RESTON, Va., May 8, 2018 /PRNewswire/ -- NII Holdings,
Inc. [NASDAQ: NIHD] today announced its financial results for the
first quarter of 2018. For the quarter, the Company generated
consolidated operating revenues of $181
million, a consolidated operating loss of $14 million and consolidated adjusted OIBDA loss
of $8 million. The Company's
consolidated adjusted OIBDA excludes the impact of non-cash asset
impairments, restructuring charges and other unusual items. Capital
expenditures were $8 million for the
quarter.
For the first quarter of 2018, Nextel Brazil reported a
significant improvement in its 3G/4G subscriber results, with
92,900 net subscriber additions, a 66,100 subscriber increase
compared to the fourth quarter of 2017 and the highest level of
3G/4G net adds in over two years. In addition, 3G/4G churn for the
first quarter was 2.37%, a 110-basis point decrease compared to the
fourth quarter of 2017 and the lowest level of 3G/4G churn in over
three years. Subscriber migrations from its iDEN network to its
3G/4G network were 34,800, an 11,300 subscriber increase compared
to the fourth quarter of 2017.
"We were pleased with our subscriber results this quarter.
Through our continuing efforts to provide the best experience to
our customers, we were able to further reduce 3G/4G churn to 2.37%,
resulting in 93 thousand 3G/4G net adds for the quarter," said
Roberto Rittes, Chief Executive Officer of Nextel Brazil. "Many of
our key performance indicators continued to improve, including our
net promoter score, which, according to our own research, increased
to 33 points as of April, tied for the highest level among mobile
operators in Brazil. In terms of
our financial results, we managed to limit our adjusted OIBDA loss
to $8 million for the first quarter.
Looking ahead, we will continue to focus on generating healthy
subscriber growth on our 3G/4G platform. We expect the shutdown of
our iDEN network in the second quarter will have some impact on our
results, but we remain on track to meet our guidance for the
year."
For the first quarter, Nextel Brazil's average monthly service
revenue per subscriber (ARPU) was $17, cost per gross addition (CPGA) was
$77 and cash cost per user (CCPU) was
$16.
At quarter-end, NII Holdings' sources of funding totaled
$297 million, including $187 million of unrestricted cash and short-term
investments and $110 million of cash
held in escrow to secure indemnification obligations in connection
with the sale of Nextel Mexico.
"Our first quarter results marked a turning point for us in
several ways. We returned to total subscriber growth for the first
time in over two years and grew 3G/4G revenues for the first time
in four quarters," said Dan Freiman,
Chief Financial Officer of NII Holdings. "While growth is
important, we are continuing to looks for ways to reduce costs
across the Company without impacting our ability to deliver high
quality customer service."
On January 1, 2018, the Company
implemented Accounting Standards Codification No. 606, "Revenue
from Contracts with Customers," which reduced the Company's
operating revenue and selling, general and administrative expenses
for the first quarter of 2018 by $4
million and $6 million,
respectively.
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, 2018
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
mobile communication services for individual consumers who use our
services to meet both professional and personal needs in
Brazil. NII Holdings, operating
under the Nextel brand, offers fully integrated wireless
communication tools with digital cellular voice services, data
services, international voice and data roaming services and other
value-added services. Visit NII Holdings' 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
market's news center: 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, as well as other
statements that are not historical facts, are forward-looking
statements. Forward-looking statements are estimates and
projections reflecting management's judgment based on currently
available information and involve a number of risks and
uncertainties that could cause actual results to differ materially
from those suggested by the forward-looking statements. With
respect to these forward-looking statements, management has made
assumptions regarding, among other things, the Company's ability to
fund the business and meet its business plans, customer growth and
retention, pricing, network usage, operating costs, the timing of
various events, ice group's minority ownership in the Company, the
economic and regulatory environment and the foreign currency
exchange rates that will prevail during the remainder of 2018.
Future performance cannot be assured and actual results may differ
materially from those in the forward-looking statements. Some
factors that could cause actual results to differ include the risks
and uncertainties relating to: the impact of liquidity constraints,
including the inability to access escrowed funds when expected, the
impact of more intense competitive conditions and changes in
economic conditions in Brazil, the
performance of the Company's networks, the Company's ability to
provide services that customers want or need, the Company's ability
to execute its business plan, and the additional risks and
uncertainties that are described in NII Holdings' Annual Report on
Form 10-K for the year ended December 31,
2017, as well as in other reports filed from time to time by
NII Holdings with the Securities and Exchange Commission. This
press release speaks only as of its date, and the Company disclaims
any duty to update the information herein.
