-----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, AapJZmH0MHtXxu50odzVe2dbph022bfNeldIrbicu4hEXhQtGVcE96X2U3Opt4N4 X/MwqTTm6lfh8Ej02ENXDA== 0001054522-99-000054.txt : 19991025 0001054522-99-000054.hdr.sgml : 19991025 ACCESSION NUMBER: 0001054522-99-000054 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 19990930 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19991022 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: 99732238 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 3RD 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): October 22, 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 2 of this report) ================================================================================ Item 5. Other Events On October 22, 1999, U S WEST, Inc. released its third 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 October 22, 1999 concerning the earnings results of U S WEST, Inc. for the third quarter of 1999. 99A.1 Unaudited Consolidated Statements of Income of U S WEST, Inc. for the quarters and nine-month periods ended September 30, 1998 and 1999, respectively, filed in connection with the Press Release dated October 22, 1999. 99A.2 Unaudited Earnings Normalization Schedule of U S WEST, Inc. for the quarters and nine months ended September 30, 1998 and 1999, respectively, filed in connection with the Press Release dated October 22, 1999 99A.3 Unaudited Consolidated Balance Sheets of U S WEST, Inc. for the nine-month period ended September 30, 1999 and the year ended December 31, 1998, respectively, filed in connection with the Press Release dated October 22, 1999. 99A.4 Unaudited Consolidated Statements of Cash Flows of U S WEST, Inc. for the nine-month periods ended September 30, 1999 and 1998, respectively, filed in connection with the Press Release dated October 22, 1999. 99A.5 Unaudited Selected Consolidated Data of U S WEST, Inc. for the quarters and nine-month periods ended September 30, 1999 and 1998, respectively, filed in connection with the Press Release dated October 22, 1999. 99A.6 Unaudited Consolidated Statements of Operations of U S WEST Communications, Inc. for the quarters and nine-month periods ended September 30, 1999 and 1998, respectively. 99A.7 Unaudited Consolidated Balance Sheets of U S WEST Communications, Inc.for the quarter and nine-month period ended September 30, 1999 and the year ended December 31, 1998, respectively.
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 22, 1999 EX-99 2 PRESS RELEASE EXHIBIT 99 [U S WEST LOGO] Investor Relations NEWS FLASH October 22, 1999 - -------------------------------------------------------------------------------- Note to investors: In lieu of a live call, U S WEST will have a recorded call available beginning at 7:30 a.m. MDT (9:30 a.m. EDT) today to discuss third quarter, 1999 results. To access the recording, call 1-888-203-1112 and enter reservation number 796737. That recording will be available through Friday, Oct. 29 at 6 p.m.(MDT). - -------------------------------------------------------------------------------- U S WEST Reports Solid Third Quarter Earnings -- Normalized EPS Rises 10.7 Percent; Revenues Continue at Near 7 Percent Growth Rate; PCS, DSL, other New Services Drive Increases -- DENVER - U S WEST (NYSE: USW) today announced third quarter normalized diluted earnings per share of $0.83 on normalized net income of $421 million. Normalized EPS rose $0.08 or 10.7 percent, aided by a $0.03 one-time gross receipts tax refund, and net income improved by 11.1 percent from third quarter 1998. Also during the quarter the company reported that EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization and other) grew to $1.465 billion, up 8 percent from the third quarter of last year. The company achieved these results based on continued strong revenue growth of 6.6 percent, capitalizing on success in PCS, data, custom calling features and private line services. Quarterly performance was also aided by continuing moderation of 1999 operating expense growth, from a normalized 7.3 percent in second quarter to 5.5 percent this quarter. "We've delivered what we said we would financially," said Sol Trujillo, chairman, president and CEO of U S WEST. "What's really exciting is that U S WEST continues to lead the industry in connecting more of its customers to next-generation services than any other player - large or small." Trujillo pointed to the following as examples of that leadership: o Penetration for the company's high-speed MegaBit DSL services are much stronger than any other DSL provider in the nation at 338 subscribers per Central Office and 10 percent of qualified, on-line households. o Some 56 percent of subscribers to U S WEST's wireless PCS product now take advantage of the unique integrated wireline-wireless capabilities of Advanced PCS. o 75-percent plus of third quarter revenue growth is from data- and wireless-related products. - more - U S WEST Third Quarter Earnings - Page 2 o U S WEST leads the industry with 215,000-plus subscribers to privacy-related products including Caller ID with Privacy Plus and No Solicitation. "These and other services each represent new pipelines for growth that the company is just beginning to tap," Trujillo added. "These next-generation services are at the heart of U S WEST's plan to develop strong new growth engines that we expect will deliver superior results in the future."
