-----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, Jnym7hDxBcZpCygXbfw/PaHxBCpbFu2OXDqG3w37seE/5w5NZg2SnuNukUXV1Abx zJLFppjCuUmquGVpGzHQmQ== 0000732718-00-000024.txt : 20000525 0000732718-00-000024.hdr.sgml : 20000525 ACCESSION NUMBER: 0000732718-00-000024 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 12 CONFORMED PERIOD OF REPORT: 20000331 ITEM INFORMATION: FILED AS OF DATE: 20000428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MEDIAONE GROUP INC CENTRAL INDEX KEY: 0000732718 STANDARD INDUSTRIAL CLASSIFICATION: 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: 613736 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 =============================================================================== UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 26, 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 April 26, 2000, MediaOne Group, Inc. released its first quarter 2000 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 April 26, 2000 concerning the earnings results of MediaOne Group, Inc. for the quarter ended March 31, 2000. 99.1 Proportionate Results Highlights of MediaOne Group, Inc. for the three months ended March 31, 2000 and 1999, filed in connection with the Press Release dated April 26, 2000. 99.2 Pro Forma Consolidated Domestic Cable Highlights of MediaOne Group, Inc. for the three months ended March 31, 2000 and 1999, filed in connection with the Press Release dated April 26, 2000. 99.3 Pro Forma Key Operating Statistics - Domestic Cable - of MediaOne Group, Inc. for the quarters ended March 31, 2000, December 31, 1999 and March 31, 1999, filed in connection with the Press Release dated April 26, 2000. 99.4 Consolidated Operations Highlights - As Reported of MediaOne Group, Inc. for the three months ended March 31, 2000 and 1999, filed in connection with the Press Release dated April 26, 2000. 99.5 Earnings per Share Highlights of MediaOne Group, Inc. for the three months ended March 31, 2000 and 1999, filed in connection with the Press Release dated April 26, 2000. 99.6 Consolidated Revenues and Operating Cash Flow Highlights - As Reported - of MediaOne Group, Inc. for the three months ended March 31, 2000 and 1999, filed in connection with the Press Release dated April 26, 2000. 99.7 Condensed Consolidated Balance Sheets - As Reported, for MediaOne Group, Inc. as of March 31, 2000 and December 31, 1999, filed in connection with the Press Release dated April 26, 2000. -2- 99.8 Supplementary Consolidated Domestic Cable Highlights - As Reported, of MediaOne Group, Inc. for the quarter ended March 31, 2000 and for the four quarters and year- to-date of 1999, filed in connection with the Press Release dated April 26, 2000. 99.9 Supplementary Consolidated Domestic Cable Highlights - Pro Forma, of MediaOne Group, Inc. for the quarter ended March 31, 2000 and the four quarters and year-to-date of 1999, filed in connection with the Press Release dated April 26, 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: April 28, 2000 -3- EX-99 2 PRESS RELEASE ISSUED APRIL 26, 2000 April 26, 2000 Cathy Fowler, 303-858-3405 Becky Winning, 303-858-3677 MediaOne(R) Group Chalks Up Another Successful Quarter; Continues to Prepare for the Merger into AT&T ENGLEWOOD, Colo. -- MediaOne Group (NYSE: UMG) today reported strong growth across all three of its main product lines. The company added a total of 138,000 new telephone, digital video and high-speed data (Internet) subscribers in the U.S. in the first quarter; 340,000 new subscribers since the end of the same quarter last year. MediaOne Group reported $1.2 billion in consolidated net income for the quarter, including gains realized from sales of international investments. Consolidated operating cash flow for the quarter was $239 million, an increase of 13 percent over first quarter 1999. Consolidated revenue increased 6 percent, to $706 million, over first quarter 1999. "This business is on a