Sprint Reports First Quarter 2013 Results *Operating Income of $29 million, includes accelerated depreciation of approximately $360 million; Adjusted OIBDA* of $1.5 billion up over 25 percent year-over-year, highest year-over-year increase in more than 6 years *Sprint platform wireless service revenue of $7.1 billion is the highest-ever and increased nearly 9 percent year-over-year *Best-ever Sprint platform postpaid ARPU of $63.67 grew nearly 2 percent year-over-year *Sprint platform subscriber base reaches highest-ever level of 53.9 million *Sprint platform postpaid net additions for the 12th consecutive quarter *Postpaid Nextel recapture rate of 46 percent *Highest-ever total prepaid subscribers at 16 million *Strong smartphone sales of 5 million *iPhone^® sales exceed 1.5 million with 43 percent to new customers *86 percent of quarterly Sprint platform postpaid handset sales were smartphones *Network Vision continues to gain momentum *Exceeded target of 12,000 sites on air by the end of the quarter, and currently have more than 13,500 sites on air *Nextel network on track to be shut down at the end of the second quarter The company’s first quarter 2013 earnings conference call will be held at 8 a.m. ET today. Participants may dial 800-938-1120 in the U.S. or Canada (706-634-7849 internationally) and provide the following ID: 29196505 or may listen via the Internet at www.sprint.com/investors. Additional information about results can be found in the “Quarterly Investor Update” posted on our Investor Relations website at www.sprint.com/investors. Business Wire OVERLAND PARK, Kan. -- April 24, 2013 Sprint Nextel Corp. (NYSE: S) today reported operating income of $29 million, and Adjusted OIBDA* of $1.5 billion was the highest in nearly four years even as Sprint made significant investments in the business during the quarter. Sprint reported continued strong growth in the Sprint platform business, reaching highest-ever subscriber base and service revenue levels in the first quarter of 2013. “This is a transformative year for Sprint and we’ve gotten off to a good start,” said Dan Hesse, Sprint CEO. “Record Sprint platform service revenue and subscriber levels fueled our performance. We achieved significant Adjusted OIBDA* growth while investing heavily to improve our network, expanding our 4G LTE footprint and offering customers the best smartphones with truly unlimited data plans.” EPS and Operating Income Improve Operating income for the quarter was $29 million as compared to a loss of $255 million in the year-ago period. Consolidated net service revenues of nearly $8 billion were flat year-over-year as Sprint platform growth offset declines in Nextel platform and Wireline revenues. The company reported a net loss of $643 million and a diluted net loss of $.21 per share for the first quarter of 2013 as compared to a net loss of $863 million and a diluted net loss of $.29 per share in the first quarter of 2012. Adjusted OIBDA* Improves By Over 25 Percent Year-Over-Year Quarterly Adjusted OIBDA* of $1.5 billion was the highest in nearly four years and improved by $311 million as compared to the first quarter of 2012. Adjusted OIBDA* improved year-over-year primarily due to growth in Sprint platform service revenue, lower cost of service and lower SG&A expense, partially offset by lower Nextel revenue. Sprint Platform Achieves Record Revenue, ARPU and Subscribers Sprint platform service revenue reached best-ever levels in the first quarter driven by all-time high postpaid ARPU and subscribers for the Sprint platform. Sprint platform postpaid ARPU grew by more than $1 year-over-year. Postpaid subscriber growth on the platform continued to benefit from better than expected recapture rates of Nextel customers as well as improved postpaid churn. Additionally, all three of the Sprint platform prepaid brands achieved net additions in the quarter and each reached highest-ever subscriber levels. Unlimited Data and Iconic Smartphones Continue to Drive Growth Eighty-six percent of quarterly Sprint platform postpaid handset sales were smartphones, including