Growth Product Highlights - ------------ ---------------------------- ------------------- --------------------------------------------------------- Division Revenues (comparisons are Key Product Subscriber/Penetration Levels (comparisons are 3Q99 3Q99 over 3Q98) over 3Q98) - ------------ ---------------------------- ------------------- --------------------------------------------------------- - ------------ ---------------------------- ------------------- --------------------------------------------------------- Data o $443 million, up o U S o To date, total nearly 307,000, up almost 33 percent WEST.net 86,000 for the quarter and 335 percent over 3Q98 totals. o !NTERPRISE data revenues were $221 o MegaBit o Added about 30,000 for the quarter. To date at million for the (DSL) about 80,000. quarter, up 58 services o USW serves 338 subs. per Central Office, with percent. 237 equipped COs. o More than 90 percent of customers are choosing to self-install, avoiding a truck roll and reducing provisioning costs. - ------------ ---------------------------- ------------------- --------------------------------------------------------- - ------------ ---------------------------- ------------------- --------------------------------------------------------- PCS o ARPU of $58. o Advanced o Added nearly 60,000 during the quarter for a PCS total of 344,000. o Total quarterly revenue of $69 o Weighted average penetration is now 2.6 million, up 176 percent. percent. o Wireless o 56 percent of users now subscribe to at least Integrated one of the product's integrated features features - ------------ ---------------------------- ------------------- --------------------------------------------------------- - ------------ ---------------------------- ------------------- --------------------------------------------------------- Dex o Quarterly o Internet o Sold more than 9,000 web sites to small directory revenues Yellow Pages businesses since 1998 introduction. grew by 7.3 percent. (IYP) o Year-to-date o Web Site o IYP usage was up 166 percent. E-Commerce-related Service revenues grew 71 o Dex and U S WEST's Small Business Group began percent to more than offering "Virtual Storefront" to small businesses, $16 million. a package of Internet access, high-speed transport and a three-page web site for under $100 per month. - ------------ ---------------------------- ------------------- ---------------------------------------------------------
During the quarter, the company's total "growth subscribers" (customers for the company's PCS, DSL and Internet access service) were up almost 180,000 - more than double the amount from third quarter 1998. Growth subscribers now total more than 730,000. Investment in growth initiatives negatively impacted EPS by $0.21 for the quarter versus $0.12 for third quarter, 1998. - more - U S WEST Third 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 505,000 lines to competitors, up from 475,000 lines at the end of second quarter. Other third 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 at 37 percent penetration. Voice Messaging exceeded the 20 percent level during the quarter, the highest penetration rate in the industry. o So far this year, the company has signed up more than 215,000 customers for several of its new privacy-related custom-calling features, including Caller ID with Privacy Plus and No Solicitation. o Subscribers to the company's bundled Custom Choice package for residential customers surpassed one million during the quarter and now stand at 1.1 million. In June, the company began offering Custom Choice to small business customers, and has signed up 20,000 subscribers through third quarter. o The number of primary rate ISDN lines in service increased 88 percent. Total ISDN lines grew 26 percent. o The addition of 504,000 access lines over the past year for a growth rate of 3.1 percent. On a "voice-grade-equivalent" basis, business access line growth was 13.3 percent. o On the small business side, total access lines equipped with Centrex 21 services grew to 534,000, a 54 percent year-over-year increase. Sales and Revenues: o An 18.1 percent increase compared with third quarter 1998 in private line and special access revenues, which totaled $304 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 nearly 15 percent, compared to third quarter 1998. o Frame Relay revenues increased by nearly 34 percent quarter-over-quarterand ISDN revenues jumped by 71 percent quarter-over-quarter. o The company's Home Office channel generated revenues of nearly $18 million during the quarter, an increase of 35 percent. The Home