-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FKn+BWPOt44Ur6zZMxECU3CPp4EZRheqQ/Cr5Bo0qxk5Hi2NuVDxHkECi5JxHG8w rua8St3GnnnORZwI3lLSFA== 0001054522-98-000017.txt : 19981027 0001054522-98-000017.hdr.sgml : 19981027 ACCESSION NUMBER: 0001054522-98-000017 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 19980930 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19981021 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: U S WEST INC /DE/ CENTRAL INDEX KEY: 0001054522 STANDARD INDUSTRIAL CLASSIFICATION: 4813 IRS NUMBER: 840953188 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-14087 FILM NUMBER: 98728574 BUSINESS ADDRESS: STREET 1: 1801 CALIFORNIA STREET STREET 2: SUITE 390 CITY: DENVER STATE: CO ZIP: 80202 BUSINESS PHONE: 3036722700 MAIL ADDRESS: STREET 1: 1801 CALIFORNIA STREET STREET 2: SUITE 390 CITY: DENVER STATE: CO ZIP: 80202 FORMER COMPANY: FORMER CONFORMED NAME: USW-C INC DATE OF NAME CHANGE: 19980204 8-K 1 3RD QUARTER EARNINGS RELEASE ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 21, 1998 U S WEST, Inc. (Formerly "USW-C, Inc.") (Exact name of registrant as specified in its charter)
A Delaware Corporation Commission File IRS Employer Identification (State of Incorporation) Number 1-14087 No. 84-0953188
1801 California Street, Denver, Colorado 80202 (Address of principal executive offices, including Zip Code) Telephone Number (303) 672-2700 (Registrant's telephone number, including area code) ================================================================================ Item 5. Other Events On October 21, 1998, U S WEST, Inc. (formerly "USW-C, Inc.") released its third quarter earnings results. The release and financial statements are attached hereto as Exhibits. Item 7. Exhibits Exhibit Description 27 Financial Data Schedule 99 Press Release issued October 21, 1998 concerning the earnings results of U S WEST, Inc. for the third quarter of 1998. 99A.1 Unaudited Combined Pro Forma Statements of Income of U S WEST, Inc. for the quarters and nine-month periods ended September 30, 1997 and 1998, respectively, filed in connection with the Press Release dated October 21, 1998. 99A.2 Unaudited Pro Forma Earnings Normalization Schedule of U S WEST, Inc. for the quarters and nine-month periods ended September 30, 1997 and 1998, respectively, filed in connection with the Press Release dated October 21, 1998. 99A.3 Unaudited Selected Consolidated Data of U S WEST, Inc. for the quarters and nine-month periods ended September 30, 1997 and 1998, respectively, filed in connection with the Press Release dated October 21, 1998. 99A.4 Unaudited Consolidated Statements of Income of U S WEST, Inc. for the quarters and nine-month periods ended September 30, 1997 and 1998, respectively, filed in connection with the Press Release dated October 21, 1998. 99A.5 Unaudited Consolidated Balance Sheets of U S WEST, Inc. for the nine months ended September 30, 1998 and the year ended December 31, 1997, filed in connection with the Press Release dated October 21, 1998. 99A.6 Unaudited Consolidated Statements of Cash Flows of U S WEST, Inc. for the nine-month periods ended September 30, 1997 and 1998, respectively, filed in connection with the Press Release dated October 21, 1998. 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 hereunto duly authorized. U S WEST, Inc. (Formerly "USW-C, Inc.") By: /s/ Thomas O. McGimpsey ------------------------------------------- Thomas O. McGimpsey Assistant Secretary Dated: October 21, 1998 EX-99 2 EXHIBIT 99 [U S WEST LOGO] Investor Relations NEWS FLASH October 21, 1998 - - -------------------------------------------------------------------------------- Note to investors: U S WEST (NYSE: USW) will hold a live teleconference call at 9:00 a.m. MDT (11:00 a.m. EDT) today to discuss third quarter, 1998 results. Participants should call 1-800-946-0712 by the scheduled start time. A replay will be available starting at noon MDT, through 6 p.m. MDT on Wednesday, Oct. 28 by calling 1-888-707-8792. - - -------------------------------------------------------------------------------- U S WEST CONTINUES EARNINGS GROWTH DURING THIRD QUARTER, 1998 -- Company Surpasses 100,000 Mark for PCS Subscribers During Quarter; Results Reflect Strong Demand in Core Business and New Data and Wireless Products; Earnings on Target Despite 2-Week Work Stoppage During Quarter -- DENVER - U S WEST (NYSE: USW) today announced third quarter, diluted earnings per share of $.75, up 4.2 percent from pro-forma, normalized third