[May 07, 2015] |
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SPRINT INFORMA LOS RESULTADOS CORRESPONDIENTES AL CUARTO TRIMESTRE DEL EJERCICIO FISCAL 2014
Sprint Corporation (NYSE: S) informó hoy los resultados
operativos correspondientes al cuarto trimestre del ejercicio fiscal
2014, con 1,2 millones de incorporaciones netas de clientes en la
plataforma de Sprint -la cifra más alta en casi tres años. La compañía
registró una rotación considerablemente mejor (1,84%) en el negocio
post-pago, y por cuarto trimestre consecutivo redujo las pérdidas en el
negocio de telefonía post-pago. Asimismo, la compañía informó una
ganancia operativa de $318 millones y un EBITDA* ajustado de $1.700
millones.
"Estoy orgulloso de que el equipo haya ejecutado con éxito la primera
etapa de nuestra estrategia para detener la pérdida de clientes. Ahora
estamos en el primer trimestre de la segunda fase, y nos estamos
concentrando en atraer clientes de mejor calidad, reteniendo a los
actuales mediante una mejor experiencia del cliente y la mejora continua
de la red," expresó el CEO de Sprint, Marcelo Claure. "En consecuencia,
las incorporaciones netas de clientes en la plataforma de Sprint fueron
las más elevadas en casi tres años, la rotación en el servicio post-pago
registró una disminución secuencial de 46 p.b., y la red recibió más
premios en los principales mercados, todo lo cual posicionará a la
compañía para un crecimiento rentable."
1,2 millones de clientes nuevos en la plataforma de Sprint
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Se registraron 1,2 millones de incorporaciones netas de clientes en la
plataforma de Sprint, en comparación con 967.000 en el trimestre
anterior, y 383.000 pérdidas netas en el mismo trimestre del ejercicio
anterior. La mejora interanual obedeció fundamentalmente al
crecimiento del negocio de servicio pre-pago y a menos pérdidas de
clientes en el negocio post-pago.
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En el negocio post-pago se registraron 211.000 nuevos clientes netos,
comparado con 30.000 en el trimestre anterior, y 231.000 pérdidas
netas de clientes en el mismo trimestre del ejercicio anterior. La
mejora interanual de 442.000 obedeció a la incorporación bruta de
clientes con mejor calidad de crédito y a una menor rotación.
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Por primera vez en casi tres años, registramos un saldo neto
positivo de nuevos clientes.
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El negocio post-pago de teléfonos registró 201.000 pérdidas de
clientes, comparado con 205.000 en el trimestre anterior, y
693.000 en el mismo trimestre del ejercicio anterior. La mejora
interanual de 492.000 fue impulsada por una menor rotación de
clientes y de la incorporación bruta de clientes de más alta
calidad.
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En el negocio post-pago de tabletas, se registraron
incorporaciones netas de 349.000 clientes comparado con 189.000 en
el trimestre anterior y 516.000 en el trimestre del ejercicio
anterior.
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En el negocio pre-pago, las incorporaciones netas de 546.000 clientes
lideraron la industria por segundo trimestre consecutivo, comparado
con pérdidas netas de 410.000 en el trimestre anterior y pérdidas
netas de 364.000 en el mismo trimestre del ejercicio anterior. La
mejora interanual de 910.000 se debió fundamentalmente al crecimiento
de la marca Boost Mobile.
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Se registraron incorporaciones netas de 492.000 clientes en el negocio
mayorista, comparado con 527.000 en el trimestre anterior, y 212.000
en el mismo trimestre del ejercicio anterior. El aumento interanual
fue atribuible principalmente a los dispositivos conectados.
Avances sólidos en las iniciativas de retención de clientes
Sprint se ha enfocado en reducir la rotación de clientes en el negocio
post-pago, mediante varias acciones: aumento de las condiciones de
crédito, respuesta a las necesidades de los clientes de actualizar sus
equipos a los modelos más recientes, y la continua mejora de la
experiencia de red. La compañía también ha hecho especial hincapié en
una medida de lealtad del cliente, denominada Net Promoter Score (NPS o
Puntuación Neta de Promoción), con el nombramiento de un director de
experiencia del cliente enfocado en mejorar este indicador y vinculando
la mejora de este indicador NPS con la remuneración de todos los
empleados. Estas acciones, junto con otras, se han traducido en mejoras
en varios indicadores de retención de clientes durante el trimestre.
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La rotación de clientes en el negocio post-pago de la plataforma de
Sprint se redujo de 2,30% el trimestre anterior a un 1,84%, lo que
representa una mejora de 46 p.b. en casi siete años.
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La mayor mejora secuencial en la rotación voluntaria del negocio
post-pago de la plataforma de Sprint en casi 11 años.
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El indicador NPS mejoró, pasando de una puntuación negativa a mediados
de 2014 al nivel más alto en casi dos años en el mes de marzo.
Mejorar la experiencia del cliente
El mes pasado, Sprint introdujo varios programas innovadores y
funcionalidades para mejorar la experiencia del cliente.
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Sprint Direct 2 You es el primer programa en la industria que
se espera que transforme la experiencia de compra de teléfonos móviles
al trasladar la experiencia de las tiendas minoristas al lugar donde
se encuentra el cliente. Con este servicio personalizado de primer
nivel, un experto capacitado por Sprint lleva un dispositivo móvil al
lugar donde se encuentra el cliente, lo configura y transfiere todo el
contenido que tenía en su anterior dispositivo.
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El servicio de roaming internacional gratuito, al agregarse al
plan de servicios locales, da al cliente la posibilidad de
viajar a importantes zonas de América Latina, Europa y Japón y tener
servicio de roaming con velocidades de hasta 2G sin cargo adicional.
Asimismo, el cliente puede enviar mensajes de texto ilimitados sin
cargo adicional y llamar a cualquier parte del mundo desde esas zonas
a una tarifa de 20 centavos el minuto. Con el tiempo, se espera añadir
más destinos internacionales al servicio.
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Con el servicio de llamada gratuita por wi-fi en iPhone® se
amplían considerablemente las opciones de cobertura y conectividad
para clientes con servicio en iPhone 6, iPhone 6 Plus, iPhone 5c y
iPhone 5s. Con la inclusión de la rica cartera de dispositivos Android
que permiten hacer llamadas usando wi-fi, Sprint tiene actualmente 27
dispositivos en total que pueden aprovechar los beneficios de las
llamadas por wi-fi.
Continuar atrayendo clientes de calidad
Sprint no sólo está enfocado en atraer más clientes, sino también
clientes de mejor calidad. Con ofertas innovadoras, como el evento Cut
Your Bill in Half y el único programa de arrendamiento de dispositivos
en la industria, se ha observado una mejora en la adquisición de
clientes en la plataforma de Sprint.
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Las incorporaciones brutas en el negocio post-pago crecieron a una
tasa interanual del 11%.
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En el negocio post-pago de teléfonos, las incorporaciones brutas de
clientes de primera calidad crecieron un 65% interanual.
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Las incorporaciones brutas en el negocio pre-pago fueron las más altas
de las que se tenga registro, con un crecimiento interanual del 41%.
Ampliar la distribución
Recientemente Sprint duplicó su presencia en tiendas minoristas propias
al abrir 1.435 tiendas de marca compartida Sprint-RadioShack y espera
que el modelo de "tienda dentro de tienda" esté en pleno funcionamiento
en los dos próximos trimestres, lo que permitirá una expansión más
rápida y económicamente rentable de la distribución de la compañía. La
compañía también continuará buscando formas innovadoras, tales como
Sprint Direct 2 You, para seguir ampliando la distribución de la marca
Sprint y lograr una mejor posición competitiva dentro de la industria.
Resultados financieros trimestrales
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Los ingresos operativos netos de $8.300 millones descendieron un siete
por ciento interanual, ya que los mayores ingresos por equipos se
vieron parcialmente disminuidos por menores ingresos del servicio
inalámbrico, debido fundamentalmente a cambios de clientes a planes de
tarifas asociados con opciones para el financiamiento de dispositivos
celulares.
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El EBITDA* ajustado consolidado de $1.700 millones descendió un cinco
por ciento respecto del mismo trimestre el ejercicio anterior, dado
que los menores ingresos por servicios se vieron compensados, en
parte, por menos gastos correspondientes a subsidios netos
relacionados con la introducción de opciones de financiación de
dispositivos celulares - incluyendo el arrendamiento, el cual no se
contabiliza como costo de productos en el punto de venta - y una
reducción de los costos del servicio tras concluir el reemplazo de la
red de voz y 3G.
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La ganancia operativa de $318 millones significaron un descenso
respecto de los $420 millones registrados en el mismo trimestre del
ejercicio anterior, debido principalmente a un mayor gasto de
depreciación.
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La compañía registró una pérdida neta de $224 millones, o $0,06 por
acción, comparado con una pérdida neta de $151 millones, o $0,04 por
acción, en el mismo período del ejercicio anterior, ya que una
ganancia operativa más baja se vio compensada parcialmente por menores
gastos del impuesto a la renta.
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La liquidez total ascendió a $7.500 millones al cierre del trimestre,
e incluyó $4.200 millones correspondientes a efectivo, equivalentes de
efectivo e inversiones a corto plazo, y $3.300 millones
correspondientes a líneas de crédito no utilizadas en virtud de un
acuerdo de crédito rotativo y una línea de descuento de cuentas por
cobrar. Actualmente, la compañía también tiene $1.400 millones
disponibles en virtud de acuerdos de financiamiento de proveedores que
pueden utilizarse para la compra de dispositivos celulares de la red
2,5 GHz. Asimismo, en abril Sprint modificó la línea de descuento de
cuentas por cobrar para incluir las cuentas por cobrar por
dispositivos celulares y aumentó su tamaño de $1.300 millones a $3.300
millones, al incluir las cuentas por cobrar por dispositivos celulares.
