-new 4G LTE network in July 2012 and now offers service in 88 markets. Sprint expects customers to benefit with better wireless signal strength, in-building coverage and fewer drops/blocks. In addition, Sprint smartphone customers also benefit from Truly Unlimited? data, text and calling to any mobile with no metering, no throttling, and no overages, all while on the Sprint network. For the most up-to-date information on Sprint's 4G LTE coverage, please visit www.sprint.com/coverage

About Sprint

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 2012 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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Sprint Newsroom: Sprint Rolls Out Sprint Consultation Centers in Retail Stores to Simplify Wireless Buying for Businesses

Sprint Nextel Corporation has posted the following release to its Newsroom website:

Sprint Rolls Out Sprint Consultation Centers in Retail Stores to Simplify Wireless Buying for Businesses

OVERLAND PARK, Kan. (BUSINESS WIRE), April 22, 2013 - For small businesses, finding the right wireless solutions for the office can be disorienting, draining and even daunting. Wireless product and solution choices seem to pile on while pricing options come with the simplicity of an algebra proof.

Today, Sprint (NYSE: S) announces a shopping solution for small businesses that simplifies the wireless buying process – Sprint Consultation Centers, a complete packaging of wireless assistance in Sprint retail stores that is customized to small business needs.

Sprint, the four-time J.D. Power Award winner for Wireless Purchase Experience among contract customers, developed Sprint Consultation Centers to pool the company's business expertise and business solutions in a retail atmosphere that's low-stress, confusion-free and convenient for customers.

After an initial assessment, Consultation Center experts can develop for customers customized proposals with multiple solution options at various price points that track with the customers' needs.

"The concept takes the guesswork out of wireless for business customers," said Jaime Jones, senior vice president-Consumer Sales. "Too many times guesswork leads to the wrong wireless solution and a bad wireless buy on a small business' tight budget. That repeats itself over and over. The Sprint Consultation Center is intended to change that pattern."

To find a Sprint Consultation Center, check www.sprint.com/storelocator. Customers can book time for an appointment online or simply stop by a Sprint retail store. Each appointment includes a discussion of the customer's current telecommunications solution or product bundle, the size of the business and expected growth plans, current and future budgets, opportunities to improve ROI on their existing wireless network, and key sales and service challenges.

Sprint: an emerging leader in solutions for Small Business

Sprint Consultation Centers are a major next step in Sprint's plans to lead in the small business space. The company made news among small businesses in 2011 and 2012 with the launch and subsequent refresh of Small Business Solutions. The Solutions bundle lets small businesses select the package of products, services, accessories and add-on features that work best for them, then customize the package for their unique needs. The Small Business Solutions portfolio includes wireline phone replacement options, Internet connectivity and backup solutions, custom IT support, special discounts, and productivity solutions to help customers do more – in more places.

Evolving the retail model

Sprint Consultation Centers also offer the perfect complement to Ready Now in Sprint retail stores. With Ready Now, Sprint trained and committed its retail associates to work one-on-one with each retail customer to personalize phones, set up features, and demonstrate how phones work – before customers leave the store.

"With more people trying to boost their wireless data performance, Ready Now and Sprint Consultation Centers make sense," Jones said. "You have to take the time to explain how to pull the potential out of a wireless device. Across business and consumer segments, the demand for solid, certified, professional wireless assistance will continue to grow."

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 2012 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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Sprint Newsroom: Sprint Selects u-blox As A Preferred Module Provider For Long-term CDMA Network Support

Sprint Nextel Corporation has posted the following release to its Newsroom website:

Sprint Selects u-blox As A Preferred Module Provider For Long-term CDMA Network Support

OVERLAND PARK, Kan. & THALWIL, Switzerland (BUSINESS WIRE), April 22, 2013 - Sprint (NYSE:S), a major U.S. telecommunications provider, and Swiss-based u-blox, a leading provider of cellular modem modules and positioning technology, announce the expansion of their collaboration in support of Sprint's commitment to the 2G (1xRTT) CDMA network. As a carrier committed to network choice, Sprint believes M2M customers should be able to choose or combine 2G, 3G and 4G LTE capabilities, depending on their particular requirements. Sprint expects to maintain its 2G network capability for the long term as part of its overall Network Vision strategy. Both companies believe 2G remains an important network option for business customers, including those that deploy Machine-to-Machine (M2M) solutions as part of their service or product offerings.

