Nextel Inc.



Nextel Inc.

Business Summary

Nextel Communications is a provider of wireless communications services whose services include digital wireless mobile telephone service, walkie-talkie features, including its Nextel Direct Connect®, Nextel Nationwide Direct Connectsm and Nextel International Direct Connectsm walkie-talkie features, and wireless data transmission services. As of Dec 31 2004, Co. provided service to over 16.2 million subscribers, which consisted of 15.0 million subscribers of Nextel-branded service and 1.2 million subscribers of Boost Mobile™-branded pre-paid service. Co.'s all-digital packet data network is based on integrated Digital Enhanced Network, or iDEN®, wireless technology provided by Motorola, Inc.

Financial performance

As Reported Annual Balance Sheet

12/31/2002

 

12/31/2001

 

12/31/2000

 

Currency

 

USD

 

USD

 

USD

 

Auditor Status

 

Not Qualified

 

Not Qualified

 

Not Qualified

 

Consolidated

 

Yes

 

Yes

 

Yes

 

Scale

 

Thousands

 

Thousands

 

Thousands

 

 

Cash & cash equivalents

 

1,846,000

 

2,481,000

 

2,609,000

 

 

NII Holdings restricted cash held in escrow

 

-

 

84,000

 

-

 

 

Short-term investments

 

840,000

 

1,236,000

 

2,065,000

 

 

Accounts & notes receivable, net

 

-

 

1,129,000

 

864,000

 

 

Trade receivables

 

1,170,000

 

-

 

-

 

 

Accounts & notes receivable - other

 

34,000

 

-

 

-

 

 

Less allowance for doubtful accounts

 

 

127,000

 

-

 

-

 

 

Total accounts & notes receivable, net

 

 

1,077,000

 

-

 

-

 

 

Due from related parties

 

 

33,000

 

-

 

-

 

 

Handset & accessory inventory

 

 

245,000

 

260,000

 

183,000

 

 

Deferred tax assets-current

 

-

 

-

 

-

 

 

Prepaid expenses & other current assets

 

 

-

 

533,000

 

737,000

 

 

Prepaid expenses

 

 

104,000

 

-

 

-

 

 

Investment in NII holdings

 

 

-

 

-

 

-

 

 

Deferred costs of handset sales & activation

 

 

505,000

 

-

 

-

 

 

Total prepaid expenses & other current assets

 

 

609,000

 

-

 

-

 

 

Total current assets

 

 

4,650,000

 

5,723,000

 

6,458,000

 

 

Marketable equity securities

 

 

-

 

-

 

-

 

 

Marketable debt securities, NII Holdings

 

 

-

 

-

 

-

 

 

Equity method investments, Nextel Partners

 

 

-

 

-

 

-

 

 

Equity method investments, other

 

 

-

 

-

 

-

 

 

Nonmarketable equity securities

 

 

-

 

-

 

-

 

 

Investments

 

 

145,000

 

188,000

 

756,000

 

 

Land

 

 

1,000

 

1,000

 

4,000

 

 

Buildings & improvements

 

 

190,000

 

183,000

 

146,000

 

 

Digital mobile network equipment

 

 

-

 

10,108,000

 

8,555,000

 

 

Network equipment & software

 

 

11,043,000

 

-

 

-

 

 

Non-ntwrk internal use sftwre, office equip

 

 

1,318,000

 

1,204,000

 

-

 

 

Office equipment, furniture & fixtures & oth

 

 

-

 

-

 

1,017,000

 

 

Less accumulated depreciation & amortization

 

 

5,007,000

 

3,667,000

 

2,482,000

 

 

Total before construction in progress

 

 

7,545,000

 

7,829,000

 

7,240,000

 

 

Network asset inventory & constr in progress

 

 

1,373,000

 

1,445,000

 

1,551,000

 

 

Property, plant & equipment, net

 

 

8,918,000

 

9,274,000

 

8,791,000

 

 

Intangible assets, net

 

 

6,607,000

 

6,067,000

 

5,982,000

 

 

Other assets

 

 

1,164,000

 

812,000

 

699,000

 

 

Total assets

 

 

21,484,000

 

22,064,000

 

22,686,000

 

 

Trade payables

 

 

-

 

-

 

-

 

 

Other payables

 

 

-

 

-

 

-

 

 

Accounts payable

 

 

515,000

 

756,000

 

953,000

 

 

Accrued expenses & other

 

 

1,749,000

 

1,470,000

 

1,244,000

 

 

Payroll related

 

 

-

 

-

 

-

 

 

Deferred access revenues

 

 

-

 

-

 

-

 

 

Accrued interest

 

 

-

 

-

 

-

 

 

Accrued telecommunication costs

 

 

-

 

-

 

-

 

 

Deferred gain from sale of towers

 

 

-

 

-

 

-

 

 

Customer deposits

 

 

-

 

-

 

-

 

 

Deferred handset sales & activation fees

 

 

-

 

-

 

-

 

 

Other accrued expenses & other

 

 

-

 

-

 

-

 

 

Total accrued expenses & other curr liabils

 

 

-

 

-

 

-

 

 

Due to related parties

 

 

241,000

 

341,000

 

423,000

 

 

Curr port of long-term debt & cap lse obligs

 

 

251,000

 

145,000

 

102,000

 

 

Debt of NII Holdings, nonrecourse to

 

 

-

 

1,865,000

 

-

 

 

Total current liabilities

 

 

2,756,000

 

4,577,000

 

2,722,000

 

 

Long-term debt

 

 

-

 

13,815,000

 

13,763,000

 

 

Senior notes

 

 

6,247,000

 

-

 

-

 

