We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
SentinelOne Inc | NYSE:S | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.43 | 2.03% | 21.63 | 21.78 | 21.39 | 21.50 | 1,988,678 | 01:00:00 |
Sprint Corporation (NYSE:S) today reported operating results for the third quarter of fiscal year 2016, including more than 5 percent year-over-year growth in net operating revenues and the highest postpaid phone net additions in four years. The company also reported operating income of $311 million and Adjusted EBITDA* of $2.5 billion, both improvements of more than $500 million year-over-year.
“Sprint is turning the corner,” said Sprint CEO Marcelo Claure. “Even with all the aggressive promotional offers from our competitors, we were still able to add more postpaid phone customers than both Verizon and AT&T while continuing to grow revenues, take costs out of the business, and improve the network.”
Highest Postpaid Phone Net Additions in Four Years During Very Competitive Quarter
Sprint’s focus on delivering the best value proposition in wireless resulted in 368,000 postpaid phone net additions in the quarter, its ninth consecutive quarter of year-over-year improvement. Even in a highly competitive quarter with multiple promotional offers from its competitors, Sprint was able to add more postpaid phone customers than both Verizon and AT&T and report its highest postpaid phone net additions in four years. The company also remained postpaid net port positive for the third quarter in a row and had its highest postpaid phone gross additions in four years.
The company also reported the following results:
Top Line Growing as Cost Reductions Continue
Sprint made continued progress on growing revenues and improving the cost structure of the business. Total net operating revenues of $8.5 billion grew by $442 million year-over-year, or more than 5 percent, and cost of service and selling, general and administrative expenses declined by nearly $500 million year-over-year, bringing the year-to-date cost reduction to more than $1.6 billion.
As part of its ongoing cost reduction program, the company modified the terms of its vendor agreements associated with the service and repair program on Jan. 1, 2017, which are expected to be accretive to Adjusted EBITDA* by approximately $25 million to $50 million per quarter. Under the terms of the new agreements, the company will now only record the net margin and therefore expects the reduction to wireless service revenues of approximately $200 million per quarter to be more than offset by a greater reduction in cost of service expenses.
The company remains on track to achieve its goal of a sustainable reduction of $2 billion or more of run-rate operating expenses exiting fiscal year 2016 and has plans for further reductions in fiscal year 2017 and beyond.
The company also reported the following financial results:
Improved Operating Performance and Liquidity Position Bolsters Credit Rating
During the quarter the company issued $3.5 billion of spectrum-backed senior secured notes at 3.36 percent, which is about half of Sprint’s current effective interest rate, as part of a $7 billion program aimed at diversifying the company’s funding sources, lowering its cost of capital, and reducing future cash interest expenses. The company also retired $2.3 billion of debt maturities with significantly higher coupon payments and repurchased the devices sold in the first MLS transaction, thus eliminating the associated future lease obligation.
Total liquidity was $9.1 billion at the end of the quarter, including $6.1 billion of cash, cash equivalents and short-term investments. Additionally, the company also has $1.2 billion of availability under vendor financing agreements that can be used toward the purchase of 2.5GHz network equipment.
Based on the company’s sustained operational performance and improved liquidity, Moody’s Investor Service recently upgraded Sprint’s corporate family rating from B3 to B2.
In addition, the company is in the process of refinancing its $3.3 billion unsecured revolving credit facility and expects to complete that process in the coming weeks.
Network Improvements Expected to Continue with High Performance User Equipment (HPUE)
Sprint continues to unlock the value of the largest spectrum holdings in the U.S. by densifying and optimizing its network to provide customers the best experience. Third party sources continue to validate the company’s network performance improvements.
The Sprint LTE Plus network, which includes advanced technologies such as antenna beamforming and two-channel carrier aggregation, is now available in more than 250 markets, with three-channel carrier aggregation deployed in more than 100 of those markets.
Sprint also recently announced a breakthrough innovation called HPUE, a new technology that can extend the coverage of its 2.5GHz spectrum by up to 30 percent to nearly match its mid-band 1.9GHz spectrum performance on capable devices, including indoors where the majority of wireless traffic is generated. HPUE-capable devices are expected to be available in the coming months.
