OVERLAND PARK, Kan.,
May 2, 2018 /PRNewswire/ --
- Fiscal year 2017 postpaid phone net additions of
606,000
-
- Third consecutive year of postpaid phone net
additions
- Highest postpaid phone gross additions in six years
- Fiscal fourth quarter postpaid phone net additions of 55,000
marked the eleventh consecutive quarter of net additions
- Fiscal year 2017 prepaid net additions of 363,000 compared
to net losses of 1 million in the prior year
-
- Prepaid net additions for the first time in three
years
- Prepaid churn of 4.58 percent was the lowest in three
years
- Fiscal fourth quarter prepaid net additions of
170,000
- Fiscal year 2017 net income of $7.4
billion, operating income of $2.7
billion and Adjusted EBITDA* of $11.1
billion
-
- Net income for the first time in 11 years, even when
excluding $7.1 billion of one-time
favorable impact from tax reform
- Highest operating income in company history and highest
Adjusted EBITDA* in 11 years
- Fiscal fourth quarter net income of $69 million, operating income of $236 million, and Adjusted EBITDA* of
$2.8 billion
- Fiscal year 2017 net cash provided by operating activities
of $10.1 billion and adjusted free
cash flow* of $945 million
-
- Second consecutive year of positive adjusted free cash
flow*
- Completed thousands of tri-band upgrades on macro sites,
added thousands of outdoor small cells and deployed more than
200,000 Sprint Magic Boxes
![Sprint Corp. Logo (PRNewsfoto/Sprint Corp.) Sprint Corp. Logo (PRNewsfoto/Sprint Corp.)](https://mma.prnewswire.com/media/623994/Sprint_Corp_Logo.jpg)
Sprint Corporation (NYSE: S) today reported
operating results for the fiscal 2017 fourth quarter and full year,
including its highest annual retail phone net additions in five
years and the best profitability in company history with its
highest annual operating income at $2.7
billion and annual net income for the first time in 11
years, even when excluding the one-time favorable impact from tax
reform. The company also reported its highest adjusted EBITDA* in
11 years at $11.1 billion and its
second consecutive year of positive adjusted free cash flow* at
$945 million.
"In the fourth year of our turnaround, Sprint delivered the best
financial results in company history as a result of growing our
customer base and continuously improving our cost structure, while
significantly improving our LTE network and initiating deployment
for the first truly mobile 5G network in the U.S," said Sprint CEO
Marcelo Claure. "By executing our
turnaround, we have positioned Sprint for strategic opportunities
which led to our proposed merger with T-Mobile, which will create
an entirely new level of innovation and disruption in the
industry."
Sprint Adds Nearly 1 Million Retail Phone Customers in Fiscal
Year 2017
Sprint's focus on both its postpaid and prepaid
businesses resulted in nearly 1 million retail phone net additions
in fiscal year 2017, an improvement of more than 1 million compared
to the prior year.
- Postpaid phone net additions of 606,000 marked the third
consecutive year of net additions, as postpaid phone gross
additions reached their highest level in six years. For the fourth
quarter, postpaid phone net additions of 55,000 marked the eleventh
consecutive quarter of net additions, including net additions in
the business space for the sixth consecutive quarter. The current
quarter and full year results included 44,000 net migrations from
prepaid to non-Sprint branded postpaid.
- Prepaid net additions of 363,000 compared to net losses
of 1 million in the prior year, an improvement of nearly 1.4
million driven by a resurgence in the Boost brand. Prepaid churn of
4.58 percent, the lowest in three years, improved by 80 basis
points year-over-year. For the fourth quarter, prepaid net
additions were 170,000, including the highest share of gross
additions in two years and year-over-year improvement in churn for
the seventh consecutive quarter.
Cost Reduction Program Contributes to Improved Cash
Flows
Sprint continued to make progress on its multi-year plan to improve
its cost structure. Excluding approximately $100 million of hurricane-related and other
non-recurring charges in fiscal year 2017, the company reported
approximately $1.1 billion of
combined year-over-year reductions in cost of services and selling,
general and administrative expenses, making it the fourth
consecutive year of more than $1
billion of year-over-year reductions and bringing the total
reduction over the last four years to approximately $6 billion. The year-over-year reductions were
primarily driven by changes to the device insurance program, as
well as lower network expenses.
Fiscal year 2017 net cash provided by operating activities of
$10.1 billion improved by
$13.4 billion year-over-year,
primarily due to a modification of our accounts receivable facility
in February 2017. Adjusted free cash
flow* of $945 million improved by
$338 million year-over-year, mostly
due to operational improvements in the business.
Net income of $7.4 billion in
fiscal year 2017 included a one-time $7.1
billion non-cash benefit from tax reform, resulting from a
re-measurement of our deferred tax assets and liabilities under
provisions contained in the new tax law.
The company also reported the following financial results:
(Millions,
except per share data)
|
Fiscal
4Q17
|
Fiscal
4Q16
|
Change
|
|
Fiscal
2017
|
Fiscal
2016
|
Change
|
Net income
(loss)
|
$69
|
($283)
|
$352
|
|
$7,389
|
($1,206)
|
$8,595
|
Basic income (loss)
per share
|
$0.02
|
($0.07)
|
$0.09
|
|
$1.85
|
($0.30)
|
$2.15
|
Operating
income
|
$236
|
$470
|
($234)
|
|
$2,727
|
$1,764
|
$963
|
Adjusted
EBITDA*
|
$2,768
|
$2,680
|
$88
|
|
$11,069
|
$9,934
|
$1,135
|
Net cash provided by
(used in) operating activities
|
$2,653
|
($523)
|
$3,176
|
|
$10,062
|
($3,290)
|
$13,352
|
Adjusted free cash
flow*
|
($240)
|
$80
|
($320)
|
|
$945
|
$607
|
$338
|
Network Quality Improves as Progress Toward First Mobile 5G
Network Continues
Sprint is building a super-reliable,
high-capacity mobile network that will deliver a great LTE
experience and enable industry-leading 5G capabilities. The
company's Next-Gen Network plan involves:
- Upgrading existing towers to leverage all three of the
company's spectrum bands
- Building new macro cell sites
- Adding more small cells including mini-macros, strand mounts
with cable operators and Sprint Magic Boxes
- Deploying 5G technologies such as Massive MIMO
With more than 160 MHz of 2.5 GHz spectrum in the top 100
markets, Sprint is one of the only operators in the world with
enough capacity to operate LTE and 5G simultaneously using Massive
MIMO and huge channels of 100-200 MHz of licensed spectrum on the
same radios. Sprint expects to launch the first mobile 5G network
in the U.S. in the first half of 2019.
