Technology Industry
Industry: Email Alert RSS FeedGTE's Strong Financial Performance Continues with Second Quarter Earnings per Share Growth of 14.5 Percent - Part Two of 2
Cambridge Telcom Report, August 2, 1999
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions, Except Per-Share Amounts)
Unaudited
Second Quarter
-------------------- Percent
CONSOLIDATED OPERATIONS 1999 1998 Change
-------------------------------------------------------------------
Financial data (1)
--------------------
Revenues and sales (2) $ 6,288 $ 5,878 7.0
Operating income $ 1,461 $ 1,276 14.5
Depreciation and amortization 906 901 .6
-------------------------------
Operating cash flow $ 2,367 $ 2,177 8.7
===============================
Operating cash flow margin 37.6 % 37.0 % -
Capital expenditures $ 1,197 $ 1,388 (13.8)
Operating statistics (3)
------------------------
Per share data:
Dividends .47 .47 -
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions, Except Per-Share Amounts)
Unaudited
Six Months Ended June 30,
-----------------------------------
Percent
CONSOLIDATED OPERATIONS 1999 1998 Change
------------------------------------------------------------------
Financial data (1)
---------------------
Revenues and sales (2) $12,167 $11,344 7.3
Operating income $ 2,822 $ 2,490 13.3
Depreciation and amortization 1,826 1,806 1.1
-----------------------------
Operating cash flow $ 4,648 $ 4,296 8.2
=============================
Operating cash flow margin 38.2 % 37.9 % -
Capital expenditures $ 2,132 $ 2,409 (11.5)
Operating statistics (3)
--------------------------
Return on equity (4) 38.4 % 25.4 % -
Return on investment (4) 15.3 % 10.1 % -
Debt ratio 62.1 % 65.8 % -
Per share data:
Book value $ 10.31 $ 8.12 27.0
Dividends .94 .94 -
Common shares outstanding at
end of period (thousands) 976,286 963,242 1.4
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions)
Unaudited
Second Quarter
-------------- Percent
NATIONAL OPERATIONS 1999 1998 Change
------------------------------------------------------------------
Network Services (5)
Financial data
---------------
Revenues and sales
Local services $ 1,474 $ 1,460 1.0
Network access services
Interstate 895 840 6.5
Intrastate 507 488 3.9
Toll services 161 220 (26.8)
Directory services and other 859 798 7.6
-----------------------------
Total revenues 3,896 3,806 2.4
Intersegment revenues (107) (78) -
-----------------------------
Total external revenues $ 3,789 $ 3,728 1.6
=============================
Operating income $ 1,408 $ 1,223 15.1
Depreciation and amortization 630 661 (4.7)
-----------------------------
Operating cash flow $ 2,038 $ 1,884 8.2
=============================
Operating cash flow margin 52.3 % 49.5 % -
Operating income margin 36.1 % 32.1 % -
Capital expenditures $ 726 $ 878 (17.3)
Data revenues (included above) 289 228 26.8
Operating statistics
-----------------------
Access minutes of use (millions):
Interstate 13,710 12,837 6.8
Intrastate 9,541 8,703 9.6
-----------------------------
Total access minutes of use 23,251 21,540 7.9
=============================
Toll minutes - intraLATA (millions) 1,290 1,558 (17.2)
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions)
Unaudited
Six Months Ended
June 30,
-------------------- Percent
NATIONAL OPERATIONS 1999 1998 Change
------------------------------------------------------------------
Network Services (5)
Financial data
---------------
Revenues and sales
Local services $ 2,941 $ 2,883 2.0
Network access services
Interstate 1,746 1,654 5.6
Intrastate 989 967 2.3
Toll services 339 459 (26.1)
Directory services and other 1,564 1,442 8.5
----------------------------
Total revenues 7,579 7,405 2.3
Intersegment revenues (198) (122) -
----------------------------
Total external revenues $ 7,381 $ 7,283 1.3
============================
Operating income $ 2,555 $ 2,266 12.8
Special charges 113 171 -
Depreciation and amortization 1,276 1,320 (3.3)
----------------------------
Operating cash flow $ 3,944 $ 3,757 5.0
============================
Operating cash flow margin 52.0 % 50.7 % -
