RESTON, Va., May 10, 2016 /PRNewswire/ -- NII Holdings, Inc. (NASDAQ: NIHD) today
announced its financial results for the first quarter of 2016. For
the quarter, the Company generated consolidated operating revenues
of $227 million, an adjusted OIBDA
loss of $8 million and an operating
loss of $54 million. The Company's
consolidated adjusted OIBDA excludes the impact of non-cash asset
impairments, restructuring charges and other unusual items. Capital
expenditures were $8 million for the
quarter. The Company ended the quarter with $368 million in consolidated cash and short-term
investments and $227 million of cash
held in escrow. The Company reported net subscriber losses of
273,000 in the quarter, which were mostly the result of the more
difficult competitive and economic environments in Brazil.
"Our financial results for the quarter reflect our continued
efforts to improve our adjusted OIBDA by lowering our costs through
operational improvements and expense savings," said Steve Shindler, Chief Executive Officer.
"Offsetting these financial results, we reported 3G net subscriber
losses this quarter, resulting from the challenging economic
conditions and more intense competitive environment. Given the
current climate, we are applying a targeted approach to subscriber
growth, focusing our efforts on customers that provide the most
attractive revenue and churn characteristics to keep our quarterly
adjusted OIBDA loss to a minimum."
Nextel Brazil's average monthly service revenue per subscriber
(ARPU) was $16 for the first quarter
of 2016, down from $23 in the same
quarter last year, due primarily to a 37% year-over-year decline in
the average value of the Brazilian real. Nextel Brazil's average
monthly churn rate for the quarter increased to 4.34 percent in the
first quarter of 2016 from 3.15 percent in the same quarter last
year due to increases in both 3G and iDEN churn. Nextel Brazil's
cost per gross addition (CPGA) was $96 for the first quarter of 2016, a $68 decrease from the same quarter last year,
primarily due to an increase in new 3G postpaid subscribers in
Brazil who use their own handsets
rather than purchasing a new one from the Company. Nextel Brazil's
cash cost per user (CCPU) was $15 for
the first quarter of 2016, a $5
decrease from the same quarter last year primarily resulting from a
decline in local currency exchange rates.
"Our cash burn for the quarter was $64
million, which was generally consistent with our prior
quarter results after taking into account the $29 million semi-annual debt service we paid this
quarter on our equipment financing facility," said Dan Freiman, Chief Financial Officer. "We will
continue to take actions to protect our liquidity by staying
focused on limiting our cash spending."
Additional details regarding the Company's results, including a
more detailed explanation on local currency operating metrics, are
included in the Company's Quarterly Report on Form 10-Q for the
three months ended March 31, 2016
that was filed with the Securities and Exchange Commission today.
In 2015, the Company sold its operations in Mexico and Argentina, and as a result, all results
presented in this press release reflect those markets as
discontinued operations. Additional operational and financial
details, including a quarterly earnings presentation, are also
available under the Company's 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, as well as
Nextel Brazil's ARPU, CCPU, 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, Virginia, is a provider of
differentiated mobile communication services for businesses and
high value consumers in Brazil.
NII Holdings, operating under the Nextel brand, offers fully
integrated wireless communication tools with digital cellular voice
services, data services and wireless Internet access. Visit the
Company's website at www.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 our
markets' news centers: 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
and economic 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, customer growth and
retention, pricing, network usage, operating costs, the timing of
various events, the economic and regulatory environment and the
foreign currency exchange rates that will prevail during 2016.