NII HOLDINGS, INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
FOR THE THREE
MONTHS ENDED MARCH 31, 2018 AND 2017
(in millions,
except per share amounts)
|
|
|
Three Months
Ended
March 31,
|
|
Three Months
Ended
March 31,
|
|
2018
|
|
2017
|
|
(unaudited)
|
|
|
|
|
Operating
revenues
Service and
other revenues
|
$
|
176.0
|
|
|
$
|
243.5
|
|
Handset and
accessory revenues
|
5.0
|
|
|
7.5
|
|
|
181.0
|
|
|
251.0
|
|
Operating
expenses
Cost of
service (exclusive of depreciation and amortization
included below)
|
88.9
|
|
|
102.7
|
|
Cost of
handsets and accessories
|
9.1
|
|
|
8.7
|
|
Selling,
general and administrative
|
90.9
|
|
|
134.5
|
|
Impairment,
restructuring and other (benefits) charges, net
|
(1.8)
|
|
|
71.9
|
|
Depreciation
|
4.8
|
|
|
8.9
|
|
Amortization
|
3.6
|
|
|
4.1
|
|
|
195.5
|
|
|
330.8
|
|
Operating
loss
|
(14.5)
|
|
|
(79.8)
|
|
Other (expense)
income
Interest
expense, net
|
(26.6)
|
|
|
(31.6)
|
|
Interest
income
|
5.4
|
|
|
9.1
|
|
Foreign
currency transaction (losses) gains, net
|
(1.2)
|
|
|
11.4
|
|
Other expense,
net
|
(6.3)
|
|
|
(1.8)
|
|
|
(28.7)
|
|
|
(12.9)
|
|
Loss from
continuing operations before income taxes
|
(43.2)
|
|
|
(92.7)
|
|
Income
taxes
|
—
|
|
|
—
|
|
Net loss from
continuing operations
|
(43.2)
|
|
|
(92.7)
|
|
Net loss from
discontinued operations, net of income taxes
|
(0.1)
|
|
|
—
|
|
Net
loss
|
(43.3)
|
|
|
(92.7)
|
|
Net loss
attributable to noncontrolling interest
|
(11.6)
|
|
|
—
|
|
Net loss
attributable to NII Holdings
|
$
|
(31.7)
|
|
|
$
|
(92.7)
|
|
|
|
|
|
Net loss from
continuing operations per common share, basic and
diluted
|
$
|
(0.43)
|
|
|
$
|
(0.92)
|
|
Net loss from
discontinued operations per common share, basic and
diluted
|
—
|
|
|
—
|
|
Net loss per
common share, basic and diluted
|
$
|
(0.43)
|
|
|
$
|
(0.92)
|
|
|
|
|
|
Weighted average
number of common shares outstanding, basic and
diluted
|
100.4
|
|
|
100.3
|
|
CONSOLIDATED
BALANCE SHEETS
(in millions,
except par values)
|
|
|
March 31,
2018
|
|
December 31,
2017
|
|
(unaudited)
|
|
|
|
|
|
|
ASSETS
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
136.3
|
|
|
$
|
193.9
|
|
Short-term
investments
|
50.3
|
|
|
16.7
|
|
Accounts receivable,
net of allowance for doubtful accounts of $31.5 and
$42.0
|
109.5
|
|
|
106.7
|
|
Handset and accessory
inventory
|
5.0
|
|
|
3.1
|
|
Prepaid expenses and
other
|
237.0
|
|
|
254.5
|
|
Total current
assets
|
538.1
|
|
|
574.9
|
|
Property, plant
and equipment, net
|
119.8
|
|
|
117.3
|
|
Intangible assets,
net
|
206.8
|
|
|
194.7
|
|
Other
assets
|
256.8
|
|
|
218.2
|
|
Total
assets
|
$
|
1,121.5
|
|
|
$
|
1,105.1
|
|
LIABILITIES AND
STOCKHOLDERS' DEFICIT
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
51.3
|
|
|
$
|
42.3
|
|
Accrued expenses and
other
|
309.3
|
|
|
308.1
|
|
Current portion of
long-term debt
|
5.8
|
|
|
8.0
|
|
Total current
liabilities
|
366.4
|
|
|
358.4
|
|
Long-term
debt
|
639.6
|
|
|
647.7
|
|
Other long-term