Operating income margin 35.2 % 32.9 % -
Capital expenditures $ 1,378 $ 1,603 (14.0)
Data revenues (included above) 559 425 31.5
Operating statistics
---------------------
Access minutes of use (millions):
Interstate 27,707 25,705 7.8
Intrastate 18,969 17,273 9.8
---------------------------
Total access minutes of use 46,676 42,978 8.6
===========================
Toll minutes - intraLATA (millions) 2,624 3,265 (19.6)
Access lines (thousands):
Switched
Residential 13,800 13,335 3.5
---------------------------
Total switched 19,684 18,773 4.9
Special (6) 5,116 3,793 34.9
---------------------------
Total access lines 24,800 22,566 9.9
===========================
Resale lines (7) 247 83 -
ISDN lines: (8)
Basic rate 171 143 19.6
Primary rate 224 135 65.9
---------------------------
Total ISDN lines 395 278 42.1
===========================
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions, Except Operating Statistics)
Unaudited
Second Quarter
----------------- Percent
NATIONAL OPERATIONS (continued) 1999 1998 Change
------------------------------------------------------------------
Wireless Products and Services (5)
Financial data
--------------
Revenues and sales
Service revenues $ 763 $ 671 13.7
Equipment sales and other 107 98 9.2
-----------------------------
Total revenues (9) $ 870 $ 769 13.1
=============================
Operating income $ 184 $ 173 6.4
Depreciation and amortization 114 109 4.6
-----------------------------
Operating cash flow $ 298 $ 282 5.7
=============================
Operating cash flow margin 38.9 % 39.3 % -
Capital expenditures $ 104 $ 87 19.5
Operating statistics
---------------------
Average revenue per user
per month (10) $ 48 $ 49 (2.0)
Cash operating expense per
customer per month (10) 25 30 (16.7)
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions, Except Operating Statistics)
Unaudited
Six Months Ended
June 30,
------------------- Percent
NATIONAL OPERATIONS (continued) 1999 1998 Change
------------------------------------------------------------------
Wireless Products and Services (5)
Financial data
---------------
Revenues and sales
Service revenues $ 1,477 $ 1,321 11.8
Equipment sales and other 209 190 10.0
--------------------------------
Total revenues (9) $ 1,686 $ 1,511 11.6
================================
Operating income $ 320 $ 262 22.1
Special charges 24 91 -
Depreciation and amortization 228 217 5.1
--------------------------------
Operating cash flow $ 572 $ 570 .4
================================
Operating cash flow margin 39.0 % 40.8 % -
Capital expenditures $ 168 $ 142 18.3
Operating statistics
---------------------
Average revenue per user
per month (10) $ 47 $ 48 (2.1)
Cash operating expense per
customer per month (10) 26 29 (10.3)
Wireless subscribers (thousands) 5,027 4,631 8.6
Adjusted POPs (millions) (11) 61.9 61.9 -
End of period penetration (10) (12) 10.0 % 9.3 % -
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions)
Unaudited
Second Quarter
------------------ Percent
NATIONAL OPERATIONS (continued) 1999 1998 Change
------------------------------------------------------------------
Data Products and Services (13)
Financial data
---------------
Revenues and sales $ 227 $ 140 62.1
Intersegment revenues (18) (11) -
-------------------------------
Total external revenues $ 209 $ 129 62.0
===============================
Operating loss $ (132) $ (148) 10.8
Depreciation and amortization 44 24 83.3
-------------------------------
Operating cash flow $ (88) $ (124) 29.0
===============================
Capital expenditures $ 180 $ 170 5.9
Other National Operations (13)
Revenues and sales
Communications $ 350 $ 246 42.3
Technology and Systems 380 353 7.6
Other, including eliminations (14) 159 205 (22.4)
------------------------------
Total revenues $ 889 $ 804 10.6
==============================
Total National Revenues $ 5,882 $ 5,519 6.6
Total National Operating Income $ 1,354 $ 1,229 10.2
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions)
Unaudited
Six Months Ended
June 30,
------------------ Percent
