NII Holdings Reports Second-Quarter Financial Results
Tuesday, August 06, 2019 | Comments

NII Holdings announced its financial results for the second quarter of 2019. For the quarter, the company reported a $5 million loss from continuing operations and a $12 million loss from discontinued operations.

Nextel Brazil generated adjusted operating income before depreciation and amortization (OIBDA) of $12 million, which excludes the impact of non-cash asset impairments, restructuring charges and other unusual items. Nextel Brazil's capital expenditures were $13 million for the quarter.

During the second quarter, the company contributed capital of $15.3 million to Nextel Holdings, the partnership entity that owns Nextel Brazil, and AI Brazil Holdings contributed $2.7 million. In addition, in July, to partially fund a scheduled debt repayment in Brazil, the company contributed an additional $23 million of capital to Nextel Holdings, while AI Brazil did not make any additional capital contributions. As a result, NII Holdings’ equity ownership in Nextel Holdings increased to 72.34% as of July 31.

On June 27, the company's stockholders approved the sale of NII Brazil Holdings, which owns the company's interest in Nextel Holdings, to América Móvil on the terms and conditions of the purchase agreement dated March 18.

NII Holdings ended the quarter with $65 million of unrestricted cash, excluding $36 million reported in cash and investments held for sale. In addition, after agreeing to release $3 million to settle an outstanding tax audit in Mexico, the company ended the quarter with $103 million of cash held in escrow.

"We lowered total cash burn to $22 million this quarter as we are focused on maximizing our liquidity while we wait for the sale of Nextel Brazil to close," said Dan Freiman, chief financial officer of NII. "We currently anticipate that the sale will close in the fourth quarter of 2019."

Other than potential impacts from timing of closing of the sale of Nextel Brazil and foreign currency exchange rates, the company does not expect any material changes in the estimated distributable value available to NII stockholders.

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