- Operating Income of $318 million and Adjusted EBITDA* of $1.7
billion
- 1.2 million Sprint platform net additions compared to net losses of
383,000 in the prior year quarter
- Postpaid net additions of 211,000 compared to net losses of
231,000 in the prior year quarter
- Postpaid phone losses of 201,000 improved sequentially for the
fourth consecutive quarter and improved by nearly 500,000
year-over-year
- Prepaid net additions of 546,000 led the industry for second
consecutive quarter and compared to net losses of 364,000 in the
prior year quarter
- Wholesale net additions of 492,000 increased from 212,000 in
the prior year quarter
- Postpaid net port positive for the quarter - first time in nearly
three years
- Sprint platform postpaid churn of 1.84 percent improved 46 basis
points sequentially from 2.30 percent last quarter
- Expanded company-owned distribution by opening 1,435 co-branded
Sprint-RadioShack stores
- Launched industry-first Sprint Direct 2 You service
- 4G LTE coverage now reaches nearly 280 million people equaling 87
percent of U.S. population
Company Website:
http://www.sprint.com
OVERLAND PARK, Kan. -- (Business Wire)
Sprint Corporation (NYSE:S) today reported operating results for
the fourth fiscal quarter of 2014, including 1.2 million Sprint platform
net additions, the highest number in nearly three years. The company
recorded significantly better postpaid churn of 1.84 percent, and for
the fourth consecutive quarter, reduced postpaid phone losses. In
addition, the company reported operating income of $318 million and
Adjusted EBITDA* of $1.7 billion.
“I am proud of the team for successfully executing the first phase of
our strategy to stop the decline in customers. We are now one quarter
into the second phase, focusing on attracting more quality customers,
retaining our customers through a better customer experience and
continuously improving the network,” said Sprint CEO Marcelo Claure. “As
a result, Sprint platform net additions were the highest in nearly three
years, postpaid churn dropped by 46 basis points sequentially, and the
network received more awards in major markets, all of which will
position the company for profitable growth.”
1.2 Million Sprint Platform Net Additions
-
Sprint platform net additions of 1.2 million compared to 967,000 in
the prior quarter and net losses of 383,000 in the prior year quarter.
The year-over-year improvement was mostly driven by growth in the
prepaid business and fewer postpaid phone customer losses.
-
Postpaid net additions of 211,000 compared to 30,000 in the prior
quarter and net losses of 231,000 in the prior year quarter. The
442,000 year-over-year improvement was due to both higher prime credit
quality gross additions and lower churn.
-
Net port positive for the first time in nearly three years.
-
Postpaid phone losses of 201,000 compared to losses of 205,000 in
the prior quarter and 693,000 in the prior year quarter. The
492,000 year-over-year improvement was driven by lower churn and
higher prime credit quality gross additions.
-
Postpaid tablet net additions of 349,000 compared to 189,000 in
the prior quarter and 516,000 in the prior year quarter.
-
Prepaid net additions of 546,000 led the industry for the second
consecutive quarter and compared to 410,000 in the prior quarter and
net losses of 364,000 in the prior year quarter. The 910,000
year-over-year improvement was mostly due to growth in the Boost
Mobile brand.
-
Wholesale net additions of 492,000 compared to 527,000 in the prior
quarter and 212,000 in the prior year quarter. The year-over-year
growth was mostly driven by connected devices.
Solid Progress on Customer Retention Efforts
Sprint has focused on reducing postpaid churn by increasing credit
standards, embracing customer demand to upgrade to the latest devices
and continuing to improve the network experience. The company has also
placed greater emphasis on Net Promoter Score (NPS), a measure of
customer loyalty, by establishing a chief experience officer dedicated
to improving this metric and by linking NPS improvement to every
employee’s compensation. These actions, among others, have resulted in
improvement in several customer retention metrics during the quarter.
-
Sprint platform postpaid churn of 1.84 percent improved 46 basis
points from 2.30 percent last quarter, the best sequential improvement
in nearly seven years.
-
Best sequential improvement in Sprint platform postpaid voluntary
churn in nearly 11 years.
-
NPS improved from a negative score in mid-2014 to the highest level in
nearly two years in March.
Enhancing the Customer Experience
Last month Sprint introduced several new innovative programs and
features to further enhance the customer experience.
- Sprint Direct 2 You is an industry-first program that is
expected to transform the mobile phone buying experience by taking the
retail store experience to the customer. With this personalized white
glove service, a Sprint-trained expert will take a mobile device to a
customer's location, set it up and transfer all of their content from
their old device.
- Free International Value Roaming when added to a domestic
service plan gives customers the ability to travel to major areas in
Latin America, Europe and Japan and roam with up to 2G speeds at no
additional charge. Additionally, they can send unlimited text messages
for no extra charge and call anywhere in the world from these areas
for 20 cents per minute. More international locations are expected to
be added to the service over time.
- Free Wi-Fi Calling for iPhone®dramatically
expands coverage and connectivity options for customers with service
on iPhone 6, iPhone 6 Plus, iPhone 5c and iPhone 5s. Including the
rich portfolio of Wi-Fi calling Android devices, Sprint now has 27
total devices capable of experiencing the benefits of Wi-Fi calling.
Continuing to Attract Quality Customers
Sprint is not only focused on attracting more customers but also better
quality customers. With innovative offerings such as the Cut Your Bill
in Half event and the industry’s only device leasing program, the
company has seen improvement in customer acquisition on the Sprint
platform.
-
Postpaid gross additions grew 11 percent year-over-year.
-
Postpaid phone gross additions with prime credit quality grew 65
percent year-over-year.
-
Prepaid gross additions were highest on record, growing 41 percent
year-over-year.
Expanding Distribution
Sprint recently doubled its company-owned retail footprint by opening
1,435 Sprint-RadioShack co-branded stores and expects to have the
“store-within-a-store” retail model fully operationalized over the next
couple of quarters, providing a rapid and cost-effective expansion of
the company’s distribution. The company will also continue to seek
innovative ways, such as Sprint Direct 2 You, to further expand
Sprint-branded distribution and achieve a more competitive position
within the industry.
Quarterly Financial Results
-
Net operating revenues of $8.3 billion were down seven percent
year-over-year, as lower wireless service revenues mostly driven by
customer shifts to rate plans associated with device financing options
were partially offset by higher equipment revenue.
-
Consolidated Adjusted EBITDA* of $1.7 billion declined five percent
from the prior year period, as lower service revenues were partially
offset by lower net subsidy expenses related to the introduction of
device financing options, including leasing for which no cost of
products expense is recorded at the point of sale, and lower cost of
services expense due to the completion of the 3G and voice network
replacement.
-
Operating income of $318 million was down from $420 million in the
year-ago quarter, primarily due to higher depreciation expense.
-
Net loss of $224 million, or $.06 per share, compared to a net loss of
$151 million, or $.04 per share, in the year-ago period, as lower
operating income was partially offset by lower income tax expense.
-
Total liquidity was $7.5 billion at the end of the quarter, including
$4.2 billion of cash, cash equivalents and short-term investments and
$3.3 billion of undrawn borrowing capacity under the revolving bank
credit facility and service receivables facility. The company also
currently has $1.4 billion of availability under vendor financing
agreements that can be utilized toward the purchase of 2.5 GHz network
equipment. Additionally, in April Sprint amended the service
receivables facility and increased its size from $1.3 billion to $3.3
billion by including equipment receivables.
Network Performance #GettingBetterEveryDay
Sprint is focused on leveraging its spectrum portfolio to provide a
network that delivers the consistent reliability, capacity and speed
that customers demand. During the quarter, Sprint continued to build out
4G LTE on the 800 MHz and 2.5 GHz spectrum and total LTE coverage now
reaches nearly 280 million people.
Independent mobile analytics firm RootMetrics® acknowledged
the company’s significant network improvements in their second half 2014
Mobile Network Performance Review Report. Since that time, Sprint has
been awarded a total of 104 first place (outright or shared) RootScore
Awards for overall, reliability, speed, data, call, or text network
performance in the 77 markets measured to date in the first half of
2015, including these notable achievements.
City |
| Category |
| 2H14 Ranking |
| 1H15 Ranking |
Pittsburgh, PA
|
|
Reliability & Call Performance
|
|
3rd, Shared 2nd
|
|
Shared 1st
|
San Antonio, TX
|
|
Reliability & Call Performance
|
|
Shared 2nd, Shared 1st
|
|
Shared 1st
|
St. Louis, MO
|
|
Reliability & Call Performance
|
|
Shared 3rd, Shared 1st
|
|
Shared 1st
|
Jacksonville, FL
|
|
Reliability & Call Performance
|
|
Shared 3rd, Shared 1st
|
|
Shared 1st
|
Miami, FL
|
|
Call Performance
|
|
3rd
|
|
Shared 1st
|
Las Vegas, NV
|
|
Overall Performance
|
|
4th
|
|
Shared 1st
|
Denver, CO
|
|
Speed
|
|
Shared 3rd
|
|
Shared 1st
|
Salt Lake City, UT
|
|
Speed
|
|
Shared 3rd
|
|
Shared 1st
|
Dayton, OH
|
|
Speed
|
|
4th
|
|
1st
|
Atlanta, GA
|
|
Text Performance
|
|
3rd
|
|
Shared 1st
|
Disclaimer: Rankings based on RootMetrics 2nd Half 2014 Mobile
Network Performance Review Report, published February 10, 2015 and 77
RootMetrics (January 1 – April 7, 2015) RootScore Reports for mobile
performance as tested on best available plans and devices on four mobile
networks across all available network types. The RootMetrics award is
not an endorsement of Sprint. Your results may vary. See www.rootmetrics.com
for details.
