EXHIBIT 20.2
Nextel Communications, Inc.
1505 Farm Credit Drive
McLean, VA 22102
703-394-3000
[LOGO] Media:
Ben Banta (703) 394 - 3573
For Immediate Release Investors/Analysts:
Paul Blalock (703) 394 - 3500
NEXTEL REPORTS 1996 RESULTS
-- Company Sets Growth Records --
McLEAN, Va. - March 14, 1997 - Nextel Communications, Inc. (NASDAQ: NXTL), the
nation's leading provider of all-digital wireless services, today announced
results for the fourth quarter and the 12 months ended December 31, 1996,
including increased revenue, a record number of digital units in service and
strong revenue per digital unit in service.
Dan Akerson, Nextel's chairman and chief executive officer said, "Our progress
is solid. We launched our new national network capabilities, began an aggressive
national advertising campaign and are achieving increasing levels of customer
acceptance. We are changing the way business customers use wireless services by
providing industry-leading innovations like no roaming charges and per-second
billing for cellular calls. Nextel will achieve even stronger growth by offering
the best quality, value and simplicity available in the industry."
Revenues increased 94 percent to $332,938,000 for the 12 months ended December
31, 1996, compared with $171,703,000 for the same period last year. Revenues for
the three months ended December 31, 1996 were $95,961,000, compared with
$60,951,000 for the same period last year. A record number of total wireless
units in service of 1,114,500 were reported as of December 31, 1996, an increase
of 32 percent over the same period last year. Digital units in service increased
253 percent to 300,300 as of December 31, 1996 as compared with last year, while
at the same time the monthly average revenue per digital unit increased 51
percent to $56 per unit.
The net loss for the twelve months ended December 31, 1996, was $556,020,000
($2.50 per share) versus a loss of $331,165,000 ($2.31 per share) for the same
period last year. The net loss for the fourth quarter of 1996 was $158,391,000
($0.70 per share) versus $118,850,000 ($0.62 per share) for the same period last
year and $148,883,000 ($0.66 per share) during the three months ending September
30, 1996. The results for the 12 months ending December 31, 1996, are based upon
the weighted average number of common shares outstanding of 222,779,000 during
the period.
Steve Shindler, Nextel's chief financial officer commented, "Nextel is
exceeding its operational and financial targets. During 1996, we more than
tripled our digital subscribers while increasing the average monthly revenue
from each customer by over 50%. We are ramping up our growth. In
recent days, we've reduced the price of our handsets to $199, instituted an
industry-leading per second billing policy, and expect to continue to show
impressive performance in these operational and financial areas."
McCaw International Ltd., Nextel's international subsidiary, raised
approximately $500 million gross proceeds in a recently concluded debt financing
transaction to fund its planned digital wireless communication systems buildouts
in several emerging markets including Argentina, Brazil and the Philippines.
"Safe Harbor " Statements under the Private Securities Litigation Reform Act of
1995. A number of the matters and subject areas discussed above that are not
historical or current facts deal with potential future circumstances and
developments. The discussion of such matters and subject areas is generally
qualified by the inherent risks and uncertainties surrounding future
expectations. Nextel has attempted to identify, in context, certain of the
factors that it currently believes may cause actual future experiences and
results to differ from Nextel's current expectations regarding the relevant
matter or subject area. The operation of Nextel's and its affiliates' wireless
communications business may produce actual future circumstances and results that
differ from Nextel's and such affiliates' current expectations regarding such
matters due to the effects of various risks and uncertainties. Such risks and
uncertainties are described in Nextel's periodic and other reports filed from
time to time with the Securities and Exchange Commission, including the
discussion under the heading "Forward Looking Statements" contained in Nextel's
most recent quarterly report on Form 10-Q filed on or about November 14, 1996.
Nextel Communications, Inc., based in McLean, Virginia, is the nation's largest
provider of all-digital wireless services. Nextel now offers enhanced digital
wireless service in over 200 cities making it the largest guaranteed all-digital
network providing commercial service in the U.S. today. To learn more about
Nextel and our services, visit our website at http://www.nextel.com.
-more-
NEXTEL COMMUNICATIONS, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(in thousands, except share and unit data)
Three Months Ended Twelve Months Ended
1995 1996 1995 1996
Revenues $ 60,951 $ 95,961 $ 171,703 $ 332,938
Cost of Service and Analog Equipment Sales
49,175 60,086 151,718 247,717
Selling, General and Administrative
77,074 106,177 193,321 330,256
Expenses Related to Corporate Reorganization
_ _ 17,372 _
Depreciation and Amortization
84,786 109,133 236,178 400,831
Operating Loss
(150,084) (179,435) (426,886) (645,866)
Interest Expense (43,474) (61,971) (115,034) (227,495)
Other (Expense) Income (9,491) (7,233) 10,153 10,149
Income Tax Benefit 84,199 90,248 200,602 307,192
Net Loss $(118,850) $(158,391) $(331,165) $(556,020)
Net Loss Per Share $ (0.62) $ (0.70) $ (2.31) $ (2.50)
Weighted Average Common
Shares Outstanding 193,224,000 227,189,000 143,283,000 222,779,000
SELECTED BALANCE SHEET DATA
December 31,
1995 1996
Cash and Cash Equivalents $ 340,826 $ 139,681
Marketable Securities $ 68,443 $ 5,012
Current Assets $ 504,661 $ 309,097
Property, Plant and Equipment, net $ 1,192,204 $ 1,803,739
Intangible Assets, Net $ 3,549,622 $ 4,076,300
Total Assets $ 5,547,256 $ 6,472,439
Long-Term Debt $ 1,687,829 $ 2,783,041
Stockholders' Equity $ 2,945,141 $ 2,808,138
OTHER SELECTED DATA
December 31,
1995 1996
Capital Expenditures, net of
capitalized interest of $31,000
and $32,900, respectively $ 388,700 $ 537,100
Units in Service
Analog SMR service 758,000 814,200
Digital Mobile Network servic 85,000 300,300
Total 843,000 1,114,500
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