RESTON, Va., March 10, 2015 /PRNewswire/ -- NII Holdings,
Inc. today announced its consolidated financial results for the
fourth quarter and full year 2014. For the fourth quarter of
2014, the Company reported 129,000 net subscriber additions,
marking the first quarter the Company has achieved consolidated
subscriber growth since the second quarter of 2013. Financial
results for the fourth quarter of 2014 include consolidated
operating revenues of $854 million, a
consolidated adjusted OIBDA loss of $83
million, and a consolidated operating loss of $336 million. Consolidated adjusted OIBDA results
for the quarter and the full year exclude the impact of non-cash
asset impairments, restructuring charges and other unusual items.
Capital expenditures were $132
million for the fourth quarter of 2014.
For the full year 2014, the Company reported a net loss of
61,000 subscribers bringing its year-end base to 9.2 million
subscribers. Financial results for the full year 2014 include
consolidated operating revenues of $3.7
billion, a consolidated adjusted OIBDA loss of $251 million, and a consolidated operating loss
of $1.11 billion. Capital
expenditures were $428 million for
the full year 2014.
"Our fourth quarter operational and financial results are
beginning to show improvement, although we still fell short of our
goals," said Steve Shindler, NII
Holdings' chief executive officer. "Our return to subscriber growth
for the first time in six quarters reflects a turning point in our
business and is a significant step forward in our efforts to return
to revenue growth, and ultimately, profitability. Our focus for
2015 will be to continue to build on this subscriber growth trend
and improve our operating performance."
NII Holdings' consolidated average monthly service revenue per
subscriber (ARPU) was $25 for the
fourth quarter, down sequentially from $28 in the third quarter. The Company also
reported consolidated average monthly churn of 3.4 percent for the
fourth quarter, consistent with the monthly churn rate in the third
quarter of 2014 and a 47 basis point decrease from the churn rate
reported in the fourth quarter of 2013. Consolidated cost per
gross subscriber addition (CPGA) was $227 for the fourth quarter, a $9 decrease from the third quarter of 2014.
During the fourth quarter the Company recorded a $34.0 million charge for inventory obsolescence;
without this charge CPGA would have been $195 instead of $227 during the period.
On January 26, 2015, the Company
announced an agreement to sell its operations in Mexico to AT&T. The sale is subject
to the approval of the U.S. Bankruptcy Court for the Southern
District of New York, where the
Chapter 11 cases initiated by the Company and certain of its
subsidiaries are pending, regulatory approvals in Mexico and the completion of a competitive
bidding process that will be conducted under the supervision of the
Bankruptcy Court. This transaction is expected to close by
mid-2015. Additional information regarding the transaction with
AT&T is included in the Current Report and in the Form 8-K
filed with the Securities and Exchange Commission on January 26, 2015.
"We remain confident that we can grow our subscriber and revenue
base, while continuing to streamline our cost structure," said
Juan Figuereo, NII Holdings'
executive vice president and chief financial officer. "Our
objective in 2014 was to improve our business performance primarily
by returning to subscriber growth, and while we were able to
finally achieve that goal in the fourth quarter, our diminishing
liquidity made it necessary for us to file for Chapter 11
protection in order to restructure our debt. Given the economics of
the restructuring and the potential challenges we were facing in
implementing it, we determined that the sale of our Mexican
operations would provide a better outcome for our creditors and
other stakeholders. We expect this transaction will improve our
liquidity and provide funding to invest in our Brazil business, which we believe provides a
significant opportunity to create long-term value for our
stakeholders."
In light of its decision to file a voluntary petition for relief
under Chapter 11 of the Bankruptcy Code last year, the Company will
not host a financial results conference call this quarter.
Additional details regarding the Company's results and the
bankruptcy proceedings are included in the Company's Annual Report
on Form 10-K for 2014 that was filed with the Securities and
Exchange Commission. Additional information on the Company's
bankruptcy proceedings, including motions filed with the bankruptcy
court and orders issued by the court may be accessed through the
website of the Company's bankruptcy claims and noticing agent at
https://cases.primeclerk.com/nii/. Additional operational and
financial details are also available under the Investor Relations
link at www.nii.com.
In addition to the financial results prepared in accordance with
accounting principles generally accepted in the United States (GAAP) provided throughout
this press release and in the attached financial tables, NII
Holdings has presented consolidated adjusted OIBDA, ARPU, and CPGA.
These measures are non-GAAP financial measures and should be
considered in addition to, but not as substitutes for, the
information prepared in accordance with GAAP. Reconciliations from
GAAP results to these non-GAAP financial measures are provided in
the notes to the attached financial tables. To view these and other
reconciliations of non-GAAP financial measures that the Company
uses, visit the investor relations link at www.nii.com.
About NII Holdings, Inc.
NII Holdings, Inc., a publicly held company based in
Reston, VA, is a provider of
differentiated mobile communication services for businesses and
high value consumers in Latin
America. NII Holdings, operating under the Nextel brand in
Brazil, Mexico and Argentina, offers fully integrated wireless
communications tools with digital cellular voice services, data
services, wireless Internet access and Nextel Direct
Connect® and International Direct ConnectSM,
a digital two-way radio. NII Holdings has been named one of the
best places to work among multinationals in Latin America by the Great Place to
Work® Institute. Visit the Company's website
atwww.nii.com.
Nextel, the Nextel logo and Nextel Direct Connect are
trademarks and/or service marks of Nextel Communications,
Inc.
Visit NII Holdings' news room for news and to access the news
centers for the Company's market operations: nii.com/newsroom.
Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995. This news release includes
"forward-looking statements" within the meaning of the securities
laws. The statements in this news release regarding the business
outlook, future performance and forward-looking guidance, as well
as other statements that are not historical facts, 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, the Company's ability to
meet its business plans, the Company's ability to close the sale of
its Mexico operations, the
Company's ability to develop and gain creditor support for a plan
of reorganization and emerge from its Chapter 11 bankruptcy
proceedings, customer growth and retention, pricing, network usage,
operating costs, the timing of various events, the economic and
regulatory environment and the foreign exchange rates that will
prevail during 2015. Future performance cannot be assured and
actual results may differ materially from those in the
forward-looking statements. Some factors that could cause actual
results to differ include the risks and uncertainties relating to
the impact of liquidity constraints; the impact of more
intense competitive conditions and changes in economic conditions
in the markets we serve; the risk that the Company's network
technologies will not perform properly or support the services our
customers want or need; the ability of the Company to continue as a
going concern; the ability to complete the sale of the Company's
Mexico operations; the
ability to obtain Bankruptcy Court approval with respect to motions
in the Chapter 11 proceedings including with respect to the sale of
the Company's Mexico operations;
the ability to develop, obtain creditor support for, and complete
one or more plans of reorganization with respect to the Company's
and certain of its subsidiaries' Chapter 11 proceedings; the impact
of Bankruptcy Court rulings in the Chapter 11 proceedings and the
outcome of the Chapter 11 proceedings in general; the length of
time the Company and certain of its subsidiaries remain subject to
the Chapter 11 proceedings and the Bankruptcy Court's jurisdiction;
risks associated with actions taken or motions filed by third
parties in the Chapter 11 proceedings, which may interfere with the
ability to develop and consummate one or more plans of
reorganization once such plans are developed; the potential adverse
effects of the Chapter 11 proceedings on the liquidity,
results of operations, brand or business prospects of the Company's
operating subsidiaries, the ability to execute the Company's
business and restructuring plan; increased legal costs related to
the Chapter 11 proceedings and other litigation; and the additional
risks and uncertainties that are described in NII Holdings' Annual
Report on Form 10-K for the fiscal year ended December 31, 2014, as well as in other reports
filed from time to time by NII Holdings with the Securities and
Exchange Commission. This press release speaks only as of its date,
and NII Holdings disclaims any duty to update the information
herein.
Media Contacts:
NII Holdings, Inc.
1875 Explorer Street, Suite
1000
Reston, VA. 20190
(703) 390-5100
www.nii.com
Investor and Media Relations: Tahmin Clarke
(703) 390-7174
tahmin.clarke@nii.com
NII HOLDINGS, INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
FOR THE YEARS AND
THREE MONTHS ENDED DECEMBER 31, 2014 AND 2013
(in millions,
except per share amounts)
|
|
Year
Ended
December
31,
|
|
Three Months
Ended
December 31,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
Service and
other revenues
|
$
|
3,447.2
|
|
|
$
|
4,517.2
|
|
|
$
|
805.8
|
|
|
$
|
1,006.1
|
|
Handset and
accessory revenues
|
241.5
|
|
|
194.4
|
|
|
48.4
|
|
|
57.7
|
|
|
3,688.7
|
|
|
4,711.6
|
|
|
854.2
|
|
|
1,063.8
|
|
Operating
expenses
Cost of
service (exclusive of depreciation and amortization
included below)
|
1,308.8
|
|
|
1,392.2
|
|
|
319.6
|
|
|
296.4
|
|
Cost of
handsets and accessories
|
973.5
|
|
|
884.8
|
|
|
224.5
|
|
|
249.3
|
|
Selling,
general and administrative
|
1,699.1
|
|
|
1,941.8
|
|
|
393.3
|
|
|
498.8
|
|
Impairment and
restructuring charges
|
220.7
|
|
|
168.5
|
|
|
92.4
|
|
|
21.5
|
|
(Gain) loss on
sale of towers
|
(74.6)
|
|
|
—
|
|
|
0.8
|
|
|
—
|
|
Depreciation
|
592.1
|
|
|
629.6
|
|
|
137.4
|
|
|
136.6
|
|
Amortization
|
80.6
|
|
|
63.3
|
|
|
21.9
|
|
|
16.9
|
|
|
4,800.2
|
|
|
5,080.2
|
|
|
1,189.9
|
|
|
1,219.5
|
|
Operating
loss
|
(1,111.5)
|
|
|
(368.6)
|
|
|
(335.7)
|
|
|
(155.7)
|
|
Other (expense)
income
Interest
expense, net
|
(449.3)
|
|
|
(526.5)
|
|
|
(58.5)
|
|
|
(144.3)
|
|
Interest
income
|
66.4
|
|
|
43.3
|
|
|
20.1
|
|
|
18.6
|
|
Foreign
currency transaction losses, net
|
(130.5)
|
|
|
(123.4)
|
|
|
(81.5)
|
|
|
(48.6)
|
|
Other expense,
net
|
(6.7)
|
|
|
(12.8)
|
|
|
(4.7)
|
|
|
(4.3)
|
|
|
(520.1)
|
|
|
(619.4)
|
|
|
(124.6)
|
|
|
(178.6)
|
|
Loss from
continuing operations before reorganization
items and income tax provision
|
(1,631.6)
|
|
|
(988.0)
|
|
|
(460.3)
|
|
|
(334.3)
|
|
Reorganization
items
|
(71.6)
|
|
|
—
|
|
|
(13.0)
|
|
|
—
|
|
Income tax
provision
|
(74.1)
|
|
|
(446.1)
|
|
|
(34.0)
|
|
|
(371.2)
|
|
Net loss from
continuing operations
|
(1,777.3)
|
|
|
(1,434.1)
|
|
|
(507.3)
|
|
|
(705.5)
|
|
Loss from
discontinued operations, net of income taxes
|
(180.4)
|
|
|
(215.5)
|
|
|
(7.6)
|
|
|
(40.3)
|
|
Net
loss
|
$
|
