[February 11, 2014] |
|
Sprint Reports Fourth Quarter and Full Year 2013 Results
OVERLAND PARK, Kan. --(Business Wire)--
Sprint Corporation (NYSE:S) today reported operating revenue,
which grew year-over-year to more than $9.1 billion for the fourth
quarter and to $35.5 billion for the full year 2013. Operating loss was
$576 million in the fourth quarter, a 22 percent year-over-year
improvement. Quarterly Adjusted EBITDA* of $1.15 billion improved nearly
40 percent year-over-year. Annual Adjusted EBITDA* of $5.4 billion
improved by 13 percent.
"In 2013 Adjusted EBITDA* and Sprint platform wireless revenues grew
significantly while we made investments to improve network performance
and expand 4G LTE to more than 200 million people," said Dan Hesse,
Sprint CEO. "As we roll out Sprint SparkTM and create
innovative offers like Sprint FramilySM, we are building a
foundation for future success."
Sprint Platform Subscriber Net Additions of 682,000 and Record
Smartphone Sales Mix
Sprint ended the year with 53.9 million Sprint platform subscribers -
its highest level ever - after adding 58,000 postpaid subscribers,
322,000 prepaid subscribers and 302,000 wholesale and affiliate
subscribers in the fourth quarter. Sprint sold 5.6 million smartphones
in the fourth quarter and 20.5 million smartphones for the year with
smartphone sales mix reaching 95 percent for postpaid and 66 percent for
prepaid in the quarter.
Net Income and Operating Loss Improve Year-Over-Year; Adjusted
EBITDA* Up Nearly 40 percent Year-Over-Year
Quarterly net loss was $1 billion in the fourth quarter as compared to a
loss of $1.3 billion in the fourth quarter of 2012. Operating loss for
the quarter was $576 million as compared to an operating loss of $738
million in the fourth quarter of 2012.
Quarterly Adjusted EBITDA* of $1.15 billion improved nearly 40 percent
year-over-year as growth in Sprint platform service revenue, network
savings resulting from the Nextel platform shutdown and lower net
subsidy expense were partially offset by the loss of Nextel platform
revenue and the consolidation of Clearwire's results.
LTE Coverage Now Available to More than 200 Million People; Sprint
Spark TM Now in 14 Markets
Sprint currently has nearly 33,000 Network Vision sites on air, an
increase of more than 24,000 sites over the last 12 months. LTE coverage
is now available to more than 200 million people. The company continues
to expect that by the middle of this year LTE coverage will reach 250
million people and the voice/3G network modernization deployment will be
complete.
During the fourth quarter the company unveiled Sprint Spark - a
combination of advanced network and device technology with the potential
to surpass wireless speeds of any U.S. network provider, capable of
delivering 50-60 Megabits per second peak speeds today with potential
speeds three times as fast by late 2015. Sprint Spark leverages the
company's 800MHz, 1.9GHz and 2.5GHz spectrum together with devices
offering tri-band capability and high-definition voice1.
Sprint plans to deploy Sprint Spark in about 100 of America's largest
cities during the next three years. By the end of this year, 100 million
Americans are expected to have Sprint Spark coverage. Today, Sprint
Spark launches in Philadelphia and Baltimore and, with the recent launch
in Kansas City, is currently available in 14 markets including New York,
Los Angeles and Chicago. Ten Sprint Spark-capable devices are currently
available, including the recently updated Samsung Galaxy S®
4, Samsung Galaxy MEGA™, HTC One® max, LG G Flex and NETGEAR®
Zing Mobile Hotspot™.
Sprint Framily Pricing Program Lets Customers Decide
Earlier this year, Sprint introduced Sprint Framily, a new pricing
program available to new and existing customers that lets consumers
decide who they consider family. With Sprint Framily, the more people
added to the group (up to 10 phone lines), the greater the savings for
everyone on the plan.
For one line of service, new Sprint customers pay $55 per month per line
for unlimited talk, text and 1GB of data while on the Sprint network.
For each additional new Sprint customer who joins the Framily group, the
cost per person goes down $5 a month up to a maximum monthly discount of
$30 per line. With a group of at least seven people, each customer gets
unlimited talk, text and 1GB of data while on the Sprint network for $25
per month per line (pricing excludes taxes and surcharges).
All members of the group can customize their plan and for an additional
$20 per month per line, Framily members can buy up to unlimited data
plus get a new phone every year. Each account can be billed separately.
Sprint Garners Third-Party Recognition
Sprint received notable awards in the fourth quarter. In particular,
CEVA Logistics, one of the world's leading supply chain companies, named
Sprint as Technology Supplier of the Year. Pinsight Media+, Sprint's
mobile media company, received the 2013 North American Mobile
Advertising Product Leadership Award from Frost & Sullivan, and Dan
Hesse was named Corporate Responsibility Magazine's Lifetime
Achievement Award winner for 2013. Last month, Compass Intelligence
named Sprint the most "Eco Focused Wireless Carrier," and Sprint was the
only U.S. telecommunications company to be named an Efficiency Leader to
the 2014 National Capital Leaders Index by GreenBiz Group and Trucost.
Additionally, for the second year in a row, Sprint was rated 16th
in Chief Executive Magazine's Best Companies for Leaders list.
Forecast
The company expects 2014 Adjusted EBITDA* to be between $6.5 billion and
$6.7 billion.
The company expects 2014 capital expenditures of approximately $8
billion.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless Operating Statistics (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter To Date
|
|
|
Year To Date
|
|
|
|
|
12/31/13
|
|
|
9/30/13
|
|
|
12/31/12
|
|
|
12/31/13
|
|
|
12/31/12
|
Net (Losses) Additions (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sprint platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid (3)
|
|
|
|
58
|
|
|
|
(360
|
)
|
|
|
401
|
|
|
|
(96
|
)
|
|
|
1,516
|
|
Prepaid (4)
|
|
|
|
322
|
|
|
|
84
|
|
|
|
525
|
|
|
|
488
|
|
|
|
2,305
|
|
Wholesale and affiliate
|
|
|
|
302
|
|
|
|
181
|
|
|
|
(243
|
)
|
|
|
31
|
|
|
|
944
|
|
Total Sprint platform
|
|
|
|
682
|
|
|
|
(95
|
)
|
|
|
683
|
|
|
|
423
|
|
|
|
4,765
|
|
Nextel platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid (3)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(644
|
)
|
|
|
(1,632
|
)
|
|
|
(2,653
|
)
|
Prepaid (4)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(376
|
)
|
|
|
(454
|
)
|
|
|
(1,507
|
)
|
Total Nextel platform
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,020
|
)
|
|
|
(2,086
|
)
|
|
|
(4,160
|
)
|
Transactions: (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid (3)
|
|
|
|
(127
|
)
|
|
|
(175
|
)
|
|
|
-
|
|
|
|
(481
|
)
|
|
|
-
|
|
Prepaid (4)
|
|
|
|
(103
|
)
|
|
|
(56
|
)
|
|
|
-
|
|
|
|
(179
|
)
|
|
|
-
|
|
Wholesale
|
|
|
|
25
|
|
|
|
13
|
|
|
|
-
|
|
|
|
38
|
|
|
|
-
|
|
Total transactions
|
|
|
|
(205
|
)
|
|
|
(218
|
)
|
|
|
-
|
|
|
|
(622
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total retail postpaid net losses
|
|
|
|
(69
|
)
|
|
|
(535
|
)
|
|
|
(243
|
)
|
|
|
(2,209
|
)
|
|
|
(1,137
|
)
|
Total retail prepaid net additions (losses)
|
|
|
|
219
|
|
|
|
28
|
|
|
|
149
|
|
|
|
(145
|
)
|
|
|
798
|
|
Total wholesale and affiliate net additions (losses)
|
|
|
|
327
|
|
|
|
194
|
|
|
|
(243
|
)
|
|
|
69
|
|
|
|
944
|
|
Total Wireless Net Additions (Losses)
|
|
|
|
477
|
|
|
|
(313
|
)
|
|
|
(337
|
)
|
|
|
(2,285
|
)
|
|
|
605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of Period Subscribers (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sprint platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid (3)
|
|
|
|
30,149
|
|
|
|
30,091
|
|
|
|
30,245
|
|
|
|
30,149
|
|
|
|
30,245
|
|
Prepaid (4)
|
|
|
|
15,621
|
|
|
|
15,299
|
|
|
|
15,133
|
|
|
|
15,621
|
|
|
|
15,133
|
|
Wholesale and affiliate
|
|
|
|
8,164
|
|
|
|
7,862
|
|
|
|
8,162
|
|
|
|
8,164
|
|
|
|
8,162
|
|
Total Sprint platform
|
|
|
|
53,934
|
|
|
|
53,252
|
|
|
|
53,540
|
|
|
|
53,934
|
|
|
|
53,540
|
|
Nextel platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid (3)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,632
|
|
|
|
-
|
|
|
|
1,632
|
|
Prepaid (4)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
454
|
|
|
|
-
|
|
|
|
454
|
|
Total Nextel platform