quarter, 1997 earnings. [Note: Net income and EPS figures used in this release are pro-forma and include full-quarter and year-to-date, 1997 and 1998 impacts from the U S WEST Dex transaction.] Results were driven by continued double-digit earnings growth in the core communications business. Results were offset by the company's growth initiatives - - - PCS, data and video - which, for now, are dilutive. The company released first-year-in-market figures for several of its new wireless and data products, for which Inter@ctive Week and NetWorld+Interop today named U S WEST the year's "Most Innovative Local Exchange Carrier": - During the quarter, the company's Advanced PCS wireless product reached a significant milestone, with first-year-in-market subscriber levels reaching 104,000, following its September 1997 launch. About 50 percent of subscribers are taking advantage of the first-in-the-nation integrated features. Although U S WEST has been the sixth entrant in all of its markets, Advanced PCS exceeded the industry benchmark of 1 percent penetration in its first full year of operation. Yesterday, the company launched the product in its sixth major market - Seattle (including the entire Puget Sound area) - with innovative Internet text messaging and wireless dialtone features also available in other U S WEST Advanced PCS markets. Advanced PCS now reaches 13.5 million POPs in U S WEST's region. - The company's Internet access service, U S WEST.net - approaching its first year in market - recently exceeded the 70,000-subscriber level. During the quarter, the company completed its 45-city, 14-state deployment of the service, which began in October 1997. Last week U S WEST introduced worldwide access for its U S WEST.net customers. - more - U S WEST Third Quarter Earnings - Page 2 - U S WEST expanded availability during the quarter for MegaBit Services, its high-speed ADSL (Asymmetric Digital Subscriber Line) data offering, which began rolling out across the region in May 1998. The September completion of the ADSL rollout followed a pilot deployment of an earlier version of the technology in Phoenix late last year. Central offices now equipped with this next-generation data service reach about 5.5 million lines in more than 40 cities. By year-end 1998, the company projects it will have between 20,000 and 25,000 customers, more than double the August 1998 projection of U S WEST customers by Forrester Research and near the total projection for 1998 by Forrester and The Yankee Group for the entire local telecommunications sector. - The company continued ramping up for a late-1998 offering of its Choice TV and OnLine VDSL (Very-high-speed Digital Subscriber Line) service in Phoenix. VDSL enables delivery of Internet access and cable-like video services over copper wire to a television or computer. "We met our financial commitments for the quarter and we're well positioned to capture new revenue streams in the future," said Sol Trujillo, president and CEO of U S WEST. "Our growth initiatives - particularly our wireless and data offerings - have really taken off. Despite a two-week work stoppage, our local revenue growth is steady, and we continue to rapidly build our ATM and IP networks." Trujillo acknowledged that the work stoppage did affect U S WEST's ability to provide new service to customers, but the company has caught up with most of the backlog. CWA approved the new contract on Oct. 9, with nearly 70 percent approval. "In the end, the company achieved its objectives in the bargaining process," said Trujillo. "This landmark agreement not only includes a solid wage package for our employees, it possesses a ground-breaking pay-for-performance bonus plan for more than 7,000 customer service operations technicians. It also includes an important benchmark healthcare plan and call monitoring and recording enhancements. Ultimately, these changes will benefit both our customers and shareholders by improving productivity and service." The company's 1995 labor agreement with CWA introduced the pay-for-performance concept with sales employees. Today, more than 85 percent of those employees take advantage of that voluntary program, and from 1995 to 1997 productivity among these sales employees rose between 24-36 percent in measures such as calls per rep per day and revenue per rep per day. The company achieved its third quarter results while absorbing significant costs related to expansion of new growth businesses, expenses associated with mandated interconnection