more than 1.5 million iPhones sold during the quarter. Forty-three percent of iPhone sales were to new customers, a rate that continues to outperform larger competitors. Sprint continued to enhance its smartphone portfolio – launching HTC One^® earlier this month and announcing plans to offer Samsung Galaxy S^® 4 in the next few weeks as well as BlackBerry^® Q10 and two Windows 8 phones later this year. Network Vision Deployment Gains Momentum Sprint made significant progress on the Network Vision deployment in the quarter, exceeding 12,000 sites on air during the first quarter. To date there are more than 13,500 sites on air compared to more than 8,000 reported on Feb. 7. The number of sites that are either ready for construction, already underway or completed has grown to more than 25,000. As part of Network Vision, Sprint has launched 4G LTE in 88 cities, including Los Angeles, Boston and Charlotte, N.C. since the beginning of the year and expects that 4G LTE will be available in more than 170 additional cities in the coming months. The company remains on track to shut down the Nextel platform at the end of the second quarter. Third Parties Recognize Sprint Leadership For the fourth time in a row, J.D. Power & Associates ranked Sprint highest in satisfaction with the purchase experience among Full Service Wireless Providers. Additionally, Sprint’s Boost Mobile prepaid brand was ranked highest in satisfaction with the purchase experience among Non-Contract Wireless Providers. Sprint also received U.S. Long-Haul Wholesale Carrier Excellence from ATLANTIC-ACM in the Brand, Network Performance, Customer Service and Voice Quality categories. Finally, Sprint collected the North American Mobile & Wireless Green Excellence Award from Frost & Sullivan. Forecast The company expects 2013 Adjusted OIBDA* to be at the high-end of the previous forecast of between $5.2 billion and $5.5 billion excluding the effects of the closing of strategic transactions. Wireless Operating Statistics (Unaudited) Quarter To Date 3/31/13 12/31/12 3/31/12 Net Additions (Losses) (in thousands) Sprint platform: Postpaid ^ (2) 12 401 263 Prepaid ^ (3) 568 525 870 Wholesale and (224 ) (243 ) 785 affiliate Total Sprint 356 683 1,918 platform Nextel platform: Postpaid ^ (2) (572 ) (644 ) (455 ) Prepaid ^ (3) (199 ) (376 ) (381 ) Total Nextel (771 ) (1,020 ) (836 ) platform Total retail (560 ) (243 ) (192 ) postpaid net losses Total retail prepaid 369 149 489 net additions Total wholesale and affiliate net (losses) (224 ) (243 ) 785 additions Total Wireless Net (415 ) (337 ) 1,082 (Losses) Additions End of Period Subscribers (in thousands) Sprint platform: Postpaid ^ (2) 30,257 30,245 28,992 Prepaid ^ (3) 15,701 15,133 13,698 Wholesale and 7,938 8,162 8,003 affiliate Total Sprint 53,896 53,540 50,693 platform Nextel platform: Postpaid ^ (2) 1,060 1,632 3,830 Prepaid ^ (3) 255 454 1,580 Total Nextel 1,315 2,086 5,410 platform Total retail postpaid end of 31,317 31,877 32,822 period subscribers Total retail prepaid end of period 15,956 15,587 15,278 subscribers Total wholesale and affiliate end of period 7,938 8,162 8,003 subscribers Total End of Period 55,211 55,626 56,103 Subscribers Supplemental Data - Connected Devices End of Period Subscribers (in thousands) Retail postpaid 824 813 791 Wholesale and 2,803 2,670 2,217 affiliate Total 3,627 3,483 3,008 Churn Sprint platform: Postpaid 1.84 % 1.98 % 2.00 % Prepaid 3.05 % 3.02 % 2.92 % Nextel platform: Postpaid 7.57 % 5.27 % 2.09 % Prepaid 12.46 % 9.79 % 8.73 % Total retail 2.09 % 2.18 % 2.01 % postpaid churn Total retail prepaid 3.26 % 3.30 % 3.61 % churn ARPU ^(a) Sprint platform: Postpaid $ 63.67 $ 63.04 $ 62.55 Prepaid $ 25.95 $ 26.30 $ 25.64 Nextel platform: Postpaid $ 35.43 $ 37.27 $ 40.94 Prepaid $ 31.75 $ 35.59 $ 35.68 Total retail $ 62.47 $ 61.47 $ 59.88 postpaid ARPU Total retail prepaid $ 26.08 $ 26.69 $ 26.82 ARPU Nextel Platform Subscriber Recaptures Subscribers (in thousands) ^(4): Postpaid 264 333 228 Prepaid 67 188 137 Rate ^(5): Postpaid 46 % 51 % 46 % Prepaid 34 % 50 % 23 % ^(a) ARPU is calculated by dividing service revenue by the sum of the average number of subscribers in the applicable service category. Changes in average monthly service revenue reflect subscribers for either the postpaid or prepaid service category who change rate plans, the level of voice and data usage, the amount of service credits which are offered to subscribers, plus the net effect of average monthly revenue generated by new subscribers and deactivating subscribers. