CONSOLIDATED STATEMENTS OF OPERATIONS MediaOne Group, Inc. (1)
(UNAUDITED)
Quarter Ended Six Months Ended
June 30, % June 30, %
Dollars in millions 1998 1997 Change 1998 1997 Change
- --------------------- ------- -------------- ------- --------------
SALES AND OTHER REVENUES
Cable & broadband $ 613 $ 589 4.1 $ 1,237 $ 1,145 8.0
Wireless comm. 20 363 (94.5) 361 698 (48.3)
Other 8 29 (72.4) 15 58 (74.1)
-------- -------- -------- --------
Total sales &
other revenues $ 641 $ 981 (34.7)$ 1,613 $ 1,901 (15.1)
OPERATING EXPENSES
Costs of sales &
other revenues 241 326 (26.1) 558 631 (11.6)
Selling, general &
administrative 195 313 (37.7) 502 590 (14.9)
Depreciation 127 158 (19.6) 331 318 4.1
Amortization 131 132 (0.8) 275 266 3.4
-------- -------- -------- --------
Total oper. expenses 694 929 (25.3) 1,666 1,805 (7.7)
-------- -------- -------- --------
Inc.(loss) from oper. (53) 52 - (53) 96 -
Interest expense (143) (166) (13.9) (293) (340) (13.8)
Equity losses in
unconsol. ventures (69) (153) (54.9) (205) (318) (35.5)
Gains on sale of
investments 22 44 (50.0) 39 95 (58.9)
Gain on sale of invest.
in domestic wireless 3,869 - - 3,869 - -
Guaranteed minority
interest expense (20) (22) (9.1) (42) (44) (4.5)
Other income(expense) 110 (7) - 73 (11) -
-------- -------- -------- --------
Inc.(loss) from cont.
oper. before inc. tax
benefit (exp.) 3,716 (252) - 3,388 (522) -
Inc. tax benefit(exp.) (1,542) 71 - (1,436) 151 -
-------- -------- -------- --------
INCOME(LOSS) FROM
CONTINUING OPERATIONS 2,174 (181) - 1,952 (371) -
Income from discont.
oper.-net of tax:
Results of oper.(2) 313 416 (24.8) 747 836 (10.6)
Gain on separation(3)# 24,461 - - 24,461 - -
-------- -------- -------- --------
Income before
extraordinary item 26,948 235 - 27,160 465 -
Extraord. item-net
of tax (333) 3 - (333) 3 -
-------- -------- -------- --------
NET INCOME 26,615 238 - 26,827 468 -
Preferred dividends (13) (12) 8.3 (26) (25) 4.0
Loss on redemption of
preferred securities (53) - - (53) - -
-------- -------- -------- --------
EARNINGS AVAILABLE
FOR COMMON STOCK $ 26,549 $ 226 - $ 26,748 $ 443 -
======== ======== ======== ========
# Offset by dividend of New U S WEST at fair market value.
See footnotes on page ___.
Quarter Ended Six Months Ended
In millions, except June 30, % June 30, %
per share amounts 1998 1997 Change 1998 1997 Change
- --------------------- ------- -------------- ------- --------------
MediaOne Group Stock:
Basic Earnings per Common Share:
Basic average common
shares outstanding 609.1 606.4 0.4 608.7 606.5 0.4
======== ======== ======== ========
Basic earnings (loss)
from continuing
operations * $ 3.46 $ (0.31) - $ 3.08 $ (0.65) -
Income from discontinued
operations 0.12 0.14 (14.3) 0.26 0.27 (3.7)
Gain on separation 40.16 - - 40.19 - -
Extraordinary item-
early extinguishment
of debt (0.55) - - (0.55) - -
-------- -------- -------- --------
Basic earnings (loss)
per common share $ 43.19 $ (0.17) - $ 42.98 $ (0.38) -
======== ======== ======== ========
Diluted Earnings per Common Share:
Diluted average common
shares outstanding 653.6 606.4 7.8 652.6 606.5 7.6
======== ======== ======== ========
Diluted earnings (loss)
from continuing
operations $ 3.24 $ (0.31) - $ 2.91 $ (0.65) -
Income from discontinued
operations 0.11 0.14 (21.4) 0.24 0.27 (11.1)
Gain on separation 37.42 - - 37.48 - -
Extraordinary item-
early extinguishment
of debt (0.51) - - (0.51) - -
-------- -------- -------- --------
Diluted earnings (loss)
per common share # $ 40.27 $(0.17) - $ 40.12 $(0.38) -
======== ======== ======== ========
* Pro forma basic and diluted loss per share adjusted to eliminate
the impact of the operations of domestic wireless, the gain from
disposition of the domestic wireless businesses and the second
quarter 1998 redemption of preferred securities, would be ($0.17)
and ($0.36) for the second quarter 1998 and 1997, respectively.
The pro forma loss per share would be ($0.58) and ($0.74) for
the six months ended June 30, 1998 and 1997, respectively.
# Quarter ended June 30, 1998 amount does not foot due to rounding
of the individual components.
See footnotes on page ___.