1st Quarter Results
GTE Corporation
28 April 2000
April 27, 2000
GTE Delivers Strong First Quarter
Revenue Growth of 10 Percent and EPS Growth of 11 Percent
IRVING, Texas -- GTE Corporation announced first quarter 2000
results with net income of $796 million and earnings per share
(EPS) of 82 cents, an increase of 11 percent over the year-ago
quarter, excluding special and extraordinary items that
favorably affected both periods. Consolidated revenue increased
10 percent to $6.1 billion from adjusted revenue of $5.6 billion
in the first quarter of 1999.
'GTE continued to produce strong results in the first quarter,
even as we took steps to increase our long-term growth potential,'
said GTE Chairman and CEO Charles R. Lee. 'Our core operations
continue to produce solid results, allowing us to invest in higher-
growth opportunities. As a result we experienced significant
growth in our data, wireless and long-distance businesses as well
as in bundled offerings.
'The last three months also included important milestones related
to our upcoming merger with Bell Atlantic, which we are targeting
for later this quarter. In March, Verizon Wireless was launched,
combining the wireless assets and capabilities of Bell Atlantic
Mobile, AirTouch Cellular, PrimeCo Personal Communications and
AirTouch Paging. After our merger with Bell Atlantic, we will add
GTE's cellular and PCS properties, completing the creation of the
premier wireless company in the U.S.
'Other recent actions include our selection of Verizon as the new
name for the combined GTE-Bell Atlantic, contingent on FCC
approval of our merger, and renaming GTE Internetworking 'Genuity'
as that business moves forward with its initial public offering.
'The overall objective of our combined companies is to have the
industry's most complete and advanced portfolio of assets, capable
of satisfying the needs of communications customers on a global
basis while being poised to become the premier company taking
advantage of growth opportunities in this very dynamic market,'
Lee said.
Including special and extraordinary items, reported EPS was 83
cents in the quarter compared to 90 cents in the same quarter
last year. This year's first quarter includes: an after-tax net
gain of $20 million, or 2 cents per share, comprised of the gain
on the sale of CyberTrust, a small unit specializing in network
security, partially offset by the write-down of certain impaired
assets; and an after-tax extraordinary charge of $9 million, or
1 cent per share, for the retirement of debt prior to stated
maturity for the Network Services access lines that will be
sold. The first quarter of 1999 included special and
extraordinary items that generated a net increase in EPS of 16
cents per share. These items included an after-tax gain of $308
million, or 31 cents per share, associated with the merger of BC
TELECOM and TELUS; an after-tax special charge of $119 million,
or 12 cents per share, for employee separation programs
completed in April 1999; and an after-tax extraordinary charge
of $30 million, or 3 cents per share, for the retirement of debt
prior to stated maturity.
Consolidated Results
GTE's consolidated revenue in the first quarter grew $544 million,
or 10 percent, over revenue in the first quarter of 1999, adjusted
for the 1999 sale of Government Systems. Major contributors to
this revenue growth include:
- 30 percent, or $253 million, growth in domestic wireless
revenue, which includes the newly acquired wireless
properties;
- 53 percent, or $87 million, growth in data services revenue
from Genuity, formerly GTE Internetworking;
- 28 percent, or $84 million, growth in Network Services data
revenue, including special access data lines, ISDN and DSL;
- 32 percent, or $59 million, growth in long-distance revenue;
- 246 percent, or $51 million, growth in CLEC bundled offerings;
- 79 percent revenue growth in SuperPages.com, GTE's internet
directories business;
- Continued customer growth, including:
Total as of Increase Percent
3/31/00 over Increase
last 12
months
Global access 29,927,000 2,574,000 9 %
lines*
Global 9,471,000 3,364,000 55 %
wireless
customers*
Long distance 3,508,000 663,000 23 %
CLEC bundles 365,000 257,000 238 %
DSL 88,000 76,000 633 %
SuperPages.com 52,000 20,000 63 %
* Represents domestic totals plus international proportionate
access lines and wireless customers. All other statistics
U.S. only.
In the quarter, consolidated adjusted operating income was $1.5
billion, an increase of $207 million, or 15 percent, over the same
quarter last year. This increase resulted from revenue growth and
favorable pension settlements, partially offset by losses from
GTE's continuing investments in its data and CLEC initiatives.