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Millions, except per Share Data) Quarter To Date 3/31/13 12/31/12 3/31/12 Net Operating Revenues $ 8,793 $ 9,005 $ 8,734 Net Operating Expenses Cost of services 2,640 2,659 2,787 Cost of products 2,293 2,993 2,298 Selling, general and 2,336 2,557 2,436 administrative Depreciation and amortization 1,492 1,493 1,666 Other, net 3 8 (198 ) Total net operating expenses 8,764 9,710 8,989 Operating Income (Loss) 29 (705 ) (255 ) Interest expense (432 ) (432 ) (298 ) Equity in losses of unconsolidated investments and (202 ) (140 ) (273 ) other, net Loss before Income Taxes (605 ) (1,277 ) (826 ) Income tax expense (38 ) (44 ) (37 ) Net Loss $ (643 ) $ (1,321 ) $ (863 ) Basic and Diluted Net Loss $ (0.21 ) $ (0.44 ) $ (0.29 ) Per Common Share Weighted Average Common 3,013 3,007 2,999 Shares outstanding Effective Tax Rate -6.3 % -3.4 % -4.5 % NON-GAAP RECONCILIATION - NET LOSS TO ADJUSTED OIBDA* (Unaudited) (Millions) Quarter To Date 3/31/13 12/31/12 3/31/12 Net Loss $ (643 ) $ (1,321 ) $ (863 ) Income tax expense 38 44 37 Loss before Income (605 ) (1,277 ) (826 ) Taxes Equity in losses of unconsolidated investments 202 140 273 and other, net Interest expense 432 432 298 Operating Income (Loss) 29 (705 ) (255 ) Depreciation and 1,492 1,493 1,666 amortization OIBDA* 1,521 788 1,411 Severance and lease 25 (10 ) - exit costs ^(6) Gains from asset dispositions and - - (29 ) exchanges ^ (7) Asset impairments and - 18 18 abandonments ^(8) Spectrum hosting contract termination, - - (170 ) net ^(9) Access costs ^ (10) - - (17 ) Litigation ^(11) (22 ) - - Business combinations - 19 - ^(12) Hurricane Sandy ^(13) - 45 - Adjusted OIBDA* 1,524 860 1,213 Capital expenditures 1,812 1,923 800 ^(1) Adjusted OIBDA* less $ (288 ) $ (1,063 ) $ 413 Capex Adjusted OIBDA Margin* 19.1 % 10.7 % 15.2 % Selected item: Deferred tax asset $ 265 $ 546 $ 348 valuation allowance WIRELESS STATEMENTS OF OPERATIONS (Unaudited) (Millions) Quarter To Date 3/31/13 12/31/12 3/31/12 Net Operating Revenues Service revenue Sprint platform: Postpaid ^(2) $ 5,773 $ 5,674 $ 5,408 Prepaid ^(3) 1,194 1,170 1,016 Wholesale, affiliate and 133 135 103 other Total Sprint platform 7,100 6,979 6,527 Nextel platform: Postpaid ^(2) 143 218 500 Prepaid ^(3) 33 68 188 Total Nextel platform 176 286 688 Equipment revenue 813 1,010 735 Total net operating 8,089 8,275 7,950 revenues Net Operating Expenses Cost of services 2,171 2,210 2,289 Cost of products 2,293 2,993 2,298 Selling, general and 2,230 2,436 2,311 administrative Depreciation and 1,393 1,391 1,564 amortization Other, net - 3 (181 ) Total net operating 8,087 9,033 8,281 expenses Operating Income (Loss) $ 2 $ (758 ) $ (331 ) Supplemental Revenue Data Total retail service $ 7,143 $ 7,130 $ 7,112 revenue Total service revenue $ 7,276 $ 7,265 $ 7,215 WIRELESS NON-GAAP RECONCILIATION (Unaudited) (Millions) Quarter To Date 3/31/13 12/31/12 3/31/12 Operating Income (Loss) $ 2 $ (758 ) $ (331 ) Severance and lease exit 22 (10 ) - costs ^(6) Gains from asset dispositions and exchanges - - (29 ) ^ (7) Asset impairments and - 13 18 abandonments ^(8) Spectrum hosting contract - - (170 ) termination, net ^(9) Litigation ^(11) (22 ) - - Hurricane Sandy ^(13) - 42 - Depreciation and 1,393 1,391 1,564 amortization Adjusted OIBDA* 1,395 678 1,052 Capital expenditures ^(1) 1,706 1,786 710 Adjusted OIBDA* less Capex $ (311 ) $ (1,108 ) $ 342 Adjusted OIBDA Margin* 19.2 % 9.3 % 14.6 % WIRELINE STATEMENTS OF OPERATIONS (Unaudited) (Millions) Quarter To Date 3/31/13 12/31/12 3/31/12 Net Operating Revenues Voice $ 352 $ 385 $ 417 Data 94 96 108 Internet 434 451 453 Other 13 17 