RESTON, Va., March 8, 2018 /PRNewswire/ --
- Operating revenues of $189
million for the fourth quarter and $870 million for the full year
- Operating loss of $40
million for the fourth quarter and $272 million for the full year
-
- Fourth quarter and full year results include $14 million and $180
million of non-cash asset impairment and restructuring
charges
- Adjusted operating loss before depreciation and
amortization (adjusted OIBDA loss) of $18
million for the fourth quarter and $55 million for the full year
- Year-end unrestricted cash and short-term investments of
$211 million and $110 million of cash held in escrow
- Ended 2017 with 2.90 million 3G/4G subscribers, a 3%
increase year-over-year
-
- Fourth quarter 3G/4G net subscriber additions of 26,800
and 3G/4G churn of 3.47%
NII Holdings, Inc. [NASDAQ: NIHD] today announced its financial
results for the fourth quarter and full year of 2017. For the
quarter, the Company generated consolidated operating revenues of
$189 million, a consolidated
operating loss of $40 million and
consolidated adjusted OIBDA loss of $18
million. The Company's consolidated adjusted OIBDA excludes
the impact of non-cash asset impairments, restructuring charges and
other unusual items. For the full year, the Company generated
consolidated operating revenues of $870
million, a consolidated operating loss of $272 million and consolidated adjusted OIBDA loss
of $55 million. Capital expenditures
were $21 million for the quarter and
$51 million for the full year.
For the fourth quarter of 2017, Nextel Brazil reported a
significant improvement in its 3G/4G subscriber results, with
26,800 3G/4G net subscriber additions, a 59,100 increase compared
to the third quarter of 2017. In addition, 3G/4G churn for the
fourth quarter was 3.47%, a 57-basis point decrease compared to the
third quarter of 2017. Subscriber migrations from its iDEN network
to its 3G/4G network were 23,500, the highest quarterly level
reported for 2017. The Company expects the improving net subscriber
addition and average monthly churn rate trends for 3G/4G
experienced in the fourth quarter to continue in the first quarter
of 2018.
"The improved subscriber results reported for the fourth quarter
reflect the continued efforts we have been making to enhance our
customers' experience while providing them with a very competitive
and attractive offer," stated Roberto Rittes, Chief Executive
Officer of Nextel Brazil. "We are expecting a further reduction in
3G/4G churn in the first quarter, giving us confidence that we can
drive meaningful 3G/4G subscriber growth in 2018, which should lead
to increasing 3G/4G revenues. At the same time, we are continuing
to maintain discipline around our spending and remain focused on
capturing additional cost reduction opportunities. Entering 2018,
we are energized and excited to execute on our plan for the
year."
Nextel Brazil's key financial metrics for 2017 were largely in
line with 2016. Average monthly service revenue per subscriber
(ARPU) was $19, cost per gross
addition (CPGA) was $97 and cash cost
per user (CCPU) was $18. For the
fourth quarter, Nextel Brazil reported ARPU of $18, CPGA of $102
and CCPU of $17.
At year-end, the Company's sources of funding totaled
$371 million, including $211 million of unrestricted cash and short-term
investments, $110 million of cash
held in escrow to secure indemnification obligations in connection
with the sale of Nextel Mexico and $50
million in cash pledged as collateral to secure certain
performance bonds in Brazil. The Company recovered
substantially all of the cash securing these performance bonds in
January 2018.
The Company recently reached an agreement with the Mexican tax
authorities on $73 million in
previously escrowed funds related to the audits of Nextel Mexico's
income tax returns for the years 2010 and 2011. The Company expects
to recover some of that amount in the next few months. The Company
is continuing to work with the Mexican tax authorities to settle
the open non-income tax-based audits and accelerate the release of
the remaining escrow.
"We ended the year with a healthy liquidity position," stated
Dan Freiman, Chief Financial Officer
of NII Holdings. "With the completion of the loan amendments that
we recently announced, which take near-term pressure off our
liquidity, as well as recent encouraging operating trends, we are
positioned to grow our 3G/4G subscriber base this year. We believe
this growth will pay back in the form of higher revenues and
adjusted OIBDA in 2019 and beyond."
The Company announced the following outlook for 2018:
- Total 3G/4G net subscriber additions of 300,000 or more;
- Moderately better consolidated adjusted OIBDA than the amount
reported in 2017, but still negative; and
- A similar level of capital expenditures as the amount reported
in 2017.
