-----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, AvixuqfH5cnqJQWfg8wBlzYkBqIjBtpelY08jzu0kk0yfoQpQ7KsoD96Jn2FSxQi lzOUu8PxGAzuH9PiemxzjA== 0000732718-99-000035.txt : 19990729 0000732718-99-000035.hdr.sgml : 19990729 ACCESSION NUMBER: 0000732718-99-000035 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 13 CONFORMED PERIOD OF REPORT: 19990630 ITEM INFORMATION: FILED AS OF DATE: 19990728 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: 99671776 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 2ND QUARTER 1999 =============================================================================== UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 27, 1999 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 July 27, 1999 MediaOne Group, Inc. released its second quarter 1999 earnings results. The releases and financial statements are attached hereto as Exhibits. Item 7. Exhibits
Exhibit Description 27 Financial Data Schedule 99 Press Release issued July 27, 1999 concerning the earnings results of MediaOne Group, Inc. for the quarter ended June 30, 1999. 99.1 Proportionate Results Highlights of MediaOne Group, Inc. for the three months ended June 30, 1998 and 1999 and the six months ended June 30, 1998 and 1999, filed in connection with the Press Release dated July 27, 1999. 99.2 Pro Forma Consolidated Domestic Cable Highlights of MediaOne Group, Inc. for the three months ended June 30, 1998 and 1999 and the six months ended June 30, 1998 and 1999, filed in connection with the Press Release dated July 27, 1999. 99.3 Pro Forma Key Operating Statistics - Domestic Cable - of MediaOne Group, Inc. for the quarters ended June 30, 1999, March 31, 1999 and June 30, 1998, as filed in connection with the Press Release dated July 27, 1999. 99.4 Pro Forma Key Operating Statistics - International - of MediaOne Group, Inc. for the quarters ended June 30, 1999, March 31, 1999 and June 30, 1998, filed in connection with the Press Release dated July 27, 1999. 99.5 Consolidated Statement of Operations of MediaOne Group, Inc. for the three months ended June 30, 1998 and 1999 and the six months ended June 30, 1998 and 1999, filed in connection with the Press Release dated July 27, 1999. 99.6 Earnings Per Share Highlights of MediaOne Group, Inc. for the three months ended June 30, 1998 and 1999 and the six months ended June 30, 1998 and 1999, as filed in connection with the Press Release dated July 27, 1999. 99.7 Consolidated Revenues and Operating Cash Flow Highlights - As Reported - of MediaOne Group, Inc. for the three months ended June 30, 1998 and 1999 and the six months ended June 30, 1998 and 1999, as filed in connection with the Press Release dated July 27, 1999. 99.8 Condensed Consolidated Balance Sheets - As Reported, for MediaOne Group, Inc. as of ended June 30, 1999 and December 31, 1998, as filed in connection with the Press Release dated July 27, 1999. 99.9 Supplemental Consolidated Domestic Cable Highlights - As Reported, of MediaOne Group, Inc. for the three months ended March 31, 1998, June 30, 1998, September 30, 1998, December 31, 1998, March 31, 1999 and June 30, 1999, and for the twelve months ended December 31, 1998, as filed in connection with the Press Release dated July 27, 1999. 99.10 Supplemental Consolidated Domestic Cable Highlights - Pro Forma, of MediaOne Group, Inc. for the three months ended March 31, 1998, June 30, 1998, September 30, 1998, December 31, 1998, March 31, 1999 and June 30, 1999, and for the twelve months ended December 31, 1998, as filed in connection with the Press Release dated July 27, 1999.
