RESTON, Va.--(BUSINESS WIRE)--Oct. 26, 2005--Sprint Nextel Corp. (NYSE:S)
Third Quarter Highlights
-- New company off to fast start
-- Strong revenues, profit and cash flow performance
-- Wireless pro forma net adds of 1.3 million push total subs to 45.6 million
-- Substantial progress on merger integration and Local spin
Wireless
-- Pro forma revenues of $8.07 billion increased 12% year-over-year
-- Pro forma Adjusted Operating Income* of $698 million increased 45% year-over-year
-- Pro forma Adjusted OIBDA* of $2.65 billion increased 14% year-over-year
Long Distance
-- Revenues were $1.74 billion, a slight increase from the prior quarter
-- Adjusted Operating Income* was $163 million versus a loss of $17 million in the year-ago period
-- Adjusted OIBDA* was $285 million, an 8% increase sequentially
Local
-- Revenues of $1.67 billion increased 5% year-over-year
-- Adjusted Operating Income* of $459 million increased 5% year-over-year
-- Adjusted OIBDA* was $736 million, an increase of 3% year-over-year
In its first quarterly earnings release, Sprint Nextel Corp. (NYSE:S) today reported third quarter 2005 earnings per share of 23 cents compared to a loss per share of $1.32 in third quarter 2004. Pro forma Adjusted EPS*, which removes the effects of special items, was 25 cents per share compared to 16 cents in the same period a year ago. The current quarter pro forma earnings benefited by about 4 cents per share due to lower depreciation expense in Long Distance following the asset impairment charge recorded in the year-ago period. Pro forma Adjusted EPS* was reduced by 16 cents in third quarter 2005 and 15 cents in third quarter 2004 related to incremental tax-effected net amortization and depreciation expense which has significantly increased from historical reported amounts due to the step up of our customer base in purchase accounting. Excluding these purchase accounting impacts, pro forma Adjusted EPS* was 41 cents per share compared to 31 cents in the same period a year ago.
Pro forma Consolidated revenues of $11.2 billion increased 8% from the year-ago period and pro forma Adjusted OIBDA* of $3.67 billion increased 10%. Pro forma Adjusted Operating Income* of $1.32 billion was up 46%, in part aided by the lower Long Distance depreciation expense. Total pro forma capital expenditures in the third quarter were $1.6 billion.
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