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 Brazil, the
performance of the Company's networks, the Company's ability to
provide services that customers want or need, the ability of the
Company to continue as a going concern, the Company's ability to
execute its business plan, and the additional risks and
uncertainties that are described in NII Holdings' Annual Report on
Form 10-K for the year ended December 31,
2015, 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
800
Reston, Virginia 20190
(703) 390-5100
www.nii.com
Investor and Media Relations: Dan
Freiman
(703) 547-5209
dan.freiman@nii.com
|
NII HOLDINGS, INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
FOR THE THREE
MONTHS ENDED MARCH 31, 2016 (SUCCESSOR COMPANY) AND
THE THREE MONTHS
ENDED ENDED MARCH 31, 2015 (PREDECESSOR COMPANY) (1)
(2)
(in millions,
except per share amounts)
|
|
|
Successor
Company
|
|
|
Predecessor
Company
|
|
Three Months
Ended
March 31,
|
|
|
Three Months
Ended
March 31,
|
|
2016
|
|
|
2015
|
|
(unaudited)
|
|
|
|
|
|
|
Operating
revenues
Service and
other revenues
|
$
|
220.6
|
|
|
|
$
|
340.7
|
|
|
Handset and
accessory revenues
|
5.9
|
|
|
|
22.7
|
|
|
226.5
|
|
|
|
363.4
|
|
|
Operating
expenses
Cost of
service (exclusive of depreciation and amortization included
below)
|
90.0
|
|
|
|
130.1
|
|
|
Cost of
handsets and accessories
|
11.2
|
|
|
|
55.8
|
|
|
Selling,
general and administrative
|
133.4
|
|
|
|
195.8
|
|
|
Impairment,
restructuring and other charges
|
5.9
|
|
|
|
7.3
|
|
|
Depreciation
|
30.1
|
|
|
|
66.1
|
|
|
Amortization
|
10.0
|
|
|
|
14.1
|
|
|
280.6
|
|
|
|
469.2
|
|
|
Operating
loss
|
(54.1)
|
|
|
|
(105.8)
|
|
|
Other (expense)
income
Interest
expense, net
|
(25.2)
|
|
|
|
(35.3)
|
|
|
Interest
income
|
9.7
|
|
|
|
6.5
|
|
|
Foreign
currency transaction gains (losses), net
|
39.7
|
|
|
|
(78.5)
|
|
|
Other
(expense) income, net
|
(2.5)
|
|
|
|
9.2
|
|
|
21.7
|
|
|
|
(98.1)
|
|
|
Loss from
continuing operations before reorganization items and income tax
provision
|
(32.4)
|
|
|
|
(203.9)
|
|
|
Reorganization
items
|
(0.4)
|
|
|
|
(13.6)
|
|
|
Income tax
provision
|
—
|
|
|
|
(0.9)
|
|
|
Net loss from
continuing operations
|
(32.8)
|
|
|
|
(218.4)
|
|
|
Loss from
discontinued operations, net of income taxes
|
(3.8)
|
|
|
|
(91.1)
|
|
|
Net
loss
|
$
|
(36.6)
|
|
|
|
$
|
(309.5)
|
|
|
|
|
|
|
|
Net loss from
continuing operations per common share, basic and
diluted
|
$
|
(0.33)
|
|
|
|
$
|
(1.27)
|
|
|
Net loss from
discontinued operations per common share, basic and
diluted
|
(0.04)
|
|
|
|
(0.53)
|
|
|
Net loss per
common share, basic and diluted
|
$
|
(0.37)
|
|
|
|
$
|
(1.80)
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding, basic and
diluted
|
100.0
|
|
|
|
172.4
|
|
|
CONSOLIDATED
BALANCE SHEETS (1) (2)
(in millions,
except par values)
|
|
|
Successor
Company
|
|
March 31,
2016
|
|
December 31,
2015 (3)
|
|
|
|
|
|
ASSETS
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
332.7
|
|
|
$
|
342.2
|
|
|
Short-term
investments
|
35.0
|
|
|
84.3
|
|
|
Accounts receivable,
net of allowance for doubtful accounts of $49.3 and
$39.0
|
155.1
|
|
|
144.6
|
|
|
Handset and accessory
inventory
|
18.5
|
|
|
24.4
|
|
|
Prepaid expenses and
other
|
145.7
|
|
|
132.5
|
|
|
Total current
assets
|
687.0
|
|
|
728.0
|
|
|
