-----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, Spg4VBhIAqsVDOS0BwdbuiglnKG9ZQspb/E+UlWHk7OXQJDV79thYJk6OvqNrur6 0dRqI6NOoy6RyQh1vD7W8Q== 0000732718-00-000013.txt : 20000302 0000732718-00-000013.hdr.sgml : 20000302 ACCESSION NUMBER: 0000732718-00-000013 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 13 CONFORMED PERIOD OF REPORT: 19991231 ITEM INFORMATION: FILED AS OF DATE: 20000229 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MEDIAONE GROUP INC CENTRAL INDEX KEY: 0000732718 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 840926774 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-08611 FILM NUMBER: 557694 BUSINESS ADDRESS: STREET 1: 188 INVERNESS DRIVE WEST CITY: ENGLEWOOD STATE: CO ZIP: 80112 BUSINESS PHONE: 3037936500 MAIL ADDRESS: STREET 1: 188 INVERNESS DRIVE WEST STREET 2: 6TH FLOOR CITY: ENGLEWOOD STATE: CO ZIP: 80112 FORMER COMPANY: FORMER CONFORMED NAME: MEDIA ONE GROUP INC DATE OF NAME CHANGE: 19980616 FORMER COMPANY: FORMER CONFORMED NAME: US WEST INC DATE OF NAME CHANGE: 19920703 8-K 1 FORM 8-K CURRENT REPORT =============================================================================== 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): February 28, 2000 MediaOne Group, Inc. (Exact name of registrant as specified in its charter)
A Delaware Corporation Commission File Number IRS Employer Identification No. (State of incorporation) 1-8611 84-0926774
188 Inverness Drive West Englewood, Colorado 80112 (Address of principal executive offices) (303) 858-3000 (Registrant's telephone number, including area code) =============================================================================== Item 5. Other Events On February 28, 2000 MediaOne Group, Inc. released its year-end 1999 earnings results. The release and financial statements are attached hereto as Exhibits.
Item 7. Exhibits Exhibit Description 27 Financial Data Schedule 99 Press Release issued February 28, 2000 concerning the earnings results of MediaOne Group, Inc. for the year ended December 31, 1999. 99.1 Proportionate Results Highlights of MediaOne Group, Inc. for the three months and the years ended December 31, 1999 and 1998, filed in connection with the Press Release dated February 28, 2000. 99.2 Pro Forma Consolidated Domestic Cable Highlights of MediaOne Group, Inc. for the three months and the years ended December 31, 1999 and 1998, filed in connection with the Press Release dated February 28, 2000. 99.3 Pro Forma Key Operating Statistics - Domestic Cable - of MediaOne Group, Inc. for the quarters ended December 31, 1999, September 30, 1999 and December 31, 1998, filed in connection with the Press Release dated February 28, 2000. 99.4 Pro Forma Key Operating Statistics - International - of MediaOne Group, Inc. for the quarters ended December 31, 1999, September 30, 1999 and December 31, 1998, filed in connection with the Press Release dated February 28, 2000. 99.5 Consolidated Statements of Operations of MediaOne Group, Inc. for the three months and the years ended December 31, 1999 and 1998, filed in connection with the Press Release dated February 28, 2000. 99.6 Earnings per Share Highlights of MediaOne Group, Inc. for the three months and the years ended December 31, 1999 and 1998, filed in connection with the Press Release dated February 28, 2000. 99.7 Consolidated Revenues and Operating Cash Flow Highlights - As Reported - of MediaOne Group, Inc. for the three months and the years ended December 31, 1999 and 1998, filed in connection with the Press Release dated February 28, 2000. 99.8 Condensed Consolidated Balance Sheets - As Reported, for MediaOne Group, Inc. as of December 31, 1999 and 1998, filed in connection with the Press Release dated February 28, 2000. -2- 99.9 Supplementary Consolidated Domestic Cable Highlights - As Reported, of MediaOne Group, Inc. for the four quarters and year-to-date of 1999 and 1998, filed in connection with the Press Release dated February 28, 2000. 