Press Release



NextWave Wireless Files Fiscal Year 2011 Financial Results


SAN DIEGO – March 12, 2012 - NextWave Wireless Inc. (OTCQB: WAVE-News) today announced that it has filed its Annual Report on Form 10-K with the Securities and Exchange Commission for the fiscal year 2011, which ended December 31, 2011.

The Form 10-K 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-K.

About NextWave Wireless

NextWave Wireless Inc. is a wireless technology company that manages and maintains worldwide 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. Contact:  

NextWave Wireless Investor Relations
Francis J. Harding
Chief Financial Officer
NextWave Wireless
619.573.1570
investinfo@nextwave.com

 

NextWave Wireless Public Relations
Jeff Seedman
Vice President
Ruder Finn, Inc.
310.882.4009
seedmanj@ruderfinn.com

NEXTWAVE WIRELESS INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except par value data)

 

December 31,

2011

January 1,

2011

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

                     $          11,087

  $       42,528

Restricted cash

                                    1,047

                   20

Marketable securities

                                 10,000

                    —

Wireless spectrum licenses held for sale

                                          —

              6,535

Deferred financing costs, net

                                          —

              3,262

Prepaid expenses and other current assets

                                       827

              1,092

Current assets of discontinued operations

                                    3,511

              3,632

Total current assets

                                 26,472

           57,069

Wireless spectrum licenses, net

                               435,522

         437,781

Property and equipment, net

                                    1,313

              2,188

Other assets

                                       362

                 115

Total assets

                     $        463,669

  $     497,153

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

Current liabilities:

 

 

Accounts payable

                     $                     5

  $             947

Accrued expenses

                                    2,328

              3,427

Current portion of long-term obligations

                               142,019

         784,649

Other current liabilities

                                         10

              1,272

Current liabilities of discontinued operations

                                       172

                 515

Total current liabilities

                               144,534

         790,810

Deferred income tax liabilities

                                 83,334

           84,688

Long-term obligations, net of current portion

                               896,568

           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; 24,938 and 23,729 shares issued at December 31, 2011 and January 1, 2011, respectively; 24,938 and 23,510 shares outstanding at December 31, 2011 and January 1, 2011

                                       175

                 166

Additional paid-in-capital

                               888,505

         887,676

Accumulated other comprehensive income

                                 21,805

           21,116

Accumulated deficit

                          (1,571,252)

    (1,307,124)

Total stockholders’ deficit

                              (660,767)

        (398,166)

Total liabilities and stockholders’ deficit

                     $        463,669

  $     497,153

 

 

 

 

 

 

 

 

 

 

NEXTWAVE WIRELESS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS

(in thousands, except per share data)

 

 

Years Ended

 

December 31,

2011

January 1,

2011

Operating expenses:

 

 

General and administrative

                 $       22,497

                 $       28,768

Restructuring credits

                           (1,076)

                              (581)

Total operating expenses

                          21,421

                          28,187

Net gains on sales of wireless spectrum licenses

                               330

                            5,536

Loss from operations

                        (21,091)

                        (22,651)

Other income (expense):

 

 

Interest income

                                  59

                               573

Interest expense

                      (248,317)

                      (211,880)

Gain on extinguishment of debt

                                  —

                          37,988

Other income

                            1,249

                          13,827

Total other expense, net

                      (247,009)

                      (159,492)

Loss from continuing operations before income taxes

                      (268,100)

                      (182,143)

Income tax benefit

                            2,199

                          26,737

Net loss from continuing operations

                      (265,901)

                      (155,406)

Income from discontinued operations before income taxes, net of gains on divestitures of discontinued operations of $2,257 and $78,360, respectively

                            2,792

                          52,832

Income tax provision

                           (1,019)

                        (17,824)

Net income from discontinued operations

                            1,773

                          35,008

Net loss attributed to noncontrolling interest in subsidiary

                                  —

                            3,794

Net income from discontinued operations attributed to NextWave

                            1,773

                          38,802

Net loss attributed to NextWave

                 $   (264,128)

                 $   (116,604)