Property, plant
and equipment, net
|
582.2
|
|
|
555.0
|
|
|
Intangible assets,
net
|
962.9
|
|
|
892.6
|
|
|
Other
assets
|
471.8
|
|
|
554.3
|
|
|
Total
assets
|
$
|
2,703.9
|
|
|
$
|
2,729.9
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
$
|
56.0
|
|
|
$
|
43.8
|
|
|
Accrued expenses and
other
|
274.1
|
|
|
268.8
|
|
|
Deferred
revenues
|
9.5
|
|
|
10.4
|
|
|
Current portion of
long-term debt
|
581.4
|
|
|
582.4
|
|
|
Total current
liabilities
|
921.0
|
|
|
905.4
|
|
|
Long-term
debt
|
90.3
|
|
|
82.6
|
|
|
Other long-term
liabilities
|
99.6
|
|
|
197.9
|
|
|
Total
liabilities
|
1,110.9
|
|
|
1,185.9
|
|
|
Stockholders'
deficit
|
|
|
|
|
Undesignated
preferred stock, par value $0.001, 10.0 shares authorized, no
shares
issued or
outstanding
|
—
|
|
|
—
|
|
|
Common stock, par
value $0.001, 140.0 shares authorized, 100.0 shares
issued
and
outstanding
|
0.1
|
|
|
0.1
|
|
|
Paid-in
capital
|
2,072.5
|
|
|
2,070.5
|
|
|
Accumulated
deficit
|
(317.4)
|
|
|
(280.9)
|
|
|
Accumulated other
comprehensive loss
|
(162.2)
|
|
|
(245.7)
|
|
|
Total stockholders'
equity
|
1,593.0
|
|
|
1,544.0
|
|
|
Total liabilities and
stockholders' equity
|
$
|
2,703.9
|
|
|
$
|
2,729.9
|
|
|
CONSOLIDATED CASH
FLOW DATA (1) (2)
(in
millions)
|
|
|
Successor
Company
|
|
|
Predecessor
Company
|
|
Three Months
Ended March 31,
|
|
|
Three Months
Ended March 31,
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
$
|
342.2
|
|
|
|
$
|
334.2
|
|
|
Net cash used in
operating activities
|
(18.1)
|
|
|
|
(170.9)
|
|
|
Net cash provided by
(used in) investing activities
|
33.7
|
|
|
|
(116.9)
|
|
|
Net cash (used in)
provided by financing activities
|
(24.7)
|
|
|
|
335.9
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(0.4)
|
|
|
|
(5.0)
|
|
|
Change in cash and
cash equivalents related to discontinued
operations
|
—
|
|
|
|
88.1
|
|
|
Cash and cash
equivalents, end of period
|
$
|
332.7
|
|
|
|
$
|
465.4
|
|
(1) In accordance with the requirements of reorganization
accounting, we adopted the provisions of fresh-start accounting as
of June 30, 2015 and became a new
entity for financial reporting purposes. References to the
"Successor Company" relate to NII Holdings on or subsequent to
June 30, 2015. References to the
"Predecessor Company" relate to NII Holdings prior to June 30, 2015.
(2) On September 11, 2015,
we entered into a binding agreement relating to the sale of all of
the outstanding equity interests of Nextel Argentina. On
January 27, 2016, the agreement was
amended to permit Grupo Clarin or
any of its affiliates to exercise the right to acquire the
remaining 51% equity interest prior to receiving regulatory
approval, and Grupo Clarin and its
affiliate immediately acquired the remaining 51% of Nextel
Argentina for no additional proceeds. On April 30, 2015, we completed the sale of our
operations in Mexico to an
indirect subsidiary of AT&T, Inc. In connection with these
sales, we have reported the results for Nextel Mexico and Nextel
Argentina as discontinued operations throughout this document.
(3) Our consolidated balance sheet as of December 31, 2015 reflects the impact of the
correction of an error related to the failure to properly accrue
expenses for services Nextel Brazil received under a management
consulting services arrangement.
|
NII HOLDINGS, INC.
