Delaware | 1-34196 | 56-2408571 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1475 120th Avenue Northeast, Bellevue, WA | 98005 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description of Exhibit | |
99.1 | Earnings Press Release dated February 12, 2013 |
CLEARWIRE CORPORATION | ||||||
Dated: February 12, 2013 | By: | /s/ Hope F. Cochran | ||||
Hope F. Cochran Chief Financial Officer |
• | Full Year Revenues of $1.26 Billion, Up 1%; Full Year Retail Revenues Up 5% to $795.6 Million |
• | Total Ending Subscribers of 9.6 Million, Down 8% Year Over Year From 10.4 Million |
• | 2012 Adjusted EBITDA Loss Improved by $157.0 Million Year Over Year to $(156.9) Million |
CLEARWIRE CORPORATION | ||||||||||||||||
SUMMARY FINANCIAL AND OPERATING DATA FROM CONTINUING OPERATIONS | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended | ||||||||||||||||
December 31, 2012 | September 30, 2012 | June 30, 2012 | December 31, 2011 | |||||||||||||
REVENUES: | ||||||||||||||||
Retail revenue | $ | 194,451 | $ | 197,215 | $ | 199,156 | $ | 197,640 | ||||||||
Wholesale revenue | 116,590 | 116,498 | 117,560 | 164,082 | ||||||||||||
Other revenue | 200 | 169 | 216 | 148 | ||||||||||||
Total revenues | 311,241 | 313,882 | 316,932 | 361,870 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Cost of goods and services and network costs (exclusive of items shown separately below) | 208,322 | 211,540 | 224,426 | 293,999 | ||||||||||||
Selling, general and administrative expense | 138,489 | 139,365 | 137,693 | 128,502 | ||||||||||||
Depreciation and amortization | 194,873 | 210,781 | 184,566 | 169,962 | ||||||||||||
Spectrum lease expense | 83,387 | 82,513 | 81,190 | 79,556 | ||||||||||||
Loss from abandonment of network and other assets | (1,099 | ) | 2,588 | 317 | 123,000 | |||||||||||
Total operating expenses | 623,972 | 646,787 | 628,192 | 795,019 | ||||||||||||
OPERATING LOSS | (312,731 | ) | (332,905 | ) | (311,260 | ) | (433,149 | ) | ||||||||
LESS NON-CASH ITEMS: | ||||||||||||||||
Non-cash expenses | 70,041 | 67,310 | 77,893 | 156,308 | ||||||||||||
Non-cash write-downs | 1,805 | 16,551 | 14,369 | 129,358 | ||||||||||||
Depreciation and amortization | 194,873 | 210,781 | 184,566 | 169,962 | ||||||||||||
Total non-cash items | 266,719 | 294,642 | 276,828 | 455,628 | ||||||||||||
Adjusted EBITDA | $ | (46,012 | ) | $ | (38,263 | ) | $ | (34,432 | ) | $ | 22,479 | |||||
Adjusted EBITDA margin | (15 | %) | (12 | %) | (11 | %) | 6 | % | ||||||||
KEY OPERATING METRICS (k for '000's, MM for '000,000's) | ||||||||||||||||
Total net subscriber additions | (906 | )k | (468 | )k | (41 | )k | 873 | k | ||||||||
Wholesale | (915 | )k | (489 | )k | (34 | )k | 904 | k | ||||||||
Retail | 9 | k | 21 | k | (8 | )k | (31 | )k | ||||||||
Total subscribers | 9,581 | k | 10,488 | k | 10,957 | k | 10,414 | k | ||||||||
Wholesale (1) | 8,220 | k | 9,136 | k | 9,625 | k | 9,122 | k | ||||||||
Retail | 1,361 | k | 1,353 | k | 1,333 | k | 1,292 | k | ||||||||
Retail ARPU | $44.10 | $45.06 | $46.12 | $46.69 | ||||||||||||
Churn | ||||||||||||||||
Wholesale | 7.3 | % | 5.4 | % | 3.6 | % | 2.9 | % | ||||||||
Retail | 5.0 | % | 5.1 | % | 4.4 | % | 3.9 | % | ||||||||
Retail CPGA | $155 | $191 | $226 | $259 | ||||||||||||
Capital expenditures | $102MM | $34MM | $24MM | $23MM | ||||||||||||
Domestic 4G covered POPS | 135 | MM | 133 | MM | 134 | MM | 132 | MM | ||||||||
Cash, cash equivalents and investments | $869MM | $1,184MM | $1,210MM | $1,108MM | ||||||||||||