terrific track, with especially impressive customer growth in telephone, digital video and high-speed data. I'm proud of our employees for continuing to focus on operations even as we near the completion of our merger into AT&T," said Chuck Lillis, chairman and chief executive officer of MediaOne Group. "We've made excellent progress in deciding the organizational structure and top leadership of the new AT&T Broadband, and we expect the merger to be completed in the near future." MediaOne - the U.S. broadband business MediaOne's quarterly operating cash flow was $261 million, up 10 percent over first quarter 1999 on a pro-forma basis. Revenue was $706 million, a 9 percent pro-forma increase over the same period last year. Customers continued to show enthusiasm for new high-speed data, telephone and digital video services. The company ended the quarter with 278,000 high-speed data subscribers, more than double the first quarter 1999 number. Also at quarter's end, some 94,000 customers subscribed to telephone services, more than a five-fold increase over first quarter 1999. Those 94,000 telephone customers subscribed to more than 126,000 lines. The number of digital video customers nearly doubled since the end of 1999, to 108,000. Year over year, that's an increase of nearly 100,000 customers. - more - -4- MediaOne Group First Quarter 2000 Earnings, Page 2 MediaOne Multimedia Ventures - the stake in Time Warner Entertainment For the quarter, MediaOne Group's share of Time Warner Entertainment's reported revenue was $841 million, up 12 percent on a pro-forma basis over first quarter 1999. MediaOne Group's share of TWE's reported earnings before interest, taxes, depreciation, amortization and other associated costs for the first quarter was $216 million, up 15 percent on a pro-forma basis over the same period last year. MediaOne International - the international broadband and wireless joint ventures In April, the company announced completion of the sale of its stake in Japanese broadband company TITUS to Microsoft. MediaOne International announced in March an agreement to sell its Russian wireless interests to MCT Corp. Sales completed during the quarter included Hungarian and Polish wireless stakes and Singapore broadband interests. These moves are part of the company's plan to sell a significant portion of its international portfolio in preparation for the merger into AT&T. MediaOne Group will discuss these results on a call with analysts at 11 a.m. EDT on April 27. Those who wish to listen to a Webcast of the call may do so at: http://www.mediaonegroup.com. A replay of the call will run until 8 p.m. EDT on May 4. 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: 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.] ### -5- Contents
Page Proportionate Proportionate Results 4 Domestic Cable Consolidated Pro Forma Domestic Cable Results 5 Statistics Pro Forma Key Operating Statistics 6 Consolidated Consolidated Operations 7 Earnings Per Share 8 Consolidated Revenues and Operating Cash Flow 9 Condensed Consolidated Balance Sheets 10
-6- EX-99.1 3 PROPORTIONATE RESULTS HIGHLIGHTS MediaOne Group, Inc. Proportionate Results Highlights (1) (UNAUDITED)
Three Months Ended Pro March 31, Forma (2)
Dollars in millions 2000 1999 % % - - -------------------------------------------------------------------------- Proportionate Revenue MediaOne $ 706 $ 654 8.0% 9.1% Multimedia Ventures (3) 841 748 12.4 12.4 Corporate & other - 1 (100.0) (100.0) -------------------------------------- $1,547 $1,403 10.3% 10.8% ====================================== Proportionate Operating Cash Flow(4) MediaOne $ 261 $ 241 8.3% 10.1% Multimedia Ventures (3) 216 243 (11.1) 14.9 Corporate & other (21) (28) 25.0 25.0 -------------------------------------- $ 456 $ 456 - 14.9% ======================================