The Company's consolidated adjusted OIBDA outlook for 2018
excludes an expected positive impact from the adoption of ASU No.
2014-09, "Revenue from Contracts with Customers," or ASC 606, on
January 1, 2018.
With the completion of the loan amendments and improvements to
the Company's liquidity and outlook, management is finalizing its
assessment of whether substantial doubt about the Company's ability
to continue as a going concern has been resolved.
Additional details regarding the Company's results, including
the Company's conclusion on its assessment of going concern and a
more detailed explanation on local currency operating metrics, will
be included in the Company's Annual Report on Form 10-K for the
year ended December 31, 2017 that
will be filed with the Securities and Exchange Commission in the
coming days. 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 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
fund the business and meet its business plans, customer growth and
retention, pricing, network usage, operating costs, the timing of
various events, ice group's minority ownership in the Company, the
economic and regulatory environment and the foreign currency
exchange rates that will prevail in 2018. 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, including the
inability to access escrowed and pledged funds when expected, 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 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,
2016 and in its Quarterly Report on Form 10-Q for the three
months ended June 30, 2017, 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 the Company disclaims any duty to update
the information herein.
www.nii.com
NII HOLDINGS, INC.
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS FOR THE THREE MONTHS AND YEARS ENDED DECEMBER
31, 2017 AND 2016 (in millions, except per share
amounts)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Operating
revenues
Service and
other revenues
|
$
|
184.1
|
|
|
$
|
243.8
|
|
|
$
|
847.9
|
|
|
$
|
963.2
|
|
Handset and
accessory revenues
|
4.8
|
|
|
4.6
|
|
|
21.9
|
|
|
21.8
|
|
|
188.9
|
|
|
248.4
|
|
|
869.8
|
|
|
985.0
|
|
Operating
expenses
Cost of
service (exclusive of depreciation and amortization
included below)
|
90.1
|
|
|
96.2
|
|
|
374.7
|
|
|
364.6
|
|
Cost of
handsets and accessories
|
9.7
|
|
|
3.5
|
|
|
40.2
|
|
|
29.3
|
|
Selling,
general and administrative
|
107.1
|
|
|
148.5
|
|
|
510.2
|
|
|
560.8
|
|
Impairment,
restructuring and other charges
|
14.4
|
|
|
44.1
|
|
|
179.7
|
|
|
1,384.8
|
|
Depreciation
|
4.0
|
|
|
9.4
|
|
|
22.2
|
|
|
135.4
|
|
Amortization
|
3.6
|
|
|
4.0
|
|
|
15.0
|
|
|
37.0
|
|
|
228.9
|
|
|
305.7
|
|
|
1,142.0
|
|
|
2,511.9
|
|
Operating
loss
|
(40.0)
|
|
|
(57.3)
|
|
|
(272.2)
|
|
|
(1,526.9)
|
|
Other (expense)
income
Interest
expense, net
|
(27.4)
|
|
|
(31.9)
|
|
|
(118.6)
|
|
|
(113.7)
|
|
Interest
income
|
5.6)
|
|
|
8.0
|
|
|
41.5
|
|
|
37.7
|
|
Foreign
currency transaction (losses) gains, net
|
(13.5)
|
|
|
(1.2)
|
|
|
(1.3)
|
|
|
76.6
|
|
Other expense,
net
|
(2.4)
|
|
|
(2.7)
|
|
|
(7.9)
|
|
|
(9.7)
|
|
|
(37.7)
|
|
|
(27.8)
|
|
|
(86.3)
|
|
|
(9.1)
|
|
Loss from
continuing operations before reorganization
items and income tax provision
|
(77.7)
|
|
|
(85.1)
|
|
|
(358.5)
|
|
|
(1,536.0)
|
|
Reorganization
items
|
—
|
|
|
(0.1)
|
|
|
0.4
|
|
|
