RESTON, Va., Nov. 5, 2019 /PRNewswire/ -- NII Holdings,
Inc. [NASDAQ: NIHD] today announced its financial results for the
third quarter of 2019. For the quarter, the Company reported a
$7 million loss from continuing
operations and a $28 million loss
from discontinued operations. Nextel Brazil generated adjusted
OIBDA of $33 million, which excludes
the impact of non-cash asset impairments, restructuring charges and
other unusual items. Nextel Brazil's capital expenditures were
$12 million for the quarter.
During the third quarter, the Company contributed capital of
$24.3 million to Nextel Holdings, the
partnership entity that owns Nextel Brazil, to partially fund a
scheduled debt repayment under Nextel Brazil's license financing.
AI Brazil did not make any
additional capital contributions. As a result, the Company's equity
ownership in Nextel Holdings increased to 72.43% as of September 30, 2019.
On September 30, 2019, the Company
received the required approval from the ANATEL, Brazil's telecommunications regulatory agency,
for the sale of NII Brazil Holdings, which owns the Company's
interest in Nextel Holdings and indirectly owns Nextel Brazil, to
América Móvil on the terms and conditions of the Purchase Agreement
dated March 18, 2019. In addition, on
September 9, 2019, the Company
received the required approval from CADE, Brazil's national competition regulator. On
October 22, 2019, the Company was
notified that a wireless telecommunications provider in
Brazil filed an appeal challenging
CADE's clearance decision on the sale. The CADE board is reviewing
the objection and is required to rule on the merits of the appeal
by January 26, 2020, which in limited
circumstances could be extended one time for up to 90 days. The
parties to the sale transaction are working to close this appeal as
quickly as possible.
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 Holdings' 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.
The Company ended the quarter with $29
million of unrestricted cash, excluding $52 million reported in cash and investments held
for sale. In addition, the Company ended the quarter with
$103 million of cash held in
escrow.
In October 2019, the Company
agreed to settlement terms with the tax authority in Mexico under which it expects to pay
$15.1 million to close five of eight
open tax audits for certain of Nextel Mexico's subsidiaries,
subject to completion of the amended tax returns. Once these
amended tax returns are accepted by the tax authority, the Company
expects to request the release of an additional $9.3 million from escrow. While the Company does
not expect changes to the settlement terms for these tax audits,
the settlement is not legally binding until the amended tax returns
have been filed and accepted.
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 September 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 pending 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 pending 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's 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 pending 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.
Media Contacts:
NII Holdings, Inc.
12110 Sunset Hills Road, Suite
600
Reston, Virginia 20190
(703) 390-5100
www.nii.com
Investor and Media Relations: Dan Freiman
(703) 547-5209
dan.freiman@nii.com
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SOURCE NII Holdings, Inc.