Fiscal Year 2016 Outlook
Conference Call and Webcast
1 Rankings based on RootMetrics 125 Metro RootScore Reports (1H and 2H 2016) for mobile performance as tested on best available plans and devices on 4 mobile networks across all available network types. Your experience may vary. The RootMetrics awards are not an endorsement of Sprint. Visit www.rootmetrics.com.
2 Average network reliability (voice & data) based on Sprint’s analysis of latest Nielsen drive test data in the top 106 metro markets.
Wireless Operating Statistics (Unaudited) Quarter To Date Year To Date 12/31/16 9/30/16 12/31/15 12/31/16 12/31/15 Sprint platform (1): Net additions (losses) (in thousands) Postpaid 405 344 501 929 1,189 Prepaid (501 ) (427 ) (491 ) (1,259 ) (1,045 ) Wholesale and affiliate 673 823 481 2,024 2,078 Total Sprint platform wireless net additions 577 740 491 1,694 2,222 End of period connections (in thousands) Postpaid (d) 31,694 31,289 30,895 31,694 30,895 Prepaid (d) (e) 11,812 13,547 14,661 11,812 14,661 Wholesale and affiliate (d) (e) 16,009 15,357 12,803 16,009 12,803 Total Sprint platform end of period connections 59,515 60,193 58,359 59,515 58,359 Churn Postpaid 1.67 % 1.52 % 1.62 % 1.58 % 1.57 % Prepaid (e) 5.80 % 5.63 % 5.82 % 5.66 % 5.31 % Supplemental data - connected devices End of period connections (in thousands) Retail postpaid 1,960 1,874 1,676 1,960 1,676 Wholesale and affiliate 10,594 9,951 7,930 10,594 7,930 Total 12,554 11,825 9,606 12,554 9,606 Sprint platform ARPU (1) (a) Postpaid $ 49.70 $ 50.54 $ 52.48 $ 50.59 $ 53.97 Prepaid (e) $ 27.61 $ 27.31 $ 27.44 $ 27.41 $ 27.64 Sprint platform postpaid phone (1) Postpaid phone net additions 368 347 366 888 416 Postpaid phone end of period connections (d) 26,037 25,669 25,294 26,037 25,294 Postpaid phone churn 1.57 % 1.37 % 1.53 % 1.44 % 1.50 % NON-GAAP RECONCILIATION - ABPA*, POSTPAID PHONE ARPU AND ABPU* (Unaudited) (Millions, except accounts, connections, ABPA*, ARPU, and ABPU*) Quarter To Date Year To Date 12/31/16 9/30/16 12/31/15 12/31/16 12/31/15 Sprint platform ABPA* (1) Postpaid service revenue $ 4,686 $ 4,720 $ 4,813 $ 14,184 $ 14,670 Add: Installment plan billings 291 274 300 829 903 Add: Lease revenue 887 811 531 2,453 1,176 Total for Sprint platform postpaid connections $ 5,864 $ 5,805 $ 5,644 $ 17,466 $ 16,749 Sprint platform postpaid accounts (in thousands) 11,413 11,363 11,261 11,368 11,211 Sprint platform postpaid ABPA* (b) $ 171.28 $ 170.29 $ 167.11 $ 170.71 $ 166.00 Quarter To Date Year To Date 12/31/16 9/30/16 12/31/15 12/31/16 12/31/15 Sprint platform postpaid phone ARPU and ABPU* (1) Postpaid phone service revenue $ 4,420 $ 4,441 $ 4,529 $ 13,350 $ 13,819 Add: Installment plan billings 261 248 280 752 848 Add: Lease revenue 873 797 522 2,411 1,150 Total for Sprint platform postpaid phone connections $ 5,554 $ 5,486 $ 5,331 $ 16,513 $ 15,817 Sprint platform postpaid average phone connections (in thousands) 25,795 25,514 25,040 25,528 24,927 Sprint platform postpaid phone ARPU (a) $ 57.12 $ 58.03 $ 60.30 $ 58.11 $ 61.60 Sprint platform postpaid phone ABPU* (c) $ 71.77 $ 71.69 $ 70.99 $ 71.87 $ 70.51 (a) ARPU is calculated by dividing service revenue by the sum of the monthly average number of connections in the applicable service category. Changes in average monthly service revenue reflect connections for either the postpaid or prepaid service category who change rate plans, the level of voice and data usage, the amount of service credits which are offered to connections, plus the net effect of average monthly revenue generated by new connections and deactivating connections. Sprint platform postpaid phone ARPU represents revenues related to our postpaid phone connections. (b) Sprint platform postpaid ABPA* is