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,086
|
|
|
|
-
|
|
|
|
2,086
|
|
Transactions: (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid (3)
|
|
|
|
688
|
|
|
|
815
|
|
|
|
-
|
|
|
|
688
|
|
|
|
-
|
|
Prepaid (4)
|
|
|
|
601
|
|
|
|
704
|
|
|
|
-
|
|
|
|
601
|
|
|
|
-
|
|
Wholesale
|
|
|
|
131
|
|
|
|
106
|
|
|
|
-
|
|
|
|
131
|
|
|
|
-
|
|
Total transactions
|
|
|
|
1,420
|
|
|
|
1,625
|
|
|
|
-
|
|
|
|
1,420
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total retail postpaid end of period subscribers
|
|
|
|
30,837
|
|
|
|
30,906
|
|
|
|
31,877
|
|
|
|
30,837
|
|
|
|
31,877
|
|
Total retail prepaid end of period subscribers
|
|
|
|
16,222
|
|
|
|
16,003
|
|
|
|
15,587
|
|
|
|
16,222
|
|
|
|
15,587
|
|
Total wholesale and affiliate end of period subscribers
|
|
|
|
8,295
|
|
|
|
7,968
|
|
|
|
8,162
|
|
|
|
8,295
|
|
|
|
8,162
|
|
Total End of Period Subscribers
|
|
|
|
55,354
|
|
|
|
54,877
|
|
|
|
55,626
|
|
|
|
55,354
|
|
|
|
55,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data - Connected Devices
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of Period Subscribers (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail postpaid
|
|
|
|
922
|
|
|
|
834
|
|
|
|
813
|
|
|
|
922
|
|
|
|
813
|
|
Wholesale and affiliate
|
|
|
|
3,578
|
|
|
|
3,298
|
|
|
|
2,670
|
|
|
|
3,578
|
|
|
|
2,670
|
|
Total
|
|
|
|
4,500
|
|
|
|
4,132
|
|
|
|
3,483
|
|
|
|
4,500
|
|
|
|
3,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Churn
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sprint platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
|
2.07
|
%
|
|
|
1.99
|
%
|
|
|
1.98
|
%
|
|
|
1.93
|
%
|
|
|
1.89
|
%
|
Prepaid
|
|
|
|
3.01
|
%
|
|
|
3.57
|
%
|
|
|
3.02
|
%
|
|
|
3.72
|
%
|
|
|
3.01
|
%
|
Nextel platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5.27
|
%
|
|
|
16.40
|
%
|
|
|
3.24
|
%
|
Prepaid
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9.79
|
%
|
|
|
18.58
|
%
|
|
|
8.55
|
%
|
Transactions: (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
|
5.48
|
%
|
|
|
6.38
|
%
|
|
|
-
|
|
|
|
7.65
|
%
|
|
|
-
|
|
Prepaid
|
|
|
|
8.18
|
%
|
|
|
8.84
|
%
|
|
|
-
|
|
|
|
8.66
|
%
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total retail postpaid churn
|
|
|
|
2.15
|
%
|
|
|
2.09
|
%
|
|
|
2.18
|
%
|
|
|
2.24
|
%
|
|
|
2.02
|
%
|
Total retail prepaid churn
|
|
|
|
3.22
|
%
|
|
|
3.78
|
%
|
|
|
3.30
|
%
|
|
|
3.94
|
%
|
|
|
3.45
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nextel Platform Subscriber Recaptures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscribers (in thousands) (5):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
|
-
|
|
|
|
-
|
|
|
|
333
|
|
|
|
628
|
|
|
|
1,508
|
|
Prepaid
|
|
|
|
-
|
|
|
|
-
|
|
|
|
188
|
|
|
|
168
|
|
|
|
620
|
|
Rate (6):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
|
-
|
|
|
|
-
|
|
|
|
51
|
%
|
|
|
38
|
%
|
|
|
55
|
%
|
Prepaid
|
|
|
|
-
|
|
|
|
-
|
|
|
|
50
|
%
|
|
|
37
|
%
|
|
|
33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) We acquired approximately 352,000 postpaid subscribers
and 59,000 prepaid subscribers through the acquisition of assets from
U.S. Cellular when the transaction closed on May 17, 2013. We acquired
approximately 788,000 postpaid subscribers, 721,000 prepaid subscribers,
93,000 wholesale subscribers and transferred 29,000 Sprint wholesale
subscribers that were originally recognized through our Clearwire MVNO
arrangement to Transactions postpaid subscribers as a result of the
Clearwire acquisition when the transaction closed on July 9, 2013.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless Operating Statistics (Unaudited) (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
|
10 Days
Ended
|
|
191 Days
Ended
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
|
|
12/31/13
|
|
9/30/13
|
|
12/31/13
|
|
|
7/10/13
|
|
7/10/13
|
|
12/31/12
|
|
12/31/12
|
ARPU (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sprint platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
$
|
64.11
|
|
$
|
64.24
|
|
$
|
64.17
|
|
|
$
|
64.71
|
|
$
|
63.98
|
|
$
|
63.04
|
|
$
|
63.05
|
Prepaid
|
|
|
$
|
26.78
|
|
$
|
25.14
|
|
$
|
26.01
|
|
|
$
|
26.99
|
|
$
|
26.49
|
|
$
|
26.30
|
|
$
|
25.92
|
Nextel platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
35.84
|
|
$
|
37.27
|
|
$
|
39.65
|
Prepaid
|
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
32.60
|
|
$
|
35.59
|
|
$
|
35.91
|
Transactions: (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
$
|
36.30
|
|
$
|
37.44
|
|
$
|
36.89
|
|
|
$
|
35.75
|
|
$
|
56.98
|
|
$
|
-
|
|
$
|
-
|
Prepaid
|
|
|
$
|
40.80
|
|
$
|
40.62
|
|
$
|
40.71
|
|
|
$
|
12.78
|
|
$
|
18.26
|
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total retail postpaid ARPU
|
|
|
$
|
63.44
|
|
$
|
63.48
|
|
$
|
63.46
|
|
|
$
|
64.55
|
|
$
|
63.10
|
|
$
|
61.47
|
|
$
|
60.84
|
Total retail prepaid ARPU
|
|
|
$
|
27.34
|
|
$
|
25.86
|
|
$
|
26.64
|
|
|
$
|
26.96
|
|
$
|
26.57
|
|
$
|
26.69
|
|
$
|
26.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) We acquired approximately 352,000 postpaid subscribers
and 59,000 prepaid subscribers through the acquisition of assets from
U.S. Cellular when the transaction closed on May 17, 2013. We acquired
approximately 788,000 postpaid subscribers, 721,000 prepaid subscribers,
93,000 wholesale subscribers and transferred 29,000 Sprint wholesale
subscribers that were originally recognized through our Clearwire MVNO
arrangement to Transactions postpaid subscribers 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 subscribers in the applicable service category.
Changes in average monthly service revenue reflect subscribers 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 subscribers, plus the net effect of average monthly
revenue generated by new subscribers and deactivating subscribers.
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless Operating Statistics (Unaudited) (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined (1) Quarter to Date
|
|
|
Combined (1) Year to Date
|
|
|
|
12/31/13
|
|
9/30/13
|
|
12/31/12
|
|
|
12/31/13
|
|
12/31/12
|
ARPU (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
Sprint platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
$
|
64.11
|
|
$
|
64.28
|
|
$
|
63.04
|
|
|
$
|
64.07
|
|
$
|
63.05
|
Prepaid
|
|
|
$
|
26.78
|
|
$
|
25.33
|
|
$
|
26.30
|
|
|
$
|
26.26
|
|
$
|
25.92
|
Nextel platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
$
|
-
|
|
$
|
-
|
|
$
|
37.27
|
|
|
$
|
35.84
|
|
$
|
39.65
|
Prepaid
|
|
|
$
|
-
|
|
$
|
-
|
|
$
|
35.59
|
|
|
$
|
32.60
|
|
$
|
35.91
|
Transactions: (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid
|
|
|
$
|
36.30
|
|
$
|
40.00
|
|
$
|
-
|
|
|
$
|
39.96
|
|
$
|
-
|
Prepaid
|
|
|
$
|
40.80
|
|
$
|
43.20
|
|
$
|
-
|
|
|
$
|
41.55
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total retail postpaid ARPU
|
|
|
$
|
63.44
|
|
$
|
63.69
|
|
$
|
61.47
|
|
|
$
|
63.29
|
|
$
|
60.84
|
Total retail prepaid ARPU
|
|
|
$
|
27.34
|
|
$
|
26.04
|
|
$
|
26.69
|
|
|
$
|
26.62
|
|
$
|
26.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) We acquired approximately 352,000 postpaid subscribers
and 59,000 prepaid subscribers through the acquisition of assets from
U.S. Cellular when the transaction closed on May 17, 2013. We acquired
approximately 788,000 postpaid subscribers, 721,000 prepaid subscribers,
93,000 wholesale subscribers and transferred 29,000 Sprint wholesale
subscribers that were originally recognized through our Clearwire MVNO
arrangement to Transactions postpaid subscribers 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 subscribers in the applicable service category.
Changes in average monthly service revenue reflect subscribers 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 subscribers, plus the net effect of average monthly
revenue generated by new subscribers and deactivating subscribers.
Combined ARPU for the quarter-to-date September 30, 2013 period
aggregate service revenue of the ten days ended July 10, 2013
Predecessor period and the quarter-to-date September 30, 2013 Successor
period divided by the sum of the average subscribers during the quarter.
Combined ARPU for the year-to-date December 31, 2013 period aggregate
service revenue of the 191 days ended July 10, 2013 Predecessor period
and the year-to-date December 31, 2013 Successor period divided by the
sum of the average subscribers during the year-to-date period. Combined
ARPU for the quarter-to-date December 31, 2013 period is not affected by