El rendimiento de la red #GettingBetterEveryDay
Sprint está enfocada en aprovechar la cartera de espectros para
proporcionar una red que brinde la confiabilidad, capacidad y velocidad
constantes que exigen los clientes. Durante el trimestre, Sprint
continuó fortaleciendo el 4G LTE en el espectro 800 MHz y 2,5GHz y la
cobertura total LTE que ahora llega prácticamente a 280 millones de
personas.
La firma RootMetrics® de analistas independientes de la industria de
telefonía móvil reconoció las mejoras significativas de la red de la
compañía en su Informe de Análisis de Rendimiento de la Red Móvil
correspondiente al segundo semestre de 2014. Desde entonces, Sprint ha
ocupado 104 primeros lugares (exclusivos o compartidos) en los Premios
RootScore en categorías tales como rendimiento total, confiabilidad,
velocidad, rendimiento de la red en datos, llamadas o texto en los 77
mercados que se miden a la fecha en primera mitad de 2015, incluidos
estos notables logros.
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Ciudad
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Categoría
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Clasificación 2S14
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Clasificación 1S15
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Pittsburgh, PA
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Confiabilidad y rendimiento de llamadas
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3ro, 2do compartido
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1ro compartido
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San Antonio, TX
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Confiabilidad y rendimiento de llamadas
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2do compartido, 1ro compartido
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1ro compartido
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St. Louis, MO
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Confiabilidad y rendimiento de llamadas
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3ro compartido, 1ro compartido
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1ro compartido
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Jacksonville, FL
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Confiabilidad y desempeño de llamadas
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3ro compartido, 1ro compartido
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1ro compartido
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Miami, FL
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Rendimiento de llamadas
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3ro
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1ro compartido
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Las Vegas, NV
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Rendimiento general
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4to
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1ro compartido
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Denver, CO
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Velocidad
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3ro compartido
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1ro compartido
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Salt Lake City, UT
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Velocidad
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3ro compartido
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1ro compartido
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Dayton, OH
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Velocidad
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4to
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1ro
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Atlanta, GA
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Rendimiento de textos
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3ro
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1ro compartido
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Limitación de responsabilidad: Clasificaciones basadas en el Informe
de Análisis de Rendimiento de la Red Móvil correspondiente al segundo
semestre 2014 de RootMetrics, publicado el 10 de febrero de 2015, y 77
Informes RootScore de Rootmetrics (1 de enero al 7 de abril de 2015)
sobre rendimiento de dispositivos móviles probados en función de los
mejores planes y dispositivos disponibles en cuatro redes móviles, en
todos los tipos de redes disponibles. El premio de RootMetrics no
constituye un aval de Sprint. Sus resultados pueden variar. Visite www.rootmetrics.com
para conocer más detalles.
"En nuestros estudios RootMetrics del primer semestre de 2015, una
selección de áreas metropolitanas han registrado mejoras en el
rendimiento de la red de Sprint, incluyendo confiabilidad, llamadas y
velocidad", expresó Bill Moore, CEO de la firma de analistas
independientes de la industria de telefonía móvil RootMetrics. "Esto es
una gran noticia para los clientes de Sprint de estas áreas, quienes
están gozando los beneficios de la inversión que Sprint ha realizado en
estos mercados."
Perspectivas
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La compañía prevé que el EBITDA* ajustado para el ejercicio 2015 se
situará entre $6,5 y $6,9 mil millones.
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La compañía espera que el efectivo destinado a inversiones en bienes
de capital acumulado ascienda a aproximadamente $5 mil millones en el
ejercicio 2015, excluido el impacto de los dispositivos celulares
arrendados con opción de venta efectivamente vendidos a través de los
canales indirectos.
Llamada en conferencia y Webcast
-
Fecha/hora: 8:30 a.m. ET, martes 5 de mayo de 2015
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Llamadas entrantes
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EE.UU./Canadá: 866-360-1063 (ID: 21947319)
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Internacionales: 706-679-4164 (ID: 21947319)
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Webcast disponible a través de Internet en www.sprint.com/investors
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Puede acceder a información adicional sobre los resultados, incluida
la publicación "Quarterly Investor Update", en el sitio web de
Relaciones con Inversionistas.
Información de contacto
-
Contacto con los medios de comunicación: Scott Sloat, 240-855-0164, [email protected]
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Contacto con los inversionistas: Jud Henry, 800-259-3755, [email protected]
-
Los resultados financieros en los cuadros adjuntos incluyen un
período anterior relacionado con los resultados de las operaciones de
Sprint Communications Inc. (anteriormente Sprint Nextel) antes del
cierre de la operación SoftBank el 10 de julio de 2013, y los períodos
aplicables que le sucedieron. Para presentar los resultados
financieros en un modo que ofrezca a los inversionistas una
comparación más significativa de los resultados a la fecha, hemos
combinado los resultados de las operaciones del ejercicio 2013 para
los períodos anteriores y posteriores. Para más información, consulte
la sección titulada Medidas financieras. Las tendencias de los
indicadores de rendimiento financiero combinados pueden encontrarse en
nuestro sitio web de Relaciones con los Inversionistas en www.sprint.com/investors.
INFORMACIÓN IMPORTANTE
Esta publicación incluye "declaraciones de proyecciones futuras" con el
significado que a ese término le atribuyen las leyes de títulos valores.
Las palabras "puede", "podría", "debería", "estima", "proyecta",
"pronostica", "prevé", "espera", "anticipa", "cree", "apunta",
"planifica", "orienta" y expresiones similares tienen por objetivo
identificar información que no tiene carácter histórico. Todas las
declaraciones que se refieran a resultados operativos, sucesos o
acontecimientos que se espera o se prevé que ocurran en el futuro,
incluidas declaraciones relacionadas con nuestra red, crecimiento de las
conexiones, y liquidez; y las declaraciones que presentan opiniones
generales sobre los resultados operativos en el futuro, constituyen
declaraciones de proyecciones futuras. Las declaraciones de proyecciones
futuras son estimaciones y previsiones que reflejan la opinión de la
gerencia a partir de la información actualmente disponible y conllevan
incertidumbre y varios riesgos como consecuencia de los cuales los
resultados reales podrían diferir significativamente de los que sugieren
las declaraciones de proyecciones futuras. Con respecto a estas
declaraciones de proyecciones futuras, la gerencia ha realizado
supuestos sobre, entre otras cosas, la evolución y la utilización de
nuevas tecnologías y servicios; eficiencias y ahorros de costos de
nuevas tecnologías y servicios; uso de la red y clientes; crecimiento de
la conexión y retención; servicio, velocidad, cobertura y calidad;
disponibilidad de dispositivos; oportunidad de diversos sucesos y
coyuntura económica. Sprint considera que estas declaraciones de
proyecciones futuras son razonables; sin embargo, no se debe depositar
excesiva confianza en ellas pues se basan en las expectativas actuales y
son válidas exclusivamente a la fecha en que se realizan. Sprint no
asume obligación alguna de actualizar o revisar públicamente cualquiera
de las declaraciones de proyecciones futuras, ya sea debido a nueva
información, sucesos futuros o por otra causa, salvo que lo exija la
ley. Asimismo, las declaraciones de proyecciones futuras están sujetas a
determinados riesgos y situaciones de incertidumbre como consecuencia de
los cuales los resultados reales podrían diferir significativamente de
la experiencia histórica de la compañía y de nuestras proyecciones y
expectativas en el presente. Entre los factores que podrían generar
tales diferencias se incluyen, sin carácter limitativo, los que se
analizan en el Informe de Transición de Sprint Corporation en el
Formulario 10-K correspondiente al período cerrado el 31 de marzo de
2014 y, cuando se presente, en nuestro Formulario 10-K para el ejercicio
fiscal cerrado el 31 de marzo de 2015. Debe comprender que no es posible
predecir o identificar todos esos factores. En consecuencia, no debe
considerarse que dicha lista incluya un conjunto completo de posibles
riesgos o situaciones de incertidumbre.
Este comunicado de ingresos se provee exclusivamente para su
conveniencia. En caso de discrepancia, la versión en inglés actualmente
publicada en www.sprint.com/investors
prevalecerá.
Sprint no asume ninguna obligación o deber de realizar estas
publicaciones en el futuro, ni de proveer actualizaciones en el idioma
español.
Acerca de Sprint:
Sprint (NYSE: S) es una compañía de servicios de telecomunicaciones que
crea más y mejores formas de conectar a sus clientes con aquello que más
les importan. Sprint atiende más de 57 millones de conexiones al 31 de
marzo de 2015 y es ampliamente reconocida por el desarrollo, el diseño y
la utilización de tecnologías innovadoras, entre las que se incluyen el
primer servicio 4G inalámbrico de una empresa nacional de
telecomunicaciones en Estados Unidos; las marcas líderes sin contrato
que incluyen Virgin Mobile USA, Boost Mobile, y Assurance Wireless;
capacidades push-to-talk instantáneas nacionales e internacionales; y un
eje troncal de Internet global de primer nivel. Sprint ha formado parte
del índice Dow Jones Sustainability Index (DJSI) North America en los
cuatro últimos años. Puede obtener más información y visitar Sprint en www.sprint.com
or www.facebook.com/sprint
y www.twitter.com/sprint.
