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 2012, ended September 29, 2012.
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.
| NEXTWAVE WIRELESS INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands, except par value data) | ||||||||
| (unaudited) | ||||||||
| September 29, | December 31, | |||||||
| 2012 | 2011 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
|
Cash and cash equivalents |
$ |
5,863 |
$ |
11,087 |
||||
| Restricted cash | 1,696 | 1,047 | ||||||
| Marketable securities | — | 10,000 | ||||||
| Prepaid expenses and other current assets | 248 | 827 | ||||||
| Current assets of discontinued operations | 4,162 | 3,511 | ||||||
| Total current assets | 11,969 | 26,472 | ||||||
| Wireless spectrum licenses, net | 431,397 | 435,522 | ||||||
| Property and equipment, net | 721 | 1,313 | ||||||
| Other assets | 50 | 362 | ||||||
| Total assets | $ | 444,137 | $ | 463,669 | ||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 250 | $ | 5 | ||||
| Accrued expenses | 3,959 | 2,328 | ||||||
| Current portion of long-term obligations | 1,148,434 | 142,019 | ||||||
| Other current liabilities | 9 | 10 | ||||||
| Current liabilities of discontinued operations | 725 | 172 | ||||||
| Total current liabilities | 1,153,377 | 144,534 | ||||||
| Deferred income tax liabilities | 83,937 | 83,334 | ||||||
| Long-term obligations, net of current portion | 15,489 | 896,568 | ||||||
| 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; 24,938 shares issued and outstanding at September 29, 2012 and December 31, 2011 | 175 | 175 | ||||||
| Additional paid-in-capital | 888,800 | 888,505 | ||||||
| Accumulated other comprehensive income | 5,486 | 21,805 | ||||||
| Accumulated deficit | (1,703,127 | ) | (1,571,252 | ) | ||||
| Total stockholders’ deficit | (808,666 | ) | (660,767 | ) | ||||
| Total liabilities and stockholders’ deficit | $ | 444,137 | $ | 463,669 | ||||
| NEXTWAVE WIRELESS INC. | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 29, | October 1, | September 29, | October 1, | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | $ | 11,056 | $ | 5,006 | $ | 21,739 | $ | 17,281 | ||||||||
| Restructuring credit | — | — | — | (1,076 | ) | |||||||||||
| Total operating expenses | 11,056 | 5,006 | 21,739 | 16,205 | ||||||||||||
| Net gains on sales of wireless spectrum licenses | 1 | 2 | 101 | 255 | ||||||||||||
| Loss from operations | (11,055 | ) | (5,004 | ) | (21,638 | ) | (15,950 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 6 | 13 | 32 | 42 | ||||||||||||
| Interest expense | (44,773 | ) | (64,762 | ) | (129,441 | ) | (185,007 | ) | ||||||||
| Other income (expense), net | (1 | ) | (7 | ) | (5 | ) | 1,245 | |||||||||
| Total other expense, net | (44,768 | ) | (64,756 | ) | (129,414 | ) | (183,720 | ) | ||||||||
| Loss from continuing operations before income taxes | (55,823 | ) | (69,760 | ) | (151,052 | ) | (199,670 | ) | ||||||||
| Income tax benefit | 217 | 262 | 614 | 2,082 | ||||||||||||
| Net loss from continuing operations | (55,606 | ) | (69,498 | ) | (150,438 | ) | (197,588 | ) | ||||||||
| Income from discontinued operations before income taxes, net of gains (losses) on divestitures of discontinued operations of $0, $(1), $19,862 and $2,119, respectively | 16 | 66 | 20,029 | 2,740 | ||||||||||||
| Income tax provision | (6 | ) | (24 | ) | (1,466 | ) | (1,000 | ) | ||||||||
| Net income from discontinued operations | 10 | 42 | 18,563 | 1,740 | ||||||||||||
| Net loss | $ | (55,596 | ) | $ | (69,456 | ) | $ | (131,875 | ) | $ | (195,848 | ) | ||||
| Other comprehensive loss: | ||||||||||||||||
| Net loss | $ | (55,596 | ) | $ | (69,456 | ) | $ | (131,875 | ) | $ | (195,848 | ) | ||||
| Foreign currency translation adjustment transferred to earnings upon substantial liquidation of foreign entities | — | — | (17,578 | ) | (1,305 | ) | ||||||||||
