SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 20, 1999
SPRINT CORPORATION
(Exact name of Registrant as specified in its charter)
Kansas 0-4721 48-0457967
(State of Incorporation) (Commission File Number) (I.R.S. Employer
Identification No.)
2330 Shawnee Mission Parkway, Westwood, Kansas 66205
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (913) 624-3000
(Former name or former address, if changed since last report)
P. O. Box 11315, Kansas City, Missouri 64112
(Mailing address of principal executive offices)
<PAGE>
Item 5. Other Events
First Quarter 1999 Results Announced
On April 20, 1999, Sprint Corporation ("Sprint") announced
first quarter 1999 results in both its FON Group and its PCS
Group. Information concerning the results is contained in the
news release, a copy of which is filed as Exhibit 99-A to this
report and is incorporated in this report by reference.
Stock Split Announced
On April 20, 1999, Sprint announced that its Board of
Directors had declared a 2-for-1 stock split of its FON Common Stock
in the form of a dividend payable in shares of FON Common Stock. The
dividend will be distributed on June 4, 1999 to stockholders of record
as of the close of business on May 13, 1999. A copy of the news
release is filed as Exhibit 99-B to this report and is
incorporated in this report by reference.
Purchase of Remaining Interest in Cox Communications PCS, L.P.
Cox Communications ("Cox") has exercised its right to
require Sprint to purchase Cox's 40.8% interest in Cox
Communications PCS, L.P., which provides personal communications
services (PCS) in the Los Angeles - San Diego - Las Vegas MTA.
Sprint will issue Cox an aggregate of 24,299,504 shares of
its PCS Common Stock, Series 2, in exchange for the interest.
The closing of the purchase is expected to occur in the second
quarter of 1999. After the purchase is concluded, Sprint will
own 100% of Cox Communications PCS, L.P.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
24-A Power of Attorney for Sprint Corporation relating
to Registration Statement on Form S-3 (No. 333-65649)
24-B Power of Attorney for Sprint Capital Corporation
relating to Registration Statement on Form S-3
(No. 333-65649)
99-A News Release Relating to First Quarter 1999 Results
99-B News Release Relating to Stock Split
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, hereunto duly authorized.
SPRINT CORPORATION
Date: April 20, 1999 By: /s/ Michael T. Hyde
Michael T. Hyde
Assistant Secretary
<PAGE>
EXHIBIT INDEX
Exhibit
Number Description Page
24-A Power of Attorney for Sprint Corporation relating to
Registration Statement on Form S-3 (No. 333-65649)
24-B Power of Attorney for Sprint Capital Corporation
relating to Registration Statement on Form S-3
(No. 333-65649)
99-A News Release Relating to First Quarter 1999 Results
99-B News Release Relating to Stock Split
Exhibit 24-A
POWER OF ATTORNEY
We, the undersigned officers and directors of Sprint
Corporation, hereby severally constitute W. T. Esrey, A. B.
Krause and J. R. Devlin and each of them singly, our true and
lawful attorneys-in-fact, with full power of substitution, for
them, and each of them singly, to sign for us and in our names in
the capacities indicated below any registration statement that is
to be effective upon filing pursuant to Rule 462(b) under the
Securities Act of 1933, as amended, and any and all amendments to
said registration statement, in connection with an offering under
the Registration Statement on Form S-3 (No. 333-65649) and
generally to do all such things in our name and behalf in our
capacities as officers and directors to enable Sprint Corporation
to comply with the provisions of the Securities Act of 1933, as
amended, and all requirements of the Securities and Exchange
Commission, hereby ratifying and confirming our signatures as
they may be signed by our said attorneys, or any of them, to such
registration statement filed pursuant to Rule 462(b), and any and
all amendments to said registration statement.
Pursuant to the requirements of the Securities Act of 1933,
this Power of Attorney has been signed by the following persons
in the capacities and on the date indicated.