Sprint completed thousands of tri-band upgrades on macro sites,
added thousands of outdoor small cells and deployed more than
200,000 Sprint Magic Boxes in fiscal year 2017. These deployments
helped drive continued improvement in network quality, as seen in
Ookla's Speedtest Intelligence data.
- Sprint saw a 36 percent year-over-year increase in its national
average download speed, the largest increase of the top four
national carriers.1
- Sprint is #1 for fastest average download speed in 100 cities,
more than twice as many cities as last year and more than AT&T
for the third consecutive quarter.2
Fiscal Year 2018 Outlook
- The company expects adjusted EBITDA* of $11.3 billion to $11.8
billion. Including the impact of the new revenue recognition
accounting standard, adjusted EBITDA* is expected to increase to a
range of $11.6 billion to
$12.1 billion.
- The company expects cash capital expenditures excluding leased
devices to be $5 billion to
$6 billion.
Conference Call and Webcast
- Date/Time: 4:30 p.m. (ET)
Wednesday, May 2, 2018
- Call-in Information
-
- U.S./Canada: 866-360-1063 (ID:
4588039)
- International: 443-961-0242 (ID: 4588039)
- Webcast available at www.sprint.com/investors
- Additional information about results is available on our
Investor Relations website
1 Based on Ookla's analysis of Speedtest Intelligence
data comparing March 2017 to
March 2018 for all mobile
results.
2 Based on Ookla's analysis of Speedtest Intelligence
data from 1/1/18 to 3/31/18 for all
mobile results when comparing cities where the top four national
carriers rank
Wireless Operating
Statistics (Unaudited)
|
|
Quarter To
Date
|
|
Year To
Date
|
|
3/31/18
|
12/31/17
|
3/31/17
|
|
3/31/18
|
3/31/17
|
Net additions
(losses) (in thousands)
|
|
|
|
|
|
|
Postpaid(a)
|
39
|
256
|
(118)
|
|
424
|
811
|
Postpaid phone
(a)
|
55
|
184
|
42
|
|
606
|
930
|
Prepaid(b)
|
170
|
63
|
195
|
|
363
|
(1,020)
|
Wholesale and
affiliate(b)
|
(165)
|
66
|
291
|
|
81
|
2,342
|
Total wireless net
additions
|
44
|
385
|
368
|
|
868
|
2,133
|
|
|
|
|
|
|
|
End of period
connections (in thousands)
|
|
|
|
|
|
|
Postpaid(a) (c)
(d)
|
32,119
|
31,942
|
31,576
|
|
32,119
|
31,576
|
Postpaid
phone(a) (c)
|
26,813
|
26,616
|
26,079
|
|
26,813
|
26,079
|
Prepaid(a) (b)
(c) (e) (f) (g)
|
8,989
|
8,997
|
8,688
|
|
8,989
|
8,688
|
Wholesale and
affiliate (b) (c) (f)
|
13,517
|
13,642
|
13,375
|
|
13,517
|
13,375
|
Total end of
period connections
|
54,625
|
54,581
|
53,639
|
|
54,625
|
53,639
|
|
|
|
|
|
|
|
Churn
|
|
|
|
|
|
|
Postpaid
|
1.78%
|
1.80%
|
1.75%
|
|
1.74%
|
1.62%
|
Postpaid
phone
|
1.68%
|
1.71%
|
1.58%
|
|
1.62%
|
1.48%
|
Prepaid
(f)
|
4.30%
|
4.63%
|
4.69%
|
|
4.58%
|
5.38%
|
|
|
|
|
|
|
|
Supplemental data
- connected devices
|
End of period
connections (in thousands)
|
|
|
|
|
|
|
Retail
postpaid
|
2,335
|
2,259
|
2,001
|
|
2,335
|
2,001
|
Wholesale and
affiliate
|
11,162
|
11,272
|
10,880
|
|
11,162
|
10,880
|
Total
|
13,497
|
13,531
|
12,881
|
|
13,497
|
12,881
|
|
|
|
|
|
|
|
ARPU(h)
|
|
|
|
|
|
|
Postpaid
|
$
44.40
|
$
45.13
|
$
47.34
|
|
$
45.70
|
$
49.77
|
Postpaid
phone
|
$
50.44
|
$
51.26
|
$
54.10
|
|
$
51.98
|
$
57.09
|
Prepaid(f)
|
$
37.15
|
$
37.46
|
$
38.48
|
|
$
37.67
|
$
34.46
|
|
|
|
|
|
|
|
NON-GAAP
RECONCILIATION - ABPA* AND ABPU* (Unaudited)
|
(Millions, except
accounts, connections, ABPA*, and ABPU*)
|
|
Quarter To
Date
|
|
Year To
Date
|
|
3/31/18
|
12/31/17
|
3/31/17
|
|
3/31/18
|
3/31/17
|
ABPA*
|
|
|
|
|
|
|
Postpaid service
revenue
|
$
4,270
|
$
4,297
|
$
4,493
|
|
$
17,396
|
$
18,677
|
Add: Installment plan
and non-operating lease billings
|
368
|
379
|
343
|
|
1,512
|
1,172
|
Add: Equipment
rentals
|
1,136
|
1,047
|
842
|
|
4,048
|
3,295
|
Total for postpaid
connections
|
$
5,774
|
$
5,723
|
$
5,678
|
|
$
22,956
|
$
23,144
|
|
|
|
|
|
|
|
Average postpaid
accounts (in thousands)
|
11,259
|
11,193
|
11,405
|
|
11,260
|
11,378
|
Postpaid
ABPA*(i)
|
$
171.38
|
$
170.39
|
$
165.92
|
|
$
169.99
|
$
169.51
|
|
|
|
|
|
|
|
|
Quarter To
Date
|
|
Year To
Date
|
|
3/31/18
|
12/31/17
|
3/31/17
|
|
3/31/18
|
3/31/17
|
Postpaid phone
ABPU*
|
|
|
|
|
|
|
Postpaid phone
service revenue
|
$
4,048
|
$
4,069
|
$
4,228
|
|
$
16,463
|
$
17,578
|
Add: Installment plan
and non-operating lease billings
|
324
|
335
|
309
|
|
1,349
|
1,061
|
Add: Equipment
rentals
|
1,126
|
1,037
|
829
|
|
4,003
|
3,240
|
Total for postpaid
phone connections
|
$
5,498
|
$
5,441
|
$
5,366
|
|
$
21,815
|
$
21,879
|
|
|
|
|
|
|
|
Postpaid average
phone connections (in thousands)
|
26,754
|
26,461
|
26,053
|
|
26,394
|
25,659
|
Postpaid phone ABPU*
(j)
|
$
68.51
|
$
68.54
|
$
68.66
|
|
$
68.88
|
$
71.06
|
|
(a)During
the three-month period ended March 31, 2018, a non-Sprint branded
postpaid offering was introduced allowing prepaid customers to
purchase a device under our installment billing program. As a
result of the extension of credit, approximately 167,000 prepaid
subscribers were migrated from the prepaid subscriber base into the
postpaid subscriber base. In addition, net subscriber additions
under the non-Sprint branded postpaid offering were 44,000 during
the three-month period ended March 31, 2018.