Office channel serves the unique needs of the growing number of home-based businesses in U S WEST's region. o Toll revenues dropped by 30 percent during the quarter. - more - U S WEST Third Quarter Earnings - Page 4 Costs and Margins: o Capital expenditures were up 78 percent during the quarter, rising to $1.1 billion. For the year, capital expenditures are up 47 percent at $2.8 billion. The increases have helped bolster service levels for traditional services and aided in deployment of new services. o Absorbed approximately $100 million in expenses related to interconnection, number portability and Year 2000 compliance during the quarter. To date, the company has spent $232 million in expense and capital on Y2K. It expects to spend another $48 million during the balance of 1999. o Employee-related expenses grew by 8.2 percent during the quarter, due in part with efforts related to keeping up with service demands. These expenses include a net addition of more than 900 employees during the quarter and nearly 2,900 since third quarter, 1998 - almost 1,500 of which have been added specifically to keep up with service demands. The quarterly results include a one-time $25 million ($0.03 EPS) refund from a state gross receipts tax. The company had expected this refund before the end of the year. During the quarter, the company made a one-time payment of $280 million to Global Crossing, Ltd. as part of the break-up fee to dissolve a proposed merger between the two firms. This merger was superseded by U S WEST's existing merger agreement with Qwest. Half of the payment to Global Crossing was made in cash (using a loan from Qwest); the remainder was paid in shares of Global Crossing stock, which U S WEST purchased in late June. This payment - and other minor merger-related expense - had a $0.56 EPS impact during the quarter, bringing U S WEST's reported EPS to $0.27. 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) acceleration of the deployment of advanced new services to customers, such as broadband data, wireless 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 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 7:15 a.m. (MDT) by accessing U S WEST's Internet site: www.uswest.com. EX-99 3 EXHIBIT 99A.1 EXHIBIT 99A.1 CONSOLIDATED STATEMENTS OF INCOME (1) (2) U S WEST, INC. (UNAUDITED)
Quarter Ended Nine Months Ended In millions, except September 30, % September 30, % per share amounts 1999 1998 Change 1999 1998(3) Change - ------------------------ ----- ----- ------- ----- -------- ------ OPERATING REVENUES Local services $1,979 $1,805 9.6 $5,779 $5,291 9.2 Access services 688 660 4.2 2,057 1,996 3.1 Directory services 336 313 7.3 995 929 7.1 Long-distance services 141 202 (30.2) 471 606 (22.3) Other services 173 132 31.1 455 352 29.3 ----- ----- ------- ------ Total operating rev. 3,317 3,112 6.6 9,757 9,174 6.4 ----- ----- ------- ------ OPERATING EXPENSES Employee-related 1,195 1,104 8.2 3,473 3,179 9.2 Other operating 657 651 0.9 1,996 2,072 (3.7) Depreciation & amort 588 558 5.4 1,763 1,625 8.5 ----- ----- ------- ------ Total operating exp. 2,440 2,313 5.5 7,232 6,876 5.2 ----- ----- ------- ------ OPERATING INCOME 877 799 9.8 2,525 2,298 9.9 Interest expense 203 172 18.0 519 495 4.8 Terminated merger- related expenses 282 - - 282 - - Other (income)expense (4) 19 - 10 77 (87.0) ----- ----- ------- ------ Income before income taxes 396 608 (34.9) 1,714 1,726 (0.7) Income tax provision(4) 257 229 12.2 757 658 15.0 ----- ----- ------- ------ NET INCOME $ 139 $ 379 (63.3) $ 957 $1,068 (10.4) ===== ===== ======= ====== Basic earnings per share $ 0.28 $ 0.76 (63.2) $ 1.90 $ 2.13 (10.8) ===== ===== ======= ====== Basic average shares outstanding 504.8 501.8 0.6 504.0 501.5 0.5 ===== ===== ======= ====== Diluted earnings per share $ 0.27 $ 0.75 (64.0) $ 1.88 $ 2.11 (10.9) ===== ===== ======= ====== Diluted average shares outstanding 509.0 506.0 0.6 508.5 505.7 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 nine months ended September 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 period 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 period indicated. (2) Net income for the three and nine months ended September 30, 1999 includes $282 of after tax charges associated with terminating the Global Crossing merger. (3) Net income for the nine months ended September 30, 1998 includes $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. (4) The disproportionate tax rate for the three and nine months ended September 30, 1999, results from the deductibility of the terminated merger-related expenses being subject to review.