Name Title Date
Chairman of the Board )
and Chief Executive )
Officer )
(Principal Executive )
/s/ W. T. Esrey Officer) )
(W. T. Esrey) )
)
Executive Vice )
President and Chief )
Financial Officer )
(Principal Financial )
/s/ A. B. Krause Officer) )
(A. B. Krause) )
)
Senior Vice President ) April 20, 1999
and Controller )
(Principal Accounting )
/s/ J. P. Meyer Officer) )
J. P. Meyer) )
)
/s/ DuBose Ausley Director )
(DuBose Ausley) )
)
/s/ Warren L. Batts Director )
(Warren L. Batts) )
<PAGE>
Director )
(Michel Bon) )
)
/s/ Irvine O. Hockaday, Jr. Director )
(Irvine O. Hockaday, Jr.) )
)
/s/ Harold S. Hook Director )
(Harold S. Hook) )
)
/s/ Ronald T. LeMay Director ) April 20, 1999
(Ronald T. LeMay) )
)
/s/ Linda Koch Lorimer Director )
(Linda Koch Lorimer) )
)
/s/ Charles E. Rice Director )
(Charles E. Rice) )
)
Director )
(Ron Sommer) )
)
/s/ Stewart Turley Director )
(Stewart Turley) )
Exhibit 24-B
POWER OF ATTORNEY
We, the undersigned officers and directors of Sprint Capital
Corporation, hereby severally constitute D.A. Jensen, A.B. Krause
and Gene M. Betts and each of them singly, our true and lawful
attorneys with full power to them, and each of them singly, to
sign for us and in our names in the capacities indicated below
any registration statement that is to be effective upon filing
pursuant to Rule 462(b) under the Securities Act of 1933, as
amended, and any and all amendments to said registration
statement, in connection with an offering under the Registration
Statement on Form S-3 (No. 333-65649) and generally to do all
such things in our name and behalf in our capacities as officers
and directors to enable Sprint Capital Corporation to comply with
the provisions of the Securities Act of 1933, as amended, and all
requirements of the Securities and Exchange Commission, hereby
ratifying and confirming our signatures as they may be signed by
our said attorneys, or any of them, to such registration
statement filed pursuant to Rule 462(b), and any and all
amendments to said registration statement.
Pursuant to the requirements of the Securities Act of 1933,
this Power of Attorney has been signed by the following persons
in the capacities and on the date indicated.
Name Title Date
President and Chief )
Executive Officer and )
Director )
(Principal Executive )
/s/ A. B. Krause Officer) )
(A. B. Krause) )
)
Senior Vice President )
and Chief Financial )
Officer and Director )
(Principal Financial )
/s/ Gene M. Betts Officer) ) April 20, 1999
(Gene M. Betts) )
)
Senior Vice President )
and Controller )
(Principal Accounting )
/s/ J. P. Meyer Officer) )
(J. P. Meyer) )
)
/s/ Don A. Jensen Director )
(Don A. Jensen) )
)
Exhibit 99-A
Contacts:
Mark Bonavia, Sprint, (O) 913-624-3552
E-mail: [email protected]
Bill White, Sprint, (O) 913-624-2226
E-mail: [email protected]
Editor's note: The Sprint FON Group recorded fourth quarter
nonrecurring net gains of $104 million in 1998. These gains,
which mainly consisted of the sale of local exchanges, increased
Sprint FON Group income from continuing operations by $62
million, or 14 cents per diluted share. For comparative
purposes, our discussion of local telephone results assumes the
sale of local exchanges occurred at the beginning of 1998.
The Sprint FON Group (NYSE: FON) is comprised of Sprint's
core wireline telecommunications operations, which include long
distance, local telephone and product distribution and directory
publishing businesses. It also includes activities related to
the development of Sprint ION, Integrated On-Demand Network; and
other ventures, consisting mainly of Sprint's investment in
Global One.
The Sprint PCS Group (NYSE: PCS) consists of Sprint's
wireless personal communication services operations.