Network Services
Revenue in the first quarter was $3.8 billion, an increase of $114
million, or 3 percent, from the same quarter last year. The
increase was due to growth in access lines, minutes of use, data
and vertical services, partially offset by mandated price
reductions and intraLATA toll erosion. Over the past year, total
access lines grew 11 percent, driven by special access line growth
of 37 percent and business switched access line growth of 7
percent. The strong growth in access lines reflects the
continuing strong economic health of the company's wireline
markets. Access minutes of use increased 5 percent compared to
the same quarter last year.
Data revenue in the first quarter of $389 million increased $84
million, or 28 percent, from the first quarter last year. Data
revenue includes special access data lines, frame relay, CyberPOP
and DSL.
At the end of the first quarter, the company had obtained 88,000
DSL subscribers through an aggressive marketing campaign and a
competitively priced offering. To meet the growing demand for this
popular service, the company began shipping modems and self-
installation kits directly to customers. In addition to providing
customers with quick installation and access to the Internet, this
offering saves the expense of sending a technician to the
customer's premise. DSL is currently available from 650 central
offices, representing approximately 7 million qualified lines, or
approximately 33 percent of the company's total switched access
lines.
Network Services data revenue does not include data revenue from
Genuity and other unrelated business units. Combined data
revenues from all business units grew 32 percent from the year-ago
quarter to $711 million, providing annualized data revenue of $2.8
billion.
Through successful promotions, consumer vertical service units
increased 4.6 million, generating additional revenue of $18
million, or 12 percent, from the same quarter last year. In
April, Network Services introduced a new sales initiative known as
the 'Big Deal' that offers customers package-discounts when they
combine local and vertical services. Customers can include long-
distance, voice mail and dial-up Internet access in their package
to receive additional discounts.
Offsetting the revenue increases were mandated federal and state
price reductions of $53 million in the quarter and $278 million
over the past 12 months. Although toll revenue has decreased from
intraLATA toll competition, the decline is lessening. Within the
local market, approximately 480,000 of the company's 26.7 million
domestic access lines have been lost to resale. However, losses
to GTE amount to less than 1 percent of the total lines, since
most of these were resold through GTE's CLEC.
Network Services operating income in the first quarter was $1.4
billion, an increase of $168 million, or 14 percent, from the same
quarter last year. This improvement was principally due to revenue
growth, the impact of workforce reductions taken in 1999 and
favorable pension settlements, partially offset by rapid growth in
access lines, DSL and other cost of service increases.
Wireless
Domestic wireless revenue in the first quarter was $1.1 billion, an
increase of $253 million, or 30 percent, from the same quarter last
year, including the benefit of the acquisition of wireless properties
from Ameritech in the fourth quarter of 1999. Subscribers grew 52
percent, including the newly acquired properties. Excluding these
new properties, subscriber growth of 16 percent was achieved from an
increase in prepaid customers and favorable customer response to the
GTE CHOICE pricing plans, which were introduced a year ago. The GTE
CHOICE plans, which offer bundled minute pricing with expanded
roaming options, have positioned the company in anticipation of
becoming part of the Verizon Wireless venture with Bell Atlantic and
Vodafone AirTouch.
Continuing productivity and process improvements have decreased
monthly cash operating expense per customer to $22, a 19 percent
reduction from the first quarter of 1999. Although revenue growth
and cash operating expense show significant improvement, the GTE
CHOICE pricing plans have increased roaming expenses. As a result,
operating cash flow margin decreased to 34 percent in the first
quarter from 39 percent in the year-ago quarter. GTE expects roaming
costs for its customers to decline due to the recent re-negotiation
of roaming agreements and the distribution of approximately 220,000
next-generation handsets that permit remote roaming partner
selection.
Genuity (formerly GTE Internetworking)
Genuity revenues of $250 million in the first quarter increased $87
million, or 53 percent, from the first quarter of 1999. Revenue from
access services, which include domestic dial-up, dedicated and
broadband access, increased 43 percent over the first quarter of last
year and contributed approximately two-thirds of the revenue growth.
