BellSouth Key Financial Measures |
(amounts in millions, except per share data) |
Selected Financial and Operating Data |
4Q06 | 4Q05 | Growth | 3Q06 | Growth |
Consolidated | |||||||||||
Total Operating Revenues | $ 9,058 | $ 8,656 | 4 | .6% | $ 8,954 | 1 | .2% | ||||
Total Operating Expenses (excluding depreciation and amortization) | $ 5,472 | $ 5,505 | -0 | .6% | $ 5,367 | 2 | .0% | ||||
Operating Income | $ 2,225 | $ 1,792 | 24 | .2% | $ 2,210 | 0 | .7% | ||||
Operating Margin | 24.6% | 20.7% | 390 | bps | 24.7% | -10 | bps | ||||
Interest Expense | $ 374 | $ 377 | -0 | .8% | $ 405 | -7 | .7% | ||||
Other Income (Expense), net | $ 53 | $ 48 | 10 | .4% | $ 57 | -7 | .0% | ||||
Net Income | $ 1,248 | $ 965 | 29 | .3% | $ 1,180 | 5 | .8% | ||||
Adjusted Earnings Per Share | $ 0.68 | $ 0.53 | 28 | .3% | $ 0.65 | 4 | .6% | ||||
Diluted Weighted Average Common Shares Outstanding | 1,832 | 1,818 | 0 | .8% | 1,822 | 0 | .5% | ||||
Capital expenditures excluding Hurricane Katrina | $ 763 | $ 803 | -5 | .0% | $ 730 | 4 | .5% | ||||
Total Employees | 59,298 | 63,066 | -6 | .0% | 59,745 | -0 | .7% | ||||
Operating Free Cash Flow (net cash provided by operating activities | |||||||||||
less capital expenditures | $ 1,202 | ($ 218 | ) | * | $ 976 | 23 | .2% | ||||
Advertising and Publishing Group | |||||||||||
Total Operating Revenues | $ 576 | $ 529 | 8 | .9% | $ 537 | 7 | .3% | ||||
Total Operating Expenses (excluding depreciation and amortization) | $ 290 | $ 277 | 4 | .7% | $ 284 | 2 | .1% | ||||
Segment Operating Income | $ 278 | $ 245 | 13 | .5% | $ 245 | 13 | .5% | ||||
Segment Operating Margin | 48.3% | 46.3% | 200 | bps | 45.6% | 270 | bps | ||||
* | -Not meaningful. |
4Q06 | 4Q05 | Growth | 3Q06 | Growth |
Communications Group | |||||||||||
Total Operating Revenues | $ 4,682 | $ 4,681 | 0 | .0% | $ 4,696 | -0 | .3% | ||||
Total Operating Expenses (excluding | |||||||||||
depreciation and amortization) | $ 2,600 | $ 2,755 | -5 | .6% | $ 2,605 | -0 | .2% | ||||
Segment Operating Income | $ 1,201 | $ 1,027 | 16 | .9% | $ 1,205 | -0 | .3% | ||||
Segment Operating Margin | 25.7% | 21.9% | 380 | bps | 25.7% | 0 | bps | ||||
Communications Group Revenue Detail | |||||||||||
Voice | $ 3,038 | $ 3,131 | -3 | .0% | $ 3,058 | -0 | .7% | ||||
Data | $ 1,324 | $ 1,252 | 5 | .8% | $ 1,315 | 0 | .7% | ||||
Other | $ 320 | $ 298 | 7 | .4% | $ 323 | -0 | .9% | ||||
Consumer ARPU | $ 62.86 | $ 60.53 | 3 | .8% | $ 63.26 | -0 | .6% | ||||
DSL | |||||||||||
Revenue | $ 412 | $ 353 | 16 | .7% | $ 405 | 1 | .7% | ||||
�� Subscribers | 3,632 | 2,882 | 26 | .0% | 3,449 | 5 | .3% | ||||
Net Adds | 183 | 204 | -10 | .3% | 176 | 4 | .0% | ||||
BellSouth Long Distance | |||||||||||
Revenue | $ 681 | $ 630 | 8 | .1% | $ 662 | 2 | .9% | ||||
Subscribers | 7,682 | 7,179 | 7 | .0% | 7,596 | 1 | .1% | ||||
Net Adds | 86 | 186 | -53 | .8% | 118 | -27 | .1% | ||||
Access Minutes of Use (MOUs) | |||||||||||
Switched Access MOUs | 15,258 | 15,310 | -0 | .3% | 14,810 | 3 | .0% | ||||
BSLD MOUs | 6,383 | 6,539 | -2 | .4% | 6,703 | -4 | .8% | ||||
Total Access MOUs | 21,641 | 21,849 | -1 | .0% | 21,513 | 0 | .6% | ||||
BellSouth Corporation |
Items Excluded From Adjusted Results - EPS Impacts |
4Q06 | 4Q05 | 3Q06 |
Wireless Merger Integration Costs | $ 0 | .03 | $ 0 | .04 | $ 0 | .02 | |
Wireless Merger Intangible Amortization | $ 0 | .04 | $ 0 | .05 | $ 0 | .04 | |
AT&T Merger Costs | $ 0 | .05 | $ | - | $ 0 | .01 | |
Hurricane Katrina-related Expenses | $ | - | $ 0 | .08 | $ | - | |
Severance | $ | - | $ 0 | .03 | $ | - | |
Deferred Revenue Adjustment | $ - | $ (0 | .02) | $ | - | ||
Wireless Merger Integration Costs - Represents BellSouth’s 40% share of Cingular's merger integration costs incurred in connection with the Cingular/AT&T Wireless merger and AT&T/BellSouth merger. Integration costs include one-time cash outlays or specified non-cash charges, including accelerated depreciation, directly related to rationalization of the wireless network, sales distribution channels, the workforce, information technology systems and real estate.
Wireless Merger Intangible Amortization- Represents BellSouth's 40 percent share of the non-cash amortization of intangibles, primarily customer lists, that were created in Cingular's acquisition of AT&T Wireless.
AT&T Merger Costs - Represents specific deal-related costs directly associated with the merger with AT&T. Costs include legal and regulatory fees, costs of filing and printing the joint proxy statement, expense associated with employee retention awards, bankers' fees and directors' and officers' insurance.
Hurricane Katrina-related Expenses- Represents incremental labor and material costs primarily related to service restoration and network repairs in BellSouth's wireline business. The expenses include BellSouth's 40% share of Cingular Wireless' hurricane expenses.
Severance - Represents the net severance-related costs recorded in the 4th quarter of 2005 associated with management workforce reductions.
Deferred Revenue Adjustment - Represents the fourth quarter 2005 recognition of previously deferred revenue in the Communications Group segment. The adjustment relates to a system coding error that resulted in underreporting revenues in prior periods. The amount accumulated over multiple years and did not affect any one year by more than $9.