Predecessor activity and, therefore, is consistent with the information
presented in the previous table for the quarter-to-date December 31,
2013 Successor ARPU. Combined ARPU for the quarter and year-to-date
December 31, 2012 periods are not affected by Successor activity, and,
therefore, is consistent with the information presented in the previous
table for the quarter and year-to-date Predecessor ARPU.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
(Millions, except per Share Data)
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
87 Days
Ended
|
|
Year
To
Date
|
|
|
10 Days
Ended
|
|
191 Days
Ended
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
|
|
12/31/13
|
|
9/30/13
|
|
12/31/12
|
|
12/31/13
|
|
|
7/10/13
|
|
7/10/13
|
|
12/31/12
|
|
12/31/12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Revenues
|
|
|
$
|
9,142
|
|
|
$
|
7,749
|
|
|
$
|
-
|
|
|
$
|
16,891
|
|
|
|
$
|
932
|
|
|
$
|
18,602
|
|
|
$
|
9,005
|
|
|
$
|
35,345
|
|
Net Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services
|
|
|
|
2,704
|
|
|
|
2,470
|
|
|
|
-
|
|
|
|
5,174
|
|
|
|
|
286
|
|
|
|
5,673
|
|
|
|
2,659
|
|
|
|
10,936
|
|
Cost of products
|
|
|
|
2,731
|
|
|
|
1,872
|
|
|
|
-
|
|
|
|
4,603
|
|
|
|
|
281
|
|
|
|
4,872
|
|
|
|
2,993
|
|
|
|
9,905
|
|
Selling, general and administrative
|
|
|
|
2,546
|
|
|
|
2,259
|
|
|
|
33
|
|
|
|
4,841
|
|
|
|
|
289
|
|
|
|
5,067
|
|
|
|
2,557
|
|
|
|
9,765
|
|
Depreciation and amortization
|
|
|
|
1,531
|
|
|
|
1,403
|
|
|
|
-
|
|
|
|
2,934
|
|
|
|
|
121
|
|
|
|
3,245
|
|
|
|
1,493
|
|
|
|
6,543
|
|
Other, net
|
|
|
|
206
|
|
|
|
103
|
|
|
|
-
|
|
|
|
309
|
|
|
|
|
(5
|
)
|
|
|
630
|
|
|
|
8
|
|
|
|
16
|
|
Total net operating expenses
|
|
|
|
9,718
|
|
|
|
8,107
|
|
|
|
33
|
|
|
|
17,861
|
|
|
|
|
972
|
|
|
|
19,487
|
|
|
|
9,710
|
|
|
|
37,165
|
|
Operating Loss
|
|
|
|
(576
|
)
|
|
|
(358
|
)
|
|
|
(33
|
)
|
|
|
(970
|
)
|
|
|
|
(40
|
)
|
|
|
(885
|
)
|
|
|
(705
|
)
|
|
|
(1,820
|
)
|
Interest expense
|
|
|
|
(502
|
)
|
|
|
(416
|
)
|
|
|
-
|
|
|
|
(918
|
)
|
|
|
|
(275
|
)
|
|
|
(1,135
|
)
|
|
|
(432
|
)
|
|
|
(1,428
|
)
|
Equity in earnings (losses) of unconsolidated investments and other,
net
|
|
|
|
55
|
|
|
|
165
|
|
|
|
10
|
|
|
|
73
|
|
|
|
|
2,905
|
|
|
|
2,463
|
|
|
|
(140
|
)
|
|
|
(923
|
)
|
(Loss) Income before Income Taxes
|
|
|
|
(1,023
|
)
|
|
|
(609
|
)
|
|
|
(23
|
)
|
|
|
(1,815
|
)
|
|
|
|
2,590
|
|
|
|
443
|
|
|
|
(1,277
|
)
|
|
|
(4,171
|
)
|
Income tax expense
|
|
|
|
(15
|
)
|
|
|
(90
|
)
|
|
|
(4
|
)
|
|
|
(45
|
)
|
|
|
|
(1,508
|
)
|
|
|
(1,601
|
)
|
|
|
(44
|
)
|
|
|
(154
|
)
|
Net (Loss) Income
|
|
|
$
|
(1,038
|
)
|
|
$
|
(699
|
)
|
|
$
|
(27
|
)
|
|
$
|
(1,860
|
)
|
|
|
$
|
1,082
|
|
|
$
|
(1,158
|
)
|
|
$
|
(1,321
|
)
|
|
$
|
(4,325
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Net (Loss) Income Per Common Share
|
|
|
$
|
(0.26
|
)
|
|
$
|
(0.18
|
)
|
|
|
NM
|
|
|
$
|
(0.54
|
)
|
|
|
$
|
0.35
|
|
|
$
|
(0.38
|
)
|
|
$
|
(0.44
|
)
|
|
$
|
(1.44
|
)
|
Diluted Net (Loss) Income Per Common Share
|
|
|
$
|
(0.26
|
)
|
|
$
|
(0.18
|
)
|
|
|
NM
|
|
|
$
|
(0.54
|
)
|
|
|
$
|
0.30
|
|
|
$
|
(0.38
|
)
|
|
$
|
(0.44
|
)
|
|
$
|
(1.44
|
)
|
Basic Weighted Average Common Shares outstanding
|
|
|
|
3,944
|
|
|
|
3,802
|
|
|
|
NM
|
|
|
|
3,475
|
|
|
|
|
3,086
|
|
|
|
3,027
|
|
|
|
3,007
|
|
|
|
3,002
|
|
Diluted Weighted Average Common Shares outstanding
|
|
|
|
3,944
|
|
|
|
3,802
|
|
|
|
NM
|
|
|
|
3,475
|
|
|
|
|
3,640
|
|
|
|
3,027
|
|
|
|
3,007
|
|
|
|
3,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate
|
|
|
|
-1.5
|
%
|
|
|
-14.8
|
%
|
|
|
-17.4
|
%
|
|
|
-2.5
|
%
|
|
|
|
58.2
|
%
|
|
|
361.4
|
%
|
|
|
-3.4
|
%
|
|
|
-3.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP RECONCILIATION - NET INCOME (LOSS) TO ADJUSTED EBITDA*
(Unaudited)
|
(Millions)
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
87 Days
Ended
|
|
Year
To
Date
|
|
|
10 Days
Ended
|
|
191 Days
Ended
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
|
|
12/31/13
|
|
9/30/13
|
|
12/31/12
|
|
12/31/13
|
|
|
7/10/13
|
|
7/10/13
|
|
12/31/12
|
|
12/31/12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income
|
|
|
$
|
(1,038
|
)
|
|
$
|
(699
|
)
|
|
$
|
(27
|
)
|
|
$
|
(1,860
|
)
|
|
|
$
|
1,082
|
|
|
$
|
(1,158
|
)
|
|
$
|
(1,321
|
)
|
|
$
|
(4,325
|
)
|
Income tax expense
|
|
|
|
15
|
|
|
|
90
|
|
|
|
4
|
|
|
|
45
|
|
|
|
|
1,508
|
|
|
|
1,601
|
|
|
|
44
|
|
|
|
154
|
|
(Loss) Income before Income Taxes
|
|
|
|
(1,023
|
)
|
|
|
(609
|
)
|
|
|
(23
|
)
|
|
|
(1,815
|
)
|
|
|
|
2,590
|
|
|
|
443
|
|
|
|
(1,277
|
)
|
|
|
(4,171
|
)
|
Equity in earnings (losses) of unconsolidated investments and other,
net
|
|
|
|
(55
|
)
|
|
|
(165
|
)
|
|
|
(10
|
)
|
|
|
(73
|
)
|
|
|
|
(2,905
|
)
|
|
|
(2,463
|
)
|
|
|
140
|
|
|
|
923
|
|
Interest expense
|
|
|
|
502
|
|
|
|
416
|
|
|
|
-
|
|
|
|
918
|
|
|
|
|
275
|
|
|
|
1,135
|
|
|
|
432
|
|
|
|
1,428
|
|
Operating Loss
|
|
|
|
(576
|
)
|
|
|
(358
|
)
|
|
|
(33
|
)
|
|
|
(970
|
)
|
|
|
|
(40
|
)
|
|
|
(885
|
)
|
|
|
(705
|
)
|
|
|
(1,820
|
)
|
Depreciation and amortization
|
|
|
|
1,531
|
|
|
|
1,403
|
|
|
|
-
|
|
|
|
2,934
|
|
|
|
|
121
|
|
|
|
3,245
|
|
|
|
1,493
|
|
|
|
6,543
|
|
EBITDA*
|
|
|
|
955
|
|
|
|
1,045
|
|
|
|
(33
|
)
|
|
|
1,964
|
|
|
|
|
81
|
|
|
|
2,360
|
|
|
|
788
|
|
|
|
4,723
|
|
Severance and exit costs (7)
|
|
|
|
206
|
|
|
|
103
|
|
|
|
-
|
|
|
|
309
|
|
|
|
|
(5
|
)
|
|
|
652
|
|
|
|
(10
|
)
|
|
|
196
|
|
Gains from asset dispositions and exchanges (8)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(29
|
)
|
Asset impairments and abandonments (9)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
18
|
|
|
|
36
|
|
Spectrum hosting contract termination, net (10)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(170
|
)
|
Access costs (11)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(17
|
)
|
Litigation (12)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(22
|
)
|
|
|
-
|
|
|
|
-
|
|
Business combinations (13)
|
|
|
|
-
|
|
|
|
100
|
|
|
|
-
|
|
|
|
100
|
|
|
|
|
19
|
|
|
|
53
|
|
|
|
19
|
|
|
|
19
|
|
Hurricane Sandy (14)
|
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
45
|
|
|
|
45
|
|
Adjusted EBITDA*
|
|
|
$
|
1,154
|
|
|
$
|
1,248
|
|
|
$
|
(33
|
)
|
|
$
|
2,366
|
|
|
|
$
|
95
|
|
|
$
|
3,043
|
|
|
$
|
860
|
|
|
$
|
4,803
|
|
Capital expenditures (2)
|
|
|
|
1,901
|
|
|
|
1,666
|
|
|
|
-
|
|
|
|
3,567
|
|
|
|
|
175
|
|
|
|
3,884
|
|
|
|
1,923
|
|
|
|
5,370
|
|
Adjusted EBITDA* less Capex
|
|
|
$
|
(747
|
)
|
|
$
|
(418
|
)
|
|
$
|
(33
|
)
|
|
$
|
(1,201
|
)
|
|
|
$
|
(80
|
)
|
|
$
|
(841
|
)
|
|
$
|
(1,063
|
)
|
|
$
|
(567
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin*
|
|
|
|
14.5
|
%
|
|
|
17.5
|
%
|
|
|
NM
|
|
|
|
15.7
|
%
|
|
|
|
11.1
|
%
|
|
|
18.0
|
%
|
|
|
10.7
|
%
|
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected item:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax asset valuation allowance
|
|
|
$
|
381
|
|
|
$
|
327
|
|
|
$
|
4
|
|
|
$
|
708
|
|
|
|
$
|
524
|
|
|
$
|
1,410
|
|
|
$
|
546
|
|
|
$
|
1,756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined (1) Quarter to Date
|
|
|
Combined (1) Year to Date
|
|
|
|
|
|
12/31/13
|
|
|
|
9/30/13
|
|
|
|
12/31/12
|
|
|
|
|
12/31/13
|
|
|
|
12/31/12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Revenues
|
|
|
|
$
|
9,142
|
|
|
$
|
8,681
|
|
|
$
|
9,005
|
|
|
|
$
|
35,493
|
|
|
$
|
35,345
|
|
Net Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services
|
|
|
|
|
2,704
|
|
|
|
2,756
|
|
|
|
2,659
|
|
|
|
|
10,847
|
|
|
|
10,936
|
|
Cost of products
|
|
|
|
|
2,731
|
|
|
|
2,153
|
|
|
|
2,993
|
|
|
|
|
9,475
|
|
|
|
9,905
|
|
Selling, general and administrative
|
|
|
|
|
2,546
|
|
|
|
2,548
|
|
|
|
2,590
|
|
|
|
|
9,908
|
|
|
|
9,798
|
|
Depreciation and amortization
|
|
|
|
|
1,531
|
|
|
|
1,524
|
|
|
|
1,493
|
|
|
|
|
6,179
|
|
|
|
6,543
|
|
Other, net
|
|
|
|
|
206
|
|
|
|
98
|
|
|
|
8
|
|
|
|
|
939
|
|
|
|
16
|
|
Total net operating expenses
|
|
|
|
|
9,718
|
|
|
|
9,079
|
|
|
|
9,743
|
|
|
|
|
37,348
|
|
|
|
37,198
|
|
Operating Loss
|
|
|
|
|
(576
|
)
|
|
|
(398
|
)
|
|
|
(738
|
)
|
|
|
|
(1,855
|
)
|
|
|
(1,853
|
)
|
Interest expense
|
|
|
|
|
(502
|
)
|
|
|
(691
|
)
|
|
|
(432
|
)
|
|
|
|
(2,053
|
)
|
|
|
(1,428
|
)
|
Equity in earnings (losses) of unconsolidated investments and other,
net
|
|
|
|
|
55
|
|
|
|
3,070
|
|
|
|
(130
|
)
|
|
|
|
2,536
|
|
|
|
(913
|
)
|
(Loss) Income before Income Taxes
|
|
|
|
|
(1,023
|
)
|
|
|
1,981
|
|
|
|
(1,300
|
)
|
|
|
|
(1,372
|
)
|
|
|
(4,194
|
)
|
Income tax expense