-2- 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: July 27, 1999 -3- 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 Supplemental Domestic Cable Supplementary Quarterly Data - As Reported 13 Supplementary Quarterly Data - Pro Forma 14
-4- EX-99 2 PRESS RELEASE July 27, 1999 Cathy Fowler, 303-858-3405 Steve Lang, 303-858-3406 MediaOne Group Operating Cash Flow Up 15 Percent -- Company Rolls Out Digital Video in Three New Markets; Continues Aggressive Deployment of Telephone Service -- -- Operating Performance Solid as Company Prepares for Merger into AT&T -- ENGLEWOOD, Colo. -- MediaOne Group (NYSE: UMG) today reported second quarter 1999 proportionate operating cash flow of $720 million, up 15 percent on a pro-forma basis over the same quarter a year ago. Proportionate revenue increased 12 percent on a pro-forma basis, to $1.9 billion.* MediaOne continued to upgrade its network, which passes about 8.5 million U.S. homes, and is on target to end the year with about 70 percent of the network fully upgraded to 750 MHz, two-way. Those upgrades are making it possible for the company to offer popular new services such as digital video, telephone and high-speed data services to more customers. MediaOne International continued its impressive growth, increasing the number of subscriptions by 49 percent and providing 9.9 million video, telephone and Internet-access subscriptions to customers in Europe and Asia. "Since the end of the first quarter, we agreed to merge with AT&T, having determined that its offer was superior to the earlier offer from Comcast. Our focus now is on keeping our business operating at peak performance while we work through the merger process, including regulatory filings and transfers of cable licenses," said Chuck Lillis, chairman and chief executive officer of MediaOne Group. "That focus is paying off. MediaOne continued to deliver steady growth in revenues and new products while consolidating call centers and implementing a new billing system. And MediaOne International continued to - more - deliver dazzling growth in subscriptions, revenue and operating cash flow, even as the company begins to exit the International businesses in preparation for the AT&T merger." MediaOne -- the U.S. broadband business Revenue for MediaOne was $665 million, up 10 percent on a pro-forma basis for the quarter. Operating cash flow was $248 million, up 5 percent pro-forma. Basic video subscriber growth increased 1.2 percent on a pro-forma basis for the quarter. In addition, the company introduced digital video services in Atlanta, Cleveland and Richmond, Virginia. Digital video service was launched in Detroit last year. In April, Detroit became the latest market to offer digital telephone services, bringing to seven the number of markets in which MediaOne's telephone services are available. MediaOne is adding telephone customers at an impressive rate, and now serves nearly 36,000 telephone lines used by 26,000 customers. That's a 64 percent increase in telephone lines since the end of the first quarter. MediaOne reported 140,000 MediaOne Road Runner high-speed data customers, a 23 percent increase since the end of the first quarter. 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 $781 million, up 10 percent on a pro-forma basis over second quarter 1998. MediaOne Group's share of TWE's reported earnings before interest, taxes, depreciation, amortization and other associated costs for the quarter was $393 million, up 9 percent pro-forma over the same period last year. MediaOne International -- the international broadband and wireless joint ventures MediaOne International's pro-forma proportionate operating cash flow increased 63 percent on a pro-forma basis during second quarter compared to the same period last year, to $98 million. Proportionate revenue was up 23 percent on a pro-forma basis, to $456 million. International operations now provide 9.9 million video, telephone, wireless and Internet-access subscriptions to customers in Europe and Asia, an increase of 49 percent year over year. Broadband video customers grew by 11 percent year over year; telephone line growth was 20 percent, and Internet-access customers more than doubled. Wireless customers grew by 87 percent over the same time period. 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 1998, the businesses that comprise MediaOne Group produced $7.1 billion in proportionate revenue. On May 6, 1999, the company entered into an agreement to merge with AT&T. - more - *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.] ### EX-99.1 3 PROPORTIONATE RESULTS HIGHLIGHTS MediaOne Group, Inc. Proportionate Results Highlights (1) (UNAUDITED)
