-----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, JAfOXIXPaJAUUSuGRogfKWQE/Zvnuu3E8gz16gwq2tw79vcxS5ZBr+1/uW29gQxz njIaR4PAVI10kSEU4379bw== 0001054522-00-000018.txt : 20000502 0001054522-00-000018.hdr.sgml : 20000502 ACCESSION NUMBER: 0001054522-00-000018 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 20000331 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000501 FILER: COMPANY DATA: COMPANY CONFORMED NAME: U S WEST INC /DE/ CENTRAL INDEX KEY: 0001054522 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [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: 614258 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 FORM 8-K REPORTING 1ST QUARTER EARNINGS ================================================================================ 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): April 28, 2000 U S WEST, 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) (The Exhibits index is located on page 2 of this report) ================================================================================ Item 5. Other Events On April 28, 2000, U S WEST, Inc. released its first quarter earnings results. The release and financial statements are attached hereto as Exhibits. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits The following exhibits are filed as part of this current report on Form 8-K: Exhibit Number Exhibit 27 Financial Data Schedule 99.1 Press Release issued April 28, 2000 concerning the earnings results of U S WEST, Inc. for the first quarter of 2000. 99.2 Unaudited Pro Forma Consolidated Statements of Income of U S WEST, Inc. for the quarters ended March 31, 1999 and 2000, respectively, filed in connection with the Press Release dated April 28, 2000. 99.3 Unaudited Pro Forma Earnings Normalization Schedule of U S WEST, Inc. for the quarters ended March 31, 1999 and 2000, respectively, filed in connection with the Press Release dated April 28, 2000. 99.4 Unaudited Consolidated Balance Sheets of U S WEST, Inc. for the quarter ended March 31, 2000, and the year ended December 31, 1999, respectively, filed in connection with the Press Release dated April 28, 2000. 99.5 Unaudited Consolidated Pro Forma Statements of Cash Flows of U S WEST, Inc. for the quarters ended March 31, 1999 and 2000, respectively, filed in connection with the Press Release dated April 28, 2000. 99.6 Unaudited Selected Consolidated Data of U S WEST, Inc. for the quarters ended March 31, 1999 and 2000, respectively, filed in connection with the Press Release dated April 28, 2000. 99.7 Unaudited Consolidated Statements of Operations of U S WEST Communications, Inc. for the quarters ended March 31, 1999 and 2000, respectively, filed in connection with the Press Release dated April 28, 2000. 99.8 Unaudited Consolidated Balance Sheets of U S WEST Communications, Inc. for the quarter ended March 31, 2000, and the year ended December 31, 1999, respectively, filed in connection with the Press Release dated April 28, 2000. 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. By: /s/ Thomas O. McGimpsey ------------------------- Thomas O. McGimpsey Assistant Secretary Dated: April 28, 2000 EX-99.1 2 PRESS RELEASE April 28, 2000 - -------------------------------------------------------------------------------- Note to investors: Sol Trujillo, Chairman, President and CEO of U S WEST (NYSE: USW), will host a live teleconference call at 9 a.m. MDT (11 a.m. EDT) today to discuss first quarter 2000 results. U.S. participants call 1-888-569-5033 by the scheduled start time. International callers dial 719-457-2653. A replay will be available starting at Noon MDT, through 6 p.m. MDT on Friday, May 5 by calling 1-888-203-1112 and entering confirmation number 782807. International callers can reach the replay at 719-457-0820. - -------------------------------------------------------------------------------- U S WEST Reports Record Revenue Growth in First Quarter as Data, Wireless Sales Climb Revenue Growth at All-time High 6.6 Percent; "Growth Subscribers" Surpass 1.2 Million Mark; PCS Subscribers Reach 600,000; Broadband Subscribers Grow to Nearly 170,000 DENVER - Capitalizing on continued brisk expansion in its growth businesses - particularly its PCS Wireless business - U S WEST (NYSE: USW) announced today first quarter normalized, diluted earnings per share growth of 11.5 percent on a 12.9 percent rise in normalized net income. Propelling the $0.87 normalized diluted EPS and $445 million normalized net income was an all-time best 6.6 percent quarterly revenue growth rate. Local revenue growth of 9.5 percent was balanced between core (57 percent of the gain) and growth (43 percent) areas. During the quarter, subscriptions in the company's data (DSL, VDSL, and Internet access) and wireless (PCS) growth businesses jumped 230,000, surpassing the 1.2 million mark and up 167 percent from a year ago. Much of the jump stemmed from a dramatic rise in subscribers to U S WEST's Advanced PCS service, up almost 30 percent sequentially for the quarter to 600,000, a gain of about 135,000. Also during the quarter, the company reported that EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization