Unaudited third quarter earnings reports
Bell Atlantic's unaudited third quarter earnings reports for 1997
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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.