RESTON, Va., Aug. 6, 2019 /PRNewswire/ -- NII Holdings,
Inc. [NASDAQ: NIHD] today announced its financial results for the
second quarter of 2019. For the quarter, the Company reported a
$5 million loss from continuing
operations and a $12 million loss
from discontinued operations. Nextel Brazil generated adjusted
OIBDA of $12 million, which excludes
the impact of non-cash asset impairments, restructuring charges and
other unusual items. Nextel Brazil's capital expenditures were
$13 million for the quarter.
During the second quarter, the Company contributed capital of
$15.3 million to Nextel Holdings, the
partnership entity that owns Nextel Brazil, and AI Brazil Holdings
contributed $2.7 million. In
addition, in July 2019, to partially
fund a scheduled debt repayment in Brazil, the Company contributed an additional
$23 million of capital to Nextel
Holdings while AI Brazil did not make any additional capital
contributions. As a result, the Company's equity ownership in
Nextel Holdings increased to 72.34% as of July 31, 2019.
On June 27, 2019, the Company's
stockholders approved the sale of NII Brazil Holdings, which owns
the Company's interest in Nextel Holdings, to América Móvil on the
terms and conditions of the Purchase Agreement dated March 18, 2019.
The Company ended the quarter with $65
million of unrestricted cash, excluding $36 million reported in cash and investments held
for sale. In addition, after agreeing to release $3 million to settle an outstanding tax audit in
Mexico, the Company ended the
quarter with $103 million of cash
held in escrow.
"We lowered total cash burn to $22
million this quarter as we are focused on maximizing our
liquidity while we wait for the sale of Nextel Brazil to close,"
stated Dan Freiman, Chief Financial
Officer of NII. "We currently anticipate that the sale will close
in the fourth quarter of 2019."
Other than potential impacts from timing of closing of the sale
of Nextel Brazil and foreign currency exchange rates, the Company
does not expect any material changes in the estimated distributable
value available to NII stockholders. See the proxy statement filed
with the Securities and Exchange Commission on May 6, 2019 for further information, including an
estimated range of distributable values.
Additional details regarding the Company's results, including a
more detailed explanation on local currency operating metrics, are
included in the Company's Quarterly Report on Form 10-Q for the
three months ended June 30, 2019
filed with the Securities and Exchange Commission today. Additional
operational and financial details, including a quarterly earnings
presentation, are also available under the Company's Investor
Relations link at www.nii.com.
About NII Holdings, Inc.
NII Holdings, Inc., a publicly held company based in
Reston, Virginia, is a provider of
mobile communication services for individual consumers who use our
services to meet both professional and personal needs in
Brazil. NII Holdings, operating
under the Nextel brand, offers fully integrated wireless
communication tools with digital cellular voice services, data
services, international voice and data roaming services and other
value-added services. Visit NII Holdings' website at
www.nii.com.
Visit NII Holdings' news room for news and to access our
market's news center: nii.com/newsroom.
Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995. This news release includes
"forward-looking statements" within the meaning of the securities
laws. The statements in this news release regarding the expected
completion, timing and effects of our proposed sale of Nextel
Brazil and potential distributions to our stockholders upon
liquidation and dissolution, as well as our business and economic
outlook, future performance and guidance, as well as other
statements that are not historical facts, are forward-looking
statements. Forward-looking statements are estimates and
projections reflecting management's judgment based on currently
available information and involve a number of risks and
uncertainties that could cause actual results to differ materially
from those suggested by the forward-looking statements. With
respect to these forward-looking statements, management has made
assumptions regarding, among other things, the proposed sale of
Nextel Brazil; the effects and timing of the proposed transaction;
our existing and future costs, expenses, claims and other
liabilities, and the impact of these matters on our liquidation and
dissolution; the Company's ability to fund the business and meet
its business plans; customer growth and retention; pricing; network
usage; operating costs; the timing of various events; AI Brazil
Holdings' minority ownership in Nextel Brazil; the economic and
regulatory environment; and the foreign currency exchange rates
that will prevail in 2019. Future performance cannot be assured and
actual results may differ materially from those in the
forward-looking statements. Some factors that could cause actual
results to differ include the risks and uncertainties relating to:
the proposed sale of Nextel Brazil, including the occurrence of any
event, change or other circumstance that could give rise to the
termination of the purchase agreement; the amount of the costs,
fees, expenses and charges related to the sale of Nextel Brazil, or
the impact of any adjustments to the purchase price; changes in
foreign currency exchange rates; the effect the pending sale of
Nextel Brazil has on our management team, customer relationships,
operating results and business generally, including the ability to
retain key employees; the cost and outcome of any legal proceedings
that may be instituted against us and others following the
announcement of the sale of Nextel Brazil; the timing and amount of
cash and other assets available for distribution to our
stockholders upon our dissolution and winding up; the impact of
liquidity constraints, including the inability to access escrowed
funds when expected; the impact of more intense competitive
conditions and changes in economic conditions in Brazil; the performance of the Company's
network; the Company's ability to provide services that customers
want or need; the Company's ability to execute its business
plan; and the additional risks and uncertainties that are described
in NII Holdings' Annual Report on Form 10-K for the year ended
December 31, 2018, as well as in
other reports filed from time to time by NII Holdings with the
Securities and Exchange Commission. This press release speaks only
as of its date, and the Company disclaims any duty to update the
information herein.
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SOURCE NII Holdings, Inc.