The increase in revenues reflects an 80 percent growth in activated
modems and a 24 percent increase in dedicated customer connections.
In February 2000, Genuity and America Online (AOL) announced that
they had reached a multi-year agreement to extend Genuity's existing
role in providing dial-up and broadband backbone Internet services to
AOL in the United States. In addition, Genuity will operate and
continue the build-out of a portion of AOL's dial-up network in
Japan.
Web hosting revenues increased $12 million, or 117 percent, from
the same quarter last year, driven by an increase in Web hosting
customers. Also contributing to this growth was a 45 percent
increase in transport services and revenues from value-added e-
business services, such as Site Patrol (a managed security
offering), Virtual Private Network, Voice-over-IP and
international connectivity, which more than doubled from the same
quarter last year.
Operating losses from Genuity increased to $197 million in the
first quarter due to continued network capacity expenditures,
higher depreciation expense and selling and distribution expenses.
Communications Corporation
GTE Communications, which includes long-distance, CLEC and large
business accounts, generated revenue in the first quarter of $429
million, an increase of $88 million, or 26 percent, from the same
quarter last year. This revenue growth was driven in part by a 23
percent increase in the number of long-distance customers over the
past 12 months, ending the quarter with 3.5 million customers.
GTE's CLEC, which is the largest residential CLEC in the nation,
grew its customer base 238 percent over the past 12 months to
365,000 customers at the end of the first quarter.
International
International proportionate revenues grew to nearly $1 billion in
the quarter, an increase of $161 million, or 20 percent, from the
same quarter last year. GTE's operations in Puerto Rico, Canada,
the Dominican Republic and Taiwan contributed to this increase.
Proportionate wireless customers increased 69 percent from last
year due to the rapid growth of the Taiwan wireless market and
strong demand for prepaid wireless services in Latin America.
Net income from international operations in the first quarter was
$131 million, consistent with net income in the same quarter last
year. Higher income from GTE's investment in Puerto Rico and
improved results from operations in the Dominican Republic were
offset by start-up costs for the Buenos Aires PCS wireless network
and lower results at operations in South America.
On March 31, TELUS announced its plan to acquire 70 percent of
QuebecTel. GTE currently owns approximately 27 percent of TELUS
and 51 percent of QuebecTel. Under the proposed transaction,
TELUS would acquire 49 percent of QuebecTel from the public
minority shareholders and 21 percent from GTE. Following the
transaction, TELUS and GTE would own 70 percent and 30 percent of
QuebecTel, respectively.
About GTE
With 1999 revenues of more than $25 billion, GTE is a leading
telecommunications provider with one of the industry's broadest
arrays of products and services. In the United States, GTE
provides local service in 28 states and wireless service in 18
states, as well as nationwide long-distance, directory, and
internetworking services ranging from dial-up
Internet access for residential and small-business consumers to
Web-based applications for Fortune 500 companies. Outside the
United States, the company serves customers on five continents.
Additional information about GTE can be obtained at
http://www.gte.com.
GTE's community and philanthropic programs target excellence in
education, particularly math, science, technology and literacy.
GTE also supports job training, delivery of health and human
services, and the arts. The company's newest program is GTE
Reads, a public charity designed to create public awareness,
increase fundraising and support organizations dedicated to
improving America's literacy levels. GTE customers can contribute
to GTE Reads by checking off a box on their bill. Others can
contribute through GTE
SuperPages.com (http://www.superpages.com).
Note: All references above to earnings per share (EPS) reflect
diluted earnings per share.
A copy of this release and associated tables can be found on the
Internet at www.gte.com
Forward-Looking Statements
This announcement contains forward-looking statements. For each
of these statements, GTE claims the protection of the safe harbor
for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. If future events and actual
performance differ materially from GTE's assumptions, actual
results could vary significantly from the performance projected in
these forward-looking statements.