EX-99 4 EXHIBIT 99A.2 EXHIBIT 99 A.2 EARNINGS NORMALIZATION SCHEDULE U S WEST, INC. (UNAUDITED)
Quarter Ended Nine Months Ended In millions, except September 30, % September 30, % per share amounts 1999 1998 Change 1999 1998 Change - --------------------- ------- ---- ------ ------- ------- ------ Reported net income $ 139 $ 379 (63.3) $ 957 $1,068 (10.4) Adjustments: Terminated merger- related expenses 282 - - 282 - - Separation costs - - - - 68 - Asset impairment - - - - 21 - ----- ----- ------- ------ Normalized income $ 421 $ 379 11.1 $1,239 $1,157 7.1 ===== ===== ======= ====== NORMALIZED BASIC EARNINGS PER SHARE: Reported basic earnings per share $0.28 $0.76 (63.2) $1.90 $2.13 (10.8) Adjustments: Terminated merger- related expenses 0.56 - - 0.56 - - Separation costs - - - - 0.13 - Asset impairment - - - - 0.04 - ----- ----- ------- ------ Normalized basic earnings per share $0.84 $0.76 10.5 $2.46 $2.31 # 6.5 ===== ===== ======= ====== NORMALIZED DILUTED EARNINGS PER SHARE: Reported diluted earnings per share $0.27 $0.75 (64.0) $1.88 $2.11 (10.9) Adjustments: Terminated merger- related expenses 0.56 - - 0.56 - - Separation costs - - - 0.13 - Asset impairment - - - - 0.04 - ----- ----- ------- -------- Normalized diluted earnings per share $0.83 $0.75 10.7 $2.44 $2.29 # 6.6 ===== ===== ======= ====== # Amount does not foot due to rounding of individual components.
EX-99 5 EXHIBIT 99A.3 EXHIBIT 99A.3 CONSOLIDATED BALANCE SHEETS U S WEST, Inc.
(Unaudited) September 30, December 31, In millions 1999 1998 - -------------------------------------- ------------ ------------- ASSETS Current assets: Cash and cash equivalents $ 55 $ 49 Accounts receivable, net 1,785 1,743 Inventories and supplies 257 197 Deferred directory costs 273 274 Deferred tax asset 163 151 Prepaid and other 118 78 ------------ ------------- Total current assets 2,651 2,492 Property, plant and equipment - net 15,705 14,908 Other assets - net 2,604 1,007 ------------ ------------- Total assets $ 20,960 $ 18,407 ============ ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term debt $ 3,379 $ 1,277 Accounts payable 1,436 1,347 Accrued expenses 1,762 1,702 Advance billings and deposits 385 370 ------------ ------------- Total current liabilities 6,962 4,696 Long-term debt 9,754 8,642 Postretirement and other postemployment benefit obligations 2,635 2,643 Deferred taxes, credits and other 1,457 1,671 Stockholders' equity 152 755 ------------ ------------- Total liabilities and stockholders' equity $ 20,960 $ 18,407 ============ =============
EX-99 6 EXHIBIT 99A.4 EXHIBIT 99A.4 CONSOLIDATED STATEMENTS OF CASH FLOWS U S WEST, Inc. (UNAUDITED)
Nine Months Ended September 30, In millions 1999 1998 - -------------------------------------------------- ------- ------- OPERATING ACTIVITIES Net income $ 957 $ 1,068 Adjustments to net income: Depreciation and amortization 1,763 1,625 Deferred income taxes and amortization of investment tax credits 131 57 Changes in operating assets and liabilities: Accounts receivable (42) (18) Inventories, supplies and other current assets (93) (49) Accounts payable, accrued expense and advance billings 155 233 Other 81 34 - -------------------------------------------------- ------- ------- Cash provided by operating activities 2,952 2,950 - -------------------------------------------------- ------- ------- INVESTING ACTIVITIES Expenditures for property, plant