|
(b)Sprint
is no longer reporting Lifeline subscribers due to regulatory
changes resulting in tighter program restrictions. We have excluded
them from our customer base for all periods presented, including
our Assurance Wireless prepaid brand and subscribers through our
wholesale MVNOs.
|
(c)
As part of the Shentel transaction, 186,000 and 92,000 subscribers
were transferred from postpaid and prepaid, respectively, to
affiliates, of which 18,000 prepaid subscribers were subsequently
excluded from our customer base as a result of the Lifeline
regulatory change as noted in (b) above. An additional 270,000 of
nTelos' subscribers are now part of our affiliate relationship with
Shentel and are being reported in wholesale and affiliate
subscribers beginning with the quarter ended June 30, 2016. In
addition, during the three-month period ended June 30, 2017, 17,000
and 4,000 subscribers were transferred from postpaid and prepaid,
respectively, to affiliates and, during the three-month period
ended March 31, 2018, 29,000 and 11,000 subscribers were
transferred from postpaid and prepaid, respectively, to affiliates
as a result of the transfer of additional subscribers to
Shentel.
|
(d)
During the three-month period ended June 30, 2017, 2,000 Wi-Fi
connections were adjusted from the postpaid subscriber
base.
|
(e)During
the three-month period ended September 30, 2017, the Prepaid Data
Share platform It's On was decommissioned as the Company continues
to focus on higher value contribution offerings resulting in a
49,000 reduction to prepaid end of period subscribers.
|
(f)During
the three-month period ended December 31, 2016, the Company aligned
all prepaid brands, excluding Assurance Wireless but including
prepaid affiliate subscribers, under one churn and retention
program. As a result of this change, end of period prepaid and
affiliate subscribers as of December 31, 2016 were reduced by
1,234,000 and 21,000, respectively.
|
(g)During
the three-month period ended December 31, 2017, prepaid end of
period subscribers increased by 169,000 in conjunction with the
PRWireless HoldCo, LLC joint venture.
|
(h)
ARPU is calculated by dividing service revenue by the sum of the
monthly 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. Postpaid phone ARPU represents
revenues related to our postpaid phone connections.
|
(i)
Postpaid ABPA* is calculated by dividing postpaid service revenue
earned from postpaid customers plus billings from installment plans
and non-operating leases, as well as equipment rentals, by the sum
of the monthly average number of postpaid accounts during the
period. Installment plan billings represent the substantial
majority of the total billings in the table above for all periods
presented.
|
(j)
Postpaid phone ABPU* is calculated by dividing service
revenue earned from postpaid phone customers plus billings from
installment plans and non-operating leases, as well as equipment
rentals, by the sum of the monthly average number of postpaid phone
connections during the period. Installment plan billings represent
the substantial majority of the total billings in the table above
for all periods presented.
|
Wireless Device
Financing Summary (Unaudited)
|
(Millions, except
sales, connections, and leased devices in property, plant and
equipment)
|
|
Quarter To
Date
|
|
Year To
Date
|
|
3/31/18
|
12/31/17
|
3/31/17
|
|
3/31/18
|
3/31/17
|
|
|
|
|
|
|
|
Postpaid
activations (in thousands)
|
3,737
|
4,874
|
3,471
|
|
16,196
|
15,298
|
Postpaid activations
financed
|
84%
|
84%
|
82%
|
|
85%
|
76%
|
Postpaid activations -
operating leases
|
70%
|
72%
|
42%
|
|
67%
|
42%
|
|
|
|
|
|
|
|
Installment
plans
|
|
|
|
|
|
|
Installment sales
financed
|
$
214
|
$
276
|
$
696
|
|
$
1,311
|
$
2,884
|
Installment
billings
|
$
342
|
$
353
|
$
343
|
|
$
1,436
|
$
1,172
|
Installment
receivables, net
|
$
1,149
|
$
1,383
|
$
1,764
|
|
$
1,149
|
$
1,764
|
|
|
|
|
|
|
|
Equipment rentals
and depreciation - equipment rentals
|
|
|
|
|
|
|
Equipment
rentals
|
$
1,136
|
$
1,047
|
$
842
|
|
$
4,048
|
$
3,295
|
Depreciation -
equipment rentals
|
$
1,060
|
$
990
|
$
911
|
|
$
3,792
|
$
3,116
|
|
|
|
|
|
|
|
Leased device
additions
|
|
|
|
|
|
|
Cash paid for capital
expenditures - leased devices
|
$
1,928
|
$
2,468
|
$
1,080
|
|
$
7,461
|
$
4,976
|
|
|
|
|
|
|
|
Leased
devices
|
|
|
|
|
|
|
Leased devices in
property, plant and equipment, net
|
$
6,012
|
$
5,683
|