 

Convertible senior notes

 

 

1,514,000

 

-

 

-

 

 

Bank credit facility

 

 

4,500,000

 

-

 

-

 

 

Other long-term debt

 

 

17,000

 

-

 

-

 

 

Total domestic long-term debt

 

 

12,278,000

 

-

 

-

 

 

Less: Current portion

 

 

199,000

 

-

 

-

 

 

Total long-term debt, net of current portion

 

 

12,079,000

 

-

 

-

 

 

Capital lease & finance obligations

 

 

220,000

 

905,000

 

866,000

 

 

Capital lease obligations

 

 

-

 

-

 

-

 

 

Finance obligation

 

 

-

 

-

 

-

 

 

Total capital lease & finance obligations

 

 

-

 

-

 

-

 

 

Less: current portion

 

 

-

 

-

 

-

 

 

Total capital lease & finance obligations

 

 

-

 

-

 

-

 

 

Deferred income taxes

 

 

1,619,000

 

669,000

 

912,000

 

 

Deferred revenues & other

 

 

949,000

 

566,000

 

514,000

 

 

Deferred gain from sale of towers

 

 

-

 

-

 

-

 

 

Deferred rent

 

 

-

 

-

 

-

 

 

Other liabilities

 

 

-

 

-

 

-

 

 

Total other liabilities

 

 

-

 

-

 

-

 

 

Total liabilities

 

 

17,623,000

 

20,532,000

 

18,777,000

 

 

Zero coupon mandatorily redeemable pfd stock

 

 

1,015,000

 

2,114,000

 

1,881,000

 

 

Convertible preferred stock

 

 

136,000

 

283,000

 

283,000

 

 

Common stock, class A

 

 

1,000

 

1,000

 

1,000

 

 

Paid-in capital

 

 

10,530,000

 

8,581,000

 

8,370,000

 

 

Retained earnings (accumulated deficit)

 

 

(7,793,000)

 

(9,179,000)

 

(6,554,000)

 

 

Treasury stock, at cost

 

 

-

 

-

 

2,000

 

 

Deferred compensation-net

 

 

7,000

 

17,000

 

28,000

 

 

Accumulated other comprehensive income (loss)

 

 

(21,000)

 

(251,000)

 

(42,000)

 

 

Total stockholders' equity

 

 

2,846,000

 

(582,000)

 

2,028,000

 

Annual Income Statement



As Reported Annual Income Statement

12/31/2002

 

12/31/2001

 

12/31/2000

 

Currency

USD

 

USD

 

USD

 

Auditor Status

Not Qualified

 

Not Qualified

 

Not Qualified

 

Consolidated

Yes

 

Yes

 

Yes

 

Scale

Thousands

 

Thousands

 

Thousands

 

 

Service revenues

8,186,000

 

-

 

-

 

 

Handset & accessory revenues

535,000

 

-

 

-

 

 

Total operating revenues

8,721,000

 

7,689,000

 

5,714,000

 

 

Cost of service- exclusive of depr incl below

1,469,000

 

-

 

-

 

 

Cost of revenues

-

 

2,869,000

 

2,172,000

 

 

Cost of handset & accessory revenues

1,047,000

 

-

 

-

 

 

Selling, general & administrative expenses

3,039,000

 

3,020,000

 

2,278,000

 

 

Restructuring & impairment charge

35,000

 

1,769,000

 

-

 

 

Depreciation

1,541,000

 

-

 

-

 

 

Amortization

54,000

 

-

 

-

 

 

Depreciation & amortization

-

 

1,746,000

 

1,265,000

 

 

Total operating expenses

-

 

9,404,000

 

5,715,000

 

 

Operating income (loss)

1,536,000

 

(1,715,000)

 

(1,000)

 

 

Interest expense

1,048,000

 

1,403,000

 

1,245,000

 

 

Interest income

58,000

 

207,000

 

396,000

 

 

Gain (loss) on retirement of debt, net

354,000

 

-

 

-

 

 

Gain on deconsolidation of NII Holdings

1,218,000

 

-

 

-

 

 

Equity in losses of unconsolidated affil, net

(302,000)

 

(95,000)

 

(152,000)

 

 

Foreign currency transaction (losses) gains

-

 

(70,000)

 

-

 

 

Realized gain on sale of investments, net

-

 

47,000

 

275,000

 

 

Reduction in fair value of investments

(37,000)

 

(188,000)

 

-

 

 

Other income (expense), net

(2,000)

 

(12,000)

 

(17,000)

 

 

Total other income (expense)

241,000

 

(1,514,000)

 

(743,000)

 

 

Income (loss) bef income tax prov (benefit)

1,777,000

 

(3,229,000)

 

(744,000)

 

 

Current state income tax provision

5,000

 

-

 

-

 

 

Total current income tax provision

-

 

-

 

-

 

 

Deferred federal income tax provision (benef)

325,000

 

-

 

-

 

 

Deferred state tax income provision

61,000

 

-

 

-

 

 

Total deferred income tax provision (benefit)

-

 

-

 

-

 

 

Income tax benefit (provision)

391,000

 

(135,000)

 

(33,000)

 

 

Income (loss) before extraordinary item

-

 

(3,094,000)

 

(711,000)

 

 

Loss (gain) on early retirement of debt

-

 

469,000

 

(104,000)

 

 

Net income (loss)

1,386,000

 

(2,625,000)

 

(815,000)

 

 

Gain (loss) on retirement of mand redeem pfd

(485,000)

 

-

 

-

 

 

Mandatorily redeemable pfd stock div & accrtn

211,000

 

233,000

 

209,000

 

 

Income (loss) ...