Three Six Months Ended Pro Months Ended Pro Dollars in June 30, Forma(2) June 30, Forma(2) millions
1999 1998 % % 1999 1998 % % - ------------------------------------------------------------------------------ Proportionate Revenue MediaOne $ 665 $ 607 9.6% 10.1% $1,319 $1,226 7.6% 10.7% Multimedia Ventures (3) 781 728 7.3 9.7 1,529 1,470 4.0 8.2 International 456 341 33.7 22.6 896 659 36.0 24.8 Corporate & other 3 26 (88.5)(183.3) 7 42 (83.3) (136.4) ----- ------ ------ ------ ----- ----- ------ ------ $1,905 $1,702 11.9% 12.0% $3,751 $3,397 10.4% 12.2% ===== ====== ====== ====== ====== ====== ====== ====== Proportionate Operating Cash Flow(4) MediaOne $ 248 $ 239 3.8% 5.1% $ 489 $ 479 2.1% 2.7% Multimedia Ventures (3) 393 206 90.8 8.7 636 394 61.4 7.2 International 98 51 92.2 63.3 199 68 192.6 136.9 Corporate & other (19) (17)(11.8) (9.1) (38) (30)(26.7) (2.9) ------- ------ ----- ----- ------- ------ ----- ----- $ 720 $ 479 50.3% 14.9% $1,286 $ 911 41.2% 17.3% ====== ====== ===== ===== ====== ====== ====== =====
- --------------------------------------------------------------------- (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 $1,897 and $1,694 for the three months ended June 30, 1999 and 1998, respectively, and $3,740 and $3,333 for the respective six month periods. Total pro forma operating cash flow would be $525 and $457 for the three months ended June 30, 1999 and 1998, respectively, and $1,038 and $885 for the respective six month periods. (3) Includes 25.51% of Time Warner Entertainment's reported results. (4) Operating cash flow represents earnings before interest, taxes, depreciation and amortization. - --------------------------------------------------------------------- -5- EX-99.2 4 PRO FORMA CONS. DOMESTIC CABLE HIGHLIGHTS MediaOne Group, Inc. Consolidated Domestic Cable Highlights-Pro Forma (1) MediaOne (UNAUDITED)
Three Six Months Ended Months Ended Dollars in June 30, June 30, millions
1999 1998 Percent 1999 1998 Percent - ----------------------------------------------------------------------------- Video Revenues Basic cable $ 446 $ 420 6.2% $ 885 $ 833 6.2% Premium 82 80 2.5 164 159 3.1 Pay-per-view 15 12 25.0 37 25 48.0 Advertising 51 40 27.5 93 71 31.0 Equip. & instal. 46 44 4.5 92 84 9.5 Other 1 - - 2 1 100.0 ------------ ------------- Total Video Revenues 641 596 7.6 1,273 1,173 8.5 Telephone and High Speed Data 24 8 200.0 46 18 155.6 ------------ ------------- Total Broadband Revenue $ 665 $ 604 10.1% $1,319 $1,191 10.7% ============ ============== Operating Cash Flow(2) Video (excluding Y2K costs) $ 264 $ 252 4.8% $ 531 $ 502 5.8% Telephone and High Speed Data (11) (15) 26.7 (30) (25) (20.0) Year 2000 costs (5) (1) (400.0) (12) (1) (1,100.0) ------------ -------------- Total Operating Cash Flow $ 248 $ 236 5.1% $ 489 $ 476 2.7% ============ ==============
- --------------------------------------------------------------------- (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.) - --------------------------------------------------------------------- -6- EX-99.3 5 PRO FORMA KEY OPERATING STATISTICS-DOMESTIC CABLE MediaOne Group, Inc. Key Operating Statistics- Pro Forma (1)
For the Quarter Ended In thousands, except June 30, Mar. 31, June 30, dollar amounts 1999 1999 1998 - --------------------------------------------------------------------- OPERATING STATISTICS- DOMESTIC CABLE - ---------------------------------------- MediaOne Domestic Cable Statistics - -------------- Homes Passed 8,540 8,527 8,435 Basic Video Customers 4,994 4,966 4,935 Basic Video Customer Growth (Y/Y) 1.2% 1.1% 1.5% Basic Video Penetration 58.5% 58.2% 58.5% High Speed Data Customers 140 114 39 Telephone Customers 26 17 1 Telephone Lines 36 22 2 Results Per Customer: - ---------------------- Video Monthly Revenue per Customer $ 42.85 $ 42.45 $ 40.31 Total Monthly Broadband Revenue per Customer $ 44.46 $ 43.93 $ 40.84 Video EBITDA Margin (with Year 2000 costs) 40.4% 41.1% 42.1% Total EBITDA Margin 37.3% 36.9% 39.1% - --------------------------------------------------------------------- Time Warner Entertainment (2) Homes Passed 18,168 17,938 15,780 Basic Video Customers 11,208 11,153 9,874 High Speed Data Customers 186 148 50