calculated by dividing service revenue earned from connections plus installment plan billings and lease revenue by the sum of the monthly average number of accounts during the period. (c) Sprint platform postpaid phone ABPU* is calculated by dividing postpaid phone service revenue earned from postpaid phone connections plus installment plan billings and lease revenue by the sum of the monthly average number of postpaid phone connections during the period. (d) As part of the transaction involving Shenandoah Telecommunications Company (Shentel), 186,000 and 92,000 subscribers were transferred in May 2016 from postpaid and prepaid, respectively, to affiliates. An additional 270,000 nTelos' subscribers are now part of our affiliate relationship with Shentel and are being reported in wholesale and affiliate subscribers during the quarter ended June 30, 2016. (e) As a result of aligning all prepaid brands, including prepaid affiliate subscribers, under one churn and retention program as of December 31, 2016, end of period prepaid and affiliate subscribers were reduced by 1,234,000 and 21,000, respectively. Wireless Device Financing Summary (Unaudited) (Millions, except sales, connections, and sales and connections mix) Quarter To Date Year To Date 12/31/16 9/30/16 12/31/15 12/31/16 12/31/15 Postpaid sales (in thousands) 4,812 3,747 4,799 11,827 12,956 Postpaid sales mix Subsidy/other 20 % 27 % 35 % 25 % 35 % Installment plans 37 % 34 % 10 % 33 % 12 % Leasing 43 % 39 % 55 % 42 % 53 % Installment plans Installment sales financed $ 1,036 $ 745 $ 251 $ 2,188 $ 748 Installment billings 291 274 300 829 903 Leasing Lease revenue $ 887 $ 811 $ 531 $ 2,453 $ 1,176 Lease depreciation 837 724 535 2,205 1,231 Leased device additions: Cash paid for capital expenditures - leased devices $ 767 $ 358 $ 607 $ 1,530 $ 1,724 Transfers from inventory - leased devices 1,095 645 1,073 2,281 2,623 Leased devices in property, plant and equipment, net $ 4,454 $ 3,759 $ 3,321 $ 4,454 $ 3,321 Leased device net proceeds Proceeds from MLS sale $ - $ - $ 1,136 $ 1,055 $ 1,136 Repayments to MLS (176 ) (161 ) - (502 ) - Proceeds from lease securitization - - - - - Repayments of lease securitization (55 ) (23 ) - (153 ) - Net (repayments) proceeds of device financings and sales of future lease receivables $ (231 ) $ (184 ) $ 1,136 $ 400 $ 1,136 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Millions, except per share data) Quarter To Date Year To Date 12/31/16 9/30/16 12/31/15 12/31/16 12/31/15 Net operating revenues Service revenue $ 6,323 $ 6,413 $ 6,683 $ 19,252 $ 20,600 Equipment revenue 2,226 1,834 1,424 5,556 3,509 Total net operating revenues 8,549 8,247 8,107 24,808 24,109 Net operating expenses Cost of services (exclusive of depreciation and amortization below) 1,925 2,101 2,348 6,125 7,194 Cost of products (exclusive of depreciation and amortization below) 1,985 1,693 1,589 5,097 4,244 Selling, general and administrative 2,080 1,995 2,129 5,992 6,540 Depreciation - network and other 1,000 986 1,014 3,022 2,971 Depreciation - leased devices 837 724 535 2,205 1,231 Amortization 255 271 316 813 994 Other, net 156 (145 ) 373 260 633 Total net operating expenses 8,238 7,625 8,304 23,514 23,807 Operating income (loss) 311 622 (197 ) 1,294 302 Interest expense (619 ) (630 ) (546 ) (1,864 ) (1,630 ) Other (expense) income, net (60 ) (15 ) 4 (67 ) 13 Loss before income taxes (368 ) (23 ) (739 ) (637 ) (1,315 ) Income tax expense (111 ) (119 ) (97 ) (286 ) (126 ) Net loss $ (479 ) $ (142 ) $ (836 ) $ (923 ) $ (1,441 ) Basic and diluted net loss per common share $ (0.12 ) $ (0.04 ) $ (0.21 ) $ (0.23 ) $ (0.36 ) Weighted average common shares outstanding 3,983 3,979 3,970 3,979 3,969 Effective tax rate -30.2 % -517.4 % -13.1 % -44.9 % -9.6 % NON-GAAP RECONCILIATION - NET LOSS TO ADJUSTED EBITDA* (Unaudited) (Millions) Quarter To Date Year To Date 12/31/16 9/30/16 12/31/15 12/31/16 12/31/15 Net loss $ (479 ) $ (142 ) $ (836 ) $ (923 ) $ (1,441 ) Income tax expense 111 119 97 286 126 Loss before income taxes (368 ) (23 ) (739 ) (637 ) (1,315 ) Other expense (income), net 60 15 (4 ) 67 (13 ) Interest expense 619 630 546 1,864 1,630 Operating income (loss) 311 622 (197 ) 1,294 302 Depreciation - network and other 1,000 986 1,014 3,022 2,971 Depreciation - leased devices 837 724 535 2,205 1,231 Amortization 255 271 316 813 994 EBITDA* (3) 2,403 2,603 1,668 7,334 5,498 Loss (gain) from asset dispositions and exchanges, net (4) 28 (354 ) - (326 ) 85 Severance and exit costs (5) 19 (5 ) 209 30 247 Contract terminations (6) - - - 113 - Litigation and other contingencies (7) - 103 21 103 178 Reduction in liability - U.S. Cellular asset acquisition (8) - - - - (20 ) Adjusted EBITDA* (3) $ 2,450 $ 2,347 $ 1,898 $ 7,254 $ 5,988 Adjusted EBITDA margin* 38.7 % 36.6 % 28.4 % 37.7 % 29.1 % Selected items: Cash paid for capital expenditures - network and other $ 478 $ 470 $ 994 $ 1,421 $ 3,958 Cash paid for capital expenditures - leased devices $ 767 $ 358 $ 607 $ 1,530 $ 1,724 WIRELESS STATEMENTS OF OPERATIONS (Unaudited) (Millions) Quarter To Date Year To Date 12/31/16 9/30/16 12/31/15 12/31/16 12/31/15 Net operating revenues Service revenue Sprint platform (1): Postpaid $ 4,686 $ 4,720 $ 4,813 $ 14,184 $ 14,670 Prepaid 1,077 1,129 1,224 3,371 3,783 Wholesale, affiliate and other 183 168 182 509 548 Total Sprint platform 5,946 6,017 6,219 18,064 19,001 Total transactions (2) - - 27 - 216 Total service revenue 5,946 6,017 6,246 18,064 19,217 Equipment revenue 2,226 1,834 1,424 5,556 3,509 Total net operating revenues 8,172 7,851 7,670 23,620 22,726 Net operating expenses Cost of services (exclusive of depreciation and amortization below) 1,649 1,793 2,031 5,226 6,147 Cost of products (exclusive of depreciation and amortization below) 1,985 1,693 1,589 5,097 4,244 Selling, general and administrative 2,032 1,931 2,041 5,797 6,273 Depreciation - network and other 947 936 961 2,868 2,821 Depreciation - leased devices 837 724 535 2,205 1,231 Amortization 255 271 316 813 994 Other, net 150 (151 ) 353 248 611 Total net operating expenses 7,855 7,197 7,826 22,254 22,321 Operating income (loss) $ 317 $ 654 $ (156 ) $ 1,366 $ 405 WIRELESS NON-GAAP RECONCILIATION (Unaudited) (Millions) Quarter To Date Year To Date 12/31/16 9/30/16 12/31/15 12/31/16 12/31/15 Operating income (loss) $ 317 $ 654 $ (156 ) $ 1,366 $ 405 Loss (gain) from asset dispositions and exchanges, net (4) 28 (354 ) - (326 ) 85 Severance and exit costs (5) 13 (11 ) 189 18 225 Contract terminations (6) - - - 113 - Litigation and other contingencies (7) - 103 21 103 178 Reduction in liability - U.S. Cellular asset acquisition (8) - - - - (20 ) Depreciation - network and other 947 936 961 2,868 2,821 Depreciation - leased devices 837 724 535 2,205 1,231 Amortization 255 271 316 813 994 Adjusted EBITDA* (3) $ 2,397 $ 2,323 $ 1,866 $ 7,160 $ 5,919 Adjusted EBITDA margin* 40.3 % 38.6 % 29.9 % 39.6 % 30.8 % Selected items: Cash paid for capital expenditures - network and other $ 389 $ 358 $ 869 $ 1,123 $ 3,512 Cash paid for capital expenditures - leased devices $ 767 $ 358 $ 607 $ 1,530 $ 1,724 WIRELINE STATEMENTS OF OPERATIONS (Unaudited) (Millions) Quarter To Date Year To Date 12/31/16 9/30/16 12/31/15 12/31/16 12/31/15 Net operating revenues Voice $ 153 $ 172 $ 201 $ 506 $ 646 Data 41 43 42 127 134 Internet 281 288 317 871 968 Other 22 18 21 59 72 Total net operating revenues 497 521 581 1,563 1,820 Net operating expenses Costs of services (exclusive of