10.22.1997Corporate

Unaudited Third Quarter Earnings Reports




Unaudited Third Quarter Earnings Reports







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BELL ATLANTIC CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Income (unaudited)

(In millions, except per-share amounts)

Three months ended
September 30,

Nine months ended
September 30,

1997

1996

1997

1996

Operating Revenues

Local services

$3,321.5

$3,151.4

$9,773.8

$9,331.8

Network access services

1,666.2

1,822.5

5,377.8

5,347.6

Long distance services

546.7

614.2

1,678.1

1,872.0

Ancillary services

465.8

444.9

1,362.7

1,268.4

Directory and information services

496.1

519.4

1,649.4

1,631.0

Wireless services

842.0

709.7

2,439.7

1,988.2

Other services

35.6

114.5

216.7

311.0

Total Operating Revenues

7,373.9

7,376.6

22,498.2

21,750.0

Operating Expenses

Employee costs

2,337.8

2,181.6

6,956.9

6,592.3

Depreciation and amortization

1,724.0

1,331.5

4,459.1

4,027.8

Taxes other than income

475.2

390.6

1,252.4

1,132.3

Other operating expenses

2,415.9

1,805.7

6,102.4

5,385.0

Total Operating Expenses

6,952.9

5,709.4

18,770.8

17,137.4

Operating Income

421.0

1,667.2

3,727.4

4,612.6

Income (loss) from unconsolidated businesses

(121.5)

14.9

(236.9)

51.9

Other income (expense), net

(13.0)

(35.0)

(19.5)

(65.4)

Interest expense

298.1

266.4

918.7

813.0

Income (loss) before provision for income taxes and cumulative effect of change in accounting principle

(11.6)

1,380.7

2,552.3

3,786.1

Provision for income taxes

68.5

508.9

1,037.4

1,394.5

Income (loss) before cumulative effect of change in accounting principle

(80.1)

871.8

1,514.9

2,391.6

Cumulative effect of change in accounting principle:

Directory publishing, net of tax

--

--

--

273.1

Net Income (Loss)

$(80.1)

$871.8

$1,514.9

$2,664.7

BELL ATLANTIC CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Income (unaudited) - continued

(In millions, except per-share amounts)

Three months ended

Nine months ended

September 30,

September 30,

1997

1996

1997

1996

Per Common Share amounts

Income (loss) before cumulative effect of change in accounting principle

$(0.10)

$1.13

$1.95

$3.10

Cumulative effect of change in accounting principle

--

--

--

.35

Net Income (loss)

$(0.10)

$1.13

$1.95

$3.45

Cash dividends declared per common share

$.77

$.72

$2.25

$2.16(a)

Weighted average number of common shares outstanding

776.4

774.9

775.8

772.8

Other Selected Data (unaudited)

Three months ended

Nine months ended

September 30,

September 30,

1997

1996

1997

1996

Return on average common equity

(2.4)%

27.7%

15.0%

28.8%

Total assets

$52,890.9

$51,236.8

$52,890.9

$51,236.8

Total employees

141,801

135,480

141,801

135,480

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

BELL ATLANTIC CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (unaudited)

(In millions)

Nine months ended September 30,

1997

1996

Cash Flows from Operating Activities

Net income

$1,514.9

$2,664.7

Depreciation and amortization

4,459.1

4,027.8

Cumulative effect of change in accounting

--

(273.1)

Loss from unconsolidated businesses

281.7

22.5

Dividends received from unconsolidated businesses

101.1

95.4

Other, net

(356.3)

(437.6)

Net Cash Provided by Operating Activities

6,000.5

6,099.7

Net Cash Used in Investing Activities

(4,693.8)

(4,452.4)

Net Cash Used in Financing Activities

(1,240.3)

(1,897.8)

Increase (Decrease) in Cash and Cash Equivalents

66.4

(250.5)

Cash and Cash Equivalents, Beginning of Period

249.4

462.9

Cash and Cash Equivalents, End of Period

$315.8

$212.4

BELL ATLANTIC GLOBAL WIRELESS PROPORTIONATE DATA
(Unaudited)

Three Months ended September 30,1997

1997

1996

% change

Combined Global Wireless:

Subscribers (000)

5,829

4,287

36.0

Subscribers net adds in period (000)

363

294

23.8

POPs (000)

172,817

168,889

2.3

Bell Atlantic Mobile:

Selected Financial Results

(Dollars in Millions)

Operating revenues

(1)

$732.3

$631.9

15.9

Less: equipment revenues

33.1

33.8

(2.1)

Service revenues

699.2

598.1

16.9

Operating income

216.3

156.9

37.9

Operating cash flow

(2)

$327.2

$231.5

41.3

Operating cash flow margin

(3)

47%

39%

Capital expenditures, excluding acquisitions

$163.9

$263.1

(37.7)

Selected Operating Data

Subscribers (000)

5,064

4,054

24.9

Penetration

(4)

8.9%

7.2%

23.6

Subscribers net adds in period (000)

189

232

(18.5)

Controlled POPs (000)

(5)

56,830

56,502

0.6

Owned POPs (000)

(6)

54,944

54,562

0.7

Churn rate

1.7%

1.8%

Total revenue per subscriber

(7)

$54

$58

(6.9)

Service revenue per subscriber

$47

$51

(7.8)

Cash expense per subscriber

$25

$31

(19.4)

Acquisition cost per subscriber

(8)

$226

$235

(3.8)

PrimeCo Personal Communications:

Subscribers (000)

122

Subscriber net adds in period (000)

28

POPs (000)

28,487

28,487

0.0

International Wireless Operations:

(9)

Subscribers (000)

643

233

176.0

Subscriber net adds in period (000)

146

62

135.5

POPs (000)

87,500

83,900

4.3

(Dollars in Millions)

Operating revenues

$125.2

$69.8

79.4

Operating income (loss)

$12.7

$(11.0)

Operating cash flow

$42.5

$5.9

620.3

Footnotes:

(1)Operating revenues include service revenues, outcollect roaming, and equipment revenues.

(2)Operating cash flow equals operating income plus depreciation and amortization.

(3)Operating cash flow margin is calculated by dividing operating cash flow by service revenues.

(4)Penetration is calculated by dividing subscribers by controlled POPs.

(5)Controlled POPs represent the total number of POPs for markets in which BAM has operating control.

(6)Owned POPs represent BAM percentage ownership in all licensed markets.

(7)Revenue per subscriber is calculated using service revenues, incollect roaming, outcollect roaming and equipment revenue. Incollect roaming revenues were $71.0 million for the three-month period ended 9/30/97 and $58.3 million for the three-month period ended 9/30/96.

(8)Acquisition costs include commission expense and loss on handsets.

(9)Represents Bell Atlantic's proportionate share of International Wireless investments including consolidated, equity method, and cost basis investments.