The following important factors could affect future results and
could cause those results to differ materially from those
expressed in this announcement: materially adverse changes in
economic conditions in the markets served by us or by companies in
which we have substantial investments; material changes in
available technology; the final outcome of federal, state, and
local regulatory initiatives and proceedings, including
arbitration proceedings, and judicial review of those initiatives
and proceedings, pertaining to, among other matters, the terms of
interconnection, access charges, universal service, and unbundled
network element and resale rates; the extent, timing, success, and
overall effects of competition from others in the local telephone
and toll service markets; the success of our efforts to expand
service capability in the data communication, long-distance and
enhanced services segments of the telecommunications marketplace
and to provide a bundle of products and services both in and
outside of its traditional service territories; the timing of, and
regulatory or other conditions associated with, the completion of
our merger with Bell Atlantic and our ability to combine
operations and obtain revenue enhancements and cost savings
following the merger; and the ability of Verizon Wireless to
combine operations and obtain revenue enhancements and cost
savings.
GTE's Annual Report on Form 10-K for the year ended December 31,
1999 discusses in greater detail the important factors that could
cause its actual results to differ materially.
GTE CORPORATION AND SUBSIDIARIES
CONSOLIDATED ADJUSTED STATEMENTS OF INCOME
(In Millions, Except Per-Share Amounts)
Unaudited
First Quarter 2000
----------------------------------
Reported Adjustments(1) Adjusted
----------------------------------
REVENUES AND SALES $ 6,100 $ - $ 6,100
OPERATING COSTS AND EXPENSES
Cost of services and
sales 2,662 - 2,662
Selling, general &
administrative 900 - 900
Depreciation and
amortization 993 - 993
Special items (40) 40 -
----------------------------------
TOTAL OPERATING COSTS
AND EXPENSES 4,515 40 4,555
OPERATING INCOME 1,585 (40) 1,545
OTHER (INCOME) EXPENSE
Interest - net 382 - 382
Other - net (89) - (89)
----------------------------------
INCOME BEFORE INCOME TAXES 1,292 (40) 1,252
Income taxes 476 (20) 456
----------------------------------
INCOME BEFORE EXTRAORDINARY
CHARGES 816 (20) 796
Extraordinary charges (9) 9 -
----------------------------------
NET INCOME $ 807 $ (11) $ 796
DILUTED EARNINGS PER COMMON
SHARE $ .83 $ (.01) $ .82
AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING
ASSUMING DILUTION 968 - 968
See accompanying Notes to Consolidated Adjusted Statements of
Income
GTE CORPORATION AND SUBSIDIARIES
CONSOLIDATED ADJUSTED STATEMENTS OF INCOME
(In Millions, Except Per-Share Amounts)
Unaudited
First Quarter 1999
-----------------------------------
Reported Adjustments(2) Adjusted
-----------------------------------
REVENUES AND SALES $ 5,879 $ (323) $ 5,556
OPERATING COSTS AND EXPENSES
Cost of services
and sales 2,617 (255) 2,362
Selling, general &
administrative 981 (45) 936
Depreciation and
amortization 920 - 920
Special
items (321) 321 -
-----------------------------------
TOTAL OPERATING COSTS
AND EXPENSES 4,197 21 4,218
OPERATING INCOME 1,682 (344) 1,338
OTHER (INCOME) EXPENSE
Interest - net 309 - 309
Other - net (70) (23) (93)
-----------------------------------
INCOME BEFORE INCOME
TAXES 1,443 (321) 1,122
Income taxes 531 (132) 399
INCOME BEFORE EXTRAORDINARY
CHARGES 912 (189) 723
Extraordinary charges (30) 30 -
-----------------------------------
NET INCOME $ 882 $ (159) $ 723
DILUTED EARNINGS PER
COMMON SHARE $ .90 $ (.16) $ .74
AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING -
ASSUMING DILUTION 976 - 976
See accompanying Notes to Consolidated Adjusted Statements of Income
GTE CORPORATION AND SUBSIDIARIES
CONSOLIDATED ADJUSTED STATEMENTS OF INCOME
(In Millions, Except Per-Share Amounts)
Unaudited
First Quarter Adjusted
------------------------ Percent
2000 1999 Change
---------------------------------
