sprint nextel Quarterly Presentations 2007 1st

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sprint nextel Quarterly Presentations 2007 1st

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  17. 17. %? 2: ! ! RECONCILIATIONS OF EARNINGS PER SHARE (Unaudited) (millions, except per share data) Quarter Ended March 31, March 31, 2007 2006 $ (211) $ 417 (Loss) Income Available to Common Shareholders Preferred stock dividends paid - 2 Net (Loss) Income (211) 419 Discontinued operations, net - (255) (Loss) Income from Continuing Operations (211) 164 (a) Special items (net of taxes) Severance, lease exit costs and asset impairments 109 23 Merger and integration expense 60 46 (a) Contingencies and Other 25 - Net gains on investment activities and equity in earnings - (32) (Gain) on early retirement of debt (2) - Adjusted Net (Loss) Income* $ (19) $ 201 Amortization (net of taxes) 551 565 $ 532 $ 766 Adjusted Net Income before Amortization* $ (0.07) $ 0.14 Diluted (Loss) Earnings Per Share Discontinued operations - (0.09) (0.07) 0.05 (Loss) Earnings Per Share from Continuing Operations Special items 0.07 0.02 Adjusted Earnings Per Share* 0.00 $ 0.07 (b) Amortization (net of taxes) 0.18 0.19 (b) Adjusted Earnings Per Share before Amortization* $ 0.18 $ 0.26 (a) See accompanying Notes to Financial Data for more information (b) Rounding differences are forced to the Amortization (net of taxes) line I
  18. 18. %? 2: ! ! RECONCILIATIONS OF EARNINGS PER SHARE (Unaudited) (millions, except per share data) Quarter Ended December 31, 2006 Income Available to Common Shareholders $ 261 Preferred stock dividends paid - Net Income (Loss) 261 Discontinued operations, net - Cumulative effect of change in accounting principle - Income from Continuing Operations 261 (a) Special items (net of taxes) Severance, lease exit costs and asset impairments 52 Merger and integration expense 71 Hurricane charges (excluding asset impairments) - Net gains on investment activities and equity in earnings (92) (Gain) Loss on early retirement of debt - Tax audit settlement (16) Motorola consent fee - Adjusted Net Income* $ 276 Amortization (net of taxes) 560 Adjusted Net Income before Amortization* $ 836 Diluted Earnings Per Share $ 0.09 Discontinued operations - Cumulative effect of change in accounting principle - Earnings Per Share from Continuing Operations 0.09 Special items - (b) Adjusted Earnings Per Share* $ 0.09 (d) Amortization (net of taxes) 0.20 (b) Adjusted Earnings Per Share before Amortization* $ 0.29 (a) See accompanying Notes to Financial Data for more information on special items. (b) Earnings per share data may not add due to rounding. (c) Pro forma consolidated information has been presented as if the Sprint Nextel merger occurred at the beginning of 2005. The fourth quarter 2005 and all 2006 periods reflect actual results. (d) Rounding difference is pushed to this line. H
  19. 19. %? 2: ! ! NON-GAAP MEASURES AND RECONCILIATIONS (Unaudited) (millions) Long Corporate & For the Quarter Ended March 31, 2007 Consolidated Wireless Distance Eliminations Operating Income (Loss) $ 1 $ 94 $ 23 $ (116) (a) Special items Severance, lease exit costs and asset impairments 174 141 32 1 Merger and integration expense 99 - - 99 (a) Contingencies and Other 41 18 23 - Adjusted Operating Income (Loss)* 315 253 78 (16) Depreciation and amortization 2,268 2,142 127 (1) 2,583 2,395 205 (17) Adjusted OIBDA* Capital expenditures 1,607 1,403 144 60 Adjusted OIBDA* less Capex $ 976 $ 992 $ 61 $ (77) Long Corporate & For the Quarter Ended March 31, 2006 Consolidated Wireless Distance Eliminations Operating Income (Loss) $ 484 $ 433 $ 107 $ (56) Special items Severance, lease exit costs and asset impairments 38 28 10 - Merger and integration expense 76 - - 76 Adjusted Operating Income* 598 461 117 20 Depreciation and amortization 2,346 2,223 122 1 Adjusted OIBDA* 2,944 2,684 239 21 Capital expenditures 1,243 1,071 92 80 $ 1,701 $ 1,613 $ 147 $ (59) Adjusted OIBDA* less Capex (a) See accompanying Notes to Financial Data for more information
  20. 20. %? 2: ! ! NON-GAAP MEASURES AND RECONCILIATIONS (Unaudited) (millions) For the Quarter Ended December 31, 2006 Consolidated $ 569 Operating Income (Loss) (a) Special items Severance, lease exit costs and asset impairments 79 Merger and integration expense 117 Adjusted Operating Income* 765 Depreciation and amortization 2,404 3,169 Adjusted OIBDA* Capital expenditures 2,612 $ 557 Adjusted OIBDA* less Capex
  21. 21. %? 2: ! ! NON-GAAP MEASURES AND RECONCILIATIONS (millions) Quarter Ended March 31, March 31, 2007 2006 Adjusted OIBDA* $ 2,583 $ 2,944 Adjust for special items (314) (114) Other operating activities, net 195 (563) (a) 2,464 2,267     quot; quot; £ £ ¨© ¨© © © ¨ ¨ ¨ ¨ ¨ ¨ ! !     quot; quot; £ £ ¨© ¨© © © ¨ ¨ ¨ ¨ ¨ ¨ ! ! ¡ ¡ ¢ ¢ ¤¥ ¤¥ ¦ ¦ ¦ ¦ ¦ ¦ ¤ ¤ ¥ ¥ ¡ ¡ ¦ ¦ ¢ ¢ § § ¡ ¡ ¢ ¢ ¤¥ ¤¥ ¦ ¦ ¦ ¦ ¦ ¦ ¤ ¤ ¥ ¥ ¡ ¡ ¦ ¦ ¢ ¢ § § Capital expenditures (1,813) (1,518) Dividends paid (72) (76) Proceeds from sales of assets 27 119 Payments for FCC Licenses (107) (136) Other investing activities, net (2) 152 Free Cash Flow* 497 808 Increase (decrease) in debt, net 27 (868) Retirement of redeemable preferred shares - (247) Purchase of common shares (300) - Discontinued operations activity, net (b) - 298 - (3,399) Purchase of PCS Affiliates and Velocita, net of cash acquired Change in restricted cash - 93 Investments in debt securities, net 7 830 Proceeds from common shares issued 69 185 Change in cash and cash equivalents - GAAP $ 300 $ (2,300) March 31, 2007 Total Debt $ 22,171 Less: Cash on hand (2,346) Less: Current marketable securities (8) Net Debt* $ 19,817 (a) Other operating activities, net includes the change in working capital, change in deferred income taxes, miscellaneous operating activities and non-operating items in net income (loss).
  22. 22. %? 2: ! ! As of March 31, 2007 Total Debt $ 22,171 Less: Cash on Hand (2,346) Less: Current Marketable Securities (8) Net Debt * $ 19,817 Adjusted OIBDA for the three months ended, March 31, 2007 $ 2,583 x4 $ 10,332 Annualized Adjusted OIBDA * Net Debt/Annualized Adjusted OIBDA * 1.92 =

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