liabilities
|
229.1
|
|
|
220.9
|
|
Total
liabilities
|
1,235.1
|
|
|
1,227.0
|
|
Stockholders'
deficit
|
|
|
|
Undesignated
preferred stock, par value $0.001, 10.0 shares authorized, no
shares
issued or
outstanding
|
—
|
|
|
—
|
|
Common stock, par
value $0.001, 140.0 shares authorized, 100.4 shares
issued and outstanding — 2018 and 2017
|
0.1
|
|
|
0.1
|
|
Paid-in
capital
|
2,139.9
|
|
|
2,139.3
|
|
Accumulated
deficit
|
(2,133.4)
|
|
|
(2,135.8)
|
|
Accumulated other
comprehensive loss
|
(45.3)
|
|
|
(46.9)
|
|
Total stockholders'
deficit
|
(38.7)
|
|
|
(43.3)
|
|
Noncontrolling
interest
|
(74.9)
|
|
|
(78.6)
|
|
Total
deficit
|
(113.6)
|
|
|
(121.9)
|
|
Total liabilities and
stockholders' deficit
|
$
|
1,121.5
|
|
|
$
|
1,105.1
|
|
CONSOLIDATED CASH
FLOW DATA
(in
millions)
|
|
|
Three Months
Ended March 31,
|
|
Three Months
Ended March 31,
|
|
2018
|
|
2017
|
|
(unaudited)
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
$
|
305.8
|
|
|
$
|
422.2
|
|
Net cash used in
operating activities
|
(44.7)
|
|
|
(44.6)
|
|
Net cash (used in)
provided by investing activities
|
(6.2)
|
|
|
32.0
|
|
Net cash used in
financing activities
|
(6.7)
|
|
|
(43.1)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
0.7
|
|
|
(0.1)
|
|
Cash and cash
equivalents, end of period
|
$
|
248.9
|
|
|
$
|
366.4
|
|
NII HOLDINGS, INC.
AND SUBSIDIARIES
OPERATING RESULTS
AND METRICS
FOR THE THREE
MONTHS ENDED MARCH 31, 2018 AND 2017 (1)
(UNAUDITED)
|
|
Nextel
Brazil
|
(dollars in
millions, except ARPU and CPGA, and subscribers in
thousands)
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
2018
|
|
2017
|
Service and other
revenues
|
$
|
176.0
|
|
|
$
|
243.5
|
|
|
|
|
|
Handset and accessory
revenues
|
5.0
|
|
|
7.5
|
|
Cost of handsets and
accessories
|
(9.1)
|
|
|
(8.7)
|
|
Handset and accessory
net subsidy
|
(4.1)
|
|
|
(1.2)
|
|
Cost of service
(exclusive of depreciation and amortization)
|
(88.9)
|
|
|
(102.7)
|
|
Selling, general and
administrative
|
(86.6)
|
|
|
(127.2)
|
|
Adjusted operating
(loss) income before depreciation and
amortization
|
$
|
(3.6)
|
|
|
$
|
12.4
|
|
|
|
|
|
Subscriber
units
|
|
|
|
iDEN
|
230.4
|
|
|
686.3
|
|
WCDMA
|
3,023.8
|
|
|
2,874.6
|
|
Total
subscriber units in commercial service (as of March
31)
|
3,254.2
|
|
|
3,560.9
|
|
|
|
|
|
iDEN net subscriber
losses
|
(84.4)
|
|
|
(115.4)
|
|
WCDMA net subscriber
additions
|
92.9
|
|
|
38.4
|
|
Total
net subscriber additions (losses)
|
8.5
|
|
|
(77.0)
|
|
|
|
|
|
Migrations from
iDEN to WCDMA
|
34.8
|
|
|
21.0
|
|
|
|
|
|
iDEN subscriber
churn
|
9.67
|
%
|
|
5.52
|
%
|
WCDMA subscriber
churn
|
2.37
|
%
|
|
3.23
|
%
|
Churn
(%)
|
3.02
|
%
|
|
3.71
|
%
|
|
|
|
|
ARPU
(1)
|
$
|
17
|
|
|
$
|
21
|
|
|
|
|
|
CPGA
(1)
|
$
|
77
|
|
|
$
|
84
|
|
|
|
|
|
CCPU
(1)
|
$
|
16
|
|
|
$
|
19
|
|
|
|
(1)
|
For information
regarding ARPU, CPGA and CCPU, see "Non-GAAP Reconciliations for
the Three Months Ended March 31, 2018 and 2017" included in this
release.