and number portability, and Year 2000 expenses. During the quarter, the company saw continuing impacts from competition in its local telephony business. It now has re-sold more than 205,000 lines to competitors. - more - U S WEST Third Quarter Earnings - Page 3 During the quarter, the Iowa Utilities Board approved a three-year price plan in which the company agreed to cap certain rates, and which allowed U S WEST to be more competitive and streamlined in its new product introductions. Iowa becomes the seventh among U S WEST's 14 states to adopt some form of regulation based on price, not rate of return. Other third quarter highlights include: Volumes and Penetration: - The number of searches conducted on the U S WEST Dex Internet Yellow Pages grew by 126 percent, compared to third quarter 1997. In addition, independent market research indicates that this usage is meaningful traffic, which truly links buyers and sellers. In Denver, for instance, this research shows that more consumers use the Dex Internet Yellow Pages to actually follow up and contact merchants and make purchases than any other Internet Yellow Pages or local city guide site. Dex also began selling Web site design and local Internet banner advertising packages to small businesses, and is seeing strong sales results. In the first 90 days of sales, nearly 1,000 small businesses have purchased web site design from U S WEST Dex. - Residential penetration levels at the end of the quarter for the company's most popular custom calling features remained strong: Caller ID, 33.6 percent, Voice Messaging, 18.5 percent (tops in the industry) and Call Waiting, 35.7 percent. - The addition of 584,000 access lines (adjusted for the sales of selected rural exchanges) over the past 12 months for a normalized growth rate of 3.7 percent. The company said some of the slowdown in this growth rate for the quarter is attributable to the work stoppage. On an adjusted basis, business access lines grew at 3.9 percent; residential access lines grew at 3.6 percent; and residential additional lines grew 19.4 percent, reaching a penetration level of 15.2 percent. Special access services growth was 29.9 percent year-over-year. On a "voice-grade-equivalent" basis, access line growth was 9.4 percent. - On the small business side, total access lines equipped with Centrex services grew to nearly 1.4 million, a 50 percent year-over-year increase. Sales and Revenues: - Local service revenues rose by 6.4 percent year over year. Local service revenues on the consumer side were up 8.7 percent. - Published revenue growth for U S WEST Dex was 7.1 percent year over year. - Revenues from vertical services increased by nearly 10 percent for the quarter. - Revenue from U S WEST's data group, !NTERPRISE, grew 51 percent this quarter to $140 million. - more - U S WEST Third Quarter Earnings - Page 4 - A 19 percent increase in private line and special access revenues, which totaled $257 million for the third quarter - a reflection of the company's growing data networking services business and its ability to successfully compete in one of the most highly competitive segments of the telecommunications market. Costs and Margins: - Absorbed approximately $60 million in incremental expenses related to interconnection, number portability and Year 2000 during the quarter. U S WEST (NYSE: USW) provides a full range of telecommunications services - including wireline, wireless PCS, data networking, directory and information services - to more than 25 million customers nationally and in 14 western and midwestern states. More information about U S WEST can be found on the Internet at http://www.uswest.com. [Safe Harbor Statement: This document contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Factors that could cause actual results to differ from expectations include: (i) greater than anticipated competition from new entrants into the local exchange, intraLATA toll, wireless, data and directories markets; (ii) changes in demand for the Company's products and services, including optional custom calling features; (iii) higher than anticipated employee levels, capital expenditures, and operating expenses (such as costs associated with year 2000 remediation); (iv) the loss of significant customers; (v) pending regulatory actions in state jurisdictions; (vi) regulatory changes affecting the telecommunications industry, including changes that could have an impact on the competitive environment in the local exchange market; (vii) a change