(1,957.7)
|
|
|
$
|
(1,649.6)
|
|
|
$
|
(514.9)
|
|
|
$
|
(745.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations per common
share,
basic and diluted
|
$
|
(10.31)
|
|
|
$
|
(8.34)
|
|
|
$
|
(2.95)
|
|
|
$
|
(4.10)
|
|
Net loss from
discontinued operations per
common
share, basic and diluted
|
(1.05)
|
|
|
(1.26)
|
|
|
(0.04)
|
|
|
(0.23)
|
|
Net loss per
common share, basic and diluted
|
$
|
(11.36)
|
|
|
$
|
(9.60)
|
|
|
$
|
(2.99)
|
|
|
$
|
(4.33)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding,
basic
and diluted
|
172.3
|
|
|
171.9
|
|
|
172.4
|
|
|
172.0
|
|
CONSOLIDATED
BALANCE SHEETS
(in millions,
except par values)
|
|
December 31,
2014
|
|
December 31,
2013
|
|
(unaudited)
|
ASSETS
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
573.6
|
|
|
$
|
1,730.3
|
|
Short-term
investments
|
153.6
|
|
|
585.8
|
|
Accounts receivable,
less allowance for doubtful accounts of $55.0 and $54.5
|
398.7
|
|
|
511.4
|
|
Handset and accessory
inventory
|
207.6
|
|
|
336.6
|
|
Deferred income
taxes, net
|
50.7
|
|
|
127.4
|
|
Prepaid expenses and
other
|
329.2
|
|
|
397.6
|
|
Assets related to
discontinued operations
|
—
|
|
|
59.1
|
|
Total current
assets
|
1,713.4
|
|
|
3,748.2
|
|
Property, plant
and equipment, net
|
2,432.9
|
|
|
3,337.6
|
|
Intangible assets,
net
|
822.1
|
|
|
980.4
|
|
Deferred income
taxes, net
|
5.8
|
|
|
26.7
|
|
Other
assets
|
456.4
|
|
|
477.3
|
|
Assets related to
discontinued operations
|
—
|
|
|
109.8
|
|
Total
assets
|
$
|
5,430.6
|
|
|
$
|
8,680.0
|
|
LIABILITIES AND
STOCKHOLDERS' (DEFICIT) EQUITY
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
$
|
279.8
|
|
|
$
|
346.1
|
|
Accrued expenses and
other
|
563.0
|
|
|
959.1
|
|
Deferred
revenues
|
89.0
|
|
|
127.8
|
|
Current portion of
long-term debt
|
777.6
|
|
|
96.8
|
|
Deposits related to
2013 sale of towers
|
—
|
|
|
720.0
|
|
Liabilities related
to discontinued operations
|
—
|
|
|
36.8
|
|
Total current
liabilities
|
1,709.4
|
|
|
2,286.6
|
|
Long-term
debt
|
734.8
|
|
|
5,696.7
|
|
Deferred income
tax liabilities
|
58.1
|
|
|
109.0
|
|
Other long-term
liabilities
|
299.6
|
|
|
227.0
|
|
Liabilities
related to discontinued operations
|
—
|
|
|
5.3
|
|
Total
liabilities
|
2,801.9
|
|
|
8,324.6
|
|
Liabilities
subject to compromise
|
4,593.5
|
|
|
—
|
|
Commitments and
contingencies
|
|
|
|
|
|
Stockholders'
(deficit) equity
|
|
|
|
|
|
Undesignated
preferred stock, par value $0.001, 10.0 shares authorized, no
shares issued or
outstanding
|
—
|
|
|
—
|
|
Common stock, par
value $0.001, 600.0 shares authorized, 172.4
shares issued and outstanding — 2014, 172.1 shares
issued and outstanding — 2013
|
0.2
|
|
|
0.2
|
|
Paid-in
capital
|
1,517.1
|
|
|
1,504.3
|
|
Accumulated
deficit
|
(2,150.7)
|
|
|
(193.0)
|
|
Accumulated other
comprehensive loss
|
(1,331.4)
|
|
|
(956.1)
|
|
Total stockholders'
(deficit) equity
|
(1,964.8)
|
|
|
355.4
|
|
Total liabilities and
stockholders' (deficit) equity
|
$
|
5,430.6
|
|
|
$
|
8,680.0
|
|
CONSOLIDATED CASH
FLOW DATA
(in
millions)
|
|
Year
Ended
December
31,
|
|
2014
|
|
|
2013
|
|
|
(unaudited)
|
Cash and cash
equivalents, beginning of year
|
$
|
1,730.3
|
|
|
$
|
1,364.9
|
|
Net cash used in
operating activities
|
(628.7)
|
|
|
(192.5)
|
|
Net cash used in
investing activities
|
(347.6)
|
|
|
(177.6)
|
|
Net cash (used in)
provided by financing activities
|
(128.3)
|
|
|
776.6
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(55.6)
|
|
|
(56.2)
|
|
Change in cash and
cash equivalents related to discontinued operations
|
3.5
|
|
|
15.1
|
|
Cash and cash
equivalents, end of year
|
$
|
573.6
|
|
|
$
|
1,730.3
|
|
NII HOLDINGS, INC.
AND SUBSIDIARIES
OPERATING RESULTS
AND METRICS
FOR THE YEARS AND
THREE MONTHS ENDED DECEMBER 31, 2014 AND 2013
(UNAUDITED)
|
NII Holdings,
Inc. (1)
|
(subscribers in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
Three Months
Ended
December
31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
iDEN
|
5,513.0
|
|
|
7,718.0
|
|
|
5,513.0
|
|
|
7,718.0
|
|
|
WCDMA
|
3,671.4
|
|
|
1,527.8
|
|
|
3,671.4
|
|
|
1,527.8
|
|
|
Total
subscriber units in commercial service (as of December
31)
|
9,184.4
|
|
|
9,245.8
|
|
|
9,184.4
|
|
|
9,245.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iDEN net subscriber
losses
|
(1,158.5)
|
|
|
(908.4)
|
|
|
(113.2)
|
|
|
(461.4)
|
|
|
WCDMA net subscriber
additions
|
1,097.1
|
|
|
650.5
|
|
|
242.2
|
|
|
199.4
|
|
|
Total
net subscriber (losses) additions
|
(61.4)
|
|
|
(257.9)
|
|
|
129.0
|
|
|
(262.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Migrations from
iDEN to WCDMA
|
1,046.5
|
|
|
818.2
|
|
|
241.2
|
|
|
208.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iDEN customer
churn
|
3.75
|
%
|
|
3.21
|
%
|
|
3.57
|
%
|
|
4.06
|
%
|
|
WCDMA customer
churn
|
2.57
|
%
|
|
1.91
|
%
|
|
3.13
|
%
|
|
2.63
|
%
|
|
Churn
(%)
|
3.40
|
%
|
|
3.11
|
%
|
|
3.40
|
%
|
|
3.87
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average monthly
revenue per handset/unit in service (ARPU) (1)
|
$
|
28
|
|
|
$
|
35
|
|
|
$
|
25
|
|
|
$
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost per gross add
(CPGA) (1)
|
$
|
260
|
|
|
$
|
280
|
|
|
$
|
227
|
|
|
$
|
344
|
|
|
(1) All operating results and metrics presented herein
have been adjusted to exclude the results of Nextel Peru and Nextel
Chile, which have been accounted for as discontinued
operations.
