Exhibit 99.1
Qwest Communications International Inc.
Condensed Consolidated Statements of Operations
(Dollars and shares in millions, except per share amounts)
(unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2002 | 2001 | 2002 | 2001 | |||||||||||||||
Operating revenues: | ||||||||||||||||||
Business services | $ | 1,551 | $ | 1,657 | $ | 3,096 | $ | 3,439 | ||||||||||
Consumer services | 1,410 | 1,481 | 2,839 | 2,944 | ||||||||||||||
Wholesale services | 995 | 1,699 | 2,016 | 3,148 | ||||||||||||||
Directory services | 345 | 348 | 695 | 690 | ||||||||||||||
Network services and other revenues | 15 | 34 | 35 | 46 | ||||||||||||||
Total operating revenues | 4,316 | 5,219 | 8,681 | 10,267 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Cost of sales (exclusive of items shown separately below) | 1,644 | 1,848 | 3,217 | 3,643 | ||||||||||||||
Selling, general and administrative | 1,699 | 1,342 | 3,038 | 2,600 | ||||||||||||||
Depreciation | 1,075 | 865 | 2,129 | 1,696 | ||||||||||||||
Depreciation adjustment for access lines returned to service | — | 222 | — | 222 | ||||||||||||||
Goodwill and other intangible amortization | 85 | 392 | 170 | 711 | ||||||||||||||
Merger-related and other charges | — | 415 | — | 624 | ||||||||||||||
Total operating expenses | 4,503 | 5,084 | 8,554 | 9,496 | ||||||||||||||
Operating (loss) income | (187 | ) | 135 | 127 | 771 | |||||||||||||
Other expense-net: | ||||||||||||||||||
Interest expense-net | 455 | 343 | 866 | 681 | ||||||||||||||
Investment write-downs | 740 | 3,108 | 1,202 | 3,247 | ||||||||||||||
Loss on sale of investments and fair market value adjustments, net | 11 | 23 | 21 | — | ||||||||||||||
Gain on sale of rural exchanges | — | (50 | ) | — | (50 | ) | ||||||||||||
Other expense-net | 38 | 14 | 209 | 34 | ||||||||||||||
Total other expense-net | 1,244 | 3,438 | 2,298 | 3,912 | ||||||||||||||
Loss before income taxes, discontinued operations and extraordinary item | (1,431 | ) | (3,303 | ) | (2,171 | ) | (3,141 | ) | ||||||||||
Income tax (benefit) provision | (298 | ) | 3 | (334 | ) | 147 | ||||||||||||
Loss before discontinued operations and extraordinary item | (1,133 | ) | (3,306 | ) | (1,837 | ) | (3,288 | ) | ||||||||||
(Loss) income from discontinued operations (including a loss on disposal of $4 in 2002), net of tax | (3 | ) | — | (3 | ) | 1 | ||||||||||||
Extraordinary item — early retirement of debt, net of tax | — | — | 6 | (65 | ) | |||||||||||||
Net loss | $ | (1,136 | ) | $ | (3,306 | ) | $ | (1,834 | ) | $ | (3,352 | ) | ||||||
Basic loss per share: | ||||||||||||||||||
Loss before discontinued operations and extraordinary item, net of tax | $ | (0.68 | ) | $ | (1.99 | ) | $ | (1.10 | ) | $ | (1.98 | ) | ||||||
(Loss) income from discontinued operations (including a loss on disposal of $4 in 2002), net of tax | — | — | — | — | ||||||||||||||
Extraordinary item — early retirement of debt, net of tax | — | — | — | (0.04 | ) | |||||||||||||
Basic loss per share | $ | (0.68 | ) | $ | (1.99 | ) | $ | (1.10 | ) | $ | (2.02 | ) | ||||||
Basic average shares outstanding | 1,678 | 1,661 | 1,672 | 1,659 | ||||||||||||||
Diluted loss per share: | ||||||||||||||||||
Loss before discontinued operations and extraordinary item | $ | (0.68 | ) | $ | (1.99 | ) | $ | (1.10 | ) | $ | (1.98 | ) | ||||||
(Loss) income from discontinued operations (including a loss on disposal of $4 in 2002), net of tax | — | — | — | — | ||||||||||||||
Extraordinary item — early retirement of debt, net of tax | — | — | — | (0.04 | ) | |||||||||||||
Diluted loss per share | $ | (0.68 | ) | $ | (1.99 | ) | $ | (1.10 | ) | $ | (2.02 | ) | ||||||
Diluted average shares outstanding | 1,678 | 1,661 | 1,672 | 1,659 | ||||||||||||||
Dividends per share | $ | — | $ | 0.05 | $ | — | $ | 0.05 | ||||||||||