in economic conditions in the various markets served by the Company's operations that could adversely affect the level of demand for telephone, wireless, directories or other services offered by the Company; (viii) greater than anticipated competitive activity requiring new pricing for services; (ix) higher than anticipated start-up costs associated with new business opportunities; (x) increases in fraudulent activity with respect to wireless services; (xi) delays in the Company's ability to begin offering interLATA long-distance services; (xii) consumer acceptance of broadband services, including telephony, data, and wireless services; or (xiii) delays in the development of anticipated technologies, or the failure of such technologies to perform according to expectations.] ### Further information: Larry Thede, 303-896-3550; Rodney Miller, 303-896-3096; Hadley Evans, 303-896-5706. NOTE: This release and the financial statements will be available on the Internet after 7 a.m. (MDT) by accessing U S WEST's Internet site: www.uswest.com. EX-99 3 EXHIBIT 99A.1
COMBINED PRO FORMA STATEMENTS OF INCOME (1) U S WEST, INC. (UNAUDITED) Quarter Ended Nine Months Ended September 30, % September 30, % In millions 1998 1997 Change 1998 1997 Change - - --------------------- ------- ------- -------------- ------- ------ OPERATING REVENUES Local service $1,398 $ 1,314 6.4 $4,117 $ 3,739 10.1 Interstate access 693 663 4.5 2,102 2,028 3.6 Intrastate access 208 208 - 616 608 1.3 Long-distance network 199 231 (13.9) 595 721 (17.5) Directory services 315 296 6.4 935 879 6.4 Other services 299 248 20.6 809 682 18.6 ---------------- ---------------- Total operating rev. 3,112 2,960 5.1 9,174 8,657 6.0 ---------------- ---------------- OPERATING EXPENSES Employee-related 1,104 1,018 8.4 3,179 2,915 9.1 Other operating 567 539 5.2 1,798 1,517 18.5 Taxes other than income taxes 84 106 (20.8) 274 320 (14.4) Depreciation & amort 558 541 3.1 1,625 1,616 0.6 ---------------- ---------------- Total operating exp. 2,313 2,204 4.9 6,876 6,368 8.0 ---------------- ---------------- Operating income 799 756 5.7 2,298 2,289 0.4 Interest expense 172 165 4.2 495 500 (1.0) Gains on sales of rural telephone exchanges - 30 - - 77 - Other expense 19 12 58.3 77 51 51.0 ---------------- ---------------- Income before income taxes and extra- ordinary item 608 609 (0.2) 1,726 1,815 (4.9) Income tax provision 229 226 1.3 658 677 (2.8) ---------------- ---------------- Income before extraordinary item 379 383 (1.0) 1,068 1,138 (6.2) Extraordinary Item: Early extinguishment of debt - net of tax - (3) - - (3) - ---------------- ---------------- PRO FORMA NET INCOME $ 379 $ 380 (0.3)$1,068 $ 1,135 (5.9) ================ ================
5
COMBINED PRO FORMA STATEMENTS OF INCOME, (1) U S WEST, INC. CONTINUED (UNAUDITED) Quarter Ended Nine Months Ended In millions, except September 30, % September 30, % per share amounts 1998 1997 Change 1998 1997 Change - - --------------------- ------- ------- -------------- ------- ------ Pro forma basic average shares outstanding 501.8 499.6 0.4 501.5 498.7 0.6 ================ ================ Pro forma basic earnings per share: Income before extraordinary item $ 0.76 $ 0.77 (1.3) $ 2.13 $ 2.28 (6.6) Extraordinary item: Early extinguishment of debt - (0.01) - - (0.01) - ------- ------- ------- ------- Pro forma basic earnings per share $ 0.76 $ 0.76 - $ 2.13 $ 2.28 # (6.6) ================ ================ Pro forma diluted average shares outstanding 505.9 507.7 (0.4) 505.7 508.9 (0.6) ================ ================ Pro forma diluted earnings per share: Income before extraordinary item $ 0.75 $ 0.76 (1.3) $ 2.11 $ 2.25 (6.2) Extraordinary item: Early extinguishment of debt - (0.01) - - (0.01) - ------- ------- ------- ------- Pro forma diluted earnings per share $ 0.75 $ 0.75 - $ 2.11 $ 2.25 # (6.2) ================ ================ (1) The separation of U S WEST, Inc. ("Old U S WEST") into two independent companies, U S WEST, Inc. ("New U S WEST") and MediaOne Group, Inc.,(the "Separation") occurred on June 12, 1998 (the "Separation Date"). The pro forma results for the nine months ended September 30, 1998 and for the three and nine months ended September 30, 1997 give effect to the Separation, including the assumption of indebtedness and the issuance of shares in connection with the Dex transaction, as if the Separation had been consummated as of the beginning of the periods indicated. # Amount does not foot due to rounding of the individual components.
