UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
333-06609-01
Commission file number 333-06609-02
SPRINT SPECTRUM L.P.
SPRINT SPECTRUM FINANCE CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 48-1165245
DELAWARE 43-1746537
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Nos.)
4900 Main Street, Kansas City, Missouri 64112
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (816) 559-1000
Securities registered pursuant to Section 12(b) and 12(g) of the Act: None
The registrants meet the conditions set forth in General Instruction H (1) (a)
and (b) of Form 10-Q and are therefore filing this Form with the reduced
disclosure format.
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file these reports), and (2) has been subject to these filing
requirements for the past 90 days.
Yes X No______
-------
At November 1, 2000 Sprint Spectrum Finance Corporation had 100 common shares
outstanding.
<PAGE>
<TABLE>
<CAPTION>
Table of Contents
Page
Number
-------------------
SPRINT SPECTRUM L.P.
Part I - Financial Information
Item 1. Financial Statements
<S> <C>
Consolidated Statements of Operations 1
Consolidated Balance Sheets 2
Consolidated Statements of Cash Flows 3
Consolidated Statement of Changes in Partners' Capital and Accumulated
Deficit 4
Condensed Notes to Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
Item 3. Quantitative and Qualitative Disclosures About Market Risk 9
Part II - Other Information
Item 1. Legal Proceedings 9
Item 2. Changes in Securities 9
Item 3. Defaults Upon Senior Securities 9
Item 4. Submission of Matters to a Vote of Security Holders 9
Item 5. Other Information 9
Item 6. Exhibits and Reports on Form 8-K 9
Signature 10
SPRINT SPECTRUM FINANCE CORPORATION
Part I - Financial Information
Item 1. Financial Statements
Balance Sheets 11
Notes to Financial Statements 11
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 11
Item 3. Quantitative and Qualitative Disclosures About Market Risk 11
Part II - Other Information
Item 1. Legal Proceedings 12
Item 2. Changes in Securities 12
Item 3. Defaults Upon Senior Securities 12
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
Signature 13
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Part I.
Item 1.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Sprint Spectrum L.P.
(millions)
--------------------------------------------- ----------------------------------- ----------------------------------
Quarters Ended Year-to-Date
September 30, September 30,
--------------------------------------------- ----------------------------------- ----------------------------------
2000 1999 2000 1999
--------------------------------------------- --- ------------- -- -------------- -- ------------- --- -------------
<S> <C> <C> <C> <C>
Net Operating Revenues $ 1,038 $ 574 $ 2,699 $ 1,505
--------------------------------------------- --- ------------- -- -------------- -- ------------- --- -------------
Operating Expenses
Costs of services and products 481 386 1,323 1,039
Selling, general and administrative 467 374 1,222 1,001
Depreciation and amortization 237 201 661 546
--------------------------------------------- --- ------------- -- -------------- -- ------------- --- -------------
Total operating expenses 1,185 961 3,206 2,586
--------------------------------------------- --- ------------- -- -------------- -- ------------- --- -------------
Operating Loss (147) (387) (507) (1,081)
Interest expense (173) (136) (500) (385)
Other income (expense), net (2) 3 37 8
--------------------------------------------- --- ------------- -- -------------- -- ------------- --- -------------
Loss before Extraordinary Item (322) (520) (970) (1,458)
Extraordinary item - - - (33)
--------------------------------------------- --- ------------- -- -------------- -- ------------- --- -------------
Net Loss $ (322) $ (520) $ (970) $ (1,491)
--- ------------- -- -------------- -- ------------- --- -------------
</TABLE>
See accompanying Condensed Notes to Consolidated Financial Statements
(Unaudited).
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS Sprint Spectrum L.P.
