1
BELL ATLANTIC CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In millions, except per-share amounts)
Three months ended Year ended
December 31 December 31
------------------ -------------------
1993 1992* 1993 1992*
OPERATING REVENUES
Communications and
Related Services $3,194.5 $3,117.9 $12,534.8 $12,164.6
Financial, Real Estate,
and Other Services 122.7 156.3 455.4 553.8
Total operating revenues 3,317.2 3,274.2 12,990.2 12,718.4
OPERATING EXPENSES
Employee costs, including
benefits and taxes 1,019.0 1,004.3 4,027.6 3,941.5
Depreciation and
amortization 649.8 597.2 2,545.1 2,417.4
Other 1,041.2 1,154.6 3,619.9 3,853.3
Total operating expenses 2,710.0 2,756.1 10,192.6 10,212.2
OPERATING INCOME 607.2 518.1 2,797.6 2,506.2
Other income and
expense, net 29.1 42.3 88.1 214.4
Interest expense, excluding
Financial Services 141.3 162.3 612.1 694.9
Income before provision for income
taxes, extraordinary item, and
cumulative effect of changes in
accounting principles 495.0 398.1 2,273.6 2,025.7
Provision for income taxes 157.8 70.6 792.0 643.5
Income before extraordinary item
and cumulative effect of changes
in accounting principles 337.2 327.5 1,481.6 1,382.2
Extraordinary item -- early
extinguishment of debt,
net of tax (4.1) (10.2) (58.4) (41.6)
Cumulative effect of changes in
accounting principles:
Income taxes -- -- 65.2 --
Postemployment benefits,
net of tax -- -- (85.0) --
Total cumulative effect
of changes in accounting
principles -- -- (19.8) --
NET INCOME $ 333.1 $ 317.3 $1,403.4 $1,340.6
- -------------------------
* Certain operating revenue and operating expense amounts for the three months
and year ended December 31, 1992, have been reclassified to conform to 1993
classifications. These reclassifications had no effect on net income.
2
BELL ATLANTIC CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)--CONTINUED
(In millions, except per-share amounts)
Three months ended Year ended
December 31 December 31
------------------ -------------------
1993 1992 1993 1992
PER COMMON SHARE AMOUNTS
Income before extraordinary item and
cumulative effect of changes in
accounting principles $.77 $.76 $3.39 $3.23
Extraordinary item -- early ex-
tinguishment of debt, net of tax (.01) (.02) (.13) (.10)
Cumulative effect of changes in
accounting principles -- -- (.04) --
NET INCOME $.76 $.74 $3.22 $3.13
DIVIDENDS DECLARED PER
COMMON SHARE $.67 $.65 $2.68 $2.60
WEIGHTED AVERAGE NUMBER OF
COMMON AND EQUIVALENT
SHARES OUTSTANDING 437.5 434.5 436.3 433.0
OTHER SELECTED DATA
- -------------------
December 31
----------------
1993 1992
---- ----
Return on Average Common Equity
Three months ended 16.0% 16.1%
Year ended 17.3% 17.4%
Total Assets (millions) $29,544.2 $28,099.5
Total Employees 73,600 71,400
3
BELL ATLANTIC CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In millions)
Year Ended December 31,
1993 1992*
-------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $1,403.4 $1,340.6
Depreciation and amortization 2,545.1 2,417.4
Extraordinary item -- early extinguishment
of debt, net of tax 58.4 41.6
Cumulative effect of changes in
accounting principles 19.8 --
Other, net 207.3 108.1
NET CASH PROVIDED BY OPERATING
ACTIVITIES 4,234.0 3,907.7
NET CASH USED IN INVESTING
ACTIVITIES (2,936.3) (1,995.8)
NET CASH USED IN FINANCING
ACTIVITIES (1,447.6) (1,747.6)
Increase (Decrease) in Cash and
Cash Equivalents (149.9) 164.3
Cash and Cash Equivalents,
Beginning of Year 296.0 131.7
Cash and Cash Equivalents,
End of Year $146.1 $296.0
* Certain amounts have been reclassified to conform to 1993 classifications.
4
BELL ATLANTIC MOBILE
SELECTED OPERATING STATISTICS (UNAUDITED)
(In thousands, except percentages and revenue per subscriber)
December 31
----------------
1993 1992 Percent Change
---- ---- --------------
Total Owned POPs 35,238 34,200 3.0
Controlled MSA POPs 27,883 27,400 1.8
Controlled RSA POPs(1) 3,706 3,262 13.6
Subscribers in
Controlled Markets 964.9 651.3 48.2
Controlled Penetration(2) 3.05% 2.12% 43.8
Total Subscribers(3) 1,039.1 698.4 48.8
Fourth-Quarter Cellular
Operations Revenue $223,197 $163,500 36.5
Year-to-Date Cellular
Operations Revenue $773,448 $586,124 32.0
Fourth-Quarter Cellular
Operations Revenue per
Subscriber per Month(3) $77 $83 (7.2)
Year-to-Date Cellular
Operations Revenue per
Subscriber per Month(3) $77 $83 (7.2)
Uncollectibles for the quarter ended December 31, 1993, were less than 2
percent of total revenue, and average monthly churn for the quarter was less
than 2 percent of the total customer base (as defined in footnote #3).
- -------------------------
(1) Bell Atlantic Mobile incorrectly reported 3,700 controlled RSA POPs in the
fourth quarter of 1992.
(2) Subscribers in controlled markets (MSA and RSA) as a percent of population
in those markets. Prior to January 1993, Bell Atlantic Mobile reported
penetration as subscribers in controlled markets (MSA and RSA) as a percent of
population in controlled MSA markets only.
(3) Includes customers from reseller operation.