and equipment (2,681) (1,937) Payments on disposals of property, plant and equipment (30) (14) Investment in Global Crossing Ltd. common stock (2,464) - Other (11) (57) - -------------------------------------------------- ------- ------- Cash used for investing activities (5,186) (2,008) - -------------------------------------------------- ------- ------- FINANCING ACTIVITIES Net proceeds from short-term debt 2,102 1,519 Proceeds from issuance of long-term debt 1,302 3,066 Repayments of long-term debt (307) (411) 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 60 60 Dividends paid on common stock (917) (787) Dividends paid to Old U S WEST - (194) 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 2,240 (947) - -------------------------------------------------- ------- ------- CASH AND CASH EQUIVALENTS Increase 6 (5) Beginning balance 49 27 - -------------------------------------------------- ------- ------- Ending balance $ 55 $ 22 ================================================== ======= =======
EX-99 7 EXHIBIT 99A.5 EXHIBIT 99A.5 SELECTED CONSOLIDATED DATA U S WEST, INC. (UNAUDITED)
As of and for the As of and for the Quarter Ended Nine Months Ended September 30, % September 30, % 1999 1998 Change 1999 1998 Change - ---------------------- -------- ------- ------ ------- ------ ------- Access lines (thousands): Business 5,008 4,903 2.1 Consumer 11,904 11,505 3.5 -------- -------- Total access lines 16,912 16,408 3.1 ======== ======== Billed access minutes of use (millions): Interstate 15,487 14,707 5.3 46,207 43,868 5.3 Intrastate 3,270 3,107 5.2 9,625 9,206 4.6 -------- -------- --------- -------- Total minutes of use 18,757 17,814 5.3 55,832 53,074 5.2 ======== ======== ========= ======== Wireless/PCS: Revenues(millions) $ 69 $ 25 176.0 $166 $50 232.0 Subscribers(thousands) 344 104 230.8 ARPU (Dollars) $ 58 $ 46 26.1 Wtd Avg Penetration 2.6% 1.6% 62.5 Data Revenues(millions): Frame Relay $45.6 $34.1 33.7 $126.9 $95.0 33.6 Private Line LAN Interconnect 36.1 31.0 16.5 105.7 90.5 16.8 ISDN 62.8 36.8 70.7 174.7 103.5 68.8 USW.Net/Megabit(DSL) 19.7 4.7 319.1 48.9 7.1 588.7 Other !NTERPRISE 56.7 33.4 69.8 139.7 80.9 72.7 -------- -------- --------- -------- Subtotal !NTERPRISE 220.9 140.0 57.8 595.9 377.0 58.1 Other Special Access & Private Line 222.4 192.4 15.6 640.3 556.2 15.1 -------- -------- --------- -------- Total Data Revenues $ 443.3 $ 332.4 33.4 $1,236.2 $933.2 32.5 ======== ======== ========= ======== Total Special Access and Private Line (#1) $ 304.1 $ 257.5 18.1 $ 872.9 $741.7 17.7 ======== ======== ========= ======== Additional Data Stats: XDSL Equipped Central Offices (C.O.) 237 N.A. Subscribers per XDSL Equipped C.O.'s 338 N.A. Employees: U S WEST, Inc. 56,634 53,758 5.3 Telephone operations only 47,758 45,654 4.6 Telephone empl per 10,000 access lines 28.2 27.8 1.4 Dividends per common share $0.535 $0.535 0.0 $1.820 $1.605 13.4 Common shares outstanding(millions) 505.0 502.1 0.6 Capital expend (millions) $1,051 $589 78.4 $2,819 $1,920 46.8 EBITDA (millions)(#2) 1,465 1,357 8.0 4,288 3,923 9.3 EBITDA margin 44.2% 43.6% 1.4 43.9% 42.8% 2.6 Debt-to-capital ratio (#3) 60.2% 56.0% 7.5 # 1: Includes Frame Relay, Private Line LAN Interconnect and Other Special Access and Private Line revenues. # 2: Earnings before interest, taxes, depreciation, amortization, and other (EBITDA). # 3: Telephone operations only. N.A. = Not Available