(millions)
--------------------------------------------------------------------------------------------------------------------
September 30, December 31, 1999
2000
--------------------------------------------------------------------------------------------------------------------
(Unaudited)
Assets
Current assets
<S> <C> <C>
Cash and equivalents $ 90 $ 16
Accounts receivable, net of allowance for doubtful
accounts of $56 and $34 495 361
Affiliate receivables - 142
Inventories 352 310
Prepaids and other current assets 75 54
--------------------------------------------------------------------------------------------------------------------
Total current assets 1,012 883
Property, plant and equipment
Network equipment 4,516 3,838
Construction work in progress 1,195 1,151
Buildings and leasehold improvements 1,208 873
Other 483 381
--------------------------------------------------------------------------------------------------------------------
Total property, plant and equipment 7,402 6,243
Accumulated depreciation (2,029) (1,447)
--------------------------------------------------------------------------------------------------------------------
Net property, plant and equipment 5,373 4,796
Intangible assets
PCS licenses 2,129 2,137
Microwave relocation costs 363 314
--------------------------------------------------------------------------------------------------------------------
Total intangible assets 2,492 2,451
Accumulated amortization (217) (171)
--------------------------------------------------------------------------------------------------------------------
Net intangible assets 2,275 2,280
Other 77 71
--------------------------------------------------------------------------------------------------------------------
Total $ 8,737 $ 8,030
-------------------------------------------
Liabilities and Partners' Capital
Current liabilities
Current maturities of long-term debt $ 115 $ 5
Accounts payable 459 418
Affiliated payables 476 274
Construction obligations 515 664
Accrued advertising 60 97
Accrued interest 189 87
Other 426 318
--------------------------------------------------------------------------------------------------------------------
Total current liabilities 2,240 1,863
Long-term debt 8,853 7,960
Other noncurrent liabilities 115 89
Partners' capital and accumulated deficit
Partners' capital 4,495 4,114
Accumulated deficit (6,966) (5,996)
--------------------------------------------------------------------------------------------------------------------
Total partners' capital and accumulated deficit (2,471) (1,882)
--------------------------------------------------------------------------------------------------------------------
Total $ 8,737 $ 8,030
-------------------------------------------
</TABLE>
See accompanying Condensed Notes to Consolidated Financial Statements
(Unaudited).
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Sprint Spectrum L.P.
(millions)
------------------------------------------------------------------ ----------------- ----------------- ----------------
Year-to-Date September 30, 2000 1999
------------------------------------------------------------------ ----------------- ----------------- ----------------
Operating Activities
<S> <C> <C>
Net loss $ (970) $ (1,491)
Adjustments to reconcile net loss to net cash used by operating
activities:
Extraordinary loss - 33
Depreciation and amortization 661 546
Gain on sale of assets (34) -
Amortization of debt discount and issuance costs 44 44
Changes in assets and liabilities:
Accounts receivable, net (134) (130)
Affiliated receivables and payables 352 493
Inventories and other current assets (54) (204)
Accounts payable and other current liabilities 61 294
Other noncurrent assets and liabilities 23 (4)
------------------------------------------------------------------ --- ------------- --- ------------- -- -------------
Net cash used by operating activities (51) (419)
------------------------------------------------------------------ --- ------------- --- ------------- -- -------------
Investing Activities
Capital expenditures (1,387) (1,118)
Proceeds from sale of assets 169 -
------------------------------------------------------------------ --- ------------- --- ------------- -- -------------
Net cash used by investing activities (1,218) (1,118)
------------------------------------------------------------------ --- ------------- --- ------------- -- -------------
Financing Activities
Proceeds from long-term debt 1,000 3,638
Payments on long-term debt (36) (2,110)
Partners' capital contributions 379 -
Other - (50)
------------------------------------------------------------------ --- ------------- --- ------------- -- -------------
Net cash provided by financing activities 1,343 1,478
------------------------------------------------------------------ --- ------------- --- ------------- -- -------------
Increase (Decrease) in Cash and Equivalents 74 (59)
Cash and Equivalents at Beginning of Period 16 70
------------------------------------------------------------------ --- ------------- --- ------------- -- -------------
Cash and Equivalents at End of Period $ 90 $ 11
--- ------------- -- -------------
</TABLE>
See accompanying Condensed Notes to Consolidated Financial Statements
(Unaudited).
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL AND ACCUMULATED DEFICIT Sprint Spectrum L.P.
(Unaudited)
(millions)
---------------------------------------------------------------------------------------------------------------------
Partners' Accumulated
Capital Deficit Total
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Beginning 2000 balance $ 4,114 $ (5,996) $ (1,882)
Net loss - (970) (970)
Partners' capital contributions 379 - 379
Other, net 2 - 2
---------------------------------------------------------------------------------------------------------------------
September 2000 balance $ 4,495 $ (6,966) $ (2,471)
----------------------------------------------------
</TABLE>
See accompanying Condensed Notes to Consolidated Financial Statements
(Unaudited).
<PAGE>
CONDENSED NOTES TO CONSOLIDATED FINANCIAL Sprint Spectrum L.P.
