NII HOLDINGS, INC. (DEBTOR-IN-POSSESSION) AND SUBSIDIARIES

(A Substantially Wholly Owned Subsidiary
of Nextel Communications, Inc.)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
For the Nine and Three Months Ended September 30, 2002 and 2001
 
(in millions, except per share amounts)
Unaudited
 
 Nine Months Three Months
 Ended  Ended
 September 30, September 30,
 





 
 2002 2001 2002 2001
 





 
Operating revenues $584 $486 $191 $186
 





 
 
Operating expenses
 
 Cost of revenues 236 249 76 94
 Selling, general and administrative 246 332 75 120
 
 Impairment, restructuring and other
 
 charges 16 147 1 147
 Depreciation and amortization 58 174 20 60
 





 
  556 902 172 421
 





 
Operating income (loss) 28 (416) 19 (235)
 Interest expense (149) (221) (12) (74)
 Interest income  4 11 1 3
 Realized losses on investments -- (192) -- (188)
 Foreign currency transaction losses, net (161) (71) (30) (16)
 Reorganization items (136) -- (11)  --
 Other, net (6) (5) (5) (3)
 





 
Loss before income tax (provision) benefit (420) (894) (38) (513)
Income tax (provision) benefit (7) (39) 2  (39)
 





 
Net loss $(427) $(933) $(36) $(552)
 ============================
 
Net loss per common share, basic and
 
 diluted  $(1.58)$(3.44)$(0.13)$(2.04)
 ============================
 
Weighted average number of common shares
 
 Outstanding 270 271 270 271
  ============================
Operating cash flow (1) 102 (95) 40 (28)
 ============================

(1) Operating cash flow represents income (loss) before interest, taxes, depreciation and amortization, net foreign currency transaction losses, and other charges determined to be non-recurring in nature, such as reorganization items and impairment, restructuring and other charges.

  Nine Months Three Months
 Ended Ended
 September September
 30, 30,
  ------------ -----------
 2002 2001 2002 2001
 ------------ -----------
Net loss $(427)$(933) $(36)$(552)
 
Add back:
 
Income tax provision (benefit) 7 39 (2) 39
Other, net 6 5 5 3
Reorganization items 136 - 11 -
 
Foreign currency transaction
 
 losses, net 161 71 30 16
Realized losses on investments - 192 - 188
Interest income (4) (11) (1) (3)
Interest expense 149 221 12 74
Depreciation and amortization 58 174 20 60
 
Impairment, restructuring and
 
 other charges 16 147 1 147
 ------------ -----------
Operating cash flow $102 $(95) $40 $(28)
 ============ ===========