(1) Includes non-launched markets. Based on the terms of the November 2011 Amended MVNO Agreement between Clearwire and Sprint, which provides for unlimited WiMAX service to Sprint retail customers in exchange for fixed payments in 2012 and 2013, fluctuations in the wholesale subscriber base will not necessarily correlate to wholesale revenue. |
CLEARWIRE CORPORATION | |||||||||
SUMMARY FINANCIAL AND OPERATING DATA FROM CONTINUING OPERATIONS | |||||||||
(In thousands) | |||||||||
(Unaudited) | |||||||||
Year ended | |||||||||
December 31, 2012 | December 31, 2011 | ||||||||
REVENUES: | |||||||||
Retail revenue | $ | 795,632 | $ | 758,254 | |||||
Wholesale revenue | 468,469 | 493,661 | |||||||
Other revenue | 593 | 1,551 | |||||||
Total revenues | 1,264,694 | 1,253,466 | |||||||
OPERATING EXPENSES: | |||||||||
Cost of goods and services and network costs (exclusive of items shown separately below) | 908,078 | 1,249,966 | |||||||
Selling, general and administrative expense | 558,202 | 698,067 | |||||||
Depreciation and amortization | 768,193 | 687,636 | |||||||
Spectrum lease expense | 326,798 | 308,693 | |||||||
Loss from abandonment of network and other assets | 82,206 | 700,341 | |||||||
Total operating expenses | 2,643,477 | 3,644,703 | |||||||
OPERATING LOSS | (1,378,783 | ) | (2,391,237 | ) | |||||
LESS NON-CASH ITEMS: | |||||||||
Non-cash expenses | 281,908 | 423,260 | |||||||
Non-cash write-downs | 171,781 | 966,441 | |||||||
Depreciation and amortization | 768,193 | 687,636 | |||||||
Total non-cash items | 1,221,882 | 2,077,337 | |||||||
Adjusted EBITDA | $ | (156,901 | ) | $ | (313,900 | ) | |||
Adjusted EBITDA margin | (12 | %) | (25 | %) | |||||
KEY OPERATING METRICS (k for '000's, MM for '000,000's) | |||||||||
Total net subscriber additions | (830 | )k | 6,069k | ||||||
Wholesale | (901 | )k | 5,876k | ||||||
Retail | 71 | k | 193k | ||||||
Total subscribers | 9,581 | k | 10,414k | ||||||
Wholesale (1) | 8,220 | k | 9,122k | ||||||
Retail | 1,361 | k | 1,292k | ||||||
Retail ARPU | $45.51 | $47.04 | |||||||
Churn | |||||||||
Wholesale | 4.8 | % | 1.9 | % | |||||
Retail | 4.6 | % | 3.8 | % | |||||
Retail CPGA | $201 | $292 | |||||||
Capital expenditures | $182MM | $226MM | |||||||
Domestic 4G covered POPS | 135 | MM | 132MM | ||||||
Cash, cash equivalents and investments | $869MM | $1,108MM | |||||||
(1) Includes non-launched markets. Based on the terms of the November 2011 Amended MVNO Agreement between Clearwire and Sprint, which provides for unlimited WiMAX service to Sprint retail customers in exchange for fixed payments in 2012 and 2013, fluctuations in the wholesale subscriber base will not necessarily correlate to wholesale revenue. |
• | Our proposed merger with Sprint is subject to certain regulatory conditions that may not be satisfied on a timely basis, or at all, and is also conditioned on the consummation of the Sprint-Softbank transaction. If the merger with Sprint fails because it is not adopted by our shareholders, then under certain circumstances Sprint may gain significant control over us by increasing its majority stake in us pursuant to the terms of an agreement with other shareholders. Additionally, failure to complete the proposed merger could negatively impact our business and the market price of our Class A Common Stock, and substantial doubt may arise regarding our ability to continue as a going concern. |
• | We have a history of operating losses and we expect to continue to realize significant net losses for the foreseeable future. |