- --------------------------------------------------------------------- (1) Results reflect pro forma adjustments for acquisitions, dispositions and other asset transactions. (2) MediaOne Group has 50% management control of TWE domestic broadband business and a 25.51% equity ownership. TWE numbers are as reported versus pro forma numbers. - --------------------------------------------------------------------- -7- EX-99.4 6 PRO FORMA KEY OPERATINGS STATISTICS - INT'L. MediaOne Group, Inc. Key Operating Statistics- Pro Forma (1)
For the Quarter Ended June 30, Mar. 31, June 30, In thousands 1999 1999 1998 - --------------------------------------------------------------------- OPERATING STATISTICS (Venture Level)- INTERNATIONAL BROADBAND - ------------------------------------- U.K. and European Cable/Telephone (2) Homes Passed 5,421 5,419 5,288 Video Customers 1,943 1,926 1,803 Telephone Lines 1,740 1,679 1,455 Internet Access Customers 58 45 25 Asian Cable/Telephone (3) Homes Passed 1,836 1,787 1,521 Video Customers 306 283 222 Telephone Lines 9 7 2 Internet Access Customers 5 2 - - --------------------------------------------------------------------- OPERATING STATISTICS (Venture Level)- INTERNATIONAL WIRELESS - ------------------------------------- One 2 One POPs 58,000 58,000 58,000 Customers 2,650 2,250 1,358 Customer Growth (Y/Y) 95.1% 87.8% 93.7% Central European Wireless POPs 63,900 63,900 63,900 Customers 3,012 2,520 1,625 Customer Growth (Y/Y) 85.4% 74.5% 79.6% Asian and Other Wireless POPs 76,900 76,900 76,900 Customers 170 155 132 - --------------------------------------------------------------------- OPERATING STATISTICS (Venture Level)- TOTAL INTERNATIONAL SUBSCRIPTIONS - ------------------------------------- Video Customers 2,249 2,209 2,025 Wireless Customers 5,832 4,925 3,115 Telephone Lines 1,749 1,686 1,457 Internet Access Customers 63 47 25 --------- --------- --------- Total International Subscriptions 9,893 8,867 6,622 Growth (Y/Y) 49.4% 43.6% 39.5%
- --------------------------------------------------------------------- (1) Results reflect pro forma adjustments for acquisitions, dispositions and other asset transactions. (2) MediaOne International changed its ownership in Telewest from 26.8% in second quarter 1998 to 21.6% in third quarter 1998, 29.9% in fourth quarter 1998, and 29.8% in first quarter 1999. (3) MediaOne International increased its ownership in TITUS to 50% on 6/30/99. - --------------------------------------------------------------------- -8- EX-99.5 7 CONSOLIDATED STATEMENT OF OPERATIONS MediaOne Group, Inc. Consolidated Operations Highlights- As Reported (1) (UNAUDITED)
Three Months Ended Six Months Ended June 30, June 30,
Dollars in millions 1999 1998 1999 1998 - ---------------------------------------------------------------------------- REVENUES $ 662 $ 641 $ 1,327 $ 1,613 Cost of sales 265 241 534 558 Selling, general and admin. 179 195 364 502 -------- -------- --------- --------- OPERATING CASH FLOW (2) 218 205 429 553 Depreciation & amortization (328) (258) (578) (606) Interest expense, minority guarantee, other (172) (163) (317) (335) Equity losses in unconsolidated ventures (87) (69) (202) (205) Gains on sales of investments (3) 2,512 3,891 2,706 3,908 Merger related costs (4) (1,507) - (1,522) - Other income (expense) 31 110 3 73 Income tax benefit (expense) (843) (1,542) (806) (1,436) -------- --------- -------- --------- EARNINGS (LOSS) FROM CONTINUING OPERATIONS (176) 2,174 (287) 1,952 Discontinued operations income, net of tax (5) - 24,774 - 25,208 Extraordinary item, net of tax 17 (333) 17 (333) -------- --------- -------- --------- NET INCOME (LOSS) (159) 26,615 (270) 26,827 Loss on redemption of preferred securities - (53) - (53) Preferred dividends and accretion (14) (13) (28) (26) -------- --------- -------- --------- EARNINGS (LOSS) AVAILABLE FOR COMMON STOCK $ (173) $ 26,549 $ (298) $ 26,748 ======== ========= ======== ==========