$
4,162
|
|
$
6,012
|
$
4,162
|
|
|
|
|
|
|
|
Leased device
units
|
|
|
|
|
|
|
Leased devices in
property, plant and equipment (units in thousands)
|
14,543
|
14,002
|
11,888
|
|
14,543
|
11,888
|
|
|
|
|
|
|
|
Leased device and
receivables financings net proceeds
|
|
|
|
|
|
|
Proceeds
|
$
-
|
$
1,125
|
$
100
|
|
$
2,679
|
$
1,155
|
Repayments
|
(555)
|
(598)
|
(414)
|
|
(2,574)
|
(1,069)
|
Net (repayments)
proceeds of financings related to devices and
receivables
|
$
(555)
|
$
527
|
$
(314)
|
|
$
105
|
$
86
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
(Millions, except
per share data)
|
|
Quarter To
Date
|
|
Year To
Date
|
|
3/31/18
|
12/31/17
|
3/31/17
|
|
3/31/18
|
3/31/17
|
Net operating
revenues
|
|
|
|
|
|
|
Service
revenue
|
$
5,866
|
$
5,930
|
$
6,116
|
|
$
23,834
|
$
25,368
|
Equipment
sales
|
1,081
|
1,262
|
1,581
|
|
4,524
|
4,684
|
Equipment
rentals
|
1,136
|
1,047
|
842
|
|
4,048
|
3,295
|
Total net
operating revenues
|
8,083
|
8,239
|
8,539
|
|
32,406
|
33,347
|
Net operating
expenses
|
|
|
|
|
|
|
Cost of services
(exclusive of depreciation and amortization below)
|
1,661
|
1,733
|
1,736
|
|
6,801
|
7,861
|
Cost of equipment
sales
|
1,487
|
1,673
|
1,980
|
|
6,109
|
6,583
|
Cost of equipment
rentals (exclusive of depreciation below)
|
146
|
123
|
141
|
|
493
|
975
|
Selling, general and
administrative
|
2,028
|
2,108
|
2,002
|
|
8,087
|
7,994
|
Depreciation -
network and other
|
1,015
|
987
|
960
|
|
3,976
|
3,982
|
Depreciation -
equipment rentals
|
1,060
|
990
|
911
|
|
3,792
|
3,116
|
Amortization
|
184
|
196
|
239
|
|
812
|
1,052
|
Other, net
|
266
|
(298)
|
100
|
|
(391)
|
20
|
Total net operating
expenses
|
7,847
|
7,512
|
8,069
|
|
29,679
|
31,583
|
Operating
income
|
236
|
727
|
470
|
|
2,727
|
1,764
|
Interest
expense
|
(576)
|
(581)
|
(631)
|
|
(2,365)
|
(2,495)
|
Other (expense)
income, net
|
(9)
|
(42)
|
27
|
|
(59)
|
(40)
|
(Loss) income
before income taxes
|
(349)
|
104
|
(134)
|
|
303
|
(771)
|
Income tax benefit
(expense)
|
412
|
7,052
|
(149)
|
|
7,074
|
(435)
|
Net income
(loss)
|
63
|
7,156
|
(283)
|
|
7,377
|
(1,206)
|
Less: Net loss
attributable to noncontrolling interests
|
6
|
6
|
-
|
|
12
|
-
|
Net income (loss)
attributable to Sprint Corporation
|
$
69
|
$
7,162
|
$
(283)
|
|
$
7,389
|
$
(1,206)
|
|
|
|
|
|
|
|
Basic net income
(loss) per common share
|
$
0.02
|
$
1.79
|
$
(0.07)
|
|
$
1.85
|
$
(0.30)
|
Diluted net income
(loss) per common share
|
$
0.02
|
$
1.76
|
$
(0.07)
|
|
$
1.81
|
$
(0.30)
|
Weighted average
common shares outstanding
|
4,004
|
4,001
|
3,988
|
|
3,999
|
3,981
|
Diluted weighted
average common shares outstanding
|
4,055
|
4,061
|
3,988
|
|
4,078
|
3,981
|
|
|
|
|
|
|
|
Effective tax
rate
|
118.1%
|
-6,780.8%
|
-111.2%
|
|
-2,334.7%
|
-56.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP
RECONCILIATION - NET INCOME (LOSS) TO ADJUSTED EBITDA*
(Unaudited)
|
(Millions)
|
|
Quarter To
Date
|
|
Year To
Date
|
|
3/31/18
|
12/31/17
|
3/31/17
|
|
3/31/18
|
3/31/17
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
63
|
$
7,156
|
$
(283)
|
|
$
7,377
|
$
(1,206)
|
Income tax (benefit)
expense
|
(412)
|
(7,052)
|
149
|
|
(7,074)
|
435
|
(Loss) income
before income taxes
|
(349)
|
104
|
(134)
|
|
303
|
(771)
|
Other expense
(income), net
|
9
|
42
|
(27)
|
|
59
|
40
|
Interest
expense
|
576
|
581
|
631
|
|
2,365
|
2,495
|
Operating
income
|
236
|
727
|
470
|
|
2,727
|
1,764
|
Depreciation -
network and other
|
1,015
|
987
|
960
|
|
3,976
|
3,982
|
Depreciation -
equipment rentals
|
1,060
|
990
|
911
|
|
3,792
|
3,116
|
Amortization
|
184
|
196
|
239
|
|
812
|
1,052
|
EBITDA*(1)
|
2,495
|
2,900
|
2,580
|
|
11,307
|
9,914
|
Loss (gain) from
asset dispositions, exchanges, and other,
net(2)
|
189
|
-
|
-
|
|
(115)
|
(326)
|
Severance and exit
costs (3)
|
67
|
13
|
36
|
|
80
|
66
|
Contract terminations
(4)
|
-
|
-
|
27
|
|
(5)
|
140
|
Litigation and other
contingencies(5)
|
10
|
(260)
|
37
|
|
(305)
|
140
|
Hurricanes
(6)
|
7
|
66
|
-
|
|
107
|
-
|
Adjusted
EBITDA*(1)
|
$
2,768
|
$
2,719
|
$
2,680
|
|
$
11,069
|
$
9,934
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin*
|
47.2%
|
45.9%
|
43.8%
|
|
46.4%
|
39.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
items:
|
|
|
|
|
|
|
Cash paid for capital
expenditures - network and other
|
$
780
|
$
696
|
$
529
|
|
$
3,319
|
$
1,950
|
Cash paid for capital
expenditures - leased devices
|
$
1,928
|
$
2,468
|
$
1,080
|
|
$