AND SUBSIDIARIES
OPERATING RESULTS
AND METRICS
FOR THE THREE
MONTHS ENDED MARCH 31, 2016 (SUCCESSOR COMPANY) AND
THE
THREE MONTHS ENDED
MARCH 31, 2015 (PREDECESSOR COMPANY)
(UNAUDITED)
|
|
|
Nextel
Brazil
|
|
(dollars in
millions, except ARPU and CPGA, and subscribers in
thousands)
|
|
|
|
|
|
|
|
Successor
Company
|
|
|
Predecessor
Company
|
|
|
Three Months
Ended
March 31,
|
|
|
2016
|
|
|
2015
|
|
|
Service and other
revenues
|
$
|
220.5
|
|
|
|
$
|
340.6
|
|
|
|
|
|
|
|
|
|
Handset and accessory
revenues
|
6.0
|
|
|
|
22.7
|
|
|
|
Cost of handsets and
accessories
|
(11.2)
|
|
|
|
(55.8)
|
|
|
|
Handset and accessory
net subsidy
|
(5.2)
|
|
|
|
(33.1)
|
|
|
|
Cost of service
(exclusive of depreciation and amortization)
|
(90.0)
|
|
|
|
(130.1)
|
|
|
|
Selling, general and
administrative
|
(121.5)
|
|
|
|
(173.9)
|
|
|
|
Segment
earnings
|
$
|
3.8
|
|
|
|
$
|
3.5
|
|
|
|
|
|
|
|
|
|
Subscriber
units
|
|
|
|
|
|
|
iDEN
|
1,315.1
|
|
|
|
2,414.5
|
|
|
|
WCDMA
|
2,708.7
|
|
|
|
1,970.4
|
|
|
|
Total
subscriber units in commercial service (as of March
31)
|
4,023.8
|
|
|
|
4,384.9
|
|
|
|
|
|
|
|
|
|
iDEN net subscriber
losses
|
(195.2)
|
|
|
|
(194.7)
|
|
|
|
WCDMA net subscriber
(losses) additions
|
(77.7)
|
|
|
|
239.9
|
|
|
|
Total
net subscriber (losses) additions (2)
|
(272.9)
|
|
|
|
45.2
|
|
|
|
|
|
|
|
|
|
Migrations from
iDEN to WCDMA
|
41.7
|
|
|
|
58.3
|
|
|
|
|
|
|
|
|
|
iDEN customer
churn
|
4.80
|
%
|
|
|
3.25
|
%
|
|
|
WCDMA customer
churn
|
4.10
|
%
|
|
|
2.99
|
%
|
|
|
Churn
(%) (2)
|
4.34
|
%
|
|
|
3.15
|
%
|
|
|
|
|
|
|
|
|
ARPU (1)
(2)
|
$
|
16
|
|
|
|
$
|
23
|
|
|
|
|
|
|
|
|
|
CPGA
(1)
|
$
|
96
|
|
|
|
$
|
164
|
|
|
|
|
|
|
|
|
|
CCPU (1)
(2)
|
$
|
15
|
|
|
|
$
|
20
|
|
|
(1) For information regarding ARPU, CPGA and CCPU, see "Non-GAAP
Reconciliations for the Three Months Ended March 31, 2016
(Successor Company) and Three Months Ended March 31, 2015 (Predecessor Company)" included in
this release.
(2) Net subscriber losses (additions), customer churn, ARPU, and
CCPU for each prior quarter presented include adjustments to reduce
Nextel Brazil's subscriber base for about 45,400 subscribers that
were not properly deactivated in prior periods.
