Free Cash Flow* of almost $800 million for the quarter Cash balance of $4.5 billion; total liquidity of $5.9 billion Stabilized consolidated Adjusted OIBDA* and Adjusted OIBDA margin* sequentially Driven by success of Boost Monthly Unlimited and wholesale, achieved the best sequential improvement in total gross additions, and loss of 182,000 total net subscribers represents a sequential improvement of over 1 million and best sequential net change in total subscribers in Sprint Nextel history The company's first quarter earnings conference call will be held at 8 a.m. EDT today. Participants may dial 866-763-0020 in the US or Canada (706-902-1194 internationally) and provide the following ID: 89264535 or may listen via the Internet at www.sprint.com/investor.
OVERLAND PARK, Kan.-- Sprint Nextel Corp. (NYSE: S) reported first quarter 2009 financial results. The company generated $796 million of Free Cash Flow* in the quarter. As of March 31, 2009, the company had $4.5 billion of cash and cash equivalents and $1.4 billion of borrowing capacity available under its revolving bank credit facility, for total liquidity of $5.9 billion.
The company reported consolidated net operating revenues of $8.2 billion and a diluted loss per share of 21 cents. The company recorded $327 million of severance and exit costs, primarily related to the reduction in work force announced in January 2009. Adjusted EPS before Amortization* was 3 cents for the quarter.
“In the first quarter, we again made progress in our major areas of focus: financial stability, improving the customer experience and reinvigorating the brand,” said Dan Hesse, Sprint Nextel CEO. “We achieved the largest sequential improvement in overall gross adds and net adds in Sprint Nextel history, reduced churn versus the prior year, and we generated more than enough cash in this quarter alone to pay all of our 2009 debt maturities.
“In customer care, our consecutive monthly improvement in first call resolution and customer satisfaction metrics has now extended to 15 months. This occurred even as we reduced cost by discontinuing the use of another six vendor call centers in the first quarter, bringing the reduction in call centers to 17 over the past 12 months. We performed well in the J.D. Power 2009 Wireless Call Quality Performance Study, including a tie for first place in the Western region, and achieved other third-party confirmations of our solid network performance,” Hesse said.
In the first quarter, the company announced it will be the exclusive carrier partner for the Palm® Pre™, a compelling wireless device for both consumer and business customers.
Sprint 4G WiMAX service is currently available in Baltimore and is expected to be available in Portland this summer. In the first quarter, the company announced it also plans to launch WiMAX service in Atlanta, Las Vegas, Chicago, Charlotte, Dallas/Ft. Worth, Honolulu, Philadelphia and Seattle in 2009, and expects 2010 launch cities to include New York, Boston, Washington, D.C., Houston and the San Francisco Bay Area.
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