|
|
|
|
|
(15
|
)
|
|
|
(1,598
|
)
|
|
|
(48
|
)
|
|
|
|
(1,646
|
)
|
|
|
(158
|
)
|
Net (Loss) Income
|
|
|
|
$
|
(1,038
|
)
|
|
$
|
383
|
|
|
$
|
(1,348
|
)
|
|
|
$
|
(3,018
|
)
|
|
$
|
(4,352
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP RECONCILIATION - NET LOSS TO ADJUSTED EBITDA* (Unaudited)
|
|
|
|
|
|
|
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined (1) Quarter to Date
|
|
|
Combined (1) Year to Date
|
|
|
|
|
|
12/31/13
|
|
|
|
9/30/13
|
|
|
|
12/31/12
|
|
|
|
|
12/31/13
|
|
|
|
12/31/12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income
|
|
|
|
$
|
(1,038
|
)
|
|
$
|
383
|
|
|
$
|
(1,348
|
)
|
|
|
$
|
(3,018
|
)
|
|
$
|
(4,352
|
)
|
Income tax expense
|
|
|
|
|
15
|
|
|
|
1,598
|
|
|
|
48
|
|
|
|
|
1,646
|
|
|
|
158
|
|
(Loss) Income before Income Taxes
|
|
|
|
|
(1,023
|
)
|
|
|
1,981
|
|
|
|
(1,300
|
)
|
|
|
|
(1,372
|
)
|
|
|
(4,194
|
)
|
Equity in earnings (losses) of unconsolidated investments and other,
net
|
|
|
|
|
(55
|
)
|
|
|
(3,070
|
)
|
|
|
130
|
|
|
|
|
(2,536
|
)
|
|
|
913
|
|
Interest expense
|
|
|
|
|
502
|
|
|
|
691
|
|
|
|
432
|
|
|
|
|
2,053
|
|
|
|
1,428
|
|
Operating Loss
|
|
|
|
|
(576
|
)
|
|
|
(398
|
)
|
|
|
(738
|
)
|
|
|
|
(1,855
|
)
|
|
|
(1,853
|
)
|
Depreciation and amortization
|
|
|
|
|
1,531
|
|
|
|
1,524
|
|
|
|
1,493
|
|
|
|
|
6,179
|
|
|
|
6,543
|
|
EBITDA*
|
|
|
|
|
955
|
|
|
|
1,126
|
|
|
|
755
|
|
|
|
|
4,324
|
|
|
|
4,690
|
|
Severance and exit costs (7)
|
|
|
|
|
206
|
|
|
|
98
|
|
|
|
(10
|
)
|
|
|
|
961
|
|
|
|
196
|
|
Gains from asset dispositions and exchanges (8)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(29
|
)
|
Asset impairments and abandonments (9)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
18
|
|
|
|
|
-
|
|
|
|
36
|
|
Spectrum hosting contract termination, net (10)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(170
|
)
|
Access costs (11)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(17
|
)
|
Litigation (12)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(22
|
)
|
|
|
-
|
|
Business combinations (13)
|
|
|
|
|
-
|
|
|
|
119
|
|
|
|
19
|
|
|
|
|
153
|
|
|
|
19
|
|
Hurricane Sandy (14)
|
|
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
45
|
|
|
|
|
(7
|
)
|
|
|
45
|
|
Adjusted EBITDA*
|
|
|
|
|
1,154
|
|
|
|
1,343
|
|
|
|
827
|
|
|
|
|
5,409
|
|
|
|
4,770
|
|
Capital expenditures (2)
|
|
|
|
|
1,901
|
|
|
|
1,841
|
|
|
|
1,923
|
|
|
|
|
7,451
|
|
|
|
5,370
|
|
Adjusted EBITDA* less Capex
|
|
|
|
$
|
(747
|
)
|
|
$
|
(498
|
)
|
|
$
|
(1,096
|
)
|
|
|
$
|
(2,042
|
)
|
|
$
|
(600
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin*
|
|
|
|
|
14.5
|
%
|
|
|
16.8
|
%
|
|
|
10.3
|
%
|
|
|
|
16.9
|
%
|
|
|
14.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected item:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax asset valuation allowance
|
|
|
|
$
|
381
|
|
|
$
|
851
|
|
|
$
|
550
|
|
|
|
$
|
2,118
|
|
|
$
|
1,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WIRELESS STATEMENTS OF OPERATIONS (Unaudited)
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
|
10 Days
Ended
|
|
191 Days
Ended
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
|
|
|
|
12/31/13
|
|
|
|
9/30/13
|
|
|
|
12/31/13
|
|
|
|
|
7/10/13
|
|
|
|
7/10/13
|
|
|
|
12/31/12
|
|
|
|
12/31/12
|
|
Net Operating Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sprint platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid (3)
|
|
|
|
$
|
5,782
|
|
|
$
|
5,201
|
|
|
$
|
10,983
|
|
|
|
$
|
634
|
|
|
$
|
12,242
|
|
|
$
|
5,674
|
|
|
$
|
22,247
|
|
Prepaid (4)
|
|
|
|
|
1,237
|
|
|
|
1,028
|
|
|
|
2,265
|
|
|
|
|
132
|
|
|
|
2,602
|
|
|
|
1,170
|
|
|
|
4,377
|
|
Wholesale, affiliate and other
|
|
|
|
|
132
|
|
|
|
116
|
|
|
|
248
|
|
|
|
|
15
|
|
|
|
279
|
|
|
|
135
|
|
|
|
483
|
|
Total Sprint platform
|
|
|
|
|
7,151
|
|
|
|
6,345
|
|
|
|
13,496
|
|
|
|
|
781
|
|
|
|
15,123
|
|
|
|
6,979
|
|
|
|
27,107
|
|
Nextel platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid (3)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
217
|
|
|
|
218
|
|
|
|
1,454
|
|
Prepaid (4)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
50
|
|
|
|
68
|
|
|
|
525
|
|
Total Nextel platform
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
267
|
|
|
|
286
|
|
|
|
1,979
|
|
Transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid (3)
|
|
|
|
|
81
|
|
|
|
89
|
|
|
|
170
|
|
|
|
|
2
|
|
|
|
26
|
|
|
|
-
|
|
|
|
-
|
|
Prepaid (4)
|
|
|
|
|
80
|
|
|
|
81
|
|
|
|
161
|
|
|
|
|
1
|
|
|
|
2
|
|
|
|
-
|
|
|
|
-
|
|
Wholesale
|
|
|
|
|
10
|
|
|
|
8
|
|
|
|
18
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total transactions
|
|
|
|
|
171
|
|
|
|
178
|
|
|
|
349
|
|
|
|
|
3
|
|
|
|
28
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment revenue
|
|
|
|
|
1,161
|
|
|
|
636
|
|
|
|
1,797
|
|
|
|
|
74
|
|
|
|
1,707
|
|
|
|
1,010
|
|
|
|
3,248
|
|
Total net operating revenues
|
|
|
|
|
8,483
|
|
|
|
7,159
|
|
|
|
15,642
|
|
|
|
|
858
|
|
|
|
17,125
|
|
|
|
8,275
|
|
|
|
32,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services
|
|
|
|
|
2,248
|
|
|
|
2,087
|
|
|
|
4,335
|
|
|
|
|
240
|
|
|
|
4,703
|
|
|
|
2,210
|
|
|
|
9,034
|
|
Cost of products
|
|
|
|
|
2,731
|
|
|
|
1,872
|
|
|
|
4,603
|
|
|
|
|
281
|
|
|
|
4,872
|
|
|
|
2,993
|
|
|
|
9,905
|
|
Selling, general and administrative
|
|
|
|
|
2,444
|
|
|
|
2,100
|
|
|
|
4,544
|
|
|
|
|
256
|
|
|
|
4,780
|
|
|
|
2,436
|
|
|
|
9,290
|
|
Depreciation and amortization
|
|
|
|
|
1,470
|
|
|
|
1,338
|
|
|
|
2,808
|
|
|
|
|
110
|
|
|
|
3,029
|
|
|
|
1,391
|
|
|
|
6,128
|
|
Other, net
|
|
|
|
|
187
|
|
|
|
93
|
|
|
|
280
|
|
|
|
|
(5
|
)
|
|
|
627
|
|
|
|
3
|
|
|
|
28
|
|
Total net operating expenses
|
|
|
|
|
9,080
|
|
|
|
7,490
|
|
|
|
16,570
|
|
|
|
|
882
|
|
|
|
18,011
|
|
|
|
9,033
|
|
|
|
34,385
|
|
Operating Loss
|
|
|
|
$
|
(597
|
)
|
|
$
|
(331
|
)
|
|
$
|
(928
|
)
|
|
|
$
|
(24
|
)
|
|
$
|
(886
|
)
|
|
$
|
(758
|
)
|
|
$
|
(2,051
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Revenue Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total retail service revenue
|
|
|
|
$
|
7,180
|
|
|
$
|
6,399
|
|
|
$
|
13,579
|
|
|
|
$
|
769
|
|
|
$
|
15,139
|
|
|
$
|
7,130
|
|
|
$
|
28,603
|
|
Total service revenue
|
|
|
|
$
|
7,322
|
|
|
$
|
6,523
|
|
|
$
|
13,845
|
|
|
|
$
|
784
|
|
|
$
|
15,418
|
|
|
$
|
7,265
|
|
|
$
|
29,086
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WIRELESS NON-GAAP RECONCILIATION (Unaudited)
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
|
10 Days
Ended
|
|
191 Days
Ended
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
|
|
|
|
12/31/13
|
|
|
|
9/30/13
|
|
|
|
12/31/13
|
|
|
|
|
7/10/13
|
|
|
|
7/10/13
|
|
|
|
12/31/12
|
|
|
|
12/31/12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss
|
|
|
|
$
|
(597
|
)
|
|
$
|
(331
|
)
|
|
$
|
(928
|
)
|
|
|
$
|
(24
|
)
|
|
$
|
(886
|
)
|
|
$
|
(758
|
)
|
|
$
|
(2,051
|
)
|
Severance and exit costs (7)
|
|
|
|
|
187
|
|
|
|
93
|
|
|
|
280
|
|
|
|
|
(5
|
)
|
|
|
649
|
|
|
|
(10
|
)
|
|
|
196
|
|
Gains from asset dispositions and exchanges (8)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(29
|
)
|
Asset impairments and abandonments (9)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
13
|
|
|
|
31
|
|
Spectrum hosting contract termination, net (10)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(170
|
)
|
Litigation (12)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(22
|
)
|
|
|
-
|
|
|
|
-
|
|
Business combinations (13)
|
|
|
|
|
-
|
|
|
|
25
|
|
|
|
25
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Hurricane Sandy (14)
|
|
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
42
|
|
|
|
42
|
|
Depreciation and amortization
|
|
|
|
|
1,470
|
|
|
|
1,338
|
|
|
|
2,808
|
|
|
|
|
110
|
|
|
|
3,029
|
|
|
|
1,391
|
|
|
|
6,128
|
|
Adjusted EBITDA*
|
|
|
|
|
1,053
|
|
|
|
1,125
|
|
|
|
2,178
|
|
|
|
|
81
|
|
|
|
2,770
|
|
|
|
678
|
|
|
|
4,147
|
|
Capital expenditures (2)
|
|
|
|
|
1,716
|
|
|
|
1,527
|
|
|
|
3,243
|
|
|
|
|
156
|
|
|
|
3,590
|
|
|
|
1,786
|
|
|
|
4,884
|
|
Adjusted EBITDA* less Capex
|
|
|
|
$
|
(663
|
)
|
|
$
|
(402
|
)
|
|
$
|
(1,065
|
)
|
|
|
$
|
(75
|
)
|
|
$
|
(820
|
)
|
|
$
|
(1,108
|
)
|
|
$
|
(737
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin*
|
|
|
|
|
14.4
|
%
|
|
|
17.2
|
%
|
|
|
15.7
|
%
|
|
|
|
10.3
|
%
|
|
|
18.0
|
%
|
|
|
9.3
|
%
|
|
|
14.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WIRELESS STATEMENTS OF OPERATIONS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined (1) Quarter to Date
|
|
|
Combined (1) Year to Date
|
|
|
|