depreciation and amortization below) 400 436 466 1,284 1,495 Selling, general and administrative 49 62 82 189 254 Depreciation and amortization 51 48 50 148 144 Other, net 6 7 20 13 22 Total net operating expenses 506 553 618 1,634 1,915 Operating loss $ (9 ) $ (32 ) $ (37 ) $ (71 ) $ (95 ) WIRELINE NON-GAAP RECONCILIATION (Unaudited) (Millions) Quarter To Date Year To Date 12/31/16 9/30/16 12/31/15 12/31/16 12/31/15 Operating loss $ (9 ) $ (32 ) $ (37 ) $ (71 ) $ (95 ) Severance and exit costs (5) 6 7 20 13 22 Depreciation and amortization 51 48 50 148 144 Adjusted EBITDA* $ 48 $ 23 $ 33 $ 90 $ 71 Adjusted EBITDA margin* 9.7 % 4.4 % 5.7 % 5.8 % 3.9 % Selected items: Cash paid for capital expenditures - network and other $ 24 $ 31 $ 74 $ 75 $ 205 CONDENSED CONSOLIDATED CASH FLOW INFORMATION (Unaudited)** (Millions) Year to Date 12/31/16 12/31/15 Operating activities Net loss $ (923 ) $ (1,441 ) Depreciation and amortization 6,040 5,196 Provision for losses on accounts receivable 406 385 Share-based and long-term incentive compensation expense 57 58 Deferred income tax expense 276 120 Gains from asset dispositions and exchanges (354 ) - Amortization of long-term debt premiums, net (234 ) (236 ) Loss on disposal of property, plant and equipment 368 228 Contract terminations 96 - Other changes in assets and liabilities: Accounts and notes receivable (542 ) (1,482 ) Inventories and other current assets (2,254 ) (2,165 ) Deferred purchase price from sale of receivables (220 ) 2,048 Accounts payable and other current liabilities (97 ) (816 ) Non-current assets and liabilities, net (313 ) 112 Other, net 594 596 Net cash provided by operating activities 2,900 2,603 Investing activities Capital expenditures - network and other (1,421 ) (3,958 ) Capital expenditures - leased devices (1,530 ) (1,724 ) Expenditures relating to FCC licenses (46 ) (75 ) Change in short-term investments, net (2,349 ) 125 Proceeds from sales of assets and FCC licenses 126 36 Proceeds from sale-leaseback transaction - 1,136 Other, net 26 (25 ) Net cash used in investing activities (5,194 ) (4,485 ) Financing activities Proceeds from debt and financings 6,830 755 Repayments of debt, financing and capital lease obligations (3,266 ) (727 ) Debt financing costs (272 ) (1 ) Other, net 68 20 Net cash provided by financing activities 3,360 47 Net increase (decrease) in cash and cash equivalents 1,066 (1,835 ) Cash and cash equivalents, beginning of period 2,641 4,010 Cash and cash equivalents, end of period $ 3,707 $ 2,175 RECONCILIATION TO CONSOLIDATED FREE CASH FLOW* (NON-GAAP) (Unaudited) (Millions) Quarter To Date Year to Date 12/31/16 9/30/16 12/31/15 12/31/16 12/31/15 Net cash provided by operating activities $ 650 $ 1,708 $ 806 $ 2,900 $ 2,603 Capital expenditures - network and other (478 ) (470 ) (994 ) (1,421 ) (3,958 ) Capital expenditures - leased devices (767 ) (358 ) (607 ) (1,530 ) (1,724 ) Expenditures relating to FCC licenses, net (14 ) (17 ) (30 ) (46 ) (75 ) Proceeds from sales of assets and FCC licenses 60 39 32 126 36 Other investing activities, net 134 (11 ) (4 ) 98 (25 ) Free cash flow* (9) $ (415 ) $ 891 $ (797 ) $ 127 $ (3,143 ) Net (repayments) proceeds of device financings and sales of future lease receivables (231 ) (184 ) 1,136 400 1,136 Adjusted free cash flow* $ (646 ) $ 707 $ 339 $ 527 $ (2,007 ) **Certain prior period amounts have been reclassified to conform to the current period presentation. