SAN DIEGO--(BUSINESS WIRE)--NextWave Wireless Inc. (OTCQB: WAVE) today announced that it has filed its Quarterly Report on Form 10-Q with the Securities and Exchange Commission for the third quarter of fiscal 2011, ended October 1, 2011.
The Form 10-Q is available on the web site maintained by the Securities and Exchange Commission at www.sec.gov and on the NextWave Web site at www.nextwave.com under the heading - Financial Information - SEC Filings. The financial information accompanying this press release should be reviewed together with the Notes to Condensed Consolidated Financial Statements, Management’s Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors contained in the Form 10-Q.
About NextWave Wireless
NextWave Wireless Inc. is a wireless technology company that manages and maintains wireless spectrum licenses.
Additional Information
This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. There can be no assurances that forward-looking statements will be achieved. Actual events or results could differ materially from the events or results predicted by such statements. Important factors that could cause actual events or results to differ materially are discussed in greater detail in the filings of NextWave with the Securities and Exchange Commission. All such documents are available through the SEC's website at www.sec.gov. NextWave makes no commitment to update any forward-looking statements in order to reflect subsequent changes in events or circumstances except as may be required pursuant to applicable law.
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NEXTWAVE WIRELESS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value data) (unaudited) |
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| October 1, 2011 | January 1, 2011 | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents |
$ |
8,739 |
$ |
42,528 |
||||||
| Restricted cash | 23 | 20 | ||||||||
| Short-term investment | 15,000 | — | ||||||||
| Wireless spectrum licenses held for sale | 6,535 | 6,535 | ||||||||
| Deferred financing costs, net | 614 | 3,262 | ||||||||
| Prepaid expenses and other current assets | 541 | 1,092 | ||||||||
| Current assets of discontinued operations | 3,557 | 3,632 | ||||||||
| Total current assets | 35,009 | 57,069 | ||||||||
| Wireless spectrum licenses, net | 430,700 | 437,781 | ||||||||
| Property and equipment, net | 1,532 | 2,188 | ||||||||
| Other assets | 472 | 115 | ||||||||
| Total assets | $ | 467,713 | $ | 497,153 | ||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 326 | $ | 947 | ||||||
| Accrued expenses | 1,441 | 3,427 | ||||||||
| Current portion of long-term obligations | 958,287 | 784,649 | ||||||||
| Other current liabilities | 11 | 1,272 | ||||||||
| Current liabilities of discontinued operations | 54 | 515 | ||||||||
| Total current liabilities | 960,119 | 790,810 | ||||||||
| Deferred income tax liabilities | 83,243 | 84,688 | ||||||||
| Long-term obligations, net of current portion | 17,720 | 19,821 | ||||||||
| Commitments and contingencies | ||||||||||
| Stockholders’ deficit: | ||||||||||
| Preferred stock, $0.001 par value; 25,000 shares authorized; 355 shares designated as Series A Senior Convertible Preferred Stock; no other shares issued or outstanding | — | — | ||||||||
| Common stock, $0.007 par value; 57,143 shares authorized; 23,510 and 23,729 shares issued at October 1, 2011 and January 1, 2011, respectively; 23,510 shares outstanding at October 1, 2011 and January 1, 2011 | 165 | 166 | ||||||||
| Additional paid-in-capital | 888,302 | 887,676 | ||||||||
| Accumulated other comprehensive income | 21,136 | 21,116 | ||||||||
| Accumulated deficit | (1,502,972 | ) | (1,307,124 | ) | ||||||
| Total stockholders’ deficit | (593,369 | ) | (398,166 | ) | ||||||
| Total liabilities and stockholders’ deficit | $ | 467,713 | $ | 497,153 | ||||||