99.10 Supplementary Consolidated Domestic Cable Highlights - Pro Forma, of MediaOne Group, Inc. for the four quarters and year-to-date of 1999 and 1998, filed in connection with the Press Release dated February 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. MediaOne Group, Inc. /s/ STEPHEN E. BRILZ By:___________________________________ Stephen E. Brilz Assistant Secretary Dated: February 29, 2000 -3- EX-99 2 PRESS RELEASE February 28, 2000 Cathy Fowler, 303-858-3405 Steve Lang, 303-858-3406 MediaOne-TM- Group Completes Highly Successful Year; Takes Fourth Quarter Lead in New Telephone Subscribers Over Broadband - 76 Percent of MediaOne's Network Has Been Upgraded to 750 MHz Two-Way - - Company Continues to Prepare for Merger into AT&T - ENGLEWOOD, Colo.-- MediaOne Group (NYSE: UMG) today reported continued strong growth across all three of its main product lines. The company added a total of 81,000 new video, telephone and high-speed data (Internet) subscribers in the U.S. in the fourth quarter; 274,000 new subscribers since the end of the same quarter last year. MediaOne Group reported $3.7 billion in consolidated net income for the quarter, including gains realized from sales of international investments. The company ended fourth quarter 1999 with proportionate operating cash flow of $783 million, up 18 percent on a pro-forma basis over the same quarter a year ago. Proportionate operating cash flow as of the end of the year was $2.6 billion, a pro-forma increase of 15 percent over year-end 1998. Proportionate revenue increased 14 percent on a pro-forma basis, to $1.9 billion, over fourth quarter 1998.* Year-end proportionate revenue was $7.8 billion, up 13 percent pro-forma over year-end 1998. More customers than ever before are signing up for broadband services, including digital video, telephone and high-speed data services, thereby boosting broadband revenue per customer. Aggressive network upgrades are making it possible for the company to offer these advanced services to more and more of the 8.6 million households with access to MediaOne's networks. During the last several months, in preparation for the merger with AT&T, MediaOne International has either sold or announced agreements to sell its interests in a significant portion of its international holdings for about $12 billion. The company had invested about $2 billion in those same properties as of the end of last year, providing a powerful return on investment. - more - -4- MediaOne Group Fourth Quarter Earnings, Page 2 "Employees throughout the company have done an amazing job of staying focused on running the business - even as we prepare for the merger into AT&T. Since the end of the third quarter, we've continued to work with our counterparts at AT&T to decide on the structure and next steps for the new company," said Chuck Lillis, chairman and chief executive officer of MediaOne Group. "And, of course, internationally, we've received phenomenal value for the holdings we've sold." MediaOne -- the U.S. broadband business MediaOne exceeded its full year projections for 1999, surpassing targets established for revenue growth, video, telephone and high-speed data subscriber growth. Revenue for MediaOne was $693 million, up 12 percent on a pro-forma basis for the quarter. For the year, MediaOne's revenue was up 11 percent on a pro-forma basis, to $2.7 billion. Operating cash flow was $249 million, up 7 percent pro-forma for the quarter. Year over year, operating cash flow was up 5 percent, to $980 million. Basic video customer growth increased 1.7 percent on a pro-forma basis year over year. 1999 saw strong pay-per-view results, ending the year with a 38 percent pro-forma increase over 1998. That growth was driven in part by further deployment of advanced analog and digital services through upgraded broadband networks and improved impulse pay-per-view capabilities. Those upgraded networks also helped the company add 274,000 new video, telephone and high-speed data subscribers during