“In our first half 2015 RootMetrics studies, a selection of top
population metro areas have seen improvements in Sprint’s network
performance, including reliability, call and speed,” said Bill Moore,
CEO of independent mobile analytics firm RootMetrics. “This is great
news for Sprint customers in these areas who are benefiting from the
investment Sprint has made in these markets.”
Outlook
-
The company expects fiscal 2015 Adjusted EBITDA* to be between $6.5
and $6.9 billion.
-
The company expects fiscal 2015 accrued capital expenditures to be
approximately $5 billion, excluding the impact of leased devices sold
through indirect channels.
Conference Call and Webcast
-
Date/Time: 8:30 a.m. ET Tuesday, May 5, 2015
-
Call-in Information
-
U.S./Canada: 866-360-1063 (ID: 21947319)
-
International: 706-679-4164 (ID: 21947319)
-
Webcast available via the Internet at www.sprint.com/investors
-
Additional information about results, including the “Quarterly
Investor Update,” is available on our Investor Relations website
Financial results in the enclosed tables include a predecessor period
related to the results of operations of Sprint Communications, Inc.
(formerly Sprint Nextel) prior to the closing of the SoftBank
transaction on July 10, 2013, and the applicable successor periods. In
order to present financial results in a way that offers investors a more
meaningful comparison of the year-to-date results, we have combined the
2013 results of operations for the predecessor and successor periods.
For additional information, please reference the section titled
Financial Measures. Trended financial performance metrics on a combined
basis can also be found at our Investor Relations website at www.sprint.com/investors.
|
| |
| |
| |
| |
| |
Wireless Operating Statistics (Unaudited) | | | | | | | | | | |
| |
Quarter To Date
| |
Year To Date
|
| |
3/31/15
|
|
|
12/31/14
|
|
|
3/31/14
|
| |
3/31/15
|
|
|
3/31/14
|
|
Net Additions (Losses) (in thousands) | | | | | | | | | | |
Sprint platform:
| | | | | | | | | | |
Postpaid (2) | |
211
| | |
30
| | |
(231
|
)
| |
(212
|
)
| |
(339
|
)
|
Prepaid (3) | |
546
| | |
410
| | |
(364
|
)
| |
449
| | |
(444
|
)
|
Wholesale and affiliate
|
|
492
|
|
|
527
|
|
|
212
|
| |
2,349
|
|
|
467
|
|
Total Sprint platform
| |
1,249
| | |
967
| | |
(383
|
)
| |
2,586
| | |
(316
|
)
|
Nextel platform:
| | | | | | | | | | |
Postpaid (2) | |
-
| | |
-
| | |
-
| | |
-
| | |
(1,060
|
)
|
Prepaid (3) |
|
-
|
|
|
-
|
|
|
-
|
| |
-
|
|
|
(255
|
)
|
Total Nextel platform
| |
-
| | |
-
| | |
-
| | |
-
| | |
(1,315
|
)
|
Transactions:
| | | | | | | | | | |
Postpaid (2) | |
(41
|
)
| |
(49
|
)
| |
(102
|
)
| |
(218
|
)
| |
(583
|
)
|
Prepaid (3) | |
(18
|
)
| |
(39
|
)
| |
(51
|
)
| |
(189
|
)
| |
(230
|
)
|
Wholesale
|
|
22
|
|
|
13
|
|
|
69
|
| |
75
|
|
|
107
|
|
Total transactions
| |
(37
|
)
| |
(75
|
)
| |
(84
|
)
| |
(332
|
)
| |
(706
|
)
|
| | | | | | | | | |
|
Total retail postpaid net additions (losses)
| |
170
| | |
(19
|
)
| |
(333
|
)
| |
(430
|
)
| |
(1,982
|
)
|
Total retail prepaid net additions (losses)
| |
528
| | |
371
| | |
(415
|
)
| |
260
| | |
(929
|
)
|
Total wholesale and affiliate net additions
|
|
514
|
|
|
540
|
|
|
281
|
| |
2,424
|
|
|
574
|
|
Total Wireless Net Additions (Losses) |
| 1,212 |
|
| 892 |
|
| (467 | ) | | 2,254 |
|
| (2,337 | ) |
| | | | | | | | | |
|
End of Period Connections (in thousands) | | | | | | | | | | |
Sprint platform:
| | | | | | | | | | |
Postpaid (2) | |
29,706
| | |
29,495
| | |
29,918
| | |
29,706
| | |
29,918
| |
Prepaid (3) | |
15,706
| | |
15,160
| | |
15,257
| | |
15,706
| | |
15,257
| |
Wholesale and affiliate
|
|
10,725
|
|
|
10,233
|
|
|
8,376
|
| |
10,725
|
|
|
8,376
|
|
Total Sprint platform
| |
56,137
| | |
54,888
| | |
53,551
| | |
56,137
| | |
53,551
| |
Nextel platform:
| | | | | | | | | | |
Postpaid (2) | |
-
| | |
-
| | |
-
| | |
-
| | |
-
| |
Prepaid (3) |
|
-
|
|
|
-
|
|
|
-
|
| |
-
|
|
|
-
|
|
Total Nextel platform
| |
-
| | |
-
| | |
-
| | |
-
| | |
-
| |
Transactions: (a) | | | | | | | | | | |
Postpaid (2) | |
368
| | |
409
| | |
586
| | |
368
| | |
586
| |
Prepaid (3) | |
361
| | |
379
| | |
550
| | |
361
| | |
550
| |
Wholesale
|
|
275
|
|
|
253
|
|
|
200
|
| |
275
|
|
|
200
|
|
Total transactions
| |
1,004
| | |
1,041
| | |
1,336
| | |
1,004
| | |
1,336
| |
| | | | | | | | | |
|
Total retail postpaid end of period connections
| |
30,074
| | |
29,904
| | |
30,504
| | |
30,074
| | |
30,504
| |
Total retail prepaid end of period connections
| |
16,067
| | |
15,539
| | |
15,807
| | |
16,067
| | |
15,807
| |
Total wholesale and affiliate end of period connections
|
|
11,000
|
|
|
10,486
|
|
|
8,576
|
| |
11,000
|
|
|
8,576
|
|
Total End of Period Connections |
| 57,141 |
|
| 55,929 |
|
| 54,887 |
| | 57,141 |
|
| 54,887 |
|
| | | | | | | | | |
|
Supplemental Data - Connected Devices | | | | | | | | | | |
End of Period Connections (in thousands) | | | | | | | | | | |
Retail postpaid
| |
1,320
| | |
1,180
| | |
968
| | |
1,320
| | |
968
| |
Wholesale and affiliate
|
|
5,832
|
|
|
5,175
|
|
|
3,882
|
| |
5,832
|
|
|
3,882
|
|
Total |
| 7,152 |
|
| 6,355 |
|
| 4,850 |
| | 7,152 |
|
| 4,850 |
|
| | | | | | | | | |
|
| | | | | | | | | |
|
Churn | | | | | | | | | | |
Sprint platform:
| | | | | | | | | | |
Postpaid
| |
1.84
|
%
| |
2.30
|
%
| |
2.11
|
%
| |
2.09
|
%
| |
2.00
|
%
|
Prepaid
| |
3.84
|
%
| |
3.94
|
%
| |
4.33
|
%
| |
3.99
|
%
| |
4.04
|
%
|
Nextel platform:
| | | | | | | | | | |
Postpaid
| |
-
| | |
-
| | |
-
| | |
-
| | |
33.90
|
%
|
Prepaid
| |
-
| | |
-
| | |
-
| | |
-
| | |
32.13
|
%
|
Transactions: (a) | | | | | | | | | | |
Postpaid
| |
3.87
|
%
| |
4.09
|
%
| |
5.48
|
%
| |
4.21
|
%
| |
7.05
|
%
|
Prepaid
| |
3.77
|
%
| |
4.95
|
%
| |
5.11
|
%
| |
5.28
|
%
| |
7.58
|
%
|
| | | | | | | | | |
|
Total retail postpaid churn
| |
1.87
|
%
| |
2.33
|
%
| |
2.18
|
%
| |
2.13
|
%
| |
2.26
|
%
|
Total retail prepaid churn
| |
3.84
|
%
| |
3.97
|
%
| |
4.35
|
%
| |
4.03
|
%
| |
4.21
|
%
|
| | | | | | | | | |
|
Nextel Platform Connection Recaptures | | | | | | | | | | |
Connections (in thousands) (4):
| | | | | | | | | | |
Postpaid
| |
-
| | |
-
| | |
-
| | |
-
| | |
364
| |
Prepaid
| |
-
| | |
-
| | |
-
| | |
-
| | |
101
| |
Rate (5):
| | | | | | | | | | |
Postpaid
| |
-
| | |
-
| | |
-
| | |
-
| | |
34
|
%
|
Prepaid
| |
-
| | |
-
| | |
-
| | |
-
| | |
39
|
%
|
(a) We acquired approximately 352,000 postpaid connections
and 59,000 prepaid connections through the acquisition of assets from
U.S. Cellular when the transaction closed on May 17, 2013. We acquired
approximately 788,000 postpaid connections, 721,000 prepaid connections,
93,000 wholesale connections and transferred 29,000 Sprint wholesale
connections that were originally recognized through our Clearwire MVNO
arrangement to Transactions postpaid connections as a result of the
Clearwire acquisition when the transaction closed on July 9, 2013.