20 Total net operating revenues 893 949 998 Net Operating Expenses Costs of services and products 661 671 716 Selling, general and 104 100 121 administrative Depreciation 98 102 100 Other, net 3 5 (17 ) Total net operating expenses 866 878 920 Operating Income $ 27 $ 71 $ 78 WIRELINE NON-GAAP RECONCILIATION (Unaudited) (Millions) Quarter To Date 3/31/13 12/31/12 3/31/12 Operating Income $ 27 $ 71 $ 78 Severance and lease exit costs 3 - - ^(6) Asset impairments and - 5 - abandonments ^(8) Access costs ^ (10) - - (17 ) Hurricane Sandy ^(13) - 3 - Depreciation 98 102 100 Adjusted OIBDA* 128 181 161 Capital expenditures ^(1) 61 58 45 Adjusted OIBDA* less Capex $ 67 $ 123 $ 116 Adjusted OIBDA Margin* 14.3 % 19.1 % 16.1 % CONDENSED CONSOLIDATED CASH FLOW INFORMATION (Unaudited) (Millions) Quarter Ended 3/31/13 12/31/12 3/31/12 Operating Activities Net loss $ (643 ) $ (1,322 ) $ (863 ) Depreciation and 1,492 1,493 1,666 amortization Provision for losses on 83 148 136 accounts receivable Share-based compensation 17 25 17 expense Deferred income taxes 24 67 32 Equity in losses of unconsolidated investments 202 140 273 and other, net Contribution to pension plan - - (92 ) Spectrum hosting contract - - (170 ) termination, net ^ (9) Other working capital (276 ) (322 ) 26 changes, net Other, net 41 (13 ) (47 ) Net cash provided by 940 216 978 operating activities Investing Activities Capital expenditures ^(1) (1,381 ) (1,477 ) (783 ) Expenditures relating to FCC (55 ) (46 ) (56 ) licenses Change in short-term 355 (1,165 ) (327 ) investments, net Investment in Clearwire (80 ) (100 ) (128 ) (including debt securities) Other, net 3 (2 ) (1 ) Net cash used in investing (1,158 ) (2,790 ) (1,295 ) activities Financing Activities Proceeds from debt and 204 5,599 2,000 financings Debt financing costs (10 ) (44 ) (36 ) Repayments of debt and (59 ) (2,283 ) (2 ) capital lease obligations Other, net 7 8 3 Net cash provided by 142 3,280 1,965 financing activities Net (Decrease) Increase in (76 ) 706 1,648 Cash and Cash Equivalents Cash and Cash Equivalents, 6,351 5,645 5,447 beginning of period Cash and Cash Equivalents, $ 6,275 $ 6,351 $ 7,095 end of period RECONCILIATION TO CONSOLIDATED FREE CASH FLOW* (NON-GAAP) (Unaudited) (Millions) Quarter Ended 3/31/13 12/31/12 3/31/12 Net Cash Provided by $ 940 $ 216 $ 978 Operating Activities Capital expenditures ^(1) (1,381 ) (1,477 ) (783 ) Expenditures relating to FCC (55 ) (46 ) (56 ) licenses, net Other investing activities, 3 (2 ) (1 ) net Free Cash Flow* (493 ) (1,309 ) 138 Debt financing costs (10 ) (44 ) (36 ) Increase in debt and other, 145 3,316 1,998 net Investment in Clearwire (80 ) (100 ) (128 ) (including debt securities) Other financing activities, 7 8 3 net Net (Decrease) Increase in Cash, Cash Equivalents and $ (431 ) $ 1,871 $ 1,975 Short-Term Investments CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Millions) 3/31/13 12/31/12 Assets Current assets Cash and cash equivalents $ 6,275 $ 6,351 Short-term investments 1,494 1,849 Accounts and notes receivable, 3,352 3,658 net Device and accessory inventory 843 1,200 Deferred tax assets 1 1 Prepaid expenses and other 804 700 current assets Total current assets 12,769 13,759 Investments and other assets 1,611 1,833 Property, plant and equipment, 14,025 13,607 net Goodwill 359 359 FCC licenses and other 20,722 20,677 Definite-lived intangible 1,271 1,335 assets, net Total $ 50,757 $ 51,570 Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 2,963 $ 3,487 Accrued expenses and other 5,176 5,008 current liabilities Current portion of long-term debt, 428 379 financing and capital lease obligations Total current liabilities 8,567 8,874 Long-term debt, financing and 24,072 23,962 capital lease obligations Deferred tax liabilities 7,131 7,047 Other liabilities 4,513 4,600 Total liabilities 44,283 44,483 Shareholders' equity Common shares 6,026 6,019 Paid-in capital 47,026 47,016 Accumulated deficit (45,459 ) (44,815 ) Accumulated other comprehensive (1,119 ) (1,133 ) loss Total shareholders' equity 6,474 7,087 Total $ 50,757 $ 51,570 NET DEBT* (NON-GAAP) (Unaudited) (Millions) 