Sprint Nextel reported financial results for the first quarter of 2008, with consolidated revenues declining 8% year-over-year to $9.3 billion due to lower contributions from Wireless. Wireless revenues fell 9% to $8 billion as average revenue per user and subscriber numbers declined. Wireline revenues grew 2% to $1.6 billion on strong demand for IP services. The company reported a net loss of $505 million for the quarter and saw post-paid subscriber losses of over 1 million. Sprint focused on improving the customer experience and reducing costs, while making progress on wireless integration goals.
Sprint Nextel reported its first quarter 2007 results. While net subscriber additions increased to nearly 600,000, adjusted operating income and adjusted OIBDA declined compared to the previous year. This was due to increased operating expenses from network investments and device subsidies to drive growth. Wireless revenues grew 2% due to higher data revenues, while postpaid ARPU declined. Wireline IP revenues increased 28% year-over-year. Sprint reiterated its full-year revenue guidance of $41-42 billion.
- Net operating revenues increased 7% year-over-year to $10.4 billion in Q4 2006 and increased 7% to $41 billion for full-year 2006 compared to pro forma 2005.
- Adjusted OIBDA increased 13% to $3.2 billion in Q4 2006 and increased 12% to $12.7 billion for full-year 2006 compared to pro forma 2005.
- Diluted EPS from continuing operations was $0.09 in Q4 2006 compared to break-even in Q4 2005, and was $0.34 for full-year 2006 compared to $0.40 for full-year 2005.
BB&T reported 2008 net income of $1.5 billion and earnings per common share of $2.71. For the fourth quarter of 2008, net income totaled $305 million and net income available to common shareholders totaled $284 million, or $.51 per diluted common share. For the full year 2008, BB&T's net income available to common shareholders was $1.50 billion compared to $1.73 billion earned in 2007, a decrease of 13.6%.
- Sprint Nextel reported first quarter 2006 results with strong wireless demand and 1.3 million net subscriber additions. Revenue increased 66% year-over-year to $11.5 billion.
- Wireless revenue grew 13% to $8.5 billion with Adjusted OIBDA increasing 15% and margins improving. Long distance revenue declined 3% while local revenue grew 1%.
- The company added 84,000 net DSL subscribers and continued progress on strategic initiatives including the planned spin-off of the local business under the EMBARQ brand.
Sovereign Bancorp reported financial results for the fourth quarter and full year of 2007. For Q4, the company reported a net loss of $1.6 billion compared to a net loss of $129 million in Q4 2006, primarily due to goodwill impairments. For the full year, Sovereign reported a net loss of $1.3 billion compared to net income of $137 million in 2006. The company is taking steps to strengthen its capital position such as discontinuing its dividend and reducing expenses. Sovereign's non-performing loans increased and net interest margin expanded in Q4.
burlington northern santa fe 4Q 2008 Investors Reportfinance16
This document provides an annual investors' report for Burlington Northern Santa Fe Corporation for 2008. Some key points:
- For Q4 2008, BNSF reported earnings of $1.79 per diluted share, a 23% increase over Q4 2007. Freight revenues increased 3% to $4.25 billion.
- For full year 2008, BNSF achieved earnings of $6.08 per diluted share, a 19% increase over 2007. Operating revenues increased 14% to $18 billion.
- Operating expenses increased $1.8 billion for the full year, primarily due to a $1.3 billion increase in fuel expenses from higher fuel prices.
- BNSF
Ken Lewis, Chairman, President and CEO of Bank of America, presented at the Citigroup Financial Services Conference on January 31, 2007. The presentation highlighted opportunities for growth at Bank of America and summarized key financial metrics for 2006, including 10% revenue growth and 16% growth in net income compared to the previous year. Lewis also outlined the company's short-term outlook and strategies to continue achieving attractive earnings growth in a challenging environment.
Duke Energy reported second quarter 2005 earnings per share of $0.33, down from $0.46 in the second quarter of 2004. Mild weather led to lower sales for the Franchised Electric and DENA segments. Field Services and International posted strong results. Despite weather impacts, Duke Energy expects to meet its 2005 EPS target of $1.60 per share due to anticipated stronger performance in the second half of the year.
Sprint Nextel reported its first quarter 2007 results. While net subscriber additions increased to nearly 600,000, adjusted operating income and adjusted OIBDA declined compared to the previous year. This was due to increased operating expenses from network investments and device subsidies to drive growth. Wireless revenues grew 2% due to higher data revenues, while postpaid ARPU declined. Wireline IP revenues increased 28% year-over-year. Sprint reiterated its full-year revenue guidance of $41-42 billion.
- Net operating revenues increased 7% year-over-year to $10.4 billion in Q4 2006 and increased 7% to $41 billion for full-year 2006 compared to pro forma 2005.
- Adjusted OIBDA increased 13% to $3.2 billion in Q4 2006 and increased 12% to $12.7 billion for full-year 2006 compared to pro forma 2005.
- Diluted EPS from continuing operations was $0.09 in Q4 2006 compared to break-even in Q4 2005, and was $0.34 for full-year 2006 compared to $0.40 for full-year 2005.
BB&T reported 2008 net income of $1.5 billion and earnings per common share of $2.71. For the fourth quarter of 2008, net income totaled $305 million and net income available to common shareholders totaled $284 million, or $.51 per diluted common share. For the full year 2008, BB&T's net income available to common shareholders was $1.50 billion compared to $1.73 billion earned in 2007, a decrease of 13.6%.
- Sprint Nextel reported first quarter 2006 results with strong wireless demand and 1.3 million net subscriber additions. Revenue increased 66% year-over-year to $11.5 billion.
- Wireless revenue grew 13% to $8.5 billion with Adjusted OIBDA increasing 15% and margins improving. Long distance revenue declined 3% while local revenue grew 1%.
- The company added 84,000 net DSL subscribers and continued progress on strategic initiatives including the planned spin-off of the local business under the EMBARQ brand.
Sovereign Bancorp reported financial results for the fourth quarter and full year of 2007. For Q4, the company reported a net loss of $1.6 billion compared to a net loss of $129 million in Q4 2006, primarily due to goodwill impairments. For the full year, Sovereign reported a net loss of $1.3 billion compared to net income of $137 million in 2006. The company is taking steps to strengthen its capital position such as discontinuing its dividend and reducing expenses. Sovereign's non-performing loans increased and net interest margin expanded in Q4.
burlington northern santa fe 4Q 2008 Investors Reportfinance16
This document provides an annual investors' report for Burlington Northern Santa Fe Corporation for 2008. Some key points:
- For Q4 2008, BNSF reported earnings of $1.79 per diluted share, a 23% increase over Q4 2007. Freight revenues increased 3% to $4.25 billion.
- For full year 2008, BNSF achieved earnings of $6.08 per diluted share, a 19% increase over 2007. Operating revenues increased 14% to $18 billion.
- Operating expenses increased $1.8 billion for the full year, primarily due to a $1.3 billion increase in fuel expenses from higher fuel prices.
- BNSF
Ken Lewis, Chairman, President and CEO of Bank of America, presented at the Citigroup Financial Services Conference on January 31, 2007. The presentation highlighted opportunities for growth at Bank of America and summarized key financial metrics for 2006, including 10% revenue growth and 16% growth in net income compared to the previous year. Lewis also outlined the company's short-term outlook and strategies to continue achieving attractive earnings growth in a challenging environment.
Duke Energy reported second quarter 2005 earnings per share of $0.33, down from $0.46 in the second quarter of 2004. Mild weather led to lower sales for the Franchised Electric and DENA segments. Field Services and International posted strong results. Despite weather impacts, Duke Energy expects to meet its 2005 EPS target of $1.60 per share due to anticipated stronger performance in the second half of the year.
- Black & Decker reported first quarter 2008 net earnings of $67.4 million, down from $108.1 million in first quarter 2007, due to lower sales and higher costs. Excluding restructuring charges, earnings were $79.6 million.
- Sales decreased 5% to $1.5 billion due to a sharp decline in demand in North America, partly offset by strong growth in developing markets.
- The company expects a mid-to-high single digit decline in organic sales for the second quarter and full year and lowered its full-year earnings guidance.
Aon reported financial results for the 4th quarter and full year of 2008. 4th quarter revenue was $1.9 billion, with organic growth in commissions and fees of 2%. EPS from continuing operations was $0.43. For the quarter, adjusted pretax margin increased 150 basis points to 19.9% in brokerage and 180 basis points to 19% in consulting. Full year 2008 revenue increased 4% to $7.6 billion with organic growth of 2%, and net income increased 71% to $1.5 billion compared to the prior year.
This document provides quarterly financial data for Citigroup, including income statements, balance sheets, ratios, and other metrics. Some key details:
- For Q3 2003, income from continuing operations was $4.691 billion, up 27% from Q3 2002. Net income was $4.691 billion, up 20% from a year ago.
- Capital ratios like Tier 1 and Total Capital were all above requirements at the end of Q3 2003, with Tier 1 at 9.5% and Total Capital at 12.6%.
- Total assets increased to over $1.208 trillion in Q3 2003, up 17% from a year ago. Stockholders' equity rose
Duke Energy reported third quarter 2005 earnings per share of $0.04 compared to $0.41 in the third quarter of 2004. Ongoing earnings per share, which excludes special items, were $0.59 compared to $0.37 in the prior year. Results were boosted by warmer weather and strong performance in gas and electric businesses, but hurt by charges from exiting the DENA business. Duke Energy remains confident in exceeding its $1.65 per share employee incentive target for the year.
Sprint reported strong financial results for the 4th quarter and full year 2004 with record subscriber gains in wireless and DSL. Key highlights include:
- Wireless added 1.58 million net subscribers in 4Q driven by strong direct, affiliate and wholesale performance.
- Local saw outstanding DSL customer additions, adding 60,000 in 4Q.
- Profits grew substantially both in the quarter and full year, and free cash flow and debt reduction exceeded targets.
Revenues increased year-over-year for both the quarter and full year. Sprint exceeded its debt reduction goal and ended the year with $12.6 billion in net debt.
Citigroup reported quarterly financial results, with net income of $3.92 billion for 3Q 2002, a 23% increase over 3Q 2001. Core income, which excludes certain items, was $3.79 billion for 3Q 2002, up 17% from the prior year. Diluted earnings per share on net income were $0.76 for the quarter, rising 25% year-over-year, while diluted EPS on core income increased 19% to $0.74. Citigroup operates as a global financial services company with over 200 million customer accounts in more than 100 countries.
