Nextel Communications (ticker: NXTL, exchange: NASDAQ) News Release - 26-Oct-2000
Nextel Reports Record Third Quarter 2000 Results
-- Record Global Proportionate Subscriber Additions of 681,400;
-- Record Monthly Average Revenue Per Domestic Subscriber of $75;
-- Positive Consolidated Operating Income;
-- EPS Loss Narrows 44%
RESTON, Va., Oct. 26 /PRNewswire/ -- Nextel Communications, Inc.,
(Nasdaq: NXTL) today announced third quarter results including record global
proportionate subscriber additions of 681,400, a 59% increase in third quarter
revenue to $1.4 billion and a 105% increase in operating cash flow to $359
million during the third quarter 2000 as compared to third quarter 1999.
Highlights of the third quarter include the achievement of a new financial
milestone of $44 million in positive consolidated operating income, record
domestic operating cash flow of $392 million and continued strong growth in
the operations of Nextel International.
"Nextel continues to attract and retain the best wireless customers in the
increasingly competitive wireless industry," said Tim Donahue, Nextel's
president and CEO. "Nextel's monthly cash flow per domestic subscriber is
approximately $22 -- among the highest in the industry -- and we intend to
continue to set the pace in subscriber quality and profitability. Nextel
remains focused on serving the best customers in the wireless industry."
Record global proportionate subscriber additions of approximately 681,400
during the third quarter consists of 540,400 domestic subscriber additions and
a record 141,000 proportionate subscriber additions from Nextel International.
Nextel ended the third quarter with about 6,897,400 global proportionate
subscribers consisting of approximately 6,157,000 domestic subscribers and
approximately 740,400 proportionate international subscribers. Nextel
Partners announced subscriber additions of 51,400 for the third quarter 2000
and Nextel's proportionate share of these net additions is not reflected in
this report.
Consolidated revenue grew 59% over last year's third quarter to $1.4
billion and consists of $1.33 billion from domestic operations and $86 million
from international operations. Domestic monthly average revenue per
subscriber unit increased to about $75 which is the highest in the industry
among the national carriers, while customer churn of about 2% per month
remained among the lowest in the industry.
Consolidated operating cash flow (earnings before interest, taxes,
depreciation and amortization) grew 105% to $359 million during the quarter as
compared with $175 million during the third quarter 1999. Domestic cash flow
grew 87% to $392 million during the third quarter as compared with $210
million in the third quarter 1999. The operating cash flow loss from Nextel
International operations of $33 million was unchanged from second quarter.
The consolidated net loss attributable to common stockholders improved 35%
to $236 million during the third quarter 2000 as compared with $361 million in
the third quarter 1999. The net loss per share during the third quarter 2000
was $0.31 and improved 44% over third quarter 1999 net loss per share of
$0.55. The third quarter consolidated net loss includes gains of
approximately $21 million (or $0.03 per share) from the previously announced
sales of assets to Nextel Partners and dissolution arrangements relating to
the GSM system joint venture in Shanghai, China.
"Nextel International posted its best quarter ever," said Steve Shindler,
Nextel International's CEO. "Outstanding subscriber growth of 141,000 net
additions during the third quarter is up 100% over last year while revenue of
$86 million is up over 200% from last year. We will continue to drive Nextel
International with the same business focus that has made Nextel's domestic
operations a success."
Consolidated capital expenditures were $806 million during the third
quarter 2000 and include $666 million for domestic operations and $140 million
for international operations. Total domestic system minutes of use grew to
8.5 billion during the third quarter 2000, up 73% over third quarter 1999
domestic minutes of use of 4.9 billion.
"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, 1999 and in the 10-Q's for the
first and second quarters of 2000 filed by Nextel and Nextel International.
Nextel Communications, Inc., based in Reston, VA, is the leading provider
of fully integrated wireless communications services 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 174 of the top 200 U.S. markets. Through
recent market launches, Nextel and Nextel Partners' service is available today
in areas of the U.S. where approximately 200 million people live or work. The
Nextel National Network offers a fully integrated wireless communications tool
with digital cellular, text/numeric paging, wireless Internet access and
Nextel Direct Connect(R) -- 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, Chile
and Japan. Please visit the Company's website at nextel.com.