- --------------------------------------------------------------------- (1) Domestic wireless operations were sold in April, 1998. (2) Operating cash flow represents earnings before interest, taxes, depreciation and amortization. (3) 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 three and six months ended June 30, 1999. Includes a $3,869 gain on sale of domestic wireless operations for the three and six months ended June 30, 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 $242 for the three months and $589 for the six months ended June 30, 1998. - --------------------------------------------------------------------- -9- EX-99.6 8 EARNINGS PER SHARE HIGHLIGHTS MediaOne Group, Inc. Earnings Per Share Highlights (UNAUDITED)
Three Months Ended Six Months Ended June 30, June 30,
1999 1998 1999 1998 - ----------------------------------------------------------------------------- Earnings Per Share - As Reported Average Shares Outstanding (millions) Basic 605.7 609.1 604.8 608.7 Diluted 605.7 653.6 604.8 652.6 Basic Earnings (Loss) per Common Share Earnings (loss) from Continuing Ops $ (0.31) $ 3.46 $ (0.52) $ 3.08 Total earnings (loss)$ (0.29) $ 43.19 $ (0.49) $ 42.98 Diluted Earnings (Loss) per Common Share Earnings (loss) from Continuing Ops $ (0.31) $ 3.24 $ (0.52) $ 2.91 Total earnings (loss)$ (0.29) $ 40.27 $ (0.49) $ 40.12 - ----------------------------------------------------------------------------- Common Shares (millions) Actual Shares Outstanding 606.2 608.9 606.2 608.9 - ----------------------------------------------------------------------------- Normalized Earnings Per Share Basic EPS - Continuing Ops $ (0.31) $ 3.46 $ (0.52) $ 3.08 Adjustment for One Time Unusual Transactions Domestic Wireless Operations and Gain on Sale - (3.72) - (3.75) Loss on Redemption of Preferred Securities - 0.09 - 0.09 Gain on Sale of Investments (0.02) (0.02) (0.22) (0.04) Primestar Loss - - 0.07 - Vodafone Gain (2.52) - (2.52) - Merger Costs 2.47 - 2.50 - Other Gains (Losses) 0.02 (0.06) 0.02 - -------- -------- -------- -------- Normalized Basic EPS - Continuing Operations $ (0.36) $ (0.25) $ (0.67) $ (0.62) ======== ======== ======== ========
- ----------------------------------------------------------------------------- -10- EX-99.7 9 CONS. REVENUES & OPERATING CASH FLOW HIGHLIGHTS MediaOne Group, Inc. Consolidated Revenues and Operating Cash Flow Highlights- As Reported (Unaudited)
Three Six Months Ended Months Ended June 30, June 30,
Dollars in millions 1999 1998 Percent 1999 1998 Percent - ----------------------------------------------------------------------------- Consolidated Revenues MediaOne $ 665 $ 607 9.6% $ 1,319 $ 1,226 7.6% International - 6 (100.0) 7 11 (36.4) Corporate & other (3) 8 (137.5) 1 15 (93.3) --------------- ------------------ Current Operations 662 621 6.6% 1,327 1,252 6.0% Domestic wireless - 20 N/M - 361 N/M --------------- ------------------ Total $ 662 $ 641 N/M $ 1,327 $ 1,613 N/M =============== ================== Consolidated Operating Cash Flow (1) MediaOne $ 248 $ 239 3.8% $ 489 $ 479 2.1% International - (1) 100.0 - (3) 100.0 Corporate & other (30) (43) 30.2 (60) (71) 15.5 ---------------- ------------------ Current Operations 218 195 11.8% 429 405 5.9% Domestic wireless - 10 N/M - 148 N/M --------------- ------------------ Total $ 218 $ 205 N/M $ 429 $ 553 N/M =============== ==================
- ------------------------------------------------------------------------------ (1) Operating cash flow represents earnings before interest, taxes, depreciation and amortization. N/M-Not meaningful due to the sale of the domestic wireless businesses. - ------------------------------------------------------------------------------ -11- EX-99.8 10 CONDENSED CONS. BALANCE SHEETS - AS REPORTED MediaOne Group, Inc. Condensed Consolidated Balance Sheets- As Reported (UNAUDITED)