6 EX-99 4 EXHIBIT 99A.2
PRO FORMA EARNINGS NORMALIZATION SCHEDULE U S WEST, INC. (UNAUDITED) Quarter Ended Nine Months Ended In millions, except September 30, % September 30, % per share amounts 1998 1997 Change 1998 1997 Change - - --------------------- ------- ------- -------------- ------- ------ NORMALIZED PRO FORMA INCOME: Reported pro forma net income $ 379 $ 380 (0.3) $1,068 $ 1,135 (5.9) Adjustments: Rural exchange sales - (19) - - (48) - Separation costs - - - 68 - - Asset impairment - - 21 - - Extraordinary item- net of tax - 3 - - 3 - ---------------- ---------------- Normalized pro forma income $ 379 $ 364 4.1 $1,157 $ 1,090 6.1 ================ ================ NORMALIZED PRO FORMA BASIC EARNINGS PER SHARE: Reported pro forma basic earnings per share $ 0.76 $ 0.76 - $ 2.13 $ 2.28 (6.6) Adjustments: Rural exchange sales - (0.04) - - (0.10) - Separation costs - - - 0.13 - - Asset impairment - - - 0.04 - - Extraordinary item- net of tax - 0.01 - - 0.01 - ---------------- ---------------- Normalized pro forma basic earnings per share $ 0.76 $ 0.73 4.1 $ 2.31 #$ 2.19 5.5 ================ ================ NORMALIZED PRO FORMA DILUTED EARNINGS PER SHARE: Reported pro forma diluted earnings per share $ 0.75 $ 0.75 - $ 2.11 $ 2.25 (6.2) Adjustments: Rural exchange sales - (0.04) - - (0.10) - Separation costs - - - 0.13 - - Asset impairment - - - 0.04 - - Extraordinary item- net of tax - 0.01 - - 0.01 - ---------------- ---------------- Normalized pro forma diluted earnings per share $ 0.75 $ 0.72 4.2 $ 2.29 #$ 2.16 6.0 ================ ================ # Amount does not foot due to rounding of the individual components.
