EX-99.2 3 0003.txt PRO FORMA, NORMALIZED CONSOLIDATED STMTS Attachment A QWEST COMMUNICATIONS INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS PRO FORMA AND NORMALIZED (1) (2) (In Millions, Except Per Share Information) (Unaudited)
Years Ended ------------------------------------ December 31, December 31, 1999 1998 ----------------- ----------------- Revenue: Commercial $8,844 $6,466 Consumer and small business 6,078 5,827 Directory 1,436 1,349 Wireless 236 94 ----------------- ----------------- Total revenue 16,594 13,736 Cost of sales 5,906 4,442 ----------------- ----------------- Gross margin 10,688 9,294 Selling, general and administrative 4,406 3,866 ----------------- ----------------- EBITDA 6,282 5,428 Depreciation 2,616 2,315 Goodwill and intangibles amortization 1,350 1,350 ----------------- ----------------- Earnings from operations 2,316 1,763 Interest expense and other, net 884 830 ----------------- ----------------- Earnings before income taxes 1,432 933 Income tax expense 1,081 866 ----------------- ----------------- Net earnings $351 $67 ================= ================= Diluted earnings per share $0.21 $0.04 ================= ================= Diluted cash earnings per share (3) $1.03 $0.90 ================= ================= Diluted weighted average shares outstanding 1,645 1,572 ================= ================= (1) The results for the periods presented give affect to the merger between Qwest Communications International Inc. ("Qwest") and U S WEST, Inc. ("U S WEST") as though the merger had occurred as of January 1, 1998. In addition, results have been adjusted to eliminate the impacts of non-recurring items such as merger costs, the impact of the split of U S WEST and MediaOne Group, gains/losses on the sale of investments, decline in market value of investments, equity gain on KPNQwest investment, 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, 1998. (2) The merger of Qwest and U S WEST has been accounted for as a purchase transaction. The purchase price allocation is preliminary and is subject to the completion of an appraisal. Accordingly, net earnings and earnings per share are subject to change. (3) Diluted cash earnings per share represents diluted EPS adjusted to add back amortization of goodwill and other intangibles.
Attachment B QWEST COMMUNICATIONS INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS PRO FORMA AND NORMALIZED (1) (2) (In Millions, Except Per Share Information) (Unaudited) Three Months Ended -------------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, 2000 2000 1999 1999 1999 1999 ------------ ----------- -------------- --------------- ----------- ------------ Revenue: Commercial $2,667 $2,544 $2,484 $2,309 $2,069 $1,982 Consumer and small business 1,537 1,522 1,550 1,530 1,504 1,494 Directory 331 347 455 336 319 326 Wireless 119 104 78 65 55 38 ------------ ----------- -------------- --------------- ----------- ------------ Total revenue 4,654 4,517 4,567 4,240 3,947 3,840 Cost of sales 1,647 1,624 1,635 1,554 1,389 1,328 ------------ ----------- -------------- --------------- ----------- ------------ Gross margin 3,007 2,893 2,932 2,686 2,558 2,512 Selling, general and administrative 1,213 1,169 1,273 1,055 1,039 1,039 ------------ ----------- -------------- --------------- ----------- ------------ EBITDA 1,794 1,724 1,659 1,631 1,519 1,473 Depreciation 691 664 677 652 630 657 Goodwill and intangibles amortization 337 338 337 338 337 338 ------------ ----------- -------------- --------------- ----------- ------------ Earnings from operations 766 722 645 641 552 478 Interest expense and other, net 259 253 243 230 222 189 ------------ ----------- -------------- --------------- ----------- ------------ Earnings before income taxes 507 469 402 411 330 289 Income tax expense 325 304 314 286 249 232 ------------ ----------- -------------- --------------- ----------- ------------ Net earnings $182 $165 $88 $125 $81 $57 ============ =========== ============== =============== =========== ============ Diluted earnings per share $0.11 $0.10 $0.05 $0.08 $0.05 $0.04 ============ =========== ============== =============== =========== ============ Diluted cash earnings per share (3) $0.31 $0.30 $0.25 $0.28 $0.26 $0.24 ============ =========== ============== =============== =========== ============ Diluted weighted average shares 1,684 1,679 1,670 1,658 1,636 1,616 outstanding ============ =========== ============== =============== =========== ============ (1) The results for the periods presented give affect to the merger between Qwest Communications International Inc. ("Qwest") and U S WEST, Inc. ("U S WEST") as though the merger had occurred as of January 1, 1999. In addition, results have been adjusted to eliminate the impacts of non-recurring items such as merger costs, the impact of the split of U S WEST and MediaOne Group, gains/losses on the sale of investments, decline in market value of investments, equity gain on KPNQwest investment, 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. (2) The merger of Qwest and U S WEST has been accounted for as a purchase transaction. The purchase price allocation is preliminary and is subject to the completion of an appraisal. Accordingly, net earnings and earnings per share are subject to change. (3) Diluted cash earnings per share represents diluted EPS adjusted to add back amortization of goodwill and other intangibles.