For Immediate Release
SPRINT ANNOUNCES RECORD FIRST QUARTER RESULTS
KANSAS CITY, Mo., Apr. 20, 1999 - Sprint today announced record
first quarter results in both its FON and PCS Groups. The FON Group's
diluted earnings per share of 93 cents represented an increase of 16
percent from the first quarter of 1998. The increased earnings were
driven by record revenues and double-digit increases in operating
income and cash flows in the FON Group's core operations. The PCS
Group achieved the highest number of first quarter customer
acquisitions ever recorded by a U.S. wireless carrier -- second only
to Sprint PCS' fourth quarter 1998 sales.
Consolidated Sprint revenues for the quarter were $4.72
billion, a 16 percent increase from $4.08 billion in the same
period last year.
-more-
<PAGE>
-2-
SPRINT FON GROUP HIGHLIGHTS:
- -- Revenues increased 7 percent in the first quarter of 1999 to
$4.17 billion from $3.89 billion in first quarter of 1998.
- -- Diluted earnings per share increased 16 percent to 93 cents,
compared to 80 cents per share a year ago. The 1998 first quarter
included a one-cent per share charge related to the early
extinguishment of debt.
- -- Net income was $406 million in the quarter, a 16 percent
increase from $352 million a year ago.
- -- Operating income from core operations increased 11 percent
to $796 million from $716 million last year.
- -- Operating cash flows from core operations were $1.3 billion,
up 10 percent from $1.18 billion a year ago.
- -- Earnings per share from core operations increased 15 percent
to $1.10 from 96 cents per share last year.
Long Distance
-- Revenues increased 9 percent to $2.63 billion from $2.41
billion in the first quarter of 1998.
-- Operating income was $388 million, up 21 percent from $319
million a year ago.
-- Calling volumes rose 24 percent from first quarter of 1998.
-- Operating cash flows increased 16 percent to $615 million
from $532 million a year ago.
Local Telecommunications
-- Revenues increased 6 percent to $1.37 billion from $1.3
billion in the first quarter a year ago.
-- Operating income rose 5 percent to $365 million from $348
million during the same period last year.
-- Access lines increased 5.2 percent, ending the quarter with
a total of nearly 7.8 million access lines.
-- Operating cash flows increased 6 percent to $615 million
from $579 million a year ago.
Product Distribution and Directory Publishing
-- Revenues increased 9 percent in the first quarter to $425
million from $391 million a year ago.
-more-
<PAGE>
-3-
-- Operating income declined 6 percent to $56 million from $59
million during last year's first quarter. The decline was
primarily driven by the amortization of costs associated with
the 1998 acquisition of a directory sales organization.
Sprint ION and Other Ventures
-- Sprint ION's after-tax losses equaled 7 cents per share for
the quarter, compared with a loss of 2 cents per share in the
first quarter of 1998.
-- First quarter losses for Global One and other ventures were
10 cents per share compared to 13 cents per share in the first
quarter of 1998.
"The FON Group's first quarter performance, marked by double-
digit earnings per share growth and a solid revenue increase,
reflected exceptional execution across the board," said William
T. Esrey, chairman and chief executive officer of Sprint.
In long distance, increases in operating income, calling
volumes and operating cash flows this quarter were attributable
to solid revenue and volume growth from the Sprint Sense
Unlimited and Sprint Sense Anytime products in the residential
market and increased demand for wholesale products and services.
In the large business segment, revenues for data services,
including ATM, Internet Protocol, and Frame Relay, rose nearly 50
percent compared to the first quarter of 1998.
Local telephone access line growth this quarter was driven
by strong demand for service in Nevada, Florida and North
Carolina and sales of second lines to support Internet access.
"In terms of Sprint ION and other ventures, we continue to
reach critical milestones relative to the launch of Sprint ION
and achieve operational improvement at Global One," Esrey said.
Final beta testing of the Sprint ION business product continued
this quarter, and Sprint ION installations were completed for
seven businesses at 29 sites across the country. Plans are on
track to begin testing the consumer and small business versions
of Sprint ION this summer and to release them in selected markets
at the end of this year.