and other) grew to $1.49 billion, up 7.4 percent from the year-ago period. "Our top-line growth figures show that we are hitting on all cylinders - through our growth initiatives and in our core business," said Sol Trujillo, chairman, president and CEO of U S WEST. "And much of that top-line success is flowing to the bottom line, despite incurring higher-than-anticipated dilution from our growth initiatives. In short, as we near the finish line in our Qwest merger, we're continuing the transformation of U S WEST into a growth-oriented vehicle." - more - U S WEST First Quarter Earnings - Page 2 QUARTERTLY Growth Product Highlights - ------------- --------------------------- ------------------- --------------------------------------------------------- Category Revenues (comparisons are Key Product Subscriber/Penetration Levels 1Q00 over 1Q99) - ------------- --------------------------- ------------------- --------------------------------------------------------- - ------------- --------------------------- ------------------- --------------------------------------------------------- Broadband o $508 million, up o U S o To date, more than 438,000, up 58,000 for the (Data & 34 percent WEST.net quarter and 121 percent over 1Q99. Video) o !NTERPRISE data o MegaBit o Total "Broadband" subscribers now number revenues were $267 Services 167,000, including all DSL, VDSL and Choice OnLine million, up 50 (DSL) customers. percent. o Total DSL data subscribers are 136,000. o 95 percent of customers self-install. o ChoiceTV o ChoiceTV (VDSL) subscribers grew to more than & OnLine 31,000. o 20,000 customers also subscribe to the company's HFC-based video offering in Omaha, Neb. - ------------- --------------------------- ------------------- --------------------------------------------------------- - ------------- --------------------------- ------------------- --------------------------------------------------------- PCS o ARPU of $54. o Advanced o Added almost 135,000 in the quarter for a PCS total of 600,000. o Total quarterly revenue of $105 o Penetration is now 4.0 percent. million, up 176 o percent. Integrated o 62 percent of users subscribe to at least one Features of the product's integrated features. - ------------- --------------------------- ------------------- --------------------------------------------------------- - ------------- --------------------------- ------------------- --------------------------------------------------------- Dex o 1Q00 directory o Internet o IYP usage up nearly 101 percent. revenues grew by 6.4 Yellow Pages percent. o 1Q00 Internet o Web Site revenues were up 241 Service o More than 17,000 Internet items were sold in percent over 1Q99. the quarter, up 127 percent over 1Q99. - ------------- --------------------------- ------------------- --------------------------------------------------------- - ------------- --------------------------- ------------------- --------------------------------------------------------- Bundled o Generated $130 o Custom o 1.6 million subscribers - almost double over Services million from bundled Choice 1Q99. service offerings in the quarter. o Total o At $79.95 per month, this offering - a basic Package line, custom calling features, Internet access and PCS - grew to 25,000 subscribers in the quarter. - ------------- --------------------------- ------------------- ---------------------------------------------------------
- more - U S WEST First Quarter Earnings - Page 3 "We continue to reach our growth milestones," said Trujillo. "And now, not only are we leading the industry in penetration for our DSL service, but our VDSL service is scaling up where we have it available. We also continue to have great success with vertical features in our core business - through a combination of innovative product rollouts and unique packaging. We now have 16 products with more than one million subscribers, and we've nearly doubled the ratio of features per line over the last four years." Other first quarter highlights include: Volumes and Penetration: o Remained the most densely penetrated of any DSL provider nationwide, with more than 14 percent of qualified on-line customers taking the service. U S WEST has 257 central offices DSL equipped and serves 529 subscribers in each of those COs - far more than any other DSL provider. o In the quarter, added almost 21,000 customers for several of its new privacy-related custom-calling features, including Caller ID with Privacy Plus and No Solicitation. U S WEST added 105,000 subscribers during a special April promotional campaign, bringing the total to 373,000. o Residential subscriber levels at the end of the quarter for the company's most popular custom calling features were: Caller ID, 40 percent; Call Waiting, 37 percent; Voice Messaging, 21 percent. o The number of primary rate ISDN lines in service increased 67 percent over last year. Total ISDN lines grew 22 percent. o Added 345,000 access lines over the past year. On a "voice-grade-equivalent" basis, business access line growth was 28 percent. o On the small business side, total access lines equipped with Centrex 21 services grew to 