(0.8)
|
|
Income tax
benefit
|
0.6
|
|
|
0.4
|
|
|
6.4
|
|
|
2.9
|
|
Net loss from
continuing operations
|
(77.1)
|
|
|
(84.8)
|
|
|
(351.7)
|
|
|
(1,533.9)
|
|
Net (loss) income
from discontinued operations, net of income taxes
|
(1.6)
|
|
|
(3.7)
|
|
|
1.0
|
|
|
(20.0)
|
|
Net
loss
|
(78.7)
|
|
|
(88.5)
|
|
|
(350.7)
|
|
|
(1,553.9)
|
|
Net loss
attributable to noncontrolling interest
|
(22.4)
|
|
|
—
|
|
|
(49.7)
|
|
|
—
|
|
Net loss
attributable to NII Holdings
|
$
|
(56.3)
|
|
|
$
|
(88.5)
|
|
|
$
|
(301.0)
|
|
|
$
|
(1,553.9)
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations per common share, basic and
diluted
|
$
|
(0.77)
|
|
|
$
|
(0.84)
|
|
|
$
|
(3.51)
|
|
|
$
|
(15.32)
|
|
Net (loss) income
from discontinued operations per common
share, basic and diluted
|
(0.02)
|
|
|
(0.04)
|
|
|
0.01
|
|
|
(0.20)
|
|
Net loss per
common share, basic and diluted
|
$
|
(0.79)
|
|
|
$
|
(0.88)
|
|
|
$
|
(3.50)
|
|
|
$
|
(15.52)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding, basic and
diluted
|
100.4
|
|
|
100.2
|
|
|
100.3
|
|
|
100.1
|
|
CONSOLIDATED
BALANCE SHEETS (in millions, except par
values)
|
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
|
|
ASSETS
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
193.9
|
|
|
$
|
257.4
|
|
Short-term
investments
|
16.7
|
|
|
73.9
|
|
Accounts receivable,
net of allowance for doubtful accounts of $42.0 and
$54.2
|
106.7
|
|
|
153.8
|
|
Handset and accessory
inventory
|
3.1
|
|
|
8.3
|
|
Prepaid expenses and
other
|
254.5
|
|
|
280.1
|
|
Total current
assets
|
574.9
|
|
|
773.5
|
|
Property, plant
and equipment, net
|
117.3
|
|
|
129.5
|
|
Intangible assets,
net
|
194.7
|
|
|
243.7
|
|
Other
assets
|
218.2
|
|
|
271.8
|
|
Total
assets
|
$
|
1,105.1
|
|
|
$
|
1,418.5
|
|
LIABILITIES AND
STOCKHOLDERS' (DEFICIT) EQUITY
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
42.3
|
|
|
$
|
69.2
|
|
Accrued expenses and
other
|
300.8
|
|
|
271.9
|
|
Deferred
revenues
|
7.3
|
|
|
11.6
|
|
Current portion of
long-term debt
|
8.0
|
|
|
540.5
|
|
Total current
liabilities
|
358.4
|
|
|
893.2
|
|
Long-term
debt
|
647.7
|
|
|
215.8
|
|
Other long-term
liabilities
|
220.9
|
|
|
143.5
|
|
Total
liabilities
|
1,227.0
|
|
|
1,252.5
|
|
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, 140.0 shares authorized, 100.4 shares issued and
outstanding — 2017, 100.3 shares issued and
outstanding — 2016
|
0.1
|
|
|
0.1
|
|
Paid-in
capital
|
2,139.3
|
|
|
2,076.6
|
|
Accumulated
deficit
|
(2,135.8)
|
|
|
(1,834.8)
|
|
Accumulated other
comprehensive loss
|
(46.9)
|
|
|
(75.9)
|
|
Total stockholders'
(deficit) equity
|
(43.3)
|
|
|
166.0
|
|
Noncontrolling
interest
|
(78.6)
|
|
|
—
|
|
Total (deficit)
equity
|
(121.9)
|
|
|
166.0
|
|
Total liabilities and
stockholders' (deficit) equity
|
$
|
1,105.1
|
|
|
$
|
1,418.5
|
|
CONSOLIDATED CASH
FLOW DATA (in millions)
|
|
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
|
|
|
Cash and cash
equivalents, beginning of year
|
$
|
257.4
|
|
|
$
|
342.2
|
|
Net cash used in
operating activities
|
(87.1)
|
|
|
(45.2)
|
|
Net cash provided by
investing activities
|
71.8
|
|
|
54.4
|
|
Net cash used in
financing activities
|
(48.7)
|
|
|
(93.0)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
0.5
|
|
|
(1.0)
|
|
Cash and cash
equivalents, end of year
|
$
|
193.9
|
|
|
$
|
257.4
|
|
NII HOLDINGS, INC.
