RESTON, Va., May 10, 2017 /PRNewswire/ -- NII Holdings,
Inc. (NASDAQ: NIHD) today announced its financial results for the
first quarter of 2017. For the quarter, the Company generated
consolidated operating revenues of $251
million, consolidated adjusted OIBDA of $5 million and a consolidated operating loss of
$80 million. The Company's
consolidated adjusted OIBDA excludes the impact of non-cash asset
impairments, restructuring charges and other unusual items. Capital
expenditures were $9 million for the
quarter. The Company reported 3G net subscriber additions of 38,000
in the quarter, which were offset by 115,000 subscriber losses on
the Company's iDEN network.
"We had solid results to start off the year," said Steve Shindler, NII's Chief Executive Officer.
"We reported our fifth consecutive quarter of positive adjusted
OIBDA in Brazil and our second
consecutive quarter of more than 35,000 3G net subscriber
additions, resulting from a continued reduction in churn. We had a
slight drop in ARPU compared to last quarter primarily due to
increased customer credits, which we expect to continue to offer as
a retention tool."
Nextel Brazil's average monthly service revenue per subscriber
(ARPU) for the first quarter of 2017 was $21, a 31% increase on a reported basis, and a 5%
increase on a constant currency basis, compared to the same quarter
last year. Nextel Brazil's average monthly churn rate for the first
quarter of 2017 was 3.71%, a 63 basis point decrease compared to
the same quarter last year. Nextel Brazil's cost per gross addition
(CPGA) was $84 for the first quarter
of 2017, a $12 decrease on a reported
basis, and a 28% decrease on a constant currency basis, compared to
the same quarter last year. Nextel Brazil's cash cost per user
(CCPU) was $19 for the first quarter
of 2017, a $4 increase on a reported
basis, and a 1% decrease on a constant currency basis, compared to
the same quarter last year.
During the first quarter, the Company spent $118 million of cash and investments, primarily
related to $45 million of cash used
in operating activities (including approximately $30 million paid for interest and $19 million paid for annual spectrum license
fees), $28 million of cash used for
capital expenditures and $42 million
of cash for scheduled principal payments.
At quarter-end, the Company's sources of funding included
$213 million of cash and short-term
investments, $163 million of cash
held in escrow to secure indemnification obligations in connection
with the sale of Nextel Mexico and $92
million in cash pledged as collateral to secure certain
performance bonds in Brazil.
"We are making good progress working with our lenders to obtain
multiple years of principal amortization relief on our loans," said
Dan Freiman, NII's Chief Financial
Officer. "Our ongoing discussions reflect a common interest in
making the necessary modifications to our loan terms to allow
adequate time for us to continue to build the scale in our business
we need to generate free cash flow. We're optimistic that we will
reach an agreement with our lenders."
Additional details regarding the Company's results, including a
more detailed explanation on local currency operating metrics, are
included in the Company's Quarterly Report on Form 10-Q for the
three months ended March 31, 2017
that was filed with the Securities and Exchange Commission today.
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, modifications to loan
agreements, future funding or possible strategic transactions 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, the economic and regulatory
environment and the foreign currency exchange rates that will
prevail during the remainder of 2017. 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, our ability to
reach agreement with lenders on amendments to the terms of our
financing arrangements, the impact of more intense competitive
conditions and changes in economic conditions in Brazil, the performance of the Company's
networks, the Company's ability to provide services that customers
want or need, the ability of the Company to continue as a going
concern, the Company's ability to execute its business plan,
and the additional risks and uncertainties that are described in
NII Holdings' Annual Report on Form 10-K for the year ended
December 31, 2016, as well as in
other reports filed from time to time by NII Holdings with the
Securities and Exchange Commission. This press release speaks only
as of its date, and NII Holdings disclaims any duty to update the
information herein.