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Wireless Operating Statistics (Unaudited)
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Quarter To Date
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Year To Date
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3/31/15
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|
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12/31/14
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|
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3/31/14
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3/31/15
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3/31/14
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Net Additions (Losses) (in thousands)
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Sprint platform:
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|
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|
|
|
|
|
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Postpaid (2)
|
|
211
|
|
|
30
|
|
|
(231
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)
|
|
(212
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)
|
|
(339
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)
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Prepaid (3)
|
|
546
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|
|
410
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|
|
(364
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)
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|
449
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|
|
(444
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)
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Wholesale and affiliate
|
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492
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527
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|
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212
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2,349
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|
|
467
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Total Sprint platform
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1,249
|
|
|
967
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|
|
(383
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)
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|
2,586
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|
|
(316
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)
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Nextel platform:
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|
|
|
|
|
|
|
|
|
|
Postpaid (2)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,060
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)
|
Prepaid (3)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
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(255
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)
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Total Nextel platform
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
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(1,315
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)
|
Transactions:
|
|
|
|
|
|
|
|
|
|
|
Postpaid (2)
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|
(41
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)
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|
(49
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)
|
|
(102
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)
|
|
(218
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)
|
|
(583
|
)
|
Prepaid (3)
|
|
(18
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)
|
|
(39
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)
|
|
(51
|
)
|
|
(189
|
)
|
|
(230
|
)
|
Wholesale
|
|
22
|
|
|
13
|
|
|
69
|
|
|
75
|
|
|
107
|
|
Total transactions
|
|
(37
|
)
|
|
(75
|
)
|
|
(84
|
)
|
|
(332
|
)
|
|
(706
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total retail postpaid net additions (losses)
|
|
170
|
|
|
(19
|
)
|
|
(333
|
)
|
|
(430
|
)
|
|
(1,982
|
)
|
Total retail prepaid net additions (losses)
|
|
528
|
|
|
371
|
|
|
(415
|
)
|
|
260
|
|
|
(929
|
)
|
Total wholesale and affiliate net additions
|
|
514
|
|
|
540
|
|
|
281
|
|
|
2,424
|
|
|
574
|
|
Total Wireless Net Additions (Losses)
|
|
1,212
|
|
|
892
|
|
|
(467
|
)
|
|
2,254
|
|
|
(2,337
|
)
|
|
|
|
|
|
|
|
|
|
|
|
End of Period Connections (in thousands)
|
|
|
|
|
|
|
|
|
|
|
Sprint platform:
|
|
|
|
|
|
|
|
|
|
|
Postpaid (2)
|
|
29,706
|
|
|
29,495
|
|
|
29,918
|
|
|
29,706
|
|
|
29,918
|
|
Prepaid (3)
|
|
15,706
|
|
|
15,160
|
|
|
15,257
|
|
|
15,706
|
|
|
15,257
|
|
Wholesale and affiliate
|
|
10,725
|
|
|
10,233
|
|
|
8,376
|
|
|
10,725
|
|
|
8,376
|
|
Total Sprint platform
|
|
56,137
|
|
|
54,888
|
|
|
53,551
|
|
|
56,137
|
|
|
53,551
|
|
Nextel platform:
|
|
|
|
|
|
|
|
|
|
|
Postpaid (2)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Prepaid (3)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Total Nextel platform
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Transactions: (a)
|
|
|
|
|
|
|
|
|
|
|
Postpaid (2)
|
|
368
|
|
|
409
|
|
|
586
|
|
|
368
|
|
|
586
|
|
Prepaid (3)
|
|
361
|
|
|
379
|
|
|
550
|
|
|
361
|
|
|
550
|
|
Wholesale
|
|
275
|
|
|
253
|
|
|
200
|
|
|
275
|
|
|
200
|
|
Total transactions
|
|
1,004
|
|
|
1,041
|
|
|
1,336
|
|
|
1,004
|
|
|
1,336
|
|
|
|
|
|
|
|
|
|
|
|
|
Total retail postpaid end of period connections
|
|
30,074
|
|
|
29,904
|
|
|
30,504
|
|
|
30,074
|
|
|
30,504
|
|
Total retail prepaid end of period connections
|
|
16,067
|
|
|
15,539
|
|
|
15,807
|
|
|
16,067
|
|
|
15,807
|
|
Total wholesale and affiliate end of period connections
|
|
11,000
|
|
|
10,486
|
|
|
8,576
|
|
|
11,000
|
|
|
8,576
|
|
Total End of Period Connections
|
|
57,141
|
|
|
55,929
|
|
|
54,887
|
|
|
57,141
|
|
|
54,887
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data - Connected Devices
|
|
|
|
|
|
|
|
|
|
|
End of Period Connections (in thousands)
|
|
|
|
|
|
|
|
|
|
|
Retail postpaid
|
|
1,320
|
|
|
1,180
|
|
|
968
|
|
|
1,320
|
|
|
968
|
|
Wholesale and affiliate
|
|
5,832
|
|
|
5,175
|
|
|
3,882
|
|
|
5,832
|
|
|
3,882
|
|
Total
|
|
7,152
|
|
|
6,355
|
|
|
4,850
|
|
|
7,152
|
|
|
4,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Churn
|
|
|
|
|
|
|
|
|
|
|
Sprint platform:
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
1.84
|
%
|
|
2.30
|
%
|
|
2.11
|
%
|
|
2.09
|
%
|
|
2.00
|
%
|
Prepaid
|
|
3.84
|
%
|
|
3.94
|
%
|
|
4.33
|
%
|
|
3.99
|
%
|
|
4.04
|
%
|
Nextel platform:
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
33.90
|
%
|
Prepaid
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
32.13
|
%
|
Transactions: (a)
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
3.87
|
%
|
|
4.09
|
%
|
|
5.48
|
%
|
|
4.21
|
%
|
|
7.05
|
%
|
Prepaid
|
|
3.77
|
%
|
|
4.95
|
%
|
|
5.11
|
%
|
|
5.28
|
%
|
|
7.58
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Total retail postpaid churn
|
|
1.87
|
%
|
|
2.33
|
%
|
|
2.18
|
%
|
|
2.13
|
%
|
|
2.26
|
%
|
Total retail prepaid churn
|
|
3.84
|
%
|
|
3.97
|
%
|
|
4.35
|
%
|
|
4.03
|
%
|
|
4.21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Nextel Platform Connection Recaptures
|
|
|
|
|
|
|
|
|
|
|
Connections (in thousands) (4):
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
364
|
|
Prepaid
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
101
|
|
Rate (5):
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
34
|
%
|
Prepaid
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
39
|
%
|
(a) We acquired approximately 352,000 postpaid connections
and 59,000 prepaid connections through the acquisition of assets from
U.S. Cellular when the transaction closed on May 17, 2013. We acquired
approximately 788,000 postpaid connections, 721,000 prepaid connections,
93,000 wholesale connections and transferred 29,000 Sprint wholesale
connections that were originally recognized through our Clearwire MVNO
arrangement to Transactions postpaid connections as a result of the
Clearwire acquisition when the transaction closed on July 9, 2013.
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless Operating Statistics (Unaudited) (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
|
Combined (1)
|
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
Year
To
Date
|
|
101 Days
Ended
|
|
Year
To
Date
|
|
|
|
3/31/15
|
|
|
12/31/14
|
|
|
3/31/14
|
|
|
3/31/15
|
|
|
3/31/14
|
|
|
7/10/13
|
|
|
3/31/14
|
ARPU (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sprint platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
$
|
56.94
|
|
$
|
58.90
|
|
$
|
63.52
|
|
$
|
59.63
|
|
$
|
63.95
|
|
$
|
64.25
|
|
$
|
64.03
|
Prepaid
|
|
$
|
27.50
|
|
$
|
27.12
|
|
$
|
26.45
|
|
$
|
27.30
|
|
$
|
26.16
|
|
$
|
26.96
|
|
$
|
26.38
|
Nextel platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
36.66
|
|
$
|
36.66
|
Prepaid
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
34.48
|
|
$
|
34.48
|
Transactions: (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
$
|
40.28
|
|
$
|
39.85
|
|
$
|
37.26
|
|
$
|
39.69
|
|
$
|
36.99
|
|
$
|
56.98
|
|
$
|
39.21
|
Prepaid
|
|
$
|
46.68
|
|
$
|
45.80
|
|
$
|
43.80
|
|
$
|
45.72
|
|
$
|
41.65
|
|
$
|
18.26
|
|
$
|
42.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total retail postpaid ARPU
|
|
$
|
56.72
|
|
$
|
58.63
|
|
$
|
62.98
|
|
$
|
59.32
|
|
$
|
63.29
|
|
$
|
63.68
|
|
$
|
63.42
|
Total retail prepaid ARPU
|
|
$
|
27.95
|
|
$
|
27.61
|
|
$
|
27.07
|
|
$
|
27.81
|
|
$
|
26.79
|
|
$
|
27.01
|
|
$
|
26.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP RECONCILIATION - AVERAGE BILLINGS PER USER (ABPU)*
(Unaudited)
|
|
|
|
|
|
|
|
|
(Millions, except ABPU*)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
|
|
|
|
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
|
|
|
|
|
|
|
|
3/31/15
|
|
|
12/31/14
|
|
|
3/31/14
|
|
|
3/31/15
|
|
|
|
|
|
|
ABPU* (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sprint platform service revenue
|
|
$
|
5,049
|
|
$
|
5,202
|
|
$
|
5,719
|
|
$
|
21,181
|
|
|
|
|
|
|
Add: Installment plan billings and lease revenue
|
|
|
423
|
|
|
288
|
|
|
55
|
|
|
1,041
|
|
|
|
|
|
|
Total for Sprint platform postpaid connections
|
|
$
|
5,472
|
|
$
|
5,490
|
|
$
|
5,774
|
|
$
|
22,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sprint platform ABPU*
|
|
$
|
61.71
|
|
$
|
62.16
|
|
$
|
64.13
|
|
$
|
62.55
|
|
|
|
|
|
|
(a) We acquired approximately 352,000 postpaid connections
and 59,000 prepaid connections through the acquisition of assets from
U.S. Cellular when the transaction closed on May 17, 2013. We acquired
approximately 788,000 postpaid connections, 721,000 prepaid connections,
93,000 wholesale connections and transferred 29,000 Sprint wholesale
connections that were originally recognized through our Clearwire MVNO
arrangement to Transactions postpaid connections as a result of the
Clearwire acquisition when the transaction closed on July 9, 2013.
