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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-K/A
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1999
COMMISSION FILE NO. 0-23694
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NUCENTRIX BROADBAND NETWORKS, INC.
(Exact name of Registrant as specified in its charter)
DELAWARE
(State of Incorporation)
73-1435149
(I.R.S. Employer Identification No.)
200 CHISHOLM PLACE, SUITE 200
PLANO, TEXAS
(Address of principal executive offices)
75075
(Zip Code)
(972) 423-9494
(Registrant's telephone number, including area code)
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ITEM 6. SELECTED FINANCIAL DATA
The following table presents summary historical financial and other data
for Nucentrix. As a result of the application of Fresh Start Reporting,
financial information as of December 31, 1999, and for the period from the
Effective Date to December 31, 1999 (the "Successor Period"), is presented on a
different basis than the financial information as of and for each of the years
in the four year period ended December 31, 1998, and for the period from January
1, 1999, to the Effective Date (collectively, the "Predecessor Period"). See
"Reorganization" in Item 1. The selected historical financial data presented
below as of and for each of the years in the five year period ended December 31,
1999, is derived from the audited Consolidated Financial Statements of
Nucentrix. Historically, we have used our spectrum primarily to deliver
subscription television services and, therefore, our historical results are not
necessarily indicative of our future results as we implement our business
strategy as described in "Part 1., Item 1. Business." You should read the
financial data below together with "Item 7. Management's Discussion and Analysis
of Financial Condition and Results of Operations" and with Nucentrix's
Consolidated Financial Statements, including the notes thereto, included
elsewhere in this document.
<TABLE>
<CAPTION>
SUCCESSOR PREDECESSOR
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PERIOD FROM PERIOD FROM
EFFECTIVE DATE TO JANUARY 1, 1999, YEAR ENDED DECEMBER 31,
DECEMBER 31, TO EFFECTIVE -------------------------------------------
1999 DATE 1998 1997 1996 1995
----------------- ---------------- --------- --------- -------- --------
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C> <C> <C>
STATEMENT OF OPERATIONS DATA:
Revenues........................... $ 52,009 $ 18,466 $ 73,989 $ 78,792 $ 56,017 $ 15,300
Operating expenses:
System operation................. 23,767 8,599 35,790 39,596 21,255 4,893
Selling, general and
administrative................. 26,125 9,156 36,367 42,255 42,435 11,887
Depreciation and
amortization(1)(2)............. 19,167 6,104 39,550 65,112 39,323 6,234
Impairment of long-lived
assets(2)...................... -- -- 105,791 -- -- --
-------- -------- --------- --------- -------- --------
Total operating
expenses................ 69,059 23,859 217,498 146,963 103,013 23,014
-------- -------- --------- --------- -------- --------
Operating loss..................... (17,050) (5,393) (143,509) (68,171) (46,996) (7,714)
Interest income (expense), net..... 334 102 (34,436) (34,321) (18,166) (10,857)
Equity in losses of affiliates..... -- -- (30,340) (32,037) (18,612) (1,369)
Other income (expense)............. 483 2 (10) (54) 4,981 (247)
-------- -------- --------- --------- -------- --------
Loss before reorganization costs,
income taxes and extraordinary
item............................. (16,233) (5,289) (208,295) (134,583) (78,793) (20,187)
Reorganization costs(3)............ (1,011) (2,311) (3,266) -- -- --
-------- -------- --------- --------- -------- --------
Loss before income taxes and
extraordinary item............... (17,244) (7,600) (211,561) (134,583) (78,793) (20,187)
Income tax benefit................. -- -- -- -- 28,156 4,285
-------- -------- --------- --------- -------- --------
Loss before extraordinary item..... (17,244) (7,600) (211,561) (134,583) (50,637) (15,902)
Extraordinary item................. -- 173,783 -- -- (10,424) --
-------- -------- --------- --------- -------- --------
Net income (loss).................. $(17,244) $166,183 $(211,561) $(134,583) $(61,061) $(15,902)
======== ======== ========= ========= ======== ========
Net loss per new common
share -- basic and diluted(4).... $ (1.71) N/A N/A N/A N/A N/A
======== ======== ========= ========= ======== ========
</TABLE>
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<TABLE>
<CAPTION>
SUCCESSOR PREDECESSOR
----------------- -----------------------------------------------------------
PERIOD FROM PERIOD FROM