the year. Advertising revenues increased 31 percent pro-forma year over year, to $204 million for 1999. At the end of the year, MediaOne served 56,000 digital video subscribers. The company added 32,000 new subscribers during the fourth quarter, more than doubling the number of digital subscribers since the end of the third quarter. The company added 24,000 telephone subscribers in the fourth quarter, a 57 percent increase over the third quarter of this year. As of the end of the year, the company served 88,000 telephone lines used by 66,000 subscribers in seven major markets. In the fourth quarter, MediaOne added more telephone subscribers than any other broadband provider. MediaOne-TM- Road Runner-TM- added 47,000 high-speed data subscribers in the fourth quarter, a 27 percent increase since the end of the third quarter. MediaOne - with one of the highest penetrations in the industry -- served 220,000 high-speed data subscribers across the U.S. as of the end of 1999. MediaOne Multimedia Ventures -- MediaOne Group's 25.51 percent stake in Time Warner Entertainment For the quarter, MediaOne Group's share of Time Warner Entertainment's reported revenue was $943 million, up 14 percent on a pro-forma basis over fourth quarter 1998. For the year, MediaOne Group's share was $3.4 billion, up 10 percent pro-forma over year-end 1998. MediaOne Group's share of TWE's reported earnings before interest, taxes, depreciation, amortization and other associated costs for the fourth quarter was $474 million, up 17 percent pro-forma over the same period last year; yearly figures were up 10 percent pro-forma to $1.3 billion. - more - -5- MediaOne Group Fourth Quarter Earnings, Page 3 MediaOne International -- the international broadband and wireless joint ventures MediaOne International is in the process of disposing of a significant portion of its international assets and will receive about $12 billion from sales of those interests. Several major deals were closed in 1999, including the sale of UK wireless operator One 2 One to Deutsche Telekom, and the sale of MediaOne International's stake in Dutch broadband company A2000 and Belgian broadband company Telenet to respective existing partners. Pending sales, including the sale of some Central European and Russian wireless interests and the sale of MediaOne International's stake in UK broadband operator Telewest, are expected to close in the next few months. MediaOne Group will discuss these results on a call with analysts at 11 a.m. EST on February 29. Those who wish to listen to a Webcast of the call may do so by pointing their browsers to http://www.mediaonegroup.com. A replay of the call will run until March 10 at 7 p.m. EST. MediaOne Group (NYSE: UMG) is one of the world's largest broadband communications companies, bringing the power of broadband and the Internet to customers in the United States, Europe and Asia. The company also has interests in some of the fastest-growing wireless communications businesses outside the U.S. For 1999, MediaOne Group produced $7.8 billion in proportionate revenue. On May 6, 1999, the company entered into an agreement to merge with AT&T. *NOTE: Because MediaOne Group operates numerous joint ventures, the company uses proportionate accounting to reflect its share of operating revenues and expenses associated with these operations. Pro-forma numbers are used to provide direct "apples to apples" comparisons of operations quarter over quarter, as the company has streamlined the business significantly during the past year. Operating cash flow, which represents earnings before interest, taxes, depreciation and amortization, is a key indicator of the company's operating performance. [Safe Harbor statement: This document contains statements about expected future events and financial results that are forward-looking and subject to risk and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Discussion of factors that may affect future results is contained in our recent filings with the Securities and Exchange Commission.] ### -6- Contents