|
NON-GAAP
RECONCILIATIONS
FOR THE THREE
MONTHS ENDED MARCH 31, 2016 (SUCCESSOR COMPANY) AND
THREE MONTHS ENDED
MARCH 31, 2015 (PREDECESSOR COMPANY)
(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
|
|
|
|
Successor
Company
|
|
|
Predecessor
Company
|
|
Three Months
Ended
March
31,
|
|
2016
|
|
|
2015
|
|
Consolidated
operating loss
|
$
|
(54.1)
|
|
|
|
$
|
(105.8)
|
|
|
Consolidated
depreciation
|
30.1
|
|
|
|
66.1
|
|
|
Consolidated
amortization
|
10.0
|
|
|
|
14.1
|
|
|
Consolidated
operating loss before
depreciation and amortization
|
(14.0)
|
|
|
|
(25.6)
|
|
|
Asset impairment
charges
|
1.0
|
|
|
|
5.8
|
|
|
Restructuring
charges
|
4.9
|
|
|
|
1.5
|
|
|
Consolidated adjusted
operating loss
before
depreciation and amortization
|
$
|
(8.1)
|
|
|
|
$
|
(18.3)
|
|
|
|
|
|
|
|
|
|
|
|
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 as follows (in millions, except ARPU):
|
|
|
|
|
Nextel
Brazil
|
|
|
|
|
|
|
|
Successor
Company
|
|
|
Predecessor
Company
|
|
Three Months
Ended
March 31,
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
Service and other
revenues
|
$
|
220.5
|
|
|
|
$
|
340.6
|
|
|
Less: other
revenues
|
(23.5)
|
|
|
|
(38.5)
|
|
|
Total subscriber
revenues
|
$
|
197.0
|
|
|
|
$
|
302.1
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
calculated with subscriber revenues
|
$
|
16
|
|
|
|
$
|
23
|
|
|
|
|
|
|
|
ARPU
calculated with service and other revenues
|
$
|
18
|
|
|
|
$
|
26
|
|
|
|
|
|
|
|
|
|
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 as follows
(in millions, except CPGA):
|
|
|
Nextel
Brazil
|
|
|
|
|
|
|
|
Successor
Company
|
|
|
Predecessor
Company
|
|
|
Three Months
Ended
March 31,
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Consolidated handset
and accessory revenues
|
$
|
6.0
|
|
|
|
$
|
22.7
|
|
|
|
Less: consolidated
uninsured handset replacement revenues
|
(0.1)
|
|
|
|
(0.4)
|
|
|
|
Consolidated handset
and accessory revenues, net
|
5.9
|
|
|
|
22.3
|
|
|
|
Less: consolidated
cost of handsets and accessories
|
11.2
|
|
|
|
55.8
|
|
|
|
Consolidated handset subsidy costs
|
5.3
|
|
|
|
33.5
|
|
|
|
Consolidated selling
and marketing
|
22.1
|
|
|
|
48.9
|
|
|
|
Costs per statement
of operations
|
27.4
|
|
|
|
82.4
|
|
|
|
Less: consolidated
costs unrelated to initial customer acquisition
|
(1.6)
|
|
|
|
(7.3)
|
|
|
|
Customer acquisition costs
|
$
|
25.8
|
|
|
|
$
|
75.1
|
|
|
|
|
|
|
|
|
|
Cost per Gross
Add
|
$
|
96
|
|
|
|
$
|
164
|
|
|
|
|
|
|
|
|
|
|
|
Cash Cost per
Handset/User
|
|
|
Cash cost per
handset/unit, or CCPU, represents the sum of cost of service,
general and administrative expenses and customer retention and
other costs divided by average handsets in service during the
period and divided by the number of months in the period. CCPU is
not a measurement under accounting principles generally accepted in
the United States, may not be similar to CCPU measures of other
companies and should not be considered in addition to, but not as a
substitute for, the information contained in our statements of
operations. We believe CCPU is a measure of the recurring
costs we incur on a monthly basis to provide service to our
subscribers. The CCPU calculation excludes material asset
impairments, severance costs associated with publicly announced
restructuring plans and other material non-recurring or unusual
charges and is calculated as follows (in thousands, except
CCPU):
|
|
|
Nextel
Brazil
|
|
|
|
|
|
|
|
Successor
Company
|
|
|
Predecessor
Company
|
|
|
Three Months
Ended
March 31,
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Total selling,
general and administrative expenses
|
$
|
121.6
|
|
|
|
$
|
173.9
|
|
|
|
Less: selling and
marketing expenses
|
(22.1)
|
|
|
|
(48.9)
|
|
|
|
General and
administrative expenses
|
99.5
|
|
|
|
125.0
|
|
|
|
Cost of
service
|
90.0
|
|
|
|
130.1
|
|
|
|
Customer retention
costs and other