Nextel
Brazil
|
(dollars in
millions, except ARPU and CPGA, and subscribers in
thousands)
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
Three Months
Ended
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
Operating
revenues
Service and
other revenues
|
$
|
1,694.2
|
|
|
$
|
2,109.3
|
|
|
$
|
403.7
|
|
|
$
|
468.0
|
|
|
Handset and
accessory revenues
|
154.7
|
|
|
98.7
|
|
|
28.3
|
|
|
34.6
|
|
|
|
1,848.9
|
|
|
2,208.0
|
|
|
432.0
|
|
|
502.6
|
|
|
Operating
expenses
Cost of
service (exclusive of depreciation and amortization
included below)
|
693.0
|
|
|
767.9
|
|
|
160.2
|
|
|
163.5
|
|
|
Cost of
handsets and accessories
|
415.1
|
|
|
250.7
|
|
|
103.7
|
|
|
92.2
|
|
|
Selling,
general and administrative
|
874.5
|
|
|
878.3
|
|
|
217.4
|
|
|
243.3
|
|
|
Segment (losses)
earnings
|
$
|
(133.7)
|
|
|
$
|
311.1
|
|
|
$
|
(49.3)
|
|
|
$
|
3.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iDEN
|
2,669.2
|
|
|
3,620.3
|
|
|
2,669.2
|
|
|
3,620.3
|
|
|
WCDMA
|
1,672.3
|
|
|
337.9
|
|
|
1,672.3
|
|
|
337.9
|
|
|
Total
subscriber units in commercial service (as of December
31)
|
4,341.5
|
|
|
3,958.2
|
|
|
4,341.5
|
|
|
3,958.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iDEN net subscriber
losses
|
(537.1)
|
|
|
(201.6)
|
|
|
(176.3)
|
|
|
(53.0)
|
|
|
WCDMA net subscriber
additions
|
920.4
|
|
|
313.5
|
|
|
241.5
|
|
|
123.1
|
|
|
Total
net subscriber additions
|
383.3
|
|
|
111.9
|
|
|
65.2
|
|
|
70.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Migrations from
iDEN to WCDMA
|
414.0
|
|
|
24.4
|
|
|
97.0
|
|
|
24.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iDEN customer
churn
|
2.72
|
%
|
|
2.70
|
%
|
|
3.00
|
%
|
|
2.50
|
%
|
|
WCDMA customer
churn
|
2.03
|
%
|
|
0.95
|
%
|
|
2.21
|
%
|
|
1.17
|
%
|
|
Churn
(%)
|
2.55
|
%
|
|
2.64
|
%
|
|
2.71
|
%
|
|
2.42
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
(1)
|
$
|
30
|
|
|
$
|
40
|
|
|
$
|
27
|
|
|
$
|
34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CPGA
(1)
|
$
|
277
|
|
|
$
|
234
|
|
|
$
|
295
|
|
|
$
|
334
|
|
|
Nextel
Mexico
|
(dollars in
millions, except ARPU and CPGA, and subscribers in
thousands)
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
Three Months
Ended
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
Operating
revenues
Service and
other revenues
|
$
|
1,375.4
|
|
|
$
|
1,832.7
|
|
|
$
|
311.8
|
|
|
$
|
406.4
|
|
|
Handset and
accessory revenues
|
41.8
|
|
|
40.0
|
|
|
9.3
|
|
|
7.6
|
|
|
|
1,417.2
|
|
|
1,872.7
|
|
|
321.1
|
|
|
414.0
|
|
|
Operating
expenses
Cost of
service (exclusive of depreciation and amortization
included
below)
|
511.1
|
|
|
484.4
|
|
|
133.5
|
|
|
114.6
|
|
|
Cost of
handsets and accessories
|
491.0
|
|
|
547.0
|
|
|
102.4
|
|
|
133.9
|
|
|
Selling,
general and administrative
|
505.6
|
|
|
661.4
|
|
|
115.8
|
|
|
158.4
|
|
|
Segment (losses)
earnings
|
$
|
(90.5)
|
|
|
$
|
179.9
|
|
|
$
|
(30.6)
|
|
|
$
|
7.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iDEN
|
889.4
|
|
|
2,074.6
|
|
|
889.4
|
|
|
2,074.6
|
|
|
WCDMA
|
1,999.1
|
|
|
1,189.9
|
|
|
1,999.1
|
|
|
1,189.9
|
|
|
Total
subscriber units in commercial service (as of December
31)
|
2,888.5
|
|
|
3,264.5
|
|
|
2,888.5
|
|
|
3,264.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iDEN net subscriber
losses
|
(552.7)
|
|
|
(974.2)
|
|
|
(58.0)
|
|
|
(466.3)
|
|
|
WCDMA net subscriber
additions
|
176.7
|
|
|
337.0
|
|
|
0.7
|
|
|
76.2
|
|
|
Total
net subscriber losses
|
(376.0)
|
|
|
(637.2)
|
|
|
(57.3)
|
|
|
(390.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Migrations from
iDEN to WCDMA
|
632.5
|
|
|
793.9
|
|
|
144.0
|
|
|
183.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iDEN customer
churn
|
5.25
|
%
|
|
3.63
|
%
|
|
3.81
|
%
|
|
6.70
|
%
|
|
WCDMA customer
churn
|
2.90
|
%
|
|
2.21
|
%
|
|
3.85
|
%
|
|
2.97
|
%
|
|