|
| |
| |
| |
| |
| |
| |
Wireless Operating Statistics (Unaudited) (continued) | | | | | | | | | | | | |
|
| Successor | | Predecessor | | Combined (1) |
| |
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
Year
To
Date
| |
101 Days
Ended
| |
Year
To
Date
|
| |
|
3/31/15
|
|
|
12/31/14
|
|
|
3/31/14
|
|
|
3/31/15
|
|
|
3/31/14
| |
|
7/10/13
| |
|
3/31/14
|
ARPU (b) | | | | | | | | | | | | | | |
Sprint platform:
| | | | | | | | | | | | | | |
Postpaid
| |
$
|
56.94
| |
$
|
58.90
| |
$
|
63.52
| |
$
|
59.63
| |
$
|
63.95
| |
$
|
64.25
| |
$
|
64.03
|
Prepaid
| |
$
|
27.50
| |
$
|
27.12
| |
$
|
26.45
| |
$
|
27.30
| |
$
|
26.16
| |
$
|
26.96
| |
$
|
26.38
|
Nextel platform:
| | | | | | | | | | | | | | |
Postpaid
| |
$
|
-
| |
$
|
-
| |
$
|
-
| |
$
|
-
| |
$
|
-
| |
$
|
36.66
| |
$
|
36.66
|
Prepaid
| |
$
|
-
| |
$
|
-
| |
$
|
-
| |
$
|
-
| |
$
|
-
| |
$
|
34.48
| |
$
|
34.48
|
Transactions: (a) | | | | | | | | | | | | | | |
Postpaid
| |
$
|
40.28
| |
$
|
39.85
| |
$
|
37.26
| |
$
|
39.69
| |
$
|
36.99
| |
$
|
56.98
| |
$
|
39.21
|
Prepaid
| |
$
|
46.68
| |
$
|
45.80
| |
$
|
43.80
| |
$
|
45.72
| |
$
|
41.65
| |
$
|
18.26
| |
$
|
42.24
|
| | | | | | | | | | | | | |
|
Total retail postpaid ARPU
| |
$
|
56.72
| |
$
|
58.63
| |
$
|
62.98
| |
$
|
59.32
| |
$
|
63.29
| |
$
|
63.68
| |
$
|
63.42
|
Total retail prepaid ARPU
| |
$
|
27.95
| |
$
|
27.61
| |
$
|
27.07
| |
$
|
27.81
| |
$
|
26.79
| |
$
|
27.01
| |
$
|
26.87
|
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
NON-GAAP RECONCILIATION - AVERAGE BILLINGS PER USER (ABPU)*
(Unaudited) | | | | | | | | |
(Millions, except ABPU*) | | | | | | | | | | | | | | |
| | Successor | | | | | | |
| |
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
| | | | | | |
| |
|
3/31/15
|
|
|
12/31/14
|
|
|
3/31/14
|
|
|
3/31/15
| | | | | | |
ABPU* (c) | | | | | | | | | | | | | | |
Sprint platform service revenue
| |
$
|
5,049
| |
$
|
5,202
| |
$
|
5,719
| |
$
|
21,181
| | | | | | |
Add: Installment plan billings and lease revenue
| |
|
423
|
|
|
288
|
|
|
55
|
|
|
1,041
| | | | | | |
Total for Sprint platform postpaid connections
| |
$
|
5,472
| |
$
|
5,490
| |
$
|
5,774
| |
$
|
22,222
| | | | | | |
| | | | | | | | | | | | | |
|
Sprint platform ABPU*
| |
$
|
61.71
| |
$
|
62.16
| |
$
|
64.13
| |
$
|
62.55
| | | | | | |
(a) We acquired approximately 352,000 postpaid connections
and 59,000 prepaid connections through the acquisition of assets from
U.S. Cellular when the transaction closed on May 17, 2013. We acquired
approximately 788,000 postpaid connections, 721,000 prepaid connections,
93,000 wholesale connections and transferred 29,000 Sprint wholesale
connections that were originally recognized through our Clearwire MVNO
arrangement to Transactions postpaid connections as a result of the
Clearwire acquisition when the transaction closed on July 9, 2013.
(b) ARPU is calculated by dividing service revenue by the sum of the
average number of connections in the applicable service category.
Changes in average monthly service revenue reflect connections for
either the postpaid or prepaid service category who change rate plans,
the level of voice and data usage, the amount of service credits which
are offered to connections, plus the net effect of average monthly
revenue generated by new connections and deactivating connections.
Combined ARPU for the year-to-date March 31, 2014 period aggregates
service revenue for the 101 days ended July 10, 2013 predecessor period
and the year-to-date March 31, 2014 successor period divided by the sum
of the average connections during the year-to-date period.
(c) Sprint platform postpaid ABPU* is calculated by dividing service
revenue earned from customers plus installment plan billings and lease
revenue by the sum of the average number of connections during the
period.
|
| |
| |
| |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | | | | | | |
(Millions, except per Share Data) |
| |
| |
| |
| | | | | | | |
| | Successor | | Predecessor | | Combined (1) |
| |
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
Year
To
Date
| |
101 Days
Ended
| |
Year
To
Date
|
| |
|
3/31/15
|
|
|
|
12/31/14
|
|
|
|
3/31/14
|
|
|
|
3/31/15
|
|
|
|
3/31/14
|
| |
|
7/10/13
|
| |
|
3/31/14
|
|
Net Operating Revenues | | | | | | | | | | | | | | |
Service revenue
| |
$
|
7,138
| | |
$
|
7,272
| | |
$
|
7,876
| | |
$
|
29,542
| | |
$
|
22,970
| | |
$
|
8,915
| | |
$
|
31,885
| |
Equipment revenue
|
|
|
1,144
|
|
|
|
1,701
|
|
|
|
999
|
|
|
|
4,990
|
|
|
|
2,796
|
| |
|
894
|
| |
|
3,690
|
|
Total Net Operating Revenues |
|
| 8,282 |
|
|
| 8,973 |
|
|
| 8,875 |
|
|
| 34,532 |
|
|
| 25,766 |
| |
| 9,809 |
| |
| 35,575 |
|
Net Operating Expenses | | | | | | | | | | | | | | |
Cost of services
| | |
2,381
| | | |
2,330
| | | |
2,622
| | | |
9,660
| | | |
7,796
| | | |
3,033
| | | |
10,829
| |
Cost of products
| | |
1,827
| | | |
2,952
| | | |
2,038
| | | |
9,309
| | | |
6,641
| | | |
2,579
| | | |
9,220
| |
Selling, general and administrative
| | |
2,331
| | | |
2,647
| | | |
2,371
| | | |
9,563
| | | |
7,198
| | | |
2,731
| | | |
9,929
| |
Depreciation and amortization
| | |
1,454
| | | |
1,320
| | | |
1,297
| | | |
5,349
| | | |
4,231
| | | |
1,753
| | | |
5,984
| |
Impairments (6) | | |
-
| | | |
2,133
| | | |
75
| | | |
2,133
| | | |
75
| | | |
-
| | | |
75
| |
Other, net
|
|
|
(29
|
)
|
|
|
131
|
|
|
|
52
|
|
|
|
413
|
|
|
|
361
|
| |
|
627
|
| |
|
988
|
|
Total net operating expenses
|
|
|
7,964
|
|
|
|
11,513
|
|
|
|
8,455
|
|
|
|
36,427
|
|
|
|
26,302
|
| |
|
10,723
|
| |
|
37,025
|
|
Operating Income (Loss) |
|
| 318 |
|
|
| (2,540 | ) |
|
| 420 |
|
|
| (1,895 | ) |
|
| (536 | ) | |
| (914 | ) | |
| (1,450 | ) |
Interest expense
|
|
|
(523
|
)
|
|
|
(506
|
)
|
|
|
(516
|
)
|
|
|
(2,051
|
)
|
|
|
(1,434
|
)
| |
|
(703
|
)
| |
|
(2,137
|
)
|
Equity in earnings of unconsolidated investments and other, net
|
|
|
8
|
|
|
|
10
|
|
|
|
1
|
|
|
|
27
|
|
|
|
68
|
| |
|
2,665
|
| |
|
2,733
|
|
(Loss) Income before Income Taxes |
|
| (197 | ) |
|
| (3,036 | ) |
|
| (95 | ) |
|
| (3,919 | ) |
|
| (1,902 | ) | |
| 1,048 |
| |
| (854 | ) |
Income tax (expense) benefit
|
|
|
(27
|
)
|
|
|
657
|
|
|
|
(56
|
)
|
|
|
574
|
|
|
|
(100
|
)
| |
|