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Millions) 12/31/16 3/31/16 ASSETS Current assets Cash and cash equivalents $ 3,707 $ 2,641 Short-term investments 2,349 - Accounts and notes receivable, net 1,236 1,099 Device and accessory inventory 1,296 1,173 Prepaid expenses and other current assets 1,984 1,920 Total current assets 10,572 6,833 Property, plant and equipment, net 19,333 20,297 Goodwill 6,579 6,575 FCC licenses and other 40,556 40,073 Definite-lived intangible assets, net 3,582 4,469 Other assets 673 728 Total assets $ 81,295 $ 78,975 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 2,894 $ 2,899 Accrued expenses and other current liabilities 4,189 4,374 Current portion of long-term debt, financing and capital lease obligations 6,554 4,690 Total current liabilities 13,637 11,963 Long-term debt, financing and capital lease obligations 30,759 29,268 Deferred tax liabilities 14,238 13,959 Other liabilities 3,665 4,002 Total liabilities 62,299 59,192 Stockholders' equity Common stock 40 40 Treasury shares, at cost - (3 ) Paid-in capital 27,694 27,563 Accumulated deficit (8,301 ) (7,378 ) Accumulated other comprehensive loss (437 ) (439 ) Total stockholders' equity 18,996 19,783 Total liabilities and stockholders' equity $ 81,295 $ 78,975 NET DEBT* (NON-GAAP) (Unaudited) (Millions) 12/31/16 3/31/16 Total debt $ 37,313 $ 33,958 Less: Cash and cash equivalents (3,707 ) (2,641 ) Less: Short-term investments (2,349 ) - Net debt* $ 31,257 $ 31,317 SCHEDULE OF DEBT (Unaudited) (Millions) 12/31/16ISSUER
MATURITY PRINCIPAL Sprint Corporation 7.25% Senior notes due 2021 09/15/2021 $ 2,250 7.875% Senior notes due 2023 09/15/2023 4,250 7.125% Senior notes due 2024 06/15/2024 2,500 7.625% Senior notes due 2025 02/15/2025 1,500 Sprint Corporation 10,500 Sprint Spectrum Co LLC, Sprint Spectrum Co II LLC and Sprint Spectrum Co III LLC 3.36% Senior secured notes due 2021 09/20/2021 3,500 Sprint Spectrum Co LLC, Sprint Spectrum Co II LLC and Sprint Spectrum Co III LLC 3,500 Sprint Communications, Inc. Export Development Canada Facility (Tranche 4) 12/15/2017 250 Export Development Canada Facility (Tranche 3) 12/17/2019 300 9.125% Senior notes due 2017 03/01/2017 1,000 8.375% Senior notes due 2017 08/15/2017 1,300 9% Guaranteed notes due 2018 11/15/2018 3,000 7% Guaranteed notes due 2020 03/01/2020 1,000 7% Senior notes due 2020 08/15/2020 1,500 11.5% Senior notes due 2021 11/15/2021 1,000 9.25% Debentures due 2022 04/15/2022 200 6% Senior notes due 2022 11/15/2022 2,280 Sprint Communications, Inc. 11,830 Sprint Capital Corporation 6.9% Senior notes due 2019 05/01/2019 1,729 6.875% Senior notes due 2028 11/15/2028 2,475 8.75% Senior notes due 2032 03/15/2032 2,000 Sprint Capital Corporation 6,204 Clearwire Communications LLC 8.25% Exchangeable notes due 2017 (a) 12/01/2017 629 Clearwire Communications LLC 629 Secured equipment credit facilities 2017 - 2021 586 Financing obligations 2017 - 2021 3,401 Capital leases and other obligations 2017 - 2024 480 Total principal 37,130 Net premiums and debt financing costs 183 Total debt $ 37,313 (a) $629 million Clearwire 8.25% Exchangeable Notes due 2040 have both a par call and put in December 2017. NOTES TO THE FINANCIAL INFORMATION (Unaudited) (1) Sprint platform refers to the Sprint network that supports the wireless service we provide through our multiple brands. (2) Postpaid and prepaid connections from transactions are defined as retail postpaid and prepaid connections acquired from Clearwire in July 2013 who had not deactivated or been recaptured on the Sprint platform. (3) As more of our customers elect to lease a device rather than purchasing one under our subsidized program, there is a significant positive impact to EBITDA* and Adjusted EBITDA* from direct channel sales primarily due to the fact the cost of the device is not recorded as cost of products but rather is depreciated over the customer lease term. Under our device leasing program for the direct channel, devices are transferred from inventory to property and equipment