24 EXHIBIT 99C.1 CONSOLIDATED STATEMENTS OF U S WEST, Inc. OPERATIONS (UNAUDITED) Quarter Ended March 31, % In millions 1996 1995 Change - - --------------------------------------------------------- ---------- SALES & OTHER REVENUES $3,050 $2,828 7.9 OPERATING EXPENSES Employee-related expenses 1,043 978 6.6 Other operating expenses 591 510 15.9 Taxes other than income taxes 107 114 (6.1) Depreciation and amortization 584 560 4.3 -------------------- Total operating expenses 2,325 2,162 7.5 -------------------- Income from operations 725 666 8.9 Interest expense 135 128 5.5 Equity losses in unconsolidated ventures 66 57 15.8 Gain on sales of rural telephone exchanges - 63 - Guaranteed minority interest expense 12 - - Other expense - net 23 6 - -------------------- Income before income taxes and cumulative effect of change in accounting principle 489 538 (9.1) Provision for income taxes 192 208 (7.7) -------------------- Income before cumulative effect of change in accounting principle 297 330 (10.0) Cumulative effect of change in accounting principle - net of tax 34 - - -------------------- NET INCOME 331 330 0.3 Preferred dividends 1 - - -------------------- EARNINGS AVAILABLE FOR COMMON STOCK $330 $330 - ==================== 25 EXHIBIT 99C.1 (continued) CONSOLIDATED STATEMENTS OF U S WEST, Inc. OPERATIONS (UNAUDITED) Quarter Ended In millions, except March 31, % per share amounts 1996 1995 Change - - --------------------------------------------------------- ---------- COMMUNICATIONS GROUP: Average common shares outstanding (#1) 475.1 468.6 1.4 ==================== Earnings per common share: (#1)<F1> Income before cumulative effect of change in accounting principle $0.62 $0.67 (7.5) Cumulative effect of change in accounting principle 0.07 - - -------------------- Earnings per common share $0.69 $0.67 3.0 ==================== MEDIA GROUP: Average common shares outstanding (#1) 473.0 468.6 0.9 ==================== Earnings per common share $ - $0.03 - ==================== U S WEST, Inc. Average common shares outstanding (#1)<F1> - 468.6 - ==================== Earnings per common share $ - $0.70 - ==================== <FN> <F1> #1: Effective November 1, 1995, each share of U S WEST, Inc. common stock was converted into one share each of U S WEST Communications Group common stock and U S WEST Media Group common stock. Earnings per common share for 1995 have been presented on a pro forma basis to reflect the two classes of stock as if they were outstanding since January 1, 1995. For periods prior to the recapitalization, the average common shares outstanding used in the earnings per average common share for the two classes of stock are assumed to be equal to the average common shares outstanding for U S WEST, Inc. </FN> 26 EXHIBIT 99C.1 (continued) CONSOLIDATED STATEMENTS OF U S WEST, Inc. OPERATIONS (UNAUDITED) Quarter Ended March 31, % In millions 1996 1995 Change - - --------------------------------------------------------- ---------- SELECTED CONSOLIDATED DATA U S WEST, Inc. Capital expenditures $803 $621 29.3 Debt-to-capital ratio (#1)<F2> 50.2% 50.7%#<F1> - Employees 61,268 61,302 (0.1) EBITDA $1,309 $1,226 6.8 EBITDA margin 42.9% 43.4% - <FN> <F1> # As of December 31, 1995. <F2> #1 Ratio includes preferred securities as a component of total capital. Including debt related to the net investment in assets held for sale, the 1996 and 1995 ratios are 52.3% and 52.9%, respectively. </FN>