REVENUES AND SALES $ 6,100 $ 5,556 9.8
OPERATING COSTS AND EXPENSES
Cost of services and
sales 2,662 2,362 12.7
Selling, general &
administrative 900 936 (3.8)
Depreciation and
amortization 993 920 7.9
Special items - - -
---------------------------------
TOTAL OPERATING COSTS
AND EXPENSES 4,555 4,218 8.0
OPERATING INCOME 1,545 1,338 15.5
OTHER (INCOME) EXPENSE
Interest - net 382 309 23.6
Other - net (89) (93) (4.3)
---------------------------------
INCOME BEFORE INCOME TAXES 1,252 1,122 11.6
Income taxes 456 399 14.3
---------------------------------
INCOME BEFORE EXTRAORDINARY
CHARGES 796 723 10.1
Extraordinary charges - - -
---------------------------------
NET INCOME $ 796 $ 723 10.1
DILUTED EARNINGS PER
COMMON SHARE $ .82 $ .74 10.8
AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING -
ASSUMING DILUTION 968 976 (.8)
See accompanying Notes to Consolidated Adjusted Statements of Income
GTE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED ADJUSTED STATEMENTS OF INCOME
Unaudited
(1) Reported results for the first quarter of 2000 have been
adjusted for the following items:
On March 27, 2000, GTE completed the sale of CyberTrust, a
small unit that specialized in network security, to Baltimore
Technologies plc. Reported results for the first quarter of
2000 include a pretax net gain of $40 million, consisting of the
gain on the sale of CyberTrust, partially offset by the write-down
of certain impaired assets. The after-tax impact of this net gain
is $20 million,or $.02 per diluted share.
Extraordinary charges of $9 million after-tax, or $.01 per diluted
share, resulting from the repurchase of $128 million in debt prior
to stated maturity.
(2) Reported results for the first quarter of 1999 have been
adjusted for the following items:
On January 31, 1999, BC TELECOM, previously a majority-owned
Canadian subsidiary of GTE, merged with TELUS. As a result of
this merger, a pretax gain of $513 million was recorded as a
special item. The after-tax impact of this gain was $308
million, or $.31 per diluted share.
Pretax special charges of $192 million ($119 million
after-tax, or $.12 per diluted share), recorded in the first
quarter, associated with employee separation programs completed
in early April 1999. The charges include separation and
related benefits such as outplacement and benefit continuation
costs.
Extraordinary charges of $30 million after-tax, or $.03 per
diluted share, resulting from the repurchase of $338 million
in high coupon debt prior to stated maturity.
In late 1999, GTE completed the sale of its Government Systems
business. For comparative purposes, reported results for 1999
have been adjusted to exclude revenues and operating expenses
for Government Systems. Net income and EPS are not affected by
these adjustments.
Note: Reclassifications and restatements of prior period amounts
and operating statistics on the following schedules have been
made, where appropriate, to conform to the 2000 presentation.
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions, Except Per-Share Amounts)
Unaudited
First Quarter
---------------------- Percent
CONSOLIDATED OPERATIONS 2000 1999 Change
Financial data (1)
------------------
Revenues and sales $ 6,100 $ 5,556 9.8
Operating income $ 1,545 $ 1,338 15.5
Depreciation and
amortization 993 920 7.9
----------------------------------
Operating cash flow $ 2,538 $ 2,258 12.4
Operating cash flow
margin 41.6% 40.6% -
Capital expenditures $ 1,121 $ 933 20.2
Operating statistics (2)
Return on equity (3) 38.7% 39.4% -
Return on investment (3) 15.4% 15.3% -
Debt ratio 68.3% 63.3% -
Per share data:
Book value $ 11.14 $ 9.61 15.9
Dividends .47 .47 -
Common shares outstanding at
end of period
(thousands) 960,775 970,377 (1.0)(1)
Financial data is shown on an adjusted basis, as defined in the
Notes to Consolidated Adjusted Statements of Income.
(2) Operating statistics are shown on a reported basis.
(3) Excluding special items and extraordinary charges, return on
equity would have been 34.9% and 37.6%, while return on investment
would have been 14.1% and 14.8% in 2000 and 1999, respectively.