and the cost of the leased device is recognized as depreciation expense over the customer lease term to an estimated residual value. The customer payments are recognized as revenue over the term of the lease. Under our subsidized program, the cash received from the customer for the device is recognized as equipment revenue at the point of sale and the cost of the device is recognized as cost of products. During the three and nine-month periods ended December 31, 2016, we leased devices through our Sprint direct channels totaling approximately $1,095 million and $2,281 million, respectively, which would have increased cost of products and reduced EBITDA* if they had been purchased under our subsidized program. Also, during the three and nine-month periods ended December 31, 2016, the equipment revenue derived from customers electing to finance their devices through device leasing or installment billing programs in our direct channel was 66% and 67%, respectively.
The impact to EBITDA* and Adjusted EBITDA* resulting from the sale of devices under our installment billing program is generally neutral except for the impact from the time value of money element related to the imputed interest on the installment receivable.
(4) During the third quarter of fiscal year 2016 and the second quarter of fiscal year 2015, the company recorded losses on dispositions of assets primarily related to cell site construction and network development costs that are no longer relevant as a result of changes in the company's network plans. During the second quarter of fiscal year 2016 the company recorded a pre-tax non-cash gain of $354 million related to spectrum swaps with other carriers. (5) Severance and exit costs consist of lease exit costs primarily associated with tower and cell sites, access exit costs related to payments that will continue to be made under the company's backhaul access contracts for which the company will no longer be receiving any economic benefit, and severance costs associated with reduction in its work force. (6) Contract terminations primarily relate to the termination of our pre-existing wholesale arrangement with Ntelos Holding Corp. (7) Litigation and other contingencies consist of unfavorable developments associated with legal as well as federal and state matters such as sales, use or property taxes. (8) As a result of the U.S. Cellular asset acquisition, we recorded a liability related to network shut-down costs, which primarily consisted of lease exit costs, for which we agreed to reimburse U.S. Cellular. During the third quarter of fiscal year 2014, we identified favorable trends in actual costs and, as a result, reduced the liability resulting in a gain of $41 million. During the first quarter of fiscal year 2015, we revised our estimate and, as a result, reduced the liability resulting in approximately $20 million of income. (9) Free cash flow* for the three and nine-month periods ended December 31, 2016, included net cash outflows of approximately $370 million related to the termination of our MLS Tranche 1 arrangement, which included the repurchase of the devices.*FINANCIAL MEASURES
Sprint provides financial measures determined in accordance with GAAP and adjusted GAAP (non-GAAP). The non-GAAP financial measures reflect industry conventions, or standard measures of liquidity, profitability or performance commonly used by the investment community for comparability purposes. These measurements should be considered in addition to, but not as a substitute for, financial information prepared in accordance with GAAP. We have defined below each of the non-GAAP measures we use, but these measures may not be synonymous to similar measurement terms used by other companies.