- - ------------------------------------------------------------------------- (1) Excludes results for the international cable, wireless and directory operations due to the disposition of a significant portion of the international portfolio. International overhead costs associated with ventures are reported in Corporate and other. (2) Results reflect pro forma adjustments for acquisitions, dispositions and other asset transactions. Total pro forma revenue would be $1,547 and $1,396 for the three months ended March 31, 2000 and 1999, respectively. Total pro forma operating cash flow would be $456 and $397 for the three months ended March 31, 2000 and 1999, respectively. (3) Includes 25.51% of Time Warner Entertainment's reported results. (4) Operating cash flow represents earnings before interest, taxes, depreciation and amortization. - - --------------------------------------------------------------------- -6- EX-99.2 4 PRO FORMA CONSOLIDATED DOMESTIC CABLE HIGHLIGHTS MediaOne Group, Inc. Consolidated Domestic Cable Highlights-Pro Forma (1) MediaOne (UNAUDITED)
Three Months Ended March 31,
Dollars in millions 2000 1999 Percent - - --------------------------------------------------------------------------- Video Revenues Basic cable $ 459 $ 435 5.5% Premium 83 81 2.5 Pay-per-view 14 22 (36.4) Advertising 54 41 31.7 Equipment & installation 49 47 4.3 Other (2) 3 (166.7) ------------------------------ Total Video Revenues 657 629 4.5 Telephone and High Speed Data 49 18 172.2 ------------------------------ Total Broadband Revenue $ 706 $ 647 9.1% ============================== Operating Cash Flow(2) Video (3) $ 265 $ 258 2.7% Telephone and High Speed Data (4) (21) 81.0 ------------------------------ Total Operating Cash Flow $ 261 $ 237 10.1% ==============================
- - --------------------------------------------------------------------------- (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.) (3) Includes Year 2000 costs of $7 for the three months ended March 31, 1999. - - --------------------------------------------------------------------------- -7- EX-99.3 5 PRO-FORMA KEY OPERATING STATS - DOMESTIC CABLE MediaOne Group, Inc. Key Operating Statistics- Pro Forma (1) For the Quarter Ended
In thousands, except Mar 31, Dec 31, Mar 31, dollar amounts 2000 1999 1999
- - -------------------------------------------------------------------------- OPERATING STATISTICS- DOMESTIC CABLE - - ---------------------------------------- MediaOne Domestic Cable Statistics - - ----------
Homes Passed 8,621 8,560 8,441 Basic Video Customers 4,984 4,989 4,926 Basic Video Customer Growth (Y/Y) 1.2% 1.7% 1.2% Basic Video Penetration 57.8% 58.3% 58.4% Digital Video Customers 108 56 9 High Speed Data Customers 278 220 114 Two-Way Market Ready Penetration 5.5% 4.8% 3.9% Telephone Customers 94 66 17 Telephone Lines 126 88 22 Network Upgraded to 750 MHz. Two-Way 79% 76% 55% Results Per Customer - - ---------------------- Video Monthly Revenue per Customer $ 43.97 $ 43.19$ 42.58 Total Monthly Broadband Revenue per Customer $ 47.24 $ 45.04$ 43.78 Video EBITDA Margin (with Year 2000 costs) 40.3% 40.0% 41.0% Total EBITDA Margin 37.0% 35.9% 36.6%
- - -------------------------------------------------------------------------- (1) Results reflect pro forma adjustments for acquisitions, dispositions and other asset transactions. - - -------------------------------------------------------------------------- -8- EX-99.4 6 CONSOLIDATED OPERATIONS HIGHLIGHTS - AS REPORTED MediaOne Group, Inc. Consolidated Operations Highlights - As Reported (UNAUDITED)
Three Months Ended March 31,
Dollars in millions 2000 1999 - - -------------------------------------------------------------------------- REVENUES $ 706 $ 665 Cost of sales 296 269 Selling, general and admin. 171 185 -------- -------- OPERATING CASH FLOW (1) 239 211 Depreciation & amortization (379) (250) Interest expense, minority guarantee, other (196) (145) Equity gains (losses) in unconsolidated ventures (71) (115) Gains on sales of investments (2) 2,184 194 Merger related costs (19) (15) Other income (expense) 155 (28) Income tax benefit (expense) (755) 37 -------- -------- NET INCOME (LOSS) 1,158 (111) Preferred dividends and accretion (1) (14) -------- -------- EARNINGS (LOSS) AVAILABLE FOR COMMON STOCK $ 1,157 $ (125) ======== ========