3/31/13 12/31/12 Total Debt $ 24,500 $ 24,341 Less: Cash and cash equivalents (6,275 ) (6,351 ) Less: Short-term investments (1,494 ) (1,849 ) Net Debt* $ 16,731 $ 16,141 SCHEDULE OF DEBT (Unaudited) (Millions) 3/31/13 ISSUER COUPON MATURITY PRINCIPAL Sprint Nextel Corporation Export Development Canada Facility (Tranche 4.196% 12/15/2015 $ 500 2) 6% Senior Notes due 2016 6.000% 12/01/2016 2,000 9.125% Senior Notes due 9.125% 03/01/2017 1,000 2017 8.375% Senior Notes due 8.375% 08/15/2017 1,300 2017 9% Guaranteed Notes due 9.000% 11/15/2018 3,000 2018 1% Convertible Bond due 1.000% 10/15/2019 3,100 2019 7% Guaranteed Notes due 7.000% 03/01/2020 1,000 2020 7% Senior Notes due 2020 7.000% 08/15/2020 1,500 11.5% Senior Notes due 11.500% 11/15/2021 1,000 2021 9.25% Debentures due 9.250% 04/15/2022 200 2022 6% Senior Notes due 2022 6.000% 11/15/2022 2,280 Sprint Nextel 16,880 Corporation Sprint Capital Corporation 6.9% Senior Notes due 6.900% 05/01/2019 1,729 2019 6.875% Senior Notes due 6.875% 11/15/2028 2,475 2028 8.75% Senior Notes due 8.750% 03/15/2032 2,000 2032 Sprint Capital 6,204 Corporation iPCS Inc. First Lien Senior Secured 2.424% 05/01/2013 300 Floating Rate Notes due 2013 Second Lien Senior Secured Floating Rate 3.549% 05/01/2014 181 Notes due 2014 iPCS Inc. 481 EKN Secured Equipment 2.030% 03/30/2017 445 Facility Tower financing 9.500% 01/15/2030 697 obligation Capital lease 2014 - 2022 70 obligations and other TOTAL PRINCIPAL 24,777 Net discount from beneficial conversion (238) feature on convertible bond Net discounts (39) TOTAL DEBT $ 24,500 Supplemental information: The Company had $1.5 billion of borrowing capacity available under our unsecured revolving bank credit facility as of March 31, 2013. Our unsecured revolving bank credit facility expires in February 2018. The company is currently limited by a restriction of debt incurrence in one of our debt issuances which has limited our available borrowing capacity to the $1.5 billion mentioned above under our revolving credit facility. In May 2012, certain of our subsidiaries entered into a $1.0 billion secured equipment credit facility to finance equipment-related purchases for Network Vision. The facility is equally divided into two consecutive tranches of $500 million, with the drawdown availability contingent upon Sprint's acquisition of equipment-related purchases from Ericsson, up to the maximum of each tranche, ending on May 31, 2013 and May 31, 2014, for the first and second tranche, respectively. Interest and principal are payable semi-annually with a final maturity of March 2017 for both tranches. NOTES TO THE FINANCIAL INFORMATION (Unaudited) Capital expenditures is an accrual based amount that includes the changes in unpaid capital expenditures and excludes capitalized interest. Cash paid for capital expenditures includes total capitalized ^(1) interest of $15 million for the first quarter of 2013, and $9 million and $115 million for the fourth and first quarters of 2012, respectively, and can be found in the Condensed Consolidated Cash Flow Information and the Reconciliation to Free Cash Flow*. Postpaid subscribers on the Sprint platform are defined as retail postpaid subscribers on the CDMA network, including subscribers with ^(2) PowerSource devices, and those utilizing WiMax and LTE technology. Postpaid subscribers on the Nextel platform are defined as retail postpaid subscribers on the iDEN network. Prepaid subscribers on the Sprint platform are defined as retail prepaid subscribers and session-based tablet users who utilize CDMA and WiMax ^(3) technology via our multi-brand offerings. Prepaid subscribers on the Nextel platform are defined as retail prepaid subscribers who utilize iDEN technology. Nextel Subscriber Recaptures are defined as the number of subscribers that deactivated service from the postpaid or prepaid Nextel platform, as applicable, during each period but remained with the Company as ^(4) subscribers on the postpaid or prepaid Sprint platform, respectively. Subscribers that deactivate service from the Nextel platform and activate