7,461
|
$
4,976
|
WIRELESS
STATEMENTS OF OPERATIONS (Unaudited)
|
(Millions)
|
|
Quarter To
Date
|
|
Year To
Date
|
|
3/31/18
|
12/31/17
|
3/31/17
|
|
3/31/18
|
3/31/17
|
Net operating
revenues
|
|
|
|
|
|
|
Service
revenue
|
|
|
|
|
|
|
Postpaid
|
$
4,270
|
$
4,297
|
$
4,493
|
|
$
17,396
|
$
18,677
|
Prepaid
(7)
|
989
|
993
|
982
|
|
3,971
|
4,078
|
Wholesale, affiliate
and other(7)
|
314
|
329
|
269
|
|
1,198
|
1,053
|
Total service
revenue
|
5,573
|
5,619
|
5,744
|
|
22,565
|
23,808
|
|
|
|
|
|
|
|
Equipment
sales
|
1,081
|
1,262
|
1,581
|
|
4,524
|
4,684
|
Equipment
rentals
|
1,136
|
1,047
|
842
|
|
4,048
|
3,295
|
Total net
operating revenues
|
7,790
|
7,928
|
8,167
|
|
31,137
|
31,787
|
|
|
|
|
|
|
|
Net operating
expenses
|
|
|
|
|
|
|
Cost of services
(exclusive of depreciation and amortization below)
|
1,401
|
1,466
|
1,448
|
|
5,701
|
6,674
|
Cost of equipment
sales
|
1,487
|
1,673
|
1,980
|
|
6,109
|
6,583
|
Cost of equipment
rentals (exclusive of depreciation below)
|
146
|
123
|
141
|
|
493
|
975
|
Selling, general and
administrative
|
1,947
|
2,024
|
1,944
|
|
7,782
|
7,741
|
Depreciation -
network and other
|
968
|
931
|
911
|
|
3,768
|
3,779
|
Depreciation -
equipment rentals
|
1,060
|
990
|
911
|
|
3,792
|
3,116
|
Amortization
|
184
|
196
|
239
|
|
812
|
1,052
|
Other, net
|
258
|
16
|
91
|
|
(35)
|
(1)
|
Total net operating
expenses
|
7,451
|
7,419
|
7,665
|
|
28,422
|
29,919
|
Operating
income
|
$
339
|
$
509
|
$
502
|
|
$
2,715
|
$
1,868
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WIRELESS NON-GAAP
RECONCILIATION (Unaudited)
|
(Millions)
|
|
Quarter To
Date
|
|
Year To
Date
|
|
3/31/18
|
12/31/17
|
3/31/17
|
|
3/31/18
|
3/31/17
|
|
|
|
|
|
|
|
Operating
income
|
$
339
|
$
509
|
$
502
|
|
$
2,715
|
$
1,868
|
Loss (gain) from
asset dispositions, exchanges, and other,
net(2)
|
189
|
-
|
-
|
|
(115)
|
(326)
|
Severance and exit
costs (3)
|
59
|
4
|
27
|
|
58
|
45
|
Contract terminations
(4)
|
-
|
-
|
27
|
|
(5)
|
140
|
Litigation and other
contingencies (5)
|
10
|
63
|
37
|
|
73
|
140
|
Hurricanes
(6)
|
7
|
66
|
-
|
|
107
|
-
|
Depreciation -
network and other
|
968
|
931
|
911
|
|
3,768
|
3,779
|
Depreciation -
equipment rentals
|
1,060
|
990
|
911
|
|
3,792
|
3,116
|
Amortization
|
184
|
196
|
239
|
|
812
|
1,052
|
Adjusted
EBITDA*(1)
|
$
2,816
|
$
2,759
|
$
2,654
|
|
$
11,205
|
$
9,814
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin*
|
50.5%
|
49.1%
|
46.2%
|
|
49.7%
|
41.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
items:
|
|
|
|
|
|
|
Cash paid for capital
expenditures - network and other
|
$
681
|
$
565
|
$
468
|
|
$
2,760
|
$
1,591
|
Cash paid for capital
expenditures - leased devices
|
$
1,928
|
$
2,468
|
$
1,080
|
|
$
7,461
|
$
4,976
|
WIRELINE
STATEMENTS OF OPERATIONS (Unaudited)
|
(Millions)
|
|
Quarter To
Date
|
|
Year To
Date
|
|
3/31/18
|
12/31/17
|
3/31/17
|
|
3/31/18
|
3/31/17
|
|
|
|
|
|
|
|
Net operating
revenues
|
344
|
393
|
480
|
|
1,579
|
2,043
|
|
|
|
|
|
|
|
Net operating
expenses
|
|
|
|
|
|
|
Cost of services
(exclusive of depreciation and amortization below)
|
316
|
352
|
402
|
|
1,427
|
1,686
|
Selling, general and
administrative
|
76
|
71
|
49
|
|
270
|
238
|
Depreciation and
amortization
|
50
|
55
|
47
|
|
205
|
195
|
Other, net
|
9
|
(314)
|
8
|
|
(300)
|
21
|
Total net operating
expenses
|
451
|
164
|
506
|
|
1,602
|
2,140
|
Operating (loss)
income
|
$
(107)
|
$
229
|
$
(26)
|
|
$
(23)
|
$
(97)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WIRELINE NON-GAAP
RECONCILIATION (Unaudited)
|
(Millions)
|
|
Quarter To
Date
|
|
Year To
Date
|
|
3/31/18
|
12/31/17
|
3/31/17
|
|
3/31/18
|
3/31/17
|
|
|
|
|
|
|
|
Operating (loss)
income
|
$
(107)
|
$
229
|
$
(26)
|
|
$
(23)
|
$
(97)
|
Loss from asset
dispositions, exchanges, and other, net(2)
|
1
|
-
|
-
|
|
1
|
-
|
Severance and exit
costs (3)
|
8
|
9
|
8
|
|
22
|
21
|
Litigation and other
contingencies (5)
|
-
|
(323)
|
-
|
|
(323)
|
-
|
Depreciation and
amortization
|
50
|
55
|
47
|
|
205
|
195
|
Adjusted
EBITDA*
|
$
(48)
|
$
(30)
|
$
29
|
|
$
(118)
|
$
119
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin*
|
-14.0%
|
-7.6%
|
6.0%
|
|
-7.5%
|
5.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
items:
|
|
|
|
|
|
|
Cash paid for capital
expenditures - network and other
|
$
34
|
$
30
|
$
19
|
|
$
166
|
$
94
|
CONDENSED
CONSOLIDATED CASH FLOW INFORMATION (Unaudited)
|
(Millions)
|
|
|
|
Year To
Date
|
|
|
|
|
|