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NEXTWAVE WIRELESS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS (in thousands, except per share data) (unaudited) |
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| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| October 1, 2011 | October 2, 2010 | October 1, 2011 | October 2, 2010 | |||||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| General and administrative | $ | 4,809 | $ | 9,364 | $ | 16,826 | $ | 23,223 | ||||||||||||
| Restructuring credits | — | (247 | ) | (1,076 | ) | (232 | ) | |||||||||||||
| Total operating expenses | 4,809 | 9,117 | 15,750 | 22,991 | ||||||||||||||||
| Net gains (losses) on sale of wireless spectrum licenses | (195 | ) | (1 | ) | (200 | ) | 11 | |||||||||||||
| Loss from operations | (5,004 | ) | (9,118 | ) | (15,950 | ) | (22,980 | ) | ||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Interest income | 13 | 43 | 42 | 557 | ||||||||||||||||
| Interest expense | (64,762 | ) | (56,779 | ) | (185,007 | ) | (155,042 | ) | ||||||||||||
| Gain on extinguishment of debt | — | — | — | 37,988 | ||||||||||||||||
| Other income (expense), net | (7 | ) | 407 | 1,245 | 9,788 | |||||||||||||||
| Total other expense, net | (64,756 | ) | (56,329 | ) | (183,720 | ) | (106,709 | ) | ||||||||||||
| Loss from continuing operations before income taxes | (69,760 | ) | (65,447 | ) | (199,670 | ) | (129,689 | ) | ||||||||||||
| Income tax benefit | 262 | — | 2,082 | — | ||||||||||||||||
| Net loss from continuing operations | (69,498 | ) | (65,447 | ) | (197,588 | ) | (129,689 | ) | ||||||||||||
| Income (loss) from discontinued operations before income taxes, net of gains (losses) on divestitures of discontinued operations of $(1), $(1,219), $2,119 and $(5,835), respectively | 66 | (20,978 | ) | 2,740 | (32,398 | ) | ||||||||||||||
| Income tax benefit (provision) | (24 | ) | 4,158 | (1,000 | ) | 4,051 | ||||||||||||||
| Net income (loss) from discontinued operations | 42 | (16,820 | ) | 1,740 | (28,347 | ) | ||||||||||||||
| Net loss attributed to noncontrolling interest in subsidiary | — | 2,557 | — | 3,794 | ||||||||||||||||
| Net income (loss) from discontinued operations attributed to NextWave | 42 | (14,263 | ) | 1,740 | (24,553 | ) | ||||||||||||||
| Net loss attributed to NextWave | $ | (69,456 | ) | $ | (79,710 | ) | $ | (195,848 | ) | $ | (154,242 | ) | ||||||||
| Other comprehensive loss: | ||||||||||||||||||||
| Net loss | $ | (69,456 | ) | $ | (82,267 | ) | $ | (195,848 | ) | $ | (158,036 | ) | ||||||||
| Foreign currency translation adjustment | (2,653 | ) | 2,852 | 20 | 5,273 | |||||||||||||||
| Total other comprehensive loss | (72,109 | ) | (79,415 | ) | (195,828 | ) | (152,763 | ) | ||||||||||||
| Comprehensive loss attributable to noncontrolling interest in subsidiary | — | 1,932 | — | 4,134 | ||||||||||||||||
| Other comprehensive loss attributed to NextWave | $ | (72,109 | ) | $ | (77,483 | ) | $ | (195,828 | ) | $ | (148,629 | ) | ||||||||
| Amounts attributed to NextWave common shares: | ||||||||||||||||||||
| Net loss from continuing operations | $ | (69,498 | ) | $ | (65,447 | ) | $ | (197,588 | ) | $ | (129,689 | ) | ||||||||
| Net income (loss) from discontinued operations | 42 | (14,263 | ) | 1,740 | (24,553 | ) | ||||||||||||||
| Net loss attributed to NextWave common shares | $ | (69,456 | ) | $ | (79,710 | ) | $ | (195,848 | ) | $ | (154,242 | ) | ||||||||
| Net income (loss) per share attributed to NextWave common shares – basic and diluted | ||||||||||||||||||||
| Continuing operations | $ | (2.89 | ) | $ | (2.69 | ) | $ | (8.21 | ) | $ | (5.35 | ) | ||||||||
| Discontinued operations | — | (0.59 | ) | 0.07 | (1.01 | ) | ||||||||||||||
| Net loss | $ | (2.89 | ) | $ | (3.28 | ) | $ | (8.14 | ) | $ | (6.36 | ) | ||||||||
| Weighted-average shares used in per share calculation | 24,060 | 24,279 | 24,060 | 24,264 | ||||||||||||||||