Churn
(%)
|
3.93
|
%
|
|
3.46
|
%
|
|
3.83
|
%
|
|
5.59
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
(1)
|
$
|
34
|
|
|
$
|
36
|
|
|
$
|
31
|
|
|
$
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CPGA
(1)
|
$
|
411
|
|
|
$
|
559
|
|
|
$
|
261
|
|
|
$
|
729
|
|
|
Nextel
Argentina
|
(dollars in
millions, except ARPU and CPGA, and subscribers in
thousands)
|
|
|
|
|
|
|
|
|
|
Year
Ended
December
31,
|
|
Three Months
Ended
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
Operating
revenues
Service and
other revenues
|
$
|
379.9
|
|
|
$
|
575.5
|
|
|
$
|
90.3
|
|
|
$
|
131.7
|
|
|
Handset and
accessory revenues
|
45.1
|
|
|
60.9
|
|
|
10.8
|
|
|
15.6
|
|
|
|
425.0
|
|
|
636.4
|
|
|
101.1
|
|
|
147.3
|
|
|
Operating
expenses
Cost of
service (exclusive of depreciation and amortization
included
below)
|
105.2
|
|
|
140.4
|
|
|
25.9
|
|
|
18.4
|
|
|
Cost of
handsets and accessories
|
69.7
|
|
|
90.9
|
|
|
18.4
|
|
|
23.1
|
|
|
Selling,
general and administrative
|
173.9
|
|
|
225.7
|
|
|
42.9
|
|
|
57.1
|
|
|
Segment
earnings
|
$
|
76.2
|
|
|
$
|
179.4
|
|
|
$
|
13.9
|
|
|
$
|
48.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iDEN
|
1,954.4
|
|
|
2,023.1
|
|
|
1,954.4
|
|
|
2,023.1
|
|
|
WCDMA
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
subscriber units in commercial service (as of December
31)
|
1,954.4
|
|
|
2,023.1
|
|
|
1,954.4
|
|
|
2,023.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iDEN net subscriber
(losses) additions
|
(68.7)
|
|
|
267.5
|
|
|
5.0
|
|
|
58.0
|
|
|
WCDMA net subscriber
additions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
net subscriber (losses) additions
|
(68.7)
|
|
|
267.5
|
|
|
5.0
|
|
|
58.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iDEN customer
churn
|
4.40
|
%
|
|
3.42
|
%
|
|
4.29
|
%
|
|
3.73
|
%
|
|
WCDMA customer
churn
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Churn
(%)
|
4.40
|
%
|
|
3.42
|
%
|
|
4.29
|
%
|
|
3.73
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
(1)
|
$
|
14
|
|
|
$
|
22
|
|
|
$
|
14
|
|
|
$
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CPGA
(1)
|
$
|
68
|
|
|
$
|
84
|
|
|
$
|
63
|
|
|
$
|
83
|
|
|
(1) For information regarding ARPU and CPGA, see "Non-GAAP
Reconciliations for the Years and Three Months Ended December 31, 2014 and 2013" included in this
release.
NON-GAAP RECONCILIATIONS
FOR THE
YEARS AND THREE MONTHS ENDED DECEMBER 31,
2014 AND 2013
(UNAUDITED)
Consolidated OIBDA and Consolidated Adjusted OIBDA
Consolidated operating income before depreciation and
amortization, or OIBDA, represents operating income before
depreciation and amortization expense. Consolidated adjusted
operating income before depreciation and amortization, or adjusted
OIBDA, represents consolidated operating income before depreciation
expense, amortization expense, material asset impairments,
severance costs associated with publicly announced restructuring
plans and other material non-recurring or unusual charges.
Consolidated OIBDA and consolidated adjusted OIBDA are not
measurements under accounting principles generally accepted in
the United States, may not be
similar to consolidated OIBDA and consolidated adjusted OIBDA
measures of other companies and should be considered in addition
to, but not as substitutes for, the information contained in our
statements of operations. We believe that consolidated OIBDA and
consolidated adjusted OIBDA provide useful information to investors
because they are indicators of our operating performance,
especially in a capital intensive industry such as ours, since they
exclude items that are not directly attributable to ongoing
business operations. Consolidated OIBDA and consolidated adjusted
OIBDA can be reconciled to our consolidated statements of
operations as follows (in millions):
NII Holdings,
Inc.