(b) ARPU is calculated by dividing service revenue by the sum of the
average number of connections in the applicable service category.
Changes in average monthly service revenue reflect connections for
either the postpaid or prepaid service category who change rate plans,
the level of voice and data usage, the amount of service credits which
are offered to connections, plus the net effect of average monthly
revenue generated by new connections and deactivating connections.
Combined ARPU for the year-to-date March 31, 2014 period aggregates
service revenue for the 101 days ended July 10, 2013 predecessor period
and the year-to-date March 31, 2014 successor period divided by the sum
of the average connections during the year-to-date period.
(c) Sprint platform postpaid ABPU* is calculated by dividing service
revenue earned from customers plus installment plan billings and lease
revenue by the sum of the average number of connections during the
period.
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
|
|
|
|
|
|
(Millions, except per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
|
Combined (1)
|
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
Year
To
Date
|
|
101 Days
Ended
|
|
Year
To
Date
|
|
|
|
3/31/15
|
|
|
|
12/31/14
|
|
|
|
3/31/14
|
|
|
|
3/31/15
|
|
|
|
3/31/14
|
|
|
|
7/10/13
|
|
|
|
3/31/14
|
|
Net Operating Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenue
|
|
$
|
7,138
|
|
|
$
|
7,272
|
|
|
$
|
7,876
|
|
|
$
|
29,542
|
|
|
$
|
22,970
|
|
|
$
|
8,915
|
|
|
$
|
31,885
|
|
Equipment revenue
|
|
|
1,144
|
|
|
|
1,701
|
|
|
|
999
|
|
|
|
4,990
|
|
|
|
2,796
|
|
|
|
894
|
|
|
|
3,690
|
|
Total Net Operating Revenues
|
|
|
8,282
|
|
|
|
8,973
|
|
|
|
8,875
|
|
|
|
34,532
|
|
|
|
25,766
|
|
|
|
9,809
|
|
|
|
35,575
|
|
Net Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services
|
|
|
2,381
|
|
|
|
2,330
|
|
|
|
2,622
|
|
|
|
9,660
|
|
|
|
7,796
|
|
|
|
3,033
|
|
|
|
10,829
|
|
Cost of products
|
|
|
1,827
|
|
|
|
2,952
|
|
|
|
2,038
|
|
|
|
9,309
|
|
|
|
6,641
|
|
|
|
2,579
|
|
|
|
9,220
|
|
Selling, general and administrative
|
|
|
2,331
|
|
|
|
2,647
|
|
|
|
2,371
|
|
|
|
9,563
|
|
|
|
7,198
|
|
|
|
2,731
|
|
|
|
9,929
|
|
Depreciation and amortization
|
|
|
1,454
|
|
|
|
1,320
|
|
|
|
1,297
|
|
|
|
5,349
|
|
|
|
4,231
|
|
|
|
1,753
|
|
|
|
5,984
|
|
Impairments (6)
|
|
|
-
|
|
|
|
2,133
|
|
|
|
75
|
|
|
|
2,133
|
|
|
|
75
|
|
|
|
-
|
|
|
|
75
|
|
Other, net
|
|
|
(29
|
)
|
|
|
131
|
|
|
|
52
|
|
|
|
413
|
|
|
|
361
|
|
|
|
627
|
|
|
|
988
|
|
Total net operating expenses
|
|
|
7,964
|
|
|
|
11,513
|
|
|
|
8,455
|
|
|
|
36,427
|
|
|
|
26,302
|
|
|
|
10,723
|
|
|
|
37,025
|
|
Operating Income (Loss)
|
|
|
318
|
|
|
|
(2,540
|
)
|
|
|
420
|
|
|
|
(1,895
|
)
|
|
|
(536
|
)
|
|
|
(914
|
)
|
|
|
(1,450
|
)
|
Interest expense
|
|
|
(523
|
)
|
|
|
(506
|
)
|
|
|
(516
|
)
|
|
|
(2,051
|
)
|
|
|
(1,434
|
)
|
|
|
(703
|
)
|
|
|
(2,137
|
)
|
Equity in earnings of unconsolidated investments and other, net
|
|
|
8
|
|
|
|
10
|
|
|
|
1
|
|
|
|
27
|
|
|
|
68
|
|
|
|
2,665
|
|
|
|
2,733
|
|
(Loss) Income before Income Taxes
|
|
|
(197
|
)
|
|
|
(3,036
|
)
|
|
|
(95
|
)
|
|
|
(3,919
|
)
|
|
|
(1,902
|
)
|
|
|
1,048
|
|
|
|
(854
|
)
|
Income tax (expense) benefit
|
|
|
(27
|
)
|
|
|
657
|
|
|
|
(56
|
)
|
|
|
574
|
|
|
|
(100
|
)
|
|
|
(1,563
|
)
|
|
|
(1,663
|
)
|
Net Loss
|
|
$
|
(224
|
)
|
|
$
|
(2,379
|
)
|
|
$
|
(151
|
)
|
|
$
|
(3,345
|
)
|
|
$
|
(2,002
|
)
|
|
$
|
(515
|
)
|
|
$
|
(2,517
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Net Loss Per Common Share
|
|
$
|
(0.06
|
)
|
|
$
|
(0.60
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
(0.85
|
)
|
|
$
|
(0.54
|
)
|
|
$
|
(0.17
|
)
|
|
|
NM
|
|
Diluted Net Loss Per Common Share
|
|
$
|
(0.06
|
)
|
|
$
|
(0.60
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
(0.85
|
)
|
|
$
|
(0.54
|
)
|
|
$
|
(0.17
|
)
|
|
|
NM
|
|
Basic Weighted Average Common Shares outstanding
|
|
|
3,962
|
|
|
|
3,957
|
|
|
|
3,949
|
|
|
|
3,953
|
|
|
|
3,693
|
|
|
|
3,038
|
|
|
|
NM
|
|
Diluted Weighted Average Common Shares outstanding
|
|
|
3,962
|
|
|
|
3,957
|
|
|
|
3,949
|
|
|
|
3,953
|
|
|
|
3,693
|
|
|
|
3,038
|
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate
|
|
|
-13.7
|
%
|
|
|
21.6
|
%
|
|
|
-58.9
|
%
|
|
|
14.6
|
%
|
|
|
-5.3
|
%
|
|
|
149.1
|
%
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP RECONCILIATION - NET LOSS TO ADJUSTED EBITDA* (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
|
Combined (1)
|
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
Year
To
Date
|
|
101 Days
Ended
|
|
Year
To
Date
|
|
|
|
3/31/15
|
|
|
|
12/31/14
|
|
|
|
3/31/14
|
|
|
|
3/31/15
|
|
|
|
3/31/14
|
|
|
|
7/10/13
|
|
|
|
3/31/14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(224
|
)
|
|
$
|
(2,379
|
)
|
|
$
|
(151
|
)
|
|
$
|
(3,345
|
)
|
|
$
|
(2,002
|
)
|
|
$
|
(515
|
)
|
|
$
|
(2,517
|
)
|
Income tax expense (benefit)
|
|
|
27
|
|
|
|
(657
|
)
|
|
|
56
|
|
|
|
(574
|
)
|
|
|
100
|
|
|
|
1,563
|
|
|
|
1,663
|
|
(Loss) Income before Income Taxes
|
|
|
(197
|
)
|
|
|
(3,036
|
)
|
|
|
(95
|
)
|
|
|
(3,919
|
)
|
|
|
(1,902
|
)
|
|
|
1,048
|
|
|
|
(854
|
)
|
Equity in earnings of unconsolidated investments and other, net
|
|
|
(8
|
)
|
|
|
(10
|
)
|
|
|
(1
|
)
|
|
|
(27
|
)
|
|
|
(68
|
)
|
|
|
(2,665
|
)
|
|
|
(2,733
|
)
|
Interest expense
|
|
|
523
|
|
|
|
506
|
|
|
|
516
|
|
|
|
2,051
|
|
|
|
1,434
|
|
|
|
703
|
|
|
|
2,137
|
|
Operating Income (Loss)
|
|
|
318
|
|
|
|
(2,540
|
)
|
|
|
420
|
|
|
|
(1,895
|
)
|
|
|
(536
|
)
|
|
|
(914
|
)
|
|
|
(1,450
|
)
|
Depreciation and amortization
|
|
|
1,454
|
|
|
|
1,320
|
|
|
|
1,297
|
|
|
|
5,349
|
|
|
|
4,231
|
|
|
|
1,753
|
|
|
|
5,984
|
|
EBITDA*
|
|
|
1,772
|
|
|
|
(1,220
|
)
|
|
|
1,717
|
|
|
|
3,454
|
|
|
|
3,695
|
|
|
|
839
|
|
|
|
4,534
|
|
Severance and exit costs (7)
|
|
|
(29
|
)
|
|
|
22
|
|
|
|
52
|
|
|
|
304
|
|
|
|
361
|
|
|
|
627
|
|
|
|
988
|
|
Impairments (6)
|
|
|
-
|
|
|
|
2,133
|
|
|
|
75
|
|
|
|
2,133
|
|
|
|
75
|
|
|
|
-
|
|
|
|
75
|
|
Litigation (8)
|
|
|
-
|
|
|
|
91
|
|
|
|
-
|
|
|
|
91
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Business combinations (9)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
100
|
|
|
|
53
|
|
|
|
153
|
|
Partial pension settlement (10)
|
|
|
-
|
|
|
|
59
|
|
|
|
-
|
|
|
|
59
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Release of assumed liability - U.S. Cellular asset acquisition (11)
|
|
|
-
|
|
|
|
(41
|
)
|
|
|
-
|
|
|
|
(41
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Hurricane Sandy (12)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
