sprint nextel Quarterly Presentations 2005 4th

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sprint nextel Quarterly Presentations 2005 4th

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  30. 30. +E # 8 # L Long Other & For the Quarter Ended December 31, 2005 Consolidated Wireless Distance Local Elim inations $ 671 $ 512 $ 102 $ 407 $ (350) Operating income (loss) Special items 423 3 (15) 87 348 1,094 515 87 494 (2) Adjusted operating income Depreciation and amortization 2,438 2,043 136 259 - $ 3,532 $ 2,558 $ 223 $ 753 $ (2) Adjusted OIBDA Special items (423) $ 3,109 OIBDA Long Other & For the Quarter Ended December 31, 2004 Consolidated Wireless Distance Local Elim inations $ 970 $ 406 $ 109 $ 455 $ - Operating income (loss) Special items 50 11 15 24 - 1,020 417 124 479 - Adjusted operating income (loss) Depreciation and amortization 1,033 649 111 274 (1) $ 2,053 $ 1,066 $ 235 $ 753 $ (1) Adjusted OIBDA Long Other & For the Year Ended December 31, 2005 Consolidated Wireless Distance Local Elim inations $ 3,826 $ 2,173 $ 512 $ 1,758 $ (617) Operating income (loss) Special items 844 105 30 93 616 4,670 2,278 542 1,851 (1) Adjusted operating income Depreciation and amortization 6,269 4,693 489 1,090 (3) $ 10,939 $ 6,971 $ 1,031 $ 2,941 $ (4) Adjusted OIBDA Long Other & For the Year Ended December 31, 2004 Consolidated Wireless Distance Local Elim inations $ (303) $ 1,552 $ (3,589) $ 1,736 $ (2) Operating income (loss) Special items 3,751 25 3,653 73 - 3,448 1,577 64 1,809 (2) Adjusted operating income (loss) Depreciation and amortization 4,720 2,563 1,071 1,089 (3) $ 8,168 $ 4,140 $ 1,135 $ 2,898 $ (5) Adjusted OIBDA *( !quot;# $ quot;
  31. 31. +E # 8 # L Year Ended December 31, December 31, 2005 2004 $ 1,586 $ (1,420) Earnings (Loss) Available to Common Shareholders Earnings allocated to participating securities - 9 Preferred stock dividends paid 7 7 1,593 (1,404) Net Income (Loss) Cumulative effect of change in accounting principle 16 - 1,609 (1,404) Income (Loss) from Continuing Operations Special items (net of taxes) Restructuring and asset impairments 78 2,342 Merger integration expense 456 - Hurricane charges (excluding asset impairments) 68 21 Net gains on investment activities and equity in earnings (106) - Premium (Discount) on early retirement of debt 22 115 MCI (WorldCom) settlement - (9) Motorola consent fee 50 - $ 2,177 $ 1,065 Adjusted Net Income Amortization (net of taxes) 2,014 1,984 $ 4,191 $ 3,049 Adjusted Net Income before Amortization $ 0.54 $ (0.50) Diluted Earnings (Loss) Per Share Cumulative effect of change in accounting principle - - 0.54 (0.50) Earnings (Loss) Per Share from Continuing Operations Special items 0.19 0.86 $ 0.73 $ 0.36 Adjusted Earnings Per Share Amortization (net of taxes) 0.68 0.68 $ 1.41 $ 1.04 Adjusted Earnings Per Share before Amortization * !quot;# $ quot;
  32. 32. +E # 8 # L Quarter Ended Year Ended December 31, December 31, December 31, December 31, 2005 2004 2005 2004 Special Item Reconciliations $ 512 $ 435 $ 2,288 $ 1,523 Operating income (loss) Special items: - Restructuring and asset impairments (17) 11 20 30 Hurricane charges (excluding asset impairments) 20 - 85 - MCI bad debt - - - (5) 515 446 2,393 1,548 Adjusted operating income * Depreciation and amortization 2,043 1,863 7,826 7,394 $ 2,558 $ 2,309 $ 10,219 $ 8,942 Adjusted OIBDA * 6.9% 6.6% 8.0% 6.0% Operating income margin 34.6% 34.8% 35.7% 35.5% Adjusted OIBDA Margin * ** !quot;# $ quot;
  33. 33. +E # 8 # L Quarter Ended Year Ended Quarter Ended Year Ended December 31, December 31, December 31, December 31, 2005 2005 2004 2004 Wireless Pro Forma Adjusted OIBDA* $ 2,558 $ 10,219 $ 2,309 $ 8,942 Service, wholesale, affiliate and other net operating revenues 7,388 28,631 6,634 25,183 Adjusted OIBDA margin* 34.6% 35.7% 34.8% 35.5% Operating income $ 512 $ 2,288 $ 435 $ 1,523 Operating income margin 6.9% 8.0% 6.6% 6.0% Consolidated Pro Forma Adjusted OIBDA* $ 3,532 Total net operating revenues 11,296 Adjusted OIBDA margin* 31.3% Operating income $ 671 Operating income margin 5.9% * !quot;# $ quot;
