-----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, Pnlq/r7uS8mzK50oQIcBNv7klRWaLfJKDIqa9J8NLpZEF3ZcoR2/+bjuJAw2iiht a2VcNgtfhJtCc/+9FOZp7w== 0001054522-99-000042.txt : 19990811 0001054522-99-000042.hdr.sgml : 19990811 ACCESSION NUMBER: 0001054522-99-000042 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 19990723 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990726 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: 99669699 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 2ND QUARTER EARNINGS ANNOUNCEMENT ================================================================================ 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): July 23, 1999 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) (The Exhibits index is located on page 4 of this report) ================================================================================ Item 5. Other Events On July 23, 1999, U S WEST, Inc. released its second 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 Press Release issued July 23, 1999 concerning the earnings results of U S WEST, Inc. for the Second quarter of 1999. 99A.1 Unaudited Consolidated Statements of Income of U S WEST, Inc. for the quarters and six-month periods ended July 30, 1998 and 1999, respectively, filed in connection with the Press Release dated July 23, 1999. 99A.2 Unaudited Consolidated Balance Sheets of U S WEST, Inc. for the quarter and six-month period ended June 30, 1999 and the year ended December 31, 1998, respectively, filed in connection with the Press Release dated July 23, 1999. 99A.3 Unaudited Consolidated Statements of Cash Flows of U S WEST, Inc. for the six-month periods ended June 30, 1998 and 1999, respectively, filed in connection with the Press Release dated July 23, 1999. 99A.4 Unaudited Selected Consolidated Data of U S WEST, Inc. for the quarters and six-month periods ended June 30, 1998 and 1999, respectively, filed in connection with the Press Release dated July 23, 1999. 99A.5 Unaudited Consolidated Statements of Operations of U S WEST Communications, Inc. for the quarters and six-month periods ended June 30, 1998 and 1999, respectively, filed in connection with the Press Release dated July 23, 1999 99A.6 Unaudited Consolidated Balance Sheets of U S WEST Communications, Inc. for the six-month period ended June 30, 1999 and the year ended December 31, 1998, respectively, filed in connection with the Press Release dated July 23, 1999.
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: July 23, 1999 EXHIBIT INDEX
Exhibit Number Exhibit 27 Financial Data Schedule 99 Press Release issued July 23, 1999 concerning the earnings results of U S WEST, Inc. for the Second quarter of 1999. 99A.1 Unaudited Consolidated Statements of Income of U S WEST, Inc. for the quarters and six-month periods ended July 30, 1998 and 1999, respectively, filed in connection with the Press Release dated July 23, 1999. 99A.2 Unaudited Consolidated Balance Sheets of U S WEST, Inc. for the quarter and six-month period ended June 30, 1999 and the year ended December 31, 1998, respectively, filed in connection with the Press Release dated July 23, 1999. 99A.3 Unaudited Consolidated Statements of Cash Flows of U S WEST, Inc. for six-month periods ended June 30,1998 and 1999, respectively, filed in connection with the Press Release dated July 23, 1999. 99A.4 Unaudited Selected Consolidated Data of U S WEST, Inc. for the quarters and six-month periods ended June 30, 1998 and 1999, respectively, filed in connection with the Press Release dated July 23, 1999. 99A.5 Unaudited Consolidated Statements of Operations of U S WEST Communications, Inc. for the quarters and six-month periods ended June 30, 1998 and 1999, respectively, filed in connection with the Press Release dated July 23, 1999 99A.6 Unaudited Consolidated Balance Sheets of U S WEST Communications, Inc. for the six-month period ended June 30, 1999 and the year ended December 31, 1998, respectively, filed in connection with the Press Release dated July 23, 1999.