NATIONAL OPERATIONS (continued) 1999 1998 Change
------------------------------------------------------------------
Data Products and Services (13)
Financial data
---------------
Revenues and sales $ 450 $ 263 71.1
Intersegment revenues (38) (17) -
-------------------------------
Total external revenues $ 412 $ 246 67.5
===============================
Operating loss $ (253) $ (279) 9.3
Depreciation and amortization 85 55 54.5
-------------------------------
Operating cash flow $ (168) $ (224) 25.0
===============================
Capital expenditures $ 273 $ 232 17.7
Operating statistics (thousands)
--------------------------------
Internet billable subscribers 517 311 66.2
Other National Operations (13)
Revenues and sales
Communications $ 691 $ 461 49.9
Technology and Systems 732 692 5.8
Other, including eliminations (14) 252 352 (28.4)
------------------------------
Total revenues $ 1,675 $ 1,505 11.3
===============================
Total National Revenues $11,390 $10,684 6.6
Total National Operating Income (15)$ 2,542 $ 2,390 6.4
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions)
Unaudited
Second Quarter 1999
---------------------------------
INTERNATIONAL OPERATIONS Reported Adjustments Adjusted
------------------------------------------------------------------
Financial data
--------------
Revenues and sales
Local services $ 88 $ - $ 88
Toll services 69 - 69
Wireless services 137 - 137
Directory services and other 152 - 152
---------------------------------
Total revenues $ 446 $ - $ 446
=================================
Operating income $ 101 $ - $ 101
Depreciation and amortization 58 - 58
---------------------------------
Operating cash flow $ 159 $ - $ 159
=================================
Operating cash flow margin 35.7% - 35.7%
Equity income $ 70 $ - $ 70
Net income 122 - 122
Capital expenditures 91 - 91
Proportionate revenues (16) 947 - 947
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions)
Unaudited
Second Quarter 1998
-----------------------------------------
INTERNATIONAL OPERATIONS Reported Adjustments Adjusted
------------------------------------------------------------------
Financial data
----------------
Revenues and sales
Local services $ 313 $ (235) (17) $ 78
Toll services 229 (148) (17) 81
Wireless services 74 62 (17) 136
Directory services
and other 177 (78) (17) 99
---------------------------------------
Total revenues $ 793 $ (399) $ 394
=======================================
Operating income $ 222 $ (156) (17) $ 66
Depreciation and
amortization 97 (42) (17) 55
---------------------------------------
Operating cash flow $ 319 $ (198) $ 121
=======================================
Operating cash flow
margin 40.2% - 30.7%
Equity income $ 30 $ 45 (17) $ 75
Net income 109 - 109
Capital expenditures 206 (81) (17) 125
Proportionate revenues (16) 729 - 729
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions)
Unaudited
Second Quarter Adjusted
------------------------- Adjusted
INTERNATIONAL OPERATIONS 1999 1998 % Change
------------------------------------------------------------------
Financial data
----------------
Revenues and sales
Local services $ 88 $ 78 12.8
Toll services 69 81 (14.8)
Wireless services 137 136 .7
Directory services
and other 152 99 53.5
---------------------------------------
Total revenues $ 446 $ 394 13.2
=======================================
Operating income $ 101 $ 66 53.0
Depreciation and
amortization 58 55 5.5
---------------------------------------
Operating cash flow $ 159 $ 121 31.4
=======================================
Operating cash flow
margin 35.7 % 30.7 % -
Equity income $ 70 $ 75 (6.7)
Net income 122 109 11.9
Capital expenditures 91 125 (27.2)
Proportionate revenues (16) 947 729 29.9
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions)
Unaudited
Six Months Ended June 30, 1999
----------------------------------------
INTERNATIONAL OPERATIONS
(continued) Reported Adjustments Adjusted
------------------------------------------------------------------
Financial data
----------------
Revenues and sales
