EX-99 5 ex99_3.htm BELLSOUTH CORPORATION KEY FINANCIAL MEASURES
BellSouth Key Financial Measures
(amounts in millions, except per share data)
Selected Financial and Operating Data
  4Q06 4Q05   Growth 3Q06   Growth
Consolidated            
     Total Operating Revenues   $  9,058   $   8,656   4 .6% $  8,954   1 .2%
     Total Operating Expenses (excluding depreciation and amortization)   $  5,472   $   5,505   -0 .6% $  5,367   2 .0%
     Operating Income   $  2,225   $   1,792   24 .2% $  2,210   0 .7%
     Operating Margin   24.6%   20.7%   390 bps 24.7%   -10 bps
     Interest Expense   $     374   $      377   -0 .8% $     405   -7 .7%
     Other Income (Expense), net   $       53   $        48   10 .4% $       57   -7 .0%
     Net Income   $  1,248   $      965   29 .3% $  1,180   5 .8%
     Adjusted Earnings Per Share   $    0.68   $     0.53   28 .3% $    0.65   4 .6%
     Diluted Weighted Average Common Shares Outstanding   1,832   1,818   0 .8% 1,822   0 .5%
     Capital expenditures excluding Hurricane Katrina   $     763   $      803   -5 .0% $     730   4 .5%
     Total Employees   59,298   63,066   -6 .0% 59,745   -0 .7%
     Operating Free Cash Flow (net cash provided by operating activities  
     less capital expenditures   $  1,202   ($ 218 )   * $     976   23 .2%
Advertising and Publishing Group  
     Total Operating Revenues   $     576   $      529   8 .9% $     537   7 .3%
     Total Operating Expenses (excluding depreciation and amortization)   $     290   $      277   4 .7% $     284   2 .1%
     Segment Operating Income   $     278   $      245   13 .5% $     245   13 .5%
     Segment Operating Margin   48.3%   46.3%   200 bps 45.6%   270  bps

*  -Not meaningful.


  4Q06 4Q05   Growth 3Q06   Growth
Communications Group              
     Total Operating Revenues   $  4,682   $  4,681   0 .0% $  4,696   -0 .3%
     Total Operating Expenses (excluding  
     depreciation and amortization)   $  2,600   $  2,755   -5 .6% $  2,605   -0 .2%
     Segment Operating Income   $  1,201   $  1,027   16 .9% $  1,205   -0 .3%
     Segment Operating Margin   25.7%   21.9%   380 bps 25.7%   0 bps
Communications Group Revenue Detail  
     Voice   $  3,038   $  3,131   -3 .0% $  3,058   -0 .7%
     Data   $  1,324   $  1,252   5 .8% $  1,315   0 .7%
     Other   $     320   $     298   7 .4% $     323   -0 .9%
     Consumer ARPU   $  62.86   $  60.53   3 .8% $  63.26   -0 .6%
DSL  
     Revenue   $     412   $     353   16 .7% $     405   1 .7%
     Subscribers   3,632   2,882   26 .0% 3,449   5 .3%
     Net Adds   183   204   -10 .3% 176   4 .0%
BellSouth Long Distance  
     Revenue   $     681   $     630   8 .1% $     662   2 .9%
     Subscribers   7,682   7,179   7 .0% 7,596   1 .1%
     Net Adds   86   186   -53 .8% 118   -27 .1%
Access Minutes of Use (MOUs)  
     Switched Access MOUs   15,258   15,310   -0 .3% 14,810   3 .0%
     BSLD MOUs   6,383   6,539   -2 .4% 6,703   -4 .8%
     Total Access MOUs   21,641   21,849   -1 .0% 21,513   0 .6%




BellSouth Corporation

Items Excluded From Adjusted Results - EPS Impacts
  4Q06 4Q05 3Q06
Wireless Merger Integration Costs   $     0 .03 $      0 .04 $     0 .02
Wireless Merger Intangible Amortization  $     0 .04 $      0 .05 $     0 .04
AT&T Merger Costs  $     0 .05 $        - $     0 .01
Hurricane Katrina-related Expenses  $       - $      0 .08 $       -
Severance  $       - $      0 .03 $       -
Deferred Revenue Adjustment  $     -   $     (0 .02) $       -


Wireless Merger Integration Costs - Represents BellSouth’s 40% share of Cingular's merger integration costs incurred in connection with the Cingular/AT&T Wireless merger and AT&T/BellSouth merger. Integration costs include one-time cash outlays or specified non-cash charges, including accelerated depreciation, directly related to rationalization of the wireless network, sales distribution channels, the workforce, information technology systems and real estate.

 

Wireless Merger Intangible Amortization - Represents BellSouth's 40 percent share of the non-cash amortization of intangibles, primarily customer lists, that were created in Cingular's acquisition of AT&T Wireless.

 

AT&T Merger Costs - Represents specific deal-related costs directly associated with the merger with AT&T. Costs include legal and regulatory fees, costs of filing and printing the joint proxy statement, expense associated with employee retention awards, bankers' fees and directors' and officers' insurance.

 

Hurricane Katrina-related Expenses - Represents incremental labor and material costs primarily related to service restoration and network repairs in BellSouth's wireline business. The expenses include BellSouth's 40% share of Cingular Wireless' hurricane expenses.

Severance - Represents the net severance-related costs recorded in the 4th quarter of 2005 associated with management workforce reductions.

 

Deferred Revenue Adjustment - Represents the fourth quarter 2005 recognition of previously deferred revenue in the Communications Group segment. The adjustment relates to a system coding error that resulted in underreporting revenues in prior periods. The amount accumulated over multiple years and did not affect any one year by more than $9.