STATEMENTS (Unaudited)
--------------------------------------------------------------------------------
The information in this Form 10-Q has been prepared according to Securities and
Exchange Commission (SEC) rules and regulations. In our opinion, the
consolidated interim financial statements reflect all adjustments, consisting
only of normal recurring accruals, needed to fairly present Sprint Spectrum
L.P.'s consolidated financial position, results of operations and cash flows.
Certain information and footnote disclosures normally included in consolidated
financial statements prepared according to accounting principles generally
accepted in the United States have been condensed or omitted. As a result, you
should read these financial statements along with Sprint Spectrum L.P.'s 1999
Form 10-K. Operating results for the 2000 year-to-date period do not necessarily
represent the results that may be expected for the year ending December 31,
2000.
--------------------------------------------------------------------------------
1. General
--------------------------------------------------------------------------------
Sprint Spectrum L.P., with its wholly owned subsidiaries (Sprint Spectrum),
began commercial code division multiple access operations late in the 1996
fourth quarter. Sprint Spectrum is wholly owned by Sprint Corporation (Sprint).
On July 13, 2000, Sprint and WorldCom, Inc. announced that the boards of
directors of both companies terminated their merger agreement, previously
announced in October 1999, as a result of regulatory opposition to the merger.
--------------------------------------------------------------------------------
2. Basis of Consolidation and Presentation
--------------------------------------------------------------------------------
The consolidated financial statements include the accounts of Sprint Spectrum
and its subsidiaries. The consolidated financial statements are prepared using
accounting principles generally accepted in the United States. These principles
require management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities, and the reported amounts of revenues and expenses. Actual results
could differ from those estimates.
Certain prior-year amounts have been reclassified to conform to the current-year
presentation. These reclassifications had no effect on the results of operations
or partners' capital as previously reported.
--------------------------------------------------------------------------------
3. Long-term Debt
--------------------------------------------------------------------------------
During the 2000 year-to-date period, Sprint allocated $1.0 billion of its notes
payable and commercial paper to Sprint Spectrum. The proceeds were used to fund
Sprint Spectrum's capital requirements and operating losses.
--------------------------------------------------------------------------------
4. Litigation, Claims and Assessments
--------------------------------------------------------------------------------
Various suits arising in the ordinary course of business are pending against
Sprint Spectrum. Management cannot predict the final outcome of these actions
but believes they will not be material to the consolidated financial statements.
--------------------------------------------------------------------------------
5. Supplemental Cash Flows Information
--------------------------------------------------------------------------------
Sprint Spectrum's cash paid for interest, net of capitalized interest, totaled
$272 million in the first nine months of 2000 and $216 million in the same 1999
period.
--------------------------------------------------------------------------------
6. Recently Issued Accounting Pronouncement
--------------------------------------------------------------------------------
In December 1999, the SEC issued Staff Accounting Bulletin No. 101, "Revenue
Recognition in Financial Statements" (SAB 101). In June 2000, the SEC issued an
amendment to SAB 101 which delayed the effective date for registrants with
fiscal years that begin after December 15, 1999. The effective date for Sprint
Spectrum will be for the quarter ending December 31, 2000. The deferral of
telecommunication service activation fees and certain related costs are
specifically addressed in SAB 101 and Sprint Spectrum is completing the analysis
of the impact of SAB 101 on its financial statements. Based on this analysis,
SAB 101 is not expected to have a material impact on Sprint Spectrum's
consolidated financial statements.
In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative Instruments
and Hedging Activities." This standard requires all derivatives to be recorded
on the balance sheet as either assets or liabilities and be measured at fair
value. Gains or losses from changes in the derivative values are to be accounted
for based on how the derivative was used and whether it qualifies for hedge
accounting. When adopted in January 2001, this statement is not expected to have
a material impact on Sprint's consolidated financial statements.
<PAGE>
Part I.
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF Sprint Spectrum L.P.
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
--------------------------------------------------------------------------------
General
--------------------------------------------------------------------------------
In November 1998, Sprint Corporation purchased the remaining ownership interests
in Sprint Spectrum Holding Company, L.P.--Sprint Spectrum's general partner--and
MinorCo, L.P.--Sprint Spectrum's limited partner--from Tele-Communications,
Inc., Comcast Corporation and Cox Communications, Inc. At that time, Sprint
created the Sprint PCS Group, which consists of Sprint's wireless personal
communication services (PCS) operations, including Sprint Spectrum.