(1,563
|
)
| |
|
(1,663
|
)
|
Net Loss |
| $ | (224 | ) |
| $ | (2,379 | ) |
| $ | (151 | ) |
| $ | (3,345 | ) |
| $ | (2,002 | ) | | $ | (515 | ) | | $ | (2,517 | ) |
|
|
|
|
|
|
|
|
|
|
| |
| |
|
Basic Net Loss Per Common Share |
| $ | (0.06 | ) |
| $ | (0.60 | ) |
| $ | (0.04 | ) |
| $ | (0.85 | ) |
| $ | (0.54 | ) | | $ | (0.17 | ) | |
| NM |
|
Diluted Net Loss Per Common Share |
| $ | (0.06 | ) |
| $ | (0.60 | ) |
| $ | (0.04 | ) |
| $ | (0.85 | ) |
| $ | (0.54 | ) | | $ | (0.17 | ) | |
| NM |
|
Basic Weighted Average Common Shares outstanding
|
|
|
3,962
|
|
|
|
3,957
|
|
|
|
3,949
|
|
|
|
3,953
|
|
|
|
3,693
|
| |
|
3,038
|
| |
|
NM
|
|
Diluted Weighted Average Common Shares outstanding
|
|
|
3,962
|
|
|
|
3,957
|
|
|
|
3,949
|
|
|
|
3,953
|
|
|
|
3,693
|
| |
|
3,038
|
| |
|
NM
|
|
| | | | | | | | | | | | | |
|
Effective Tax Rate |
|
| -13.7 | % |
|
| 21.6 | % |
|
| -58.9 | % |
|
| 14.6 | % |
|
| -5.3 | % | |
| 149.1 | % | |
| NM |
|
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
NON-GAAP RECONCILIATION - NET LOSS TO ADJUSTED EBITDA* (Unaudited) | | | | | | | | | | |
(Millions) | | | | | | | | | | | | | | |
| | Successor | | Predecessor | | Combined (1) |
| |
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
Year
To
Date
| |
101 Days
Ended
| |
Year
To
Date
|
| |
|
3/31/15
|
|
|
|
12/31/14
|
|
|
|
3/31/14
|
|
|
|
3/31/15
|
|
|
|
3/31/14
|
| |
|
7/10/13
|
| |
|
3/31/14
|
|
| | | | | | | | | | | | | |
|
Net Loss |
| $ | (224 | ) |
| $ | (2,379 | ) |
| $ | (151 | ) |
| $ | (3,345 | ) |
| $ | (2,002 | ) | | $ | (515 | ) | | $ | (2,517 | ) |
Income tax expense (benefit)
|
|
|
27
|
|
|
|
(657
|
)
|
|
|
56
|
|
|
|
(574
|
)
|
|
|
100
|
| |
|
1,563
|
| |
|
1,663
|
|
(Loss) Income before Income Taxes | | | (197 | ) | | | (3,036 | ) | | | (95 | ) | | | (3,919 | ) | | | (1,902 | ) | | | 1,048 | | | | (854 | ) |
Equity in earnings of unconsolidated investments and other, net
| | |
(8
|
)
| | |
(10
|
)
| | |
(1
|
)
| | |
(27
|
)
| | |
(68
|
)
| | |
(2,665
|
)
| | |
(2,733
|
)
|
Interest expense
|
|
|
523
|
|
|
|
506
|
|
|
|
516
|
|
|
|
2,051
|
|
|
|
1,434
|
| |
|
703
|
| |
|
2,137
|
|
Operating Income (Loss) |
|
| 318 |
|
|
| (2,540 | ) |
|
| 420 |
|
|
| (1,895 | ) |
|
| (536 | ) | |
| (914 | ) | |
| (1,450 | ) |
Depreciation and amortization
|
|
|
1,454
|
|
|
|
1,320
|
|
|
|
1,297
|
|
|
|
5,349
|
|
|
|
4,231
|
| |
|
1,753
|
| |
|
5,984
|
|
EBITDA* |
|
| 1,772 |
|
|
| (1,220 | ) |
|
| 1,717 |
|
|
| 3,454 |
|
|
| 3,695 |
| |
| 839 |
| |
| 4,534 |
|
Severance and exit costs (7) | | |
(29
|
)
| | |
22
| | | |
52
| | | |
304
| | | |
361
| | | |
627
| | | |
988
| |
Impairments (6) | | |
-
| | | |
2,133
| | | |
75
| | | |
2,133
| | | |
75
| | | |
-
| | | |
75
| |
Litigation (8) | | |
-
| | | |
91
| | | |
-
| | | |
91
| | | |
-
| | | |
-
| | | |
-
| |
Business combinations (9) | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
100
| | | |
53
| | | |
153
| |
Partial pension settlement (10) | | |
-
| | | |
59
| | | |
-
| | | |
59
| | | |
-
| | | |
-
| | | |
-
| |
Release of assumed liability - U.S. Cellular asset acquisition (11) | | |
-
| | | |
(41
|
)
| | |
-
| | | |
(41
|
)
| | |
-
| | | |
-
| | | |
-
| |
Hurricane Sandy (12) |
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7
|
)
| |
|
-
|
| |
|
(7
|
)
|
Adjusted EBITDA* |
| $ | 1,743 |
|
| $ | 1,044 |
|
| $ | 1,844 |
|
| $ | 6,000 |
|
| $ | 4,224 |
| | $ | 1,519 |
| | $ | 5,743 |
|
| | | | | | | | | | | | | |
|
Adjusted EBITDA Margin* | | | 24.4 | % | | | 14.4 | % | | | 23.4 | % | | | 20.3 | % | | | 18.4 | % | | | 17.0 | % | | | 18.0 | % |
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
Selected items: | | | | | | | | | | | | | | |
Increase in deferred tax asset valuation allowance
| |
$
|
114
| | |
$
|
500
| | |
$
|
82
| | |
$
|
911
| | |
$
|
790
| | |
$
|
1,145
| | |
$
|
1,935
| |
Accrued capital expenditures
| |
$
|
1,422
| | |
$
|
1,827
| | |
$
|
1,057
| | |
$
|
6,182
| | |
$
|
4,624
| | |
$
|
2,072
| | |
$
|
6,696
| |
Cash paid for capital expenditures
| |
$
|
2,047
| | |
$
|
1,568
| | |
$
|
1,488
| | |
$
|
6,004
| | |
$
|
5,335
| | |
$
|
1,759
| | |
$
|
7,094
| |
| | | | | | | | | | | | | |
|
|
| |
| |
| |
| |
| |
WIRELESS STATEMENTS OF OPERATIONS (Unaudited) | | | | | | | | | | |
(Millions) |
| |
| | | | | | | | | | | |
| | Successor | | Predecessor | | Combined (1) |
| |
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
Year
To
Date
| |
101 Days
Ended
| |
Year
To
Date
|
| |
|
3/31/15
|
|
|
|
12/31/14
|
|
|
|
3/31/14
|
|
|
|
3/31/15
|
|
|
|
3/31/14
|
| |
|
7/10/13
|
| |
|
3/31/14
|
|
Net Operating Revenues | | | | | | | | | | | | | | |
Service revenue
| | | | | | | | | | | | | | |
Sprint platform:
| | | | | | | | | | | | | | |
Postpaid (2) | |
$
|
5,049
| | |
$
|
5,202
| | |
$
|
5,719
| | |
$
|
21,181
| | |
$
|
16,702
| | |
$
|
6,469
| | |
$
|
23,171
| |
Prepaid (3) | | |
1,272
| | | |
1,215
| | | |
1,232
| | | |
4,905
| | | |
3,497
| | | |
1,408
| | | |
4,905
| |
Wholesale, affiliate and other
|
|
|
189
|
|
|
|
191
|
|
|
|
145
|
|
|
|
724
|
|
|
|
393
|
| |
|
146
|
| |
|
539
|
|
Total Sprint platform
|
|
|
6,510
|
|
|
|
6,608
|
|
|
|
7,096
|
|
|
|
26,810
|
|
|
|
20,592
|
| |
|
8,023
|
| |
|
28,615
|
|
Nextel platform:
| | | | | | | | | | | | | | |
Postpaid (2) | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
74
| | | |
74
| |
Prepaid (3) |
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
| |
|
17
|
| |
|
17
|
|
Total Nextel platform
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
| |
|
91
|
| |
|
91
|
|
Transactions:
| | | | | | | | | | | | | | |
Postpaid (2) | | |
47
| | | |
52
| | | |
70
| | | |
222
| | | |
240
| | | |
26
| | | |
266
| |
Prepaid (3) | | |
52
| | | |
54
| | | |
75
| | | |
236
| | | |
236
| | | |
2
| | | |
238
| |
Wholesale
|
|
|
19
|
|
|
|
18
|
|
|
|
14
|
|
|
|
69
|
|
|
|
32
|
| |
|
-
|
| |
|
32
|
|
Total transactions
|
|
|
118
|
|
|
|
124
|
|
|
|
159
|
|
|
|
527
|
|
|
|
508
|
| |
|
28
|
| |
|
536
|
|
| | | | | | | | | | | | | |
|
Equipment revenue
|
|
|
1,144
|
|
|
|
1,701
|
|
|
|
999
|
|
|
|
4,990
|
|
|
|
2,796
|
| |
|
894
|
| |
|
3,690
|
|
Total net operating revenues |
|
| 7,772 |
|
|
| 8,433 |
|
|
| 8,254 |
|
|
| 32,327 |
|
|
| 23,896 |
| |
| 9,036 |
| |
| 32,932 |
|