|
|
12/31/13
|
|
|
|
9/30/13
|
|
|
|
12/31/12
|
|
|
|
|
12/31/13
|
|
|
|
12/31/12
|
|
Net Operating Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sprint platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid (3)
|
|
|
|
$
|
5,782
|
|
|
$
|
5,835
|
|
|
$
|
5,674
|
|
|
|
$
|
23,225
|
|
|
$
|
22,247
|
|
Prepaid (4)
|
|
|
|
|
1,237
|
|
|
|
1,160
|
|
|
|
1,170
|
|
|
|
|
4,867
|
|
|
|
4,377
|
|
Wholesale, affiliate and other
|
|
|
|
|
132
|
|
|
|
131
|
|
|
|
135
|
|
|
|
|
527
|
|
|
|
483
|
|
Total Sprint platform
|
|
|
|
|
7,151
|
|
|
|
7,126
|
|
|
|
6,979
|
|
|
|
|
28,619
|
|
|
|
27,107
|
|
Nextel platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid (3)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
218
|
|
|
|
|
217
|
|
|
|
1,454
|
|
Prepaid (4)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
68
|
|
|
|
|
50
|
|
|
|
525
|
|
Total Nextel platform
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
286
|
|
|
|
|
267
|
|
|
|
1,979
|
|
Transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postpaid (3)
|
|
|
|
|
81
|
|
|
|
91
|
|
|
|
-
|
|
|
|
|
196
|
|
|
|
-
|
|
Prepaid (4)
|
|
|
|
|
80
|
|
|
|
82
|
|
|
|
-
|
|
|
|
|
163
|
|
|
|
-
|
|
Wholesale
|
|
|
|
|
10
|
|
|
|
8
|
|
|
|
-
|
|
|
|
|
18
|
|
|
|
-
|
|
Total transactions
|
|
|
|
|
171
|
|
|
|
181
|
|
|
|
-
|
|
|
|
|
377
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment revenue
|
|
|
|
|
1,161
|
|
|
|
710
|
|
|
|
1,010
|
|
|
|
|
3,504
|
|
|
|
3,248
|
|
Total net operating revenues
|
|
|
|
|
8,483
|
|
|
|
8,017
|
|
|
|
8,275
|
|
|
|
|
32,767
|
|
|
|
32,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services
|
|
|
|
|
2,248
|
|
|
|
2,327
|
|
|
|
2,210
|
|
|
|
|
9,038
|
|
|
|
9,034
|
|
Cost of products
|
|
|
|
|
2,731
|
|
|
|
2,153
|
|
|
|
2,993
|
|
|
|
|
9,475
|
|
|
|
9,905
|
|
Selling, general and administrative
|
|
|
|
|
2,444
|
|
|
|
2,356
|
|
|
|
2,436
|
|
|
|
|
9,324
|
|
|
|
9,290
|
|
Depreciation and amortization
|
|
|
|
|
1,470
|
|
|
|
1,448
|
|
|
|
1,391
|
|
|
|
|
5,837
|
|
|
|
6,128
|
|
Other, net
|
|
|
|
|
187
|
|
|
|
88
|
|
|
|
3
|
|
|
|
|
907
|
|
|
|
28
|
|
Total net operating expenses
|
|
|
|
|
9,080
|
|
|
|
8,372
|
|
|
|
9,033
|
|
|
|
|
34,581
|
|
|
|
34,385
|
|
Operating Loss
|
|
|
|
$
|
(597
|
)
|
|
$
|
(355
|
)
|
|
$
|
(758
|
)
|
|
|
$
|
(1,814
|
)
|
|
$
|
(2,051
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Revenue Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total retail service revenue
|
|
|
|
$
|
7,180
|
|
|
$
|
7,168
|
|
|
$
|
7,130
|
|
|
|
$
|
28,718
|
|
|
$
|
28,603
|
|
Total service revenue
|
|
|
|
$
|
7,322
|
|
|
$
|
7,307
|
|
|
$
|
7,265
|
|
|
|
$
|
29,263
|
|
|
$
|
29,086
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WIRELESS NON-GAAP RECONCILIATION (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined (1) Quarter to Date
|
|
|
Combined (1) Year to Date
|
|
|
|
|
|
12/31/13
|
|
|
|
9/30/13
|
|
|
|
12/31/12
|
|
|
|
|
12/31/13
|
|
|
|
12/31/12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss
|
|
|
|
$
|
(597
|
)
|
|
$
|
(355
|
)
|
|
$
|
(758
|
)
|
|
|
$
|
(1,814
|
)
|
|
$
|
(2,051
|
)
|
Severance and exit costs (7)
|
|
|
|
|
187
|
|
|
|
88
|
|
|
|
(10
|
)
|
|
|
|
929
|
|
|
|
196
|
|
Gains from asset dispositions and exchanges (8)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(29
|
)
|
Asset impairments and abandonments (9)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
13
|
|
|
|
|
-
|
|
|
|
31
|
|
Spectrum hosting contract termination, net (10)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(170
|
)
|
Litigation (12)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(22
|
)
|
|
|
-
|
|
Business combinations (13)
|
|
|
|
|
-
|
|
|
|
25
|
|
|
|
-
|
|
|
|
|
25
|
|
|
|
-
|
|
Hurricane Sandy (14)
|
|
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
42
|
|
|
|
|
(7
|
)
|
|
|
42
|
|
Depreciation and amortization
|
|
|
|
|
1,470
|
|
|
|
1,448
|
|
|
|
1,391
|
|
|
|
|
5,837
|
|
|
|
6,128
|
|
Adjusted EBITDA*
|
|
|
|
|
1,053
|
|
|
|
1,206
|
|
|
|
678
|
|
|
|
|
4,948
|
|
|
|
4,147
|
|
Capital expenditures (2)
|
|
|
|
|
1,716
|
|
|
|
1,683
|
|
|
|
1,786
|
|
|
|
|
6,833
|
|
|
|
4,884
|
|
Adjusted EBITDA* less Capex
|
|
|
|
$
|
(663
|
)
|
|
$
|
(477
|
)
|
|
$
|
(1,108
|
)
|
|
|
$
|
(1,885
|
)
|
|
$
|
(737
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin*
|
|
|
|
|
14.4
|
%
|
|
|
16.5
|
%
|
|
|
9.3
|
%
|
|
|
|
16.9
|
%
|
|
|
14.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WIRELINE STATEMENTS OF OPERATIONS (Unaudited)
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
|
10 Days
Ended
|
|
191 Days
Ended
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
|
|
|
|
12/31/13
|
|
|
|
9/30/13
|
|
|
|
12/31/13
|
|
|
|
|
7/10/13
|
|
|
|
7/10/13
|
|
|
|
12/31/12
|
|
|
|
12/31/12
|
|
Net Operating Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voice
|
|
|
|
$
|
386
|
|
|
$
|
333
|
|
|
$
|
719
|
|
|
|
$
|
42
|
|
|
$
|
771
|
|
|
$
|
385
|
|
|
$
|
1,627
|
|
Data
|
|
|
|
|
81
|
|
|
|
57
|
|
|
|
138
|
|
|
|
|
7
|
|
|
|
188
|
|
|
|
96
|
|
|
|
398
|
|
Internet
|
|
|
|
|
374
|
|
|
|
373
|
|
|
|
747
|
|
|
|
|
47
|
|
|
|
913
|
|
|
|
451
|
|
|
|
1,781
|
|
Other
|
|
|
|
|
18
|
|
|
|
14
|
|
|
|
32
|
|
|
|
|
2
|
|
|
|
29
|
|
|
|
17
|
|
|
|
75
|
|
Total net operating revenues
|
|
|
|
|
859
|
|
|
|
777
|
|
|
|
1,636
|
|
|
|
|
98
|
|
|
|
1,901
|
|
|
|
949
|
|
|
|
3,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of services and products
|
|
|
|
|
659
|
|
|
|
576
|
|
|
|
1,235
|
|
|
|
|
72
|
|
|
|
1,402
|
|
|
|
671
|
|
|
|
2,784
|
|
Selling, general and administrative
|
|
|
|
|
95
|
|
|
|
84
|
|
|
|
179
|
|
|
|
|
11
|
|
|
|
227
|
|
|
|
100
|
|
|
|
451
|
|
Depreciation and amortization
|
|
|
|
|
62
|
|
|
|
61
|
|
|
|
123
|
|
|
|
|
10
|
|
|
|
213
|
|
|
|
102
|
|
|
|
412
|
|
Other, net
|
|
|
|
|
20
|
|
|
|
10
|
|
|
|
30
|
|
|
|
|
-
|
|
|
|
3
|
|
|
|
5
|
|
|
|
(12
|
)
|
Total net operating expenses
|
|
|
|
|
836
|
|
|
|
731
|
|
|
|
1,567
|
|
|
|
|
93
|
|
|
|
1,845
|
|
|
|
878
|
|
|
|
3,635
|
|
Operating Income
|
|
|
|
$
|
23
|
|
|
$
|
46
|
|
|
$
|
69
|
|
|
|
$
|
5
|
|
|
$
|
56
|
|
|
$
|
71
|
|
|
$
|
246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WIRELINE NON-GAAP RECONCILIATION (Unaudited)
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
Quarter
To
Date
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
|
10 Days
Ended
|
|
191 Days
Ended
|
|
Quarter
To
Date
|
|
Year
To
Date
|
|
|
|
|
|
12/31/13
|
|
|
|
9/30/13
|
|
|
|
12/31/13
|
|
|
|
|
7/10/13
|
|
|
|
7/10/13
|
|
|
|
12/31/12
|
|
|
|
12/31/12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
$
|
23
|
|
|
$
|
46
|
|
|
$
|
69
|
|
|
|
$
|
5
|
|
|
$
|
56
|
|
|
$
|
71
|
|
|
$
|
246
|
|
Severance and exit costs (7)
|
|
|
|
|
20
|
|
|
|
10
|
|
|
|
30
|
|
|
|
|
-
|
|
|
|
3
|
|
|
|
-
|
|
|
|
-
|
|
Asset impairments and abandonments (8)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5
|
|
|
|
5
|
|
Access costs (11)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(17
|
)
|
Hurricane Sandy (14)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3
|
|
|
|
3
|
|
Depreciation and amortization
|
|
|
|
|
62
|
|
|
|
61
|
|
|
|
123
|
|
|
|
|
10
|
|
|
|
213
|
|
|
|
102
|
|
|
|
412
|
|
Adjusted EBITDA*
|
|
|
|
|
105
|
|
|
|
117
|
|
|
|
222
|
|
|
|
|
15
|
|
|
|
272
|
|
|
|
181
|
|
|
|
649
|
|
Capital expenditures (2)
|
|
|
|
|
82
|
|
|
|
73
|
|
|
|
155
|
|
|
|
|
11
|
|
|
|
165
|
|
|
|
58
|
|
|
|
242
|
|
Adjusted EBITDA* less Capex
|
|
|
|
$
|
23
|
|
|
$
|
44
|
|
|
$
|
67
|
|
|
|
$
|
4
|
|
|
$
|
107
|
|
|
$
|
123
|
|
|
$
|
407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin*
|
|
|
|
|
12.2
|
%
|
|
|
15.1
|
%
|
|
|
13.6
|
%
|
|
|
|
15.3
|
%
|
|
|
14.3
|
%
|
|
|
19.1
|
%
|
|
|
16.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WIRELINE STATEMENTS OF OPERATIONS (Unaudited)
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined (1) Quarter to Date
|
|
|
Combined (1) Year to Date
|
|
|
|
|
|
12/31/13
|
|
|
|
9/30/13
|
|
|
|
12/31/12
|
|
|
|
|
12/31/13
|
|
|
|
12/31/12
|
|
Net Operating Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voice
|
|
|
|
$
|
386
|
|
|
$
|
375
|
|
|
$
|
385
|
|
|
|
$
|
1,490
|
|
|
$
|
1,627
|
|
Data
|
|
|
|
|
81
|
|
|
|
64
|
|
|
|
96
|
|
|
|
|
326
|
|
|
|
398
|
|
Internet
|
|
|
|
|
374
|
|
|
|
420
|
|
|
|
451
|
|
|
|
|
1,660
|
|
|
|
1,781
|
|
Other
|
|
|
|
|
18
|
|
|
|
16
|
|
|
|
17
|
|
|
|
|
61
|
|
|
|
75
|
|
Total net operating revenues
|
|
|
|
|
859
|
|
|
|
875
|
|
|
|
949
|
|
|
|
|
3,537
|
|
|
|
3,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of services and products
|
|
|
|
|
659
|
|
|
|
648
|