(7
|
)
|
Adjusted EBITDA*
|
|
$
|
1,743
|
|
|
$
|
1,044
|
|
|
$
|
1,844
|
|
|
$
|
6,000
|
|
|
$
|
4,224
|
|
|
$
|
1,519
|
|
|
$
|
5,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin*
|
|
|
24.4
|
%
|
|
|
14.4
|
%
|
|
|
23.4
|
%
|
|
|
20.3
|
%
|
|
|
18.4
|
%
|
|
|
17.0
|
%
|
|
|
18.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in deferred tax asset valuation allowance
|
|
$
|
114
|
|
|
$
|
500
|
|
|
$
|
82
|
|
|
$
|
911
|
|
|
$
|
790
|
|
|
$
|
1,145
|
|
|
$
|
1,935
|
|
Accrued capital expenditures
|
|
$
|
1,422
|
|
|
$
|
1,827
|
|
|
$
|
1,057
|
|
|
$
|
6,182
|
|
|
$
|
4,624
|
|
|
$
|
2,072
|
|
|
$
|
6,696
|
|
Cash paid for capital expenditures
|
|
$
|
2,047
|
|
|
$
|
1,568
|
|
|
$
|
1,488
|
|
|
$
|
6,004
|
|
|
$
|
5,335
|
|
|
$
|
1,759
|
|
|
$
|
7,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WIRELESS STATEMENTS OF OPERATIONS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
|
Combined (1)
|
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
Year
To
Date
|
|
101 Days
Ended
|
|
Year
To
Date
|
|
|
|
3/31/15
|
|
|
|
12/31/14
|
|
|
|
3/31/14
|
|
|
|
3/31/15
|
|
|
|
3/31/14
|
|
|
|
7/10/13
|
|
|
|
3/31/14
|
|
Net Operating Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sprint platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid (2)
|
|
$
|
5,049
|
|
|
$
|
5,202
|
|
|
$
|
5,719
|
|
|
$
|
21,181
|
|
|
$
|
16,702
|
|
|
$
|
6,469
|
|
|
$
|
23,171
|
|
Prepaid (3)
|
|
|
1,272
|
|
|
|
1,215
|
|
|
|
1,232
|
|
|
|
4,905
|
|
|
|
3,497
|
|
|
|
1,408
|
|
|
|
4,905
|
|
Wholesale, affiliate and other
|
|
|
189
|
|
|
|
191
|
|
|
|
145
|
|
|
|
724
|
|
|
|
393
|
|
|
|
146
|
|
|
|
539
|
|
Total Sprint platform
|
|
|
6,510
|
|
|
|
6,608
|
|
|
|
7,096
|
|
|
|
26,810
|
|
|
|
20,592
|
|
|
|
8,023
|
|
|
|
28,615
|
|
Nextel platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid (2)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
74
|
|
|
|
74
|
|
Prepaid (3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
17
|
|
|
|
17
|
|
Total Nextel platform
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
91
|
|
|
|
91
|
|
Transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid (2)
|
|
|
47
|
|
|
|
52
|
|
|
|
70
|
|
|
|
222
|
|
|
|
240
|
|
|
|
26
|
|
|
|
266
|
|
Prepaid (3)
|
|
|
52
|
|
|
|
54
|
|
|
|
75
|
|
|
|
236
|
|
|
|
236
|
|
|
|
2
|
|
|
|
238
|
|
Wholesale
|
|
|
19
|
|
|
|
18
|
|
|
|
14
|
|
|
|
69
|
|
|
|
32
|
|
|
|
-
|
|
|
|
32
|
|
Total transactions
|
|
|
118
|
|
|
|
124
|
|
|
|
159
|
|
|
|
527
|
|
|
|
508
|
|
|
|
28
|
|
|
|
536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment revenue
|
|
|
1,144
|
|
|
|
1,701
|
|
|
|
999
|
|
|
|
4,990
|
|
|
|
2,796
|
|
|
|
894
|
|
|
|
3,690
|
|
Total net operating revenues
|
|
|
7,772
|
|
|
|
8,433
|
|
|
|
8,254
|
|
|
|
32,327
|
|
|
|
23,896
|
|
|
|
9,036
|
|
|
|
32,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services
|
|
|
2,006
|
|
|
|
1,902
|
|
|
|
2,106
|
|
|
|
7,945
|
|
|
|
6,441
|
|
|
|
2,532
|
|
|
|
8,973
|
|
Cost of products
|
|
|
1,827
|
|
|
|
2,952
|
|
|
|
2,038
|
|
|
|
9,309
|
|
|
|
6,641
|
|
|
|
2,579
|
|
|
|
9,220
|
|
Selling, general and administrative
|
|
|
2,242
|
|
|
|
2,545
|
|
|
|
2,273
|
|
|
|
9,179
|
|
|
|
6,817
|
|
|
|
2,550
|
|
|
|
9,367
|
|
Depreciation and amortization
|
|
|
1,406
|
|
|
|
1,259
|
|
|
|
1,224
|
|
|
|
5,109
|
|
|
|
4,032
|
|
|
|
1,636
|
|
|
|
5,668
|
|
Impairments (6)
|
|
|
-
|
|
|
|
1,900
|
|
|
|
72
|
|
|
|
1,900
|
|
|
|
72
|
|
|
|
-
|
|
|
|
72
|
|
Other, net
|
|
|
(29
|
)
|
|
|
107
|
|
|
|
51
|
|
|
|
349
|
|
|
|
331
|
|
|
|
627
|
|
|
|
958
|
|
Total net operating expenses
|
|
|
7,452
|
|
|
|
10,665
|
|
|
|
7,764
|
|
|
|
33,791
|
|
|
|
24,334
|
|
|
|
9,924
|
|
|
|
34,258
|
|
Operating Income (Loss)
|
|
$
|
320
|
|
|
$
|
(2,232
|
)
|
|
$
|
490
|
|
|
$
|
(1,464
|
)
|
|
$
|
(438
|
)
|
|
$
|
(888
|
)
|
|
$
|
(1,326
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Revenue Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total retail service revenue
|
|
$
|
6,420
|
|
|
$
|
6,523
|
|
|
$
|
7,096
|
|
|
$
|
26,544
|
|
|
$
|
20,675
|
|
|
$
|
7,996
|
|
|
$
|
28,671
|
|
Total service revenue
|
|
$
|
6,628
|
|
|
$
|
6,732
|
|
|
$
|
7,255
|
|
|
$
|
27,337
|
|
|
$
|
21,100
|
|
|
$
|
8,142
|
|
|
$
|
29,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WIRELESS NON-GAAP RECONCILIATION (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
|
Combined (1)
|
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
Year
To
Date
|
|
101 Days
Ended
|
|
Year
To
Date
|
|
|
|
3/31/15
|
|
|
|
12/31/14
|
|
|
|
3/31/14
|
|
|
|
3/31/15
|
|
|
|
3/31/14
|
|
|
|
7/10/13
|
|
|
|
3/31/14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
$
|
320
|
|
|
$
|
(2,232
|
)
|
|
$
|
490
|
|
|
$
|
(1,464
|
)
|
|
$
|
(438
|
)
|
|
$
|
(888
|
)
|
|
$
|
(1,326
|
)
|
Severance and exit costs (7)
|
|
|
(29
|
)
|
|
|
21
|
|
|
|
51
|
|
|
|
263
|
|
|
|
331
|
|
|
|
627
|
|
|
|
958
|
|
Impairments (6)
|
|
|
-
|
|
|
|
1,900
|
|
|
|
72
|
|
|
|
1,900
|
|
|
|
72
|
|
|
|
-
|
|
|
|
72
|
|
Litigation (8)
|
|
|
-
|
|
|
|
84
|
|
|
|
-
|
|
|
|
84
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Business combinations (9)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
25
|
|
|
|
-
|
|
|
|
25
|
|
Partial pension settlement (10)
|
|
|
-
|
|
|
|
43
|
|
|
|
-
|
|
|
|
43
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Release of assumed liability - U.S. Cellular asset acquisition (11)
|
|
|
-
|
|
|
|
(41
|
)
|
|
|
-
|
|
|
|
(41
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Hurricane Sandy (12)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
(7
|
)
|
Depreciation and amortization
|
|
|
1,406
|
|
|
|
1,259
|
|
|
|
1,224
|
|
|
|
5,109
|
|
|
|
4,032
|
|
|
|
1,636
|
|
|
|
5,668
|
|
Adjusted EBITDA*
|
|
$
|
1,697
|
|
|
$
|
1,034
|
|
|
$
|
1,837
|
|
|
$
|
5,894
|
|
|
$
|
4,015
|
|
|
$
|
1,375
|
|
|
$
|
5,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin*
|
|
|
25.6
|
%
|
|
|
15.4
|
%
|
|
|
25.3
|
%
|
|
|
21.6
|
%
|
|
|
19.0
|
%
|
|
|
16.9
|
%
|
|
|
18.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued capital expenditures
|
|
$
|
1,343
|
|
|
$
|
1,616
|
|
|
$
|
930
|
|
|
$
|
5,589
|
|
|
$
|
4,173
|
|
|
$
|
1,884
|
|
|
$
|
6,057
|
|
Cash paid for capital expenditures
|
|
$
|
1,957
|
|
|
$
|
1,376
|
|
|
$
|
1,343
|
|
|
$
|
5,442
|
|
|
$
|
4,878
|
|
|
$
|
1,570
|
|
|
$
|
6,448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WIRELINE STATEMENTS OF OPERATIONS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
|
Combined (1)
|
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
Year