On July 13, 2000, Sprint and WorldCom, Inc. announced that the boards of
directors of both companies terminated their merger agreement, previously
announced in October 1999, as a result of regulatory opposition to the merger.
--------------------------------------------------------------------------------
Results of Operations
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Selected Operating Results
---------------------------------------------------------------------
Quarters Ended
September 30, Variance
---------------------------------- -------------------------------
2000 1999 $ %
---------------------------------------------- ---------------- ----------------- -- ------------- -----------------
(millions)
<S> <C> <C> <C> <C>
Net operating revenues $ 1,038 $ 574 $ 464 80.8%
---------------------------------------------- -- ------------- -- -------------- -- -------------
Operating expenses
Costs of services and products 481 386 95 24.6%
Selling, general and administrative 467 374 93 24.9%
Depreciation and amortization 237 201 36 17.9%
---------------------------------------------- -- ------------- -- -------------- -- -------------
Total operating expenses 1,185 961 224 23.3%
---------------------------------------------- -- ------------- -- -------------- -- -------------
Operating loss $ (147) $ (387) $ 240 62.0%
-- ------------- -- -------------- -- -------------
Operating income (loss) before depreciation
and amortization $ 90 $ (186) $ 276 NM
-- ------------- -- -------------- -- -------------
</TABLE>
<TABLE>
<CAPTION>
Selected Operating Results
---------------------------------------------------------------------
Year-to-Date
September 30, Variance
---------------------------------- -------------------------------
2000 1999 $ %
---------------------------------------------- ---------------- ----------------- -- ------------- -----------------
(millions)
<S> <C> <C> <C> <C>
Net operating revenues $ 2,699 $ 1,505 $ 1,194 79.3%
---------------------------------------------- -- ------------- -- -------------- -- -------------
Operating expenses
Costs of services and products 1,323 1,039 284 27.3%
Selling, general and administrative 1,222 1,001 221 22.1%
Depreciation and amortization 661 546 115 21.1%
---------------------------------------------- -- ------------- -- -------------- -- -------------
Total operating expenses 3,206 2,586 620 24.0%
---------------------------------------------- -- ------------- -- -------------- -- -------------
Operating loss $ (507) $ (1,081) $ 574 53.1%
-- ------------- -- -------------- -- -------------
Operating income (loss) before depreciation
and amortization $ 154 $ (535) $ 689 NM
-- ------------- -- -------------- -- -------------
</TABLE>
NM = Not Meaningful
<PAGE>
The wireless industry typically generates a higher number of subscriber
additions and handset sales in the fourth quarter of each year compared to the
remaining quarters. This is due to the use of retail distribution, which is
dependent on the holiday shopping season; the timing of new products and service
introductions; and aggressive marketing and sales promotions.
Sprint Spectrum markets its products through multiple distribution channels,
including its own retail stores as well as other retail outlets. Equipment sales
to one retail chain and the subsequent service revenues generated by sales to
its customers accounted for approximately 25% of net operating revenues in the
2000 third quarter and year-to-date periods. These revenues were approximately
30% of net operating revenues in the 1999 third quarter and year-to-date
periods.
Net Operating Revenues
Net operating revenues include subscriber revenues and sales of handsets and
accessory equipment. Subscriber revenues consist of monthly recurring charges,
usage charges and activation fees. Net operating revenues increased 81% in the
2000 third quarter and 79% in the 2000 year-to-date period from the same 1999
periods reflecting the significant growth in customers over the past 12 months.
Revenues from sales of handsets and accessories were approximately 13% of net
operating revenues in the 2000 third quarter and 14% in the 2000 year-to-date
period. These revenues as a percentage of net operating revenues were
approximately 16% in the 1999 third quarter and 18% of the 1999 year-to-date
period. As part of Sprint Spectrum's marketing plans, handsets are normally sold
at prices below Sprint Spectrum's cost.
Operating Expenses
Costs of services and products mainly include handset and accessory costs,
switch and cell site expenses and other network-related costs. These costs
increased 25% in the 2000 third quarter and 27% in the 2000 year-to-date period
from the same 1999 periods reflecting the significant growth in customers and
expanded market coverage, partly offset by a reduction in handset unit costs.