EX-99 2 EXHIBIT 99 July 23, 1999 - - -------------------------------------------------------------------------------- Note to investors: Sol Trujillo, Chairman, President and CEO of U S WEST (NYSE: USW), will host a live teleconference call at 9:00a.m. MDT (11:00 a.m. EDT) today to discuss second quarter, 1999 results. U.S. participants should call 1-800-967-7141 by the scheduled start time. International callers should dial 719-457-2630. A replay will be available starting at noon MDT, through 6p.m. MDT on Friday, July 30 by calling 1-888-203-1112 and enter-ing confirmation number 726120. International callers can reach the replay at 719-457-0820. - - -------------------------------------------------------------------------------- U S WEST Second Quarter Earnings Rise 9.2 Percent -- PCS Subscribers Up Five Fold Year Over Year; Surpasses 50,000 DSL Subscribers -- DENVER - Riding a near 7 percent revenue growth rate, U S WEST (NYSE: USW) today announced second quarter diluted earnings per share of $.83, up $.07 or 9.2 percent from pro forma, normalized second quarter 1998 earnings. Revenue growth increased to 6.7 percent during the quarter, driven primarily by the continued momentum of the company's growth products: PCS, data and Internet-related services. Also aiding the quarter's results were moderating growth in expenses, which fell to a normalized rate of 7.3 percent, from a first quarter growth rate of 8.9 percent. Quarterly results were partially offset by increasing investment in growth areas. As announced earlier this week, U S WEST has entered into a merger agreement with Qwest Communications International. "We had an exciting quarter at U S WEST," said Sol Trujillo, president and CEO. "In addition to announcing our merger with Qwest, we've also announced quarterly results that show clear operational momentum. And the strength of those results underscores our desire to link up with a partner that can help broaden the scale and scope of our offerings. "I'm particularly pleased with the progress of our growth initiatives," he added. "Those initiatives -- coupled with quarterly sales of nearly 250,000 additional Caller ID and voice messaging features -- are now driving much of the revenue growth in our business." - more - U S WEST Second Quarter Earnings - Page 2 The following are key product and service highlights from U S WEST's growth businesses: Growth Product Highlights
- - ------------ ------------------------------ ------------------- ----------------------------------------------- Division Revenues (comparisons are Key Product Subscriber/Penetration Levels Q299 over Q298) - - ------------ ------------------------------ ------------------- ----------------------------------------------- - - ------------ ------------------------------ ------------------- ----------------------------------------------- Data o $410 million, up 37 o U S o To date, total of 225,000, up almost percent WEST.net 23,000 for the quarter and 380 percent over 2Q98 totals. o !NTERPRISE data revenues were $203 o MegaBit o Added nearly 14,000 for the quarter. million for the (DSL) To date at 50,000 total. quar-ter, up 67 percent. services - - ------------ ------------------------------ ------------------- ----------------------------------------------- - - ------------ ------------------------------ ------------------- ----------------------------------------------- PCS o ARPU of $58. o Advanced o Added nearly 65,000 during the PCS quarter for a total of almost 285,000. o Total quarterly revenue of $57 o Now has a weighted average million, up 250 percent. penetration of 2.2 percent. o 50 percent of users now subscribe to o at least one of the product's integrated Integrated features features - - ------------ ------------------------------ ------------------- ----------------------------------------------- - - ------------ ------------------------------ ------------------- ----------------------------------------------- Dex o E-Commerce-related o Internet o Has sold web sites to nearly 6,000 revenues grew to nearly Yellow Pages small businesses since the service was $5 million. introduced in 1998. o Represents a 53 o percent increase in E-Commerce o Year to date, Dex has sold nearly Internet, audio and 21,000 Internet advertising items, which database marketing also include Web site and e-mail links services. and local banner ads. - - ------------ ------------------------------ ------------------- -----------------------------------------------
