Wednesday April 26, 7:02 am Eastern Time
Company Press Release
SOURCE: Nextel Communications, Inc.
Nextel Reports Record First Quarter 2000 Results
- 634,000 Global Digital Net Additions - Approximately $1.1 Billion in
Total Revenues for the Quarter - Launches Nextel Worldwide(SM) and
Nextel Online(SM) Services
RESTON, Va., April 26 /PRNewswire/ -- Nextel Communications, Inc. (Nasdaq: NXTL - news) today reported its financial
results for the first quarter of 2000 including the addition of a record 540,300 domestic digital subscribers, and 93,700
proportionate subscribers for Nextel International. Nextel ended the first quarter with a worldwide subscriber base of
approximately 5.6 million global digital subscribers.
``Accelerating momentum in the wireless industry coupled with our unique business focus has produced our best quarter ever,''
said Tim Donahue, Nextel's president and CEO. ``Nextel's first quarter global subscriber growth significantly exceeded
expectations. The near term prospects for Nextel have never been greater with a myriad of great business opportunities tied
into our differentiated approach to business communications services. Global roaming, wireless Internet services and emerging
broadband opportunities clearly make this the most exciting and opportune time for Nextel.''
Consolidated revenue for the first quarter of 2000 grew 63% to $1.08 billion when compared with $664 million generated
during the first quarter of 1999. Domestic revenue was $1.03 billion for the quarter, while international revenue was $47
million. Nextel's average monthly revenue per domestic subscriber unit remained among the best in the wireless industry at
approximately $72 in the first quarter. The monthly churn rate for the first quarter was approximately 2% for domestic
customers, one of the best levels in the wireless industry.
``For the fifth consecutive quarter, Nextel has attracted greater net additions while maintaining the highest subscriber quality in
the industry,'' said Steve Shindler, Nextel's CFO. ``With more than $18 of domestic monthly cash flow per subscriber and an
estimated $3,600 of lifetime revenue per subscriber, Nextel continues to set the pace in the emerging digital wireless industry.
Nextel International is beginning to see the same type of improvements in Latin America that our domestic operations
experienced over the last few years, supporting our belief that the value of Nextel's integrated services transcends national
boundaries.''
Nextel continued improvement in operating cash flow (earnings before interest, taxes, depreciation and amortization) during the
quarter. Operating cash flow from consolidated operations was $228 million in the first quarter --?more than six times higher
than 1999's first-quarter cash flow of $35 million. In the first quarter of 2000, domestic operations produced $262 million in
operating cash flow, a 220% improvement over 1999's first quarter domestic operating cash flow of $82 million. International
operations produced a cash flow loss of $34 million in the first quarter of 2000, a 28% improvement over 1999's first quarter
loss of $47 million.
The consolidated first quarter 2000 net loss per share before one-time charges was $0.83 per share -- a 50% improvement
when compared with the $1.66 per share loss in the first quarter of 1999. In the first quarter of 2000, the consolidated net loss
attributable to common stockholders was $435 million, or $1.17 per share and includes one-time charges of $127 million, or
$0.34 per share for the early retirement of debt and for the conversion of debt securities.
The per share amounts mentioned above are based upon a weighted average number of shares outstanding of 370,759,000
and do not reflect the effect of the proposed 2-for-1 stock split which Nextel announced on February 22, 2000. Shareholders
are scheduled to vote on an increase in authorized shares required to accomplish the stock split at the upcoming shareholder
meeting on May 25th.
Domestic capital expenditures were $661 million in the first quarter of 2000 as compared with $684 million in the fourth quarter
of 1999. International capital expenditures were $116 million in the first quarter as compared with $50 million in the fourth
quarter of 1999.
Total domestic system minutes of use on the Nextel National Network increased 85% during the quarter when compared with
the same period in 1999 to approximately 6.3 billion total system minutes of use in the first quarter 2000. During the first
quarter, approximately 11 million Internet text messages were sent on the Nextel National Network, representing a 280%
increase over last year's first-quarter Internet text messages. Nextel ended the first quarter with approximately 1.9 million
data-capable handsets in service.
On April 3, 2000, Nextel announced the launch of its Nextel Worldwide service providing customers a dual mode iDEN/GSM
handset with the ability to use one phone and have one number in more than 65 countries including 18 of the world's 25 largest
cities. Earlier this week, Nextel announced the launch of its Nextel Online and wireless Internet services in 45 major markets
and more than 750 cities across the country. Visit our website for more information.
``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.
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 96 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 Connect(SM) -- 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 our website at nextel.com . |