Selling, general and administrative (SG&A) expense mainly includes marketing
costs to promote products and services as well as salary and benefit costs. SG&A
expense increased 25% in the 2000 third quarter and 22% in the 2000 year-to-date
period from the same 1999 periods reflecting an expanded workforce to support
subscriber growth and increased marketing and selling costs.
Depreciation and amortization expense consists mainly of depreciation of network
assets and amortization of intangible assets. The intangible assets include PCS
licenses, which are amortized over 40 years, and microwave relocation costs,
which are amortized over the remaining life of the related PCS licenses.
Depreciation and amortization expense increased 18% in the 2000 third quarter
and 21% in the 2000 year-to-date period from the same 1999 periods reflecting
depreciation of the network assets placed in service during 2000 and 1999.
--------------------------------------------------------------------------------
Nonoperating Items
--------------------------------------------------------------------------------
Interest Expense
Sprint Spectrum's effective interest rate on long-term debt was 9.1% in the 2000
third quarter and 9.0% in the 2000 year-to-date periods compared to 9.0% in the
same 1999 periods.
Other Income (Expense), Net
Other income (expense) consisted of the following:
<TABLE>
<CAPTION>
Quarters Ended Year-to-Date
September 30, September 30,
----------------------------------- ----------------------------------
2000 1999 2000 1999
--------------------------------------------- --- ------------- -- -------------- -- ------------- --- -------------
(millions)
<S> <C> <C> <C> <C>
Gain on sales of assets $ - $ - $ 34 $ -
Other, net (2) 3 3 8
---------------------------------------------
--- ------------- -- -------------- -- ------------- --- -------------
Total $ (2) $ 3 $ 37 $ 8
--- ------------- -- -------------- -- ------------- --- -------------
</TABLE>
<PAGE>
Extraordinary Item
In the 1999 first quarter, Sprint Spectrum terminated its revolving credit
facilities and repaid, prior to scheduled maturities, the related outstanding
balance of $1.7 billion. These facilities had a weighted average interest rate
equal to the London Inter-Bank Offered Rate plus 40 basis points. This resulted
in a $33 million extraordinary loss. These short-term borrowings were repaid
with long-term financing provided by Sprint.
--------------------------------------------------------------------------------
Liquidity and Capital Resources
--------------------------------------------------------------------------------
Sprint Spectrum's liquidity and capital resources are managed by Sprint. Sprint
funds the Sprint PCS Group's, including Sprint Spectrum's, operating losses,
working capital and debt service requirements.
--------------------------------------------------------------------------------
Forward-Looking Information
--------------------------------------------------------------------------------
Sprint Spectrum includes certain estimates, projections and other
forward-looking statements in its reports, in presentations to analysts and
others, and in other publicly available material. Future performance cannot be
ensured. Actual results may differ materially from those in the forward-looking
statements. Some factors that could cause actual results to differ include:
o the effects of vigorous competition in the markets in which Sprint
Spectrum operates;
o the costs and business risks related to entering and expanding new
markets necessary to provide seamless service and new services;
o the ability of Sprint Spectrum to continue to grow a significant
market presence;
o the impact of any unusual items resulting from ongoing evaluations of
Sprint Spectrum's business strategies;
o unexpected results of litigation filed against Sprint Spectrum;
o the possibility of one or more of the markets in which Sprint Spectrum
competes being affected by changes in political, economic or other
factors such as monetary policy, legal and regulatory changes or other
external factors over which Sprint Spectrum has no control; and
o other risks referenced from time to time in Sprint's or Sprint
Spectrum's filings with the Securities and Exchange Commission.
The words "estimate," "project," "intend," "expect," "believe" and similar
expressions are intended to identify forward-looking statements. Forward-looking
statements are found throughout "Management"s Discussion and Analysis of
Financial Condition and Results of Operations". The reader should not place
undue reliance on forward-looking statements, which speak only as of the date of
this report. Sprint Spectrum is not obligated to publicly release any revisions
to forward-looking statements to reflect events after the date of this report or
unforeseen events.
<PAGE>
Part I.
Item 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES Sprint Spectrum L.P.
ABOUT MARKET RISK
Omitted under the provisions of General Instruction H.
Part II.
Other Information
Item 1. Legal Proceedings
There were no reportable events during the quarter ended September 30, 2000.
Item 2. Changes in Securities
Omitted under the provisions of General Instruction H.