Total "growth subscribers" (customers for the company's PCS, DSL and Internet access service) were up more than 100,000 for the quarter -- almost double second quarter 1998 -- and now total 550,000. Investment in growth initiatives negatively impacted EPS by $0.17 for the quarter versus $0.10 for second quarter, 1998. U S WEST Dex, the company's directory and Internet Yellow Pages business, continued its strong performance in the second quarter, with double-digit net income growth. Dex grew revenues at 7.4 percent compared to second quarter last year, led by top-line growth in Internet advertising and audio services as well as healthy print Yellow Pages results. Additionally, the company's Internet Yellow Pages site (http://uswestdex.com) experienced tremendous usage growth during the quarter, up more than 23 percent over the first quarter. - more - U S WEST Second Quarter Earnings - Page 3 During the quarter, the company saw continuing impacts from competition in its local telephony business in both line growth and pricing. It now has re-sold nearly 475,000 lines to competitors, up from 444,000 lines at the end of first quarter. During the quarter, U S WEST announced an agreement to sell 530,000 (about 3 percent of its total access lines) access lines throughout its region to Citizen's Utilities. Other second quarter highlights include: Volumes and Penetration: o Residential subscriber levels at the end of the quarter for the company's most popular custom calling features continued to grow, with Caller ID and Call Waiting both now at 37 percent penetration and Voice Messaging now at 20 percent penetration (tops in the industry). o So far this year, the company has signed up 120,000 customers -- most of them during the second quarter -- for several of its new privacy-related custom-calling features, including Caller ID with Privacy Plus and No Solicitation. o Sales of the company's bundled "Custom Choice" package for residential customers surpassed 910,000 during the quarter. o The addition of 510,000 access lines over the past 12 months for a growth rate of 3.1 percent. On a "voice-grade-equivalent" basis, business access line growth was 14.2 percent. o On the small business side, total access lines equipped with Centrex 21 services grew to 492,000, a 63 percent year-over-year increase. Sales and Revenues: o An 18.8 percent increase compared with second quarter 1998 in private line and special access revenues, which totaled $291 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 During the quarter, consumer revenues from vertical services increased by more than 17 percent, compared to second quarter 1998. o Frame Relay revenues increased by nearly 38 percent quarter-over-quarter and ISDN revenues jumped by 73 percent quarter-over-quarter. o Toll revenues dropped by 22 percent during the quarter, driven partially by five states moving to 1+ pre-subscription during the first quarter and Iowa moving to 1+ pre-subscription in April. - more - U S WEST Second Quarter Earnings - Page 4 Costs and Margins: o Absorbed approximately $117 million in expenses related to interconnection, number portability and Year 2000 compliance during the quarter. To date, the company has spent $200 million in expense and capital on Y2K. It expects to spend another $75 million during the balance of 1999. o Capital expenditures were up 21 percent during the second quarter, rising from $809 million in second quarter to $981 million this quarter. For the year, capital expenditures are up 33 percent at $1.8 billion. Full-year capital expenditures are now expected to be approximately $4.0 billion. o Employee-related expenses grew by 7.9 percent during the quarter, due in large part to efforts related to keeping up with service demands. These expenses include the addition of 400 employees during the quarter and nearly 2,200 since second quarter, 1998 -- more than 1,100 of which have been added specifically to keep up with service demands. 