Computer Sciences Corporation (CSC) reported its second quarter fiscal 2006 results including: revenue of $3.57 billion, up 5.3% from the previous year; net income of $99.5 million including a $33.1 million non-cash impairment charge; and new contract awards of $2.5 billion. Revenue growth was driven by increased commercial and U.S. federal government business. Significant new contracts were won with Banca Intesa, Centers for Medicare and Medicaid Services, and General Dynamics. CSC's pipeline for U.S. federal opportunities over the next 17 months is approximately $30 billion.
Citigroup reported record net income of $15.28 billion for 2002, an 8% increase over 2001. Net income per share also rose 8% to $2.94. Core income for the year was a record $13.65 billion, or $2.63 per share. However, fourth quarter net income declined 37% to $2.43 billion due to a $1.55 billion legal settlement charge. Core income fell 32% to $2.44 billion. Revenue grew 7% for the full year to $75.76 billion but was flat in the fourth quarter at $18.93 billion.
- Bank of America reported third quarter 2008 results, with earnings impacted by the challenging economic environment and market disruptions.
- Net income was $1.2 billion, down from the prior year due to higher credit costs from housing price declines and rising unemployment.
- Results also reflected charges related to financial institution failures, cash fund support, and losses on trading positions.
- Countrywide results were included for the first time, adding $259 million to earnings. Integration is proceeding as planned.
allstate Quarterly Investor Information Earnings Press Release 2004 1stfinance7
Allstate reported strong financial results for the first quarter of 2004, with a 43% increase in net income and 52% increase in operating income per share compared to the first quarter of 2003. Operating income reached $1 billion for the first quarter, driven by higher premiums earned in Property-Liability and higher realized capital gains. Property-Liability underwriting income increased 109% due to higher premiums, favorable loss trends, and lower catastrophes. Allstate Financial also saw increases in premiums and deposits as well as operating income. As a result of the strong performance, Allstate increased its full-year 2004 operating income per share guidance.
U.S. Bancorp reported net income of $1,130 million for the first quarter of 2007, down slightly from $1,153 million in the first quarter of 2006. Diluted earnings per share were $0.63, equal to the prior year. The net interest margin declined to 3.51% from 3.80% a year ago due to competitive pressures and changes in the yield curve. Noninterest income grew 5.1% driven by fee businesses, but this growth was offset by increased credit costs and the impact of items in the year-ago period. Overall results were solid given the challenging environment, and credit quality remained strong.
Bank of America reported fourth quarter 2006 results. Key highlights include:
- Net income of $5.26 billion, up 34% from fourth quarter 2005. Excluding merger charges, net income was $5.41 billion, up 37%.
- Global Consumer & Small Business Banking earnings grew 8% over fourth quarter 2005 to $10.63 billion in revenue, driven by increases in net interest income and noninterest income.
- Credit quality remained stable, with the provision for credit losses down 7% from fourth quarter 2005.
- The company achieved earnings growth while completing two large acquisitions, focusing on expense management and maintaining a strong capital position.
Computer Sciences Corporation (CSC) reported financial results for the third quarter of fiscal year 2003. [1] Revenues were $2.8 billion, down 3.5% from the prior year's third quarter. [2] Net income was $105.7 million, up 19.6% over the previous year. [3] CSC's federal government business saw revenue growth which offset declines in commercial sectors such as financial services.
This document is a news release from Ameriprise Financial reporting their fourth quarter and full year 2008 financial results. Some key points:
1) Ameriprise reported a net loss of $369 million for Q4 2008 due to losses from investments and charges related to declining markets, compared to net income of $255 million in Q4 2007.
2) Excluding one-time impacts, core operating earnings were $176 million for Q4 2008, down from $262 million in the prior year period.
3) For the full year, Ameriprise reported a net loss of $38 million compared to net income of $814 million in 2007, while core operating earnings declined modestly.
3
CSC reported revenue growth of 5.1% in the first quarter of fiscal year 2005 compared to the same period last year. Revenue totaled $3.7 billion for the quarter. Net income was $110.4 million and earnings per share were $0.58. CSC saw growth in its European outsourcing and U.S. federal government businesses. The company's pipeline of federal opportunities over the next 20 months stands at around $33 billion. CSC announced $4.9 billion in new awards during the quarter from both commercial and government clients.
- JPMorgan Chase & Co. released its financial supplement for the second quarter of 2010 including consolidated results and business detail.
- Total net revenue was $25.1 billion for Q2 2010, down 9% from Q1 2010 but up 2% year-over-year. Net income was $4.8 billion for Q2 2010, up 44% from Q1 2010 and 76% year-over-year.
- By line of business, the Investment Bank and Commercial Banking saw the largest increases in net income quarter-over-quarter, while Retail Financial Services had a loss in Q1 2010 but profit in Q2 2010.
- Sprint Nextel reported financial results for Q4 and full-year 2007, with consolidated revenues of $9.8 billion for Q4 and $40.1 billion for the year.
- A non-cash goodwill impairment charge of $29.7 billion was recorded in Q4, resulting in a net loss of $29.5 billion for the quarter.
- Wireless profitability declined in Q4 due to lower service revenues and higher expenses, though data revenues grew. Wireline profitability increased.
- The company is taking actions to increase financial flexibility, including borrowing funds and discontinuing dividend payments for the foreseeable future.
Sprint Nextel reported second quarter 2008 results including consolidated net operating revenues of $9.1 billion and a diluted loss per share of 12 cents. Adjusted OIBDA was $2.1 billion, an improvement of $87 million from the previous quarter. Post-paid churn improved over 45 basis points from the first quarter to below 2.0%. The company expects higher post-paid subscriber losses and modest pressure on post-paid ARPU in the third quarter. Capital expenditures are expected to remain at levels similar to the first half of the year.
Sprint Nextel reported its second quarter 2007 results. Key highlights include:
- Total subscribers increased nearly 400,000 to 54 million, with post-paid net additions of 16,000.
- Higher post-paid ARPU and cost reductions drove a strong sequential improvement in profitability. Adjusted OIBDA increased 12% sequentially.
- Continued strength in wireless data and IP services revenues, which grew 40% and 37% year-over-year respectively.
Sprint Nextel reported third quarter 2007 results with consolidated revenues of $10 billion, down 4% year-over-year. Net income was $64 million, down from $279 million in the third quarter of 2006. Wireless revenues declined 1% sequentially and 4% year-over-year to $8.7 billion, with a net loss of 60,000 subscribers. Wireline revenues declined 1% to $1.6 billion but profitability improved with adjusted operating income up 84% to $158 million. Sprint Nextel expects full-year capital investments to be in the mid $6 billion range, down from prior guidance of $7.2 billion.
- Qwest reported steady financial results for Q1 2008, with operating revenue of $3.4 billion, income before taxes of $256 million, and net income of $157 million.
- While maintaining financial performance, Qwest made strategic progress, including a partnership with Verizon Wireless and launching new broadband internet offers.
- Revenue was impacted by industry consolidation and pricing pressure, but data, internet, and video revenue grew 9%. Expenses declined through cost reductions.
- Pro forma revenues for Sprint Nextel increased 8% in the third quarter of 2006, while adjusted EPS before amortization rose 7% compared to the previous year.
- The company reported progress on improving margins through merger integration and operational changes to strengthen its competitive position.
- IP and wireless data services grew substantially and positioned the company as an industry leader.
- The company began a stock buyback program of up to $6 billion to be executed over 18 months.
- Black & Decker reported first quarter 2008 net earnings of $67.4 million, down from $108.1 million in first quarter 2007, due to lower sales and higher costs. Excluding restructuring charges, earnings were $79.6 million.
- Sales decreased 5% to $1.5 billion due to a sharp decline in demand in North America, partly offset by strong growth in developing markets.
- The company expects a mid-to-high single digit decline in organic sales for the second quarter and full year and lowered its full-year earnings guidance.
Aon reported financial results for the 4th quarter and full year of 2008. 4th quarter revenue was $1.9 billion, with organic growth in commissions and fees of 2%. EPS from continuing operations was $0.43. For the quarter, adjusted pretax margin increased 150 basis points to 19.9% in brokerage and 180 basis points to 19% in consulting. Full year 2008 revenue increased 4% to $7.6 billion with organic growth of 2%, and net income increased 71% to $1.5 billion compared to the prior year.
This document provides quarterly financial data for Citigroup, including income statements, balance sheets, ratios, and other metrics. Some key details:
- For Q3 2003, income from continuing operations was $4.691 billion, up 27% from Q3 2002. Net income was $4.691 billion, up 20% from a year ago.
- Capital ratios like Tier 1 and Total Capital were all above requirements at the end of Q3 2003, with Tier 1 at 9.5% and Total Capital at 12.6%.
- Total assets increased to over $1.208 trillion in Q3 2003, up 17% from a year ago. Stockholders' equity rose
Duke Energy reported third quarter 2005 earnings per share of $0.04 compared to $0.41 in the third quarter of 2004. Ongoing earnings per share, which excludes special items, were $0.59 compared to $0.37 in the prior year. Results were boosted by warmer weather and strong performance in gas and electric businesses, but hurt by charges from exiting the DENA business. Duke Energy remains confident in exceeding its $1.65 per share employee incentive target for the year.
Sprint reported strong financial results for the 4th quarter and full year 2004 with record subscriber gains in wireless and DSL. Key highlights include:
- Wireless added 1.58 million net subscribers in 4Q driven by strong direct, affiliate and wholesale performance.
- Local saw outstanding DSL customer additions, adding 60,000 in 4Q.
- Profits grew substantially both in the quarter and full year, and free cash flow and debt reduction exceeded targets.
Revenues increased year-over-year for both the quarter and full year. Sprint exceeded its debt reduction goal and ended the year with $12.6 billion in net debt.
Citigroup reported quarterly financial results, with net income of $3.92 billion for 3Q 2002, a 23% increase over 3Q 2001. Core income, which excludes certain items, was $3.79 billion for 3Q 2002, up 17% from the prior year. Diluted earnings per share on net income were $0.76 for the quarter, rising 25% year-over-year, while diluted EPS on core income increased 19% to $0.74. Citigroup operates as a global financial services company with over 200 million customer accounts in more than 100 countries.
Computer Sciences Corporation (CSC) reported its second quarter fiscal 2006 results including: revenue of $3.57 billion, up 5.3% from the previous year; net income of $99.5 million including a $33.1 million non-cash impairment charge; and new contract awards of $2.5 billion. Revenue growth was driven by increased commercial and U.S. federal government business. Significant new contracts were won with Banca Intesa, Centers for Medicare and Medicaid Services, and General Dynamics. CSC's pipeline for U.S. federal opportunities over the next 17 months is approximately $30 billion.