service on the Sprint platform are included in the Sprint platform net additions for the applicable period. The Postpaid and Prepaid Nextel Recapture Rates are defined as the ^(5) portion of total subscribers that left the postpaid or prepaid Nextel platform, as applicable, during the period and were retained on the postpaid or prepaid Sprint platform, respectively. ^(6) Severance and lease exit costs are primarily associated with workforce reductions and with exit costs associated with the Nextel platform. ^(7) For the first quarter of 2012, gains from asset dispositions and exchanges are primarily due to spectrum exchange transactions. For the fourth quarter of 2012, asset impairment and abandonment activity of $18 million is primarily related to network asset equipment ^(8) in our Wireless segment, no longer necessary for management's strategic plans. The first quarter of 2012 includes $18 million related to a change in our backhaul architecture in connection to our Network Vision design from microwave to a more cost effective fiber backhaul. On March 16, 2012, we elected to terminate the arrangement with LightSquared LP and LightSquared, Inc. (LightSquared). As we have no future service obligations with respect to the arrangement with ^(9) LightSquared, we recognized $236 million of the advanced payments as other operating income in the first quarter of 2012. As a result of the termination of the hosting agreement, we impaired capitalized costs specific to LightSquared's 1.6 GHz spectrum that the company no longer intends to deploy which totaled $66 million. Favorable developments during the first quarter of 2012 relating to ^(10) disagreements with local exchange carriers resulted in a reduction in expected access costs of $17 million. For the first quarter of 2013, litigation activity is primarily a result ^(11) of favorable developments in connection with a tax (non-income) related contingency. For the fourth quarter of 2012, included in selling, general and ^(12) administrative expenses are fees paid to unrelated parties necessary for the proposed transactions with SoftBank and our acquisition of Clearwire. Hurricane Sandy charges for the fourth quarter of 2012, represent ^(13) estimated hurricane-related charges of $45 million, consisting of customer credits, incremental roaming costs, network repairs and replacements. *FINANCIAL MEASURES Sprint Nextel provides financial measures determined in accordance with accounting principles generally accepted in the United States (GAAP) and adjusted GAAP (non-GAAP). The non-GAAP financial measures reflect industry conventions, or standard measures of liquidity, profitability or performance commonly used by the investment community for comparability purposes. These measurements should be considered in addition to, but not as a substitute for, financial information prepared in accordance with GAAP. We have defined below each of the non-GAAP measures we use, but these measures may not be synonymous to similar measurement terms used by other companies. Sprint Nextel provides reconciliations of these non-GAAP measures in its financial reporting. Because Sprint Nextel does not predict special items that might occur in the future, and our forecasts are developed at a level of detail different than that used to prepare GAAP-based financial measures, Sprint Nextel does not provide reconciliations to GAAP of its forward-looking financial measures. The measures used in this release include the following: OIBDA is operating income/(loss) before depreciation and amortization. Adjusted OIBDA is OIBDA excluding severance, exit costs, and other special items. Adjusted OIBDA Margin represents Adjusted OIBDA divided by non-equipment net operating revenues for Wireless and Adjusted OIBDA divided by net operating revenues for Wireline. We believe that Adjusted OIBDA and Adjusted OIBDA Margin provide useful information to investors because they are an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, spectrum acquisitions and other investments and our ability to incur and service