|
|
|
671
|
|
|
|
|
2,637
|
|
|
|
2,784
|
|
Selling, general and administrative
|
|
|
|
|
95
|
|
|
|
95
|
|
|
|
100
|
|
|
|
|
406
|
|
|
|
451
|
|
Depreciation and amortization
|
|
|
|
|
62
|
|
|
|
71
|
|
|
|
102
|
|
|
|
|
336
|
|
|
|
412
|
|
Other, net
|
|
|
|
|
20
|
|
|
|
10
|
|
|
|
5
|
|
|
|
|
33
|
|
|
|
(12
|
)
|
Total net operating expenses
|
|
|
|
|
836
|
|
|
|
824
|
|
|
|
878
|
|
|
|
|
3,412
|
|
|
|
3,635
|
|
Operating Income
|
|
|
|
$
|
23
|
|
|
$
|
51
|
|
|
$
|
71
|
|
|
|
$
|
125
|
|
|
$
|
246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WIRELINE NON-GAAP RECONCILIATION (Unaudited)
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined (1) Quarter to Date
|
|
|
Combined (1) Year to Date
|
|
|
|
|
|
12/31/13
|
|
|
|
9/30/13
|
|
|
|
12/31/12
|
|
|
|
|
12/31/13
|
|
|
|
12/31/12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
$
|
23
|
|
|
$
|
51
|
|
|
$
|
71
|
|
|
|
$
|
125
|
|
|
$
|
246
|
|
Severance and exit costs (7)
|
|
|
|
|
20
|
|
|
|
10
|
|
|
|
-
|
|
|
|
|
33
|
|
|
|
-
|
|
Asset impairments and abandonments (8)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5
|
|
|
|
|
-
|
|
|
|
5
|
|
Access costs (11)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(17
|
)
|
Hurricane Sandy (14)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3
|
|
|
|
|
-
|
|
|
|
3
|
|
Depreciation and amortization
|
|
|
|
|
62
|
|
|
|
71
|
|
|
|
102
|
|
|
|
|
336
|
|
|
|
412
|
|
Adjusted EBITDA*
|
|
|
|
|
105
|
|
|
|
132
|
|
|
|
181
|
|
|
|
|
494
|
|
|
|
649
|
|
Capital expenditures (2)
|
|
|
|
|
82
|
|
|
|
84
|
|
|
|
58
|
|
|
|
|
320
|
|
|
|
242
|
|
Adjusted EBITDA* less Capex
|
|
|
|
$
|
23
|
|
|
$
|
48
|
|
|
$
|
123
|
|
|
|
$
|
174
|
|
|
$
|
407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin*
|
|
|
|
|
12.2
|
%
|
|
|
15.1
|
%
|
|
|
19.1
|
%
|
|
|
|
14.0
|
%
|
|
|
16.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED CASH FLOW INFORMATION (Unaudited)
|
|
(Millions)
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|
|
|
Year
|
|
|
|
|
|
Year
|
|
|
|
|
|
|
|
|
|
|
|
To
|
|
87 Days
|
|
191 Days
|
|
To
|
|
|
|
|
|
|
|
|
|
|
|
Date
|
|
Ended
|
|
Ended
|
|
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/13
|
|
|
|
12/31/12
|
|
|
|
7/10/13
|
|
|
|
12/31/12
|
|
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
|
|
|
|
|
$
|
(1,860
|
)
|
|
$
|
(27
|
)
|
|
$
|
(1,158
|
)
|
|
$
|
(4,325
|
)
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
2,934
|
|
|
|
-
|
|
|
|
3,245
|
|
|
|
6,543
|
|
|
Provision for losses on accounts receivable
|
|
|
|
|
|
|
|
|
|
|
261
|
|
|
|
-
|
|
|
|
194
|
|
|
|
561
|
|
|
Share-based and long-term incentive compensation expense
|
|
|
|
|
|
|
|
|
|
|
98
|
|
|
|
-
|
|
|
|
37
|
|
|
|
82
|
|
|
Deferred income taxes
|
|
|
|
|
|
|
|
|
|
|
32
|
|
|
|
1
|
|
|
|
1,586
|
|
|
|
209
|
|
|
Gain on previously-held equity interests
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,926
|
)
|
|
|
-
|
|
|
Equity in losses of unconsolidated investments, net
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
482
|
|
|
|
1,114
|
|
|
Interest expense related to beneficial conversion feature on
convertible bond
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
247
|
|
|
|
-
|
|
|
Contribution to pension plan
|
|
|
|
|
|
|
|
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(108
|
)
|
|
Spectrum hosting contract termination, net (10)
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(170
|
)
|
|
Call premiums on debt redemptions
|
|
|
|
|
|
|
|
|
|
|
(180
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Amortization and accretion of long-term debt premiums and discounts
|
|
|
|
|
|
|
|
|
|
|
(160
|
)
|
|
|
-
|
|
|
|
9
|
|
|
|
4
|
|
|
Other working capital changes, net
|
|
|
|
|
|
|
|
|
|
|
(924
|
)
|
|
|
(3
|
)
|
|
|
728
|
|
|
|
(802
|
)
|
|
Other, net
|
|
|
|
|
|
|
|
|
|
|
(255
|
)
|
|
|
29
|
|
|
|
227
|
|
|
|
(109
|
)
|
|
Net cash (used in) provided by operating activities
|
|
|
|
|
|
|
|
|
|
|
(61
|
)
|
|
|
-
|
|
|
|
2,671
|
|
|
|
2,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures (2)
|
|
|
|
|
|
|
|
|
|
|
(3,847
|
)
|
|
|
-
|
|
|
|
(3,140
|
)
|
|
|
(4,261
|
)
|
|
Expenditures relating to FCC licenses
|
|
|
|
|
|
|
|
|
|
|
(146
|
)
|
|
|
-
|
|
|
|
(125
|
)
|
|
|
(198
|
)
|
|
Change in short-term investments, net
|
|
|
|
|
|
|
|
|
|
|
(4
|
)
|
|
|
-
|
|
|
|
1,224
|
|
|
|
(1,699
|
)
|
|
Acquisitions, net of cash acquired
|
|
|
|
|
|
|
|
|
|
|
(14,112
|
)
|
|
|
-
|
|
|
|
(4,039
|
)
|
|
|
-
|
|
|
Investment and derivative in Sprint Communications, Inc.
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
(3,100
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Investment in Clearwire (including debt securities)
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(308
|
)
|
|
|
(228
|
)
|
|
Other, net
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
-
|
|
|
|
3
|
|
|
|
11
|
|
|
Net cash used in investing activities
|
|
|
|
|
|
|
|
|
|
|
(18,108
|
)
|
|
|
(3,100
|
)
|
|
|
(6,385
|
)
|
|
|
(6,375
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from debt and financings
|
|
|
|
|
|
|
|
|
|
|
9,500
|
|
|
|
-
|
|
|
|
204
|
|
|
|
9,176
|
|
|
Debt financing costs
|
|
|
|
|
|
|
|
|
|
|
(147
|
)
|
|
|
-
|
|
|
|
(11
|
)
|
|
|
(134
|
)
|
|
Repayments of debt and capital lease obligations
|
|
|
|
|
|
|
|
|
|
|
(3,378
|
)
|
|
|
-
|
|
|
|
(362
|
)
|
|
|
(4,791
|
)
|
|
Proceeds from issuance of common stock and warrants, net
|
|
|
|
|
|
|
|
|
|
|
18,567
|
|
|
|
3,105
|
|
|
|
60
|
|
|
|
29
|
|
|
Other, net
|
|
|
|
|
|
|
|
|
|
|
(14
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Net cash provided by (used in) financing activities
|
|
|
|
|
|
|
|
|
|
|
24,528
|
|
|
|
3,105
|
|
|
|
(109
|
)
|
|
|
4,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase (Decrease) in Cash and Cash Equivalents
|
|
|
|
|
|
|
|
|
|
|
6,359
|
|
|
|
5
|
|
|
|
(3,823
|
)
|
|
|
904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, beginning of period
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
-
|
|
|
|
6,351
|
|
|
|
5,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, end of period
|
|
|
|
|
|
|
|
|
|
$
|
6,364
|
|
|
$
|
5
|
|
|
$
|
2,528
|
|
|
$
|
6,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO CONSOLIDATED FREE CASH FLOW* (NON-GAAP)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions)
|
|
Successor
|
|
Predecessor
|
|
|
|
Quarter
|
|
Quarter
|
|
Year
|
|
|
|
|
|
|
|
Quarter
|
|
Year
|
|
|
|
To
|
|
To
|
|
To
|
|
87 Days
|
|
10 Days
|
|
191 Days
|
|
To
|
|
To
|
|
|
|
Date
|
|
Date
|
|
Date
|
|
Ended
|
|
Ended
|
|
Ended
|
|
Date
|
|
Date
|
|
|
|
12/31/13
|
|
9/30/13
|
|
12/31/13
|
|
12/31/12
|
|
7/10/13
|
|
7/10/13
|
|
12/31/12
|
|
12/31/12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash (Used in) Provided by Operating Activities
|
|
$
|
(761
|
)
|
|
$
|
694
|
|
|
$
|
(61
|
)
|
|
$
|
-
|
|
|
$
|
496
|
|
|
$
|
2,671
|
|
|
$
|
216
|
|
|
$
|
2,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures (2)
|
|
|
(1,969
|
)
|
|
|
(1,878
|
)
|
|
|
(3,847
|
)
|
|
|
-
|
|
|
|
(188
|
)
|
|
|
(3,140
|
)
|
|
|
(1,477
|
)
|
|
|
(4,261
|
)
|
|
Expenditures relating to FCC licenses, net
|
|
|
(115
|
)
|
|
|
(31
|
)
|
|
|
(146
|
)
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
(125
|
)
|
|
|
(46
|
)
|
|
|
(198
|
)
|
|
Other investing activities, net
|
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3
|
|
|
|
(2
|
)
|
|
|
11
|
|
|
Free Cash Flow*
|
|
|
(2,844
|
)
|
|
|
(1,215
|
)
|
|
|
(4,053
|
)
|
|
|
-
|
|
|
|
306
|
|
|
|
(591
|
)
|
|
|
(1,309
|
)
|
|
|
(1,449
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt financing costs
|
|
|
(40
|
)
|
|
|
(107
|
)
|
|
|
(147
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(11
|
)
|
|
|
(44
|
)
|
|
|
(134
|
)
|
|
(Decrease) increase in debt and other, net
|
|
|
(207
|
)
|
|
|
6,329
|
|
|
|
6,122
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(158
|
)
|
|
|
3,316
|
|
|
|
4,385
|
|
|
Acquisitions, net of cash acquired
|
|
|
-
|
|
|
|
(14,112
|
)
|
|
|
(14,112
|
)
|
|
|
-
|
|
|
|
(3,530
|
)
|
|
|
(4,039
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Proceeds from issuance of common stock and warrants, net
|
|
|
15
|
|
|
|
18,552
|
|
|
|
18,567
|
|
|
|
3,105
|
|
|
|
9
|
|
|
|
60
|
|
|
|
8
|
|
|
|
29
|
|
|
Increase in restricted cash
|
|
|
3,050
|
|
|
|
(3,050
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Investment in Clearwire (including debt securities)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(68
|
)
|
|
|
(308
|
)
|
|
|
(100
|
)
|
|
|
(228
|
)
|
|
Investment and derivative in Sprint Communications, Inc.