- - -------------------------------------------------------------------------- (1) Operating cash flow represents earnings before interest, taxes, depreciation and amortization. (2) Includes gains of $1,993 and $124 on the sale of various international investments for the three months ended March 31, 2000 and 1999, respectively. - - -------------------------------------------------------------------------- -9- EX-99.5 7 EARNINGS PER SHARE HIGHLIGHTS MediaOne Group, Inc. Earnings Per Share Highlights (UNAUDITED)
Three Months Ended Mar 31,
2000 1999 - - -------------------------------------------------------------------------- Earnings (Loss)Per Share - As Reported Average Shares Outstanding (millions) Basic 642.9 603.8 Diluted 651.1 603.8 Basic Earnings (Loss) per common share $ 1.80 $ (0.21) Diluted Earnings (Loss) per common share $ 1.78 $ (0.21) - - -------------------------------------------------------------------------- Common Shares (millions) Actual Shares Outstanding 638.9 604.0 - - -------------------------------------------------------------------------- Normalized Earnings (Loss) Per Share Basic EPS $ 1.80 $ (0.21) Adjustment for One Time Unusual Transactions Gains on Sales of Investments (2.09) (0.20) Primestar Loss - 0.07 Merger Costs 0.02 0.03 -------- -------- Normalized Basic EPS $ (0.27) $ (0.31) ======== ========
- - -------------------------------------------------------------------------- -10- EX-99.6 8 CONS. REVENUES & OPERATING CASH FLOW HIGHLIGHTS MediaOne Group, Inc. Consolidated Revenues and Operating Cash Flow Highlights- As Reported (Unaudited)
Three Months Ended March 31,
Dollars in millions 2000 1999 Percent - - -------------------------------------------------------------------------- Consolidated Revenues MediaOne $ 706 $ 654 8.0% Corporate & other - 11 (100.0) -------------------------- Total $ 706 $ 665 6.2% ========================== Consolidated Operating Cash Flow (1) MediaOne $ 261 $ 241 8.3% Corporate & other (22) (30) 26.7 -------------------------- Total $ 239 $ 211 13.3% ==========================
- - --------------------------------------------------------------------- (1) Operating cash flow represents earnings before interest, taxes, depreciation and amortization. - - --------------------------------------------------------------------- -11- EX-99.7 9 CONDENSED CONSOL. BALANCE SHEETS - AS REPORTED MediaOne Group, Inc. Condensed Consolidated Balance Sheets- As Reported
(UNAUDITED) Mar 31, Dec 31, Dollars in millions 2000 1999 - - ------------------------------------------------------------------------- ASSETS Current assets: Cash and cash equivalents $ 7,540 $ 7,471 Accounts and notes receivable, and other 534 649 ---------------------------- 8,074 8,120 ---------------------------- Property, Plant and equipment, - net 5,369 5,090 Investments: Time Warner Entertainment 2,609 2,597 Vodafone Group 9,725 8,718 International ventures 820 938 ---------------------------- 13,154 12,253 ---------------------------- Intangible and other assets - net 14,481 14,323 ---------------------------- Total $ 41,078 $ 39,786 ============================ - - ------------------------------------------------------------------------- LIABILITIES AND EQUITY Current liabilities: Short-term debt $ 1,505 $ 1,506 Other current liabilities 1,973 2,739 ---------------------------- 3,478 4,245 ---------------------------- Long-term debt: Exchangeable Notes (PIES) 4,699 4,248 Other 4,420 4,425 ---------------------------- 9,119 8,673 ---------------------------- Deferred income taxes, credits and other 8,347 7,879 Minority interest in Centaur Funding 1,115 1,113 Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely Company-guaranteed subordinated debentures 1,060 1,060 Preferred stock subject to mandatory redemption (Series E) 50 50 Shareholders' equity: Common shares 10,943 11,448 Retained earnings 5,280 4,123 Accumulated other comprehensive income 1,686 1,195 ---------------------------- 17,909 16,766 ---------------------------- Total $ 41,078 $ 39,786 ============================
