Nextel Reports $1.1 Billion in Revenues for Q1
Consolidated revenue for the first quarter of 2000 grew 63% to $1.08 billion when compared with $664 million generated during the first quarter of 1999. Domestic revenue was $1.03 billion for the quarter, while international revenue was $47 million. Nextel's average monthly revenue per domestic subscriber unit remained among the best in the wireless industry at approximately $72 in the first quarter. The monthly churn rate for the first quarter was approximately 2% for domestic customers, one of the best levels in the wireless industry.
Nextel continued improvement in operating cash flow (earnings before interest, taxes, depreciation, and amortization) during the quarter. Operating cash flow from consolidated operations was $228 million in the first quarter–more than six times higher than 1999's first-quarter cash flow of $35 million. In the first quarter of 2000, domestic operations produced $262 million in operating cash flow, a 220% improvement over 1999's first quarter domestic operating cash flow of $82 million. International operations produced a cash flow loss of $34 million in the first quarter of 2000, a 28% improvement over 1999's first quarter loss of $47 million.
The consolidated first quarter 2000 net loss per share before one-time charges was $0.83 per share–a 50% improvement when compared with the $1.66 per share loss in the first quarter of 1999. In the first quarter of 2000, the consolidated net loss attributable to common stockholders was $435 million, or $1.17 per share and includes one-time charges of $127 million, or $0.34 per share for the early retirement of debt and for the conversion of debt securities.
The per-share amounts mentioned above are based upon a weighted average number of shares outstanding of 370,759,000 and do not reflect the effect of the proposed 2-for-1 stock split, which Nextel announced on Feb. 22, 2000. Shareholders are scheduled to vote on an increase in authorized shares required to accomplish the stock split at the upcoming shareholder meeting on May 25th.
Domestic capital expenditures were $661 million in the first quarter of 2000 as compared with $684 million in the fourth quarter of 1999. International capital expenditures were $116 million in the first quarter as compared with $50 million in the fourth quarter of 1999.
Total domestic system minutes of use on the Nextel National Network increased 85% during the quarter when compared with the same period in 1999 to approximately 6.3 billion total system minutes of use in the first quarter 2000. During the first quarter, approximately 11 million Internet text messages were sent on the Nextel National Network, representing a 280% increase over last year's first-quarter Internet text messages. Nextel ended the first quarter with approximately 1.9 million data-capable handsets in service.
Edited by Ellen Jensen