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
Three Months
Ended
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
Consolidated
operating loss
|
$
|
(1,111.5)
|
|
|
$
|
(368.6)
|
|
|
$
|
(335.7)
|
|
|
$
|
(155.7)
|
|
|
Consolidated
depreciation
|
592.1
|
|
|
629.6
|
|
|
137.4
|
|
|
136.6
|
|
|
Consolidated
amortization
|
80.6
|
|
|
63.3
|
|
|
21.9
|
|
|
16.9
|
|
|
Consolidated
operating (loss) income
before
depreciation and amortization
|
(438.8)
|
|
|
324.3
|
|
|
(176.4)
|
|
|
(2.2)
|
|
|
(Gain) loss on sale
of towers
|
(74.6)
|
|
|
—
|
|
|
0.8
|
|
|
—
|
|
|
Asset impairment
charges
|
164.6
|
|
|
91.2
|
|
|
95.5
|
|
|
—
|
|
|
Reduction of asset
retirement cost
|
—
|
|
|
(48.3)
|
|
|
—
|
|
|
(48.3)
|
|
|
Restructuring charges
(benefits)
|
56.2
|
|
|
77.4
|
|
|
(3.1)
|
|
|
21.5
|
|
|
Fees related to
Chapter 11 filing
|
22.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Reserve for
unfulfilled handset commitments
|
—
|
|
|
14.1
|
|
|
—
|
|
|
—
|
|
|
Reserve for loan
receivables
|
18.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Consolidated adjusted
operating (loss)
income before
depreciation and
amortization
|
$
|
(251.4)
|
|
|
$
|
458.7
|
|
|
$
|
(83.2)
|
|
|
$
|
(29.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Monthly Revenue Per Handset/Unit in Service
(ARPU)
Average monthly revenue per subscriber unit in service, or ARPU,
is an industry term that measures service revenues, which we refer
to as subscriber revenues, per period from our customers divided by
the weighted average number of subscriber units in commercial
service during that period. ARPU is not a measurement under
accounting principles generally accepted in the United States, may not be similar to ARPU
measures of other companies and should be considered in addition,
but not as a substitute for, the information contained in our
statements of operations. We believe that ARPU provides
useful information concerning the appeal of our rate plans and
service offerings and our performance in attracting and retaining
high value customers. Other revenue includes revenues for
such services as roaming, handset maintenance, cancellation fees,
analog and other. ARPU can be calculated and reconciled to
our consolidated statement of operations as follows (in millions,
except ARPU):
NII Holdings,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
Three Months
Ended
December
31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
Service and other
revenues
|
$
|
3,447.2
|
|
|
$
|
4,517.2
|
|
|
$
|
805.8
|
|
|
$
|
1,006.1
|
|
|
Less: other
revenues
|
(422.5)
|
|
|
(530.6)
|
|
|
(109.9)
|
|
|
(121.6)
|
|
|
Total subscriber
revenues
|
$
|
3,024.7
|
|
|
$
|
3,986.6
|
|
|
$
|
695.9
|
|
|
$
|
884.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
calculated with subscriber revenues
|
$
|
28
|
|
|
$
|
35
|
|
|
$
|
25
|
|
|
$
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
calculated with service and other revenues
|
$
|
31
|
|
|
$
|
39
|
|
|
$
|
29
|
|
|
$
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nextel
Brazil
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
Three Months
Ended
December
31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
Service and other
revenues
|
$
|
1,694.2
|
|
|
$
|
2,109.3
|
|
|
$
|
403.7
|
|
|
$
|
468.0
|
|
|
Less: other
revenues
|
(211.7)
|
|
|
(256.8)
|
|
|
(55.5)
|
|
|
(62.6)
|
|
|
Total subscriber
revenues
|
$
|
1,482.5
|
|
|
$
|
1,852.5
|
|
|
$
|
348.2
|
|
|
$
|
405.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
calculated with subscriber revenues
|
$
|
30
|
|
|
$
|
40
|
|
|
$
|
27
|
|
|
$
|
34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
calculated with service and other revenues
|
$
|
34
|
|
|
$
|
45
|
|
|
$
|
31
|
|
|
$
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nextel
Mexico
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
Three Months
Ended
December
31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
Service and other
revenues
|
$
|
1,375.4
|
|
|
$
|
1,832.7
|
|
|
$
|
311.8
|
|
|
$
|
406.4
|
|
|
Less: other
revenues
|
(175.0)
|
|
|
(205.2)
|
|
|
(46.2)
|
|
|
(45.1)
|
|
|
Total subscriber
revenues
|
$
|
1,200.4
|
|
|
$
|
1,627.5
|
|
|
$
|
265.6
|
|
|
$
|
361.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
calculated with subscriber revenues
|
$
|
34
|
|
|
$
|
36
|
|
|
$
|
31
|
|
|
$
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
calculated with service and other revenues
|
$
|
39
|
|
|
$
|
40
|
|
|
$
|
36
|
|
|
$
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nextel
Argentina
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
Three Months
Ended
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
Service and other
revenues
|
$
|
379.9
|
|
|
$
|
575.5
|
|
|
$
|
90.3
|
|
|
$
|
131.7
|
|
|
Less: other
revenues
|
(38.4)
|
|
|
(69.0)
|
|
|
(8.4)
|
|
|
(14.0)
|
|
|
Total subscriber
revenues
|
$
|
341.5
|
|
|
$
|
506.5
|
|
|
$
|
81.9
|
|
|
$
|
117.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
calculated with subscriber revenues
|
$
|
14
|
|
|
$
|
22
|
|
|
$
|
14
|
|
|
$
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
calculated with service and other revenues
|
$
|
16
|
|
|
$
|
25
|
|
|
$
|
15
|
|
|
$
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost per Gross Add (CPGA)
Cost per gross add, or CPGA, is an industry term that is
calculated by dividing our selling, marketing and handset and
accessory subsidy costs, excluding costs unrelated to initial
customer acquisition, by our new subscribers during the period, or
gross adds. CPGA is not a measurement under accounting
principles generally accepted in the
United States, may not be similar to CPGA measures of other
companies and should be considered in addition, but not as a
substitute for, the information contained in our statements of
operations. We believe CPGA is a measure of the relative cost
of customer acquisition. CPGA can be calculated and
reconciled to our consolidated statements of operations as follows
(in millions, except CPGA):
NII Holdings,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
Three Months
Ended
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated handset
and accessory revenues
|
$
|
241.5
|
|
|
$
|
194.4
|
|
|
$
|
48.4
|
|
|
$
|
57.7
|
|
|
Less: consolidated
uninsured handset replacement revenues
|
(20.5)
|
|
|
(17.4)
|
|
|
(3.6)
|
|
|
(4.5)
|
|
|
Consolidated handset
and accessory revenues, net
|
221.0
|
|
|
177.0
|
|
|
44.8
|
|
|
53.2
|
|
|
Less: consolidated
cost of handsets and accessories *
|
973.5
|
|
|
870.7
|
|
|
224.5
|
|
|
249.3
|
|
|
Consolidated handset subsidy costs
|
752.5
|
|
|
693.7
|
|
|
179.7
|
|
|
196.1
|
|
|
Consolidated selling
and marketing
|
527.9
|
|
|
573.9
|
|
|
126.2
|
|
|
157.2
|
|
|
Costs per statement
of operations
|
1,280.4
|
|
|
1,267.6
|
|
|
305.9
|
|
|
353.3
|
|
|
Less: consolidated
costs unrelated to initial customer acquisition.
|
(325.9)
|
|
|
(342.5)
|
|
|
(65.7)
|
|
|
(68.9)
|
|
|
Customer acquisition costs
|
$
|
954.5
|
|
|
$
|
925.1
|
|
|
$
|
240.2
|
|
|
$
|
284.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost per Gross
Add
|
$
|
260
|
|
|
$
|
280
|
|
|
$
|
227
|
|
|
$
|
344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Excludes $14.1 million related
to a charge for unfulfilled handset commitments that was recorded
in the third quarter of 2013.