Page Proportionate Proportionate Results 5 Domestic Cable Consolidated Pro Forma Domestic Cable Results 6 Statistics Pro Forma Key Operating Statistics 7-8 Consolidated Consolidated Operations 9 Earnings Per Share 10 Consolidated Revenues and Operating Cash Flow 11 Condensed Consolidated Balance Sheets 12
-7- EX-99.1 3 FINANCIAL MediaOne Group, Inc. Proportionate Results Highlights (1) (UNAUDITED)
Three Year Months Ended Pro Ended Pro Dollars in Dec 31, Forma(2) Dec 31, Forma(2) millions
1999 1998 % % 1999 1998 % %
- -------------------------------------------------------------------------------
Proportionate Revenue MediaOne $ 693 $ 627 10.5% 11.6% $2,686 $2,467 8.9% 10.9% Multimedia Venture(3) 943 832 13.3 13.9 3,358 3,124 7.5 10.0 Int'l 291 434 (32.9) 20.7 1,715 1,456 17.8 26.7 Corporate & other - 28 (100.0) (100.0) 7 85 (91.8) (119.0) ------------- ------------ $1,927 $1,921 0.3% 13.7% $7,766 $7,132 8.9% 13.2% ============= =============
Proportionate Operating Cash Flow(4)
MediaOne $ 249 $ 235 6.0% 7.3% $ 980 $ 941 4.1% 5.0% Multimedia Venture(3) 474 196 141.8 16.9 1,342 800 67.8 10.4 Int'l 72 58 24.1 53.2 352 205 71.7 63.7 Corporate & other (12) (16) 25.0 40.0 (63) (68) 7.4 19.7 ------------- ------------- $ 783 $ 473 65.5% 18.3% $2,611 $1,878 39.0% 15.2% ============= =============
- ------------------------------------------------------------------------------- (1) Excludes results for the domestic wireless operations which were sold in April, 1998. (2) Results reflect pro forma adjustments for acquisitions, dispositions and other asset transactions. Total pro forma revenue would be $1,927 and $1,695 for the three months ended December 31, 1999 and 1998, respectively, and $7,755 and $6,850 for the respective twelve month periods. Total pro forma operating cash flow would be $530 and $448 for the three months ended December 31, 1999 and 1998, respectively, and $2,099 and $1,822 for the respective twelve month periods. (3) Includes 25.51% of Time Warner Entertainment's (TWE) reported results less a $79 deferred gain in third quarter 1999 related to a cable system swap between MediaOne and TWE. (4) Operating cash flow represents earnings before interest, taxes, depreciation and amortization. - ------------------------------------------------------------------------------- -8- EX-99.2 4 CONS. DOMESTIC CABLE HIGHLIGHTS - PRO FORMA MediaOne Group, Inc. Consolidated Domestic Cable Highlights-Pro Forma (1) MediaOne (UNAUDITED)
Three Year Months Ended Ended Dollars in Dec 31, Dec 31, millions
1999 1998 Percent 1999 1998 Percent
- -------------------------------------------------------------------------------
Video Revenues Basic cable $ 447 $ 419 6.7% $1,774 $1,672 6.1% Premium 82 81 1.2 328 321 2.2 Pay-per-view 17 13 30.8 73 53 37.7 Advertising 61 48 27.1 204 156 30.8 Equip. & instal. 49 47 4.3 190 178 6.7 Other (2) 1 (300.0) 3 3 - --------------- --------------- Total Video Revenues 654 609 7.4 2,572 2,383 7.9 Telephone and High Speed Data 39 12 225.0 114 39 192.3 --------------- --------------- Total Broadband Revenue $ 693 $ 621 11.6% $2,686 $2,422 10.9% =============== =============== Operating Cash Flow(2) Video (excluding Y2K costs) $ 264 $ 258 2.3% $1,052 $1,007 4.5% Telephone and High Speed Data (13) (20) 35.0 (54) (61) 11.5 Year 2000 costs (2) (6) 66.7 (18) (13) (38.5) --------------- --------------- Total Operating Cash Flow $ 249 $ 232 7.3% $ 980 $ 933 5.0% =============== ===============
- ------------------------------------------------------------------------------- (1) Results reflect pro forma adjustments for acquisitions and dispositions. (2) Operating cash flow represents earnings before interest, taxes, depreciation and amortization. Includes spending initiatives (e.g. systems improvements, call center consolidations, etc.) - ------------------------------------------------------------------------------- -9- EX-99.3 5 PRO FORMA KEY OPERATING STATS. - DOMESTIC MediaOne Group, Inc. Key Operating Statistics- Pro Forma (1) For the Quarter Ended