Citigroup reported record net income of $15.28 billion for 2002, an 8% increase over 2001. Net income per share also rose 8% to $2.94. Core income for the year was a record $13.65 billion, or $2.63 per share. However, fourth quarter net income declined 37% to $2.43 billion due to a $1.55 billion legal settlement charge. Core income fell 32% to $2.44 billion. Revenue grew 7% for the full year to $75.76 billion but was flat in the fourth quarter at $18.93 billion.
- Bank of America reported third quarter 2008 results, with earnings impacted by the challenging economic environment and market disruptions.
- Net income was $1.2 billion, down from the prior year due to higher credit costs from housing price declines and rising unemployment.
- Results also reflected charges related to financial institution failures, cash fund support, and losses on trading positions.
- Countrywide results were included for the first time, adding $259 million to earnings. Integration is proceeding as planned.
allstate Quarterly Investor Information Earnings Press Release 2004 1stfinance7
Allstate reported strong financial results for the first quarter of 2004, with a 43% increase in net income and 52% increase in operating income per share compared to the first quarter of 2003. Operating income reached $1 billion for the first quarter, driven by higher premiums earned in Property-Liability and higher realized capital gains. Property-Liability underwriting income increased 109% due to higher premiums, favorable loss trends, and lower catastrophes. Allstate Financial also saw increases in premiums and deposits as well as operating income. As a result of the strong performance, Allstate increased its full-year 2004 operating income per share guidance.
U.S. Bancorp reported net income of $1,130 million for the first quarter of 2007, down slightly from $1,153 million in the first quarter of 2006. Diluted earnings per share were $0.63, equal to the prior year. The net interest margin declined to 3.51% from 3.80% a year ago due to competitive pressures and changes in the yield curve. Noninterest income grew 5.1% driven by fee businesses, but this growth was offset by increased credit costs and the impact of items in the year-ago period. Overall results were solid given the challenging environment, and credit quality remained strong.
Bank of America reported fourth quarter 2006 results. Key highlights include:
- Net income of $5.26 billion, up 34% from fourth quarter 2005. Excluding merger charges, net income was $5.41 billion, up 37%.
- Global Consumer & Small Business Banking earnings grew 8% over fourth quarter 2005 to $10.63 billion in revenue, driven by increases in net interest income and noninterest income.
- Credit quality remained stable, with the provision for credit losses down 7% from fourth quarter 2005.
- The company achieved earnings growth while completing two large acquisitions, focusing on expense management and maintaining a strong capital position.
Computer Sciences Corporation (CSC) reported financial results for the third quarter of fiscal year 2003. [1] Revenues were $2.8 billion, down 3.5% from the prior year's third quarter. [2] Net income was $105.7 million, up 19.6% over the previous year. [3] CSC's federal government business saw revenue growth which offset declines in commercial sectors such as financial services.
This document is a news release from Ameriprise Financial reporting their fourth quarter and full year 2008 financial results. Some key points:
1) Ameriprise reported a net loss of $369 million for Q4 2008 due to losses from investments and charges related to declining markets, compared to net income of $255 million in Q4 2007.
2) Excluding one-time impacts, core operating earnings were $176 million for Q4 2008, down from $262 million in the prior year period.
3) For the full year, Ameriprise reported a net loss of $38 million compared to net income of $814 million in 2007, while core operating earnings declined modestly.
3
CSC reported revenue growth of 5.1% in the first quarter of fiscal year 2005 compared to the same period last year. Revenue totaled $3.7 billion for the quarter. Net income was $110.4 million and earnings per share were $0.58. CSC saw growth in its European outsourcing and U.S. federal government businesses. The company's pipeline of federal opportunities over the next 20 months stands at around $33 billion. CSC announced $4.9 billion in new awards during the quarter from both commercial and government clients.
- JPMorgan Chase & Co. released its financial supplement for the second quarter of 2010 including consolidated results and business detail.
- Total net revenue was $25.1 billion for Q2 2010, down 9% from Q1 2010 but up 2% year-over-year. Net income was $4.8 billion for Q2 2010, up 44% from Q1 2010 and 76% year-over-year.
- By line of business, the Investment Bank and Commercial Banking saw the largest increases in net income quarter-over-quarter, while Retail Financial Services had a loss in Q1 2010 but profit in Q2 2010.
- Sprint Nextel reported financial results for Q4 and full-year 2007, with consolidated revenues of $9.8 billion for Q4 and $40.1 billion for the year.
- A non-cash goodwill impairment charge of $29.7 billion was recorded in Q4, resulting in a net loss of $29.5 billion for the quarter.
- Wireless profitability declined in Q4 due to lower service revenues and higher expenses, though data revenues grew. Wireline profitability increased.
- The company is taking actions to increase financial flexibility, including borrowing funds and discontinuing dividend payments for the foreseeable future.
Sprint Nextel reported second quarter 2008 results including consolidated net operating revenues of $9.1 billion and a diluted loss per share of 12 cents. Adjusted OIBDA was $2.1 billion, an improvement of $87 million from the previous quarter. Post-paid churn improved over 45 basis points from the first quarter to below 2.0%. The company expects higher post-paid subscriber losses and modest pressure on post-paid ARPU in the third quarter. Capital expenditures are expected to remain at levels similar to the first half of the year.
Sprint Nextel reported its second quarter 2007 results. Key highlights include:
- Total subscribers increased nearly 400,000 to 54 million, with post-paid net additions of 16,000.
- Higher post-paid ARPU and cost reductions drove a strong sequential improvement in profitability. Adjusted OIBDA increased 12% sequentially.
- Continued strength in wireless data and IP services revenues, which grew 40% and 37% year-over-year respectively.
Sprint Nextel reported third quarter 2007 results with consolidated revenues of $10 billion, down 4% year-over-year. Net income was $64 million, down from $279 million in the third quarter of 2006. Wireless revenues declined 1% sequentially and 4% year-over-year to $8.7 billion, with a net loss of 60,000 subscribers. Wireline revenues declined 1% to $1.6 billion but profitability improved with adjusted operating income up 84% to $158 million. Sprint Nextel expects full-year capital investments to be in the mid $6 billion range, down from prior guidance of $7.2 billion.
- Qwest reported steady financial results for Q1 2008, with operating revenue of $3.4 billion, income before taxes of $256 million, and net income of $157 million.
- While maintaining financial performance, Qwest made strategic progress, including a partnership with Verizon Wireless and launching new broadband internet offers.
- Revenue was impacted by industry consolidation and pricing pressure, but data, internet, and video revenue grew 9%. Expenses declined through cost reductions.
- Pro forma revenues for Sprint Nextel increased 8% in the third quarter of 2006, while adjusted EPS before amortization rose 7% compared to the previous year.
- The company reported progress on improving margins through merger integration and operational changes to strengthen its competitive position.
- IP and wireless data services grew substantially and positioned the company as an industry leader.
- The company began a stock buyback program of up to $6 billion to be executed over 18 months.
- Black & Decker reported first quarter 2008 net earnings of $67.4 million, down from $108.1 million in first quarter 2007, due to lower sales and higher costs. Excluding restructuring charges, earnings were $79.6 million.
- Sales decreased 5% to $1.5 billion due to a sharp decline in demand in North America, partially offset by strong growth in developing markets.
- For the full year, Black & Decker expects a mid-to-high single digit decline in organic sales and lowered its EPS guidance to a range of $5.25 to $5.65, excluding restructuring charges.
Qwest reported its second quarter 2008 results, with operating revenue of $3.4 billion, a 2% decline from the previous year. Net income was $188 million, down 24% from the second quarter of 2007. Business segment revenue grew 5% year-over-year driven by growth in data, internet, and strategic products. Mass Markets revenue declined 3% year-over-year due to pressure on voice services. Wholesale revenue declined 8% due to competitive pressures. The company expects full year 2008 revenue to decline up to 2.5% and adjusted EBITDA to be 1-2% below 2007 levels.
Qwest announced its third quarter 2007 results, reporting earnings of $2.1 billion including a $2.1 billion tax benefit and $353 million in litigation charges. Revenue trends were positive with growth in data, internet, and video services. Adjusted free cash flow for the year is on track to improve by up to $400 million. Customer satisfaction increased with bundles penetration reaching 61% and broadband subscribers growing by 111,000.
Spectra Energy reported third quarter 2007 results with ongoing net income of $240 million, up 32% from the prior year. Key highlights included strong performance from US Transmission and Distribution businesses, as well as progress on their $3 billion 2007-2009 capital investment program with $625-650 million expected to be completed by the end of 2007. Management remains confident in meeting 2007 financial goals and delivering steady growth and attractive dividends.
JPMorgan Chase Second Quarter 2008 Financial Results Conference Callfinance2
JPMorgan Chase reported net income of $2.0 billion for Q2 2008, down 55% from the prior year. Earnings per share were $0.54. While several businesses saw growth, losses increased significantly in the mortgage and credit card portfolios, and markdowns were taken on leveraged loans and mortgage-related positions. The firm also completed its acquisition of Bear Stearns during the quarter.
Black & Decker reported second quarter 2007 earnings of $1.75 per share, meeting expectations. Sales were flat at $1.7 billion compared to the previous year. Free cash flow for the first half of 2007 was $300 million, an increase of $120 million over the prior year. The company expects challenges in the US housing market and commodity inflation to continue impacting earnings comparisons and forecasts third quarter EPS of $1.40-$1.45.
Black & Decker reported second quarter 2007 earnings of $1.75 per share, meeting expectations. Sales were flat at $1.7 billion compared to the second quarter of 2006, impacted by a 2% gain from foreign currency translation. Free cash flow for the first half of 2007 was $300 million, an increase of $162 million from the same period in 2006. The company expects third quarter earnings in the range of $1.40 to $1.45 per share and full year earnings of $6.35 to $6.50 per share.
This document summarizes Kodak's preliminary Q4 2008 financial results and actions being taken in response to the global recession. Key points:
- Q4 sales declined 24% to $2.433B due to declines in digital (-23%) and traditional (-27%) businesses.
- Q4 loss from continuing operations was $133M; full year earnings were $54M (results are preliminary pending impairment assessments).
- Kodak is aligning its cost structure to current economic conditions through executive pay cuts, expense reductions, and job cuts.
5
J.P. Morgan Chase & Co. reported second quarter 2009 net income of $2.7 billion, up 36% from the prior year. Revenue was a record $27.7 billion. The Investment Bank reported record revenue for the first half of 2009, including record fees and fixed income markets revenue. Retail Financial Services earnings were reduced by high credit costs, though revenue increased 56% due to the Washington Mutual acquisition. JPMorgan maintained a strong capital position with Tier 1 capital of $122.2 billion.