Nextel
Brazil
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
Three Months
Ended
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
Handset and accessory
revenues
|
$
|
154.7
|
|
|
$
|
98.7
|
|
|
$
|
28.3
|
|
|
$
|
34.6
|
|
|
Less: uninsured
handset replacement revenues
|
(8.1)
|
|
|
(8.6)
|
|
|
(1.3)
|
|
|
(2.2)
|
|
|
Handset and accessory
revenues, net
|
146.6
|
|
|
90.1
|
|
|
27.0
|
|
|
32.4
|
|
|
Less: cost of
handsets and accessories *
|
415.1
|
|
|
236.6
|
|
|
103.7
|
|
|
92.2
|
|
|
Handset subsidy costs
|
268.5
|
|
|
146.5
|
|
|
76.7
|
|
|
59.8
|
|
|
Selling and
marketing
|
267.5
|
|
|
207.7
|
|
|
62.3
|
|
|
65.0
|
|
|
Costs per statement
of operations
|
536.0
|
|
|
354.2
|
|
|
139.0
|
|
|
124.8
|
|
|
Less: costs unrelated
to initial customer acquisition
|
(74.7)
|
|
|
(40.0)
|
|
|
(16.5)
|
|
|
(6.2)
|
|
|
Customer acquisition costs
|
$
|
461.3
|
|
|
$
|
314.2
|
|
|
$
|
122.5
|
|
|
$
|
118.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost per Gross
Add
|
$
|
277
|
|
|
$
|
234
|
|
|
$
|
295
|
|
|
$
|
334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Excludes $14.1 million related
to a charge for unfulfilled handset commitments that was recorded
in the third quarter of 2013/
Nextel
Mexico
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
Three Months
Ended
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
Handset and accessory
revenues
|
$
|
41.8
|
|
|
$
|
40.0
|
|
|
$
|
9.3
|
|
|
$
|
7.6
|
|
|
Less: uninsured
handset replacement revenues
|
(12.4)
|
|
|
(8.9)
|
|
|
(2.4)
|
|
|
(2.4)
|
|
|
Handset and accessory
revenues, net
|
29.4
|
|
|
31.1
|
|
|
6.9
|
|
|
5.2
|
|
|
Less: cost of
handsets and accessories
|
491.0
|
|
|
547.0
|
|
|
102.4
|
|
|
133.9
|
|
|
Handset subsidy costs
|
461.6
|
|
|
515.9
|
|
|
95.5
|
|
|
128.7
|
|
|
Selling and
marketing
|
207.5
|
|
|
292.8
|
|
|
52.3
|
|
|
71.9
|
|
|
Costs per statement
of operations
|
669.1
|
|
|
808.7
|
|
|
147.8
|
|
|
200.6
|
|
|
Less: costs unrelated
to initial customer acquisition
|
(245.3)
|
|
|
(299.0)
|
|
|
(46.6)
|
|
|
(62.0)
|
|
|
Customer acquisition costs
|
$
|
423.8
|
|
|
$
|
509.7
|
|
|
$
|
101.2
|
|
|
$
|
138.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost per Gross
Add
|
$
|
411
|
|
|
$
|
559
|
|
|
$
|
261
|
|
|
$
|
729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nextel
Argentina
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
Three Months
Ended
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
Handset and accessory
revenues
|
$
|
45.1
|
|
|
$
|
60.9
|
|
|
$
|
10.8
|
|
|
$
|
15.6
|
|
|
Less: uninsured
handset replacement revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Handset and accessory
revenues, net
|
45.1
|
|
|
60.9
|
|
|
10.8
|
|
|
15.6
|
|
|
Less: cost of
handsets and accessories
|
69.7
|
|
|
90.9
|
|
|
18.4
|
|
|
23.1
|
|
|
Handset subsidy costs
|
24.6
|
|
|
30.0
|
|
|
7.6
|
|
|
7.5
|
|
|
Selling and
marketing
|
47.4
|
|
|
61.6
|
|
|
11.2
|
|
|
16.5
|
|
|
Costs per statement
of operations
|
72.0
|
|
|
91.6
|
|
|
18.8
|
|
|
24.0
|
|
|
Less: costs unrelated
to initial customer acquisition
|
(5.9)
|
|
|
(3.6)
|
|
|
(2.6)
|
|
|
(0.6)
|
|
|
Customer acquisition costs
|
$
|
66.1
|
|
|
$
|
88.0
|
|
|
$
|
16.2
|
|
|
$
|
23.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost per Gross
Add
|
$
|
68
|
|
|
$
|
84
|
|
|
$
|
63
|
|
|
$
|
83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of Foreign Currency Fluctuations
The following table shows the impact of changes in foreign
currency exchange rates on certain financial measures for the
twelve and three months ended December 31,
2013 compared to the same period in 2014 by (i) adjusting
the relevant measures for the twelve and three months ended
December 31, 2013 to levels that
would have resulted if the average foreign currency exchange rates
for the twelve and three months ended December 31, 2013 were the same as the average
foreign currency exchange rates that were in effect for the
twelve and three months ended December 31,
2014; and (ii) comparing the actual and adjusted financial
measures for the twelve and three months ended December 31, 2013 to the similar financial
measures for the twelve and three months ended December 31, 2014 to show the percentage change
in those measures before and after taking those adjustments into
account. The amounts reflected in the following table for operating
income before depreciation and amortization on a consolidated basis
and segment earnings for Nextel Brazil, Nextel Mexico and Nextel
Argentina, before the adjustments for changes in foreign currency
exchange rates, are based on the calculations contained elsewhere
in these non-GAAP reconciliations for the twelve and three months
ended December 31, 2014 and 2013. The
average foreign currency exchange rates for each of the relevant
currencies during each of the twelve and three months ended
December 31, 2014 and 2013 are
included in the notes to the table below. The information reflected
in the following table is not a measurement under accounting
principles generally accepted in the
United States and should be considered in addition to, but
not as a substitute for, the information contained in our
statements of operations. We believe that these calculations
provide useful information concerning our relative performance for
the twelve and three months ended December 31, 2014 compared to the same periods in
2013 by removing the impact of the significant difference in the
average foreign currency exchange rates in effect for those
periods.