|
NON-GAAP
RECONCILIATIONS
FOR THE THREE
MONTHS ENDED MARCH 31, 2018 AND 2017
(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,
|
|
2018
|
|
2017
|
Consolidated
operating loss
|
$
|
(14.5)
|
|
|
$
|
(79.8)
|
|
Consolidated
depreciation
|
4.8
|
|
|
8.9
|
|
Consolidated
amortization
|
3.6
|
|
|
4.1
|
|
Consolidated
operating loss before depreciation
and amortization
|
(6.1)
|
|
|
(66.8)
|
|
Asset impairment
charges
|
0.7
|
|
|
68.3
|
|
Restructuring
(benefits) charges
|
(2.5)
|
|
|
3.6
|
|
Consolidated adjusted
operating (loss) income
before depreciation and amortization
|
$
|
(7.9)
|
|
|
$
|
5.1
|
|
|
|
|
|
|
|
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,
|
|
2018
|
|
2017
|
|
US$
|
Service and other
revenues
|
$
|
176.0
|
|
|
$
|
243.5
|
|
Less: other
revenues
|
(6.5)
|
|
|
(20.4)
|
|
Total subscriber
revenues
|
$
|
169.5
|
|
|
$
|
223.1
|
|
|
|
|
|
|
|
|
|
ARPU
calculated with subscriber revenues
|
$
|
17
|
|
|
$
|
21
|
|
|
|
|
|
ARPU
calculated with service and other revenues
|
$
|
18
|
|
|
$
|
22
|
|
|
|
|
|
|
|
Nextel
Brazil
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
2018
|
|
2017
|
|
BRL
R$
|
Service and other
revenues
|
$
|
570.4
|
|
|
$
|
765.2
|
|
Less: other
revenues
|
(20.6)
|
|
|
(64.2)
|
|
Total subscriber
revenues
|
$
|
549.8
|
|
|
$
|
701.0
|
|
|
|
|
|
|
|
|
|
ARPU
calculated with subscriber revenues
|
$
|
56
|
|
|
$
|
65
|
|
|
|
|
|
ARPU
calculated with service and other revenues
|
$
|
59
|
|
|
$
|
71
|
|
|
|
|
|
|
|
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,
|
|
2018
|
|
2017
|
|
US$
|
Handset and accessory
revenues
|
$
|
5.0
|
|
|
$
|
7.5
|
|
Less: uninsured
handset replacement revenues
|
—
|
|
|
—
|
|
Handset and accessory
revenues, net
|
5.0
|
|
|
7.5
|
|
Less: cost of
handsets and accessories
|
9.1
|
|
|
8.7
|
|
Handset subsidy costs
|
4.1
|
|
|
1.2
|
|
Selling and marketing
*
|
21.2
|
|
|
27.2
|
|
Costs per statement
of operations
|
25.3
|
|
|
28.4
|
|
Less: costs unrelated
to initial customer acquisition
|
(1.9)
|
|
|
(1.2)
|
|
Customer acquisition costs
|
$
|
23.4
|
|
|
$
|
27.2
|
|
|
|
|
|
Cost per Gross
Add
|
$
|
77
|
|
|
$
|
84
|
|
|
|
|
|
|
|
Nextel
Brazil
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
2018
|
|
2017
|
|
BRL
R$
|
Handset and accessory
revenues
|
$
|
16.4
|
|
|
$
|
23.4
|
|
Less: uninsured
handset replacement revenues
|
(0.2)
|
|
|
(0.1)
|
|
Handset and accessory
revenues, net
|
16.2
|
|
|
23.3
|
|
Less: cost of
handsets and accessories
|
29.4
|
|
|
27.2
|
|
Handset subsidy costs
|
13.2
|
|
|
3.9
|
|
Selling and marketing
*
|
69.0
|
|
|
85.4
|
|
Costs per statement
of operations
|
82.2
|
|
|
89.3
|
|
Less: costs unrelated
to initial customer acquisition
|
(6.4)
|
|
|
(3.7)
|
|
Customer acquisition costs
|
$
|
75.8
|
|
|
$
|
85.6
|
|
|
|
|
|
Cost per Gross
Add
|
$
|
250
|
|
|
$
|
264
|
|
|
|
|
|
|
* The adoption of
Accounting Standards Codification, or ASC, No. 606, resulted in the
capitalization of both direct and indirect commissions beginning on
January 1, 2018 compared to the expensing of these types of
commissions during the first quarter of 2017, which resulted in a
decrease in selling and marketing expenses from the first quarter
of 2017 to the first quarter of 2018
|
|
|
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,
|
|
2018
|
|
2017
|
|
US$
|
Total selling,
general and administrative expenses
|
$
|
86.6
|
|
|
$
|
127.2
|
|
Less: selling and
marketing expenses *
|
(21.2)
|
|
|
(27.2)
|
|
General and
administrative expenses
|
65.4
|
|
|
100.0
|
|
Cost of
service
|
88.9
|
|
|
102.7
|
|
Customer retention
costs and other
|
1.9
|
|
|
1.2
|
|
Total
|
$
|
156.2
|
|
|
$
|
203.9
|
|
|
|
|
|
Cash Cost per
User
|
$
|
16
|
|
|
$
|
19
|
|
|
|
|
|
|
|
Nextel
Brazil
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
2018
|
|
2017
|
|
BRL
R$
|
Total selling,