573,000, a 28 percent year-over-year increase. o During the quarter, the company saw continuing impacts from growth in its wholesale business reflected in both line growth and pricing. It now has re-sold nearly 578,000 lines to competitors, up from 444,000 lines at the end of first quarter, 1999. Recently, the company successfully negotiated DSL line-sharing agreements with a consortium of CLECs - helping pave the way for completion of its Qwest merger. Sales and Revenues: o Generated $105 million in quarterly revenue from PCS customers, up 176 percent over first quarter, 1999. More than 62 percent of Advanced PCS customers now subscribe to at least one of the company's integrated features, and these customers are less likely to look for a competitive offering. o Revenues from U S WEST.net and MegaBit Services grew 133 percent year-over-year. o Frame relay revenues increased by almost 28 percent quarter-over-quarter and ISDN revenues jumped by 22 percent quarter-over-quarter. - more - U S WEST First Quarter Earnings - Page 4 o A 20 percent increase compared with first quarter 1999 in private line and special access revenues, which totaled $332 million - 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. o U S WEST Dex grew EBITDA by 15.4 percent and net income by 16.9 percent year over year. o During the quarter, consumer revenues from vertical services increased by an industry-leading 16.5 percent, compared to first quarter 1999. o Toll revenues dropped by 39 percent during the quarter. IntraLATA long-distance revenues comprise just over 3 percent of U S WEST's total revenues. Costs and Margins: o Capital expenditures were $1.2 billion, down $160 million sequentially from fourth quarter, 1999. These investments continue to bolster service levels for traditional services and aid in deployment of new services. o Growth initiatives impacted EPS by $0.26 for the quarter versus $0.16 for first quarter, 1999. o Employee-related expenses increased by 4.0 percent during the quarter. This reflects increased headcount of more than 2,500 for the quarter, offset by a $49 million increase in the pension credit, driven by an improvement in U S WEST's pension investments. "We've been very aggressive in both our capital programs and in adding employees over the last 12 months, specifically to address growth opportunities and service improvements. And it's paying off," said Trujillo. "In most areas, our service is now the best it's been in more than five years." Three items affected U S WEST's reported net income and EPS during the quarter: o The company realized an after-tax gain of $49 million ($0.10 per share) during the quarter on the sale of certain Internet-related investments. o The company reported an after-tax loss of $81 million ($0.16 per share) to recognize the decline in market value of a portion of its stake in Global Crossing, Ltd. (NASDAQ: GBLX). In the fourth quarter, U S WEST monetized a portion of this stake, but maintained economic exposure to changes in Global Crossing's share price. The drop in Global Crossing's share price at the end of March led to this first quarter booking. o Also during the quarter, the company incurred about $9 million after tax ($0.02 per share) in merger-related expenses. These items caused U S WEST's reported net income to be $404 million, up 2.5 percent, and reported diluted EPS to be $0.79, up 1.3 percent. - more - U S WEST First Quarter Earnings - Page 5 About U S WEST U S WEST (NYSE: USW) is a leading broadband and communications service provider, with more than $13 billion in annual revenues. U S WEST leads the industry in deploying next-generation broadband ADSL and VDSL Internet access and data/video services; offers the nation's first and only `one-number' advanced wireless service that integrates customers' home or business phones with their wireless PCS; and provides multimedia advertising services, including Internet & print directories. The company has nearly 2 million miles of deployed fiber in the U.S., provides local exchange services to more than 25 million customers in 14 states, and provides wireless services to more than 600,000 customers and data services to more than 800,000 customers nationally. U S WEST is merging with Qwest Communications International Inc. The combination, to be named Qwest Communications International Inc., will create a communications powerhouse with a market capitalization of more than $70 billion, headquartered in Denver and employing about 64,000 people worldwide. U S WEST and Qwest will unite the nation's most innovative local, wireless and broadband communications firm with one of the world's most advanced fiber-optic networks and broadband Internet providers. Together, the two firms will have more than 3 million miles of deployed fiber in the U.S. and worldwide, 29 million customers and a local network that is 99.2 percent digitally switched. For more information about U S WEST, go to 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 these statements, we claim the safe harbor for "forward-looking statements" within the meaning of 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, causing loss