To
Date
|
|
101 Days
Ended
|
|
Year
To
Date
|
|
|
|
3/31/15
|
|
|
|
12/31/14
|
|
|
|
3/31/14
|
|
|
|
3/31/15
|
|
|
|
3/31/14
|
|
|
|
7/10/13
|
|
|
|
3/31/14
|
|
Net Operating Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voice
|
|
$
|
264
|
|
|
$
|
289
|
|
|
$
|
352
|
|
|
$
|
1,174
|
|
|
$
|
1,071
|
|
|
$
|
419
|
|
|
$
|
1,490
|
|
Data
|
|
|
52
|
|
|
|
52
|
|
|
|
62
|
|
|
|
213
|
|
|
|
200
|
|
|
|
94
|
|
|
|
294
|
|
Internet
|
|
|
335
|
|
|
|
333
|
|
|
|
345
|
|
|
|
1,353
|
|
|
|
1,092
|
|
|
|
479
|
|
|
|
1,571
|
|
Other
|
|
|
17
|
|
|
|
18
|
|
|
|
11
|
|
|
|
74
|
|
|
|
43
|
|
|
|
16
|
|
|
|
59
|
|
Total net operating revenues
|
|
|
668
|
|
|
|
692
|
|
|
|
770
|
|
|
|
2,814
|
|
|
|
2,406
|
|
|
|
1,008
|
|
|
|
3,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of services
|
|
|
538
|
|
|
|
581
|
|
|
|
668
|
|
|
|
2,338
|
|
|
|
1,903
|
|
|
|
741
|
|
|
|
2,644
|
|
Selling, general and administrative
|
|
|
90
|
|
|
|
100
|
|
|
|
90
|
|
|
|
363
|
|
|
|
269
|
|
|
|
123
|
|
|
|
392
|
|
Depreciation and amortization
|
|
|
46
|
|
|
|
59
|
|
|
|
69
|
|
|
|
232
|
|
|
|
192
|
|
|
|
115
|
|
|
|
307
|
|
Impairments (6)
|
|
|
-
|
|
|
|
233
|
|
|
|
3
|
|
|
|
233
|
|
|
|
3
|
|
|
|
-
|
|
|
|
3
|
|
Other, net
|
|
|
(2
|
)
|
|
|
24
|
|
|
|
2
|
|
|
|
61
|
|
|
|
32
|
|
|
|
-
|
|
|
|
32
|
|
Total net operating expenses
|
|
|
672
|
|
|
|
997
|
|
|
|
832
|
|
|
|
3,227
|
|
|
|
2,399
|
|
|
|
979
|
|
|
|
3,378
|
|
Operating (Loss) Income
|
|
$
|
(4
|
)
|
|
$
|
(305
|
)
|
|
$
|
(62
|
)
|
|
$
|
(413
|
)
|
|
$
|
7
|
|
|
$
|
29
|
|
|
$
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WIRELINE NON-GAAP RECONCILIATION (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
|
Combined (1)
|
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
Year
To
Date
|
|
101 Days
Ended
|
|
Year
To
Date
|
|
|
|
3/31/15
|
|
|
|
12/31/14
|
|
|
|
3/31/14
|
|
|
|
3/31/15
|
|
|
|
3/31/14
|
|
|
|
7/10/13
|
|
|
|
3/31/14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss) Income
|
|
$
|
(4
|
)
|
|
$
|
(305
|
)
|
|
$
|
(62
|
)
|
|
$
|
(413
|
)
|
|
$
|
7
|
|
|
$
|
29
|
|
|
$
|
36
|
|
Severance and exit costs (7)
|
|
|
(2
|
)
|
|
|
2
|
|
|
|
2
|
|
|
|
39
|
|
|
|
32
|
|
|
|
-
|
|
|
|
32
|
|
Impairments (6)
|
|
|
-
|
|
|
|
233
|
|
|
|
3
|
|
|
|
233
|
|
|
|
3
|
|
|
|
-
|
|
|
|
3
|
|
Litigation (8)
|
|
|
-
|
|
|
|
6
|
|
|
|
-
|
|
|
|
6
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Partial pension settlement (10)
|
|
|
-
|
|
|
|
16
|
|
|
|
-
|
|
|
|
16
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Depreciation and amortization
|
|
|
46
|
|
|
|
59
|
|
|
|
69
|
|
|
|
232
|
|
|
|
192
|
|
|
|
115
|
|
|
|
307
|
|
Adjusted EBITDA*
|
|
$
|
40
|
|
|
$
|
11
|
|
|
$
|
12
|
|
|
$
|
113
|
|
|
$
|
234
|
|
|
$
|
144
|
|
|
$
|
378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin*
|
|
|
6.0
|
%
|
|
|
1.6
|
%
|
|
|
1.6
|
%
|
|
|
4.0
|
%
|
|
|
9.7
|
%
|
|
|
14.3
|
%
|
|
|
11.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued capital expenditures
|
|
$
|
68
|
|
|
$
|
70
|
|
|
$
|
72
|
|
|
$
|
278
|
|
|
$
|
227
|
|
|
$
|
104
|
|
|
$
|
331
|
|
Cash paid for capital expenditures
|
|
$
|
70
|
|
|
$
|
81
|
|
|
$
|
79
|
|
|
$
|
275
|
|
|
$
|
232
|
|
|
$
|
110
|
|
|
$
|
342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED CASH FLOW INFORMATION (Unaudited)
|
|
|
|
|
|
|
|
|
(Millions)
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
|
Combined (1)
|
|
|
|
|
|
|
|
|
Year
To
Date
|
|
Year
To
Date
|
|
101 Days
Ended
|
|
Year
To
Date
|
|
|
|
|
|
|
|
|
|
3/31/15
|
|
|
|
3/31/14
|
|
|
|
7/10/13
|
|
|
|
3/31/14
|
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
|
|
|
$
|
(3,345
|
)
|
|
$
|
(2,002
|
)
|
|
$
|
(515
|
)
|
|
$
|
(2,517
|
)
|
Impairments (6)
|
|
|
|
|
|
|
|
|
2,133
|
|
|
|
75
|
|
|
|
-
|
|
|
|
75
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
5,349
|
|
|
|
4,231
|
|
|
|
1,753
|
|
|
|
5,984
|
|
Provision for losses on accounts receivable
|
|
|
|
|
|
|
|
|
892
|
|
|
|
414
|
|
|
|
111
|
|
|
|
525
|
|
Share-based and long-term incentive compensation expense
|
|
|
|
|
|
|
86
|
|
|
|
133
|
|
|
|
20
|
|
|
|
153
|
|
Deferred income tax (benefit) expense
|
|
|
|
|
|
|
|
|
(609
|
)
|
|
|
79
|
|
|
|
1,562
|
|
|
|
1,641
|
|
Gain on previously-held equity interests
|
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,926
|
)
|
|
|
(2,926
|
)
|
Equity in losses of unconsolidated investments, net
|
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
280
|
|
|
|
280
|
|
Amortization and accretion of long-term debt premiums and discounts,
net
|
|
|
|
|
(303
|
)
|
|
|
(234
|
)
|
|
|
(5
|
)
|
|
|
(239
|
)
|
Other working capital changes, net
|
|
|
|
|
|
|
|
|
(1,736
|
)
|
|
|
(1,470
|
)
|
|
|
1,004
|
|
|
|
(466
|
)
|
Other, net
|
|
|
|
|
|
|
|
|
(17
|
)
|
|
|
(763
|
)
|
|
|
447
|
|
|
|
(316
|
)
|
Net cash provided by operating activities
|
|
|
|
|
|
|
|
|
2,450
|
|
|
|
463
|
|
|
|
1,731
|
|
|
|
2,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
|
|
|
|
(6,004
|
)
|
|
|
(5,335
|
)
|
|
|
(1,759
|
)
|
|
|
(7,094
|
)
|
Expenditures relating to FCC licenses
|
|
|
|
|
|
|
|
|
(163
|
)
|
|
|
(298
|
)
|
|
|
(70
|
)
|
|
|
(368
|
)
|
Reimbursements relating to FCC licenses
|
|
|
|
|
|
|
|
|
95
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Change in short-term investments, net
|
|
|
|
|
|
|
|
|
1,054
|
|
|
|
(119
|
)
|
|
|
869
|
|
|
|
750
|
|
Acquisitions, net of cash acquired
|
|
|
|
|
|
|
|
|
-
|
|
|
|
(14,112
|
)
|
|
|
(4,039
|
)
|
|
|
(18,151
|
)
|
Investment in Clearwire (including debt securities)
|
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(228
|
)
|
|
|
(228
|
)
|
Proceeds from sales of assets and FCC licenses
|
|
|
|
|
|
|
|
|
315
|
|
|
|
8
|
|
|
|
4
|
|
|
|
12
|
|
Other, net
|
|
|
|
|
|
|
|
|
(11
|
)
|
|
|
(8
|
)
|
|
|
(4
|
)
|
|
|
(12
|
)
|
Net cash used in investing activities
|
|
|
|
|
|
|
|
|
(4,714
|
)
|
|
|
(19,864
|
)
|
|
|
(5,227
|
)
|
|
|
(25,091
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from debt and financings
|
|
|
|
|
|
|
|
|
1,930
|
|
|
|
9,500
|
|
|
|
-
|
|
|
|
9,500
|
|
Debt financing costs
|
|
|
|
|
|
|
|
|
(87
|
)
|
|
|
(148
|
)
|
|
|
(1
|
)
|
|
|
(149
|
)
|
Repayments of debt, financing and capital lease obligations
|
|
|
|
|
|
|
(574
|
)
|
|
|
(3,537
|
)
|
|
|
(303
|
)
|
|
|
(3,840
|
)
|
Proceeds from issuance of common stock and warrants, net
|
|
|
|
|
|
|
35
|
|
|
|
18,567
|
|
|
|
53
|
|
|
|
18,620
|
|
Other, net
|
|
|
|
|
|
|
|
|
-
|
|
|
|
(14
|
)
|
|
|
-
|
|
|
|
(14
|
)
|
Net cash provided by (used in) financing activities
|
|
|
|
|
|
|
|
|
1,304
|
|
|
|
24,368
|
|
|
|
(251
|
)
|
|
|
24,117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Decrease) Increase in Cash and Cash Equivalents
|
|
|
|
|
|
|
(960
|
)
|
|
|
4,967
|
|
|
|
(3,747
|
)
|
|
|
1,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, beginning of period
|
|
|
|
|
|
|
|
|
4,970
|
|
|
|
3
|
|
|
|
6,275
|
|
|
|
3,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, end of period
|
|
|
|
|
|
|
|
$
|
4,010
|
|
|
$
|
4,970
|
|
|
$
|
2,528
|
|
|
$
|
4,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO CONSOLIDATED FREE CASH FLOW* (NON-GAAP)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions)
|
|
Successor
|
|
Predecessor
|
|
Combined (1)
|
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
Year
To
Date
|
|
101 Days
Ended
|
|
Year
To
Date
|
|
|
|
3/31/15
|
|
|
|
12/31/14
|
|
|
|
3/31/14
|
|
|
|
3/31/15
|
|
|
|
3/31/14
|
|
|
|
7/10/13
|
|
|
|
3/31/14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by (Used in) Operating Activities
|
|
$
|
976
|
|
|
$
|
(233
|
)
|
|
$
|
522
|
|
|
$
|
2,450
|
|
|
$
|
463
|
|
|
$
|
1,731
|
|
|
$
|
2,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(2,047
|
)
|
|
|
(1,568
|
)
|
|
|
(1,488
|
)
|
|
|
(6,004
|
)
|
|
|
(5,335
|
)
|
|
|
(1,759
|
)
|
|
|
(7,094
|
)
|
Expenditures relating to FCC licenses, net
|
|
|
(42
|
)
|
|
|
(42
|
)
|
|
|
(152
|
)
|
|
|
(68
|
)
|
|
|
(298
|
)
|
|
|
(70
|
)
|
|
|
(368
|
)
|
Proceeds from sales of assets and FCC licenses
|
|
|
201
|
|
|
|
13
|
|
|
|
1
|
|
|
|
315
|
|
|
|
8
|
|
|
|
4
|
|
|
|
12
|
|
Other investing activities, net
|
|
|
(2
|
)
|
|
|
(3
|
)
|
|
|
(2
|
)
|
|
|
(11
|
)
|
|
|
(8
|
)
|
|
|
(4
|
)
|
|
|
(12
|
)
|
Free Cash Flow*
|
|
|
(914
|
)
|
|
|
(1,833
|
)
|
|
|
(1,119
|
)
|
|
|
(3,318
|
)
|
|
|
(5,170
|
)
|
|
|
(98
|
)
|
|
|
(5,268
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt financing costs
|
|
|
(50
|
)
|
|
|
(37
|
)
|
|
|
(1
|
)
|
|
|
(87
|
)
|
|
|
(148
|
)
|
|
|
(1
|
)
|
|
|
(149
|
)
|
Increase (decrease) in debt and other, net
|
|
|
1,446
|
|
|
|
273
|
|
|
|
(159
|
)
|
|
|
1,356
|
|
|
|
5,963
|
|
|
|
(303
|
)
|
|
|
5,660
|
|
Acquisitions, net of cash acquired
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(14,112
|
)
|
|
|
(4,039
|
)
|
|
|
(18,151
|
)
|
(Payments for) proceeds from issuance of common stock and warrants,
net of payments for shares surrendered for taxes
|
|
|
(15
|
)
|
|
|
4
|
|
|
|
-
|
|
|
|
35
|
|
|
|
18,567
|
|
|
|
53
|
|
|
|
18,620
|
|
Investment in Clearwire (including debt securities)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(228
|
)
|
|
|
(228
|
)
|
Other financing activities, net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(14
|
)
|
|
|
-
|
|
|
|
(14
|
)
|
Net Increase (Decrease) in Cash, Cash Equivalents and
Short-Term Investments
|
|
$
|
467
|
|
|
$
|
(1,593
|
)
|
|
$
|
(1,279
|
)
|
|
$
|
(2,014
|
)
|
|
$
|
5,086
|
|
|
$
|
(4,616
|
)
|
|
$
|
470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
|
|
|
|
|
(Millions)
|
|
|
|
|
|
|
Successor
|
|
|
|
3/31/15
|
|
|
|
3/31/14
|
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
4,010
|
|
|
$
|
4,970
|
|
Short-term investments
|
|
|
166
|
|
|
|
1,220
|
|
Accounts and notes receivable, net
|
|
|
2,290
|
|
|
|
3,607
|
|
Device and accessory inventory
|
|
|
1,359
|
|
|
|
982
|
|
Deferred tax assets
|
|
|
62
|
|
|
|
128
|
|
Prepaid expenses and other current assets
|
|
|
1,890
|
|
|
|
672
|
|
Total current assets
|
|
|
9,777
|
|
|
|
11,579
|
|
|
|
|
|
|
Investments and other assets
|
|
|
1,077
|
|
|
|
892
|
|
Property, plant and equipment, net
|
|
|
19,721
|
|
|
|
16,299
|
|
Goodwill
|
|
|
6,575
|
|
|
|
6,383
|
|
FCC licenses and other
|
|
|
39,987
|
|
|
|
41,978
|
|
Definite-lived intangible assets, net
|
|
|
5,893
|
|
|
|
7,558
|
|
Total assets
|
|
$
|
83,030
|
|
|
$
|
84,689
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable
|
|
$
|
4,347
|
|
|
$
|
3,163
|
|
Accrued expenses and other current liabilities
|
|
|
5,293
|
|
|
|
5,544
|
|
Current portion of long-term debt, financing and capital lease
obligations
|
|
|
1,300
|
|
|
|
991
|
|
Total current liabilities
|
|
|
10,940
|
|
|
|
9,698
|
|
|
|
|
|
|
Long-term debt, financing and capital lease obligations
|
|
|
32,531
|
|
|
|
31,787
|
|
Deferred tax liabilities
|
|
|
13,898
|
|
|
|
14,207
|
|
Other liabilities
|
|
|
3,951
|
|
|
|
3,685
|
|
Total liabilities
|
|
|
61,320
|
|
|
|
59,377
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
Common shares
|
|
|
40
|
|
|
|
39
|
|
Paid-in capital
|
|
|
27,468
|
|
|
|
27,354
|
|
Treasury shares, at cost
|
|
|
(7
|
)
|
|
|
-
|
|
Accumulated deficit
|
|
|
(5,383
|
)
|
|
|
(2,038
|
)
|
Accumulated other comprehensive loss
|
|
|
(408
|
)
|
|
|
(43
|
)
|
Total stockholders' equity
|
|
|
21,710
|
|
|
|
25,312
|
|
Total liabilities and stockholders' equity
|
|
$
|
83,030
|
|
|
$
|
84,689
|
|
|
|
|
|
|
|
|
|
|
|
NET DEBT* (NON-GAAP) (Unaudited)
|
|
|
|
|
(Millions)
|
|
|
|
|
|
|
Successor
|
|
|
|
3/31/15
|
|
|
|
3/31/14
|
|
|
|
|
|
|
Total Debt
|
|
$
|
33,831
|
|
|
$
|
32,778
|
|
Less: Cash and cash equivalents
|
|
|
(4,010
|
)
|
|
|
(4,970
|
)
|
Less: Short-term investments
|
|
|
(166
|
)
|
|
|
(1,220
|
)
|
Net Debt*
|
|
$
|
29,655
|
|
|
$
|
26,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE OF DEBT (Unaudited)
|
|
|
|
|
|
|
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/15
|
ISSUER
|
|
|
COUPON
|
|
MATURITY
|
|
PRINCIPAL
|
Sprint Corporation
|
|
|
|
|
|
|
|
7.25% Notes due 2021
|
|
|
7.250%
|
|
09/15/2021
|
|
$
|
2,250
|
7.875% Notes due 2023
|
|
|
7.875%
|
|
09/15/2023
|
|
|
4,250
|
7.125% Notes due 2024
|
|
|
7.125%
|
|
06/15/2024
|
|
|
2,500
|
7.625% Notes due 2025
|
|
|
7.625%
|
|
02/15/2025
|
|
|
1,500
|
Sprint Corporation
|
|
|
|
|
|
|
|
10,500
|
|
|
|
|
|
|
|
|
Sprint Communications, Inc.
|
|
|
|
|
|
|
|
Export Development Canada Facility (Tranche 2)
|
|
|
4.080%
|
|
12/15/2015
|
|
|
500
|
Export Development Canada Facility (Tranche 3)
|
|
|
3.495%
|
|
12/17/2019
|
|
|
300
|
6% Senior Notes due 2016
|
|
|
6.000%
|
|
12/01/2016
|
|
|
2,000
|
9.125% Senior Notes due 2017
|
|
|
9.125%
|
|
03/01/2017
|
|
|
1,000
|
8.375% Senior Notes due 2017
|
|
|
8.375%
|
|
08/15/2017
|
|
|
1,300
|
9% Guaranteed Notes due 2018
|
|
|
9.000%
|
|
11/15/2018
|
|
|
3,000
|
7% Guaranteed Notes due 2020
|
|
|
7.000%
|
|
03/01/2020
|
|
|
1,000
|
7% Senior Notes due 2020
|
|
|
7.000%
|
|
08/15/2020
|
|
|
1,500
|
11.5% Senior Notes due 2021
|
|
|
11.500%
|
|
11/15/2021
|
|
|
1,000
|
9.25% Debentures due 2022
|
|
|
9.250%
|
|
04/15/2022
|
|
|
200
|
6% Senior Notes due 2022
|
|
|
6.000%
|
|
11/15/2022
|
|
|
2,280
|
Sprint Communications, Inc.