AND SUBSIDIARIES OPERATING RESULTS AND
METRICS FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31,
2017 AND 2016 (1) (UNAUDITED)
|
|
Nextel
Brazil
|
(dollars in
millions, except ARPU and CPGA, and subscribers in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Service and other
revenues
|
$
|
184.0
|
|
|
$
|
243.8
|
|
|
$
|
847.8
|
|
|
$
|
963.1
|
|
|
|
|
|
|
|
|
|
|
|
Handset and accessory
revenues
|
4.8
|
|
|
4.6
|
|
|
21.9
|
|
|
21.8
|
|
|
Cost of handsets and
accessories
|
(9.7)
|
|
|
(3.5)
|
|
|
(40.2)
|
|
|
(29.3)
|
|
|
Handset and accessory
net subsidy
|
(4.9)
|
|
|
1.1
|
|
|
(18.3)
|
|
|
(7.5)
|
|
|
Cost of service
(exclusive of depreciation and amortization)
|
(90.1)
|
|
|
(96.2)
|
|
|
(374.7)
|
|
|
(364.6)
|
|
|
Selling, general and
administrative
|
(104.9)
|
|
|
(141.2)
|
|
|
(485.9)
|
|
|
(523.8)
|
|
|
Segment (losses)
earnings
|
(15.9)
|
|
|
7.5
|
|
|
(31.1)
|
|
|
67.2
|
|
|
Reversal of accrued
tax contingency
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.1)
|
|
|
Adjusted operating
(loss) income before depreciation and amortization
|
$
|
(15.9)
|
|
|
$
|
7.5
|
|
|
$
|
(31.1)
|
|
|
$
|
59.1
|
|
|
|
|
|
|
|
|
|
|
|
Subscriber
units
|
|
|
|
|
|
|
|
|
iDEN
|
349.6
|
|
|
822.7
|
|
|
349.6
|
|
|
822.7
|
|
|
WCDMA
|
2,896.1
|
|
|
2,815.2
|
|
|
2,896.1
|
|
|
2,815.2
|
|
|
Total
subscriber units in commercial service (as of December
31)
|
3,245.7
|
|
|
3,637.9
|
|
|
3,245.7
|
|
|
3,637.9
|
|
|
|
|
|
|
|
|
|
|
|
iDEN net subscriber
losses
|
(76.6)
|
|
|
(110.1)
|
|
|
(395.8)
|
|
|
(585.8)
|
|
|
WCDMA net subscriber
gains (losses)
|
26.8
|
|
|
39.6
|
|
|
3.6
|
|
|
(73.0)
|
|
|
Total
net subscriber losses
|
(49.8)
|
|
|
(70.5)
|
|
|
(392.2)
|
|
|
(658.8)
|
|
|
|
|
|
|
|
|
|
|
|
Migrations from
iDEN to WCDMA
|
23.5
|
|
|
29.3
|
|
|
77.3
|
|
|
143.5
|
|
|
|
|
|
|
|
|
|
|
|
iDEN subscriber
churn
|
6.36
|
%
|
|
4.71
|
%
|
|
6.07
|
%
|
|
4.66
|
%
|
|
WCDMA subscriber
churn
|
3.47
|
%
|
|
3.31
|
%
|
|
3.57
|
%
|
|
3.73
|
%
|
|
Churn
(%)
|
3.83
|
%
|
|
3.65
|
%
|
|
3.98
|
%
|
|
4.00
|
%
|
|
|
|
|
|
|
|
|
|
|
ARPU
(1)
|
$
|
18
|
|
|
$
|
20
|
|
|
$
|
19
|
|
|
$
|
19
|
|
|
|
|
|
|
|
|
|
|
|
CPGA
(1)
|
$
|
102
|
|
|
$
|
100
|
|
|
$
|
97
|
|
|
$
|
97
|
|
|
|
|
|
|
|
|
|
|
|
CCPU(1)
|
$
|
17
|
|
|
$
|
19
|
|
|
$
|
18
|
|
|
$
|
17
|
|
|
|
(1) For
information regarding ARPU, CPGA and CCPU, see "Non-GAAP
Reconciliations for the Three Months and Years Ended December 31,
2017 and 2016" included in this release.
|
NON-GAAP RECONCILIATIONS
FOR THE
THREE MONTHS AND YEARS ENDED DECEMBER 31,
2017 AND 2016
(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 ongoing 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.