Global One announced major network investments during the
quarter in the Asia-Pacific region and the Americas as part of
this year's expansion of its state-of-the-art ATM-based backbone
and other networks. The joint venture also signed major
contracts with Lucent Technologies for Global Call Center
services in the Netherlands and Nortel for Global ATM services in
several European countries.
SPRINT PCS GROUP HIGHLIGHTS:
- -- Sprint PCS added 763,000 new customers, including
approximately 20,000 customers acquired through the purchase of
the PrimeCo operation in Hawaii. Sprint PCS ended the quarter
with a total of 3.35 million customers.
-more-
<PAGE>
-4-
- -- The continued aggressive buildout of the Sprint PCS
nationwide network resulted in the addition of several
metropolitan markets in the quarter, including Chicago,
Cleveland, Richmond, Norfolk, and Atlanta.
- -- The Sprint PCS network now covers nearly 170 million people
nationwide and offers service in more than 280 metropolitan
markets, including more than 4,000 cities and communities.
Expanded coverage continued in existing markets, particularly
along major highways and travel corridors.
- -- Average monthly revenue per user was slightly over $52 in
the first quarter.
- -- Total revenues were $604 million in the first quarter.
Operating cash flow losses were $479 million.
- -- Losses for the quarter were $1.46 per share. The losses
include a 5 cents per share charge related to the early
extinguishment of debt. Quarterly losses were within company
expectations.
- -- Capital expenditures were $592 million for the quarter,
reflecting the continued buildout and expansion of the company's
nationwide network.
"Our PCS Group continues to shatter one industry record
after another and has emerged as the nation's fastest growing
carrier, adding customers at a very rapid pace," Esrey said. "Our
offer of superior all-digital clarity, nationwide PCS coverage
and differentiated calling plans has driven customer growth and
revenue increases. In what is traditionally a slow quarter in
the wireless industry, the PCS Group recorded the second largest
sales quarter in industry history."
To keep up with the rapid pace of subscriber growth, the PCS
Group announced plans to open its fifth national customer care
center in Charlotte, N.C. The state-of-the-art facility is
expected to begin handling service activations and customer care
in the second quarter.
Innovative products and services, backed by aggressive
marketing, also attracted new customers to Sprint PCS. The PCS
Group announced the availability of Short Messaging Services
offering all Sprint PCS customers who have voicemail the option
of receiving numeric pages or text messages directly to their
Sprint PCS phone.
Sprint is a global company at the forefront of integrating
long distance, local and wireless communications services and one
of the largest carriers of Internet traffic. Sprint built and
operates the United States' only nationwide all-digital, fiber-
optic network and is a leader in advanced data communications
services. Sprint has $17 billion in annual revenues and serves
more than 17 million business and residential customers.