7 EX-99 5 EXHIBIT 99A.3
SELECTED CONSOLIDATED DATA (UNAUDITED) U S WEST, INC. Quarter Ended Nine Months Ended In millions, except September 30, % September 30, % per share amounts 1998 1997 Change 1998 1997 Change - - ------------------- ------- ------- -------------- ------- ------ Normalized access lines (thousands): Business 4,904 4,721 3.9 4,904 4,721 3.9 Consumer 11,509 11,108 3.6 11,509 11,108 3.6 Total 16,413 15,829 3.7 16,413 15,829 3.7 Access lines (thousands): Business 4,903 4,721 3.9 4,903 4,721 3.9 Consumer 11,505 11,108 3.6 11,505 11,108 3.6 Total access lines 16,408 15,829 3.7 16,408 15,829 3.7 Billed access minutes of use (millions): Interstate 14,707 13,760 6.9 43,868 41,085 6.8 Intrastate 3,107 2,960 5.0 9,206 8,702 5.8 Total minutes of use 17,814 16,720 6.5 53,074 49,787 6.6 Employees: U S WEST, Inc. 53,758 50,661 6.1 53,758 50,661 6.1 Telephone operations only 45,654 43,388 5.2 45,654 43,388 5.2 Telephone empl per 10,000 access lines 27.8 27.4 1.5 27.8 27.4 1.5 Dividends per common share (#1) $ 0.535$ 0.535 - $ 1.605$ 1.605 - Common shares outstanding (#1) 502.1 499.8 0.5 502.1 499.8 0.5 Capital expend $ 589 $ 712 (17.3) $ 1,920 $ 1,644 16.8 EBITDA (#2) 1,357 1,297 4.6 3,923 3,905 0.5 EBITDA margin 43.6% 43.8% - 42.8% 45.1% - Debt-to-capital ratio (#3) 56.0% 55.6%# - 56.0% 55.6%# - # As of December 31, 1997. # 1: Dividends per common share for the nine month period of 1998 and for the three and nine month periods of 1997, and common shares outstanding at September 30, 1997 are pro forma and assume the Separation had been consummated as of each period indicated. # 2: Earnings before interest, taxes, depreciation, amortization, and other (EBITDA). EBITDA also excludes gains on asset sales. # 3: Telephone operations only.
8 EX-99 6 EXHIBIT 99A.4
CONSOLIDATED STATEMENTS OF INCOME (1) U S WEST, INC. (UNAUDITED) Quarter Ended Nine Months Ended September 30, % September 30, % In millions 1998 1997 Change 1998 1997 Change - - ---------------------- --------------------- ------- ------- ------- OPERATING REVENUES Local service $1,398 $1,314 6.4 $4,117 $3,739 10.1 Interstate access 693 663 4.5 2,102 2,028 3.6 Intrastate access 208 208 - 616 608 1.3 Long-distance network 199 231 (13.9) 595 721 (17.5) Directory services 315 296 6.4 935 879 6.4 Other services 299 248 20.6 809 682 18.6 --------------- ---------------- Total operating rev. 3,112 2,960 5.1 9,174 8,657 6.0 --------------- ---------------- OPERATING EXPENSES Employee-related 1,104 1,018 8.4 3,179 2,915 9.1 Other operating 567 539 5.2 1,798 1,517 18.5 Taxes other than income taxes 84 106 (20.8) 274 320 (14.4) Depreciation & amort 558 541 3.1 1,625 1,616 0.6 --------------- ---------------- Total operating exp. 2,313 2,204 4.9 6,876 6,368 8.0 --------------- ---------------- Operating income 799 756 5.7 2,298 2,289 0.4 Interest expense 172 100 72.0 378 304 24.3 Gains on sales of rural telephone exchanges - 30 - - 77 - Other expense 19 12 58.3 77 51 51.0 --------------- ---------------- Income before taxes and extraordinary item 608 674 (9.8) 1,843 2,011 (8.4) Income tax provision 229 251 (8.8) 703 752 (6.5) --------------- ---------------- Income before extraordinary item 379 423 (10.4) 1,140 1,259 (9.5) Extraordinary Item: Early extinguishment of debt - net of tax - (3) - - (3) - --------------- ---------------- NET INCOME $ 379 $ 420 (9.8) $1,140 $1,256 (9.2) =============== ================ (1) The historical results presented reflect unaudited historical financial information as if the businesses that comprise New U S WEST operated as a separate entity for the periods presented. The effects of the Separation, including the assumption of indebtedness and the issuance of shares in connection with the Dex transaction, have been included in the historical results as of the Separation Date.