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 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 and year 2000 remediation); (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) a change in economic conditions in the various markets served by U S WEST's operations; (vii) higher than anticipated start-up costs associated with new business opportunities; (viii) delays in U S WEST's ability to begin offering interLATA long-distance services; (ix) consumer acceptance of broadband services, including telephony, data and wireless services; (x) delays in the development of anticipated technologies, or the failure of such technologies to perform according to expectations; and (xi) timing and completion of the recently announced merger with Qwest Communications International Inc. 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 7 a.m. (MDT) by accessing U S WEST's Internet site: www.uswest.com. EX-99 3 EXHIBIT 99A.1
CONSOLIDATED STATEMENTS OF INCOME (1) U S WEST, INC. (UNAUDITED) Quarter Ended Six Months Ended In millions, except June 30, % June 30, % per share amounts 1999 1998 (2) Change 1999 1998 (2) Change - - ------------------- -------- --------- ------ ------- --------- ------ OPERATING REVENUES Local services $ 1,933 $ 1,756 10.1 $ 3,800 $ 3,486 9.0 Access services 688 671 2.5 1,369 1,336 2.5 Long-distance services 156 200 (22.0) 330 404 (18.3) Directory services 333 310 7.4 659 616 7.0 Other services 148 116 27.6 282 220 28.2 ------- -------- ----- ------- Total operating rev. 3,258 3,053 6.7 6,440 6,062 6.2 ------- -------- ----- ------- OPERATING EXPENSES Employee-related 1,153 1,069 7.9 2,278 2,075 9.8 Other operating 677 636 6.4 1,339 1,292 3.6 Depreciation & amort 573 535 7.1 1,175 1,067 10.1 ------ ------- ----- ----- Total operating exp. 2,403 2,240 7.3 4,792 4,434 8.1 ------ ------- ----- ----- OPERATING INCOME 855 813 5.2 1,648 1,628 1.2 Interest expense 163 160 1.9 316 323 (2.2) Other expense 13 33 (60.6) 14 58 (75.9) ------ ------- ----- ----- Income before income taxes 679 620 9.5 1,318 1,247 5.7 Income tax provision 258 235 9.8 500 469 6.6 ------ ------- ----- ----- NET INCOME $ 421 $ 385 9.4 $ 818 $ 778 5.1 ====== ======= ===== ===== Basic earnings per share $ 0.84 $ 0.77 9.1 $ 1.62 $ 1.55 4.5 ====== ======= ===== ===== Basic average shares outstanding 503.9 501.5 0.5 503.6 501.4 0.4 ====== ======= ===== ===== Diluted earnings per share $ 0.83 $ 0.76 9.2 $ 1.61 $ 1.54 4.5 ====== ======= ===== ===== Diluted average shares outstanding 508.2 505.6 0.5 508.3 505.5 0.6 ====== ======= ====== ===== (1) The separation of U S WEST, Inc. into two independent companies, U S WEST, Inc. ("New U S WEST") and MediaOne Group, Inc.,(the "Separation") occurred on June 12, 1998. The results for the quarter and six months ended June 30, 1998 give effect to the Separation as if the business that comprised New U S WEST operated as a separate entity for the entire periods presented. Additionally, the results of operations include pro forma adjustments for the assumption of indebtedness and the issuance of shares in connection with the alignment of the directory business with New U S WEST, as if the Separation had been consummated as of the beginning of the periods indicated. (2) Net income for the quarter and six months ended June 30, 1998 excludes $89 of after tax charges associated with the Separation and an asset impairment, consisting of $129 of other operating expense, net of $40 of income tax expense.
EX-99 4 EXHIBIT 99A.2
CONSOLIDATED BALANCE SHEETS U S WEST, Inc. (Unaudited) June 30, December 31, In millions 1999 1998 - - ------------------------------------- ------------ -------------- ASSETS Current assets: Cash and cash equivalents $ 122 $ 49 Accounts receivable, net 1,730 1,743 Inventories and supplies 264 197 Deferred directory costs 272 274 Deferred tax asset 153 151 Prepaid and other 129 78 ------------ -------------- Total current assets 2,670 2,492 Property, plant and equipment - net 15,480 14,908 Other assets - net 3,741 1,007 ------------ -------------- Total assets $ 21,891 $ 18,407 ============ ============== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term debt $ 4,218 $ 1,277 Accounts payable 1,352 1,347 Accrued expenses 1,951 1,702 Advance billings and deposits 381 370 ------------ -------------- Total current liabilities 7,902 4,696 Long-term debt 8,458 8,642 Postretirement and other postemployment benefit obligations 2,634 2,643 Deferred taxes, credits and other 1,831 1,671 Stockholders' equity 1,066 755 ------------ -------------- Total liabilities and stockholders' equity $ 21,891 $ 18,407 ============ ==============