Sprint provides reconciliations of these non-GAAP measures in its financial reporting. Because Sprint does not predict special items that might occur in the future, and our forecasts are developed at a level of detail different than that used to prepare GAAP-based financial measures, Sprint does not provide reconciliations to GAAP of its forward-looking financial measures.
The measures used in this release include the following:
EBITDA is operating income/(loss) before depreciation and amortization. Adjusted EBITDA is EBITDA excluding severance, exit costs, and other special items. Adjusted EBITDA Margin represents Adjusted EBITDA divided by non-equipment net operating revenues for Wireless and Adjusted EBITDA divided by net operating revenues for Wireline. We believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to investors because they are an indicator of the strength and performance of our ongoing business operations. While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent non-cash current period costs associated with the use of long-lived tangible and definite-lived intangible assets. Adjusted EBITDA and Adjusted EBITDA Margin are calculations commonly used as a basis for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the telecommunications industry.
Sprint Platform Postpaid ABPA is average billings per account and calculated by dividing postpaid service revenue earned from postpaid customers plus installment plan billings and lease revenue by the sum of the monthly average number of postpaid accounts during the period. We believe that ABPA provides useful information to investors, analysts and our management to evaluate average Sprint platform postpaid customer billings per account as it approximates the expected cash collections, including installment plan billings and lease revenue, per postpaid account each month.
Sprint Platform Postpaid Phone ABPU is average billings per postpaid phone user and calculated by dividing service revenue earned from postpaid phone customers plus installment plan billings and lease revenue by the sum of the monthly average number of postpaid phone connections during the period. We believe that ABPU provides useful information to investors, analysts and our management to evaluate average Sprint platform postpaid phone customer billings as it approximates the expected cash collections, including installment plan billings and lease revenue, per postpaid phone user each month.
Free Cash Flow is the cash provided by operating activities less the cash used in investing activities other than short-term investments, including changes in restricted cash, if any, and excluding the sale-leaseback of devices. Adjusted Free Cash Flow is Free Cash Flow plus the proceeds from device financings and sales of future lease receivables, net of repayments. We believe that Free Cash Flow and Adjusted Free Cash Flow provide useful information to investors, analysts and our management about the cash generated by our core operations and net proceeds obtained to fund certain leased devices, respectively, after interest and dividends, if any, and our ability to fund scheduled debt maturities and other financing activities, including discretionary refinancing and retirement of debt and purchase or sale of investments.
Net Debt is consolidated debt, including current maturities, less cash and cash equivalents, short-term investments and, if any, restricted cash. We believe that Net Debt provides useful information to investors, analysts and credit rating agencies about the capacity of the company to reduce the debt load and improve its capital structure.
SAFE HARBOR
This release includes “forward-looking statements” within the meaning of the securities laws. The words “may,” “could,” “should,” “estimate,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “target,” “plan”, “outlook,” “providing guidance,” and similar expressions are intended to identify information that is not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to our network, cost reductions, connections growth, and liquidity; and statements expressing general views about future operating results — are forward-looking statements. Forward-looking statements are estimates and projections reflecting management’s judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, the development and deployment of new technologies and services; efficiencies and cost savings of new technologies and services; customer and network usage; connection growth and retention; service, speed, coverage and quality; availability of devices; availability of various financings, including any leasing transactions; the timing of various events and the economic environment. Sprint believes these forward-looking statements are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date when made. Sprint undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our company's historical experience and our present expectations or projections. Factors that might cause such differences include, but are not limited to, those discussed in Sprint Corporation’s Annual Report on Form 10-K for the fiscal year ended March 31, 2016. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.
About Sprint:
Sprint (NYSE:S) is a communications services company that creates more and better ways to connect its customers to the things they care about most. Sprint served 59.5 million connections as of Dec. 31, 2016 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; leading no-contract brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Sprint has been named to the Dow Jones Sustainability Index (DJSI) North America for the past five years. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170131005461/en/
SprintMedia:Dave Tovar, 913-315-1451David.Tovar@sprint.comorInvestors:Jud Henry, 800-259-3755Investor.Relations@sprint.com
1 Year SentinelOne Chart |
1 Month SentinelOne Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions