07.18.1996Financial

Second Quarter 1996 Earnings Results


BELL ATLANTIC CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (unaudited)
(In millions, except per-share amounts)

 

     
                                Three months           Six months
                               ended June 30,        ended June 30,
                              1996(a)   1995        1996(a)   1995
                           *******************************************
 OPERATING REVENUES
Transport Services:
   Local service             $1,179.4   $1,105.3   $2,319.1   $2,186.6 
   Network access               867.8      872.4    1,745.7    1,693.3 
   Toll service                 350.1      359.3      719.7      726.3
Ancillary Services:
   Directory publishing         288.8      276.9      575.0      552.9 
   Other                        148.4      138.0      280.0      272.6
Value-Added Services            386.4      330.9      758.3      657.6
                                **************************************
Network Services Revenues     3,220.9    3,082.8    6,397.8    6,089.3
     
Wireless Services             -- (a)       336.5    --  (a)      628.0 
Other Services                   38.6   145.2(b)      69.3    296.9(b)
                                ************************************** 
Total Operating Revenues      3,259.5    3,564.5   6,467.1     7,014.2
     
     
OPERATING EXPENSES
Employee costs,
 including benefits 
  and taxes                     981.8    1,060.7   1,964.2     2,094.9
Depreciation and amortization   638.8      681.7   1,267.7     1,349.4 
Other                           837.8      979.1   1,625.8     1,895.4
                                **************************************
Total Operating Expenses      2,458.4  2,721.5(b)  4,857.7  5,339.7(b)
     
OPERATING INCOME                801.1      843.0   1,609.4     1,674.5
     
Equity in income 
 of affiliates (a)               94.3       22.5     165.9        15.8
Other income (expense), net      (2.1)       5.8      (4.4)        6.9 
Interest expense                119.8      147.7     240.6       286.6 
Income before provision 
 for income taxes               773.5      723.6   1,530.3     1,410.6
Provision for income taxes      279.2      276.5     565.5       549.0
     
NET INCOME                     $494.3     $447.1    $964.8      $861.6
     
EARNINGS PER COMMON SHARE       $1.12      $1.02     $2.19       $1.97
     
CASH DIVIDENDS DECLARED
 PER COMMON SHARE                $.72       $.70     $1.44(c)    $1.40
     
WEIGHTED AVERAGE NUMBER OF COMMON
 AND EQUIVALENT SHARES
  OUTSTANDING                   439.6      437.7     439.9       437.6
     
     
     
Other Selected Data (unaudited)
******************************* 
                                                   June 30,
                                          1996                1995
                                      ********************************
     
Return on Average Common Equity
   Three months ended                   27.8%                28.4% 
   Six months ended                     27.5%                27.5%
Total Assets (in millions)              $23,795.7            $24,819.9 
Total Employees 60,800  72,300 (d)

 

  • (a) On July 1, 1995, the company contributed its domestic cellular business to a partnership and accounts for its share of the partnership's results under the equity method.

    (b) Includes revenues and expenses from Bell Atlantic Business Systems Services, sold in October 1995, as follows:

     

         
                              Three months ended         Six months ended 
                                June 30, 1995             June 30, 1995
         Operating Revenues 
         - Other Services           $123.1                    $246.9 
         Operating Expenses          126.1                     243.6
    

    (c) Includes payment of $.005 per common share for redemption of rights granted under the company's Shareholder Rights Plan.

    (d) Total Employees in 1995 includes employees of Bell Atlantic Mobile (3,800), which was contributed to a partnership on July 1, 1995, and Bell Atlantic Business Systems Services (4,200), which was sold in October, 1995. These employees are no longer included at June 30, 1996.

 


 

BELL ATLANTIC CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (unaudited)
(In millions)

   
                                         Six months ended June 30,
                                         1996                1995
                                     ********************************  
     
     
CASH FLOW FROM OPERATING ACTIVITIES
Net income                              $964.8              $861.6 
Depreciation and amortization          1,267.7             1,349.4 
Equity in income of affiliates          (165.9)              (15.8) 
Dividends received from affiliates        60.9                 5.8 
Other, net                              (243.3)             (355.5)
     
NET CASH PROVIDED BY 
 OPERATING ACTIVITIES                  1,884.2             1,845.5
     
NET CASH USED IN 
 INVESTING ACTIVITIES                 (1,115.8)           (1,871.5)
     
NET CASH USED IN 
 FINANCING ACTIVITIES                 (1,061.5)              (55.4)
     
Decrease in Cash 
 and Cash Equivalents                   (293.1)              (81.4)
     
Cash and Cash Equivalents, 
 Beginning of Period                     356.8               142.9
     
Cash and Cash Equivalents, 
End of Period                            $63.7               $61.5
     

BELL ATLANTIC NYNEX MOBILE CELLULAR OPERATIONS PRO FORMA (unaudited)

The following unaudited pro-forma selected operating and financial data give effect to the combination of Bell Atlantic Mobile and NYNEX Mobile Communications prior to July 1, 1995, and have been adjusted for certain intercompany transactions and the disposition of overlapping properties. These pro-forma results are an approximate representation of Bell Atlantic NYNEX Mobile (BANM) results "as if" the company had been in existence prior to July 1, 1995.

 

      
     
                                      Three months ended June 30,
     
     
                                   1996          1995         % change
********************************************************************** 
Selected Operating Data
***********************
Controlled POPs (1) (000)         55,840        55,840          0.0 
Owned POPs (2) (000)              53,788        53,511          0.5 
Subscribers (000)                  3,822         2,744         39.3 
Penetration (3)                        6.84%         4.91%     39.2 
Churn                                  1.77%         1.61%      9.9 
Revenues per subscriber 
 per month (4)                       $62           $67         (7.5)
Acquisition cost 
 per gross add (5)                  $201          $223         (9.9)
Cash expense per subscriber          $36           $40        (10.0)
     
Selected Financial Data
***********************
(Dollars in millions)
Operating revenues (6)              $631.6        $486.5       29.8 
Less:  Cost of equipment              81.1          59.4       36.5 
Net revenues                         550.5         427.1       28.9 
Operating income                     153.4         109.4       40.2 
Pre-tax income (7)                   139.7          96.6       44.6 
Operating cash flow (8)              236.2         172.2       37.2 
Operating cash flow margin             43%           40%        7.5 
Capital expenditures
   excluding acquisitions            203.6         136.6       49.0
     

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