EX-99 5 EXHIBIT 99A.3
CONSOLIDATED STATEMENTS OF CASH FLOWS U S WEST, Inc. (UNAUDITED) Six Months Ended June 30, In millions 1999 1998 - - ----------------------------------------------- ------- -------- OPERATING ACTIVITIES Net income $ 818 $ 778 Adjustments to net income: Depreciation and amortization 1,175 1,067 Deferred income taxes and amortization of investment tax credits 74 89 Changes in operating assets and liabilities: Accounts receivable 13 11 Inventories, supplies and other current assets (120) (88) Accounts payable, accrued expense and advance billings 159 (93) Other (50) 55 - - ----------------------------------------------- ------- -------- Cash provided by operating activities 2,069 1,819 - - ----------------------------------------------- ------- -------- INVESTING ACTIVITIES Expenditures for property, plant and equipment (1,681) (1,283) Proceeds from (payments on) disposals of property, plant and equipment (18) 34 Investment in Global Crossing Ltd. common stock (2,464) - Other (14) (52) - - ----------------------------------------------- ------- -------- Cash used for investing activities (4,177) (1,301) - - ----------------------------------------------- ------- -------- FINANCING ACTIVITIES Net proceeds from short-term debt 2,940 2,060 Proceeds from issuance of long-term debt 17 3,066 Repayments of long-term debt (280) (83) Net repayments of Old U S WEST short-term debt - (198) Repayment of Old U S WEST debt in connection with the DEX Alignment - (3,829) Proceeds from issuance of common stock 42 44 Dividends paid on common stock (538) (519) Dividends paid to Old U S WEST - (183) Payment to Old U S WEST for debt refinancing costs - (140) Return of capital from Old U S WEST - 13 Purchases of treasury stock - (46) - - ----------------------------------------------- ------- ------- Cash used for financing activities 2,181 185 - - ----------------------------------------------- ------- ------ CASH AND CASH EQUIVALENTS Increase 73 703 Beginning balance 49 27 - - ----------------------------------------------- ------- ------- Ending balance $ 122 $ 730 =============================================== ======= =======
EX-99 6 EXHIBIT 99A.4
SELECTED CONSOLIDATED DATA U S WEST, INC. (UNAUDITED) Quarter Ended Six Months Ended In millions, except June 30, % June 30, % per share amounts 1999 1998 Change 1999 1998 Change - - ------------------------------- ------ ------ ------ ------ ------ --------- Access lines (thousands): Business 4,986 4,884 2.1 4,986 4,884 2.1 Consumer 11,830 11,422 3.6 11,830 11,422 3.6 ------ ------ ------ ------ --------- Total access lines 16,816 16,306 3.1 16,816 16,306 3.1 Billed access minutes of use (millions): Interstate 15,415 14,799 4.2 30,720 29,161 5.3 Intrastate 3,216 3,116 3.2 6,355 6,099 4.2 ------ ------ ------ ------ --------- Total minutes of use 18,631 17,915 4.0 37,075 35,260 5.1 Wireless/PCS: Revenues (millions) $ 57 $ 16 256.3 $ 97 $ 25 288.0 Subscribers (thousands) 284 54 425.9 284 54 425.9 Penetration 2.1% 0.7% 200.0 2.1% 0.7% 200.0 Data Revenues (millions): Frame Relay/ATM $ 44.6 $ 32.2 38.5 $ 83.6 $ 62.0 34.8 ISDN 61.2 35.4 72.9 111.9 66.7 67.8 Other !NTERPRISE 81.6 52.2 56.3 150.3 105.9 41.9 .Net/DSL 15.6 1.8 766.7 29.2 2.4 1,116.7 ------ ------ ------ ------ --------- Subtotal !NTERPRISE 203.0 121.6 66.9 375.0 237.0 58.2 Other Special Access & Private Line 207.4 177.6 16.8 412.1 350.8 17.5 ------ ------ ------ ------ --------- Total Data Revenues 410.4 299.2 37.2 787.1 587.8 33.9 ====== ====== ====== ====== ========= Employees: U S WEST, Inc. 55,726 53,535 4.1 55,726 53,535 4.1 Telephone operations only 47,044 45,497 3.4 47,044 45,497 3.4 Telephone empl per 10,000 access lines 28.0 27.9 0.4 28.0 27.9 0.4 Dividends per common share (#1) $ 0.750$ 0.535 40.2 $ 1.285 $ 1.07 20.1 Common shares outstanding (#1) 504.3 501.4 0.6 504.3 501.4 0.6 Capital expend $ 981 $ 809 21.3 $ 1,768 $ 1,331 32.8 EBITDA (#2) 1,428 1,348 5.9 2,823 2,695 4.7 EBITDA margin 43.8% 44.2% (0.9) 43.8% 44.5% (1.6) Debt-to-capital ratio (#3) 58.6% 56.4% 3.9 58.6% 56.4% 3.9 # 1: Common shares outstanding at June 30, 1998 are pro forma, assuming the Separation had been consummated as of the date indicated. # 2: Earnings before interest, taxes, depreciation, amortization, and other (EBITDA). # 3: Telephone operations only.