In thousands, except Dec 31, Sept 30, Dec 31, dollar amounts 1999 1999 1998
- ------------------------------------------------------------------------------- OPERATING STATISTICS- DOMESTIC CABLE - ------------------------------------------------------------------------------- MediaOne Domestic Cable Statistics - -----------------------
Homes Passed 8,560 8,496 8,399 Basic Video Customers 4,993 4,983 4,911 Basic Video Customer Growth (Y/Y) 1.7% 1.8% 1.1% Basic Video Penetration 58.3% 58.7% 58.5% Digital Video Customers 56 24 5 High Speed Data Customers 220 173 84 Two-Way Market Ready Penetration 4.8% 4.4% 3.1% Telephone Customers 66 42 10 Telephone Lines 88 56 13 Network Upgraded to 750 MHz. Two-Way 76% 68% 49% Results Per Customer - ---------------------- Video Monthly Revenue per Customer $ 43.71 $ 43.26 $ 41.44 Total Monthly Broadband Revenue per Customer $ 46.29 $ 45.22 $ 42.28 Video EBITDA Margin (with Year 2000 costs) 40.1% 39.2% 41.4% Total EBITDA Margin 35.9% 35.9% 37.4%
- ------------------------------------------------------------------------------- (1) Results reflect pro forma adjustments for acquisitions, dispositions and other asset transactions. - ------------------------------------------------------------------------------- -10- EX-99.4 6 PRO FORMA KEY OPERATING STATS. - INT'L. MediaOne Group, Inc. Key Operating Statistics- Pro Forma (1) For the Quarter Ended
Dec 31, Sept 30, Dec 31, In thousands 1999 1999 1998
- ------------------------------------------------------------------------------- OPERATING STATISTICS (Venture Level)- INTERNATIONAL BROADBAND - -------------------------------------
U.K. Cable/Telephone (2) Homes Passed 4,666 4,665 4,613 Video Customers 1,156 1,124 1,046 Telephone Lines 1,892 1,812 1,626 Internet Access Customers 60 46 24 Asian Cable/Telephone (3) Homes Passed 2,004 1,893 1,756 Video Customers 354 322 265 Telephone Lines 13 10 5 Internet Access Customers 19 9 2
- ------------------------------------------------------------------------------- OPERATING STATISTICS (Venture Level)- INTERNATIONAL WIRELESS - -------------------------------------
Central European Wireless POPs 63,900 63,900 63,900 Customers 4,028 3,433 2,205 Customer Growth (Y/Y) 82.7% 79.5% 87.2%
- ------------------------------------------------------------------------------- OPERATING STATISTICS (Venture Level)- TOTAL INTERNATIONAL SUBSCRIPTIONS - -------------------------------------
Video Customers 1,510 1,446 1,311 Wireless Customers 4,028 3,433 2,205 Telephone Lines 1,905 1,822 1,631 Internet Access Customers 79 55 26 --------- --------- --------- Total International Subscriptions 7,522 6,756 5,173 Growth (Y/Y) 45.4% 43.0% 40.7%
- ------------------------------------------------------------------------------- (1) Results reflect pro forma adjustments for acquisitions, dispositions and other asset transactions including investments in European broadband companies, A2000, Cable Plus, and Telenet, and U.K. wireless company One 2 One. (2) MediaOne International changed its ownership in Telewest from 21.6% in third quarter 1998 to 29.9% in fourth quarter 1998, 29.7% in third quarter 1999, and 27.2% in fourth quarter 1999. (3) MediaOne International increased its ownership in TITUS to 60.0% in fourth quarter 1999. - ------------------------------------------------------------------------------- -11- EX-99.5 7 CONS. STATEMENT OF OPERATIONS MediaOne Group, Inc. Consolidated Operations Highlights- As Reported (1) (UNAUDITED)
Three Months Ended Year Ended Dec 31, Dec 31,
Dollars in millions 1999 1998 1999 1998
- -------------------------------------------------------------------------------
