Tuesday February 22, 7:12 am Eastern Time
Company Press Release
SOURCE: Nextel Communications, Inc.
Nextel Reports 1999 Results
- Announces 2-for-1 Stock Split - - Record Fourth Quarter Global Digital Subscriber Additions of
549,100 - - $698 Million in 1999 Domestic Operating Cash Flow -
RESTON, Va., Feb. 22 /PRNewswire/ -- Nextel Communications, Inc., (Nasdaq: NXTL - news) today reported its 1999
financial results and announced Board of Directors approval for a 2-for-1 common stock split. Upon shareholder consideration
and approval of a proposed increase in the authorized equity capitalization at the annual shareholders meeting scheduled for
May 25, the new shares will be distributed on June 6 to shareholders of record as of May 26, 2000.
1999 financial highlights include: $698 million in positive domestic operating cash flow, the addition of 1,777,800 domestic
digital subscribers, and a more than doubling of proportionate subscribers at Nextel International. Nextel ended 1999 with
more than 4.9 million global digital subscribers. Fourth-quarter 1999 highlights include: record global digital subscriber
additions of 549,100, consisting of a record 464,800 domestic subscriber additions, and a record 84,300 proportionate
subscriber additions at Nextel International. Domestic operations achieved the important milestone of positive operating income
with $6 million recorded during the fourth quarter.
``1999 was an outstanding year,' said Tim Donahue, Nextel's president and CEO. ``Nextel is harnessing the value of our
growth initiatives while meeting the challenges of impressive global demand for our innovative wireless communications
services. In 2000, Nextel will pursue several strategic initiatives including aggressively growing our domestic and global wireless
operations, launching our Nextel Worldwide(SM) GSM/iDEN roaming services, and introducing innovative wireless Internet
products and services.'
During 1999, domestic digital subscribers increased 62% to 4,515,700 ending subscribers. Nextel International grew its
proportionate subscribers in 1999 by 2.4 times, ending the year with 403,500 proportionate digital subscribers.
Consolidated revenue grew 80% over 1998's consolidated revenue of $1.847 billion to $3.326 billion for 1999, and was $980
million in the fourth quarter of 1999. Domestic revenue was $3.222 billion for the year and $945 million in the fourth quarter.
International revenue was $104 million for the year and $35 million in the fourth quarter. Nextel's average monthly revenue per
domestic subscriber unit remained among the best in the wireless industry, increasing $4 during the year to approximately $73
in 1999, as compared with approximately $69 in 1998. Fourth-quarter average monthly revenue per domestic subscriber was
also $73. The domestic monthly churn rate for the fourth quarter remained at one of the best levels in the wireless industry at
approximately 2%.
Domestic operating cash flow (earnings before interest, taxes, depreciation and amortization) was $698 million in 1999,
compared with an operating cash flow loss of $99 million in 1998. In the fourth quarter, domestic operations produced $251
million in operating cash flow -- approximately six times 1998's fourth-quarter domestic cash flow of $42 million.
``Nextel exceeded projections in 1999 and in the fourth quarter,' said Steve Shindler, Nextel's CFO. ``Our fourth-quarter
domestic cash flow of $251 million puts Nextel at an annualized run-rate of more than $1 billion in cash flow -- positioning
Nextel as a powerful force in the emerging global wireless marketplace. Nextel's 1999 domestic conversion ratio of new
revenue to cash flow was 56% and our fourth-quarter domestic monthly cash flow per subscriber of just over $19 is among the
best in the wireless industry. Nextel ended 1999 in excellent condition with approximately $5.8 billion in cash and marketable
securities and we will continue to use our resources to pursue high-growth strategies.'
The consolidated net loss attributable to common stockholders decreased $271 million to $1.5 billion in 1999 as compared
with a loss of $1.8 billion in 1998. The net loss was $4.79 per share in 1999, down 26% from the $6.46 per share loss in
1998. The consolidated fourth-quarter 1999 net loss per share before the extraordinary charge was $0.85 per share and
decreased 41% as compared with $1.43 per share loss in the fourth quarter of 1998 and was approximately $0.15 cents
better than consensus analyst expectations. In the fourth quarter of 1999, the consolidated net loss attributable to common
stockholders was $369 million, or $1.04 per share and includes an extraordinary charge of $68 million, or $0.19 per share, for
the early retirement of debt. The per share amounts mentioned above for 1999 results do not reflect the effect of the proposed
year 2000 stock split.
During the fourth quarter, Nextel completed the largest primary offering of equity (i.e., a non-IPO, non-secondary stock
offering) in U.S. history, successfully placing 33.8 million shares raising over $2.8 billion. In other fourth-quarter financing
activities, Nextel completed a $2 billion debt offering to refinance approximately $1.7 billion in long term debt, and we
expanded our Bank Facility to $5 billion. More recently, Nextel completed a convertible bond issue during the first quarter of
2000 raising $1.15 billion.
Capital expenditures in 1999 for domestic operations were $1.9 billion and $173 million for international operations. In the
fourth quarter, domestic capital expenditures were $684 million and capital expenditures in international operations were $50
million.
Total domestic system minutes of use on the Nextel National Network increased 94% to approximately 18 billion minutes of
use during the year. Domestic digital cell sites on air increased 44% in 1999 to approximately 8,800 sites. Nextel ended 1999
with approximately 1.1 million data-capable handsets in service. During the fourth quarter, approximately 8.2 million Internet
text messages were sent on the Nextel National Network, representing an increase of 273% over last year's fourth quarter
Internet text messages of 2.2 million.
``Safe Harbor' Statement under the Private Securities Litigation Reform Act of 1995 A number of the matters and subject
areas discussed in this press release that are not historical or current facts deal with potential future circumstances and
developments. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding
future expectations generally, and also may materially differ from Nextel and Nextel International's actual future experience
involving any one or more of such matters and subject areas. Nextel and Nextel International have attempted to identify, in
context, certain of the factors that they currently believe may cause actual future experience and results to differ from Nextel's
and/or Nextel International's current expectations regarding the relevant matter or subject area. Such risks and uncertainties
include those that are described from time to time in Nextel's and Nextel International's reports filed with the SEC, including
Nextel's and Nextel International's Annual Report on Form 10-K for the fiscal year ended December 31, 1998 and their
respective Quarterly Report on Form 10-Q for the quarters ended March 31, 1999, June 30, 1999 and September 30, 1999.
Nextel Communications, Inc., based in Reston, VA, is the leading provider of fully integrated wireless communications and has
built the largest guaranteed all-digital wireless network in the United States covering thousands of communities across the
United States. Nextel and Nextel Partners, Inc., currently serve 94 of the top 100 U.S. markets. Through recent market
launches, Nextel and Nextel Partners' service is available today in areas of the U.S. where approximately 190 million people
live or work. The Nextel National Network offers a fully integrated wireless communications tool with digital cellular,
text/numeric paging and Nextel Direct Connectsm -- a digital two-way radio feature. In addition, through Nextel International,
Inc., Nextel has wireless operations and investments in Canada, Mexico, Argentina, Brazil, the Philippines, Peru, Japan and
Shanghai, China. Please visit its website at nextel.com. |