| Foreign currency translation adjustment | 1,451 | (2,653 | ) | 1,259 | 1,325 | |||||||||||
| Total other comprehensive loss | (54,145 | ) | (72,109 | ) | (148,194 | ) | (195,828 | ) | ||||||||
| Amounts attributed to net income (loss) per common share: | ||||||||||||||||
| Net loss from continuing operations | $ | (55,606 | ) | $ | (69,498 | ) | $ | (150,438 | ) | $ | (197,588 | ) | ||||
| Net income from discontinued operations | 10 | 42 | 18,563 | 1,740 | ||||||||||||
| Net loss | $ | (55,596 | ) | $ | (69,456 | ) | $ | (131,875 | ) | $ | (195,848 | ) | ||||
| Net income (loss) per common share– basic and diluted | ||||||||||||||||
| Continuing operations | $ | (2.30 | ) | $ | (2.89 | ) | $ | (6.24 | ) | $ | (8.21 | ) | ||||
| Discontinued operations | — | — | 0.77 | 0.07 | ||||||||||||
|
Net loss |
$ | (2.30 | ) | $ | (2.89 | ) | $ | (5.47 | ) | $ | (8.14 | ) | ||||
| Weighted-average shares used in per share calculation | 24,127 | 24,060 | 24,107 | 24,060 | ||||||||||||
| NEXTWAVE WIRELESS INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| Nine Months Ended | ||||||||
| September 29, | October 1, | |||||||
| 2012 | 2011 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (131,875 | ) | $ | (195,848 | ) | ||
| Net income from discontinued operations | 18,563 | 1,740 | ||||||
| Net loss from continuing operations | (150,438 | ) | (197,588 | ) | ||||
| Adjustments to reconcile loss from continuing operations to net cash used in operating activities of continuing operations: | ||||||||
| Amortization of intangible assets | 5,574 | 5,709 | ||||||
| Depreciation | 592 | 656 | ||||||
| Non-cash share-based compensation | 295 | 625 | ||||||
| Paid-in-kind interest | 124,080 | 98,448 | ||||||
| Amortization of deferred financing costs and discounts | 5,342 | 86,552 | ||||||
| Gains on sales of wireless spectrum licenses | (101 | ) | (255 | ) | ||||
| Gains from changes in estimated fair values of embedded derivatives | — | (1,261 | ) | |||||
| Deferred income tax benefit | (607 | ) | (1,082 | ) | ||||
| Other non-cash adjustments | 3 | (1,044 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
|
Prepaid expenses and other current assets |
572 | 551 | ||||||
| Other assets | 290 | (389 | ) | |||||
| Accounts payable and accrued liabilities | 1,872 | (2,610 | ) | |||||
| Net cash used in operating activities of continuing operations | (12,526 | ) | (11,688 | ) | ||||
| INVESTING ACTIVITIES | ||||||||
| Proceeds from the maturity of investment securities | 20,210 | — | ||||||
| Purchase of held-to-maturity investment securities | (10,191 | ) | (15,000 | ) | ||||
| Proceeds from the sale of wireless spectrum licenses, net of selling costs | 278 | 255 | ||||||
| Net cash provided by (used in) investing activities of continuing operations | 10,297 | (14,745 | ) | |||||
| FINANCING ACTIVITIES | ||||||||
| Payments on long-term obligations | (4,080 | ) | (10,137 | ) | ||||
| Payments to restricted cash account used to redeem long-term obligations | (647 | ) | — | |||||
| Net cash used in financing activities of continuing operations | (4,727 | ) | (10,137 | ) | ||||
| Cash provided (used) by discontinued operations: | ||||||||
| Net cash provided (used) by operating activities of discontinued operations | 193 | (906 | ) | |||||
| Net cash provided by investing activities of discontinued operations | 2,213 | 3,654 | ||||||
| Net cash provided by discontinued operations | 2,406 | 2,748 | ||||||
| Effect of foreign currency exchange rate changes on cash | (18 | ) | 3 | |||||
| Net decrease in cash and cash equivalents | (4,568 | ) | (33,819 | ) | ||||
| Cash and cash equivalents, beginning of period | 11,092 | 42,598 | ||||||
| Cash and cash equivalents, end of period | 6,524 | 8,779 | ||||||
| Less cash and cash equivalents of discontinued operations, end of period | (661 | ) | (40 | ) | ||||
| Cash and cash equivalents of continuing operations, end of period | $ | 5,863 | $ | 8,739 | ||||