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,100
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other financing activities, net
|
|
|
1
|
|
|
|
(14
|
)
|
|
|
(14
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Net (Decrease) Increase in Cash, Cash Equivalents and Short-Term
Investments
|
|
$
|
(25
|
)
|
|
$
|
6,383
|
|
|
$
|
6,363
|
|
|
$
|
5
|
|
|
$
|
(3,283
|
)
|
|
$
|
(5,047
|
)
|
|
$
|
1,871
|
|
|
$
|
2,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED CASH FLOW INFORMATION (Unaudited)
|
|
(Millions)
|
|
|
|
|
|
|
|
|
|
Combined (1) Year to Date
|
|
|
|
|
|
|
|
|
|
12/31/13
|
|
12/31/12
|
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
|
|
|
$
|
(3,018
|
)
|
|
$
|
(4,352
|
)
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
6,179
|
|
|
|
6,543
|
|
|
Provision for losses on accounts receivable
|
|
|
|
|
|
|
|
|
455
|
|
|
|
561
|
|
|
Share-based and long-term incentive compensation expense
|
|
|
|
|
|
|
|
|
135
|
|
|
|
82
|
|
|
Deferred income taxes
|
|
|
|
|
|
|
|
|
1,618
|
|
|
|
210
|
|
|
Gain on previously-held equity interests
|
|
|
|
|
|
|
|
|
(2,926
|
)
|
|
|
-
|
|
|
Equity in losses of unconsolidated investments, net
|
|
|
|
|
|
|
|
|
482
|
|
|
|
1,114
|
|
|
Interest expense related to beneficial conversion feature on
convertible bond
|
|
|
|
|
|
|
|
|
247
|
|
|
|
-
|
|
|
Contribution to pension plan
|
|
|
|
|
|
|
|
|
(7
|
)
|
|
|
(108
|
)
|
|
Spectrum hosting contract termination, net (10)
|
|
|
|
|
|
|
|
|
-
|
|
|
|
(170
|
)
|
|
Call premiums on debt redemptions
|
|
|
|
|
|
|
|
|
(180
|
)
|
|
|
-
|
|
|
Amortization and accretion of long-term debt premiums and discounts
|
|
|
|
|
|
|
|
|
(151
|
)
|
|
|
4
|
|
|
Other working capital changes, net
|
|
|
|
|
|
|
|
|
(196
|
)
|
|
|
(805
|
)
|
|
Other, net
|
|
|
|
|
|
|
|
|
(28
|
)
|
|
|
(80
|
)
|
|
Net cash provided by operating activities
|
|
|
|
|
|
|
|
|
2,610
|
|
|
|
2,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures (2)
|
|
|
|
|
|
|
|
|
(6,987
|
)
|
|
|
(4,261
|
)
|
|
Expenditures relating to FCC licenses
|
|
|
|
|
|
|
|
|
(271
|
)
|
|
|
(198
|
)
|
|
Change in short-term investments, net
|
|
|
|
|
|
|
|
|
1,220
|
|
|
|
(1,699
|
)
|
|
Acquisitions, net of cash acquired
|
|
|
|
|
|
|
|
|
(18,151
|
)
|
|
|
-
|
|
|
Investment and derivative in Sprint Communications, Inc.
|
|
|
|
|
|
|
|
|
-
|
|
|
|
(3,100
|
)
|
|
Investment in Clearwire (including debt securities)
|
|
|
|
|
|
|
|
|
(308
|
)
|
|
|
(228
|
)
|
|
Other, net
|
|
|
|
|
|
|
|
|
4
|
|
|
|
11
|
|
|
Net cash used in investing activities
|
|
|
|
|
|
|
|
|
(24,493
|
)
|
|
|
(9,475
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from debt and financings
|
|
|
|
|
|
|
|
|
9,704
|
|
|
|
9,176
|
|
|
Debt financing costs
|
|
|
|
|
|
|
|
|
(158
|
)
|
|
|
(134
|
)
|
|
Repayments of debt and capital lease obligations
|
|
|
|
|
|
|
|
|
(3,740
|
)
|
|
|
(4,791
|
)
|
|
Proceeds from issuance of common stock and warrants, net
|
|
|
|
|
|
|
|
|
18,627
|
|
|
|
3,134
|
|
|
Other, net
|
|
|
|
|
|
|
|
|
(14
|
)
|
|
|
-
|
|
|
Net cash provided by financing activities
|
|
|
|
|
|
|
|
|
24,419
|
|
|
|
7,385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Cash and Cash Equivalents
|
|
|
|
|
|
|
|
|
2,536
|
|
|
|
909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, beginning of period
|
|
|
|
|
|
|
|
|
3,828
|
|
|
|
5,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, end of period
|
|
|
|
|
|
|
|
$
|
6,364
|
|
|
$
|
6,356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION TO CONSOLIDATED FREE CASH FLOW* (NON-GAAP)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined (1) Quarter to Date
|
|
Combined (1) Year to Date
|
|
|
|
12/31/13
|
|
9/30/13
|
|
12/31/12
|
|
12/31/13
|
|
12/31/12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash (Used in) Provided by Operating Activities
|
|
$
|
(761
|
)
|
|
$
|
1,190
|
|
|
$
|
216
|
|
|
$
|
2,610
|
|
|
$
|
2,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures (2)
|
|
|
(1,969
|
)
|
|
|
(2,066
|
)
|
|
|
(1,477
|
)
|
|
|
(6,987
|
)
|
|
|
(4,261
|
)
|
|
Expenditures relating to FCC licenses, net
|
|
|
(115
|
)
|
|
|
(33
|
)
|
|
|
(46
|
)
|
|
|
(271
|
)
|
|
|
(198
|
)
|
|
Other investing activities, net
|
|
|
1
|
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
4
|
|
|
|
11
|
|
|
Free Cash Flow*
|
|
|
(2,844
|
)
|
|
|
(909
|
)
|
|
|
(1,309
|
)
|
|
|
(4,644
|
)
|
|
|
(1,449
|
)
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
Debt financing costs
|
|
|
(40
|
)
|
|
|
(107
|
)
|
|
|
(44
|
)
|
|
|
(158
|
)
|
|
|
(134
|
)
|
|
(Decrease) increase in debt and other, net
|
|
|
(207
|
)
|
|
|
6,329
|
|
|
|
3,316
|
|
|
|
5,964
|
|
|
|
4,385
|
|
|
Acquisitions, net of cash acquired
|
|
|
-
|
|
|
|
(17,642
|
)
|
|
|
-
|
|
|
|
(18,151
|
)
|
|
|
-
|
|
|
Proceeds from issuance of common stock and warrants, net
|
|
|
15
|
|
|
|
18,561
|
|
|
|
3,113
|
|
|
|
18,627
|
|
|
|
3,134
|
|
|
Increase in restricted cash
|
|
|
3,050
|
|
|
|
(3,050
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Investment in Clearwire (including debt securities)
|
|
|
-
|
|
|
|
(68
|
)
|
|
|
(100
|
)
|
|
|
-
|
|
|
|
(228
|
)
|
|
Investment and derivative in Sprint Communications, Inc.