NII HOLDINGS, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
FOR THE THREE
MONTHS ENDED MARCH 31, 2017 AND 2016
|
(in millions,
except per share amounts)
|
|
|
Three Months
Ended
March 31,
|
|
Three Months
Ended
March 31,
|
|
2017
|
|
2016
|
|
(unaudited)
|
|
|
|
|
Operating
revenues
Service and
other revenues
|
$
|
243.5
|
|
|
$
|
220.6
|
|
Handset and
accessory revenues
|
7.5
|
|
|
5.9
|
|
|
251.0
|
|
|
226.5
|
|
Operating
expenses
Cost of
service (exclusive of depreciation and amortization
included below)
|
102.7
|
|
|
90.0
|
|
Cost of
handsets and accessories
|
8.7
|
|
|
11.2
|
|
Selling,
general and administrative
|
134.5
|
|
|
133.4
|
|
Impairment,
restructuring and other charges
|
71.9
|
|
|
5.9
|
|
Depreciation
|
8.9
|
|
|
30.1
|
|
Amortization
|
4.1
|
|
|
10.0
|
|
|
330.8
|
|
|
280.6
|
|
Operating
loss
|
(79.8)
|
|
|
(54.1)
|
|
Other (expense)
income
Interest
expense, net
|
(31.6)
|
|
|
(25.2)
|
|
Interest
income
|
9.1
|
|
|
9.7
|
|
Foreign
currency transaction gains, net
|
11.4
|
|
|
39.7
|
|
Other expense
net
|
(1.8)
|
|
|
(2.5)
|
|
|
(12.9)
|
|
|
21.7
|
|
Loss from
continuing operations before reorganization items and income tax
provision
|
(92.7)
|
|
|
(32.4)
|
|
Reorganization
items
|
—
|
|
|
(0.4)
|
|
Income tax
benefit
|
—
|
|
|
—
|
|
Net loss from
continuing operations
|
(92.7)
|
|
|
(32.8)
|
|
Net loss from
discontinued operations, net of income taxes
|
—
|
|
|
(3.8)
|
|
Net
loss
|
$
|
(92.7)
|
|
|
$
|
(36.6)
|
|
|
|
|
|
Net loss from
continuing operations per common share, basic and
diluted
|
$
|
(0.92)
|
|
|
$
|
(0.33)
|
|
Net loss from
discontinued operations per common share, basic and
diluted
|
—
|
|
|
(0.04)
|
|
Net loss per
common share, basic and diluted
|
$
|
(0.92)
|
|
|
$
|
(0.37)
|
|
|
|
|
|
Weighted average
number of common shares outstanding, basic and
diluted
|
100.3
|
|
|
100.0
|
|
CONSOLIDATED
BALANCE SHEETS
|
(in millions,
except par values)
|
|
|
March 31,
2017
|
|
December 31,
2016
|
|
|
|
|
ASSETS
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
200.8
|
|
|
$
|
257.4
|
|
Short-term
investments
|
12.4
|
|
|
73.9
|
|
Accounts receivable,
net of allowance for doubtful accounts of $55.7 and
$39.0
|
159.6
|
|
|
153.8
|
|
Handset and accessory
inventory
|
6.6
|
|
|
8.3
|
|
Prepaid expenses and
other
|
290.4
|
|
|
280.1
|
|
Total current
assets
|
669.8
|
|
|
773.5
|
|
Property, plant
and equipment, net
|
107.6
|
|
|
129.5
|
|
Intangible assets,
net
|
203.4
|
|
|
243.7
|
|
Other
assets
|
295.2
|
|
|
271.8
|
|
Total
assets
|
$
|
1,276.0
|
|
|
$
|
1,418.5
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
59.8
|
|
|
$
|
69.2
|
|
Accrued expenses and
other
|
249.2
|
|
|
271.9
|
|
Deferred
revenues
|
7.9
|
|
|
11.6
|
|
Current portion of
long-term debt
|
506.3
|
|
|
540.5
|
|
Total current
liabilities
|
823.2
|
|
|
893.2
|
|
Long-term
debt
|
218.8
|
|
|
215.8
|
|
Other long-term
liabilities
|
166.7
|
|
|
143.5
|
|
Total
liabilities
|
1,208.7
|
|
|
1,252.5
|
|
Stockholders'
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, 100.3 shares issued and
outstanding — 2017, 100.3 shares issued and
outstanding — 2016
|
0.1
|
|
|
0.1
|
|
Paid-in
capital
|
2,078.2
|
|
|
2,076.6
|
|
Accumulated
deficit
|
(1,927.5)
|
|
|
(1,834.8)
|
|
Accumulated other
comprehensive loss
|
(83.5)
|
|
|
(75.9)
|
|
Total stockholders'
equity
|
67.3
|
|
|
166.0
|
|
Total liabilities and
stockholders' equity
|
$
|
1,276.0
|
|
|
$
|
1,418.5
|
|
CONSOLIDATED CASH
FLOW DATA
|
(in
millions)
|
|
|
Three Months
Ended
March 31,
|
|
Three Months
Ended
March 31,
|
|
2017
|
|
2016
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
$
|
257.4
|
|
|
$
|
342.2
|
|
Net cash used in
operating activities
|
(45.3)
|
|
|
(18.2)
|
|
Net cash provided by
investing activities
|
32.0
|
|
|
33.7
|
|
Net cash used in
financing activities
|
(43.1)
|
|
|
(24.7)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(0.2)
|
|
|
(0.3)
|
|
Cash and cash
equivalents, end of period
|
$
|
200.8
|
|
|
$
|
332.7
|
|
NII HOLDINGS, INC.