3/31/18
|
3/31/17
|
Operating
activities
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
|
$
7,377
|
$ (1,206)
|
Depreciation and
amortization
|
|
|
|
|
8,580
|
8,150
|
Provision for losses
on accounts receivable
|
|
|
|
|
362
|
555
|
Share-based and
long-term incentive compensation expense
|
|
|
|
|
182
|
93
|
Deferred income tax
(benefit) expense
|
|
|
|
|
(7,119)
|
433
|
Gains from asset
dispositions and exchanges
|
|
|
|
|
(479)
|
(354)
|
Loss on early
extinguishment of debt
|
|
|
|
|
65
|
-
|
Amortization of
long-term debt premiums, net
|
|
|
|
|
(158)
|
(302)
|
Loss on disposal of
property, plant and equipment
|
|
|
|
|
868
|
509
|
Contract
terminations
|
|
|
|
|
(5)
|
111
|
Deferred purchase
price from sale of receivables
|
|
|
|
|
(1,140)
|
(10,498)
|
Other changes in
assets and liabilities:
|
|
|
|
|
|
|
Accounts and notes
receivable
|
|
|
|
|
83
|
(1,017)
|
Inventories and other
current assets
|
|
|
|
|
705
|
457
|
Accounts payable and
other current liabilities
|
|
|
|
|
57
|
(365)
|
Non-current assets and
liabilities, net
|
|
|
|
|
271
|
(308)
|
Other,
net
|
|
|
|
|
413
|
452
|
Net cash provided
by (used in) operating activities
|
|
|
|
|
10,062
|
(3,290)
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
Capital expenditures
- network and other
|
|
|
|
|
(3,319)
|
(1,950)
|
Capital expenditures
- leased devices
|
|
|
|
|
(7,461)
|
(4,976)
|
Expenditures relating
to FCC licenses
|
|
|
|
|
(115)
|
(83)
|
Change in short-term
investments, net
|
|
|
|
|
3,090
|
(5,444)
|
Proceeds from sales
of assets and FCC licenses
|
|
|
|
|
527
|
219
|
Proceeds from
deferred purchase price from sale of receivables
|
|
|
|
|
1,140
|
10,498
|
Other, net
|
|
|
|
|
3
|
41
|
Net cash used in
investing activities
|
|
|
|
|
(6,135)
|
(1,695)
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
Proceeds from debt
and financings
|
|
|
|
|
8,529
|
10,966
|
Repayments of debt,
financing and capital lease obligations
|
|
|
|
|
(8,518)
|
(5,417)
|
Debt financing
costs
|
|
|
|
|
(93)
|
(358)
|
Call premiums paid on
debt redemptions
|
|
|
|
|
(131)
|
-
|
Other, net
|
|
|
|
|
3
|
95
|
Net cash (used in)
provided by financing activities
|
|
|
|
|
(210)
|
5,286
|
|
|
|
|
|
|
|
Net increase in
cash, cash equivalents and restricted cash
|
|
|
|
|
3,717
|
301
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
|
|
|
2,942
|
2,641
|
Cash, cash
equivalents and restricted cash, end of period
|
|
|
|
|
$
6,659
|
$
2,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO
CONSOLIDATED FREE CASH FLOW* (NON-GAAP) (Unaudited)
|
(Millions)
|
|
Quarter To
Date
|
|
Year To
Date
|
|
3/31/18
|
12/31/17
|
3/31/17
|
|
3/31/18
|
3/31/17
|
|
|
|
|
|
|
|
Net cash provided
by (used in) operating activities
|
$
2,653
|
$
2,683
|
$
(523)
|
|
$
10,062
|
$
(3,290)
|
|
|
|
|
|
|
|
Capital expenditures
- network and other
|
(780)
|
(696)
|
(529)
|
|
(3,319)
|
(1,950)
|
Capital expenditures
- leased devices
|
(1,928)
|
(2,468)
|
(1,080)
|
|
(7,461)
|
(4,976)
|
Expenditures relating
to FCC licenses, net
|
(23)
|
(73)
|
(37)
|
|
(115)
|
(83)
|
Proceeds from sales
of assets and FCC licenses
|
160
|
149
|
93
|
|
527
|
219
|
Proceeds from
deferred purchase price from sale of receivables
|
231
|
269
|
2,476
|
|
1,140
|
10,498
|
Other investing
activities, net
|
2
|
6
|
(6)
|
|
6
|
103
|
Free cash
flow*
|
$
315
|
$
(130)
|
$
394
|
|
$
840
|
$
521
|
|
|
|
|
|
|
|
Net (repayments)
proceeds of financings related to devices and
receivables
|
(555)
|
527
|
(314)
|
|
105
|
86
|
Adjusted free cash
flow*
|
$
(240)
|
$
397
|
$
80
|
|
$
945
|
$
607
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
|
(Millions)
|
|
3/31/18
|
3/31/17
|
ASSETS
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$
6,610
|
$
2,870
|
Short-term
investments
|
2,354
|
5,444
|
Accounts and notes
receivable, net
|
3,711
|
4,138
|
Device and accessory
inventory
|
1,003
|
1,064
|
Prepaid expenses and
other current assets
|
575
|
601
|
Total current
assets
|
14,253
|
14,117
|
|
|
|
Property, plant and
equipment, net
|
19,925
|
19,209
|
Goodwill
|
6,586
|
6,579
|
FCC licenses and
other
|
41,309
|
40,585
|
Definite-lived
intangible assets, net
|
2,465
|
3,320
|
Other
assets
|
921
|
1,313
|
Total
assets
|
$
85,459
|
$
85,123
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
Current
liabilities
|
|
|
Accounts
payable
|
$
3,409
|
$
3,281
|
Accrued expenses and
other current liabilities
|
3,962
|
4,141
|
Current portion of