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,100
|
)
|
|
|
(308
|
)
|
|
|
(3,100
|
)
|
|
Other financing activities, net
|
|
|
1
|
|
|
|
(14
|
)
|
|
|
-
|
|
|
|
(14
|
)
|
|
|
-
|
|
|
Net (Decrease) Increase in Cash, Cash Equivalents and
Short-Term Investments
|
|
$
|
(25
|
)
|
|
$
|
3,100
|
|
|
$
|
1,876
|
|
|
$
|
1,316
|
|
|
$
|
2,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
|
(Millions)
|
|
|
Successor
|
|
Predecessor
|
|
|
|
12/31/13
|
|
12/31/12
|
|
12/31/12
|
|
Assets
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
6,364
|
|
|
$
|
5
|
|
|
$
|
6,351
|
|
|
Short-term investments
|
|
|
1,105
|
|
|
|
-
|
|
|
|
1,849
|
|
|
Accounts and notes receivable, net
|
|
|
3,570
|
|
|
|
6
|
|
|
|
3,658
|
|
|
Device and accessory inventory
|
|
|
1,205
|
|
|
|
-
|
|
|
|
1,200
|
|
|
Deferred tax assets
|
|
|
186
|
|
|
|
-
|
|
|
|
1
|
|
|
Prepaid expenses and other current assets
|
|
|
628
|
|
|
|
-
|
|
|
|
700
|
|
|
Total current assets
|
|
|
13,058
|
|
|
|
11
|
|
|
|
13,759
|
|
|
|
|
|
|
|
|
|
|
Investments and other assets
|
|
|
601
|
|
|
|
3,104
|
|
|
|
1,833
|
|
|
Property, plant and equipment, net
|
|
|
16,164
|
|
|
|
-
|
|
|
|
13,607
|
|
|
Goodwill
|
|
|
6,434
|
|
|
|
-
|
|
|
|
359
|
|
|
FCC licenses and other
|
|
|
41,824
|
|
|
|
-
|
|
|
|
20,677
|
|
|
Definite-lived intangible assets, net
|
|
|
8,014
|
|
|
|
-
|
|
|
|
1,335
|
|
|
Total
|
|
$
|
86,095
|
|
|
$
|
3,115
|
|
|
$
|
51,570
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
3,312
|
|
|
$
|
-
|
|
|
$
|
3,487
|
|
|
Accrued expenses and other current liabilities
|
|
|
6,363
|
|
|
|
4
|
|
|
|
5,008
|
|
|
Current portion of long-term debt, financing and capital lease
obligations
|
|
|
994
|
|
|
|
-
|
|
|
|
379
|
|
|
Total current liabilities
|
|
|
10,669
|
|
|
|
4
|
|
|
|
8,874
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, financing and capital lease obligations
|
|
|
32,017
|
|
|
|
-
|
|
|
|
23,962
|
|
|
Deferred tax liabilities
|
|
|
14,227
|
|
|
|
1
|
|
|
|
7,047
|
|
|
Other liabilities
|
|
|
3,598
|
|
|
|
-
|
|
|
|
4,600
|
|
|
Total liabilities
|
|
|
60,511
|
|
|
|
5
|
|
|
|
44,483
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
Common shares
|
|
|
39
|
|
|
|
-
|
|
|
|
6,019
|
|
|
Paid-in capital
|
|
|
27,330
|
|
|
|
3,137
|
|
|
|
47,016
|
|
|
Accumulated deficit
|
|
|
(1,887
|
)
|
|
|
(27
|
)
|
|
|
(44,815
|
)
|
|
Accumulated other comprehensive loss
|
|
|
102
|
|
|
|
-
|
|
|
|
(1,133
|
)
|
|
Total shareholders' equity
|
|
|
25,584
|
|
|
|
3,110
|
|
|
|
7,087
|
|
|
Total
|
|
$
|
86,095
|
|
|
$
|
3,115
|
|
|
$
|
51,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET DEBT* (NON-GAAP) (Unaudited)
|
|
|
|
|
|
|
|
(Millions)
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
|
|
|
12/31/13
|
|
12/31/12
|
|
|
12/31/12
|
|
|
|
|
|
|
|
|
|
Total Debt
|
|
$
|
33,011
|
|
|
$
|
-
|
|
|
$
|
24,341
|
|
|
Less: Cash and cash equivalents
|
|
|
(6,364
|
)
|
|
|
-
|
|
|
|
(6,351
|
)
|
|
Less: Short-term investments
|
|
|
(1,105
|
)
|
|
|
-
|
|
|
|
(1,849
|
)
|
|
Net Debt*
|
|
$
|
25,542
|
|
|
$
|
-
|
|
|
$
|
16,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE OF DEBT (Unaudited)
|
|
|
|
|
|
|
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/13
|
|
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
|
|
Sprint Corporation
|
|
|
|
|
|
9,000
|
|
|
|
|
|
|
|
|
|
Sprint Communications, Inc.
|
|
|
|
|
|
|
|
Export Development Canada Facility (Tranche 2)
|
|
3.618%
|
|
12/15/2015
|
|
500
|
|
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.
|
|
|
|
|
|
13,780
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
iPCS Inc.
|
|
|
|
|
|
|
|
Second Lien Senior Secured Floating Rate Notes due 2014
|
|
3.492%
|
|
05/01/2014
|
|
181
|
|
iPCS Inc.
|
|
|
|
|
|
181
|
|
|
|
|
|
|
|
|
|
EKN Secured Equipment Facility ($1 Billion)
|
|
2.030%
|
|
03/30/2017
|
|
889
|
|
|
|
|
|
|
|
|
|
Vendor financing notes - Clearwire Communications LLC
|
|
|
|
2015
|
|
20
|
|
|
|
|
|
|
|
|
|
Tower financing obligation
|
|
6.092%
|
|
09/30/2021
|
|
339
|
|
Capital lease obligations and other
|
|
|
|
2014 - 2022
|
|
187
|
|
TOTAL PRINCIPAL
|
|
|
|
|
|
31,529
|
|
|
|
|
|
|
|
|
|
Net premiums
|
|
|
|
|
|
1,482
|
|
TOTAL DEBT
|
|
|
|
|
|
$ 33,011
|
|
|
|
|
|
|
|
|
|
Supplemental information:
The Company had $2.1 billion of borrowing capacity available under our
unsecured revolving bank credit facility as of December 31, 2013. Our
unsecured revolving bank credit facility expires in February 2018.
In May 2012, certain of our subsidiaries entered into a $1.0 billion
secured equipment credit facility to finance equipment-related purchases
for Network Vision. The facility is equally divided into two consecutive
tranches of $500 million, with the drawdown availability contingent upon
Sprint's acquisition of equipment-related purchases from Ericsson, up to
the maximum of each tranche, ending on May 31, 2013 and May 31, 2014,
for the first and second tranche, respectively. Interest and principal
are payable semi-annually with a final maturity of March 2017 for both
tranches.
NOTES TO THE FINANCIAL INFORMATION (Unaudited)
(1) Except for the quarter-to-date December 31, 2013 period,
financial results for 2013 and 2012 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 December
31, 2013. 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 year results of operations for the Predecessor
and Successor periods. For purposes of presenting the comparative
financial information in the tables, we have labeled the quarter-to-date
December 31, 2013 period as Combined, however, these results are not
combined but rather represent the consolidated results of operations in
accordance with accounting principles generally accepted in the United
States (GAAP).
(2) Capital expenditures is an accrual based amount that
includes the changes in unpaid capital expenditures and excludes
capitalized interest. Cash paid for capital expenditures includes total
capitalized interest of $1 million, $13 million and $29 million for the
predecessor third and second quarters and year-to-date periods of 2013,
respectively, $16 million, $14 million and $30 million for the successor
fourth and third quarters and year-to-date periods of 2013,
respectively, and $52 million, $102 million, and $269 million for the
third and second quarters and year-to-date periods of 2012,
respectively, and can be found in the Condensed Consolidated Cash Flow
Information and the Reconciliation to Free Cash Flow*.
(3) Postpaid subscribers on the Sprint platform are defined
as retail subscribers on the CDMA network, including subscribers
utilizing WiMax and LTE technology. Postpaid subscribers previously on
the Nextel platform are defined as retail postpaid subscribers on the
iDEN network through June 30, 2013. Postpaid subscribers from
transactions are defined as retail postpaid subscribers 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 net
additions for the Sprint platform are tablets and connected devices,
which generally generate a significantly lower ARPU than other postpaid
subscribers. During the fourth quarter 2013, net additions for the
Sprint platform included approximately 466,000 tablets.
(4) Prepaid subscribers on the Sprint platform are defined as
retail prepaid subscribers and session-based tablet users who utilize
the CDMA network and WiMax and LTE technology via our multi-brand
offerings. Prepaid subscribers previously on the Nextel platform are
defined as retail prepaid subscribers who utilized iDEN technology
through June 30, 2013. Prepaid subscribers from transactions are defined
as retail prepaid subscribers acquired from U.S. Cellular in May 2013
and Clearwire in July 2013 who had not deactivated or been recaptured on
the Sprint platform.
(5) Nextel Subscriber Recaptures are defined as the number of
subscribers that deactivated service from the postpaid or prepaid Nextel
platform, as applicable, during each period but remained with the
Company as subscribers on the postpaid or prepaid Sprint platform,
respectively. Subscribers 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.
(6) The Postpaid and Prepaid Nextel Recapture Rates are
defined as the portion of total subscribers that left the postpaid or
prepaid Nextel platform, as applicable, during the period and were
retained on the postpaid or prepaid Sprint platform, respectively.
(7) Severance and lease exit costs are primarily associated
with workforce reductions and with exit costs associated with the Nextel
platform and acquisition of Clearwire.
(8) For the first quarter of 2012, gains from asset
dispositions and exchanges are primarily due to spectrum exchange
transactions.
(9) For the first quarter of 2012, asset impairment and
abandonment activity includes $18 million related to a change in our
backhaul architecture in connection to our Network Vision design from
microwave to a more cost effective fiber backhaul.
(10) On March 16, 2012, we elected to terminate the
arrangement with LightSquared LP and LightSquared, Inc. (LightSquared).
As we have no future service obligations with respect to the arrangement
with LightSquared, we recognized $236 million of the advanced payments
as other operating income in the first quarter of 2012. As a result of
the termination of the hosting agreement, we impaired capitalized costs
specific to LightSquared's 1.6 GHz spectrum that the company no longer
intends to deploy which totaled $66 million.
(11) Favorable developments during the first quarter of 2012
relating to disagreements with local exchange carriers resulted in a
reduction in expected access costs of $17 million.
(12) For the first quarter of 2013, litigation activity is
primarily a result of favorable developments in connection with a tax
(non-income) related contingency.
(13) For the third and second quarters of 2013, included in
selling, general and administrative expenses are fees paid to unrelated
parties for the transaction with SoftBank and our acquisition of
Clearwire.
(14) Hurricane Sandy amounts for the fourth quarter and
year-to-date periods of 2013 represent insurance recoveries. Hurricane
Sandy charges for the fourth quarter of 2012, represent estimated
hurricane-related charges of $45 million, consisting of customer
credits, incremental roaming costs, network repairs and replacements.
*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 includes the activity and accounts of Sprint
Corporation as of and for the three and twelve month periods ended
December 31, 2013 and as of and for the 87 days ended December 31, 2012,
which includes the activity and accounts of Sprint Communications, Inc.,
prospectively, beginning on July 11, 2013. 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'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 period October 5, 2012 (date of Starburst
II incorporation) through December 31, 2013 does not purport to
represent what our consolidated results of operations would have been if
the acquisition had occurred as of the beginning of the first period
presented. For purposes of presenting the comparative financial
information in the tables, we have labeled the quarter-to-date December
31, 2013 results as combined, however, these results are not combined
but rather represent the consolidated results of operations in
accordance with accounting principles generally accepted in the United
States (GAAP).
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, including our ability to fund discretionary spending such as
capital expenditures, spectrum acquisitions and other investments and
our ability to incur and service debt. 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.
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, and amounts included as
investments in Clearwire and Sprint Communications, Inc. during the
period. 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, subscriber 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 ability to operationalize the anticipated
benefits from the SoftBank, Clearwire and U.S. Cellular transactions,
the development and deployment of new technologies; efficiencies and
cost savings of new technologies and services; customer and network
usage; customer 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
Nextel's Annual Report on Form 10-K for the year ended December 31,
2012, our Quarterly Report on Form 10-Q for the second quarter of 2013,
our Quarterly Report on Form 10-Q for the quarter ended September 30,
2013, and when filed our Annual Report on Form 10-K for the year ended
December 31, 2013. 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) offers a comprehensive range of wireless and wireline
communications services bringing the freedom of mobility to consumers,
businesses and government users. Sprint served more than 55 million
customers at the end of 2013 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 prepaid 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. The American
Customer Satisfaction Index rated Sprint as the most improved company in
customer satisfaction, across all 47 industries, during the last five
years. Sprint has been named to the Dow Jones Sustainability Index
(DSJI) North America in 2011, 2012 and 2013. You can learn more and
visit Sprint at www.sprint.com
or www.facebook.com/sprint
and www.twitter.com/sprint.
###
i Sprint Spark actual deployment plans and speeds will be
determined over time based on many factors, including build economics
and the availability of equipment, devices and applications.
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