Nextel President to Provide Update at Investor Conference; 2002: A 'Breakthrough'; 2003: Company Expects to be Positive Free Cash Flow
Business Wire - January 08, 2003 14:58
LA QUINTA, Calif.--(BUSINESS WIRE)--Jan. 8, 2003--In a keynote speech at the Salomon Smith Barney Telecommunications and Media conference in La Quinta, Calif., Nextel Communications Inc. (NASDAQ:NXTL) President and CEO Tim Donahue will tell investors today that 2002 was a breakthrough year for the wireless company and he looks forward to another stellar year in 2003 as well.
To view the live Web cast of Donahue's speech, which begins at 3:30 p.m. (EST), 12:30 p.m. (PST), visit veracast.com.
"By all measures, 2002 was an extremely successful year for Nextel," according to Donahue. "Not only did we accomplish our goal to gain more than 1.9 million net new subscribers, but we expect to generate at least $3.1 billion in operating cash flow and also reduce capital expenditures by more than 20 percent over 2001, to under $1.9 billion. In addition, during 2002 we significantly improved our balance sheet by reducing debt, and achieved positive net income, which are record achievements for Nextel."
The details of the 2002 year-end financial results will be announced during Nextel's 4th Quarter earnings call that will be held toward the end of February. Sales in December were the strongest in Nextel's history, driven in part by robust sales across all channels, particularly lower-cost distribution channels.
"Even in this challenging climate, we continue to see great opportunity for growth in the FORTUNE 1000, small and mid-sized businesses, government, other vertical industries and the high-end individual decision-maker," said Donahue. "All our indications are pointing to achieving positive free cash flow in 2003. We'll do this by maintaining our focus of attracting and keeping the most valuable customers in the wireless industry while at the same time streamlining our cost structure. We'll also continue to lead the industry with rational pricing of wireless service, price plan packages and equipment subsidies. Because we deliver what no other company can with our nationwide packet data network and Nextel Direct Connect(R), the digital long-range walkie-talkie feature, we're able to price our service to deliver greater value, while giving our customers an obvious return on their investment through greater productivity." |