• | Our business has become increasingly dependent on our wholesale partners, and Sprint in particular. Additionally, our current business plans depend on our ability to attract new wholesale partners with substantial requirements for additional data capacity, which is subject to a number of risks and uncertainties. If we do not receive the amount of revenues we expect from existing wholesale partners or if we are unable to enter into new agreements with additional wholesale partners for significant new wholesale commitments in a timely manner, our business prospects, results of operations and financial condition could be adversely affected, or we could be forced to consider all available alternatives, including financial restructuring. |
• | Sprint owns a majority of our common shares, is our largest shareholder, and may have, or may develop in the future, interests that may diverge from other stockholders. |
• | If the proposed merger with Sprint fails to close for any reason, we believe that we will require substantial additional capital to fund our business beyond the next twelve months and to further develop our network; such capital may not be available on acceptable terms or at all. If the merger fails to close and the funding under our Note Purchase Agreement with Sprint was no longer available, we would have to significantly curtail our LTE network build plan to conserve cash and meet our obligations during 2013. Additionally, if the proposed merger with Sprint fails to close and we are unable to obtain sufficient additional capital, or we fail to generate sufficient revenue from our businesses to meet our ongoing |
• | We are in the early stages of deploying LTE on our wireless broadband network, alongside mobile WiMAX, to remain competitive and to generate sufficient revenues for our business; we will incur significant costs to deploy such technology. Additionally, LTE technology, or other alternative technologies that we may consider, may not perform as we expect on our network and deploying such technologies would result in additional risks to the company, including uncertainty regarding our ability to successfully add a new technology to our current network and to operate dual technology networks without disruptions to customer service, as well as our ability to generate new wholesale customers for the new network. |
• | We currently depend on our commercial partners to develop and deliver the equipment for our legacy and mobile WiMAX networks, and are dependent on commercial partners to deliver equipment and devices for our planned LTE network as well. |
• | Many of our competitors for our retail business are better established and have significantly greater resources, and may subsidize their competitive offerings with other products and services. |
• | Our substantial indebtedness and restrictive debt covenants could limit our financing options and liquidity position and may limit our ability to grow our business. Further, unless we are able to secure the required shareholder approvals to increase the number of authorized shares under our Certificate of Incorporation, we may not have enough authorized, but unissued shares available to raise sufficient additional capital through an equity financing. |
• | Future sales of large blocks of our common stock may adversely impact our stock price. |
CLEARWIRE CORPORATION AND SUBSIDIARIES | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(In thousands, except par value) | |||||||
(Unaudited) | |||||||