|
|
|
|
|
|
|
|
14,080
|
|
|
|
|
|
|
|
|
Sprint Capital Corporation
|
|
|
|
|
|
|
|
6.9% Senior Notes due 2019
|
|
|
6.900%
|
|
05/01/2019
|
|
|
1,729
|
6.875% Senior Notes due 2028
|
|
|
6.875%
|
|
11/15/2028
|
|
|
2,475
|
8.75% Senior Notes due 2032
|
|
|
8.750%
|
|
03/15/2032
|
|
|
2,000
|
Sprint Capital Corporation
|
|
|
|
|
|
|
|
6,204
|
|
|
|
|
|
|
|
|
Clearwire Communications LLC
|
|
|
|
|
|
|
|
14.75% First-Priority Senior Secured Notes due 2016
|
|
|
14.750%
|
|
12/01/2016
|
|
|
300
|
8.25% Exchangeable Notes due 2040
|
|
|
8.250%
|
|
12/01/2040
|
|
|
629
|
Clearwire Communications LLC
|
|
|
|
|
|
|
|
929
|
|
|
|
|
|
|
|
|
Secured Equipment Credit Facilities
|
|
|
1.853% - 2.204%
|
|
2017 - 2022
|
|
|
610
|
|
|
|
|
|
|
|
|
Tower financing obligation
|
|
|
6.092%
|
|
09/30/2021
|
|
|
275
|
Capital lease obligations and other
|
|
|
|
|
2015 - 2023
|
|
|
127
|
TOTAL PRINCIPAL
|
|
|
|
|
|
|
|
32,725
|
|
|
|
|
|
|
|
|
Net premiums
|
|
|
|
|
|
|
|
1,106
|
TOTAL DEBT
|
|
|
|
|
|
|
$
|
33,831
|
|
|
|
|
|
|
|
|
|
NOTES TO THE FINANCIAL INFORMATION (Unaudited)
|
|
|
|
(1)
|
|
Financial results include a Predecessor period from January 1, 2012,
through the closing of the SoftBank transaction on July 10, 2013,
and a Successor period from October 5, 2012 through March 31, 2014.
In order to present financial results in a way that offers investors
a more meaningful calendar period-to-period comparison, we have
combined results of operations and cash flows for the Predecessor
and Successor periods for the twelve-month period ended March 31,
2014. (See Financial Measures for further information).
|
(2)
|
|
Postpaid connections on the Sprint platform are defined as retail
postpaid devices with an active line of service on the CDMA network,
including connections utilizing WiMax and LTE technology. Postpaid
connections previously on the Nextel platform are defined as retail
postpaid connections on the iDEN network, which was shut-down on
June 30, 2013. Postpaid connections from transactions are defined as
retail postpaid connections acquired from U.S. Cellular in May 2013
and Clearwire in July 2013 who had not deactivated or been
recaptured on the Sprint platform. Included in Sprint platform net
additions are tablets and connected devices, which generally
generate a significantly lower ARPU than other postpaid connections.
|
(3)
|
|
Prepaid connections on the Sprint platform are defined as retail
prepaid connections and session-based tablet users who utilize the
CDMA network and WiMax and LTE technology via our multi-brand
offerings. Prepaid connections previously on the Nextel platform are
defined as retail prepaid connections who utilized the iDEN network,
which was shut-down on June 30, 2013. Prepaid connections from
transactions are defined as retail prepaid connections acquired from
U.S. Cellular in May 2013 and Clearwire in July 2013 who had not
deactivated or been recaptured on the Sprint platform.
|
(4)
|
|
Nextel Connection Recaptures are defined as the number of
connections that deactivated service from the postpaid or prepaid
Nextel platform, as applicable, during each period but remained with
the Company as connections on the postpaid or prepaid Sprint
platform, respectively. Connections that deactivated service from
the Nextel platform and activated service on the Sprint platform are
included in the Sprint platform net additions for the applicable
period.
|
(5)
|
|
The Postpaid and Prepaid Nextel Recapture Rates are defined as the
portion of total connections that left the postpaid or prepaid
Nextel platform, as applicable, during the period and were retained
on the postpaid or prepaid Sprint platform, respectively.
|
(6)
|
|
For the third quarter of fiscal year 2014, impairment losses were
recorded after determining that the carrying value exceeded
estimated fair value of both the Sprint trade name and Wireline
asset group, which consists primarily of property, plant and
equipment.
|
(7)
|
|
Severance and exit costs are primarily associated with work force
reductions and exit costs associated with the Nextel platform and
access terminations and those related to exiting certain operations
of Clearwire.
|
(8)
|
|
For the third quarter of fiscal year 2014, litigation primarily
includes legal reserves and fees incurred in relation to various
pending legal suits and proceedings.
|
(9)
|
|
For the second and first quarters of fiscal year 2013, included in
selling, general and administrative expenses are fees paid to
unrelated parties necessary for the transactions with SoftBank and
our acquisition of Clearwire.
|
(10)
|
|
The partial pension settlement resulted from amounts paid to
eligible terminated participants who voluntarily elected to receive
lump sum distributions as a result of an approved plan amendment to
the Sprint Retirement Pension Plan by the Board of Directors in June
2014.
|
(11)
|
|
As a result of the U.S. Cellular asset acquisition, we recorded a
liability related to network shut-down costs we agreed to reimburse
U.S. Cellular. During the third quarter of fiscal year 2014, we
identified favorable trends in actual costs and, as a result,
reduced the liability resulting in a gain of approximately $41
million.
|
(12)
|
|
Hurricane Sandy amounts for the quarter-to-date December 31, 2013
period represent insurance recoveries.
|
|
|
|
*FINANCIAL MEASURES
On July 9, 2013, Sprint Communications, Inc. (formerly Sprint Nextel
Corporation) completed its acquisition of Clearwire. On July 10, 2013 we
consummated the SoftBank Merger with Starburst II, which immediately
changed its name to Sprint Corporation (now referred to as the Company
or Sprint). As a result of these transactions, the assets and
liabilities of Sprint Communications, Inc. and Clearwire were adjusted
to fair value on the respective closing dates. The Company's financial
statement presentations herein distinguish between a predecessor period
relating to Sprint Communications, Inc. for periods prior to the
SoftBank Merger (Predecessor) and a successor period (Successor). The
Successor information represents Sprint Corporation, which includes the
activity and accounts of Sprint Communications, Inc. as of and for the
three and twelve-month periods ended March 31, 2015 and the twelve-month
period ended March 31, 2014. The accounts and activity for the successor
periods from October 5, 2012 (date of inception) to December 31, 2012
and from January 1, 2013 to July 10, 2013 consist of the activity of
Starburst II prior to the close of the SoftBank Merger. The Predecessor
information contained herein represents the historical basis of
presentation for Sprint Communications, Inc. for all periods prior to
the SoftBank Merger date on July 10, 2013. As a result of the valuation
of assets acquired and liabilities assumed at fair value at the time of
the SoftBank Merger and Clearwire Acquisition, the financial statements
for the successor period are presented on a measurement basis different
than the predecessor period, which was Sprint Communication Inc.'s
historical cost, and are, therefore, not comparable.
In order to present financial results in a way that offers investors a
more meaningful calendar period-to-period comparison, we have combined
the current and prior year results of operations for the predecessor
with successor results of operations on an unaudited combined basis. The
combined information for the twelve-month period ended March 31, 2014
does not purport to represent what our consolidated results of
operations would have been if the acquisition had occurred as of April
1, 2013.
Sprint provides financial measures determined in accordance with GAAP
and adjusted GAAP (non-GAAP). The non-GAAP financial measures reflect
industry conventions, or standard measures of liquidity, profitability
or performance commonly used by the investment community for
comparability purposes. These measurements should be considered in
addition to, but not as a substitute for, financial information prepared
in accordance with GAAP. Other than the use of non-GAAP combined results
as described above, we have defined below each of the non-GAAP measures
we use, but these measures may not be synonymous to similar measurement
terms used by other companies.
Sprint provides reconciliations of these non-GAAP measures in its
financial reporting. Because Sprint does not predict special items that
might occur in the future, and our forecasts are developed at a level of
detail different than that used to prepare GAAP-based financial
measures, Sprint does not provide reconciliations to GAAP of its
forward-looking financial measures.
The measures used in this release include the following:
EBITDA is operating income/(loss) before depreciation and
amortization. Adjusted EBITDA is EBITDA excluding
severance, exit costs, and other special items. Adjusted EBITDA Margin
represents Adjusted EBITDA divided by non-equipment net operating
revenues for Wireless and Adjusted EBITDA divided by net operating
revenues for Wireline. We believe that Adjusted EBITDA and Adjusted
EBITDA Margin provide useful information to investors because they are
an indicator of the strength and performance of our ongoing business
operations. While depreciation and amortization are considered operating
costs under GAAP, these expenses primarily represent non-cash current
period costs associated with the use of long-lived tangible and
definite-lived intangible assets. Adjusted EBITDA and Adjusted EBITDA
Margin are calculations commonly used as a basis for investors, analysts
and credit rating agencies to evaluate and compare the periodic and
future operating performance and value of companies within the
telecommunications industry.
ABPU is average billings per user and calculated by dividing
service revenue earned from customers plus installment plan billings and
lease revenue by the sum of the average number of connections during the
period. We believe that ABPU provides useful information to investors,
analysts and our management to evaluate average Sprint platform postpaid
customer billings as it approximates the expected cash collections,
including installment plan billings and lease revenue, per user each
month.
Free Cash Flow is the cash provided by operating activities less
the cash used in investing activities other than short-term investments,
including changes in restricted cash, if any, and amounts included as
investments in Clearwire and Sprint Communications, Inc. during the
period, if applicable. We believe that Free Cash Flow provides useful
information to investors, analysts and our management about the cash
generated by our core operations after interest and dividends, if any,
and our ability to fund scheduled debt maturities and other financing
activities, including discretionary refinancing and retirement of debt
and purchase or sale of investments.
Net Debt is consolidated debt, including current maturities, less
cash and cash equivalents, short-term investments and, if any,
restricted cash. We believe that Net Debt provides useful information to
investors, analysts and credit rating agencies about the capacity of the
company to reduce the debt load and improve its capital structure.
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