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NEXTWAVE WIRELESS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
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| Nine Months Ended | |||||||||||
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October 1, |
October 2, |
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| OPERATING ACTIVITIES | |||||||||||
| Net loss | $ | (195,848 | ) | $ | (158,036 | ) | |||||
| Net income (loss) from discontinued operations | 1,740 | (28,347 | ) | ||||||||
| Net loss from continuing operations | (197,588 | ) | (129,689 | ) | |||||||
| Adjustments to reconcile loss from continuing operations to net cash used in operating activities of continuing operations: | |||||||||||
| Amortization of intangible assets | 5,709 | 5,756 | |||||||||
| Depreciation | 656 | 316 | |||||||||
| Non-cash share-based compensation | 625 | 855 | |||||||||
| Paid-in-kind interest | 98,448 | 81,527 | |||||||||
| Amortization of deferred financing costs and discounts | 86,552 | 73,224 | |||||||||
| Gain on extinguishment of debt | — | (37,988 | ) | ||||||||
| (Gain) loss on sales of wireless spectrum licenses | 200 | (11 | ) | ||||||||
| Gains from changes in estimated fair values of embedded derivatives | (1,261 | ) | (8,499 | ) | |||||||
| Other non-cash adjustments | (1,044 | ) | 1,015 | ||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Prepaid expenses and other current assets | 551 | 91 | |||||||||
| Other assets | (389 | ) | (195 | ) | |||||||
| Accounts payable and accrued liabilities | (2,610 | ) | (4,903 | ) | |||||||
| Other liabilities and deferred credits | (1,082 | ) | (123 | ) | |||||||
| Net cash used in operating activities of continuing operations | (11,233 | ) | (18,613 | ) | |||||||
| INVESTING ACTIVITIES | |||||||||||
| Purchase of held-to-maturity investment security | (15,000 | ) | — | ||||||||
| Proceeds from the sale of wireless spectrum licenses, net of selling costs | (200 | ) | 3,431 | ||||||||
| Proceeds from the sale of auction-rate securities | — | 24,023 | |||||||||
| Payments for the purchase of property and equipment | — | (2,856 | ) | ||||||||
| Other, net | — | 91 | |||||||||
| Net cash provided (used) by investing activities of continuing operations | (15,200 | ) | 24,689 | ||||||||
| FINANCING ACTIVITIES | |||||||||||
| Payments on long-term obligations | (10,137 | ) | (25,442 | ) | |||||||
| Proceeds from long-term obligations | — | 25,000 | |||||||||
| Proceeds from the sale of common shares | — | 141 | |||||||||
| Payment to restricted spectrum sales cash account used to redeem long-term obligations | — | (696 | ) | ||||||||
| Net cash used in financing activities of continuing operations | (10,137 | ) | (997 | ) | |||||||
| Cash provided (used) by discontinued operations: | |||||||||||
| Net cash provided (used) by operating activities of discontinued operations | (906 | ) | 18,170 | ||||||||
| Net cash provided (used) by investing activities of discontinued operations | 3,654 | (790 | ) | ||||||||
| Net cash provided by discontinued operations | 2,748 | 17,380 | |||||||||
| Effect of foreign currency exchange rate changes on cash | 3 | (685 | ) | ||||||||
| Net increase (decrease) in cash and cash equivalents | (33,819 | ) | 21,774 | ||||||||
| Cash and cash equivalents, beginning of period | 42,598 | 20,512 | |||||||||
| Cash and cash equivalents, end of period | 8,779 | 42,286 | |||||||||
| Less cash and cash equivalents of discontinued operations, end of period | (40 | ) | (19,633 | ) | |||||||
| Cash and cash equivalents of continuing operations, end of period | $ | 8,739 | $ | 22,653 | |||||||
| NONCASH FINANCING ACTIVITIES | |||||||||||
| Senior, Second and Third Lien Notes issued to noteholders in exchange for debt modification fees | $ | — | $ | 21,249 | |||||||