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Consolidated
operating
loss
|
$
|
(40.0)
|
|
|
$
|
(57.3)
|
|
|
$
|
(272.2)
|
|
|
$
|
(1,526.9)
|
|
|
Consolidated
depreciation
|
4.0
|
|
|
9.4
|
|
|
22.2
|
|
|
135.4
|
|
|
Consolidated
amortization
|
3.6
|
|
|
4.0
|
|
|
15.0
|
|
|
37.0
|
|
|
Consolidated
operating loss before depreciation and amortization
|
(32.4)
|
|
|
(43.9)
|
|
|
(235.0)
|
|
|
(1,354.5)
|
|
|
Reversal of accrued
tax contingency
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.1)
|
|
|
Asset impairment
charges
|
3.8
|
|
|
23.6
|
|
|
67.3
|
|
|
1,349.4
|
|
|
Restructuring
charges
|
10.6
|
|
|
20.5
|
|
|
112.4
|
|
|
35.4
|
|
|
Consolidated adjusted
operating (loss) income before
depreciation and amortization
|
$
|
(18.0)
|
|
|
$
|
0.2
|
|
|
$
|
(55.3)
|
|
|
$
|
22.2
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
US$
|
|
Service and other
revenues
|
$
|
184.0
|
|
|
$
|
243.8
|
|
|
$
|
847.8
|
|
|
$
|
963.1
|
|
|
Less: other
revenues
|
(12.5)
|
|
|
(20.8)
|
|
|
(63.2)
|
|
|
(89.3)
|
|
|
Total subscriber
revenues
|
$
|
171.5
|
|
|
$
|
223.0
|
|
|
$
|
784.6
|
|
|
$
|
873.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
calculated with subscriber revenues
|
$
|
18
|
|
|
$
|
20
|
|
|
$
|
19
|
|
|
$
|
19
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
calculated with service and other revenues
|
$
|
19
|
|
|
$
|
22
|
|
|
$
|
21
|
|
|
$
|
21
|
|
|
|
|
|
|
|
|
|
|
|
Nextel
Brazil
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
BRL
R$
|
|
Service and other
revenues
|
$
|
597.7
|
|
|
$
|
802.5
|
|
|
$
|
2,703.7
|
|
|
$
|
3,347.6
|
|
|
Less: other
revenues
|
(40.6)
|
|
|
(68.4)
|
|
|
(201.5)
|
|
|
(312.3)
|
|
|
Total subscriber
revenues
|
$
|
557.1
|
|
|
$
|
734.1
|
|
|
$
|
2,502.2
|
|
|
$
|
3,035.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
calculated with subscriber revenues
|
$
|
57
|
|
|
$
|
67
|
|
|
$
|
61
|
|
|
$
|
65
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
calculated with service and other revenues
|
$
|
61
|
|
|
$
|
73
|
|
|
$
|
66
|
|
|
$
|
72
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
US$
|
|
Handset and accessory
revenues.
|
$
|
4.8
|
|
|
$
|
4.6
|
|
|
$
|
21.9
|
|
|
$
|
21.8
|
|
|
Less: uninsured
handset replacement revenues
|
(0.1)
|
|
|
—
|
|
|
(0.3)
|
|
|
(0.3)
|
|
|
Handset and accessory
revenues, net
|
4.7
|
|
|
4.6
|
|
|
21.6
|
|
|
21.5
|
|
|
Less: cost of
handsets and accessories
|
9.7
|
|
|
3.5
|
|
|
40.2
|
|
|
29.3
|
|
|
Handset subsidy costs
|
5.0
|
|
|
(1.1)
|
|
|
18.6
|
|
|
7.8
|
|
|
Selling and
marketing
|
29.7
|
|
|
36.0
|
|
|
108.5
|
|
|
116.5
|
|
|
Costs per statement
of operations
|
34.7
|
|
|
34.9
|
|
|
127.1
|
|
|
124.3
|
|
|
Less: costs unrelated
to initial customer acquisition
|
(1.4)
|
|
|
(2.0)
|
|
|
(5.9)
|
|
|
(7.3)
|
|
|
Customer acquisition costs
|
$
|
33.3
|
|
|
$
|
32.9
|
|
|
$
|
121.2
|
|
|
$
|
117.0
|
|
|
|
|
|
|
|
|
|
|
|
Cost per Gross
Add
|
$
|
102
|
|
|
$
|
100
|
|
|
$
|
97
|
|
|
$
|
97
|
|
|
|
|
|
|
|
|
|
|
|
Nextel
Brazil
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
BRL
R$
|
|
Handset and
accessory
revenues
|
$
|
15.7
|
|
|
$
|
15.1
|
|
|
$
|
69.7
|
|
|
$
|
76.6
|
|
|
Less: uninsured
handset replacement revenues
|
(0.3)
|
|
|
(0.1)
|
|
|
(0.8)
|
|
|
(1.0)
|
|
|
Handset and accessory
revenues, net
|
15.4
|
|
|
15.0
|
|
|
68.9
|