5
J.P. Morgan Chase & Co. reported second quarter 2009 net income of $2.7 billion, up 36% from the prior year. Revenue was a record $27.7 billion. The Investment Bank reported record revenue for the first half of 2009, including record fees and fixed income markets revenue. Retail Financial Services saw higher revenue due to the Washington Mutual acquisition, but a higher provision for credit losses led to a net loss. JPMorgan maintained a strong capital position with Tier 1 capital of $122.2 billion after repaying $25 billion in TARP funds.
JPMorgan Chase First Quarter 2008 Financial Results Conference Call finance2
JPMorgan Chase reported net income of $2.4 billion for the first quarter of 2008, down 49% from $4.8 billion in the first quarter of 2007. Earnings per share were $0.68, down from $1.34 the previous year. The Investment Bank saw declines in revenue and increases in credit losses. Retail Financial Services increased revenue but also significantly increased its provision for credit losses due to deterioration in home equity and subprime portfolios. JPMorgan Chase maintained a strong capital position despite challenges in the market and credit environment.
Qwest reported third quarter 2004 results with improved revenue trends driven by wireline and wireless segments. Revenue increased slightly compared to last quarter but decreased year-over-year. Cost reduction initiatives expanded margins while cash from operations exceeded capital expenditures. Key growth areas like DSL subscribers and long-distance lines increased significantly.
- Second quarter revenue increased 76% year-over-year to $10 billion due to growth in wireless segment offset by decline in long distance. Adjusted operating income was $865 million.
- Wireless segment saw 8% revenue growth driven by larger subscriber base but this was offset by lower ARPU and migrations to lower price plans. Adjusted OIBDA for wireless increased 11% to $2.94 billion.
- In response to slower growth, the company announced actions to improve competitiveness including adjusting credit policies, marketing initiatives, product innovation, and operational restructuring to generate annual savings of $0.07-0.08 EPS. The company also authorized a $6 billion share buyback over 18 months.
Spectra Energy reported a 56% increase in first quarter 2008 net income compared to first quarter 2007. The company announced a $600 million share repurchase program and a proposed $0.02 per share quarterly dividend increase. All business segments performed strongly in the quarter with higher earnings driven by factors such as higher commodity prices and a stronger Canadian dollar.
Similar to sprint nextel Quarterly Results 2008 1st (20)
Intel Corporation projected a 21% increase in total spending from 2005 to 2006 under GAAP. This included a forecasted 10% increase from share-based compensation and a 2% increase from spending at IMFT. Excluding these factors, Intel forecasted a 9% increase in total spending from 2005 to 2006, which included research and development expenses and marketing, general, and administrative expenses.
Intel reported a GAAP gross margin of 59.7% or $5,948 million for Q3 2005. Excluding a $140 million legal settlement charge related to an agreement with MicroUnity to resolve a patent case, Intel's gross margin was 61.1% or $6,088 million. The legal settlement charge impacted gross margin by 1.4% for the quarter.
- Intel reported first-quarter revenue of $8.9 billion, operating income of $1.7 billion, and earnings per share of 23 cents. Excluding share-based compensation, operating income was $2.1 billion and EPS was 27 cents.
- Revenue declined 5% year-over-year and 12% sequentially due to moderating PC growth rates leading to slower chip-level inventory reductions and affecting revenue.
- The outlook for the second quarter expects revenue between $8.0-8.6 billion and gross margin of 49%, plus or minus a couple points.
Intel reported third quarter revenue of $8.7 billion, a 12% decrease from the previous year. Operating income was $1.4 billion and earnings per share were 22 cents. Record shipments of mobile and server microprocessors drove results. Looking forward, Intel expects fourth quarter revenue between $9.1-9.7 billion and gross margin around 50%, and provided additional financial forecasts. Key risks include intense competition, transition to new manufacturing processes, and demand variability.
This document from Intel Corporation provides reconciliations of GAAP financial metrics to non-GAAP metrics that exclude the impact of share-based compensation. It shows adjustments made to spending, operating income, net income, earnings per share, common shares, and gross margin percentage for three months and a full year. These adjustments increase the non-GAAP numbers to exclude over $1 billion in share-based compensation expenses.
Intel reported fourth quarter revenue of $9.7 billion, operating income of $1.5 billion, and earnings per share of $0.26. For the full year 2006, Intel achieved revenue of $35.4 billion, operating income of $5.7 billion, net income of $5 billion and earnings per share of $0.86. Key highlights included record microprocessor and flash unit sales, and record mobile and server microprocessor revenue. For the first quarter of 2007, Intel expects revenue between $8.7-9.3 billion and earnings per share of approximately $0.30.
This document summarizes Intel's first-quarter 2007 financial results. Key points include:
- Revenue of $8.9 billion, operating income of $1.7 billion, net income of $1.6 billion, and EPS of 27 cents.
- Guidance for Q2 2007 includes expected revenue between $8.2-8.8 billion and gross margin of 48% plus/minus a couple points.
- Guidance for full year 2007 includes expected gross margin of 51% plus/minus a few points and R&D spending of $5.6 billion.
intel Second Quarter 2007 Earnings Releasefinance6
- Intel reported second-quarter revenue of $8.7 billion, up 8% year-over-year, with operating income of $1.35 billion and net income of $1.3 billion.
- For the third quarter, Intel expects revenue between $9.0-9.6 billion with a gross margin of 52% plus or minus a couple points.
- For 2007, Intel expects gross margin of 51% plus or minus a few points and capital spending of $4.9 billion plus or minus $200 million.
Intel has updated its third-quarter revenue and gross margin expectations. Revenue is now expected to be between $9.4 billion and $9.8 billion, compared to the previous range of $9.0 billion to $9.6 billion. Gross margin is expected to be in the upper half of the previous range of 52 percent plus or minus a couple points. All other expectations remain unchanged and Intel will report third-quarter financial results on October 16. The document outlines various risk factors that could affect Intel's actual results.
- Intel reported record third-quarter revenue of $10.1 billion, up 15% year-over-year. Operating income was $2.2 billion, up 64% year-over-year.
- Revenue growth was driven by record microprocessor, chipset, and flash unit shipments. Net income was $1.9 billion, up 43% year-over-year.
- For Q4 2007, Intel expects revenue between $10.5-11.1 billion and gross margin of 57% plus or minus a couple points.
Intel reported record quarterly revenue of $10.7 billion for Q4 2007, up 10.5% year-over-year. Net income was $2.3 billion, up 51% from Q4 2006. For the full year 2007, operating income grew 45% to $8.2 billion on revenue of $38.3 billion, an 8% increase. Looking ahead, Intel expects Q1 2008 revenue to be between $9.4-10 billion and gross margin of 56% plus or minus a couple points.
- Intel lowered its first-quarter gross margin forecast from 56% to 54% due to lower than expected prices for NAND flash memory chips.
- All other expectations for the first quarter remain unchanged from the previous business outlook published in Intel's fourth quarter earnings release.
- Intel will observe a "Quiet Period" from March 7 until its first-quarter earnings release where it will not update its business outlook.
- Intel reported record first quarter revenue of $9.7 billion, up 9% year-over-year, driven by strong demand for their microprocessors and chipsets.
- Net income was $1.4 billion, though this was down 12% year-over-year due to restructuring charges and a higher tax rate.
- For the second quarter, Intel expects revenue between $9.0-9.6 billion and gross margin of 56% plus or minus a couple points.
- Intel reported record first quarter revenue of $9.7 billion, up 9% year-over-year, driven by strong demand for their microprocessors and chipsets.
- Net income was $1.4 billion, though this was down 12% year-over-year due to restructuring charges.
- For the second quarter, Intel expects revenue between $9.0-9.6 billion and gross margin of 56% plus or minus a couple points.
intel Second Quarter 2008 Earnings Releasefinance6
Intel reported record second quarter revenue of $9.5 billion, up 9% year-over-year. Net income was $1.6 billion, a 25% increase from the previous year. Operating income grew 67% to $2.3 billion. Looking ahead, Intel expects third quarter revenue between $10-10.6 billion and gross margin around 58%.
- Intel reported record third quarter revenue of $10.2 billion, up 8% from the previous quarter. Operating income was $3.1 billion, up 37% from the previous quarter.
- Revenue growth was driven by higher microprocessor unit sales and prices. Gross margin increased to 59% due to lower unit costs and higher revenue.
- For Q4 2008, Intel expects revenue between $10.1-10.9 billion and gross margin around 59%. It also expects restructuring charges of $250 million and a net loss from investments of $50 million.
Intel announced that its fourth-quarter business will be below previous expectations, with revenue expected to be $9 billion, lower than the $10.1-10.9 billion expectation. Gross margin is also expected to be lower at 55% due to lower revenue and other charges from weaker demand. Spending is projected to be $2.8 billion compared to $2.9 billion expected previously. Risk factors that could further impact results include continued uncertainty in global economic conditions, competition, manufacturing costs and yields, and impairment charges.
This document summarizes Intel's fourth-quarter and annual financial results for 2008. Some key points:
- Fourth-quarter revenue was $8.2 billion, down 19% sequentially and 23% year-over-year.
- Annual revenue was $37.6 billion, down 2% year-over-year but up slightly adjusted for divestitures.
- Gross margin declined to 53% in Q4, down from 59% in Q3, due to higher factory underutilization and inventory write-offs.
- For 2009, Intel expects revenue to be around $7 billion in Q1 with gross margins in the low 40s, and spending of $10.4-10.6 billion
In 2007, Intel continued focusing on extending its product leadership and leveraging its manufacturing capabilities. Key highlights include:
- Revenue increased 8% to $38.3 billion and net income grew 38% to $7 billion.
- Intel launched 45nm processors designed for energy efficiency and transitioned its portfolio to the Intel Core microarchitecture.
- Demand remained strong across business segments for Intel's energy-efficient processors.
- The company renewed focus on its core strengths of Intel architecture and manufacturing leadership.
The document introduces Intel's new Core i7 processor. It claims the Core i7 is the fastest processor on the planet, up to 40% faster than the previous Core 2 Extreme processor. It is now available worldwide with broad support from OEMs and the industry. The Core i7 crosses a performance threshold and opens the door to new types of applications and usages.