<PAGE>
<TABLE>
Sprint Corporation
FON GROUP
COMBINED STATEMENTS OF INCOME (unaudited)
(millions, except per share data)
<CAPTION>
Quarters Ended
March 31,
---------------
1999 1998
---------------
<S> <C> <C>
Net operating revenues $4,172.2 $ 3,891.7
- -----------------------------------------------------------------
Operating expenses
Costs of services and products 1,925.7 1,871.9
Selling, general and administrative 1,003.2 870.2
Depreciation and amortization 506.0 466.6
- -----------------------------------------------------------------
Total operating expenses 3,434.9 3,208.7
- -----------------------------------------------------------------
Operating income 737.3 683.0
Interest expense (44.6) (77.6)
Equity in loss of Global One (34.5) (45.2)
Other income, net 10.1 30.9
- -----------------------------------------------------------------
Income before income taxes 668.3 591.1
Income taxes (262.1) (235.2)
- ------------------------------------------------------------------
Income before extraordinary items 406.2 355.9
Extraordinary items, net - (4.4)
- ------------------------------------------------------------------
Net income 406.2 351.5
Preferred stock dividends received (declared) 1.6 (0.3)
- ------------------------------------------------------------------
Earnings applicable to common stock $ 407.8 $ 351.2
------------------------
Diluted earnings per common share Actual Pro forma(1)
----------- ------------
Core businesses $ 1.10 $ 0.96
Sprint ION (0.07) (0.02)
Other ventures (0.10) (0.13)
- -------------------------------------------------------------------
Continuing operations 0.93 0.81
Extraordinary items - (0.01)
- -------------------------------------------------------------------
Total $ 0.93 $ 0.80
--------- --------------
Diluted weighted average common shares
outstanding 440.4 438.7
--------- --------------
Basic earnings per common share $ 0.94 $ 0.82
--------- --------------
<FN>
(1) The pro forma information assumes the FON stock existed for all periods
presented. In November 1998, Sprint completed the restructuring of Sprint
PCS and recapitalized Sprint common shares into two separate classes --
FON stock and PCS stock. FON stock is intended to reflect the performance
of Sprint's long distance division, local division, and product
distribution and directory publishing businesses. It also reflects
activities to develop and deploy Sprint ION(SM), Integrated On-Demand
Network, and other strategic ventures (mainly Sprint's investment in
Global One).
</FN>
</TABLE>
<PAGE>
<TABLE>
Sprint Corporation
FON GROUP
SELECTED OPERATING RESULTS (unaudited)
(millions)
<CAPTION>
Quarters Ended
March 31,
---------------
1999 1998
---------------
<S> <C> <C>
Long Distance Division
Net operating revenues $2,625.2 $2,407.1
- -----------------------------------------------------------
Operating expenses
Interconnection 1,009.4 977.3
Operations 348.6 343.9
Selling, general and administrative 652.6 554.3
Depreciation and amortization 227.1 212.3
- -----------------------------------------------------------
Total operating expenses 2,237.7 2,087.8
- -----------------------------------------------------------
Operating income $ 387.5 $ 319.3
Local Division
Net operating revenues
Local service $ 627.4 $ 584.7
Network access 505.4 484.2
Toll service 56.1 66.8
Other 182.8 173.9
- -----------------------------------------------------------
Net operating revenues 1,371.7 1,309.6
- -----------------------------------------------------------
Operating expenses
Costs of services and products 471.3 448.7
Selling, general and administrative 285.1 275.9
Depreciation and amortization 250.6 233.1
- -----------------------------------------------------------
Total operating expenses 1,007.0 957.7
- -----------------------------------------------------------
Operating income $ 364.7 $ 351.9
------------------
Product Distribution and Directory
Publishing
Net operating revenues $ 425.4 $ 391.2
------------------
Operating income $ 55.5 $ 59.2
------------------
Sprint ION
Operating expenses $ (52.4) $ (16.8)
-------------------
Other Ventures
Operating expenses $ (6.1) $ (16.6)
-------------------
Unallocated Corporate Operations and
Intercompany Eliminations
Net operating revenues $ (250.1) $ (216.2)
-------------------
Operating income $ (11.9) $ (14.0)
-------------------
</TABLE>
Sprint's FON Group reporting segments are intended to reflect the operating
results of its long distance division, local division, and product distribution
and directory publishing businesses. They also include activities to develop
and deploy Sprint ION (SM), Integrated On-Demand Network, and other strategic
ventures.