EFFECTIVE DATE TO JANUARY 1, 1999, YEAR ENDED DECEMBER 31,
DECEMBER 31, TO EFFECTIVE ----------------------------------------
1999 DATE 1998 1997 1996 1995
----------------- ---------------- ------- -------- -------- --------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C> <C> <C> <C>
OTHER DATA:
EBITDA(5)..................... $2,117 $ 711 $ 1,832 $ (3,059) $ (7,673) $ (1,480)
Net cash provided by (used in)
operating activities........ 5,593 2,449 (8,377) (41,646) (22,754) (6,474)
Net cash provided by (used in)
investing activities........ (3,949) (4,959) (2,038) 6,826 (34,169) (96,703)
Net cash provided by (used in)
financing activities........ (302) (576) (1,730) (1,955) 113,376 114,334
Capital Expenditures.......... 10,199 2,550 13,473 29,712 95,680 46,034
</TABLE>
<TABLE>
<CAPTION>
SUCCESSOR PREDECESSOR
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AS OF AS OF DECEMBER 31,
DECEMBER 31, ------------------------------------------
1999 1998 1997 1996 1995
------------ --------- -------- -------- --------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C> <C> <C>
BALANCE SHEET DATA:
Cash and cash equivalents..................... $ 28,932 $ 30,676 $ 42,821 $ 79,596 $ 23,143
Restricted assets............................. 650 1,011 10,333 30,007 18,739
Systems and equipment, net(2)................. 55,993 61,037 122,653 145,797 60,649
License and leased license investment,
net(2)...................................... 73,310 79,703 123,369 129,725 60,421
Total assets.................................. 168,811 186,032 372,134 515,364 205,405
Long-term debt, including current portion..... 16,516 16,277 308,196 303,538 141,652
Liabilities subject to compromise(3).......... -- 322,781 -- -- --
Total stockholders' equity (deficit).......... 130,045 (165,090) 46,408 180,847 51,688
</TABLE>
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(1) We changed the useful lives for depreciating the nonrecoverable portion of
subscriber installation costs in 1997 and 1996, and for amortizing license
and leased license costs and excess of cost over fair value of net assets
acquired in 1996. See Notes 1(g) and 1(h) to the Consolidated Financial
Statements.
(2) During the second and third quarters of 1998, in accordance with Statement
of Financial Accounting Standards ("SFAS") No. 121, we wrote down channel
licenses and leases, systems and equipment and other long-lived assets to
estimated fair value, which resulted in a non-cash impairment charge of
$105.8 million. See Note 2 to the Consolidated Financial Statements.
(3) We filed a voluntary petition for reorganization under Chapter 11 of the
U.S. Bankruptcy Code on December 4, 1998. Our Plan was confirmed on March
15, 1999, and became effective on April 1, 1999. Accordingly, we have
reclassified our Old Senior Notes and Old Convertible Notes, which were
subject to compromise in the reorganization, to "Liabilities Subject to
Compromise" at December 31, 1998. See Note 8 to the Consolidated Financial
Statements. Expenses related to our reorganization, such as professional
fees and administrative expenses, are classified as "Reorganization costs."
(4) Loss per basic and dilutive common share for each period presented has been
calculated using the provisions of SFAS No. 128, "Earnings per Share," which
is effective for periods ending after December 15, 1997, and requires
restatement of all prior period loss per share data. Earnings per share
information has not been presented for the Predecessor Period because
Nucentrix was recapitalized on the Effective Date, in connection with the
Plan, and accordingly, per share amounts are not comparable between the
Predecessor Period and the Successor Period. See Note 1(l) to the
Consolidated Financial Statements.
(5) "EBITDA" represents earnings before interest, taxes, depreciation and
amortization and non-recurring items. EBITDA is presented because it is a
widely accepted financial indicator of a company's ability to service and/or
incur indebtedness. However, EBITDA is not a financial measure determined
under generally accepted accounting principles and should not be considered
as an alternative to net income as a measure of operating results or to cash
flows as a measure of funds available for discretionary or other liquidity
purposes. EBITDA may be calculated differently from company to company.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
NUCENTRIX BROADBAND
NETWORKS, INC.
By: /s/ CARROLL D. MCHENRY
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Carroll D. McHenry
Chairman of the Board, President
and
Chief Executive Officer
Date: April 11, 2000
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