|
|
75.6
|
|
|
Less: cost of
handsets and accessories
|
31.8
|
|
|
11.5
|
|
|
128.6
|
|
|
104.7
|
|
|
Handset subsidy costs
|
16.4
|
|
|
(3.5)
|
|
|
59.7
|
|
|
29.1
|
|
|
Selling and
marketing
|
96.2
|
|
|
119.2
|
|
|
346.0
|
|
|
401.4
|
|
|
Costs per statement
of operations
|
112.6
|
|
|
115.7
|
|
|
405.7
|
|
|
430.5
|
|
|
Less: costs unrelated
to initial customer acquisition
|
(4.5)
|
|
|
(6.7)
|
|
|
(18.7)
|
|
|
(25.1)
|
|
|
Customer acquisition costs
|
$
|
108.1
|
|
|
$
|
109.0
|
|
|
$
|
387.0
|
|
|
$
|
405.4
|
|
|
|
|
|
|
|
|
|
|
|
Cost per Gross
Add
|
$
|
332
|
|
|
$
|
330
|
|
|
$
|
310
|
|
|
$
|
335
|
|
|
|
|
|
|
|
|
|
|
|
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 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
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
US$
|
|
Total selling,
general and administrative expenses
|
$
|
104.9
|
|
|
$
|
141.2
|
|
|
$
|
485.9
|
|
|
$
|
523.8
|
|
|
Less: selling and
marketing expenses
|
(29.7)
|
|
|
(36.0)
|
|
|
(108.5)
|
|
|
(116.5)
|
|
|
General and
administrative expenses
|
75.2
|
|
|
105.2
|
|
|
377.4
|
|
|
407.3
|
|
|
Cost of
service
|
90.1
|
|
|
96.2
|
|
|
374.7
|
|
|
364.6
|
|
|
Customer retention
costs and other
|
1.4
|
|
|
2.0
|
|
|
5.9
|
|
|
7.3
|
|
|
Total
|
$
|
166.7
|
|
|
$
|
203.4
|
|
|
$
|
758.0
|
|
|
$
|
779.2
|
|
|
|
|
|
|
|
|
|
|
|
Cash Cost per
User
|
$
|
17
|
|
|
$
|
19
|
|
|
$
|
18
|
|
|
$
|
17
|
|
|
|
|
|
|
|
|
|
|
|
Nextel
Brazil
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
BRL
R$
|
|
Total selling,
general and administrative expenses
|
$
|
340.1
|
|
|
$
|
465.1
|
|
|
$
|
1,547.8
|
|
|
$
|
1,818.0
|
|
|
Less: selling and
marketing expenses
|
(96.3)
|
|
|
(119.2)
|
|
|
(346.0)
|
|
|
(401.4)
|
|
|
General and
administrative expenses
|
243.8
|
|
|
345.9
|
|
|
1,201.8
|
|
|
1,416.6
|
|
|
Cost of
service
|
292.6
|
|
|
316.6
|
|
|
1,194.2
|
|
|
1,297.4
|
|
|
Customer retention
costs and other
|
4.6
|
|
|
6.7
|
|
|
18.7
|
|
|
25.1
|
|
|
Total
|
$
|
541.0
|
|
|
$
|
669.2
|
|
|
$
|
2,414.7
|
|
|
$
|
2,739.1
|
|
|
|
|
|
|
|
|
|
|
|
Cash Cost per
User
|
$
|
55
|
|
|
$
|
61
|
|
|
$
|
59
|
|
|
$
|
59
|
|
|
|
|
|
|
|
|
|
|
|
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 and year ended December 31,
2016 compared to the same periods in 2017 by (i) adjusting
the relevant measures for the three months and year ended
December 31, 2016 to levels that
would have resulted if the average foreign currency exchange rates
for the three months and year ended December
31, 2016 were the same as the average foreign currency
exchange rates that were in effect for the three months and year
ended December 31, 2017; and (ii)
comparing the actual and adjusted financial measures for the three
months and year ended December 31,
2016 to the similar financial measures for the three months
and year ended December 31, 2017 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
and year ended December 31, 2017 and
2016. The average foreign currency exchange rates for each of the
relevant currencies during each of the three months and year ended
December 31, 2017 and 2016 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 and year ended December 31,
2017 compared to the same periods in 2016 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 2016
Actual
|
4Q 2016 Adjustment
(1)
|
4Q 2016