Nextel Communications, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in millions, except per share data)
Unaudited
Nine Months Ended Three Months Ended
September 30, September 30,
2000 1999 2000 1999
Operating revenues $3,755 $2,346 $1,416 $889
Operating expenses
Cost of revenues 760 504 286 175
Selling, general
and administrative 2,118 1,523 771 539
EBITDA 877 319 359 175
Depreciation and
amortization 898 732 315 261
Operating (loss) income (21) (413) 44 (86)
Interest expense (912) (627) (333) (220)
Interest income 298 28 111 16
Debt conversion expense (23) -- -- --
Equity in losses of
unconsolidated
affiliates (106) (49) (35) (18)
Foreign currency
transaction gains
(losses), net 9 (61) 3 (15)
Other income, net 27 78 18 3
Loss before income
tax benefit (728) (1,044) (192) (320)
Income tax benefit 24 25 8 8
Loss before
extraordinary item (704) (1,019) (184) (312)
Extraordinary loss
from extinguishments
of debt (104) -- -- --
Mandatorily redeemable
preferred stock
dividends (155) (142) (52) (49)
Loss attributable to
common stockholders $(963) $(1,161) $(236) $(361)
Loss per share
attributable to
common stockholders,
basic and diluted:
Loss before
extraordinary item
attributable to
common stockholders $(1.14) $(1.89) $(0.31) $(0.55)
Extraordinary item (0.14) -- -- --
$(1.28) $(1.89) $(0.31) $(0.55)
Weighted average
number of common
shares outstanding 754 615 761 655
Selected Balance Sheet and Other Data
(in millions, except unit data)
September 30, December 31,
2000 1999
(Unaudited)
Cash, cash equivalents and
short-term investments $6,364 $5,808
Property, plant and equipment, net 7,925 6,152
Intangible assets, net 4,851 4,551
Total assets 21,846 18,410
Long-term debt, including
current portion of $107 and $1,165 13,920 10,925
Mandatorily redeemable preferred stock 1,827 1,770
Total stockholders' equity 2,439 2,574
Digital units in service:
Domestic 6,157,000 4,515,700
Global -- proportionate (1) 6,897,400 4,919,200
(1) The subscriber unit count at December 31, 1999 includes units
attributable to Nextel's investment in our affiliate in Shanghai, China.
These subscriber units are excluded from the total subscriber count as of
September 30, 2000.
Three Months Ended
September 30, June 30,
2000 2000
Consolidated capital expenditures $ 806 $ 823
Nextel International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in millions)
Unaudited
Nine Months Ended Three Months Ended
September 30, September 30,
2000 1999 2000 1999
Operating revenues $197 $69 $86 $27
Operating expenses
Cost of revenues 52 30 23 12
Selling, general
and administrative 245 167 96 50
EBITDA (100) (128) (33) (35)
Depreciation and
amortization 103 81 38 29
Operating loss (203) (209) (71) (64)
Interest expense (177) (128) (70) (46)
Interest income 15 5 10 2
Equity in losses of
unconsolidated
affiliates (31) (21) (14) (10)
Foreign currency
transaction gains
(losses), net 9 (61) 3 (15)
Other income, net 7 16 3 3
Loss before income
tax benefit (380) (398) (139) (130)
Income tax benefit 1 -- 1 --
Net loss $(379) $(398) $(138) $(130)
Selected Balance Sheet and Other Data
(in millions, except unit data)
September 30, December 31,
2000 1999
(Unaudited)
Cash, cash equivalents and
short-term investments $602 $100
Property, plant and equipment, net 928 539
Intangible assets, net 769 455
Total assets 2,975 1,682
Long-term debt, including current
portion of $79 and $33 2,448 1,548
Total stockholders' deficit (32) (180)
International digital units
in service (1):
Total 1,418,900 1,245,600
Proportionate 740,400 403,500
(1) The subscriber unit count at December 31, 1999 includes units
attributable to Nextel's investment in our affiliate in Shanghai, China.
These subscriber units are excluded from the total subscriber count as of
September 30, 2000.
Three Months Ended
September 30, June 30,
2000 2000
International capital expenditures $140 $137 |
