EX-99.2 3 0003.txt EXHIBIT 99.2 Attachment A QWEST COMMUNICATIONS INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS PRO FORMA AND NORMALIZED (1) (In millions, except per share information) (Unaudited) Years Ended --------------------------- December 31, December 31, ------------ ------------ 1999 1998 ------------ ------------ Revenue: Commercial $7,388 $4,852 Consumer and small business 6,284 5,921 Directory 1,436 1,349 Switched access 1,486 1,614 ------------ ------------ Total revenue 16,594 13,736 Cost of sales 5,906 4,442 Selling, general and administrative 4,406 3,866 ------------ ------------ EBITDA 6,282 5,428 Depreciation 2,539 2,315 Goodwill and intangibles amortization 1,268 1,350 ------------ ------------ Earnings from operations 2,475 1,763 Interest expense and other, net 884 830 ------------ ------------ Earnings before income taxes 1,591 933 Income tax expense 943 866 ------------ ------------ Net earnings $648 $67 ============ ============ Diluted earnings per share $0.39 $0.04 ============ ============ Diluted cash earnings per share (2) $1.07 $0.90 ============ ============ Diluted weighted average shares outstanding 1,645 1,572 ============ ============ (1) Please see footnote on Attachment B. (2) Diluted cash earnings per share represent diluted earnings per share adjusted to add back the after- tax amortization of goodwill and other intangible assets resulting from the Merger.
Attachment B QWEST COMMUNICATIONS INTERNATIONAL INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS PRO FORMA AND NORMALIZED (1) (In millions, except per share information) (Unaudited) Three Months Ended ------------------------------------------------------------------------------------------ September 30, June 30, March 31, December 31, September 30, June 30, March 31, 2000 2000 2000 1999 1999 1999 1999 ------------- --------- --------- ------------ ------------- -------- --------- Revenue: Commercial $2,421 $2,287 $2,173 $2,134 $1,948 $1,697 $1,609 Consumer and small business 1,694 1,675 1,640 1,619 1,591 1,550 1,524 Directory 351 331 347 455 336 319 326 Switched access 299 361 357 359 365 381 381 --------- --------- --------- --------- --------- --------- --------- Total revenue 4,765 4,654 4,517 4,567 4,240 3,947 3,840 Cost of sales 1,703 1,647 1,624 1,635 1,554 1,389 1,328 Selling, general and administrative 1,198 1,213 1,169 1,273 1,055 1,039 1,039 --------- --------- --------- --------- --------- --------- --------- EBITDA 1,864 1,794 1,724 1,659 1,631 1,519 1,473 Depreciation 727 650 625 658 632 611 638 Goodwill and intangibles amortization 317 317 317 317 317 317 317 --------- --------- --------- --------- --------- --------- --------- Earnings from operations 820 827 782 684 682 591 518 Interest expense and other, net 319 259 253 243 230 222 189 --------- --------- --------- --------- --------- --------- --------- Earnings before income taxes 501 568 529 441 452 369 329 Income tax expense 270 313 290 253 257 225 208 --------- --------- --------- --------- --------- --------- --------- Net earnings $231 $255 $239 $188 $195 $144 $121 ========= ========= ========= ========= ========= ========= ========= Diluted earnings per share $0.14 $0.15 $0.14 $0.11 $0.12 $0.09 $0.07 ========= ========= ========= ========= ========= ========= ========= Diluted cash earnings per share (2) $0.30 $0.32 $0.31 $0.28 $0.29 $0.26 $0.25 ========= ========= ========= ========= ========= ========= ========= Diluted weighted average shares outstanding 1,695 1,684 1,679 1,670 1,658 1,636 1,616 ========= ========= ========= ========= ========= ========= =========
(1) The consolidated pro forma statements give retroactive effect as though the acquisition of U S WEST, Inc. by Qwest Communications International Inc. (the "Merger") had occurred as of the beginning of the periods presented. Shares outstanding and earnings per share have been restated to give retroactive effect to the exchange ratio effected in the Merger. In addition, results have been adjusted to eliminate the impacts of non-recurring items, such as merger costs, asset write-offs and impairments, gains/losses on the sale of investments and fixed assets, change in the market value of investments, one-time litigation charges, elimination of in-region long-distance activity and elimination of Qwest construction activity. The results have also been adjusted to reflect the change in accounting principle to recognize revenue and expenses for directory publishing under the "point of publication method" from the "amortization method" as if the change in accounting principle had been adopted as of January 1, 1999. The Merger has been accounted for as a purchase transaction. The purchase price allocation is preliminary and is subject to change. Accordingly, net earnings and earnings per share are subject to change. Certain reclassifications have been made to prior periods to conform to the current presentation. (2) Diluted cash earnings per share represent diluted earnings per share adjusted to add back the after- tax amortization of goodwill and other intangible assets resulting from the Merger.