NII Holdings,
Inc.
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
4Q 2013
Actual
|
4Q 2013 Adjustment
(1)
|
4Q 2013 Normalized
(1)
|
4Q 2014
Actual
|
4Q
2013
to 4Q
2014
Actual
Growth
Rate
(2)
|
4Q
2013
to 4Q
2014
Normalized
Growth Rate
(3)
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated:
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
1,063,768
|
|
$
|
(119,816)
|
|
$
|
943,952
|
|
$
|
854,231
|
|
(20)%
|
(10)%
|
Adjusted operating
loss before
depreciation and amortization
|
(28,992)
|
|
33,507
|
|
4,515
|
|
(83,163)
|
|
187%
|
NM
|
Nextel
Brazil:
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
502,566
|
|
$
|
(53,083)
|
|
$
|
449,483
|
|
$
|
431,939
|
|
(14)%
|
(4)%
|
Segment
earnings (losses)
|
3,632
|
|
(384)
|
|
3,248
|
|
(49,314)
|
|
NM
|
NM
|
Nextel
Mexico:
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
413,963
|
|
$
|
(24,344)
|
|
$
|
389,619
|
|
$
|
321,087
|
|
(22)%
|
(18)%
|
Segment
earnings (losses)
|
7,143
|
|
(420)
|
|
6,723
|
|
(30,643)
|
|
NM
|
NM
|
Nextel
Argentina:
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
147,293
|
|
$
|
(42,389)
|
|
$
|
104,904
|
|
$
|
101,140
|
|
(31)%
|
(4)%
|
Segment
earnings
|
48,728
|
|
(14,023)
|
|
34,705
|
|
13,851
|
|
(72)%
|
(60)%
|
NII Holdings,
Inc.
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
|
YTD 2013
Actual
|
YTD 2013
Adjustment (1)
|
YTD 2013
Normalized (1)
|
YTD 2014
Actual
|
YTD
2013
to YTD
2014
Actual
Growth
Rate
(2)
|
YTD
2013
to YTD
2014
Normalized
Growth Rate
(3)
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated:
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
4,711,567
|
|
$
|
(466,023)
|
|
$
|
4,245,544
|
|
$
|
3,688,720
|
|
(22)%
|
(13)%
|
Adjusted
operating income (loss)
before depreciation and
amortization
|
458,648
|
|
(57,343)
|
|
401,305
|
|
(251,401)
|
|
(155)%
|
(163)%
|
Nextel
Brazil:
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
2,208,034
|
|
$
|
(183,814)
|
|
$
|
2,024,220
|
|
$
|
1,848,918
|
|
(16)%
|
(9)%
|
Segment
earnings (losses)
|
311,129
|
|
(25,901)
|
|
285,228
|
|
(133,691)
|
|
(143)%
|
(147)%
|
Nextel
Mexico:
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
1,872,697
|
|
$
|
(74,781)
|
|
$
|
1,797,916
|
|
$
|
1,417,163
|
|
(24)%
|
(21)%
|
Segment
earnings (losses)
|
179,896
|
|
(7,184)
|
|
172,712
|
|
(90,481)
|
|
(150)%
|
(152)%
|
Nextel
Argentina:
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
636,448
|
|
$
|
(207,428)
|
|
$
|
429,020
|
|
$
|
424,971
|
|
(33)%
|
(1)%
|
Segment
earnings
|
179,418
|
|
(58,475)
|
|
120,943
|
|
76,241
|
|
(58)%
|
(37)%
|
(1) The "YTD 2013 Normalized" and
"4Q 2013 Normalized" amounts reflect the impact of applying the
average foreign currency exchange rates for the twelve and three
months ended December 31, 2014 to the
operating revenues earned in foreign currencies and to the other
components of each of the actual financial measures shown above for
the twelve and three months ended December
31, 2013, other than certain components of those measures
consisting of U.S. dollar-based operating expenses, which were not
adjusted. The amounts included under the columns "YTD 2013
Normalized" and "4Q 2013 Normalized" reflect the amount determined
by subtracting the "YTD 2013 Normalized" and "4Q 2013 Normalized"
amounts calculated as described in the preceding sentence from the
"YTD 2013 Normalized" and "4Q 2013 Normalized" amounts and reflect
the impact of the year-over-year change in the average foreign
currency exchange rates on each of the financial measures for the
twelve and three months ended December 31,
2014. The average foreign currency exchange rates for each
of the relevant currencies during the twelve and three months ended
December 31, 2014 and 2013 for
purposes of these calculations were as follows:
|
Year Ended
December 31,
|
|
Three Months Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Brazilian
real
|
2.35
|
|
2.16
|
|
2.55
|
|
2.28
|
Mexican
peso
|
13.30
|
|
12.77
|
|
13.84
|
|
13.03
|
Argentine
peso
|
8.13
|
|
5.48
|
|
8.51
|
|
6.06
|
(2) The percentage amounts in these
columns reflect the growth rates for each of the financial measures
comparing the amounts in the "YTD 2014 Actual" and "4Q 2014 Actual"
columns with those in the "YTD 2013 Actual" and "4Q 2013 Actual"
columns.
(3) The percentage amounts in these
columns reflect the growth rates for each of the financial measures
comparing the amounts in the "YTD 2014 Actual" and "4Q 2014 Actual"
columns with those in the "YTD 2013 Normalized" and "4Q 2013
Normalized" columns.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nii-holdings-announces-2014-fourth-quarter-and-year-end-results-300048539.html
SOURCE NII Holdings, Inc.