REVENUES $ 693 $ 643 $ 2,695 $ 2,882 Cost of sales 265 230 1,069 1,013 Selling, general and admin. 200 216 749 926 ------- ------- -------- ------- OPERATING CASH FLOW (2) 228 197 877 943 Depreciation & amortization (364) (288) (1,248) (1,182) Interest expense, minority guarantee, other (185) (137) (666) (569) Equity gains (losses) in unconsolidated ventures 35 (144) (256) (417) Gains on sales of investments (3) 6,287 28 9,574 3,939 Merger related costs (4) (273) - (1,810) - Other income (expense) 209 (162) 260 (76) Income tax benefit (expense) (2,284) 168 (3,217) (1,208) ------- ------- -------- ------- EARNINGS (LOSS) FROM CONTINUING OPERATIONS 3,653 (338) 3,514 1,430 Discontinued operations income, net of tax (5) - - - 25,208 Extraordinary item, net of tax - - 17 (333) ------- ------- -------- ------- NET INCOME (LOSS) 3,653 (338) 3,531 26,305 Loss on redemption of preferred securities - - (28) (53) Preferred dividends and accretion (7) (16) (49) (55) ------- ------- -------- ------- EARNINGS (LOSS) AVAILABLE FOR COMMON STOCK $ 3,646 $ (354) $ 3,454 $26,197 ======= ======= ======== =======
- ------------------------------------------------------------------------------- (1) Domestic wireless operations were sold in April, 1998. (2) Operating cash flow represents earnings before interest, taxes, depreciation and amortization. (3) Includes gains of $6,287 and $6,582 on the sale of various international investments for the three and twelve months ended December 31, 1999. Also includes a $2,482 gain on the exchange and modification of the AirTouch shares due to the AirTouch Vodafone merger and a $43 one time charge for the wind down of international operations for the twelve months ended December 31, 1999. Includes a $3,869 gain on sale of domestic wireless operations for the twelve months ended December 31, 1998. (4) Includes $1,500 paid to Comcast as a result of the termination of the merger between Comcast and MediaOne Group in May, 1999. (5) Includes gain on separation from U S WEST Communications (USWC). This also includes income attributable to USW stock of zero for the three months and $589 for the twelve months ended December 31, 1998. - ------------------------------------------------------------------------------- -12- EX-99.6 8 EARNINGS PER SHARE HIGHLIGHTS MediaOne Group, Inc. Earnings Per Share Highlights (UNAUDITED)
Three Mos Ended Year Ended Dec 31, Dec 31,
1999 1998 1999 1998
- ------------------------------------------------------------------------------- Earnings Per Share - As Reported
Average Shares Outstanding (millions) Basic 630.1 604.4 611.6 607.6 Diluted 658.0 604.4 654.9 653.0 Basic Earnings (Loss) per Common Share Earnings (loss) from Continuing Operations $ 5.79 $(0.58) $ 5.62 $ 2.18 Total earnings (loss) $ 5.79 $(0.58) $ 5.65 $42.14 Diluted Earnings (Loss) per Common Share Earnings (loss) from Continuing Operations $ 5.55 $(0.58) $ 5.32 $ 2.10 Total earnings (loss) $ 5.55 $(0.58) $ 5.34 $39.29
- ------------------------------------------------------------------------------- Common Shares (millions) Actual Shares Outstanding (1) 647.4 603.5 647.4 603.5 - ------------------------------------------------------------------------------- Normalized Earnings Per Share Basic EPS - Continuing Ops $ 5.79 $(0.58) $ 5.62 $ 2.18 Adjustment for One Time Unusual Transactions Domestic Wireless Operations and Gain on Sale - - - (3.75) Loss on Redemption of Preferred Securities - - 0.04 0.09 Gain on Sale of Investments (6.20) (0.03) (7.19) (0.08) Primestar Loss (0.02) 0.16 0.05 0.16 Vodafone Gain - - (2.50) - Merger Costs 0.26 - 2.76 - Other Gains (Losses) - - 0.02 - ------- ------- ------ ------- Normalized Basic EPS - Continuing Operations (2) $ (0.17) $ (0.46) $(1.20) $(1.40) ======= ======= ====== =======
- ------------------------------------------------------------------------------- (1) Includes 39.6 million shares related to the conversion of Series D stock in November, 1999. (2) Amounts may not foot due to rounding. - ------------------------------------------------------------------------------- -13- EX-99.7 9 CONS. REVENUES & OPERATING CASH FLOW HIGHLIGHTS MediaOne Group, Inc. Consolidated Revenues and Operating Cash Flow Highlights- As Reported (Unaudited)