Local services $ 168 $ - $ 168
Toll services 141 - 141
Wireless services 288 - 288
Directory services
and other 253 - 253
----------------------------------------
Total revenues $ 850 $ - $ 850
========================================
Operating income $ 687 $ (513) (18) $ 174
Special items (513) 513 (18) -
Depreciation and
amortization 120 - 120
----------------------------------------
Operating cash flow $ 294 $ - $ 294
========================================
Operating cash flow margin 34.6% - 34.6%
Equity income $ 152 $ - $ 152
Net income 563 (308) (18) 255
Capital expenditures 153 - 153
Proportionate revenues (16) 1,765 - 1,765
Operating statistics (thousands) (19)
---------------------------------------
June 30,
--------------------------- Percent
1999 1998 Change
---------------------------------------
Access lines at 100%:
Consolidated subsidiaries 1,007 981 2.7
Unconsolidated subsidiaries 8,218 5,251 56.5
---------------------------------------
Total 9,225 6,232 48.0
=======================================
Proportionate access lines: (16)
Consolidated subsidiaries 857 834 2.8
Unconsolidated subsidiaries 2,356 1,977 19.2
----------------------------------------
Total 3,213 2,811 14.3
========================================
Wireless customers at 100%:
Consolidated subsidiaries 923 604 52.8
Unconsolidated subsidiaries 3,544 1,573 125.3
----------------------------------------
Total 4,467 2,177 105.2
========================================
Proportionate wireless customers: (16)
Consolidated subsidiaries 607 310 95.8
Unconsolidated subsidiaries 791 428 84.8
----------------------------------------
Total 1,398 738 89.4
========================================
Adjusted POPs (millions): (20)
Consolidated subsidiaries 24.3 14.5 67.6
Unconsolidated subsidiaries 10.4 8.3 25.3
----------------------------------------
Total 34.7 22.8 52.2
========================================
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions)
Unaudited
Six Months Ended June 30, 1998
-------------------------------------------
INTERNATIONAL OPERATIONS
(continued) Reported Adjustments Adjusted
------------------------------------------------------------------
Financial data
----------------
Revenues and sales
Local services $ 620 $ (473) (17) $ 147
Toll services 469 (310) (17) 159
Wireless services 143 121 (17) 264
Directory services
and other 328 (156) (17) 172
------------------------------------------
Total revenues $ 1,560 $ (818) $ 742
==========================================
Operating income $ 363 $ (251) (17)(21) $ 112
Special items 38 (38) (21) -
Depreciation
and amortization 219 (106) (17) 113
------------------------------------------
Operating cash flow $ 620 $ (395) $ 225
==========================================
Operating cash flow
margin 39.7% - 30.3%
Equity income $ 45 $ 81 (17) $ 126
Net income (loss) (144) 338 (21)(22) 194
Capital expenditures 324 (139) (17) 185
Proportionate revenues (16) 1,387 - 1,387
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions)
Unaudited
Adjusted
Six Months Ended June 30,
-----------------------------
INTERNATIONAL OPERATIONS Adjusted
(continued) 1999 1998 % Change
------------------------------------------------------------------
Financial data
----------------
Revenues and sales
Local services $ 168 $ 147 14.3
Toll services 141 159 (11.3)
Wireless services 288 264 9.1
Directory services
and other 253 172 47.1
-----------------------------------------
Total revenues $ 850 $ 742 14.6
=========================================
Operating income $ 174 $ 112 55.4
Special items - - -
Depreciation and
amortization 120 113 6.2
-----------------------------------------
Operating cash flow $ 294 $ 225 30.7
=========================================
Operating cash flow
margin 34.6 % 30.3 % -
Equity income $ 152 $ 126 20.6
Net income 255 194 31.4
Capital expenditures 153 185 (17.3)
Proportionate revenues (16) 1,765 1,387 27.3
GTE CORPORATION AND SUBSIDIARIES
NOTES TO SELECTED FINANCIAL DATA AND OPERATING STATISTICS
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