June 30, December 31, Dollars in millions 1999 1998 - -------------------------------------------------------------------------- ASSETS Current assets: Cash and cash equivalents $ 1,032 $ 415 Accounts and notes receivable, and other 1,099 785 ------------------------- 2,131 1,200 ------------------------- Property and equipment - net 4,501 4,069 Investments: Time Warner Entertainment 2,479 2,442 Vodafone Group/AirTouch Communications 7,310 5,919 International ventures 643 1,344 -------------------------- 10,432 9,705 -------------------------- Intangible and other assets - net 13,447 13,218 -------------------------- Total $ 30,511 $ 28,192 ========================== - ---------------------------------------------------------------------------- LIABILITIES AND EQUITY Current liabilities: Short-term debt $ 1,718 $ 569 Other current liabilities 1,185 1,045 -------------------------- 2,903 1,614 -------------------------- Long-term debt: Exchangeable Notes (PIES) 2,525 1,702 Other 3,720 3,151 -------------------------- 6,245 4,853 -------------------------- Deferred income taxes, credits and other 7,096 6,676 Minority interest in Centaur Funding 1,107 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) 100 100 Shareholders' equity: Preferred shares (Series D) 929 927 Common shares 10,409 10,324 Retained earnings 371 669 Accumulated other comprehensive income 291 869 -------------------------- 12,000 12,789 -------------------------- Total $ 30,511 $ 28,192 =========================
- ---------------------------------------------------------------------------- -12- EX-99.9 11 SUPPLEMENTARY CONS. DOMESTIC CABLE HIGHLIGHTS MediaOne Group, Inc. Supplementary Consolidated Domestic Cable Highlights - As Reported (1) (Dollars in millions) Unaudited
1999 1998
Q2 Q1 YTD Q4 Q3 Q2 Q1 - ------------------------------------------------------------------------------ Video Revenues Basic cable $ 446 $ 439 $ 1,673 $ 420 $ 421 $ 420 $ 412 Premium 82 82 322 82 81 80 79 Pay-per-view 15 22 52 12 16 11 13 Advertising 51 42 157 49 37 40 31 Equipment & instal. 46 46 176 46 46 44 40 Other 1 1 3 2 - 1 - ----- ----- ------- ----- ----- ----- ----- Total Video Revenues 641 632 2,383 611 601 596 575 Primestar - - 34 - - - 34 Telephone and High Speed Data 24 22 50 16 13 11 10 ----- ----- ------- ----- ----- ----- ----- Total Broadband Revenue$ 665 $ 654 $ 2,467 $ 627 $ 614 $ 607 $ 619 ===== ===== ======= ===== ===== ===== ===== Operating Cash Flow (2) Video (excluding Y2K costs) $ 264 $ 267 $ 1,008 $ 260 $ 248 $ 254 $ 246 Primestar - - 4 - - - 4 New Products (11) (19) (58) (19) (15) (14) (10) Year 2000 costs (5) (7) (13) (6) (6) (1) - ----- ----- ------- ----- ----- ----- ----- Total Operating Cash Flow $ 248 $ 241 $ 941 $ 235 $ 227 $ 239 $ 240 ===== ===== ======= ===== ===== ===== ===== Capital Expenditures $ 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.) - ------------------------------------------------------------------------------ EX-99.10 12 SUPP. CONS. DOMESTIC CABLE HIGHLIGHTS-PRO FORMA -13- MediaOne Group, Inc. Supplementary Consolidated Domestic Cable Highlights - Pro Forma (1) (Dollars in millions) Unaudited
1999 1998
Q2 Q1 YTD Q4 Q3 Q2 Q1 - ------------------------------------------------------------------------------ Video Revenues Basic cable $ 446 $ 439 $ 1,675 $ 420 $ 422 $ 420 $ 413 Premium 82 82 323 82 82 80 79 Pay-per-view 15 22 52 12 15 12 13 Advertising 51 42 157 49 37 40 31 Equipment & instal. 46 46 177 47 46 44 40 Other 1 1 2 1 - - 1 ----- ----- ------- ----- ----- ----- ----- Total Video Revenues 641 632 2,386 611 602 596 577 Telephone and High Speed Data 24 22 39 12 9 8 10 ----- ----- ------- ----- ----- ----- ----- Total Broadband Revenue$ 665 $ 654 $ 2,425 $ 623 $ 611 $ 604 $ 587 ===== ===== ======= ===== ===== ===== ===== Operating Cash Flow (2) Video (excluding Y2K costs) $ 264 $ 267 $ 1,010 $ 260 $ 248 $ 252 $ 250 New Products (11) (19) (61) (20) (16) (15) (10) Year 2000 costs (5) (7) (13) (6) (6) (1) - ----- ----- ------- ----- ----- ----- ----- Total Operating Cash Flow $ 248 $ 241 $ 936 $ 234 $ 226 $ 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.) - ------------------------------------------------------------------------------ -14- EX-27 13 FDS --
5 (Replace this text with the legend) 0000732718 MediaOne Group, Inc. 3-MOS 6-MOS DEC-31-1999 DEC-31-1999 APR-01-1999 JAN-01-1999 JUN-30-1999 JUN-30-1999 1,032 1,032 56 56 409 409 0 0 0 0 2,131 2,131 5,897 5,897 1,396 1,396 30,511 30,511 2,903 2,903 6,245 6,245 1,160 1,160 929 929 10,409 10,409 662 662 30,511 30,511 662 1,327 662 1,327 0 0 0 0 772 772 0 0 103 199 667 519 (843) (806) (176) (287) 0 0 17 17 0 0 (173) (298) (0.29) (0.49) (0.29) (0.49)
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