AND SUBSIDIARIES
|
OPERATING RESULTS
AND METRICS
|
FOR THE THREE
MONTHS ENDED MARCH 31, 2017 AND 2016 (1)
|
(UNAUDITED)
|
|
Nextel
Brazil
|
(dollars in
millions, except ARPU and CPGA, and subscribers in
thousands)
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2017
|
|
2016
|
|
Service and other
revenues
|
$
|
243.5
|
|
|
$
|
220.5
|
|
|
|
|
|
|
|
Handset and accessory
revenues
|
7.5
|
|
|
6.0
|
|
|
Cost of handsets and
accessories
|
(8.7)
|
|
|
(11.2)
|
|
|
Handset and accessory
net subsidy
|
(1.2)
|
|
|
(5.2)
|
|
|
Cost of service
(exclusive of depreciation and amortization)
|
(102.7)
|
|
|
(90.0)
|
|
|
Selling, general and
administrative
|
(127.2)
|
|
|
(121.5)
|
|
|
Adjusted operating
income before depreciation and amortization
|
$
|
12.4
|
|
|
$
|
3.8
|
|
|
|
|
|
|
|
Subscriber
units
|
|
|
|
|
iDEN
|
686.3
|
|
|
1,315.1
|
|
|
WCDMA
|
2,874.6
|
|
|
2,708.7
|
|
|
Total
subscriber units in commercial service (as of March
31)
|
3,560.9
|
|
|
4,023.8
|
|
|
|
|
|
|
|
iDEN net subscriber
losses
|
(115.4)
|
|
|
(195.2)
|
|
|
WCDMA net subscriber
additions (losses)
|
38.4
|
|
|
(77.7)
|
|
|
Total
net subscriber losses
|
(77.0)
|
|
|
(272.9)
|
|
|
|
|
|
|
|
Migrations from
iDEN to WCDMA
|
21.0
|
|
|
41.7
|
|
|
|
|
|
|
|
iDEN subscriber
churn
|
5.52
|
%
|
|
4.80
|
%
|
|
WCDMA subscriber
churn
|
3.23
|
%
|
|
4.10
|
%
|
|
Churn
(%)
|
3.71
|
%
|
|
4.34
|
%
|
|
|
|
|
|
|
ARPU
(1)
|
$
|
21
|
|
|
$
|
16
|
|
|
|
|
|
|
|
CPGA
(1)
|
$
|
84
|
|
|
$
|
96
|
|
|
|
|
|
|
|
CCPU
(1)
|
$
|
19
|
|
|
$
|
15
|
|
|
|
(1) For
information regarding ARPU, CPGA and CCPU, see "Non-GAAP
Reconciliations for the Three Months Ended March 31, 2017 and 2016"
included in this release.
