Subject: [NEXTEL-1] NII Holdings Announces Strong Performance For The First Quarter Of 2003.html

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Date: Wed, 30 Apr 2003 02:04:39 -0400

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Press Release

Source:
NII Holdings, Inc.

NII Holdings Announces Strong Performance For The First Quarter Of 2003
Tuesday April 29, 6:19 pm ET

* Consolidated First Quarter Revenues Of $203 Million And Consolidated EBITDA Of $57 Million * Consolidated Net Income Of $9 Million Or $0.47 Per Basic Share * $50 Million In Cash Raised During The First Quarter From Tower Sale- Leaseback Transactions In Mexico And Brazil

RESTON, Va., April 29 /PRNewswire-FirstCall/ --
NII Holdings, Inc. (Nasdaq: NIHD - News) today announced its consolidated financial
results for the first quarter of 2003, including consolidated net income of
$9 million, or $0.47 per basic share, compared to a net loss of $155 million
in the first quarter of 2002. Consolidated operating revenues were
$203 million, a 4% improvement over the $195 million reported during the first
quarter of 2002. The Company also reported consolidated operating income
before depreciation and amortization (EBITDA) of $57 million during the first
quarter, a 177% increase from the first quarter of 2002, and consolidated
operating income of $39 million, a $36 million increase from the first quarter
of 2002. As of March 31, 2003, NII Holdings reported approximately 1.29
million subscribers and consolidated cash balances over $293 million,
including $8 million of restricted cash.

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"Through increasing high quality net subscriber additions and continued
improvement in quarterly operating cash flow, we have successfully added the
key ingredient of profitable growth to our continued focus on free cash flow
generation and liquidity," said Steve Shindler, NII Holdings' Chairman and
CEO. "These strong results are based on the premium value that Latin American
corporations and businesses ascribe to our differentiated offering. Our
mobile communications services help their bottom line by enhancing their
productivity beyond the capabilities of traditional cellular-only services,"
he added.
Nextel Mexico, NII's largest subsidiary, reported $50 million in first
quarter 2003 EBITDA and $34 million of operating income. These amounts
represent significant improvements over first quarter 2002 EBITDA of
$27 million and operating income of $16 million. In addition, Nextel Mexico
reported about 35,400 net subscriber additions during the first quarter of
2003, increasing its total subscriber base to about 552,800 units as of March
31, 2003. Each of NII's operating companies in Brazil, Argentina and Peru also
reported positive EBITDA and operating income during the first quarter of
2003.
During the first quarter of 2003, the Company closed on several
communication tower sale-leasebacks in Mexico and Brazil under its previously
announced agreement with American Tower Corporation raising $50 million in
local currency-based proceeds. During the second quarter of 2003, NII has
continued to close on additional tower sale-leasebacks under this agreement.
Under U.S. GAAP, the sale-leaseback transactions are accounted for as
financing transactions. As a result, these transactions are classified as
long-term debt on the Company's balance sheet. The Company's total long-term
debt as of March 31, 2003 was $487 million, including $49 million in tower
financing obligations.
"During the first quarter, NII improved on its liquidity position as a
result of tower sale-leaseback financing transactions, progress in building
out its network in Baja California and healthy performance in its operating
markets. NII was able to continue improving its consolidated EBITDA margin
from 11% in 2002 to 28% in 2003. In addition to positive EBITDA and operating
income, all of our operating companies were also profitable in the first
quarter of 2003," said Byron Siliezar, NII's Vice President and Chief
Financial Officer.
Consolidated capital expenditures, including capitalized interest, were
$64 million during the first quarter of 2003, representing a reduction of $4
million or 6% percent compared to the first quarter of 2002.
In addition to the results prepared in accordance with accounting
principles generally accepted in the United States (GAAP) provided throughout
this press release, NII has presented consolidated EBITDA which is a non-GAAP
financial measure and should be considered in addition to, but not as a
substitute for, the information prepared in accordance with GAAP. A
reconciliation from GAAP results to this non-GAAP financial measure is
provided in the notes to the attached financial table. To view this and other
reconciliations of non-GAAP financial measures that the company uses and
information about how to access the conference call discussing NII's first
quarter results, visit the investor relations link at http://www.nii.com .
About NII Holdings, Inc.
NII Holdings, Inc., a publicly held company based in Reston, Va., is a
leading provider of mobile communications for business customers in Latin
America. NII Holdings, Inc. has operations in Argentina, Brazil, Chile,
Mexico and Peru, offering a fully integrated wireless communications tool with
digital cellular service, text/numeric paging, wireless Internet access and
Nextel Direct Connect®, a digital two-way radio feature. NII Holdings, Inc.
trades on the Nasdaq market under the symbol NIHD. Visit the Company's website
at http://www.nii.com.
Nextel, the Nextel logo, Nextel Online, Nextel Business Networks and
Nextel Direct Connect are trademarks and/or service marks of Nextel
Communications, Inc.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995. A number of the matters and subject areas discussed in this press
release that are not historical or current facts deal with potential future
circumstances and developments. The discussion of such matters and subject
areas is qualified by the inherent risks and uncertainties surrounding future
expectations generally, and also may materially differ from NII Holdings'
actual future experience involving any one or more of such matters and subject
areas. NII Holdings has attempted to identify, in context, certain of the
factors that it currently believes may cause actual future experience and
results to differ from NII Holdings' current expectations regarding the
relevant matter or subject area. Such risks and uncertainties include the
economic conditions in our targeted markets, performance of our technologies,
timely development and delivery of new technologies, competitive conditions,
market acceptance of our services, access to sufficient capital to meet
operating and financing needs and those that are described from time to time
in NII Holdings' reports filed with the Securities and Exchange Commission.
This press release speaks only as of its date, and NII Holdings disclaims any
duty to update the information herein.