How to Identify the Best Crypto to Buy Now in 2024.pdfKezex (KZX)
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A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
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What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
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1. Contacts:
Media Relations
James Fisher
703-433-8677
james.w.fisher@sprint.com
Investor Relations
Kurt Fawkes
800-259-3755
Investor.relations@sprint.com
SPRINT NEXTEL REPORTS FIRST QUARTER 2008
RESULTS
Revenues and earnings decline due to lower Wireless contribution
Strong IP revenue aids growth in Wireline
Progress on cost actions, focus on the customer experience
Broadband wireless strategy leverages assets to enhance value
Initial launch of Nextel Direct Connect on CDMA, migration to single billing
platform achieve key integration goals
Segment Results
Wireless
• First quarter revenues of $8.0 billion declined 9% compared to the year-ago period
and declined 6% from the fourth quarter of 2007. The declines are mainly due to
lower average service revenue per customer and fewer post-paid subscribers.
• Adjusted Operating Income* was a loss of $253 million compared to profits of $253
million in the first quarter of 2007 and $168 million in the fourth quarter. The decline
in Adjusted Operating Income* is due to lower service revenues that were partially
offset by reduced operating expenses.
• Adjusted OIBDA* was $1.8 billion in the current period compared to $2.4 billion in
the 2007 first quarter and $2.2 billion in the 2007 fourth quarter. Adjusted OIBDA*
in the first quarter exceeded capital expenditures for the period by a little more than
$900 million.
Wireline
• Revenues were $1.6 billion, a 2% increase from the first quarter of 2007 and a 1%
increase from the fourth quarter. The growth is due to strong demand for IP services
that more than offset declines in voice and data revenues.
• Adjusted Operating Income* was $156 million versus $78 million in the same period
a year ago, and $178 million in the fourth quarter of 2007.
• The first quarter Adjusted OIBDA* was $287 million compared to $205 million a year
ago, and $320 million in the fourth quarter of 2007. In the first quarter, Adjusted
OIBDA* exceeded capital expenditures by nearly $100 million.
1
2. OVERLAND PARK, Kan. – May 12, 2008 -- Sprint Nextel Corp. (NYSE: S) today
reported first quarter 2008 financial results. Consolidated net operating revenues for the
quarter were $9.3 billion, an 8% decline compared to $10.1 billion reported in the first
quarter of 2007 and a 5% decline compared to $9.8 billion in the fourth quarter. Reported
diluted loss per share was 18 cents compared to a 7 cent loss in the year-ago period and a
loss of $10.28 per share in the fourth quarter of 2007. The fourth quarter results include a
loss of $10.32 per share from a pre-tax non-cash goodwill impairment charge of $29.5
billion.
Adjusted EPS before Amortization*, which removes the effects of special items and merger-
related amortization expense, was 4 cents per share in the most recent quarter, compared
to 18 cents in the first quarter of 2007 and 21 cents per share in the fourth quarter. The
lower earnings in the current quarter are due to a reduced contribution from Wireless.
For the quarter, total wireless subscribers declined by 1.09 million due to losses of 1.07
million post-paid subscribers and 543,000 traditional prepaid users, partially offset by gains
of 343,000 Boost Unlimited and 183,000 wholesale and affiliate subscribers. Post-paid
subscriber additions in the quarter were impacted by lower gross additions and higher
churn. Post-paid churn in the quarter was 2.45% compared to 2.3% in both the first and
fourth quarters of 2007. Wireless post-paid ARPU in the quarter was a little under $56, a
6% decline compared to the year-ago period and a 4% sequential decline. The ARPU trends
reflect ongoing pressures on voice revenues partially offset by data growth.
“As expected, our Wireless business delivered weak financial results. While the business will
continue to face challenges in the short term, we are making progress in methodically
attacking the sources of our performance issues. In the first quarter, we implemented a
new, more focused brand campaign, we executed on our plans to take costs out of the
business, and we made progress on the larger organizational and strategic decisions that we
believe will lead to improved profitability in the long term,” said Dan Hesse, Sprint Nextel
CEO. “We have strengthened our hand with last week’s 4G announcement, which captures
and leverages the value of Sprint’s sizable spectrum holdings, provides Sprint with
additional financial flexibility, gives us a time-to-market advantage over our competitors in
the important growth area of wireless broadband, and allows Sprint management to focus
our resources and attention on improving the performance of our core business.
“We continue to place the highest priority on reducing churn by improving the customer
experience. Our “Simply EverythingSM” Plan, which provides our customers with
unprecedented simplicity along with the immediacy of our “Now Network,” has had a good
response from existing and new customers,” Hesse said.
2
3. CONSOLIDATED RESULTS
TABLE No. 1 Selected Unaudited Financial Data (dollars in millions)
Quarter Ended %
March 31, ∆
Financial Data 2008 2007
Net operating revenues $ 9,334 $ 10,092 (8)%
Adjusted operating (loss) income* (181) 315 NM
Adjusted OIBDA* 2,009 2,583 (22)%
Net loss (505) (211) NM
Adjusted earnings per share before
amortization* $ 0.04 $ 0.18 (78)%
Loss per common share (basic and
diluted) $ (0.18) $ (0.07) NM
Capex $ 1,360 $ 1,607 (15)%
Free Cash Flow* $ 170 $ 497 (66)%
The following is a discussion of consolidated results:
• Lower revenues in the quarter are due to a lower contribution from Wireless.
• Special items in the first quarter include pre-tax charges of $86 million related to
merger and integration activities and $231 million for severance, exit costs and asset
impairments. These items are detailed in the Notes to Financial Data. The company
has now substantially completed its previously-announced plan to eliminate
approximately 4,000 positions.
• Adjusted OIBDA* exceeded capital expenditures by $649 million in the first quarter.
• In the quarter, the company incurred expenditures of $274 million related to
intangible asset investments, including $151 million associated with rebanding
efforts and $123 million for the purchases of FCC licenses.
• In the first quarter, consolidated results include operating expenses of $83 million and
capital investments of $236 million associated with fourth generation WiMAX efforts.
These expenditures were incurred to deploy network cell sites and prepare for the initial
launch of markets.
• First quarter Adjusted OIBDA* includes $75 million in non-cash compensation expense
as compared to $73 million in the year-ago period.
• Interest expense, net of interest income, was $313 million compared to $336 million in
the first quarter of 2007.
• The effective tax benefit rate in the quarter was 38%, flat as compared to the year-ago
period.
• For the quarter, Free Cash Flow* was $170 million compared to $497 million in the first
quarter of 2007. Free Cash Flow* was impacted by lower operating cash flow generation
in Wireless and increased spending on intangibles, offset by lower capital spending and
the termination of dividend payments on common stock.
• For the quarter, net cash provided by operating activities was $2.1 billion compared to
$2.5 billion in the year-ago period.
3
4. • Net debt* at the end of the period was $19.5 billion, consisting of total debt of $24.3
billion offset by cash and marketable securities of $4.8 billion. In the quarter, the
company borrowed $2.5 billion principal amount under its revolving credit facility.
• As of March 31, 2008, the company had approximately $800 million of borrowing
capacity available under its revolving credit facility. On April 1, we repaid our
commercial paper obligation of $50 million and on May 6, we received notice that the
Federal Communications Commission will allow a $337 million reduction of its letter
of credit obligations related to re-banding. Following these actions, borrowing
capacity under the revolver is expected to increase to nearly $1.2 billion.
WIRELESS RESULTS
TABLE No. 2 Selected Unaudited Financial Data (dollars in millions)
Quarter Ended
March 31, %
Financial Data 2008 2007 ∆
Net operating revenues $ 7,963 $ 8,719 (9)%
Adjusted operating (loss) income* (253) 253 NM
Adjusted OIBDA* 1,801 2,395 (25)%
Adjusted OIBDA margin* 24.4% 29.7%
Capex1 $ 875 $ 1,403 (38)%
1
Capex includes re-banding capital,
but excludes rebanding costs
related to FCC licenses.
The following is a discussion of Wireless results:
Subscribers
• Wireless had 52.8 million total subscribers at the end of the period, compared to 53.6
million at the end of the first quarter of 2007. The decline reflects a smaller post-paid
and affiliate base, partially offset by increases in prepaid and wholesale.
• At the end of the first quarter, the company was serving 39.7 million post-paid
subscribers, 4.4 million prepaid and 8.7 million wholesale and affiliate users.
• Subscribers by network platform include 35.5 million on CDMA, 15.7 million on iDEN and
1.6 million Power Source users who access both platforms.
In the first quarter, Sprint Nextel introduced Simply EverythingSM service plans for CDMA
•
and iDEN post-paid subscribers. These plans include an offering of unlimited voice,
data, direct connect and message services for a fixed monthly fee of $99.99. Sprint
Nextel also continues to add to its device and service capabilities with the initial launch
of Nextel Direct Connect phones and services on the CDMA network in April and the
expected summer launch of the InstinctTM by Samsung.
Churn
• Post-paid churn of 2.45% for the quarter reflects higher voluntary deactivations in the
CDMA subscriber base compared to the fourth quarter and a smaller subscriber base.
Voluntary churn on the CDMA platform improved over the course of the first quarter. In
the first quarter, total involuntary churn improved marginally from the fourth quarter
4
5. but remained at an elevated level, representing about 40% of total post-paid churn. For
the quarter, the overall CDMA churn rate was modestly below the overall post-paid
churn rate and iDEN was modestly above.
• Boost churn in the first quarter was 9.9% compared to 7.5% in the fourth quarter of
2007. The increase in churn in the quarter occurred within traditional prepaid users due
to the elimination of certain retention efforts and more aggressive prepaid marketing by
national carriers.
Revenues/ARPU
• Wireless service revenues declined 9% year-over-year and 6% sequentially due to lower
average revenue per customer and fewer subscribers. Wholesale and affiliate service
revenues were flat with the year-ago period and declined 6% sequentially due to lower
pricing, partially offset by a larger base.
• Wireless equipment revenues declined 9% compared to the year-ago period and were
down 13% sequentially. The decline compared to the year-ago period is due to lower
handset sales volumes, while the sequential decline is mainly due to more aggressive
market pricing.
• Average monthly post-paid ARPU in the CDMA base was modestly above the overall rate
of a little under $56, while iDEN was modestly below. Compared to the first quarter of
2007, CDMA ARPU declined about $2 and IDEN ARPU was lower by about $6.
• Post-paid ARPU continues to be impacted by customer migrations to lower-priced plans,
a higher-than-average ARPU in deactivating subscribers, and increased customer
concessions to improve retention. First quarter ARPU was also impacted by lower fee-
based revenues and seasonally lower usage.