9 EX-99 7 EXHIBIT 99A.5
CONSOLIDATED BALANCE SHEETS U S WEST, Inc. (UNAUDITED) September 30, December 31, In millions 1998 1997 - - -------------------------------------- ------------- -------------- ASSETS Current assets: Cash and cash equivalents $ 22 $ 27 Accounts and notes receivable 1,735 1,717 Inventories and supplies 248 150 Deferred directory costs 261 257 Deferred tax asset 205 271 Prepaid and other 82 82 ------------- -------------- Total current assets 2,553 2,504 ------------- -------------- Gross property, plant and equipment 34,840 33,651 Less accumulated depreciation 20,342 19,343 ------------- -------------- Property, plant and equipment - net 14,498 14,308 Other assets 1,010 855 ------------- -------------- Total assets $ 18,061 $ 17,667 ============= ============== LIABILITIES AND SHAREOWNERS' EQUITY Current liabilities: Short-term debt $ 1,913 $ 695 Accounts payable 1,121 1,377 Dividends payable 269 259 Other 1,955 1,868 ------------- -------------- Total current liabilities 5,258 4,199 ------------- -------------- Long-term debt 7,920 5,020 Postretirement and other postemployment benefit obligations 2,556 2,534 Deferred taxes, credits and other 1,702 1,547 Shareowners' equity 625 4,367 ------------- -------------- Total liabilities and shareowners' equity $ 18,061 $ 17,667 ============== ==============
10 EX-99 8 EXHIBIT 99A.6
CONSOLIDATED STATEMENTS OF CASH FLOWS U S WEST, Inc. (UNAUDITED) Nine Months Ended September 30, In millions 1998 1997 - - ------------------------------------------------- -------- --------- OPERATING ACTIVITIES Net income $ 1,140 $ 1,256 Adjustments to net income: Depreciation and amortization 1,625 1,616 Gains on sales of rural telephone exchanges - (77) Deferred income taxes and amortization of investment tax credits 102 7 Changes in operating assets and liabilities: Accounts receivable (18) 40 Inventories, supplies and other current assets (49) (75) Accounts payable and accrued liabilities 116 245 Other - net 34 141 - - ------------------------------------------------- -------- --------- Cash provided by operating activities 2,950 3,153 - - ------------------------------------------------- -------- --------- INVESTING ACTIVITIES Expenditures for property, plant and equipment (1,937) (1,322) Proceeds from (payments on) disposals of property, plant and equipment (14) 27 Purchase of PCS licenses (18) (57) Proceeds from sales of rural telephone exchanges - 51 Other (39) - - - ------------------------------------------------- -------- --------- Cash (used for) investing activities (2,008) (1,301) - - ------------------------------------------------- -------- --------- FINANCING ACTIVITIES Net proceeds from (repayments of) short-term debt 1,519 (701) Net (repayments of) proceeds from issuance of Old U S WEST debt (198) 303 Proceeds from issuance of long-term debt 3,066 - Repayment of Old U S WEST debt in connection with the DEX Alignment (3,829) - Repayments of long-term debt (411) (412) Dividends paid on common stock (787) (733) Dividends paid to Old U S WEST (194) (243) Payment to Old U S WEST for debt refinancing costs (140) - Return of capital from Old U S WEST 13 - Proceeds from issuance of common stock 60 50 Purchases of treasury stock (46) - - - ------------------------------------------------- -------- --------- Cash (used for) financing activities (947) (1,736) - - ------------------------------------------------- -------- --------- CASH AND CASH EQUIVALENTS Increase (decrease) (5) 116 Beginning balance 27 80 - - ------------------------------------------------- -------- --------- Ending balance $ 22 $ 196 ================================================= ======== =========
11 EX-27 9 FDS --
5 0001054522 U S WEST, INC. 1,000,000 3-MOS 9-MOS DEC-31-1998 DEC-31-1998 JAN-01-1998 JAN-01-1998 SEP-30-1998 SEP-30-1998 22 22 0 0 1,735 1,735 0 0 248 248 2,553 2,553 34,840 34,840 20,342 20,342 18,061 18,061 5,258 5,258 7,920 7,920 0 0 0 0 0 0 625 625 18,061 18,061 3,112 9,174 3,112 9,174 0 0 0 0 2,313 6,876 0 0 172 495 608 1,726 229 658 379 1,068 0 0 0 0 0 0 379 1,068 0.76 2.13 0.75 2.11
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