Other comprehensive loss:

 

 

Net loss

                 $   (264,128)

                 $   (120,398)

Foreign currency translation adjustment

                               689

                            6,339

Total other comprehensive loss

                      (263,439)

                      (114,059)

Comprehensive loss attributable to noncontrolling interest in subsidiary

                                  —

                            4,134

Other comprehensive loss attributed to NextWave

                 $   (263,439)

                 $   (109,925)

Amounts attributed to NextWave common shares:

 

 

Net loss from continuing operations

                 $   (265,901)

                 $   (155,406)

Net income from discontinued operations

                            1,773

                          38,802

Net loss attributed to NextWave common shares

                 $   (264,128)

                 $   (116,604)

Net income (loss) per share attributed to NextWave common shares – basic and diluted

 

 

Continuing operations

            $        (11.05)

            $          (6.41)

Discontinued operations

                          0.07

                          1.60

Net loss

            $        (10.98)

            $          (4.81)

Weighted-average shares used in per share calculation

                          24,060

                          24,267

 

 

 

 

 

 

 

NEXTWAVE WIRELESS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

Years Ended

 

December 31,

2011

January 1,

2011

OPERATING ACTIVITIES

 

 

Net loss

  $      (264,128)

  $      (120,398)

Net income from discontinued operations

               1,773

             35,008

Net loss from continuing operations

          (265,901)

          (155,406)

Adjustments to reconcile loss from continuing operations to net cash used in operating activities of continuing operations:

 

 

Amortization of intangible assets

               7,567

               7,716

Depreciation

                  875

                  534

Non-cash share-based compensation

                  738

               1,078

Paid-in-kind interest

           136,861

           109,536

Amortization of deferred financing costs and discounts

           111,468

           102,054

Gain on extinguishment of debt

                    —

            (37,988)

Gain on sales of wireless spectrum licenses

                 (330)

              (5,536)

Gains from changes in estimated fair values of embedded derivatives

              (1,261)

            (12,537)

Deferred income tax benefit

              (2,199)

            (26,737)

Other non-cash adjustments

              (1,042)

               1,320

Changes in operating assets and liabilities:

 

 

Prepaid expenses and other current assets

                  275

                 (107)

Other assets

                 (279)

                   (11)

Accounts payable and accrued liabilities

              (2,041)

              (5,280)

Other liabilities and deferred credits

                    78

                   (99)

Net cash used in operating activities of continuing operations

            (15,191)

            (21,463)

 INVESTING ACTIVITIES

 

 

 Purchase of held-to-maturity marketable securities

            (15,000)

                    —

Proceeds from the maturity of marketable securities

               5,000

                    —

 Proceeds from the sale of wireless spectrum licenses, net of selling costs

               1,041

             12,880

 Proceeds from the sale of auction-rate securities

                    —

             24,023

 Payments for the purchase of property and equipment

                    —

              (2,625)

Net cash provided (used) by investing activities of continuing operations

              (8,959)

             34,278

FINANCING ACTIVITIES

 

 

Payments on long-term obligations

            (10,281)

          (124,138)

Payments to restricted cash account used to redeem long-term obligations

              (1,026)

                    —

Proceeds from long-term obligations

                    —

             25,000

Proceeds from the sale of common shares

                  100

                  141

Net cash used in financing activities of continuing operations

            (11,207)

            (98,997)

Cash provided (used) by discontinued operations:

 

 

Net cash provided (used) by operating activities of discontinued operations

                  119

              (1,694)

Net cash provided by investing activities of discontinued operations

               3,809

           110,666

Net cash provided by discontinued operations

               3,928

           108,972

Effect of foreign currency exchange rate changes on cash

                   (77)

                 (704)

Net increase (decrease) in cash and cash equivalents

            (31,506)

             22,086

Cash and cash equivalents, beginning of period

             42,598

             20,512

Cash and cash equivalents, end of period

             11,092

             42,598

Less cash and cash equivalents of discontinued operations, end of period

                     (5)

                   (70)

Cash and cash equivalents of continuing operations, end of period

  $         11,087

  $         42,528