of customers and increased price competition; (ii) changes in demand for U S WEST'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 interconnection); (iv) the loss of significant customers; (v) pending and future state and federal regulatory changes affecting the telecommunications industry, including changes that could have an impact on the competitive environment in the local exchange market; (vi) acceleration of the deployment of additional services and/or advanced new services to customers, such as broadband data, wireless (including the purchase of spectrum licenses) and video services, which would require substantial expenditure of financial and other resources; (vii) a change in economic conditions in the various markets served by U S WEST's operations; (viii) higher than anticipated start-up costs associated with new business opportunities; (ix) delays in U S WEST's ability to begin offering interLATA long-distance services; (x) consumer acceptance of broadband services, including telephony, data and wireless services; (xi) delays in the development of anticipated technologies, or the failure of such technologies to perform according to expectations; and (xii) timing and completion of the announced merger with Qwest Communications International Inc. and subequent integration of the businesses of the two companies. These cautionary statements by U S WEST should not be construed as exhaustive or as any admission regarding the adequacy of disclosures made by U S WEST. U S WEST cannot always predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. In addition, readers are urged to consider statements that include the terms "believes", "belief", "expects", "plans", "objectives", "anticipates", "intends", "targets", or the like to be uncertain and forward-looking. All cautionary statements should be read as being applicable to all forward-looking statements wherever they appear. U S WEST does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. - ### - Further information: Larry Thede, 303-896-3550; Martha Daniele Paine, 303-896-5706; Kent Evans, 303-896-3096. NOTE:This release and the financial statements will be available on the Internet after 6:30 a.m. (MDT) by accessing U S WEST's Internet site: www.uswest.com. EX-99.2 3 EXHIBIT 99.2 PRO FORMA CONSOLIDATED STATEMENTS OF INCOME (1)(2) U S WEST, INC. (UNAUDITED)
Quarter Ended In millions, except March 31, % per share amounts 2000 1999 Change - ----------------------------------- ------- -------- OPERATING REVENUES Local services $ 2,040 $ 1,863 9.5 Access services 709 671 5.7 Directory services 347 326 6.4 Long-distance services 107 174 (38.5) Other services 174 134 29.9 ------- -------- Total operating revenues 3,377 3,168 6.6 ------- -------- OPERATING EXPENSES Employee-related 1,167 1,122 4.0 Other operating 717 656 9.3 Depreciation & amort 586 602 (2.7) -------- -------- Total operating expenses 2,470 2,380 3.8 -------- -------- Operating Income 907 788 15.1 OTHER INCOME\EXPENSE Interest expense 211 153 37.9 Change in market value of Global Crossing derivatives 129 - - Gain on sales of investments (79) - - Other (income)expense (1) 1 (200.0) -------- -------- Income before income taxes 647 634 2.1 Income tax provision 243 240 1.3 -------- -------- NET INCOME $ 404 $ 394 2.5 ======== ======== Basic earnings per share $ 0.80 $ 0.78 2.6 ======== ======== Basic average shares outstanding 507.2 503.3 0.8 ======== ======== Diluted earnings per share $ 0.79 $ 0.78 1.3 ======== ======== Diluted average shares outstanding 514.3 508.1 1.2 ======== ======== (1) Certain reclassifications have been made to 1999 amounts to conform with the current presentation. (2) The results for 1999 include pro forma adjustments for the change in accounting principle to recognize revenues and expenses for directory publishing under the "point of publication" method from the "amortization" method, as if the company had always used this method. 6
EX-99.3 4 EXHIBIT 99.3 PRO FORMA EARNINGS NORMALIZATION SCHEDULE U S WEST, INC. (UNAUDITED)
Quarter Ended In millions, except March 31, % per share amounts 2000 1999 Change - ----------------------------------- -------- -------- NORMALIZED INCOME: Reported net income $ 404 $ 394 2.5 Adjustments: Merger related costs 9 - - Change in market value of Global Crossing derivatives 81 - - Gain on sales of investments (49) - - -------- -------- Normalized income $ 445 $ 394 12.9 ======== ======== NORMALIZED BASIC EARNINGS PER SHARE: Reported basic earnings per share $ 0.80 $ 0.78 2.6 Adjustments: Merger related costs 0.02 - - Change in market value of Global Crossing derivatives 0.16 - - Gain on sales of investments (0.10) - - -------- -------- Normalized basic earnings per share $ 0.88 $ 0.78 12.8 ======== ======== NORMALIZED DILUTED EARNINGS PER SHARE: Reported diluted earnings per share $ 0.79 $ 0.78 1.3 Adjustments: Merger related costs 0.02 - - Change in market value of Global Crossing derivatives 0.16 - - Gain on sales of investments (0.10) - - -------- -------- Normalized diluted earnings per share $ 0.87 $ 0.78 11.5 ======== ======== 7
EX-99.4 5 EXHIBIT 99.4 CONSOLIDATED BALANCE SHEETS U S WEST, Inc.