debt. While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent non-cash current period costs associated with the use of long-lived tangible and definite-lived intangible assets. Adjusted OIBDA and Adjusted OIBDA Margin are calculations commonly used as a basis for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the telecommunications industry. Free Cash Flow is the cash provided by operating activities less the cash used in investing activities other than short-term investments and amounts included as investments in Clearwire during the period. We believe that Free Cash Flow provides useful information to investors, analysts and our management about the cash generated by our core operations after interest and dividends, if any, and our ability to fund scheduled debt maturities and other financing activities, including discretionary refinancing and retirement of debt and purchase or sale of investments. Net Debt is consolidated debt, including current maturities, less cash and cash equivalents, short-term investments and if any, restricted cash. We believe that Net Debt provides useful information to investors, analysts and credit rating agencies about the capacity of the company to reduce the debt load and improve its capital structure. SAFE HARBOR This release includes “forward-looking statements” within the meaning of the securities laws. The words “may,” “could,” “should,” “estimate,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “target,” “plan,” “providing guidance,” and similar expressions are intended to identify information that is not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to network performance, subscriber growth, and liquidity, and statements expressing general views about future operating results — 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, development and deployment of new technologies; efficiencies and cost savings of multimode technologies; customer and network usage; customer growth and retention; service, coverage and quality; availability of devices; the timing of various events and the economic environment. Sprint Nextel believes these forward-looking statements are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date when made. Sprint Nextel undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our company's historical experience and our present expectations or projections. Factors that might cause such differences include, but are not limited to, those discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2012. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties. Clearwire’s first quarter 2013 results from operations have not yet been finalized. As a result, the amount reflected for Sprint’s share of Clearwire’s results of operations for the quarter ended March 31, 2013, is an estimate and, based upon the finalization of Clearwire’s results, may need to be revised if our estimate materially differs from Clearwire’s actual results. Changes in our estimate, if any, would affect the carrying value of our investment in Clearwire, net loss, basic and diluted net loss per common share, and comprehensive loss but would have no effect on Sprint’s operating income, OIBDA*, Adjusted OIBDA* or consolidated statement of cash flows. About Sprint Nextel Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 55 million customers at the end of the first quarter 2013 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. The American Customer Satisfaction Index rated Sprint No. 1 among all national carriers in customer satisfaction and most improved, across all 47 industries, during the last four years. Newsweek ranked Sprint No. 3 in both its 2011 and 2012 Green Rankings, listing it as one of the nation’s greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint. LTE is a trademark of ETSI. Other marks are the property of their respective owners. Contact: Sprint Nextel Corp. Media Relations Scott Sloat, 240-855-0164 email@example.com or Investor Relations Brad Hampton, 800-259-3755 firstname.lastname@example.org
Sprint Reports First Quarter 2013 Results
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