long-term debt, financing and capital lease obligations
|
3,429
|
5,036
|
Total current
liabilities
|
10,800
|
12,458
|
|
|
|
Long-term debt,
financing and capital lease obligations
|
37,463
|
35,878
|
Deferred tax
liabilities
|
7,294
|
14,416
|
Other
liabilities
|
3,483
|
3,563
|
Total
liabilities
|
59,040
|
66,315
|
|
|
|
Stockholders'
equity
|
|
|
Common stock
|
40
|
40
|
Paid-in
capital
|
27,884
|
27,756
|
Accumulated
deficit
|
(1,332)
|
(8,584)
|
Accumulated other
comprehensive loss
|
(236)
|
(404)
|
Total stockholders'
equity
|
26,356
|
18,808
|
Noncontrolling
interests
|
63
|
-
|
Total equity
|
26,419
|
18,808
|
Total liabilities
and equity
|
$
85,459
|
$
85,123
|
|
|
|
|
|
|
NET DEBT*
(NON-GAAP) (Unaudited)
|
(Millions)
|
|
3/31/18
|
3/31/17
|
Total debt
|
$
40,892
|
$
40,914
|
Less: Cash and cash
equivalents
|
(6,610)
|
(2,870)
|
Less: Short-term
investments
|
(2,354)
|
(5,444)
|
Net
debt*
|
$
31,928
|
$
32,600
|
SCHEDULE OF DEBT
(Unaudited)
|
(Millions)
|
|
|
3/31/18
|
ISSUER
|
MATURITY
|
PRINCIPAL
|
Sprint
Corporation
|
|
|
7.25% Senior notes
due 2021
|
09/15/2021
|
$
2,250
|
7.875% Senior notes
due 2023
|
09/15/2023
|
4,250
|
7.125% Senior notes
due 2024
|
06/15/2024
|
2,500
|
7.625% Senior notes
due 2025
|
02/15/2025
|
1,500
|
7.625% Senior notes
due 2026
|
03/01/2026
|
1,500
|
Sprint
Corporation
|
|
12,000
|
|
|
|
Sprint Spectrum Co
LLC, Sprint Spectrum Co II LLC, and Sprint Spectrum Co III
LLC
|
|
|
3.36% Senior secured
notes due 2021
|
09/20/2021
|
3,063
|
4.738% Senior secured
notes due 2025
|
03/20/2025
|
2,100
|
5.152% Senior secured
notes due 2028
|
03/20/2028
|
1,837
|
Sprint Spectrum Co
LLC, Sprint Spectrum Co II LLC, and Sprint Spectrum Co III
LLC
|
|
7,000
|
|
|
|
Sprint
Communications, Inc.
|
|
|
Export Development
Canada secured loan
|
12/17/2019
|
300
|
9% Guaranteed notes
due 2018
|
11/15/2018
|
1,753
|
7% Guaranteed notes
due 2020
|
03/01/2020
|
1,000
|
7% Senior notes due
2020
|
08/15/2020
|
1,500
|
11.5% Senior notes
due 2021
|
11/15/2021
|
1,000
|
9.25% Secured
debentures due 2022
|
04/15/2022
|
200
|
6% Senior notes due
2022
|
11/15/2022
|
2,280
|
Sprint
Communications, Inc.
|
|
8,033
|
|
|
|
Sprint Capital
Corporation
|
|
|
6.9% Senior notes due
2019
|
05/01/2019
|
1,729
|
6.875% Senior notes
due 2028
|
11/15/2028
|
2,475
|
8.75% Senior notes
due 2032
|
03/15/2032
|
2,000
|
Sprint Capital
Corporation
|
|
6,204
|
|
|
|
Credit
facilities
|
|
|
PRWireless secured
term loan
|
06/28/2020
|
182
|
Secured equipment
credit facilities
|
2020 -
2021
|
527
|
Secured term
loan
|
02/03/2024
|
3,960
|
Credit
facilities
|
|
4,669
|
|
|
|
Accounts
receivable facility
|
11/18/2019
|
2,411
|
|
|
|
Financing
obligations
|
08/31/2021
|
150
|
|
|
|
Capital leases and
other obligations
|
2018 -
2026
|
536
|
Total
principal
|
|
41,003
|
|
|
|
Net premiums and
debt financing costs
|
|
(111)
|
Total
debt
|
|
$
40,892
|
NOTES TO THE
FINANCIAL INFORMATION (Unaudited)
|
|
|
(1)
|
As more of our
customers elect to lease a device rather than purchasing one under
our subsidized program, there is a significant positive impact to
EBITDA* and Adjusted EBITDA* from direct channel sales primarily
due to the fact the cost of the device is not recorded as cost of
equipment sales but rather is depreciated over the customer lease
term. Under our device leasing program for the direct channel,
devices are transferred from inventory to property and equipment
and the cost of the leased device is recognized as depreciation
expense over the customer lease term to an estimated residual
value. The customer payments are recognized as revenue over the
term of the lease. Under our subsidized program, the cash received
from the customer for the device is recognized as revenue from
equipment sales at the point of sale and the cost of the device is
recognized as cost of equipment sales. During the three and
twelve-month periods ended March 31, 2018, we leased devices
through our Sprint direct channels totaling approximately $1,213
million and $4,884 million, respectively, which would have
increased cost of equipment sales and reduced EBITDA* if they had
been purchased under our subsidized program.
|
|
|
|
The impact to EBITDA*
and Adjusted EBITDA* resulting from the sale of devices under our
installment billing program is generally neutral except for the
impact from the time value of money element related to the imputed
interest on the installment receivable.