  34. 34. +E # 8 # L Consolidated Free Cash Flow Year Ended December 31, December 31, 2005 2004 $ 10,939 $ 8,168 Adjusted OIBDA Adjust for special items (844) (3,751) Other operating activities, net 583 2,208 Capital expenditures (5,057) (3,980) Cash acquired in Nextel merger, net of cash paid 1,183 - Purchase of US Unwired, net of cash acquired (968) - Purchase of Gulf Coast Wireless, net of cash acquired (211) - Purchase of Independent Wireless One, net of cash acquired (192) - Dividends paid (523) (670) Proceeds from sales of assets 648 77 Other investing activities, net (114) (55) 5,444 1,997 Free Cash Flow Decrease in debt, net (1,170) (1,884) Investments in debt securities, net (13) (98) Proceeds from common stock issued 432 1,874 Other financing activities, net 33 - $ 4,726 $ 1,889 Change in cash and equivalents - GAAP Pro Forma Consolidated Statements of Operations Year Ended December 31, December 31, 2005 2004 $ 3,812 $ (332) Operating income (loss) Special items Restructuring and asset impairments 125 3,731 Merger and integration expense 737 - Hurricane charges (excluding asset impairments) 111 34 MCI settlement - (14) 4,785 3,419 Adjusted operating income Depreciation and amortization 9,402 9,551 $ 14,187 $ 12,970 Adjusted OIBDA * !quot;# $ quot;
  35. 35. +E # 8 # L Local as Previously Local as Previously Quarter Ended 12/31/2004 Reported Quarter Ended 12/31/2005 Reported $ 1,509 Net Operating Revenues $ 1,488 Net Operating Revenues Operating Expenses Operating Expenses Costs of services and products 465 Costs of services and products 482 Selling, general and administrative 287 Selling, general and administrative 251 Depreciation and amortization 273 Depreciation and amortization 261 Restructuring and asset impairments 20 Restructuring and asset impairments 72 Total operating expenses 1,045 Total operating expenses 1,066 $ 464 Operating Income (Loss) $ 422 Operating Income (Loss) $ 761 Adjusted OIBDA $ 763 Adjusted OIBDA $ 329 Capex $ 314 Capex $ 464 Operating Income (Loss) $ 422 Operating Income (Loss) Special Items 24 Special Items 80 $ 488 Adjusted Operating Income (Loss) $ 502 Adjusted Operating Income (Loss) Depreciation and amortization 273 Depreciation and amortization 261 $ 761 Adjusted OIBDA $ 763 Adjusted OIBDA 51% 50% Adjusted OIBDA Margin Adjusted OIBDA Margin 31% Operating Income Margin 28% Operating Income Margin *= !quot;# $ quot;
  36. 36. +E # 8 # L Local as Previously Local as Previously Year to Date 12/31/2005 Reported Year to Date 12/31/2004 Reported $ 5,964 Net Operating Revenues $ 6,021 Net Operating Revenues Operating Expenses Operating Expenses Costs of services and products 1,922 Costs of services and products 1,877 Selling, general and administrative 1,077 Selling, general and administrative 1,254 Depreciation and amortization 1,094 Depreciation and amortization 1,084 Restructuring and asset impairments 75 Restructuring and asset impairments 40 Total operating expenses 4,168 Total operating expenses 4,255 $ 1,796 Operating Income (Loss) $ 1,766 Operating Income (Loss) $ 2,976 Adjusted OIBDA $ 2,923 Adjusted OIBDA $ 880 Capex $ 1,042 Capex $ 1,766 Operating Income (Loss) $ 1,796 Operating Income (Loss) Special Items 73 Special Items 86 $ 1,839 Adjusted Operating Income (Loss) $ 1,882 Adjusted Operating Income (Loss) Depreciation and amortization 1,084 Depreciation and amortization 1,094 $ 2,923 Adjusted OIBDA $ 2,976 Adjusted OIBDA 49% Adjusted OIBDA Margin 50% 29% Adjusted OIBDA Margin Operating Income Margin 30% Operating Income Margin * !quot;# $ quot;

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