December 31, 2012 | December 31, 2011 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 193,445 | $ | 891,929 | |||
Short-term investments | 675,112 | 215,655 | |||||
Restricted cash | 1,653 | 1,000 | |||||
Accounts receivable, net of allowance of $3,145 and $5,542 | 22,769 | 83,660 | |||||
Inventory | 10,940 | 23,832 | |||||
Prepaids and other assets | 83,769 | 71,083 | |||||
Total current assets | 987,688 | 1,287,159 | |||||
Property, plant and equipment, net | 2,259,004 | 3,014,277 | |||||
Restricted cash | 3,709 | 7,619 | |||||
Spectrum licenses, net | 4,249,621 | 4,298,254 | |||||
Other intangible assets, net | 24,660 | 40,850 | |||||
Other assets | 141,107 | 157,797 | |||||
Assets of discontinued operations | — | 36,696 | |||||
Total assets | $ | 7,665,789 | $ | 8,842,652 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 177,855 | $ | 157,172 | |||
Other current liabilities | 227,610 | 122,756 | |||||
Total current liabilities | 405,465 | 279,928 | |||||
Long-term debt, net | 4,271,357 | 4,019,605 | |||||
Deferred tax liabilities, net | 143,992 | 152,182 | |||||
Other long-term liabilities | 963,353 | 719,703 | |||||
Liabilities of discontinued operations | — | 25,196 | |||||
Total liabilities | 5,784,167 | 5,196,614 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Class A common stock, par value $0.0001, 2,000,000 shares authorized; 691,315 and 452,215 shares outstanding | 69 | 45 | |||||
Class B common stock, par value $0.0001, 1,400,000 shares authorized; 773,733 and 839,703 shares outstanding | 77 | 83 | |||||
Additional paid-in capital | 3,158,244 | 2,714,634 | |||||
Accumulated other comprehensive (loss) income | (6 | ) | 2,793 | ||||
Accumulated deficit | (2,346,393 | ) | (1,617,826 | ) | |||
Total Clearwire Corporation stockholders’ equity | 811,991 | 1,099,729 | |||||
Non-controlling interests | 1,069,631 | 2,546,309 | |||||
Total stockholders’ equity | 1,881,622 | 3,646,038 | |||||
Total liabilities and stockholders’ equity | $ | 7,665,789 | $ | 8,842,652 | |||
CLEARWIRE CORPORATION AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(In thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
Three Months Ended December 31, | ||||||||
2012 | 2011 | |||||||
Revenues | $ | 311,241 | $ | 361,870 | ||||
Operating expenses: | ||||||||
Cost of goods and services and network costs (exclusive of items shown separately below) | 208,322 | 293,999 | ||||||
Selling, general and administrative expense | 138,489 | 128,502 | ||||||
Depreciation and amortization | 194,873 | 169,962 | ||||||
Spectrum lease expense | 83,387 | 79,556 | ||||||
Loss from abandonment of network and other assets | (1,099 | ) | 123,000 | |||||
Total operating expenses | 623,972 | 795,019 | ||||||
Operating loss | (312,731 | ) | (433,149 | ) | ||||
Other income (expense): | ||||||||
Interest income | 543 | 272 | ||||||
Interest expense | (139,077 | ) | (128,859 | ) | ||||
Loss on derivative instruments | (3,539 | ) | (2,919 | ) | ||||
Other income (expense), net | 1,261 | (285 | ) | |||||
Total other expense, net | (140,812 | ) | (131,791 | ) | ||||
Loss from continuing operations before income taxes | (453,543 | ) | (564,940 | ) | ||||
Income tax benefit (provision) | 22,261 | (78,406 | ) | |||||
Net loss from continuing operations | (431,282 | ) | (643,346 | ) | ||||
Less: non-controlling interests in net loss from continuing operations of consolidated subsidiaries | 236,297 | 407,348 | ||||||
Net loss from continuing operations attributable to Clearwire Corporation | (194,985 | ) | (235,998 | ) | ||||