(UNAUDITED) March 31, December 31, In millions 2000 1999 - ------------------------------------------ ---------- ------------ ASSETS Current assets: Cash and cash equivalents $ 82 $ 78 Accounts receivable, net 2,355 2,455 Receivable from Global Crossing Ltd. sale of investment - 1,140 Inventories and supplies 302 272 Deferred directory costs 94 85 Deferred tax asset 31 46 Prepaid and other 185 116 ---------- ------------ Total current assets 3,049 4,192 Property, plant and equipment - net 16,932 16,404 Investments 1,085 1,290 Other assets - net 1,635 1,386 ---------- ------------ Total assets $ 22,701 $ 23,272 ========== ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term debt $ 2,353 $ 2,882 Accounts payable 1,503 1,700 Accrued expenses 1,698 1,840 Advance billings and deposits 354 344 ---------- ------------ Total current liabilities 5,908 6,766 Long-term debt 10,247 10,189 Postretirement and other postemployment benefit obligations 2,838 2,890 Deferred taxes, credits and other 2,393 2,172 Stockholders' equity 1,315 1,255 ---------- ------------ Total liabilities and stockholders' equity $ 22,701 $ 23,272 ========== ============ 8
EX-99.5 6 EXHIBIT 99.5 CONSOLIDATED PRO FORMA STATEMENTS OF CASH FLOWS U S WEST, Inc. (UNAUDITED)
Quarter Ended March 31, In millions 2000 1999(1) - ------------------------------------------------- -------- --------- OPERATING ACTIVITIES Net income $ 404 $ 394 Adjustments to net income: Depreciation and amortization 586 602 Loss on market value of derivatives 129 - Gain on sales of investments (79) - Deferred income taxes and amortization of investment tax credits 84 12 Changes in operating assets and liabilities: Accounts receivable 100 55 Inventories, supplies and other current assets (97) (116) Accounts payable, accrued expense and advance billings (181) 51 Other (139) (61) - ------------------------------------------------- -------- --------- Cash provided by operating activities 807 937 - ------------------------------------------------- -------- --------- INVESTING ACTIVITIES Expenditures for property, plant and equipment (1,277) (753) Payments on disposals of property, plant and equipment (9) (8) Proceeds from sale of Global Crossing stock 1,140 - Other 136 (11) - ------------------------------------------------- -------- --------- Cash used for investing activities (10) (772) - ------------------------------------------------- -------- --------- FINANCING ACTIVITIES Net(reductions)proceeds from short-term debt (520) 256 Repayments of long-term debt (32) (181) Proceeds from issuance of common stock 30 16 Dividends paid on common stock (271) (269) - ------------------------------------------------- -------- --------- Cash used for financing activities (793) (178) - ------------------------------------------------- -------- --------- CASH AND CASH EQUIVALENTS Increase(Decrease) 4 (13) Beginning balance 78 49 - ------------------------------------------------- -------- --------- Ending balance $ 82 $ 36 ================================================= ======== ========= (1) The results for 1999 include pro forma adjustments for the change in accounting principle to recognize revenues and expenses for directory publishing under the "point of publication" method from the "amortization" method, as if the company had always used this method. 9
EX-99.6 7 EXHIBIT 99.6 SELECTED CONSOLIDATED DATA U S WEST, INC. (UNAUDITED)