Three Year Months Ended Ended Dec 31, Dec 31,
Dollars in millions 1999 1998 Percent 1999 1998 Percent
- -------------------------------------------------------------------------------
Consolidated Revenues MediaOne $ 693 $ 627 10.5% $ 2,686 $ 2,467 8.9% International (1) - 7 - 7 24 (70.8) Corporate & other (2) - 9 - 2 30 (93.3) -------------- ---------------- Current Operations 693 643 7.8% 2,695 2,521 6.9% Domestic wireless - - N/M - 361 N/M -------------- ---------------- Total $ 693 $ 643 N/M $ 2,695 $ 2,882 N/M ============== ================ Consolidated Operating Cash Flow (3) MediaOne $ 249 $ 235 6.0% $ 980 $ 941 4.1% International (1) - (2) - - (6) - Corporate & other (21) (36) 41.7 (103) (140) 26.4 -------------- ---------------- Current Operations 228 197 15.7% 877 795 10.3% Domestic wireless - - N/M - 148 N/M -------------- ---------------- Total $ 228 $ 197 N/M $ 877 $ 943 N/M ============== ================
- ------------------------------------------------------------------------------- (1) Results reflect effects of deconsolidation of investments in Cable Plus and RTDC due to decision to exit international activities. (2) Results reflect divestiture of corporate assets. (3) Operating cash flow represents earnings before interest, taxes, depreciation and amortization. N/M-Not meaningful due to the sale of the domestic wireless businesses. - ------------------------------------------------------------------------------- -14- EX-99.8 10 CONDENSED CONS. BALANCE SHEETS - AS REPORTED MediaOne Group, Inc. Condensed Consolidated Balance Sheets- As Reported (UNAUDITED) December 31, December 31, 1999 1998
Dollars in millions - -------------------------------------------------------------------------------
ASSETS Current assets: Cash and cash equivalents $ 7,471 $ 415 Accounts and notes receivable, and other 649 785 ------------------------------ 8,120 1,200 ------------------------------ Property, Plant and equipment - net 5,090 4,069 Investments: Time Warner Entertainment 2,597 2,442 Vodafone Group/AirTouch Communications 8,718 5,919 International ventures 938 1,344 ------------------------------ 12,253 9,705 ------------------------------ Intangible and other assets - net 14,323 13,218 ------------------------------ Total $ 39,786 $ 28,192 ============================== LIABILITIES AND EQUITY Current liabilities: Short-term debt $ 1,506 $ 569 Other current liabilities 2,739 1,045 ------------------------------ 4,245 1,614 ------------------------------ Long-term debt: Exchangeable Notes (PIES) 4,248 1,702 Other 4,425 3,151 ------------------------------ 8,673 4,853 ------------------------------ Deferred income taxes, credits and other 7,879 6,676 Minority interest in Centaur Funding 1,113 1,099 Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely Company-guaranteed debentures 1,060 1,061 Preferred stock subject to mandatory redemption (Series C and E) (1) 50 100 Shareholders' equity: Preferred shares (Series D) (1) - 927 Common shares 11,448 10,324 Retained earnings 4,123 669 Accumulated other comprehensive income 1,195 869 ------------------------------ 16,766 12,789 ------------------------------ Total $ 39,786 $ 28,192 ==============================
- ------------------------------------------------------------------------------- (1) During 1999, Series C converted into FSA stock and Series D converted to 39.6 million UMG common shares. - ------------------------------------------------------------------------------- -15- EX-99.9 11 SUPP. CONS. DOMESTIC CABLE HIGHLIGHTS MediaOne Group, Inc. Supplementary Consolidated Domestic Cable Highlights-As Reported (1) (Dollars in millions) Unaudited - -------------------------------------------------------------------------------
1999 1998
YTD Q4 Q3 Q2 Q1 YTD Q4 Q3 Q2 Q1
- -------------------------------------------------------------------------------