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions, Except Operating Statistics)
Unaudited
First Quarter
---------------------- Percent
NETWORK SERVICES 2000 1999(1) Change
Financial data
--------------
Revenues and sales
Local services $ 1,582 $ 1,467 7.8
Network access services
Interstate 852 851 .1
Intrastate 484 482 .4
Toll services 153 178 (14.0)
Other 691 670 3.1
----------------------------------
Total revenues 3,762 3,648 3.1
Intersegment revenues (143) (76) -
----------------------------------
Total external revenues $ 3,619 $ 3,572 1.3
Operating income $ 1,368 $ 1,200 14.0
Depreciation and 665 648 2.6
amortization ----------------------------------
Operating cash flow $ 2,033 $ 1,848 10.0
Operating cash flow margin 54.0% 50.7% -
Operating income margin 36.4% 32.9% -
Capital expenditures
$ 720 $ 656 9.8
Data revenues
(included above) 389 305 27.5
Operating statistics
Access minutes of use
(millions):
Interstate 14,333 13,753 4.2
Intrastate 10,364 9,822 5.5
----------------------------------
Total access minutes of use 24,697 23,575 4.8
Toll minutes - intraLATA
(millions) 1,331 1,362 (2.3)
Access lines (thousands):
Switched
Residential 14,127 13,701 3.1
Business 6,147 5,766 6.6
----------------------------------
Total switched 20,274 19,467 4.1
Special (2) 6,386 4,663 37.0
----------------------------------
Total access lines 26,660 24,130 10.5
Resale lines (3) 480 170 182.4
DSL lines 88 12 -
ISDN lines: (4)
Basic rate 180 167 7.8
Primary rate 325 197 65.0
----------------------------------
Total ISDN lines 505 364 38.7
(1) For comparative purposes, 1999 results have been restated to
reflect changes in the management structure of GTE and changes
in reporting, consistent with the 2000 presentation. In addition,
1999 operating income results exclude special charges of $113
million.
(2) Special access lines for 1999 have been restated for
consistent Voice Grade Equivalent line counts.
(3) Includes lines resold to GTE's CLEC of 306,000 in 2000 and
68,000 in 1999.
(4) Lines reflect Voice Grade Equivalents. VGEs used in the
calculation are: one Basic Rate ISDN = 2.25 lines and one
Primary Rate ISDN = 24 lines in the above table.
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions, Except Operating Statistics)
Unaudited
First Quarter
---------------------- Percent
WIRELESS (1) 2000 1999(2) Change
Financial data
Revenues and sales
Service revenues $ 940 $ 714 31.7
Equipment sales and other 149 122 22.1
----------------------------------
Total revenues $ 1,089 $ 836 30.3
Operating income(3) $ 156 $ 165 (5.5)
Depreciation and
amortization(3) 166 114 45.6
----------------------------------
Operating cash flow $ 322 $ 279 15.4
Operating cash flow
margin(4) 34.1% 39.0% -
Capital expenditures $ 146 $ 64 128.1
Operating statistics(5)
------------------------
Average revenue per user
per month $ 41 $ 46 (10.9)
Cash operating expense per
customer per month 22 27 (18.5)
Wireless subscribers
(thousands) 7,418 4,892 51.6
Adjusted POPs (millions) 72.7 61.9 17.4
End of period penetration 10.5% 9.8% -
--------------------------
(1) 2000 results include the acquisition of the Ameritech
wireless properties, completed in the fourth quarter of 1999.
Selected results for the first quarter of 2000, excluding the
acquisition of the Ameritech wireless properties, are as follows:
First Quarter Percent
2000 Change
------------- -------
Operating cash flow margin 32.7% -
Capital expenditures $ 136 112.5
Average revenue per user
per month 44 (4.3)
Cash operating expense per
customer per month 23 (14.8)
Wireless subscribers
(thousands) 5,672 15.9
Adjusted POPs (millions) 61.9 -
End of period penetration 9.8% -
(2) For comparative purposes, 1999 results exclude special
charges of $24 million. In addition, 1999 results have been
restated to reflect changes in the management structure of GTE,
consistent with the 2000 presentation.
(3) Includes goodwill amortization of $26 million for the first
quarter of 2000 related to the acquisition of the Ameritech
wireless properties.
(4) Cellular incollect revenues have been excluded.
(5) Operating statistics, except for subscribers and adjusted
POPS, represent results of domestic cellular operations. Cellular
incollect revenues and costs have been excluded from average
revenue per user per month and cash operating expense per customer
per month.