| | | | | | | | | | | | | |
|
Net Operating Expenses | | | | | | | | | | | | | | |
Cost of services
| | |
2,006
| | | |
1,902
| | | |
2,106
| | | |
7,945
| | | |
6,441
| | | |
2,532
| | | |
8,973
| |
Cost of products
| | |
1,827
| | | |
2,952
| | | |
2,038
| | | |
9,309
| | | |
6,641
| | | |
2,579
| | | |
9,220
| |
Selling, general and administrative
| | |
2,242
| | | |
2,545
| | | |
2,273
| | | |
9,179
| | | |
6,817
| | | |
2,550
| | | |
9,367
| |
Depreciation and amortization
| | |
1,406
| | | |
1,259
| | | |
1,224
| | | |
5,109
| | | |
4,032
| | | |
1,636
| | | |
5,668
| |
Impairments (6) | | |
-
| | | |
1,900
| | | |
72
| | | |
1,900
| | | |
72
| | | |
-
| | | |
72
| |
Other, net
|
|
|
(29
|
)
|
|
|
107
|
|
|
|
51
|
|
|
|
349
|
|
|
|
331
|
| |
|
627
|
| |
|
958
|
|
Total net operating expenses
|
|
|
7,452
|
|
|
|
10,665
|
|
|
|
7,764
|
|
|
|
33,791
|
|
|
|
24,334
|
| |
|
9,924
|
| |
|
34,258
|
|
Operating Income (Loss) |
| $ | 320 |
|
| $ | (2,232 | ) |
| $ | 490 |
|
| $ | (1,464 | ) |
| $ | (438 | ) | | $ | (888 | ) | | $ | (1,326 | ) |
| | | | | | | | | | | | | |
|
Supplemental Revenue Data | | | | | | | | | | | | | | |
Total retail service revenue
| |
$
|
6,420
| | |
$
|
6,523
| | |
$
|
7,096
| | |
$
|
26,544
| | |
$
|
20,675
| | |
$
|
7,996
| | |
$
|
28,671
| |
Total service revenue
| |
$
|
6,628
| | |
$
|
6,732
| | |
$
|
7,255
| | |
$
|
27,337
| | |
$
|
21,100
| | |
$
|
8,142
| | |
$
|
29,242
| |
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
WIRELESS NON-GAAP RECONCILIATION (Unaudited) | | | | | | | | | | | | |
(Millions) | | | | | | | | | | | | | | |
| | Successor | | Predecessor | | Combined (1) |
| |
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
Year
To
Date
| |
101 Days
Ended
| |
Year
To
Date
|
| |
|
3/31/15
|
|
|
|
12/31/14
|
|
|
|
3/31/14
|
|
|
|
3/31/15
|
|
|
|
3/31/14
|
| |
|
7/10/13
|
| |
|
3/31/14
|
|
| | | | | | | | | | | | | |
|
Operating Income (Loss) | | $ | 320 | | | $ | (2,232 | ) | | $ | 490 | | | $ | (1,464 | ) | | $ | (438 | ) | | $ | (888 | ) | | $ | (1,326 | ) |
Severance and exit costs (7) | | |
(29
|
)
| | |
21
| | | |
51
| | | |
263
| | | |
331
| | | |
627
| | | |
958
| |
Impairments (6) | | |
-
| | | |
1,900
| | | |
72
| | | |
1,900
| | | |
72
| | | |
-
| | | |
72
| |
Litigation (8) | | |
-
| | | |
84
| | | |
-
| | | |
84
| | | |
-
| | | |
-
| | | |
-
| |
Business combinations (9) | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
25
| | | |
-
| | | |
25
| |
Partial pension settlement (10) | | |
-
| | | |
43
| | | |
-
| | | |
43
| | | |
-
| | | |
-
| | | |
-
| |
Release of assumed liability - U.S. Cellular asset acquisition (11) | | |
-
| | | |
(41
|
)
| | |
-
| | | |
(41
|
)
| | |
-
| | | |
-
| | | |
-
| |
Hurricane Sandy (12) | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
(7
|
)
| | |
-
| | | |
(7
|
)
|
Depreciation and amortization
|
|
|
1,406
|
|
|
|
1,259
|
|
|
|
1,224
|
|
|
|
5,109
|
|
|
|
4,032
|
| |
|
1,636
|
| |
|
5,668
|
|
Adjusted EBITDA* |
| $ | 1,697 |
|
| $ | 1,034 |
|
| $ | 1,837 |
|
| $ | 5,894 |
|
| $ | 4,015 |
| | $ | 1,375 |
| | $ | 5,390 |
|
| | | | | | | | | | | | | |
|
Adjusted EBITDA Margin* | | | 25.6 | % | | | 15.4 | % | | | 25.3 | % | | | 21.6 | % | | | 19.0 | % | | | 16.9 | % | | | 18.4 | % |
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
Selected items: | | | | | | | | | | | | | | |
Accrued capital expenditures
| |
$
|
1,343
| | |
$
|
1,616
| | |
$
|
930
| | |
$
|
5,589
| | |
$
|
4,173
| | |
$
|
1,884
| | |
$
|
6,057
| |
Cash paid for capital expenditures
| |
$
|
1,957
| | |
$
|
1,376
| | |
$
|
1,343
| | |
$
|
5,442
| | |
$
|
4,878
| | |
$
|
1,570
| | |
$
|
6,448
| |
| | | | | | | | | | | | | |
|
|
| |
| |
| |
| |
| |
WIRELINE STATEMENTS OF OPERATIONS (Unaudited) | | | | | | | | | | |
(Millions) |
| |
| | | | | | | | | | | |
| | Successor | | Predecessor | | Combined (1) |
| |
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
Year
To
Date
| |
101 Days
Ended
| |
Year
To
Date
|
| |
|
3/31/15
|
|
|
|
12/31/14
|
|
|
|
3/31/14
|
|
|
|
3/31/15
|
|
|
|
3/31/14
|
| |
|
7/10/13
|
| |
|
3/31/14
|
|
Net Operating Revenues | | | | | | | | | | | | | | |
Voice
| |
$
|
264
| | |
$
|
289
| | |
$
|
352
| | |
$
|
1,174
| | |
$
|
1,071
| | |
$
|
419
| | |
$
|
1,490
| |
Data
| | |
52
| | | |
52
| | | |
62
| | | |
213
| | | |
200
| | | |
94
| | | |
294
| |
Internet
| | |
335
| | | |
333
| | | |
345
| | | |
1,353
| | | |
1,092
| | | |
479
| | | |
1,571
| |
Other
|
|
|
17
|
|
|
|
18
|
|
|
|
11
|
|
|
|
74
|
|
|
|
43
|
| |
|
16
|
| |
|
59
|
|
Total net operating revenues |
|
| 668 |
|
|
| 692 |
|
|
| 770 |
|
|
| 2,814 |
|
|
| 2,406 |
| |
| 1,008 |
| |
| 3,414 |
|
| | | | | | | | | | | | | |
|
Net Operating Expenses | | | | | | | | | | | | | | |
Costs of services
| | |
538
| | | |
581
| | | |
668
| | | |
2,338
| | | |
1,903
| | | |
741
| | | |
2,644
| |
Selling, general and administrative
| | |
90
| | | |
100
| | | |
90
| | | |
363
| | | |
269
| | | |
123
| | | |
392
| |
Depreciation and amortization
| | |
46
| | | |
59
| | | |
69
| | | |
232
| | | |
192
| | | |
115
| | | |
307
| |
Impairments (6) | | |
-
| | | |
233
| | | |
3
| | | |
233
| | | |
3
| | | |
-
| | | |
3
| |
Other, net
|
|
|
(2
|
)
|
|
|
24
|
|
|
|
2
|
|
|
|
61
|
|
|
|
32
|
| |
|
-
|
| |
|
32
|
|
Total net operating expenses
|
|
|
672
|
|
|
|
997
|
|
|
|
832
|
|
|
|
3,227
|
|
|
|
2,399
|
| |
|
979
|
| |
|
3,378
|
|
Operating (Loss) Income |
| $ | (4 | ) |
| $ | (305 | ) |
| $ | (62 | ) |
| $ | (413 | ) |
| $ | 7 |
| | $ | 29 |
| | $ | 36 |
|
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
WIRELINE NON-GAAP RECONCILIATION (Unaudited) | | | | | | | | | | | | | | |
(Millions) | | | | | | | | | | | | | | |
| | Successor | | Predecessor | | Combined (1) |
| |
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
Year
To
Date
| |
101 Days
Ended
| |
Year
To
Date
|
| |
|
3/31/15
|
|
|
|
12/31/14
|
|
|
|
3/31/14
|
|
|
|
3/31/15
|
|
|
|
3/31/14
|
| |
|
7/10/13
|
| |
|
3/31/14
|
|
| | | | | | | | | | | | | |
|
Operating (Loss) Income | | $ | (4 | ) | | $ | (305 | ) | | $ | (62 | ) | | $ | (413 | ) | | $ | 7 | | | $ | 29 | | | $ | 36 | |
Severance and exit costs (7) | | |
(2
|
)
| | |
2
| | | |
2
| | | |
39
| | | |
32
| | | |
-
| | | |
32
| |