- - ------------------------------------------------------------------------- -12- EX-99.8 10 SUPP. CONS. DOM. CABLE HIGHLIGHTS - AS REPORTED MediaOne Group, Inc. Supplementary Consolidated Domestic Cable Highlights-As Reported (Dollars in millions) Unaudited - - -----------------------------------------------------------------------------
2000 1999
Q1 YTD Q4 Q3 Q2 Q1 - - ----------------------------------------------------------------------------- Video Revenues Basic cable $ 459 $ 1,774 $ 447 $ 442 $ 446 $ 439 Premium 83 328 82 82 82 82 Pay-per-view 14 73 17 19 15 22 Advertising 54 204 61 50 51 42 Equip & instal 49 190 49 49 46 46 Other (2) 3 (2) 3 1 1 ---- ----- ---- ---- ---- ---- Total Video Revenues 657 2,572 654 645 641 632 Telephone and High Speed Data 49 114 39 29 24 22 ---- ----- ---- ---- ---- ---- Total Broadband Revenue $ 706 $ 2,686 $ 693 $ 674 $ 665 $ 654 ==== ===== ==== ==== ==== ==== Operating Cash Flow (1) Video (2) $ 265 $ 1,034 $ 262 $ 253 $ 259 $ 260 New Products (4) (54) (13) (11) (11) (19) ---- ------ ---- ---- ---- ---- Total Operating Cash Flow $ 261 $ 980 $ 249 $ 242 $ 248 $ 241 ==== ===== ==== ==== ==== ==== Capital Expenditures $ 459 $ 1,960 $ 545 $ 527 $ 494 $ 394
- - ----------------------------------------------------------------------------- (1)Operating cash flow represents earnings before interest, taxes, depreciation and amortization. Includes spending initiatives (e.g. systems improvements, call center consolidations, etc.) (2)Includes Year 2000 costs of $18 for the twelve months ended December 31, 1999, comprised of $2, $4, $5, and $7 for the fourth, third, second and first quarters of 1999, respectively. - - ----------------------------------------------------------------------------- -13- EX-99.9 11 SUPP. CONS. DOMESTIC CABLE HIGHLIGHTS - PRO FORMA MediaOne Group, Inc. Supplementary Consolidated Domestic Cable Highlights-Pro Forma (1) (Dollars in millions) Unaudited - - ---------------------------------------------------------------------
2000 1999
Q1 YTD Q4 Q3 Q2 Q1 - - ----------------------------------------------------------------------------- Video Revenues Basic cable $ 459 $ 1,766 $ 445 $ 443 $ 443 $ 435 Premium 83 327 83 81 82 81 Pay-per-view 14 74 16 20 16 22 Advertising 54 201 61 50 49 41 Equip & instal 49 194 49 51 47 47 Other (2) 6 1 - 2 3 ---- ----- ---- ---- ---- ---- Total Video Revenues 657 2,568 655 645 639 629 Telephone and High Speed Data 49 110 39 29 24 18 ---- ----- ---- ---- ---- ---- Total Broadband Revenue $ 706 $ 2,678 $ 694 $ 674 $ 663 $ 647 ==== ===== ==== ==== ==== ==== Operating Cash Flow (2) Video (3) $ 265 $ 1,032 $ 262 $ 253 $ 259 $ 258 New Products (4) (56) (13) (11) (11) (21) ---- ----- ---- ---- ---- ---- Total Operating Cash Flow $ 261 $ 976 $ 249 $ 242 $ 248 $ 237 ==== ===== ==== ==== ==== ====
- - ----------------------------------------------------------------------------- (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.) (3)Includes Year 2000 costs of $18 for the twelve months ended December 31, 1999, comprised of $2, $4, $5, and $7 for the fourth, third, second and first quarters of 1999, respectively. - - ----------------------------------------------------------------------------- -14- EX-27 12 FDS --
5 Financial Data Schedule 0000732718 MediaOne Group, Inc. 3-MOS DEC-31-2000 JAN-01-2000 MAR-31-2000 7,540 66 374 0 0 8,074 7,217 1,849 41,078 3,478 9,119 1,115 0 10,943 6,966 41,078 706 706 0 0 846 0 147 1,913 755 1,158 0 0 0 1,157 1.80 1.78
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