Video Revenues Basic cable $ 1,774 $ 447 $ 442 $ 446 $ 439 $ 1,673 $ 420 $ 421 $ 420 $ 412 Premium 328 82 82 82 82 322 82 81 80 79 PPV 73 17 19 15 22 52 12 16 11 13 Advert 204 61 50 51 42 157 49 37 40 31 Equip &instal 190 49 49 46 46 176 46 46 44 40 Other 3 (2) 3 1 1 3 2 - 1 - ----- ----- ----- ----- ----- ------ ----- ---- ----- ----- Total Video Rev 2,572 654 645 641 632 2,383 611 601 596 575 Primestar - - - - - 34 - - - 34 Telephone& High Speed Data 114 39 29 24 22 50 16 13 11 10 ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- Total Broadband Rev $ 2,686 $ 693 $ 674 $ 665 $ 654 $ 2,467 $ 627 $ 614 $ 607 $ 619 ====== ===== ===== ===== ===== ====== ===== ===== ===== ===== Operating Cash Flow (2) Video (excluding Y2K) $ 1,052 $ 264 $ 257 $ 264 $ 267 $ 1,008 $ 260 $ 248 $ 254 $ 246 Primestar - - - - - 4 - - - 4 New Products (54) (13) (11) (11) (19) (58) (19) (15) (14) (10) Year 2000 costs (18) (2) (4) (5) (7) (13) (6) (6) (1) - ------ ----- ----- ----- ----- ------ ----- ----- ----- ----- Total Operating Cash Flow $ 980 $ 249 $ 242 $ 248 $ 241 $ 941 $ 235 $ 227 $ 239 $ 240 ====== ===== ===== ===== ===== ====== ===== ===== ===== ===== Capital Exp $ 1,960 $ 545 $ 527 $ 494 $ 394 $ 1,618 $ 554 $ 426 $ 367 $ 271
- ------------------------------------------------------------------------------- (1)Previously reported numbers have been reclassified for new reporting format. (2)Operating cash flow represents earnings before interest, taxes, depreciation and amortization. Includes spending initiatives (e.g. systems improvements, call center consolidations, etc.) - ------------------------------------------------------------------------------- -16- EX-99.10 12 SUPP. CONS. DOMESTIC CABLE HIGHLIGHTS MediaOne Group, Inc. Supplementary Consolidated Domestic Cable Highlights-Pro Forma (1) (Dollars in millions) Unaudited - -------------------------------------------------------------------------------
1999 1998
YTD Q4 Q3 Q2 Q1 YTD Q4 Q3 Q2 Q1
- -------------------------------------------------------------------------------
Video Revenues Basic cable $ 1,774 $ 447 $ 442 $ 446 $ 439 $ 1,672 $ 419 $ 420 $ 420 $ 413 Premium 328 82 82 82 82 321 81 81 80 79 PPV 73 17 19 15 22 53 13 15 12 13 Advert 204 61 50 51 42 156 48 37 40 31 Equip &instal 190 49 49 46 46 178 47 47 44 40 Other 3 (2) 3 1 1 3 1 1 - 1 ----- ----- ----- ----- ----- ------ ----- ----- ----- ----- Total Video Rev 2,572 654 645 641 632 2,383 609 601 596 577 Telephone& High Speed Data 114 39 29 24 22 39 12 9 8 10 ------ ----- ----- ----- ----- ------ ----- ----- ----- ----- Total Broadband Rev $ 2,686 $ 693 $ 674 $ 665 $ 654 $ 2,422 $ 621 $ 610 $ 604 $ 587 ====== ===== ===== ===== ===== ======= ===== ===== ===== ===== Operating Cash Flow (2) Video (excluding Y2K) $ 1,052 $ 264 $ 257 $ 264 $ 267 $ 1,007 $ 258 $ 247 $ 252 $ 250 New Products (54) (13) (11) (11) (19) (61) (20) (16) (15) (10) Year 2000 costs (18) (2) (4) (5) (7) (13) (6) (6) (1) - ------ ----- ----- ----- ----- ------- ----- ----- ----- ----- Total Operating Cash Flow $ 980 $ 249 $ 242 $ 248 $ 241 $ 933 $ 232 $ 225 $ 236 $ 240 ======= ===== ===== ===== ===== ======= ===== ===== ===== =====
- ------------------------------------------------------------------------------- (1)Results reflect pro forma adjustments for acquisitions and dispositions. (2)Operating cash flow represents earnings before interest, taxes, depreciation and amortization. Includes spending initiatives (e.g. systems improvements, call center consolidations, etc.) - ------------------------------------------------------------------------------- -17- EX-27 13 FDS --
5 Financial Data Schedule 0000732718 MediaOne Group, Inc. 3-MOS 12-MOS DEC-31-1999 DEC-31-1999 OCT-01-1999 JAN-01-1999 DEC-31-1999 DEC-31-1999 7,471 7,471 62 62 489 489 0 0 0 0 8,120 8,120 6,686 6,686 1,596 1,596 39,786 39,786 4,245 4,245 8,673 8,673 1,113 1,113 0 0 11,448 11,448 5,318 5,318 39,786 39,786 693 2,695 693 2,695 0 0 0 0 829 3,066 0 0 136 449 5,937 6,731 2,284 3,217 3,653 3,514 0 0 0 17 0 0 3,646 3,454 5.79 5.62 5.55 5.32
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