Item 3. Defaults Upon Senior Securities
Omitted under the provisions of General Instruction H.
Item 4. Submission of Matters to a Vote of Security Holders
Omitted under the provisions of General Instruction H.
Item 5. Other Information
There were no reportable events during the quarter ended September 30, 2000.
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibits are filed as part of this report:
(3.1)Certificate of Limited Partnership of Sprint Spectrum L.P.
(incorporated by reference to Exhibit 3.2 to Sprint Spectrum's
Form S-1 Registration Statement, Registration No. 333-06609,
filed on June 21, 1996).
(3.2)Agreement of Limited Partnership of MajorCo Sub, L.P. (renamed
Sprint Spectrum L.P.), dated as of March 28, 1995, among MajorCo,
L.P. (renamed Sprint Spectrum Holding Company, L.P.) and MinorCo,
L.P. (incorporated by reference to Exhibit 3.6 to Sprint
Spectrum's Form S-1 Registration Statement, Registration No.
333-06609, filed on June 21, 1996).
(3.3)First Amendment to Agreement of Limited Partnership of Sprint
Spectrum L.P., effective as of February 29, 2000 (incorporated by
reference to Exhibit 3.3 to Sprint Spectrum's Annual Report on
Form 10-K for the year ended December 31, 1999).
(27) Financial Data Schedule
(a) September 30, 2000
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter ended September
30, 2000.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SPRINT SPECTRUM L.P.
-----------------------------------------------------------
(Registrant)
/s/ William J. Gunter
-----------------------------------------------------------
William J. Gunter
Senior Vice President and Chief Financial Officer
Principal Financial Officer
Date: November 13, 2000
<PAGE>
<TABLE>
<CAPTION>
Part I.
Item 1.
Sprint Spectrum Finance Corporation
--------------------------------------------------------------------------------------------------------------------
BALANCE SHEETS (Unaudited)
September 30, December 31,
2000 1999
--------------------------------------------------------------------------------------------------------------------
Liabilities and Shareholder's Equity
<S> <C> <C>
Payable to Sprint Spectrum $ 1,497 $ 1,497
-------------------------------
Shareholder's equity
Common stock, $1.00 par value; 1,000 shares authorized;
100 shares issued and outstanding 100 100
Accumulated deficit (1,597) (1,597)
-------------------------------
Total shareholder's equity (1,497) (1,497)
-------------------------------
Total $ - $ -
-------------------------------
</TABLE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Sprint Spectrum Finance Corporation (FinCo), a wholly owned subsidiary of Sprint
Spectrum L.P., was formed to be a co-obligor of certain securities issued by
Sprint Spectrum. FinCo has nominal assets and did not conduct any operations
during 2000 and 1999. As a result, the Statements of Operations and Statements
of Cash Flows have been omitted.
Part I.
Item 2.
--------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
FinCo had no operations during 2000 and 1999.
Part I.
Item 3.
--------------------------------------------------------------------------------
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Omitted under the provisions of General Instruction H.
<PAGE>
Part II.
Other Information
Item 1. Legal Proceedings
There were no reportable events during the quarter ended September 30, 2000.
Item 2. Changes in Securities
Omitted under the provisions of General Instruction H.
Item 3. Defaults Upon Senior Securities
Omitted under the provisions of General Instruction H.
Item 4. Submission of Matters to a Vote of Security Holders
Omitted under the provisions of General Instruction H.
Item 5. Other Information
There were no reportable events during the quarter ended September 30, 2000.
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibits are filed as part of this report:
(3.1)Certificate of Incorporation of Sprint Spectrum Finance
Corporation (incorporated by reference to Exhibit 3.3 to Sprint
Spectrum's Form S-1 Registration Statement, Registration No.
333-06609, filed on June 21, 1996).
(3.2)Bylaws of Sprint Spectrum Finance Corporation (incorporated by
reference to Exhibit 3.4 to Sprint Spectrum's Form S-1
Registration Statement, Registration No. 333-06609, filed on June
21, 1996).
(27) Financial Data Schedule
(a) September 30, 2000
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter ended September
30, 2000.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SPRINT SPECTRUM FINANCE CORPORATION
----------------------------------------------------------
(Registrant)
/s/ William J. Gunter
----------------------------------------------------------
William J. Gunter
Senior Vice President and Chief Financial Officer
Principal Financial Officer
Date: November 13, 2000