• Data revenues contributed more than $11.50 to overall post-paid ARPU in the first
quarter and more than $14, or approximately one-quarter, of CDMA ARPU. Overall data
growth of 19% year-over-year was driven by strong sales of aircards and demand for
messaging services.
• Prepaid ARPU in the quarter was approximately $29 compared to $32 in the year-ago
period and $28 in the fourth quarter of 2007. The sequential increase reflects growth in
the Boost Unlimited subscriber base that is offsetting lower usage among traditional
prepaid users.
Operating Expenses
• Total operating expenses in the Wireless segment in the first quarter were $8.2 billion
after normalizing for special items. This compares to $8.5 billion in the year-ago period
and $8.3 billion in the fourth quarter of 2007.
• Cost of services was flat with the year-ago period and declined 4% sequentially. The
year-over-year comparison reflects higher network expense, offset by lower service and
repair costs. The sequential improvement this quarter is mainly due to a charge to
adjust cell site lease expenses in the fourth quarter.
• Cost of products was 8% below the year-ago period but increased 6% sequentially. The
trends are due to lower gross additions, offset by an increase in retention activities and
a higher share of PDA devices in the sales mix. In the first quarter, total PDA volume
was up 25% from the fourth quarter and increased 100% year-over-year.
• SG+A expenses declined 2% from the first quarter of 2007 and 3% from the fourth
quarter. The year-over-year improvement is due to lower selling, marketing and general
administrative expenses, offset by increased spending on customer care and higher bad
debt expense. Compared to the fourth quarter, selling, marketing, general
administrative costs and bad debt were lower, while IT costs were seasonally higher. In
5
6. the first quarter, the company made substantial progress in the migration of its
customers to a single billing platform. This project is expected to be completed for all
corporate and consumer post-paid customers in the second quarter. In the first quarter,
the company also made good progress in rationalizing sales distribution as it closed 65
less-profitable direct stores and reduced indirect dealer outlets.
Capital Spending
Wireless capital investments were $875 million in the first quarter, or approximately 12%
of service revenues. This compares to $1.4 billion in both the first and fourth quarters of
2007. Capital investments in the quarter were primarily targeted at increasing capacity
and enhancing capabilities. In the quarter, dropped and blocked calls declined at an
annual double-digit rate on both the CDMA and iDEN networks.
WIRELINE RESULTS
TABLE No. 3 Selected Unaudited Financial Data (dollars in millions)
Quarter Ended
March 31, %
2008 2007 ∆
Net operating revenues $ 1,630 $ 1,598 2%
Adjusted operating income* 156 78 100%
Adjusted OIBDA* 287 205 40%
Adjusted OIBDA margin* 17.6% 12.8%
Capex $ 191 $ 144 33%
The following is a discussion of Wireline results.
• Growth in revenues was driven by IP services which increased 44% annually and 9%
sequentially. The growth in revenue also reflects improved credits and adjustments as
compared to the year-ago period.
• IP revenue growth is due to strong demand for MPLS services within the enterprise
segment and expansion of the base of cable partner subscribers that utilize our VoIP
services. At the end of the first quarter, Sprint Nextel supported approximately 3.8
million users of cable partner telephony services. Our services are now available to more
than 30 million MSO households.
• Lower voice and data revenues partially offset IP growth in the quarter. Voice revenues
declined 8% year-over-year and 1% sequentially. Retail business voice services
increased 4% compared to the fourth quarter, but this was offset by lower consumer
and wholesale revenues. Data revenues, which are being impacted in part by customer
transitions to IP services, declined 14% compared to the first quarter of 2007 and 9%
quarter-over-quarter.
• After normalizing for special items, operating expenses of $1.5 billion were 3% below
the year-ago period and 2% above the fourth quarter of 2007. The improvement
compared to the year-ago period is due to lower network, selling and marketing costs.
The sequential increase is mainly due to a $40 million credit for a patent licensing
agreement that was recorded in the fourth quarter and increased variable compensation
cost in the current period.
6
7. Capital spending in the quarter of $191 million was 12% of revenues. Capital is mainly
being deployed to support IP growth.
Forward-Looking Guidance
Sprint Nextel currently expects to experience continued downward pressure on Adjusted
OIBDA*, post-paid gross additions and post-paid ARPU over the next few quarters. We
expect these financial metrics will begin to stabilize towards the end of this fiscal year. In
the second quarter of 2008, we expect to report an improved post-paid customer churn
rate and net post-paid subscriber losses to improve marginally from the first quarter. For
the balance of 2008, we expect we will continue to have positive free cash flow. In
addition, we expect we have sufficient cash on hand to operate our business and repay all
of our scheduled debt maturities through the end of 2009. Following an extensive rollout
of CDMA EV-DO technology and increased spending to enhance iDEN network performance
over the past several quarters, Wireless capital investments for the full year 2008 are
expected to be significantly below 2007 levels. Wireline and corporate capital investments
for the full year 2008 are also currently expected to be below 2007 levels.
In light of the trend of our declining earnings before interest, taxes, depreciation and
amortization, we are continuing to implement cost reduction initiatives, are exploring de-
levering, disposition of non-core assets and other measures to assist the company in
maintaining compliance with financial covenants contained in our credit facilities, and we
may consider entering into discussions with our lenders to obtain appropriate waivers or
amendments in respect of the credit facilities. We currently expect to remain in covenant
compliance over the next few financial quarters while exploring and pursuing these
measures.
Sprint Nextel continues to assess its business model, associated sales, distribution and
marketing plans, and its financial outlook. The company expects to complete this
assessment and provide an update in connection with its second quarter earnings
announcement in August.
*FINANCIAL MEASURES
Sprint Nextel provides financial measures generated using generally accepted accounting principles
(GAAP) and using adjustments to 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 non-GAAP measures are not measurements
under accounting principles generally accepted in the United States. These measurements should be
considered in addition to, but not as a substitute for, the information contained in our financial
statements prepared in accordance with GAAP. We have defined below each of the non-GAAP
measures we use, but these measures may not be synonymous to similar measurement terms used
by other companies.
Sprint Nextel provides reconciliations of these non-GAAP measures in its financial reporting. Because
Sprint Nextel 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 Nextel does not provide reconciliations to GAAP of its forward-looking financial measures.
The measures used in this release include the following:
7
8. Adjusted Earnings (Loss) per Share (EPS) is defined as net income (loss) before special items,
net of tax and the diluted EPS calculated thereon. Adjusted EPS before Amortization is defined as
net income (loss) before special items and amortization, net of tax, and the diluted EPS calculated
thereon. These non-GAAP measures should be used in addition to, but not as a substitute for, the
analysis provided in the statement of operations. We believe that these measures are useful because
they allow investors to evaluate our performance for different periods on a more comparable basis by
excluding items that relate to acquired amortizable intangible assets and not to the ongoing
operations of our businesses.
Adjusted Operating Income (Loss) is defined as operating income (loss) before special items. This
non-GAAP measure should be used in addition to, but not as a substitute for, the analysis provided in
the statement of operations. We believe this measure is useful because it allows investors to evaluate
our operating results for different periods on a more comparable basis by excluding special items.
Adjusted OIBDA is defined as operating income before depreciation, amortization, severance, exit
costs and asset impairments, and special items. Adjusted OIBDA Margin represents Adjusted
OIBDA divided by non-equipment net operating revenues adjusted for certain non-recurring revenue
adjustments for Wireless and Adjusted OIBDA divided by net operating revenues for Wireline. These
non-GAAP measures should be used in addition to, but not as a substitute for, the analysis provided in
the statement of operations. We believe that Adjusted OIBDA and Adjusted OIBDA 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 generally accepted
accounting principles, these expenses primarily represent non-cash current period allocation of costs
associated with long-lived assets acquired or constructed in prior periods. Adjusted OIBDA and
Adjusted OIBDA 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 defined as the change in cash and cash equivalents less the change in debt,
investment in certain securities, proceeds from common stock and other financing activities, net. This
non-GAAP measure should be used in addition to, but not as a substitute for, the analysis provided in
the statement of cash flows. 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 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, current
marketable securities and restricted cash. This non-GAAP measure should be used in addition to, but
not as a substitute for, the analysis provided in the balance sheet and statement of cash flows. 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 news release includes “forward-looking statements” within the meaning of the securities laws.
The statements in this news release regarding the business outlook, expected performance, forward-
looking guidance, as well as other statements that are not historical facts, are forward-looking
statements. The words quot;estimate,quot; quot;project,quot; ”forecast,” quot;intend,quot; quot;expect,quot; quot;believe,quot; quot;target,quot;
“providing guidance” and similar expressions are intended to identify 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
8
9. other things, customer and network usage, customer growth and retention, pricing, operating costs,
the timing of various events and the economic and regulatory environment.
Future performance cannot be assured. Actual results may differ materially from those in the forward-
looking statements. Some factors that could cause actual results to differ include:
• the effects of vigorous competition, including the impact of competition on the price we are
able to charge customers for services and equipment we provide and our ability to attract new
customers and retain existing customers; the overall demand for our service offerings,
including the impact of decisions of new subscribers between our post-paid and prepaid
services offerings and between our two network platforms; and the impact of new, emerging
and competing technologies on our business;
• the impact of overall wireless market penetration on our ability to attract and retain customers
with good credit standing and the intensified competition among wireless carriers for those
customers;
• the impact of difficulties we may continue to encounter in connection with the integration of
the pre-merger Sprint and Nextel businesses, and the integration of the businesses and assets
of Nextel Partners, Inc. and the third party affiliates, or PCS Affiliates that provide wireless
personal communications services, or PCS under the Sprint® brand name, that we have
acquired, including the risk that these difficulties may limit our ability to fully integrate the
operations of these businesses and the risk that we will be unable to continue to retain key
employees;
• the uncertainties related to the implementation of our business strategies, investments in our
networks, our systems, and other businesses, including current investments and additional
investments that may be required in connection with the planned deployment of a next
generation broadband wireless network;
• the costs and business risks associated with providing new services and entering new
geographic markets, including in connection with the planned deployment of a next generation
broadband wireless network;
• uncertainty regarding satisfaction of the conditions to completion of the transaction with
Clearwire, including receipt of the necessary approvals and satisfaction of the other conditions
to closing;
• the impact of recent downgrades and potential further downgrades in the ratings afforded our
debt securities by ratings agencies;
• the impact of difficulties we may encounter in implementing actions designed to maintain
compliance with our financial covenants, including the success of actions involving third
parties;
• the effects of mergers and consolidations and new entrants in the communications industry
and unexpected announcements or developments from others in the communications industry;
• unexpected results of litigation filed against us;
• the impact of third parties not meeting our business requirements, including a significant
adverse change in the ability or willingness to provide handset devices or infrastructure
equipment for our CDMA network, or Motorola, Inc.’s ability or willingness to provide related
handset devices, infrastructure equipment and software applications, or to develop new
technologies or features for our iDEN® network;
• the impact of adverse network performance;
9
10. • the costs and/or potential customer impacts of compliance with regulatory mandates,
particularly requirements related to the reconfiguration of the 800 MHz band used to operate
our iDEN network as contemplated by the Federal Communications Commission’s Report and
Order released in August 2004 as supplemented by subsequent memoranda;
• equipment failure, natural disasters, terrorist acts, or other breaches of network or information
technology security;
• one or more of the markets in which we compete being impacted by changes in political,
economic or other factors such as monetary policy, legal and regulatory changes or other
external factors over which we have no control; and
• other risks referenced from time to time in our filings with the Securities and Exchange
Commission, including our Form 10-K for the year ended December 31, 2007, in Part I, Item
1A, “Risk Factors.”