Net loss from discontinued operations attributable to Clearwire Corporation, net of tax | 7,831 | (851 | ) | |||||
Net loss attributable to Clearwire Corporation | $ | (187,154 | ) | $ | (236,849 | ) | ||
Net loss from continuing operations attributable to Clearwire Corporation per Class A Common Share: | ||||||||
Basic | $ | (0.28 | ) | $ | (0.81 | ) | ||
Diluted | $ | (0.30 | ) | $ | (0.81 | ) | ||
Net loss attributable to Clearwire Corporation per Class A Common Share: | ||||||||
Basic | $ | (0.27 | ) | $ | (0.81 | ) | ||
Diluted | $ | (0.29 | ) | $ | (0.81 | ) | ||
Weighted average Class A Common Shares outstanding: | ||||||||
Basic | 689,688 | 291,634 | ||||||
Diluted | 1,464,987 | 291,634 |
CLEARWIRE CORPORATION AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(In thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
Year Ended December 31, | ||||||||
2012 | 2011 | |||||||
Revenues | $ | 1,264,694 | $ | 1,253,466 | ||||
Operating expenses: | ||||||||
Cost of goods and services and network costs (exclusive of items shown separately below) | 908,078 | 1,249,966 | ||||||
Selling, general and administrative expense | 558,202 | 698,067 | ||||||
Depreciation and amortization | 768,193 | 687,636 | ||||||
Spectrum lease expense | 326,798 | 308,693 | ||||||
Loss from abandonment of network and other assets | 82,206 | 700,341 | ||||||
Total operating expenses | 2,643,477 | 3,644,703 | ||||||
Operating loss | (1,378,783 | ) | (2,391,237 | ) | ||||
Other income (expense): | ||||||||
Interest income | 1,895 | 2,335 | ||||||
Interest expense | (553,459 | ) | (505,992 | ) | ||||
Gain on derivative instruments | 1,356 | 145,308 | ||||||
Other income (expense), net | (12,153 | ) | 681 | |||||
Total other expense, net | (562,361 | ) | (357,668 | ) | ||||
Loss from continuing operations before income taxes | (1,941,144 | ) | (2,748,905 | ) | ||||
Income tax benefit (provision) | 197,399 | (106,828 | ) | |||||
Net loss from continuing operations | (1,743,745 | ) | (2,855,733 | ) | ||||
Less: non-controlling interests in net loss from continuing operations of consolidated subsidiaries | 1,182,183 | 2,158,831 | ||||||
Net loss from continuing operations attributable to Clearwire Corporation | (561,562 | ) | (696,902 | ) | ||||
Net loss from discontinued operations attributable to Clearwire Corporation, net of tax | (167,005 | ) | (20,431 | ) | ||||
Net loss attributable to Clearwire Corporation | $ | (728,567 | ) | $ | (717,333 | ) | ||
Net loss from continuing operations attributable to Clearwire Corporation per Class A Common Share: | ||||||||
Basic | $ | (1.01 | ) | $ | (2.70 | ) | ||
Diluted | $ | (1.27 | ) | $ | (2.99 | ) | ||
Net loss attributable to Clearwire Corporation per Class A Common Share: | ||||||||
Basic | $ | (1.31 | ) | $ | (2.78 | ) | ||
Diluted | $ | (1.39 | ) | $ | (3.07 | ) | ||
Weighted average Class A Common Shares outstanding: | ||||||||
Basic | 554,015 | 257,967 | ||||||
Diluted | 1,398,603 | 965,099 |
CLEARWIRE CORPORATION AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
Year Ended December 31, | |||||||
2012 | 2011 | ||||||
Cash flows from operating activities: | |||||||
Net loss from continuing operations | $ | (1,743,745 | ) | $ | (2,855,733 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Deferred income taxes | (199,199 | ) | 105,308 | ||||
Non-cash gain on derivative instruments | (1,356 | ) | (145,308 | ) | |||
Accretion of discount on debt | 41,386 | 40,216 | |||||
Depreciation and amortization | 768,193 | 687,636 | |||||