Impairments (6) | | |
-
| | | |
233
| | | |
3
| | | |
233
| | | |
3
| | | |
-
| | | |
3
| |
Litigation (8) | | |
-
| | | |
6
| | | |
-
| | | |
6
| | | |
-
| | | |
-
| | | |
-
| |
Partial pension settlement (10) | | |
-
| | | |
16
| | | |
-
| | | |
16
| | | |
-
| | | |
-
| | | |
-
| |
Depreciation and amortization
|
|
|
46
|
|
|
|
59
|
|
|
|
69
|
|
|
|
232
|
|
|
|
192
|
| |
|
115
|
| |
|
307
|
|
Adjusted EBITDA* |
| $ | 40 |
|
| $ | 11 |
|
| $ | 12 |
|
| $ | 113 |
|
| $ | 234 |
| | $ | 144 |
| | $ | 378 |
|
| | | | | | | | | | | | | |
|
Adjusted EBITDA Margin* | | | 6.0 | % | | | 1.6 | % | | | 1.6 | % | | | 4.0 | % | | | 9.7 | % | | | 14.3 | % | | | 11.1 | % |
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
Selected items: | | | | | | | | | | | | | | |
Accrued capital expenditures
| |
$
|
68
| | |
$
|
70
| | |
$
|
72
| | |
$
|
278
| | |
$
|
227
| | |
$
|
104
| | |
$
|
331
| |
Cash paid for capital expenditures
| |
$
|
70
| | |
$
|
81
| | |
$
|
79
| | |
$
|
275
| | |
$
|
232
| | |
$
|
110
| | |
$
|
342
| |
| | | | | | | | | | | | | |
|
|
| |
| |
| |
| |
CONDENSED CONSOLIDATED CASH FLOW INFORMATION (Unaudited) | | | | | | | | |
(Millions) |
| |
| |
| | | Successor | | Predecessor | | Combined (1) |
| | | | | | | |
Year
To
Date
|
|
Year
To
Date
| |
101 Days
Ended
| |
Year
To
Date
|
| | | | | | | | |
3/31/15
| | | |
3/31/14
| | | |
7/10/13
| | | |
3/31/14
| |
Operating Activities | | | | | | | | | | | | | | |
Net loss
| | | | | | | |
$
|
(3,345
|
)
| |
$
|
(2,002
|
)
| |
$
|
(515
|
)
| |
$
|
(2,517
|
)
|
Impairments (6) | | | | | | | | |
2,133
| | | |
75
| | | |
-
| | | |
75
| |
Depreciation and amortization
| | | | | | | | |
5,349
| | | |
4,231
| | | |
1,753
| | | |
5,984
| |
Provision for losses on accounts receivable
| | | | | | | | |
892
| | | |
414
| | | |
111
| | | |
525
| |
Share-based and long-term incentive compensation expense
| | | | | | |
86
| | | |
133
| | | |
20
| | | |
153
| |
Deferred income tax (benefit) expense
| | | | | | | | |
(609
|
)
| | |
79
| | | |
1,562
| | | |
1,641
| |
Gain on previously-held equity interests
| | | | | | | | |
-
| | | |
-
| | | |
(2,926
|
)
| | |
(2,926
|
)
|
Equity in losses of unconsolidated investments, net
| | | | | | | | |
-
| | | |
-
| | | |
280
| | | |
280
| |
Amortization and accretion of long-term debt premiums and discounts,
net
| | | | |
(303
|
)
| | |
(234
|
)
| | |
(5
|
)
| | |
(239
|
)
|
Other working capital changes, net
| | | | | | | | |
(1,736
|
)
| | |
(1,470
|
)
| | |
1,004
| | | |
(466
|
)
|
Other, net
|
|
|
|
|
|
|
|
|
(17
|
)
|
|
|
(763
|
)
| |
|
447
|
| |
|
(316
|
)
|
Net cash provided by operating activities |
|
|
|
|
|
|
|
| 2,450 |
|
|
| 463 |
| |
| 1,731 |
| |
| 2,194 |
|
| | | | | | | | | | | | | |
|
Investing Activities | | | | | | | | | | | | | | |
Capital expenditures
| | | | | | | | |
(6,004
|
)
| | |
(5,335
|
)
| | |
(1,759
|
)
| | |
(7,094
|
)
|
Expenditures relating to FCC licenses
| | | | | | | | |
(163
|
)
| | |
(298
|
)
| | |
(70
|
)
| | |
(368
|
)
|
Reimbursements relating to FCC licenses
| | | | | | | | |
95
| | | |
-
| | | |
-
| | | |
-
| |
Change in short-term investments, net
| | | | | | | | |
1,054
| | | |
(119
|
)
| | |
869
| | | |
750
| |
Acquisitions, net of cash acquired
| | | | | | | | |
-
| | | |
(14,112
|
)
| | |
(4,039
|
)
| | |
(18,151
|
)
|
Investment in Clearwire (including debt securities)
| | | | | | | | |
-
| | | |
-
| | | |
(228
|
)
| | |
(228
|
)
|
Proceeds from sales of assets and FCC licenses
| | | | | | | | |
315
| | | |
8
| | | |
4
| | | |
12
| |
Other, net
|
|
|
|
|
|
|
|
|
(11
|
)
|
|
|
(8
|
)
| |
|
(4
|
)
| |
|
(12
|
)
|
Net cash used in investing activities |
|
|
|
|
|
|
|
| (4,714 | ) |
|
| (19,864 | ) | |
| (5,227 | ) | |
| (25,091 | ) |
| | | | | | | | | | | | | |
|
Financing Activities | | | | | | | | | | | | | | |
Proceeds from debt and financings
| | | | | | | | |
1,930
| | | |
9,500
| | | |
-
| | | |
9,500
| |
Debt financing costs
| | | | | | | | |
(87
|
)
| | |
(148
|
)
| | |
(1
|
)
| | |
(149
|
)
|
Repayments of debt, financing and capital lease obligations
| | | | | | |
(574
|
)
| | |
(3,537
|
)
| | |
(303
|
)
| | |
(3,840
|
)
|
Proceeds from issuance of common stock and warrants, net
| | | | | | |
35
| | | |
18,567
| | | |
53
| | | |
18,620
| |
Other, net
|
|
|
|
|
|
|
|
|
-
|
|
|
|
(14
|
)
| |
|
-
|
| |
|
(14
|
)
|
Net cash provided by (used in) financing activities |
|
|
|
|
|
|
|
| 1,304 |
|
|
| 24,368 |
| |
| (251 | ) | |
| 24,117 |
|
| | | | | | | | | | | | | |
|
Net (Decrease) Increase in Cash and Cash Equivalents | | | | | | | (960 | ) | | | 4,967 | | | | (3,747 | ) | | | 1,220 | |
| | | | | | | | | | | | | |
|
Cash and Cash Equivalents, beginning of period |
|
|
|
|
|
|
|
| 4,970 |
|
|
| 3 |
| |
| 6,275 |
| |
| 3,750 |
|
| | | | | | | | | | | | | |
|
Cash and Cash Equivalents, end of period | | | | | | | | $ | 4,010 | | | $ | 4,970 | | | $ | 2,528 | | | $ | 4,970 | |
| | | | | | | | | | | | | |
|
| | | | | | | | | | | | | |
|
RECONCILIATION TO CONSOLIDATED FREE CASH FLOW* (NON-GAAP)
(Unaudited) | | | | |
| | | | | | | | | | | | | |
|
(Millions) | | Successor | | Predecessor | | Combined (1) |
| |
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
Year
To
Date
| |
101 Days
Ended
| |
Year
To
Date
|
| |
|
3/31/15
|
|
|
|
12/31/14
|
|
|
|
3/31/14
|
|
|
|
3/31/15
|
|
|
|
3/31/14
|
| |
|
7/10/13
|
| |
|
3/31/14
|
|
| | | | | | | | | | | | | |
|
Net Cash Provided by (Used in) Operating Activities | | $ | 976 | | | $ | (233 | ) | | $ | 522 | | | $ | 2,450 | | | $ | 463 | | | $ | 1,731 | | | $ | 2,194 | |
| | | | | | | | | | | | | |
|
Capital expenditures
| | |
(2,047
|
)
| | |
(1,568
|
)
| | |
(1,488
|
)
| | |
(6,004
|
)
| | |
(5,335
|
)
| | |
(1,759
|
)
| | |
(7,094
|
)
|
Expenditures relating to FCC licenses, net
| | |
(42
|
)
| | |
(42
|
)
| | |
(152
|
)
| | |
(68
|
)
| | |
(298
|
)
| | |
(70
|
)
| | |
(368
|
)
|
Proceeds from sales of assets and FCC licenses
| | |
201
| | | |
13
| | | |
1
| | | |
315
| | | |
8
| | | |
4
| | | |
12
| |
Other investing activities, net
|
|
|
(2
|
)
|
|
|
(3
|
)
|
|
|
(2
|
)
|
|
|
(11
|
)
|
|
|
(8
|
)
| |
|
(4
|
)
| |
|
(12
|
)
|
Free Cash Flow* |
|
| (914 | ) |
|
| (1,833 | ) |
|
| (1,119 | ) |
|
| (3,318 | ) |
|
| (5,170 | ) | |