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions)
Unaudited
First Quarter
------------------- Percent
GENUITY 2000 1999(1) Change
Financial data
------------------
Revenues and sales $ 250 $ 163 53.4
Intersegment revenues (11) (4) -
----------------------------------
Total external revenues $ 239 $ 159 50.3
Operating loss $ (197) $ (127) (55.1)
Depreciation and
amortization 51 40 27.5
----------------------------------
Operating cash flow $ (146) $ (87) (68.8)
Capital expenditures $ 155 $ 89 74.2
OTHER DOMESTIC OPERATIONS
Revenues and sales
Communications Corporation $ 429 $ 341 25.8
Other,including eliminations(2) 162 175 (7.4)
-----------------------------------
Total revenues $ 591 $ 516 14.5
Total Domestic Revenues $ 5,692 $ 5,163 10.2
Total Domestic Operating
Income(3) $ 1,226 $ 1,146 7.0
-------------------------------
(1) For comparative purposes, 1999 results have been restated to
reflect changes in the management structure of GTE, consistent
with the 2000 presentation. In addition, for comparative
purposes, 1999 results for Government Systems have been excluded.
See Note 2 to Consolidated Adjusted Statements of Income.
(2) Includes elimination of revenues representing transactions
between units included in GTE's Domestic Operations and reflects
changes in the manner of reporting certain affiliate activity and
directory advertising revenue, consistent with the 2000
presentation.
(3) Operating income results exclude the special items primarily
related to the sale of CyberTrust recorded in the first quarter of
2000, as well as the pretax special charge of $179 million
recorded in the first quarter of 1999.
GTE CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL DATA AND OPERATING STATISTICS
(In Millions)
Unaudited
First Quarter
------------------- Percent
INTERNATIONAL 2000 1999 Change
Financial data
--------------
Revenues and sales
Local services $ 89 $ 80 11.3
Toll services 74 72 2.8
Wireless services 147 151 (2.6)
Directory services and other 121 101 19.8
-----------------------------------
Total revenues $ 431 $ 404 6.7
Operating income(1) $ 72 $ 73 (1.4)
Depreciation and
amortization 64 62 3.2
-----------------------------------
Operating cash flow $ 136 $ 135 .7
Operating cash flow margin 31.6% 33.4% -
Equity income $ 91 $ 82 11.0
Net income(1) 131 133 (1.5)
Capital expenditures 51 62 (17.7)
Proportionate revenues(2) 979 818 19.7
Operating statistics (thousands)
--------------------------------
Access lines at 100%:
Consolidated subsidiaries 1,031 1,006 2.5
Unconsolidated subsidiaries 8,296 8,256 .5
-----------------------------------
Total 9,327 9,262 .7
Proportionate access lines:
Consolidated subsidiaries 882 858 2.8
Unconsolidated subsidiaries 2,385 2,365 .8
-----------------------------------
Total 3,267 3,223 1.4
Wireless customers at 100%:
Consolidated subsidiaries 1,159 844 37.3
Unconsolidated subsidiaries 6,370 2,959 115.3
-----------------------------------
Total 7,529 3,803 98.0
Proportionate wireless customers:
Consolidated subsidiaries 787 555 41.8
Unconsolidated subsidiaries 1,266 660 91.8
--------------------------------------
Total 2,053 1,215 69.0
Adjusted POPs (millions):(3)
Consolidated subsidiaries 24.4 16.6 47.0
Unconsolidated subsidiaries 10.5 9.8 7.1
--------------------------------------
Total 34.9 26.4 32.2
(1) Excludes a pretax gain of $513 million ($308 million
after-tax) associated with the merger of BC TELECOM and TELUS
recorded in the first quarter of 1999.
(2) Results shown with proportional adjustment for GTE's
ownership interest.
(3) Represents population covered times GTE's ownership interest.
Media Contact: Peter Thonis, 972-507-5367
(pager 1-800-759-8888, pin 1131814)
Nancy Bavec, 972-507-6913
Latest directors dealings
- 3 minutes ago Amaroq Minerals Ltd. Npv (DI)
- 12 minutes ago Gama Aviation
- 21 minutes ago Mc Mining Limited
- 52 minutes ago Assura
- 1 hour ago ActiveOps