10.22.1997Corporate

Unaudited third quarter earnings reports

Bell Atlantic's unaudited third quarter earnings reports for 1997

Unaudited Third Quarter Earnings Reports

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.

 

 

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