| (98 | ) | |
| (5,268 | ) |
| | | | | | | | | | | | | |
|
Debt financing costs
| | |
(50
|
)
| | |
(37
|
)
| | |
(1
|
)
| | |
(87
|
)
| | |
(148
|
)
| | |
(1
|
)
| | |
(149
|
)
|
Increase (decrease) in debt and other, net
| | |
1,446
| | | |
273
| | | |
(159
|
)
| | |
1,356
| | | |
5,963
| | | |
(303
|
)
| | |
5,660
| |
Acquisitions, net of cash acquired
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
(14,112
|
)
| | |
(4,039
|
)
| | |
(18,151
|
)
|
(Payments for) proceeds from issuance of common stock and warrants,
net of payments for shares surrendered for taxes
| | |
(15
|
)
| | |
4
| | | |
-
| | | |
35
| | | |
18,567
| | | |
53
| | | |
18,620
| |
Investment in Clearwire (including debt securities)
| | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
(228
|
)
| | |
(228
|
)
|
Other financing activities, net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(14
|
)
| |
|
-
|
| |
|
(14
|
)
|
Net Increase (Decrease) in Cash, Cash Equivalents and Short-Term Investments |
| $ | 467 |
|
| $ | (1,593 | ) |
| $ | (1,279 | ) |
| $ | (2,014 | ) |
| $ | 5,086 |
| | $ | (4,616 | ) | | $ | 470 |
|
| | | | | | | | | | | | | |
|
|
| |
| |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | | | | |
(Millions) | | | | |
| | Successor |
| |
|
3/31/15
|
|
|
|
3/31/14
|
|
Assets | | | | |
Current assets
| | | | |
Cash and cash equivalents
| |
$
|
4,010
| | |
$
|
4,970
| |
Short-term investments
| | |
166
| | | |
1,220
| |
Accounts and notes receivable, net
| | |
2,290
| | | |
3,607
| |
Device and accessory inventory
| | |
1,359
| | | |
982
| |
Deferred tax assets
| | |
62
| | | |
128
| |
Prepaid expenses and other current assets
|
|
|
1,890
|
|
|
|
672
|
|
Total current assets
| | |
9,777
| | | |
11,579
| |
| | | |
|
Investments and other assets
| | |
1,077
| | | |
892
| |
Property, plant and equipment, net
| | |
19,721
| | | |
16,299
| |
Goodwill
| | |
6,575
| | | |
6,383
| |
FCC licenses and other
| | |
39,987
| | | |
41,978
| |
Definite-lived intangible assets, net
|
|
|
5,893
|
|
|
|
7,558
|
|
Total assets |
| $ | 83,030 |
|
| $ | 84,689 |
|
| | | |
|
Liabilities and Stockholders' Equity | | | | |
Current liabilities
| | | | |
Accounts payable
| |
$
|
4,347
| | |
$
|
3,163
| |
Accrued expenses and other current liabilities
| | |
5,293
| | | |
5,544
| |
Current portion of long-term debt, financing and capital lease
obligations
|
|
|
1,300
|
|
|
|
991
|
|
Total current liabilities
| | |
10,940
| | | |
9,698
| |
| | | |
|
Long-term debt, financing and capital lease obligations
| | |
32,531
| | | |
31,787
| |
Deferred tax liabilities
| | |
13,898
| | | |
14,207
| |
Other liabilities
|
|
|
3,951
|
|
|
|
3,685
|
|
Total liabilities |
|
| 61,320 |
|
|
| 59,377 |
|
| | | |
|
Stockholders' equity
| | | | |
Common shares
| | |
40
| | | |
39
| |
Paid-in capital
| | |
27,468
| | | |
27,354
| |
Treasury shares, at cost
| | |
(7
|
)
| | |
-
| |
Accumulated deficit
| | |
(5,383
|
)
| | |
(2,038
|
)
|
Accumulated other comprehensive loss
|
|
|
(408
|
)
|
|
|
(43
|
)
|
Total stockholders' equity
|
|
|
21,710
|
|
|
|
25,312
|
|
Total liabilities and stockholders' equity |
| $ | 83,030 |
|
| $ | 84,689 |
|
| | | |
|
| | | |
|
NET DEBT* (NON-GAAP) (Unaudited) | | | | |
(Millions) | | | | |
| | Successor |
| |
|
3/31/15
|
|
|
|
3/31/14
|
|
| | | |
|
Total Debt
| |
$
|
33,831
| | |
$
|
32,778
| |
Less: Cash and cash equivalents
| | |
(4,010
|
)
| | |
(4,970
|
)
|
Less: Short-term investments
|
|
|
(166
|
)
|
|
|
(1,220
|
)
|
Net Debt* |
| $ | 29,655 |
|
| $ | 26,588 |
|
| | | |
|
|
|
| |
| |
| |
SCHEDULE OF DEBT (Unaudited) | | | | | | | |
(Millions) | | | | | | | |
| | | | | | |
|
3/31/15
|
ISSUER | | | COUPON |
| MATURITY |
| PRINCIPAL |
Sprint Corporation | | | | | | | |
7.25% Notes due 2021
| | |
7.250%
| |
09/15/2021
| |
$
|
2,250
|
7.875% Notes due 2023
| | |
7.875%
| |
09/15/2023
| | |
4,250
|
7.125% Notes due 2024
| | |
7.125%
| |
06/15/2024
| | |
2,500
|
7.625% Notes due 2025
|
|
|
7.625%
|
|
02/15/2025
|
|
|
1,500
|
Sprint Corporation |
|
|
|
|
|
|
| 10,500 |
| | | | | | |
|
Sprint Communications, Inc. | | | | | | | |
Export Development Canada Facility (Tranche 2)
| | |
4.080%
| |
12/15/2015
| | |
500
|
Export Development Canada Facility (Tranche 3)
| | |
3.495%
| |
12/17/2019
| | |
300
|
6% Senior Notes due 2016
| | |
6.000%
| |
12/01/2016
| | |
2,000
|
9.125% Senior Notes due 2017
| | |
9.125%
| |
03/01/2017
| | |
1,000
|
8.375% Senior Notes due 2017
| | |
8.375%
| |
08/15/2017
| | |
1,300
|
9% Guaranteed Notes due 2018
| | |
9.000%
| |
11/15/2018
| | |
3,000
|
7% Guaranteed Notes due 2020
| | |
7.000%
| |
03/01/2020
| | |
1,000
|
7% Senior Notes due 2020
| | |
7.000%
| |
08/15/2020
| | |
1,500
|
11.5% Senior Notes due 2021
| | |
11.500%
| |
11/15/2021
| | |
1,000
|
9.25% Debentures due 2022
| | |
9.250%
| |
04/15/2022
| | |
200
|
6% Senior Notes due 2022
|
|
|
6.000%
|
|
11/15/2022
|
|
|
2,280
|
Sprint Communications, Inc. |
|
|
|
|
|
|
| 14,080 |
| | | | | | |
|
Sprint Capital Corporation | | | | | | | |
6.9% Senior Notes due 2019
| | |
6.900%
| |
05/01/2019
| | |
1,729
|
6.875% Senior Notes due 2028
| | |
6.875%
| |
11/15/2028
| | |
2,475
|
8.75% Senior Notes due 2032
|
|
|
8.750%
|
|
03/15/2032
|
|
|
2,000
|
Sprint Capital Corporation |
|
|
|
|
|
|
| 6,204 |
| | | | | | |
|
Clearwire Communications LLC | | | | | | | |
14.75% First-Priority Senior Secured Notes due 2016
| | |
14.750%
| |
12/01/2016
| | |
300
|
8.25% Exchangeable Notes due 2040
|
|
|
8.250%
|
|
12/01/2040
|
|
|
629
|
Clearwire Communications LLC |
|
|
|
|
|
|
| 929 |
| | | | | | |
|
Secured Equipment Credit Facilities | | |
1.853% - 2.204%
| |
2017 - 2022
| | | 610 |
| | | | | | |
|
Tower financing obligation | | |
6.092%
| |
09/30/2021
| | | 275 |
Capital lease obligations and other |
|
|
|
|
2015 - 2023
|
|
| 127 |
TOTAL PRINCIPAL |
|
|
|
|
|
|
| 32,725 |
| | | | | | |
|
Net premiums |
|
|
|
|
|
|
| 1,106 |
TOTAL DEBT |
|
|
|
|
|
| $ | 33,831 |
| | | | | | |
|
|
NOTES TO THE FINANCIAL INFORMATION (Unaudited) |
|
| |
(1) | |
Financial results include a Predecessor period from January 1, 2012,
through the closing of the SoftBank transaction on July 10, 2013,
and a Successor period from October 5, 2012 through March 31, 2014.
