EX-99.1 3 d01260exv99w1.txt EX-99.1 CONSOLIDATED STATEMENTS OF OPERATIONS EXHIBIT 99.1 QWEST COMMUNICATIONS INTERNATIONAL INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (DOLLARS AND SHARES IN MILLIONS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, -------------------------------- ------------------------------- 2002 2001 2002 2001 ------------ ------------ ------------ ------------ Operating revenues: Business services $ 1,481 $ 1,567 $ 4,569 $ 5,001 Consumer services 1,387 1,528 4,203 4,431 Wholesale services 905 1,268 2,920 4,415 Directory services 3 1 6 4 Network services and other revenues 21 10 57 56 ------------ ------------ ------------ ------------ Total operating revenues 3,797 4,374 11,755 13,907 ------------ ------------ ------------ ------------ Operating expenses: Cost of sales (exclusive of items shown separately below) 1,457 1,569 4,425 4,941 Selling, general and administrative 1,327 1,277 4,303 3,787 Depreciation 1,067 987 3,175 2,676 Depreciation adjustment for access lines returned to service -- -- -- 222 Goodwill and other intangible amortization 85 315 255 1,026 Restructuring, Merger-related and other charges 117 -- 117 624 ------------ ------------ ------------ ------------ Total operating expenses 4,053 4,148 12,275 13,276 ------------ ------------ ------------ ------------ Operating (loss) income (256) 226 (520) 631 ------------ ------------ ------------ ------------ Other expense-net: Interest expense-net 449 380 1,315 1,061 Loss on changes in market value of financial instruments -- 7 -- 7 Investment write-downs -- -- 1,202 3,247 Loss on sale of investments and fair market value adjustments, net 1 -- 22 -- Gain on sale of rural exchanges -- -- -- (50) Other expense-net 8 17 217 51 ------------ ------------ ------------ ------------ Total other expense-net 458 404 2,756 4,316 ------------ ------------ ------------ ------------ Loss before income taxes, discontinued operations and extraordinary item (714) (178) (3,276) (3,685) Income tax (benefit) provision (387) 104 (873) 108 ------------ ------------ ------------ ------------ Loss before discontinued operations and extraordinary item (327) (282) (2,403) (3,793) Income from discontinued operations, net of tax 113 140 349 364 Extraordinary item - early retirement of debt, net of tax -- -- 6 (65) ------------ ------------ ------------ ------------ Net loss $ (214) $ (142) $ (2,048) $ (3,494) ============ ============ ============ ============ Basic loss per share: Loss before discontinued operations and extraordinary item, net of tax $ (0.20) $ (0.17) $ (1.43) $ (2.28) (Loss) income from discontinued operations, net of tax 0.07 0.08 0.21 0.22 Extraordinary item - early retirement of debt, net of tax -- -- 0.00 (0.04) ------------ ------------ ------------ ------------ Basic loss per share $ (0.13) $ (0.09) $ (1.22) $ (2.10) ============ ============ ============ ============ Basic average shares outstanding 1,688 1,664 1,677 1,660 ============ ============ ============ ============ Diluted loss per share: Loss before discontinued operations and extraordinary item $ (0.20) $ (0.17) $ (1.43) $ (2.28) (Loss) income from discontinued operations (including a loss on disposal of $4 in 2002), net of tax 0.07 0.08 0.21 0.22 Extraordinary item - early retirement of debt, net of tax -- -- 0.00 (0.04) ------------ ------------ ------------ ------------ Diluted loss per share $ (0.13) $ (0.09) $ (1.22) $ (2.10) ============ ============ ============ ============ Diluted average shares outstanding 1,688 1,664 1,677 1,660 ============ ============ ============ ============ Dividends per share $ -- $ -- $ -- $ 0.05 ------------ ------------ ------------ ------------