Sprint Nextel 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 of this release. Sprint Nextel is not obligated to publicly release any
revisions to forward-looking statements to reflect events after the date of this release.
ABOUT SPRINT NEXTEL
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing
the freedom of mobility to consumers, businesses and government users. Sprint Nextel is widely
recognized for developing, engineering and deploying innovative technologies, including two wireless
networks serving nearly 53 million customers at the end of the first quarter 2008; industry-leading
mobile data services; instant national and international walkie-talkie capabilities; and a global Tier 1
Internet backbone. For more information, visit www.sprint.com.
10
11. Sprint Nextel Corporation
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (1)
(Millions, except per Share Data)
TABLE NO. 4
Quarter Ended Quarter Ended
December 31, December 31, March 31, March 31,
2007 2006 2008 2007
Net Operating Revenues $ 9,847 $ 10,438 $ 9,334 $ 10,092
Operating Expenses
Cost of services 3,025 3,045 2,941 3,009
Cost of products 1,212 1,275 1,282 1,381
Selling, general and administrative 3,230 3,066 3,188 3,259
(2)
Severance, exit costs and asset impairments 56 79 231 174
Depreciation 1,508 1,474 1,493 1,355
Amortization 712 930 697 913
Total operating expenses 39,263 9,869 9,832 10,091
Operating (Loss) Income (29,416) 569 (498) 1
Interest expense (334) (359) (339) (367)
Interest income 28 26 26 31
Other, net 234 142 (4) (4)
Loss before Income Taxes (29,488) 378 (815) (339)
Income tax benefit 245 (117) 310 128
Net Loss $ (29,243) $ 261 $ (505) $ (211)
Loss per Share
Loss Per Common Share, Basic and Diluted $ (10.28) $ 0.09 $ (0.18) $ (0.07)
Weighted Average Common Shares 2,844 2,916 2,847 2,899
Effective Tax Rate 0.01 31.0% 38.0% 37.8%
Quarter Ended Quarter Ended
December 31, December 31, March 31, March 31,
2007 2006 2008 2007
Operating (Loss) Income $ (29,416) $ 569 $ (498) $ 1
Special items before taxes
Merger and integration expense (3) 119 117 86 99
(2)
Severance, exit costs and asset impairments 56 79 231 174
Goodwill impairment (4) 29,520 - - -
Contingencies and other (5) (44) 5 - 41
Adjusted Operating (Loss) Income* 235 770 (181) 315
Depreciation and amortization 2,220 2,404 2,190 2,268
Adjusted OIBDA* 2,455 3,174 2,009 2,583
Capital expenditures (6) 2,009 2,612 1,360 1,607
Adjusted OIBDA* less Capex $ 446 $ 562 $ 649 $ 976
Operating (Loss) Income Margin (7) -320.5% 5.9% -5.7% 0.0%
Adjusted OIBDA Margin* 26.8% 33.0% 23.0% 27.4%
See accompanying Notes to Financial Data (Unaudited)
11
12. Sprint Nextel Corporation
RECONCILIATIONS OF EARNINGS PER SHARE (Unaudited)
(Millions, except per Share Data)
TABLE NO. 5
Quarter Ended Quarter Ended
December 31, December 31, March 31, March 31,
2007 2006 2008 2007
Net (Loss) Income $ (29,243) $ 261 $ (505) $ (211)
Special items (net of taxes)
Merger and integration expense (3) 72 71 53 60
Severance, exit costs and asset impairments (2) 35 52 143 109
Goodwill impairment (4) 29,362 - - -
Contingencies and other (5) (27) 6 - 25
Net gains on investment activities and equity in earnings (37) (92) - -
Tax audit settlement - (16) - -
Gain on early retirement of debt - - - (2)
Adjusted Net Income (Loss)* $ 162 $ 282 $ (309) $ (19)
Amortization (net of taxes) 430 560 421 551
Adjusted Net Income before Amortization* $ 592 $ 842 $ 112 $ 532
Diluted (Loss) Earnings Per Common Share $ (10.28) $ 0.09 $ (0.18) $ (0.07)
Special items (net of taxes) 10.34 - 0.07 0.07
Adjusted Earnings (Loss) Per Share* $ 0.06 $ 0.09 $ (0.11) $ -
Amortization (net of taxes) 0.15 0.20 0.15 0.18
Adjusted Earnings Per Share before Amortization* $ 0.21 $ 0.29 $ 0.04 $ 0.18
See accompanying Notes to Financial Data (Unaudited)
12
13. Sprint Nextel Corporation
NON-GAAP WIRELESS STATEMENTS OF OPERATIONS AND STATISTICS (Unaudited) (1)
(Millions, except subscriber counts and metrics)
TABLE No. 6
Quarter Ended Quarter Ended
December 31, December 31, March 31, March 31,
2007 2006 2008 2007
Net Operating Revenues
Service $ 7,553 $ 7,959 $ 7,123 $ 7,815
Equipment 676 794 587 645
Wholesale, affiliate and other 268 248 253 259
Total Net Operating Revenues 8,497 9,001 7,963 8,719
Operating Expenses
Cost of services 2,192 2,120 2,114 2,110
Costs of products 1,190 1,275 1,265 1,381
Selling, general and administrative 2,870 2,697 2,783 2,833
Merger and integration expense (3) 87 86 66 59
(2)
Severance, exit costs and asset impairments 41 73 189 141
(5)
Contingencies and other (15) 5 - 18
Depreciation 1,366 1,327 1,358 1,229
Amortization 711 930 696 913
Total operating expenses 37,962 8,513 8,471 8,684
Operating (Loss) Income $ (29,465) $ 488 $ (508) $ 35
NON GAAP RECONCILIATION Quarter Ended Quarter Ended
December 31, December 31, March 31, March 31,
2007 2006 2008 2007
Operating (Loss) Income $ (29,465) $ 488 $ (508) $ 35
Special items before taxes
Merger and integration expense (3) 87 86 66 59
(2)
Severance, exit costs and asset impairments 41 73 189 141
Goodwill impairment (4) 29,520 - - -
Contingencies and other (5) (15) 5 - 18
Adjusted Operating Income (Loss)* 168 652 (253) 253
Depreciation and amortization 2,077 2,257 2,054 2,142
Adjusted OIBDA* 2,245 2,909 1,801 2,395
Capital expenditures (6) 1,404 2,238 875 1,403
Adjusted OIBDA* less Capex $ 841 $ 671 $ 926 $ 992
Operating (Loss) Income Margin (7) -376.5% 5.9% -6.9% 0.4%
Adjusted OIBDA Margin* 28.7% 35.5% 24.4% 29.7%
Operating Statistics Quarter Ended Quarter Ended
December 31, December 31, March 31, March 31,
2007 2006 2008 2007
Direct Post-Paid Subscribers
Service revenue (in millions) $ 7,175 $ 7,588 $ 6,733 $ 7,418
ARPU 58 60 56 59
Churn 2.3% 2.3% 2.45% 2.3%
Net losses (in thousands) (683) (306) (1,070) (220)
End of period subscribers (in thousands) 40,751 41,805 39,681 41,585
Hours per subscriber 15 16 15 16
Direct Prepaid Subscribers
Service revenue (in millions) $ 378 $ 371 $ 390 $ 397
ARPU 28 32 29 32
Churn 7.5% 6.5% 9.9% 7.0%
Net additions (losses) (in thousands) 55 171 (200) 275
End of period subscribers (in thousands) 4,578 4,012 4,378 4,287
Hours per subscriber 8 7 11 7
Wholesale Subscribers
Net additions (in thousands) 500 830 167 467
End of period subscribers (in thousands) 7,674 6,358 7,841 6,825
Affiliate Subscribers
Net additions (in thousands) 20 46 16 46
End of period subscribers (in thousands) 844 899 860 945
Total Subscribers
Net (losses) additions (in thousands) (108) 741 (1,087) 568
End of period subscribers (in thousands) 53,847 53,074 52,760 53,642
See accompanying Notes to Financial Data (Unaudited)
13
14. Sprint Nextel Corporation
(1)
WIRELINE STATEMENTS OF OPERATIONS AND STATISTICS (Unaudited)
(Millions)
TABLE NO. 7
Quarter Ended Quarter Ended
December 31, December 31, March 31, March 31,
2007 2006 2008 2007
Net Operating Revenues
Voice $ 833 $ 912 $ 824 $ 898
Data 292 350 267 311
Internet 453 319 496 344
Other 41 51 43 45
Total Operating Revenues 1,619 1,632 1,630 1,598
Operating Expenses
Costs of services and products 1,109 1,121 1,084 1,123
Selling, general and administrative 161 248 259 293
(2)
Severance, exit costs and asset impairments 13 5 41 32
Depreciation 141 147 131 127
Total operating expenses 1,425 1,521 1,515 1,575
Operating Income $ 194 $ 111 $ 115 $ 23
NON GAAP RECONCILIATION Quarter Ended Quarter Ended
December 31, December 31, March 31, March 31,
2007 2006 2008 2007
Operating Income $ 194 $ 111 $ 115 $ 23
Special items before taxes
(2)
Severance, exit costs and asset impairments 13 5 41 32
Contingencies and other (5) (29) - - 23
Adjusted Operating Income* 178 116 156 78
Depreciation and amortization 142 147 131 127
Adjusted OIBDA* 320 263 287 205
Capital expenditures (6) 205 274 191 144
Adjusted OIBDA* less Capex $ 115 $ (11) $ 96 $ 61
Operating Income Margin 12.0% 6.8% 7.1% 1.4%
Adjusted OIBDA Margin* 19.8% 16.1% 17.6% 12.8%
Operating Statistics QTD QTD QTD QTD
4Q 2007 1Q 2008 1Q 2008 1Q 2007
YOY Voice only minutes volume growth
0% -5% -5% 3%
(does not include minutes associated with Cable VOIP)
See accompanying Notes to Financial Data (Unaudited)
14
15. Sprint Nextel Corporation
CONDENSED CONSOLIDATED CASH FLOW INFORMATION (Unaudited)
(Millions)
TABLE NO. 8
March 31, March 31,
For the Year to Date Period Ended 2008 2007
Operating Activities
Net loss $ (505) $ (211)
Depreciation and amortization 2,190 2,268
Provision for losses on accounts receivable 255 197
Share-based compensation expense 75 73
Deferred income taxes (325) (185)
Other, net 417 322
Net cash provided by operating activities 2,107 2,464
Investing Activities
Capital expenditures (1,670) (1,813)
Expenditures relating to FCC licenses (274) (107)
Cash collateral for securities loan agreements - 866
Other investing activities 92 32
Net cash used in investing activities (1,852) (1,022)
Financing Activities
Borrowings under credit facility 2,500 750
Proceeds from issuance of commercial paper 681 2,591
Maturities of commercial paper (1,010) (2,706)