In order to present financial results in a way that offers investors
a more meaningful calendar period-to-period comparison, we have
combined results of operations and cash flows for the Predecessor
and Successor periods for the twelve-month period ended March 31,
2014. (See Financial Measures for further information).
|
(2) | |
Postpaid connections on the Sprint platform are defined as retail
postpaid devices with an active line of service on the CDMA network,
including connections utilizing WiMax and LTE technology. Postpaid
connections previously on the Nextel platform are defined as retail
postpaid connections on the iDEN network, which was shut-down on
June 30, 2013. Postpaid connections from transactions are defined as
retail postpaid connections acquired from U.S. Cellular in May 2013
and Clearwire in July 2013 who had not deactivated or been
recaptured on the Sprint platform. Included in Sprint platform net
additions are tablets and connected devices, which generally
generate a significantly lower ARPU than other postpaid connections.
|
(3) | |
Prepaid connections on the Sprint platform are defined as retail
prepaid connections and session-based tablet users who utilize the
CDMA network and WiMax and LTE technology via our multi-brand
offerings. Prepaid connections previously on the Nextel platform are
defined as retail prepaid connections who utilized the iDEN network,
which was shut-down on June 30, 2013. Prepaid connections from
transactions are defined as retail prepaid connections acquired from
U.S. Cellular in May 2013 and Clearwire in July 2013 who had not
deactivated or been recaptured on the Sprint platform.
|
(4) | |
Nextel Connection Recaptures are defined as the number of
connections that deactivated service from the postpaid or prepaid
Nextel platform, as applicable, during each period but remained with
the Company as connections on the postpaid or prepaid Sprint
platform, respectively. Connections that deactivated service from
the Nextel platform and activated service on the Sprint platform are
included in the Sprint platform net additions for the applicable
period.
|
(5) | |
The Postpaid and Prepaid Nextel Recapture Rates are defined as the
portion of total connections that left the postpaid or prepaid
Nextel platform, as applicable, during the period and were retained
on the postpaid or prepaid Sprint platform, respectively.
|
(6) | |
For the third quarter of fiscal year 2014, impairment losses were
recorded after determining that the carrying value exceeded
estimated fair value of both the Sprint trade name and Wireline
asset group, which consists primarily of property, plant and
equipment.
|
(7) | |
Severance and exit costs are primarily associated with work force
reductions and exit costs associated with the Nextel platform and
access terminations and those related to exiting certain operations
of Clearwire.
|
(8) | |
For the third quarter of fiscal year 2014, litigation primarily
includes legal reserves and fees incurred in relation to various
pending legal suits and proceedings.
|
(9) | |
For the second and first quarters of fiscal year 2013, included in
selling, general and administrative expenses are fees paid to
unrelated parties necessary for the transactions with SoftBank and
our acquisition of Clearwire.
|
(10) | |
The partial pension settlement resulted from amounts paid to
eligible terminated participants who voluntarily elected to receive
lump sum distributions as a result of an approved plan amendment to
the Sprint Retirement Pension Plan by the Board of Directors in June
2014.
|
(11) | |
As a result of the U.S. Cellular asset acquisition, we recorded a
liability related to network shut-down costs we agreed to reimburse
U.S. Cellular. During the third quarter of fiscal year 2014, we
identified favorable trends in actual costs and, as a result,
reduced the liability resulting in a gain of approximately $41
million.
|
(12) | |
Hurricane Sandy amounts for the quarter-to-date December 31, 2013
period represent insurance recoveries.
|
| |
|
*FINANCIAL MEASURES
On July 9, 2013, Sprint Communications, Inc. (formerly Sprint Nextel
Corporation) completed its acquisition of Clearwire. On July 10, 2013 we
consummated the SoftBank Merger with Starburst II, which immediately
changed its name to Sprint Corporation (now referred to as the Company
or Sprint). As a result of these transactions, the assets and
liabilities of Sprint Communications, Inc. and Clearwire were adjusted
to fair value on the respective closing dates. The Company's financial
statement presentations herein distinguish between a predecessor period
relating to Sprint Communications, Inc. for periods prior to the
SoftBank Merger (Predecessor) and a successor period (Successor). The
Successor information represents Sprint Corporation, which includes the
activity and accounts of Sprint Communications, Inc. as of and for the
three and twelve-month periods ended March 31, 2015 and the twelve-month
period ended March 31, 2014. The accounts and activity for the successor
periods from October 5, 2012 (date of inception) to December 31, 2012
and from January 1, 2013 to July 10, 2013 consist of the activity of
Starburst II prior to the close of the SoftBank Merger. The Predecessor
information contained herein represents the historical basis of
presentation for Sprint Communications, Inc. for all periods prior to
the SoftBank Merger date on July 10, 2013. As a result of the valuation
of assets acquired and liabilities assumed at fair value at the time of
the SoftBank Merger and Clearwire Acquisition, the financial statements
for the successor period are presented on a measurement basis different
than the predecessor period, which was Sprint Communication Inc.’s
historical cost, and are, therefore, not comparable.
In order to present financial results in a way that offers investors a
more meaningful calendar period-to-period comparison, we have combined
the current and prior year results of operations for the predecessor
with successor results of operations on an unaudited combined basis. The
combined information for the twelve-month period ended March 31, 2014
does not purport to represent what our consolidated results of
operations would have been if the acquisition had occurred as of April
1, 2013.
Sprint provides financial measures determined in accordance with GAAP
and adjusted GAAP (non-GAAP). The non-GAAP financial measures reflect
industry conventions, or standard measures of liquidity, profitability
or performance commonly used by the investment community for
comparability purposes. These measurements should be considered in
addition to, but not as a substitute for, financial information prepared
in accordance with GAAP. Other than the use of non-GAAP combined results
as described above, we have defined below each of the non-GAAP measures
we use, but these measures may not be synonymous to similar measurement
terms used by other companies.
Sprint provides reconciliations of these non-GAAP measures in its
financial reporting. Because Sprint does not predict special items that
might occur in the future, and our forecasts are developed at a level of
detail different than that used to prepare GAAP-based financial
measures, Sprint does not provide reconciliations to GAAP of its
forward-looking financial measures.
The measures used in this release include the following:
EBITDA is operating income/(loss) before depreciation and
amortization. Adjusted EBITDA is EBITDA excluding
severance, exit costs, and other special items. Adjusted EBITDA Margin
represents Adjusted EBITDA divided by non-equipment net operating
revenues for Wireless and Adjusted EBITDA divided by net operating
revenues for Wireline. We believe that Adjusted EBITDA and Adjusted
EBITDA Margin provide useful information to investors because they are
an indicator of the strength and performance of our ongoing business
operations. While depreciation and amortization are considered operating
costs under GAAP, these expenses primarily represent non-cash current
period costs associated with the use of long-lived tangible and
definite-lived intangible assets. Adjusted EBITDA and Adjusted EBITDA
Margin are calculations commonly used as a basis for investors, analysts
and credit rating agencies to evaluate and compare the periodic and
future operating performance and value of companies within the
telecommunications industry.
ABPU is average billings per user and calculated by dividing
service revenue earned from customers plus installment plan billings and
lease revenue by the sum of the average number of connections during the
period. We believe that ABPU provides useful information to investors,
analysts and our management to evaluate average Sprint platform postpaid
customer billings as it approximates the expected cash collections,
including installment plan billings and lease revenue, per user each
month.
Free Cash Flow is the cash provided by operating activities less
the cash used in investing activities other than short-term investments,
including changes in restricted cash, if any, and amounts included as
investments in Clearwire and Sprint Communications, Inc. during the
period, if applicable. We believe that Free Cash Flow provides useful
information to investors, analysts and our management about the cash
generated by our core operations after interest and dividends, if any,
and our ability to fund scheduled debt maturities and other financing
activities, including discretionary refinancing and retirement of debt
and purchase or sale of investments.
Net Debt is consolidated debt, including current maturities, less
cash and cash equivalents, short-term investments and, if any,
restricted cash. We believe that Net Debt provides useful information to
investors, analysts and credit rating agencies about the capacity of the
company to reduce the debt load and improve its capital structure.
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,” “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, 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; 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 Transition
Report on Form 10-K for the period ended March 31, 2014, and, when
filed, our Form 10-K for the fiscal year ended March 31, 2015. 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 more than 57 million connections as of March 31,
2015 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. Sprint has been named to the Dow Jones
Sustainability Index (DJSI) North America for the past four years. You
can learn more and visit Sprint at www.sprint.com
or www.facebook.com/sprint
and www.twitter.com/sprint.
Contacts:
Sprint Corporation
Media:
Scott Sloat, 240-855-0164
scott.sloat@sprint.com
or
Investor:
Jud
Henry, 800-259-3755
investor.relations@sprint.com
Source: Sprint Corporation
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