|
(2)
|
During the fourth and
first quarters of fiscal year 2017, the company recorded losses on
dispositions of assets primarily related to cell site construction
and network development costs that are no longer relevant as a
result of changes in the company's network plans. Additionally, the
company recorded a pre-tax non-cash gain related to spectrum swaps
with other carriers. During the third quarter of fiscal year 2016,
the company recorded losses on dispositions of assets primarily
related to cell site construction and network development costs
that are no longer relevant as a result of changes in the company's
network plans. During the second quarter of fiscal year 2016 the
company recorded a pre-tax non-cash gain of $354 million related to
spectrum swaps with other carriers.
|
(3)
|
Severance and exit
costs consist of lease exit costs primarily associated with tower
and cell sites, access exit costs related to payments that will
continue to be made under the company's backhaul access contracts
for which the company will no longer be receiving any economic
benefit, and severance costs associated with reduction in its work
force.
|
(4)
|
During the first
quarter of fiscal year 2017, we recorded a $5 million gain due to
reversal of a liability recorded in relation to the termination of
our relationship with General Wireless Operations, Inc. (Radio
Shack). During the fourth quarter of fiscal year 2016, we
terminated our relationship with Radio Shack and incurred net
contract termination charges of approximately $27 million primarily
related to cash termination payments and write-downs of leasehold
improvements at associated retail stores that were shut down as of
March 31, 2017. During the first quarter of fiscal year 2016,
contract terminations primarily relate to the termination of our
pre-existing wholesale arrangement with NTELOS Holding
Corp.
|
(5)
|
During the fourth,
third and first quarters of fiscal year 2017, litigation and other
contingencies consist of reductions associated with legal
settlements or favorable developments in pending legal proceedings
as well as non-recurring charges of $51 million related to a
regulatory fee matter. During the fourth and second quarters of
fiscal year 2016, litigation and other contingencies consist of
unfavorable developments associated with legal matters as well as
federal and state matters such as sales, use or property
taxes.
|
(6)
|
During the fourth,
third and second quarters of fiscal year 2017 we recorded estimated
hurricane-related charges of $7 million, $66 million and $34
million, respectively, consisting of customer service credits,
incremental roaming costs, network repairs and
replacements.
|
(7)
|
Sprint is no longer
reporting Lifeline subscribers due to recent regulatory changes
resulting in tighter program restrictions. We have excluded them
from our customer base for all periods presented, including our
Assurance Wireless prepaid brand and subscribers through our
wholesale Lifeline mobile virtual network operators (MVNO). The
table reflects the reclassification of the related Assurance
Wireless prepaid revenue from Prepaid service revenue to Wholesale,
affiliate and other revenue of $85 million and $360 million for the
three and twelve-month periods ended March 31, 2017, respectively.
Revenue associated with subscribers through our wholesale Lifeline
MVNO's continue to remain in Wholesale, affiliate and other revenue
following this change.
|
*FINANCIAL MEASURES
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. 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.
Postpaid ABPA is average billings per account and
calculated by dividing postpaid service revenue earned from
postpaid customers plus billings from installment plans and
non-operating leases, as well as equipment rentals, by the sum of
the monthly average number of postpaid accounts during the period.
We believe that ABPA provides useful information to investors,
analysts and our management to evaluate average postpaid customer
billings per account as it approximates the expected cash
collections, including billings from installment plans and
non-operating leases, as well as equipment rentals, per postpaid
account each month.
Postpaid Phone ABPU is average billings per postpaid
phone user and calculated by dividing service revenue earned from
postpaid phone customers plus billings from installment plans and
non-operating leases, as well as equipment rentals by the sum of
the monthly average number of postpaid phone connections during the
period. We believe that ABPU provides useful information to
investors, analysts and our management to evaluate average postpaid
phone customer billings as it approximates the expected cash
collections, including billings from installment plans and
non-operating leases, as well as equipment rentals, per postpaid
phone 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 and equity method investments.
Adjusted Free Cash Flow is Free Cash Flow plus
the proceeds from device financings and sales of receivables, net
of repayments. We believe that Free Cash Flow and Adjusted Free
Cash Flow provide useful information to investors, analysts and our
management about the cash generated by our core operations and net
proceeds obtained to fund certain leased devices, respectively,
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 and short-term
investments. 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.
SAFE HARBOR
This release includes "forward-looking statements" within the
meaning of the securities laws. The words "may," "could," "should,"
"estimate," "project," "forecast," "intend," "expect,"
"anticipate," "believe," "target," "plan", "outlook," "providing
guidance," and similar expressions are intended to identify
information that is not historical in nature. All statements that
address operating performance, events or developments that we
expect or anticipate will occur in the future — including
statements relating to our network, cost reductions, connections
growth, and liquidity; and statements expressing general views
about future operating results — 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 development and deployment of new technologies and
services; efficiencies and cost savings of new technologies and
services; customer and network usage; connection growth and
retention; service, speed, coverage and quality; availability of
devices; availability of various financings, including any leasing
transactions; the timing of various events and the economic
environment. Sprint believes these forward-looking statements are
reasonable; however, you should not place undue reliance on
forward-looking statements, which are based on current expectations
and speak only as of the date when made. Sprint undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law. In addition,
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from our company's historical experience and our present
expectations or projections. Factors that might cause such
differences include, but are not limited to, those discussed in
Sprint Corporation's Annual Report on Form 10-K for the fiscal year
ended March 31, 2017, and, when
filed, its Annual Report on Form 10-K for the fiscal year ended
March 31, 2018. You should understand
that it is not possible to predict or identify all such factors.
Consequently, you should not consider any such list to be a
complete set of all potential risks or uncertainties.
About Sprint:
Sprint (NYSE: S) is a communications services company that creates
more and better ways to connect its customers to the things they
care about most. Sprint served 54.6 million connections as of
March 31, 2018 and is widely
recognized for developing, engineering and deploying innovative
technologies, including the first wireless 4G service from a
national carrier in the United
States; leading no-contract brands including Virgin Mobile
USA, Boost Mobile, and Assurance
Wireless; instant national and international push-to-talk
capabilities; and a global Tier 1 Internet backbone. Today,
Sprint's legacy of innovation and service continues with an
increased investment to dramatically improve coverage, reliability,
and speed across its nationwide network and commitment to launching
the first 5G mobile network in the U.S. You can learn more and
visit Sprint at www.sprint.com or
www.facebook.com/sprint and www.twitter.com/sprint.
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