NII HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (1)
FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002
(in millions, except per share amounts)

Successor Predecessor
Company Company
2003 2002

Service revenues $194 $187
Handset and accessory revenues 9 8
203 195
Operating expenses
Cost of revenues (exclusive of
depreciation shown separately below) 74 78
Selling, general and administrative 72 91
Restructuring and other charges -- 5
Depreciation 9 15
Amortization 9 3
164 192
Operating income 39 3
Interest expense (14) (80)
Interest income 2 2
Foreign currency transaction losses, net (11) (74)
Other expense, net (2) (2)
Income (loss) from continuing operations before
income tax provision 14 (151)
Income tax provision (5) (6)
Income (loss) from continuing operations 9 (157)
Discontinued operations
Income from operations of Nextel Philippines -- 2
Net income (loss) $9 $(155)
Net income (loss) from continuing operations per
common share, basic $0.47 $(0.58)
Net income from discontinued operations per
common share, basic -- 0.01
Net income (loss) per common share, basic $0.47 $(0.57)
Net income (loss) from continuing operations per
common share, diluted $0.44 $(0.58)
Net income from discontinued operations per
common share, diluted -- 0.01
Net income (loss) per common share, diluted $0.44 $(0.57)
Weighted average number of common shares
outstanding, basic 20 270
Weighted average number of common shares
outstanding, diluted 21 270

(1) As a result of the application of fresh-start accounting rules under
SOP 90-7 in 2002 and other events related to the Company's
reorganization, the Successor Company's financial statements for the
three months ended March 31, 2003 are not fully comparable to the
Predecessor Company's financial statements for the three months ended
March 31, 2002.

EBITDA and EBITDA Margin Reconciliations
For the Three Months Ended March 31, 2003 and 2002

EBITDA represents operating income before depreciation and amortization
expense. EBITDA is not a measurement under accounting principles generally
accepted in the United States and may not be similar to EBITDA measures of
other companies. We believe that EBITDA provides useful information because it
is an indicator of operating performance, especially in a capital intensive
industry, such as ours, since it excludes items that are not directly
attributable to ongoing business operations. EBITDA can be reconciled to our
consolidated statements of operations as follows (dollars in millions):

Successor Predecessor
Company Company
2003 2002

Operating income $39 $3
Depreciation 9 15
Amortization 9 3
EBITDA $57 $21

Successor Predecessor
Company Company
2003 2002

EBITDA margin (EBITDA divided by operating
revenues) 28% 11%
Operating margin (operating income divided by
operating revenues) 19% 2%

Contacts:
Investor Relations: Tim Perrott
(703) 390-5113
[email-masked]

Media Relations: Claudia E. Restrepo
(786) 251-7020
[email-masked]

Source:
NII Holdings, Inc.
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