|
NON-GAAP RECONCILIATIONS
FOR THE
THREE MONTHS ENDED MARCH 31, 2017
AND
THE THREE MONTHS ENDED MARCH
31, 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 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
March
31,
|
|
2017
|
|
2016
|
Consolidated
operating loss
|
$
|
(79.8)
|
|
|
$
|
(54.1)
|
|
Consolidated
depreciation
|
8.9
|
|
|
30.1
|
|
Consolidated
amortization
|
4.1
|
|
|
10.0
|
|
Consolidated
OIBDA
|
(66.8)
|
|
|
(14.0)
|
|
Asset impairment
charges
|
68.3
|
|
|
1.0
|
|
Restructuring
charges
|
3.6
|
|
|
4.9
|
|
Consolidated adjusted
OIBDA
|
$
|
5.1
|
|
|
$
|
(8.1)
|
|
|
|
|
|
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
March 31,
|
|
|
2017
|
|
2016
|
|
|
US$
|
|
Service and other
revenues
|
$
|
243.5
|
|
|
$
|
220.5
|
|
|
Less: other
revenues
|
(20.4)
|
|
|
(23.5)
|
|
|
Total subscriber
revenues
|
$
|
223.1
|
|
|
$
|
197.0
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
calculated with subscriber revenues
|
$
|
21
|
|
|
$
|
16
|
|
|
|
|
|
|
|
ARPU
calculated with service and other revenues
|
$
|
22
|
|
|
$
|
18
|
|
|
|
|
|
|
|
|
Nextel
Brazil
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2017
|
|
2016
|
|
|
BRL
R$
|
|
Service and other
revenues
|
$
|
765.2
|
|
|
$
|
862.1
|
|
|
Less: other
revenues
|
(64.2)
|
|
|
(91.9)
|
|
|
Total subscriber
revenues
|
$
|
701.0
|
|
|
$
|
770.2
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU
calculated with subscriber revenues
|
$
|
65
|
|
|
$
|
62
|
|
|
|
|
|
|
|
ARPU
calculated with service and other revenues
|
$
|
71
|
|
|
$
|
69
|
|
|
|
|
|
|
|
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
March 31,
|
|
|
2017
|
|
2016
|
|
|
US$
|
|
Consolidated handset
and accessory revenues
|
$
|
7.5
|
|
|
$
|
6.0
|
|
|
Less: consolidated
uninsured handset replacement revenues
|
—
|
|
|
(0.1)
|
|
|
Consolidated handset
and accessory revenues, net
|
7.5
|
|
|
5.9
|
|
|
Less: consolidated
cost of handsets and accessories
|
8.7
|
|
|
11.2
|
|
|
Consolidated handset subsidy costs
|
1.2
|
|
|
5.3
|
|
|
Consolidated selling
and marketing
|
27.2
|
|
|
22.1
|
|
|
Costs per statement
of operations
|
28.4
|
|
|
27.4
|
|
|
Less: consolidated
costs unrelated to initial customer
acquisition
|
(1.2)
|
|
|
(1.6)
|
|
|
Customer acquisition costs
|
$
|
27.2
|
|
|
$
|
25.8
|
|
|
|
|
|
|
|
Cost per Gross
Add
|
$
|
84
|
|
|
$
|
96
|
|
|
|
|
|
|
|
|
Nextel
Brazil
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2017
|
|
2016
|
|
|
BRL
R$
|
|
Consolidated handset
and accessory revenues
|
$
|
23.4
|
|
|
$
|
23.2
|
|
|
Less: consolidated
uninsured handset replacement revenues
|
(0.1)
|
|
|
(0.5)
|
|
|
Consolidated handset
and accessory revenues, net
|
23.3
|
|
|
22.7
|
|
|
Less: consolidated
cost of handsets and accessories
|
27.2
|
|
|
43.0
|
|
|
Consolidated handset subsidy costs
|
3.9
|
|
|
20.3
|
|
|
Consolidated selling
and marketing
|
85.4
|
|
|
85.5
|
|
|
Costs per statement
of operations
|
89.3
|
|
|
105.8
|
|
|
Less: consolidated
costs unrelated to initial customer
acquisition
|
(3.7)
|
|
|
(6.1)
|
|
|
Customer acquisition costs
|
$
|
85.6
|
|
|
$
|
99.7
|
|
|
|
|
|
|
|
Cost per Gross
Add
|
$
|
264
|
|
|
$
|
369
|
|
|
|
|
|
|
|
Cash Cost per Handset/User
Cash cost per handset/unit, or CCPU, represents the sum of cost
of service, general and administrative expenses and customer
retention and other costs divided by average handsets in service
during the period and divided by the number of months in the
period. CCPU is not a measurement under accounting principles
generally accepted in the United
States, may not be similar to CCPU measures of other
companies and should not be considered in addition to, but not as a
substitute for, the information contained in our statements of
operations. We believe CCPU is a measure of the recurring
costs we incur on a monthly basis to provide service to our
subscribers. The CCPU calculation excludes material asset
impairments, severance costs associated with publicly announced
restructuring plans and other material non-recurring or unusual
charges and is calculated as follows (in thousands, except
CCPU):
Nextel
Brazil
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2017
|
|
2016