Purchase, retirements and payments of debt and capital leases (3) (608)
Payments of securities loan agreements - (866)
Purchase of common shares - (300)
Dividends paid - (72)
Proceeds from issuance of common shares, net 9 69
Net cash provided by (used in) financing activities 2,177 (1,142)
Change in Cash and Cash Equivalents 2,432 300
Cash and Cash Equivalents, beginning of period 2,246 2,046
Cash and Cash Equivalents, end of period $ 4,678 $ 2,346
See accompanying Notes to Financial Data (Unaudited)
15
16. Sprint Nextel Corporation
FREE CASH FLOW (NON GAAP)
(Millions)
TABLE NO. 9
Quarter Ended
December 31, March 31, March 31,
2007 2008 2007
Adjusted OIBDA* $ 2,455 $ 2,009 $ 2,583
Adjust for special items (29,651) (317) (314)
Other operating activities, net (8) 29,293 415 195
Cash from Operating Activities (GAAP) 2,097 2,107 2,464
Capital expenditures (1,671) (1,670) (1,813)
Expenditures relating to FCC Licenses (373) (274) (107)
Proceeds from sales of investments and assets, net of purchases 206 8 27
Dividends paid (71) - (72)
Other investing activities, net 23 (1) (2)
Free Cash Flow* 211 170 497
Purchase of common shares - - (300)
(Decrease) increase in debt, net (27) 2,168 27
Proceeds from issuance of common shares, net 7 9 69
(Increase) decrease in marketable securities, net (188) 85 7
Change in Cash and Cash Equivalents (GAAP) $ 3 $ 2,432 $ 300
See accompanying Notes to Financial Data (Unaudited)
16
17. Sprint Nextel Corporation
(1)
CONSOLIDATED BALANCE SHEETS
(Millions)
TABLE NO. 10 (Unaudited)
March 31, December 31,
2008 2007
Assets
Current assets
Cash and cash equivalents $ 4,678 $ 2,246
Marketable securities 97 194
Accounts and notes receivable, net 3,798 4,196
Device and accessory inventory 842 938
Deferred tax assets 181 447
Prepaid expenses and other current assets 731 640
Total current assets 10,327 8,661
Investments 157 165
Property, plant and equipment, net 26,434 26,496
Goodwill 1,143 1,144
FCC licenses and other 21,421 21,123
Customer relationships, net 3,556 4,203
Other definite lived intangible assets, net 1,785 1,835
Other assets 640 691
Total $ 65,463 $ 64,318
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $ 3,264 $ 3,481
Accrued expenses and other current liabilities 4,139 3,962
Current portion of long-term debt and capital lease obligations 1,330 1,661
Total current liabilities 8,733 9,104
Long-term debt and capital lease obligations 22,987 20,469
Deferred tax liabilities 8,096 8,689
Other liabilities 3,878 3,848
Total liabilities 43,694 42,110
Shareholders' equity
Common shares 5,902 5,902
Paid-in capital 46,752 46,693
Treasury shares, at cost (2,075) (2,161)
Accumulated deficit (28,697) (28,115)
Accumulated other comprehensive loss (113) (111)
Total shareholders' equity 21,769 22,208
Total $ 65,463 $ 64,318
NET DEBT (NON-GAAP) (Unaudited)
(Millions)
TABLE NO. 11
March 31, December 31,
2008 2007
Total Debt $ 24,317 $ 22,130
Less: Cash and cash equivalents (4,678) (2,246)
Less: Marketable securities (97) (194)
Net Debt* $ 19,542 $ 19,690
Adjusted OIBDA* for the three months ended $ 2,009 $ 2,455
x 4 x 4
Annualized Adjusted OIBDA* $ 8,036 $ 9,820
Net Debt / Annualized Adjusted OIBDA* X 2.4 X 2.0 X
See accompanying Notes to Financial Data (Unaudited)
17
18. Sprint Nextel Corporation
Schedule of Debt (Unaudited)
(Millions)
TABLE NO. 12
March 31,
2008
ISSUER COUPON MATURITY PRINCIPAL
Sprint Nextel Corporation
Commercial Paper 3.816% Short-term $ 50
Floating Rate Notes due 2010 3.071% 06/28/2010 750
Bank Credit Facility 3.288% 12/19/2010 2,500
Export Development Canada Facility 3.155% 03/30/2012 750
6% Notes due 2016 6.000% 12/01/2016 2,000
9.25% Debentures due 2022 9.250% 04/15/2022 200
Sprint Nextel Corporation subtotal 6,250
Sprint Capital Corporation
6.125% Notes due 2008 6.125% 11/15/2008 1,253
6.375% Notes due 2009 6.375% 05/01/2009 600
7.625% Notes due 2011 7.625% 01/30/2011 1,650
8.375% Notes due 2012 8.375% 03/15/2012 2,000
6.9% Notes due 2019 6.900% 05/01/2019 1,729
6.875% Notes due 2028 6.875% 11/15/2028 2,475
8.75% Notes due 2032 8.750% 03/15/2032 2,000
Sprint Capital Corporation subtotal 11,707
Nextel Communications Inc.
5.25% Convertible Senior Notes due 2010 5.250% 01/15/2010 607
6.875% Senior Serial Redeemable Notes due 2013 6.875% 10/31/2013 1,473
5.95% Senior Serial Redeemable Notes due 2014 5.950% 03/15/2014 1,170
7.375% Senior Serial Redeemable Notes due 2015 7.375% 08/01/2015 2,137
Nextel Communications Inc. subtotal 5,387
US Unwired Inc.
10% Second Priority Senior Secured Notes due 2012 10.000% 06/15/2012 235
US Unwired Inc. subtotal 235
Alamosa Delaware Inc.
8.5% Senior Notes due 2012 8.500% 01/31/2012 250
US Unwired Inc. subtotal 250
Capital Leases and Other Obligations 103
TOTAL PRINCIPAL 23,932
Premiums, discounts, variable interest entity and other adjustments 385
TOTAL DEBT $ 24,317
See accompanying Notes to Financial Data (Unaudited)
18
19. Sprint Nextel Corporation
NOTES TO FINANCIAL DATA (Unaudited)
Certain prior period amounts have been reclassified to conform to current period presentation.
(1)
In the first quarter 2008 and 2007, we recorded severance, exit costs and asset impairment charges of
(2)
$231 million pre-tax ($143 million, net of tax) and $174 million pre-tax ($109 million, net of tax),
respectively, which substantially consists of work force reductions and lease termination charges.
Severance, exit costs and asset impairment charges are allocated to the appropriate segment results.
In the first quarter 2008 and 2007, we recorded merger and integration costs of $86 million pre-tax
(3)
($53 million, net of tax) and $99 million pre-tax ($60 million, net of tax), respectively. All merger
costs are related to the Sprint-Nextel merger and/or the PCS Affiliates and Nextel Partners’
acquisitions. Merger and integration costs are generally non-recurring in nature and primarily include
costs to prepare systems for the launch of common customer interfacing systems, processes and other
integration and planning activities, certain costs to provide wireless devices that operate seamlessly
between the CDMA and iDEN networks, certain customer care costs, costs to retain employees, costs
related to re-branding, and other costs.
Merger and integration expenses which are solely and directly attributable to the Wireless segment
have been allocated to that segment. These expenses are classified as selling, general and
administrative, cost of products, or equipment revenues as appropriate on our consolidated statement
of operations. Merger and integration expenses that are not solely and directly attributable to the
Wireless segment are included in the Corporate segment and are classified as selling, general and
administrative expenses on our consolidated statement of operations. The first quarter 2008 includes
merger and integration expense associated with wireless devices that operate seamlessly between the
CDMA and iDEN networks that were not recorded until the second quarter 2007 and therefore, are not
comparable.
As a result of our 2007 annual goodwill assessment, we recorded a non-cash goodwill impairment
(4)
charge of $29.7 billion during the fourth quarter 2007. During the first quarter 2008, we finalized our
goodwill analysis which resulted in a $209 million adjustment to the goodwill impairment charge
recorded in the fourth quarter 2007. Accordingly, the final goodwill impairment charge is $29.5 billion
for the fourth quarter 2007, which has been reflected in the accumulated deficit balance as of
December 31, 2007. The substantial majority of the charge was not taxable as goodwill is generally
not separately deductible for tax purposes.
Contingencies and other includes charges associated with legal contingencies, net costs associated with
(5)
the exit of a non-core line of business and certain non-recurring adjustments associated with hurricane
insurance settlements.
Capital expenditures is an accrual based amount that includes the changes in unpaid capital
(6)
expenditures and excludes capitalized interest. Consolidated capital expenditures of $1.4 billion for the
first quarter 2008 includes $257 million reduction in accrued capital expenditures less $53 million of
capitalized interest. Wireless segment capital expenditures of $875 million for the first quarter 2008
includes $174 million reduction in accrued capital expenditures less $26 million of capitalized interest.
Wireline segment capital expenditures of $191 million for the first quarter 2008 includes $49 million
reduction in accrued capital expenditures less $2 million of capitalized interest. Cash paid for capital
expenditures can be found in the statements of cash flows on Table No. 8 and free cash flows on Table
No. 9.
Operating income (loss) margin excludes equipment revenues.
(7)
Other operating activities, net includes the change in working capital, change in deferred income taxes,
(8)
miscellaneous operating activities and non-operating items in net loss.
19