As of and for the Quarter Ended March 31, % 2000 1999 Change - ---------------------------------------- -------- ------- ------- Voice Grade Equivalent Lines in Service (with OC3/SST) (thousands): Business 23,575 18,416 28.0 Consumer 12,156 11,816 2.9 -------- ------- Total VGE 35,731 30,232 18.2 ======== ======= Access lines (thousands): Business 5,048 4,972 1.5 Consumer 12,068 11,799 2.3 -------- ------- Total access lines 17,116 16,771 2.1 ======== ======= Calendarized access minutes of use (millions): Interstate 16,156 15,565 3.8 Intrastate 3,457 3,163 9.3 -------- ------- Total minutes of use 19,613 18,728 4.7 ======== ======= Wireless/PCS: Revenues (millions) $ 105 $ 38 176.3 Subscribers (thousands) 600 219 174.0 ARPU (Dollars) $ 54 $ 54 0.0 Penetration 4.0% 1.6% 150.0 Data Revenues (millions): Frame Relay $ 50.1 39.3 27.5 Private Line LAN Interconnect 38.6 35.0 10.3 ISDN 63.7 52.3 21.8 USW.Net/Megabit(DSL) 31.7 13.6 133.1 Other !NTERPRISE 82.6 38.1 116.8 -------- ------- Subtotal !NTERPRISE 266.7 178.3 49.6 Other Special Access & Private Line 241.4 200.9 20.2 -------- ------- Total Data Revenues $ 508.1 $ 379.2 34.0 ======== ======= Total Special Access and Private Line (#1) $ 332.4 276.2 20.3 ======== ======= Additional Data Stats: XDSL Equipped Central Offices (C.O.) 257 215 19.5 Subscribers per XDSL Equipped C.O.'s 529 148 257.4 Employees: U S WEST, Inc. 60,785 55,324 9.9 Telephone operations only 48,406 47,007 3.0 Telephone empl per 10,000 access lines 28.3 28.0 1.1 Dividends per common share $ 0.535 $ 0.535 0.0 Common shares outstanding (millions) 507.6 503.5 0.8 Capital expend (millions) $ 1,241 $ 787 57.7 EBITDA (millions) (#2) 1,493 1,390 7.4 EBITDA margin 44.3% 43.9% 0.9 Debt-to-capital ratio (#3) 63.6% 57.4% 10.8 # 1: Includes Frame Relay, Private Line LAN Interconnect, ATM and Other Special Access and Private Line revenues. # 2: Earnings before interest, taxes, depreciation, amortization, and other (EBITDA). # 3: Telephone operations only.
EX-99.7 8 EXHIBIT 99.7 CONSOLIDATED STATEMENTS OF OPERATIONS U S WEST COMMUNICATIONS, INC. (UNAUDITED) (Telephone Operations Only)
Quarter Ended March 31, % In millions 2000 1999 Change - ------------------------------------------- ------- ------- -------- OPERATING REVENUES Local services $2,045 $1,871 9.3 Access services 710 672 5.7 Long-distance services 106 171 (38.0) Other services 90 74 21.6 ------- ------- Total operating revenues 2,951 2,788 5.8 ------- ------- OPERATING EXPENSES Employee-related 802 893 (10.2) Other operating 777 624 24.5 Depreciation & amort 564 585 (3.6) ------- ------- Total operating expenses 2,143 2,102 2.0 ------- ------- Operating income 808 686 17.8 Interest expense 119 89 33.7 Other expense 6 12 (50.0) ------- ------- Income before income taxes 683 585 16.8 Income tax provision 258 216 19.4 ------- ------- NET INCOME $425 $369 15.2 ======= =======
EX-99.8 9 EXHIBIT 99.8 CONSOLIDATED BALANCE SHEETS U S WEST COMMUNICATIONS, INC. (Telephone Operations Only)
(UNAUDITED) March 31, December 31, In millions 2000 1999 - ----------------------------------------- ------------ ------------- ASSETS Current assets: Cash and cash equivalents $ 66 $ 61 Accounts receivable, net 1,765 1,811 Inventories and supplies 217 211 Deferred tax asset 141 154 Prepaid and other 147 95 ------------ ------------- Total current assets 2,336 2,332 Property, plant and equipment - net 16,546 16,049 Other assets - net 1,478 1,597 ------------ ------------- Total assets $20,360 $19,978 ============ ============= LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities: Short-term debt $2,393 $1,684 Accounts payable 1,576 1,721 Accrued expenses 1,541 1,560 Advance billings and deposits 352 343 ------------ ------------- Total current liabilities 5,862 5,308 Long-term debt 5,464 5,408 Postretirement and other postemployment benefit obligations 2,406 2,462 Deferred taxes, credits and other 2,125 2,080 Stockholder's equity 4,503 4,720 ------------ ------------- Total liabilities and stockholder's equity $20,360 $19,978 ============ =============
EX-27 10 FDS --
5 0001054522 U S WEST, Inc. 1,000,000 3-MOS DEC-31-2000 JAN-01-2000 MAR-31-2000 82 0 2,355 0 302 3,049 38,806 21,874 22,701 5,908 0 0 0 0 1,315 22,701 3,377 3,377 0 0 2,470 0 211 647 243 0 0 0 0 404 .80 .79
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