|
1.6
|
|
|
|
7.3
|
|
|
|
Total
|
191.1
|
|
|
|
262.4
|
|
|
|
|
|
|
|
|
|
Cash Cost per
User
|
$
|
15
|
|
|
|
$
|
20
|
|
|
|
|
|
|
|
|
|
Impact of Foreign
Currency Fluctuations
|
|
|
The following table
shows the impact of changes in foreign currency exchange rates on
certain financial measures for the three months ended March 31,
2015 compared to the same period in 2016 by (i) adjusting the
relevant measures for the three months ended March 31, 2015 to
levels that would have resulted if the average foreign currency
exchange rates for the three months ended March 31, 2015 were the
same as the average foreign currency exchange rates that were in
effect for the three months ended March 31, 2016; and (ii)
comparing the actual and adjusted financial measures for the three
months ended March 31, 2015 to the similar financial measures for
the three months ended March 31, 2016 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, before the adjustments for
changes in foreign currency exchange rates, are based on the
calculations contained elsewhere in these non-GAAP reconciliations
for the three months ended March 31, 2016 and 2015. The average
foreign currency exchange rates for each of the relevant currencies
during each of the three months ended March 31, 2016 and 2015 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 three months ended March 31, 2016
compared to the same period in 2015 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)
|
|
|
|
|
|
|
|
|
|
|
Predecessor
Company
|
|
|
Successor
Company
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
1Q 2015
Actual
|
1Q 2015
Adjustment
(1)
|
1Q 2015
Normalized
(1)
|
|
|
1Q 2016
Actual
|
1Q
2015
to 1Q
2016
Actual
Growth
Rate
(2)
|
1Q
2015
to 1Q
2016
Normalized
Growth Rate
(3)
|
|
|
|
|
|
|
|
|
|
|
Consolidated:
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
363,408
|
|
$
|
(97,576)
|
|
$
|
265,832
|
|
|
|
$
|
226,557
|
|
(38)%
|
(15)%
|
|
Adjusted
operating loss before
depreciation and amortization
|
(18,346)
|
|
(946)
|
|
(19,292)
|
|
|
|
(8,044)
|
|
(56)%
|
(58)%
|
|
Nextel
Brazil:
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
363,356
|
|
$
|
(97,576)
|
|
$
|
265,780
|
|
|
|
$
|
226,503
|
|
(38)%
|
(15)%
|
|
Segment
earnings
|
3,523
|
|
(946)
|
|
2,577
|
|
|
|
3,760
|
|
7%
|
46%
|
|
(1)
|
The "1Q 2015
Normalized" amounts reflect the impact of applying the average
foreign currency exchange rates for the three months ended March
31, 2016 to the operating revenues earned in foreign currencies and
to the other components of each of the actual financial measures
shown above for the three months ended March 31, 2015. The amounts
included under the column "1Q 2015 Normalized" reflect the amount
determined by subtracting the "1Q 2015 Adjustment" amounts
calculated as described in the preceding sentence from the "1Q 2015
Actual" 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 three months ended March 31, 2016. The
average foreign currency exchange rates for each of the relevant
currencies during the three months ended March 31, 2016 and 2015
for purposes of these calculations were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
Company
|
|
Predecessor
Company
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Brazilian
real
|
3.91
|
|
2.86
|
|
|
|
|
|
|
|
|
|
|
(2)
|
The percentage
amounts in these columns reflect the growth rates for each of the
financial measures comparing the amounts in the "1Q 2016 Actual"
columns with those in the "1Q 2015 Actual" columns.
|
|
|
|
(3)
|
The percentage
amounts in these columns reflect the growth rates for each of the
financial measures comparing the amounts in the "1Q 2016 Actual"
columns with those in the "1Q 2015 Normalized" columns.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nii-holdings-announces-2016-first-quarter-results-300265600.html
SOURCE NII Holdings, Inc.