Amortization of spectrum leases | 54,328 | 53,674 | |||||
Non-cash rent expense | 197,169 | 342,962 | |||||
Loss on property, plant and equipment | 171,780 | 966,441 | |||||
Other operating activities | 42,740 | 27,745 | |||||
Changes in assets and liabilities: | |||||||
Inventory | 11,200 | 15,697 | |||||
Accounts receivable | 50,401 | (54,212 | ) | ||||
Prepaids and other assets | 326 | 22,447 | |||||
Prepaid spectrum licenses | 1,904 | (4,360 | ) | ||||
Deferred revenue | 170,455 | 16,497 | |||||
Accounts payable and other liabilities | (17,090 | ) | (152,180 | ) | |||
Net cash used in operating activities of continuing operations | (451,508 | ) | (933,170 | ) | |||
Net cash provided by (used in) operating activities of discontinued operations | (3,000 | ) | 2,381 | ||||
Net cash used in operating activities | (454,508 | ) | (930,789 | ) | |||
Cash flows from investing activities: | |||||||
Capital expenditures | (112,997 | ) | (405,655 | ) | |||
Purchases of available-for-sale investments | (1,797,787 | ) | (957,883 | ) | |||
Disposition of available-for-sale investments | 1,339,078 | 1,255,176 | |||||
Other investing activities | (655 | ) | 20,229 | ||||
Net cash used in investing activities of continuing operations | (572,361 | ) | (88,133 | ) | |||
Net cash provided by (used in) investing activities of discontinued operations | 1,185 | (3,886 | ) | ||||
Net cash used in investing activities | (571,176 | ) | (92,019 | ) | |||
Cash flows from financing activities: | |||||||
Principal payments on long-term debt | (26,985 | ) | (29,957 | ) | |||
Proceeds from issuance of long-term debt | 300,000 | — | |||||
Debt financing fees | (6,205 | ) | (1,159 | ) | |||
Equity investment by strategic investors | 8 | 331,400 | |||||
Proceeds from issuance of common stock | 58,460 | 387,279 | |||||
Net cash provided by financing activities of continuing operations | 325,278 | 687,563 | |||||
Net cash provided by financing activities of discontinued operations | — | — | |||||
Net cash provided by financing activities | 325,278 | 687,563 | |||||
Effect of foreign currency exchange rates on cash and cash equivalents | 107 | (4,573 | ) | ||||
Net decrease in cash and cash equivalents | (700,299 | ) | (339,818 | ) | |||
Cash and cash equivalents: | |||||||
Beginning of period | 893,744 | 1,233,562 | |||||
End of period | 193,445 | 893,744 | |||||
Less: cash and cash equivalents of discontinued operations at end of period | — | 1,815 | |||||
Cash and cash equivalents of continuing operations at end of period | $ | 193,445 | $ | 891,929 |
Three months ended | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(in thousands) | December 31, 2012 | September 30, 2012 | June 30, 2012 | December 31, 2011 | ||||||||||||
Operating loss | $ | (312,731 | ) | $ | (332,905 | ) | $ | (311,260 | ) | $ | (433,149 | ) | ||||
Non-cash expenses: | ||||||||||||||||
Spectrum lease expense | 36,260 | 39,833 | 32,341 | 37,228 | ||||||||||||
Building and network related expenses* | 25,256 | 18,741 | 38,468 | 113,612 | ||||||||||||
Stock compensation and other* | 8,525 | 8,736 | 7,084 | 5,468 | ||||||||||||
Non-cash expenses | 70,041 | 67,310 | 77,893 | 156,308 | ||||||||||||
Non-cash write-downs: | ||||||||||||||||
Loss from abandonment of network and other assets | (1,099 | ) | 2,588 | 317 | 123,000 | |||||||||||
Network equipment reserves and other write-downs* | 2,904 | 13,963 | 14,052 | 6,358 | ||||||||||||
Non-cash write-downs | 1,805 | 16,551 | 14,369 | 129,358 | ||||||||||||