This collaboration will allow business customers 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 U.S., can now select from a variety of affordable u-blox modems tested for compatibility on Sprint's CDMA 1xRTT network. The u-blox FW75-C200 modem, a pin-compatible replacement for widely used GSM modem MC75i and its variants, is well suited to continue on 2G without having to migrate to much more expensive 3G and 4G modems.

"Now is the opportune time for any customers migrating off GSM or designing new products for telematics, telemetry, automotive, and security applications to take advantage of Sprint's 2G platform," said Wayne Ward, vice president, M2M Group, Sprint. "Sprint's Network Vision strategy enables ongoing 2G connectivity with the security and performance advantages of CDMA*, while also supporting a smooth path to CDMA 3G and LTE 4G for customers who choose that transition. We are pleased to collaborate with u-blox to bring these options to 2G-embedded M2M customers."

Network Vision supports network choice for our customers nationwide. As with 3G, Sprint Network Vision is expected to improve Sprint 2G coverage, capacity, & reliability. M2M and other emerging solutions can involve widely varying data transmission speeds. Sprint expects to be able to provide all these network platforms for the long haul as part of a continuing portfolio of technology options.

"We are proud to have been selected as the preferred provider by Sprint. It will allow customers to leverage Sprint's impressive CDMA coverage in the US. Forced migration from 2G GSM to HSPA can now be avoided, given Sprint's commitment to 2G longevity of the CDMA network," said Nikolaos Papadopoulos, president of u-blox America. "Should customers still want to offer their devices in 2G and 3G, we at u-blox have already prepared for this parallel track with our nested-design module philosophy for 2G/3G platforms, where customers can select the inexpensive CDMA SMT modem LISA-C200."

u-blox CDMA module series consists of the FW75 CDMA 1xRTT module in an industry-standard package, as well as the popular LISA and PCI-express form factors. In addition to technical support, reference designs, evaluation kits, firmware and free module samples, Sprint and u-blox will soon announce nationwide hands-on seminars focusing on GSM to CDMA modem migration.

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 the Sprint Emerging Solutions Group

Sprint's M2M leadership has earned prestigious third-party validation, including the Connected World's 2013 CW 100 list of the most important and influential providers of M2M services for the ninth straight year, and the Machina Research M2M Leaderboard, where Sprint ranks ninth among the top 20 global mobile network operators (MNOs). Sprint also was honored as a key technology enabler in two Connected World Value Awards in 2012. To learn more about Sprint's M2M offerings, visit www.sprint.com/m2m.

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 2012 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.

*A February 2012 White Paper prepared by Heavy Reading offers the following evaluation of CDMA Spread Spectrum Technology over GSM for M2M applications: "The business benefits of CDMA-based 2G and 3G and networks are most pronounced as they relate to real-time monitoring and control applications with relatively low bandwidth, bursty, wireless and mobile data communications requirements. The specific advantage of CDMA for M2M services is that it uses a spread-spectrum technique developed by the military to create a highly secure communication system. Unlike GSM, which simply assigns a specific frequency or channel for each user and delivers it purely intact, M2M data transmitted over CDMA is encrypted and encoded in a random digital sequence and spread over a range of different channels, which are then recombined into its original form. This allows CDMA to utilize the full range of radio spectrum, giving it many inherent advantages over GSM in national coverage, security and reliability, and quality of service."

Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20130422006155/en/

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