EX-99 8 EXHIBIT 99A.6 EXHIBIT 99A.6 CONSOLIDATED STATEMENTS OF OPERATIONS U S WEST COMMUNICATIONS, INC. (UNAUDITED) (Telephone Operations Only)
Quarter Ended Nine Months Ended September 30, % September 30, % In millions 1999 1998 Change 1999 1998(1) Change - ------------------------ ------ ------ ------ ------ ------- ------ OPERATING REVENUES Local service $1,979 $1,805 9.6 $5,779 $5,291 9.2 Access services 688 660 4.2 2,057 1,996 3.1 Long-distance services 138 199 (30.7) 459 595 (22.9) Other services 110 75 46.7 262 221 18.6 ------ ------ ------ ------ Total operating revenues 2,915 2,739 6.4 8,557 8,103 5.6 ------ ------ ------ ------ OPERATING EXPENSES Employee-related 935 868 7.7 2,719 2,550 6.6 Other operating (1) 636 625 1.8 1,923 1,969 (2.3) Depreciation & amort 571 544 5.0 1,713 1,580 8.4 ------ ------ ------ ------ Total operating expenses 2,142 2,037 5.2 6,355 6,099 4.2 ------ ------ ------ ------ Operating income 773 702 10.1 2,202 2,004 9.9 Interest expense 102 103 (1.0) 289 288 0.3 Other expense 9 20 (55.0) 33 76 (56.6) ------ ------ ------ ------ Income before income taxes 662 579 14.3 1,880 1,640 14.6 Income tax provision 251 219 14.6 713 630 13.2 ------ ------ ------ ------ NET INCOME $ 411 $ 360 14.2 $1,167 $1,010 15.5 ====== ====== ====== ====== (1) Net income for the nine months ended September 30, 1998 includes $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 9 EXHIBIT 99A.7 EXHIBIT 99A.7 CONSOLIDATED BALANCE SHEETS U S WEST COMMUNICATIONS, INC. (Telephone Operations Only)
(Unaudited) September 30, December 31, In millions 1999 1998 - -------------------------------------- ------------- --------------- ASSETS Current assets: Cash and cash equivalents $ 66 $ 68 Accounts receivable, net 1,703 1,619 Inventories and supplies 187 154 Deferred tax asset 121 113 Prepaid and other 98 61 ------------- --------------- Total current assets 2,175 2,015 Property, plant and equipment - net 15,423 14,681 Other assets - net 1,303 882 ------------- --------------- Total assets $ 18,901 $ 17,578 ============= =============== LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities: Short-term debt $ 1,767 $ 789 Accounts payable 1,489 1,411 Accrued expenses 1,677 1,383 Advance billings and deposits 341 326 ------------- --------------- Total current liabilities 5,274 3,909 Long-term debt 4,976 5,154 Postretirement and other postemployment benefit obligations 2,426 2,458 Deferred taxes, credits and other 1,761 1,594 Stockholder's equity 4,464 4,463 ------------- --------------- Total liabilities and stockholder's equity $ 18,901 $ 17,578 ============= ===============
EX-27 10 FDS --
5 0001054522 U S WEST, Inc. 1,000,000 3-MOS 9-MOS 3-MOS 9-MOS DEC-31-1999 DEC-31-1999 DEC-31-1998 DEC-31-1998 JUL-01-1999 JAN-01-1999 JUL-01-1998 JAN-01-1998 SEP-30-1999 SEP-30-1999 SEP-30-1998 SEP-30-1998 55 55 22 22 0 0 0 0 1,785 1,785 1,735 1,735 0 0 0 0 257 257 248 248 2,651 2,651 2,553 2,553 37,271 37,271 34,840 34,840 21,566 21,566 20,342 20,342 20,960 20,960 18,061 18,061 6,962 6,962 5,258 5,258 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 152 152 625 625 20,960 20,960 18,061 18,061 3,317 9,757 3,112 9,174 3,317 9,757 3,112 9,174 0 0 0 0 0 0 0 0 2,440 7,232 2,313 6,876 0 0 0 0 203 519 172 495 396 1,714 608 1,726 257 757 229 658 257 757 229 658 0 0 0 0 0 0 0 0 0 0 0 0 139 957 379 1,068 .28 1.90 .76 2.13 .27 1.88 .75 2.11
-----END PRIVACY-ENHANCED MESSAGE-----