|
|
|
US$
|
|
Total selling,
general and administrative expenses
|
$
|
127.2
|
|
|
$
|
121.5
|
|
|
Less: selling and
marketing expenses
|
(27.2)
|
|
|
(22.1)
|
|
|
General and
administrative expenses
|
100.0
|
|
|
99.4
|
|
|
Cost of
service
|
102.7
|
|
|
90.0
|
|
|
Customer retention
costs and other
|
1.2
|
|
|
1.6
|
|
|
Total
|
$
|
203.9
|
|
|
$
|
191.0
|
|
|
|
|
|
|
|
Cash Cost per
User
|
$
|
19
|
|
|
$
|
15
|
|
|
|
|
|
|
|
|
Nextel
Brazil
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2017
|
|
2016
|
|
|
BRL
R$
|
|
Total selling,
general and administrative expenses
|
$
|
399.6
|
|
|
$
|
472.6
|
|
|
Less: selling and
marketing expenses
|
(85.4)
|
|
|
(85.5)
|
|
|
General and
administrative expenses
|
314.2
|
|
|
387.1
|
|
|
Cost of
service
|
322.7
|
|
|
351.2
|
|
|
Customer retention
costs and other
|
3.7
|
|
|
6.1
|
|
|
Total
|
$
|
640.6
|
|
|
$
|
744.4
|
|
|
|
|
|
|
|
Cash Cost per
User
|
$
|
59
|
|
|
$
|
60
|
|
|
|
|
|
|
|
Impact of Foreign Currency Fluctuations
The following table shows the impact of changes in foreign
currency exchange rates on certain financial measures for the three
months ended March 31, 2016 compared
to the same period in 2017 by (i) adjusting the relevant measures
for the three months ended March 31,
2016 to levels that would have resulted if the average
foreign currency exchange rates for the three months ended
March 31, 2016 were the same as the
average foreign currency exchange rates that were in effect for the
three months ended March 31, 2017;
and (ii) comparing the actual and adjusted financial measures for
the three months ended March 31, 2016
to the similar financial measures for the three months ended
March 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 ended March 31, 2017 and 2016. The average foreign
currency exchange rates for each of the relevant currencies during
each of the three months ended March 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 ended March 31, 2017 compared to the same period 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)
|
|
|
|
|
|
|
|
|
|
Successor
Company
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
1Q 2016
Actual
|
1Q 2016 Adjustment
(1)
|
1Q 2016 Normalized
(1)
|
|
1Q 2017
Actual
|
1Q 2016
to 1Q 2017 Actual B(W) Growth (2)
|
1Q 2016
to 1Q 2017 Normalized B(W) Growth (3)
|
|
|
|
|
|
|
|
|
Consolidated:
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
226,557
|
|
$
|
56,303
|
|
$
|
282,860
|
|
|
$
|
250,955
|
|
11%
|
(11)%
|
Adjusted
OIBDA
|
(8,044)
|
|
935
|
|
(7,109)
|
|
|
5,115
|
|
164%
|
172%
|
Nextel
Brazil:
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
226,503
|
|
$
|
56,303
|
|
$
|
282,806
|
|
|
$
|
250,925
|
|
11%
|
(11)%
|
Adjusted
OIBDA
|
3,760
|
|
935
|
|
4,695
|
|
|
12,373
|
|
229%
|
164%
|
|
|
|
|
(1)
|
The "1Q 2016
Normalized" amounts reflect the impact of applying the average
foreign currency exchange rates for the three months ended March
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 ended March 31, 2016. The amounts
included under the column "1Q 2016 Normalized" reflect the amount
determined by adding the "1Q 2016 Adjustment" amounts calculated as
described in the preceding sentence to the "1Q 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 ended March 31, 2017. The average foreign
currency exchange rates for each of the relevant currencies during
the three months ended March 31, 2017 and 2016 for purposes of
these calculations were as follows:
|
|
|
|
|
|
|
Three Months
Ended March 31,
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
Brazilian
real
|
3.13
|
|
3.91
|
|
|
|
|
|
|
|
|
(2)
|
The percentage
amounts in these columns reflect the growth rates for each of the
financial measures comparing the amounts in the "1Q 2017 Actual"
columns with those in the "1Q 2016 Actual" columns.
|
|
|
|
|
(3)
|
The percentage
amounts in these columns reflect the growth rates for each of the
financial measures comparing the amounts in the "1Q 2017 Actual"
columns with those in the "1Q 2016 Normalized" columns.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nii-holdings-reports-2017-first-quarter-results-300454847.html
SOURCE NII Holdings, Inc.