Normalized
(1)
|
|
4Q 2017
Actual
|
4Q
2016
to 4Q
2017
Actual B(W)
Growth (2)
|
4Q
2016
to 4Q
2017
Normalized
B(W) Growth
(3)
|
|
|
|
|
|
|
|
|
Consolidated:
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
248,440
|
|
$
|
3,057
|
|
$
|
251,497
|
|
|
$
|
188,870
|
|
(24)%
|
(25)%
|
Adjusted
operating income (loss)
before depreciation and amortization
|
175
|
|
93
|
|
268
|
|
|
(18,057)
|
|
NM
|
NM
|
Nextel
Brazil:
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
248,409
|
|
$
|
3,057
|
|
$
|
251,466
|
|
|
$
|
188,847
|
|
(24)%
|
(25)%
|
Adjusted
operating income (loss) before depreciation and
amortization
|
7,534
|
|
93
|
|
7,627
|
|
|
(15,863)
|
|
NM
|
NM
|
_______________________________________
NM-Not Meaningful
NII Holdings,
Inc.
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
|
YTD 2016
Actual
|
YTD 2016
Adjustment
(1)
|
YTD 2016
Normalized
(1)
|
|
YTD 2017
Actual
|
YTD
2016
to YTD
2017
B(W) Growth
(2)
|
YTD
2016
to YTD
2017
Normalized
B(W)
Growth
(3)
|
|
|
|
|
|
|
|
|
Consolidated:
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
985,046
|
|
$
|
92,622
|
|
$
|
1,077,668
|
|
|
$
|
869,767
|
|
(12)%
|
(19)%
|
Adjusted
operating income (loss)
before depreciation and amortization
|
22,232
|
|
5,554
|
|
27,786
|
|
|
(55,245)
|
|
NM
|
(299)%
|
Nextel
Brazil:
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
984,878
|
|
$
|
92,622
|
|
$
|
1,077,500
|
|
|
$
|
869,661
|
|
(12)%
|
(19)%
|
Adjusted
operating income (loss) before depreciation and
amortization
|
59,053
|
|
5,554
|
|
64,607
|
|
|
(31,071)
|
|
(153)%
|
(148)%
|
_______________________________________
NM-Not Meaningful
(1)
The "4Q 2016 Normalized" and "YTD 2016 Normalized" amounts
reflect the impact of applying the average foreign currency
exchange rates for the three months and year ended December 31, 2017 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 and
year ended December 31, 2016, 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 "4Q 2016 Normalized" and "YTD
2016 Normalized" reflect the amount determined by adding the "4Q
2016 Adjustment" and "YTD 2016 Adjustment" amounts calculated as
described in the preceding sentence to the "4Q 2016 Actual" and
"YTD 2016 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 and
year ended December 31, 2017. The
average foreign currency exchange rates for each of the relevant
currencies during the three months and year ended December 31, 2017 and 2016 for purposes of these
calculations were as follows:
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Brazilian
real
|
3.25
|
|
3.29
|
|
3.19
|
|
3.49
|
(2) The
percentage amounts in these columns reflect the better, or B, or
worse, or W, growth rates for each of the financial measures
comparing the amounts in the "4Q 2017 Actual" and "YTD 2017 Actual"
columns with those in the "4Q 2016 Actual" and "YTD 2016 Actual"
columns.
(3) The
percentage amounts in these columns reflect the the better,
or B, or worse, or W, growth rates for each of the financial
measures comparing the amounts in the "4Q 2017 Actual" and "YTD
2017 Actual" columns with those in the "4Q 2016 Normalized" and
"YTD 2016 Normalized" columns.
View original
content:http://www.prnewswire.com/news-releases/nii-holdings-reports-2017-fourth-quarter-and-year-end-results-300610563.html
SOURCE NII Holdings, Inc.