EX-99 7 EXHIBIT 99A.5
CONSOLIDATED STATEMENTS OF OPERATIONS U S WEST COMMUNICATIONS, INC. (UNAUDITED) (Telephone Operations Only) Quarter Ended Six Months Ended June 30, % June 30, % In millions 1999 1998 (1) Change 1999 1998 (1) Change - - -------------------------- ------- ------- ------ ------ ------- ------ OPERATING REVENUES Local service $ 1,933 $ 1,756 10.1 $ 3,800 $ 3,486 9.0 Access services 688 671 2.5 1,369 1,336 2.5 Long-distance services 150 195 (23.1) 321 396 (18.9) Other services 78 73 6.8 152 146 4.1 ------- ------- ------ ------- Total operating revenues 2,849 2,695 5.7 5,642 5,364 5.2 ------- ------- ------ ------- OPERATING EXPENSES Employee-related 891 860 3.6 1,784 1,682 6.1 Other operating (1) 658 611 7.7 1,287 1,215 5.9 Depreciation & amort 557 518 7.5 1,142 1,036 10.2 ------- ------- ------ ------- Total operating expenses 2,106 1,989 5.9 4,213 3,933 7.1 ------- ------- ------ ------- Operating income 743 706 5.2 1,429 1,431 (0.1) Interest expense 98 94 4.3 187 185 1.1 Other expense 12 29 (58.6) 24 56 (57.1) ------- ------- ------ ------- Income before income taxes 633 583 8.6 1,218 1,190 2.4 Income tax provision 246 218 12.8 462 451 2.4 ------- ------- ------ ------- NET INCOME $ 387 $ 365 6.0 $ 756 $ 739 2.3 ======= ======= ====== ======= (1) Net income for the quarter and six months ended June 30, 1998 excludes $89 of after tax charges associated with the Separation and an asset impairment, consisting of $129 of other operating expense, net of $40 of income tax expense.
EX-99 8 EX 99A.6
CONSOLIDATED BALANCE SHEETS U S WEST COMMUNICATIONS, INC. (Unaudited) June 30, December 31, In millions 1999 1998 - - --------------------------------------- ------------ ------------- ASSETS Current assets: Cash and cash equivalents $ 66 $ 68 Accounts receivable, net 1,640 1,619 Inventories and supplies 194 154 Deferred tax asset 109 113 Prepaid and other 115 61 ------------ ------------ Total current assets 2,124 2,015 Property, plant and equipment - net 15,224 14,681 Other assets - net 987 882 ------------ ------------- Total assets $ 2,124 $ 17,578 ============ ============= LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities: Short-term debt $ 1,342 $ 789 Accounts payable 1,446 1,411 Accrued expenses 1,604 1,383 Advance billings and deposits 337 326 ------------ ------------- Total current liabilities 4,729 3,909 Long-term debt 4,970 5,154 Postretirement and other postemployment benefit obligations 2,427 2,458 Deferred taxes, credits and other 1,747 1,594 Stockholder's equity 4,462 4,463 ------------ ------------- Total liabilities and stockholder's equity $ 18,335 $ 17,578 ============ =============
EX-27 9 FDS --
5 0001054522 U S WEST, Inc. 1,000,000 3-MOS 6-MOS DEC-31-1999 DEC-31-1999 APR-01-1999 JAN-01-1999 JUN-30-1999 JUN-30-1999 730 730 0 0 1,706 1,706 0 0 213 213 3,216 3,216 34,565 34,565 20,074 20,074 18,597 18,597 5,990 5,990 7,946 7,946 0 0 0 0 0 0 480 480 18,597 18,597 3,258 6,062 3,258 6,062 0 0 0 0 2,403 4,434 0 0 163 323 679 1,247 258 469 421 778 0 0 0 0 0 0 421 778 .84 1.55 .83 1.54
-----END PRIVACY-ENHANCED MESSAGE-----