Depreciation and amortization | 194,873 | 210,781 | 184,566 | 169,962 | ||||||||||||
Adjusted EBITDA | $ | (46,012 | ) | $ | (38,263 | ) | $ | (34,432 | ) | $ | 22,479 | |||||
*Amounts included in COGS and SG&A. |
Year ended | ||||||||
(Unaudited) | ||||||||
(in thousands) | December 31, 2012 | December 31, 2011 | ||||||
Operating loss | $ | (1,378,783 | ) | $ | (2,391,237 | ) | ||
Non-cash expenses: | ||||||||
Spectrum lease expense | 144,849 | 139,340 | ||||||
Building and network related expenses* | 106,648 | 257,296 | ||||||
Stock compensation and other* | 30,411 | 26,624 | ||||||
Non-cash expenses | 281,908 | 423,260 | ||||||
Non-cash write-downs: | ||||||||
Loss from abandonment of network and other assets | 82,206 | 700,341 | ||||||
Network equipment reserves and other write-downs* | 89,575 | 266,100 | ||||||
Non-cash write-downs | 171,781 | 966,441 | ||||||
Depreciation and amortization | 768,193 | 687,636 | ||||||
Adjusted EBITDA | $ | (156,901 | ) | $ | (313,900 | ) | ||
*Amounts included in COGS and SG&A. |
Three months ended | |||||||||||||||
(Unaudited) | |||||||||||||||
(in thousands) | December 31, 2012 | September 30, 2012 | June 30, 2012 | December 31, 2011 | |||||||||||
Total revenues | $ | 311,241 | $ | 313,882 | $ | 316,932 | $ | 361,870 | |||||||
Wholesale revenue | (116,590 | ) | (116,498 | ) | (117,560 | ) | (164,082 | ) | |||||||
Device and other revenue | (15,763 | ) | (15,956 | ) | (14,694 | ) | (14,540 | ) | |||||||
Retail ARPU revenue | $ | 178,888 | $ | 181,428 | $ | 184,678 | $ | 183,248 | |||||||
Average retail customers | 1,352 | 1,342 | 1,335 | 1,308 | |||||||||||
Months in period | 3 | 3 | 3 | 3 | |||||||||||
Retail ARPU | $ | 44.10 | $ | 45.06 | $ | 46.12 | $ | 46.69 | |||||||
Year ended | |||||||
(Unaudited) | |||||||
(in thousands) | December 31, 2012 | December 31, 2011 | |||||
Total revenues | $ | 1,264,694 | $ | 1,253,466 | |||
Wholesale revenue | (468,469 | ) | (493,661 | ) | |||
Device and other revenue | (67,131 | ) | (45,675 | ) | |||
Retail ARPU revenue | $ | 729,094 | $ | 714,130 | |||
Average retail customers | 1,335 | 1,265 | |||||
Months in period | 12 | 12 | |||||
Retail ARPU | $ | 45.51 | $ | 47.04 | |||
Three months ended | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(in thousands) | December 31, 2012 | September 30, 2012 | June 30, 2012 | December 31, 2011 | ||||||||||||
Selling, general and administrative | $ | 138,489 | $ | 139,365 | $ | 137,693 | $ | 128,502 | ||||||||
Less: G&A and other | (113,103 | ) | (104,720 | ) | (100,409 | ) | (97,227 | ) | ||||||||
Selling expense | 25,386 | 34,645 | 37,284 | 31,275 | ||||||||||||
Plus: Equipment COGS | 16,300 | 17,707 | 8,959 | 9,875 | ||||||||||||
Less: Equipment revenue | (9,042 | ) | (9,396 | ) | (8,269 | ) | (9,111 | ) | ||||||||
Total retail CPGA Expense | $ | 32,644 | $ | 42,956 | $ | 37,974 | $ | 32,039 | ||||||||
Total gross adds | 211 | 225 | 168 | 124 | ||||||||||||
Total retail CPGA | $ | 155 | $ | 191 | $ | 226 | $ | 259 |
Year ended | ||||||||
(Unaudited) | ||||||||
(in thousands) | December 31, 2012 | December 31, 2011 | ||||||
Selling, general and administrative | $ | 558,202 | $ | 698,067 | ||||
Less: G&A and other | (413,640 | ) | (473,696 | ) | ||||
Selling expense | 144,562 | 224,371 | ||||||
Plus: Equipment COGS | 57,586 | 24,113 | ||||||
Less: Equipment revenue | (41,062 | ) | (21,952 | ) | ||||
Total retail CPGA Expense | $ | 161,086 | $ | 226,532 | ||||
Total gross adds | 800 | 776 | ||||||
Total retail CPGA | $ | 201 | $ | 292 |