general and administrative expenses
|
$
|
281.0
|
|
|
$
|
399.6
|
|
Less: selling and
marketing expenses *
|
(69.0)
|
|
|
(85.4)
|
|
General and
administrative expenses
|
212.0
|
|
|
314.2
|
|
Cost of
service
|
288.4
|
|
|
322.7
|
|
Customer retention
costs and other
|
6.4
|
|
|
3.7
|
|
Total
|
$
|
506.8
|
|
|
$
|
640.6
|
|
|
|
|
|
Cash Cost per
User
|
$
|
52
|
|
|
$
|
59
|
|
|
|
|
|
* The adoption of
Accounting Standards Codification, or ASC, No. 606, resulted in the
capitalization of both direct and indirect commissions beginning on
January 1, 2018 compared to the expensing of these types of
commissions during the first quarter of 2017, which resulted in a
decrease in selling and marketing expenses from the first quarter
of 2017 to the first quarter of 2018
|
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,
2017 compared to the same period in 2018 by (i) adjusting the
relevant measures for the three months ended March 31, 2017 to
levels that would have resulted if the average foreign currency
exchange rates for the three months ended March 31, 2017 were the
same as the average foreign currency exchange rates that were in
effect for the three months ended March 31, 2018; and (ii)
comparing the actual and adjusted financial measures for the three
months ended March 31, 2017 to the similar financial measures for
the three months ended March 31, 2018 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, 2018 and 2017. The average
foreign currency exchange rates for each of the relevant currencies
during each of the three months ended March 31, 2018 and 2017 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, 2018
compared to the same period in 2017 by removing the impact of the
significant difference in the average foreign currency exchange
rates in effect for those periods
|
|
NII Holdings,
Inc
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
1Q 2017
Actual
|
1Q 2017
Adjustment
(1)
|
1Q 2017
Normalized
(1)
|
|
1Q 2018
Actual
|
1Q
2017
to 1Q
2018
Actual B(W)
Growth (2)
|
1Q
2017
to 1Q
2018
Normalized
B(W) Growth
(3)
|
|
|
|
|
|
|
|
|
Consolidated:
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
250,955
|
|
$
|
(8,519)
|
|
$
|
242,436
|
|
|
$
|
181,013
|
|
(28)%
|
(25)%
|
Adjusted
operating income (loss)
before depreciation and
amortization
|
5,115
|
|
(420)
|
|
4,695
|
|
|
(7,862)
|
|
(254)%
|
(267)%
|
Nextel
Brazil:
|
|
|
|
|
|
|
|
Operating
revenues
|
$
|
250,925
|
|
$
|
(8,519)
|
|
$
|
242,406
|
|
|
$
|
180,992
|
|
(28)%
|
(25)%
|
Adjusted
operating income (loss)
before depreciation and
amortization
|
12,373
|
|
(420)
|
|
11,953
|
|
|
(3,600)
|
|
(129)%
|
(130)%
|
(1)
|
The "1Q 2017
Normalized" amounts reflect the impact of applying the average
foreign currency exchange rates for the three months ended March
31, 2018 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, 2017. The amounts
included under the column "1Q 2017 Normalized" reflect the amount
determined by adding the "1Q 2017 Adjustment" amounts calculated as
described in the preceding sentence to the "1Q 2017 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, 2018. The average foreign
currency exchange rates for each of the relevant currencies during
the three months ended March 31, 2018 and 2017 for purposes of
these calculations were as follows:
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
Brazilian
real
|
3.24
|
|
3.13
|
(2)
|
The percentage
amounts in these columns reflect the growth rates for each of the
financial measures comparing the amounts in the "1Q 2018 Actual"
columns with those in the "1Q 2017 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 2018 Actual"
columns with those in the "1Q 2017 Normalized" columns.
|
View original
content:http://www.prnewswire.com/news-releases/nii-holdings-reports-2018-first-quarter-results-300644229.html
SOURCE NII Holdings, Inc.