<PAGE>
<TABLE>
Sprint Corporation
FON GROUP
CONDENSED COMBINED BALANCE SHEETS
(millions)
<CAPTION>
March 31, December 31,
1999 1998
------------------------
(unaudited)
<S> <C> <C>
Assets
Current assets
Cash and equivalents $ 83.4 $ 432.5
Accounts receivable, net 2,494.6 2,384.3
Other 895.5 951.3
- -----------------------------------------------------------------
Total current assets 3,473.5 3,768.1
Property, plant and equipment, net 12,780.0 12,464.0
Other 2,767.7 2,768.7
- -----------------------------------------------------------------
Total $19,021.2 $19,000.8
---------------------
Liabilities and group equity
Current liabilities
Accounts payable and accrued
interconnection costs $ 1,664.3 $ 1,876.1
Other 1,744.9 1,417.3
- -----------------------------------------------------------------
Total current liabilities 3,409.2 3,293.4
Long-term debt 3,948.5 4,408.8
Deferred income taxes and
investment tax credits 828.1 828.3
Other 1,434.3 1,445.8
Group equity 9,401.1 9,024.5
- -----------------------------------------------------------------
Total $19,021.2 $19,000.8
---------------------
</TABLE>
<PAGE>
<TABLE>
Sprint Corporation
FON GROUP
CONDENSED COMBINED CASH FLOW INFORMATION (unaudited)
(millions)
<CAPTION>
Quarters Ended
March 31,
----------------
1999 1998
----------------
<S> <C> <C>
Operating Activities
Net income $ 406.2 $ 351.5
Equity in net losses of affiliates 43.8 50.3
Depreciation and amortization 506.0 466.6
Other, net (193.1) (82.4)
- -----------------------------------------------------------------
Net cash provided by operating activities 762.9 786.0
- -----------------------------------------------------------------
Investing Activities
Capital expenditures
Long distance division (259.3) (207.3)
Local division (392.9) (320.8)
Sprint ION (91.7) (12.5)
Other (61.8) (68.7)
Investments in and advances to
affiliates, net 67.2 (188.8)
Other, net (5.0) 4.3
- -----------------------------------------------------------------
Net cash used by investing activities (743.5) (793.8)
- -----------------------------------------------------------------
Financing Activities
Increase (decrease) in debt, net (289.6) 159.2
Dividends paid (101.8) (97.7)
Treasury stock purchases (45.4) (48.8)
Other, net 68.3 51.6
- -----------------------------------------------------------------
Net cash provided (used) by
financing activities (368.5) 64.3
- -----------------------------------------------------------------
Increase (decrease) in cash and
equivalents (349.1) 56.5
Cash and equivalents at beginning
of period 432.5 101.7
- -----------------------------------------------------------------
Cash and equivalents at end of period $ 83.4 $ 158.2
----------------------
</TABLE>
<PAGE>
<TABLE>
Sprint Corporation
PCS GROUP
COMBINED STATEMENTS OF OPERATIONS (unaudited)
(millions, except per share data)
<CAPTION>
Quarters Ended
March 31,
-----------------
1999 1998
-----------------
<S> <C> <C>
Net operating revenues $ 604.2 $ 203.3
- -----------------------------------------------------------------
Operating expenses
Costs of services and products 549.5 217.1
Selling, general and administrative 533.8 313.4
Depreciation and amortization 348.7 141.6
- -----------------------------------------------------------------
Total operating expenses 1,432.0 672.1
- -----------------------------------------------------------------
Operating loss (827.8) (468.8)
Interest expense (151.7) (104.7)
Other partners' loss in Sprint PCS - 305.2
Other income, net 27.3 37.4
- -----------------------------------------------------------------
Loss before income taxes (952.2) (230.9)
Income taxes 347.2 85.7
- -----------------------------------------------------------------
Net loss before extraordinary item (605.0) (145.2)
Extraordinary item, net (20.6) -
- -----------------------------------------------------------------
Net loss (625.6) (145.2)
Preferred stock dividends (3.5) -
- -----------------------------------------------------------------
Loss applicable to common stock $ (629.1) $ (145.2)
-----------------------
Diluted and basic loss per common share Actual Pro forma (1)
----------- -------------
Continuing operations $ (1.41) $ (0.97)
Extraordinary item (0.05) -
- ---------------------------------------------------------------------
Total $ (1.46) $ (0.97)
----------- --------------
Diluted and basic weighted average
common shares 431.7 415.8
----------- --------------
In November 1998, Sprint completed the restructuring of Sprint PCS and
purchased the remaining ownership interests in Sprint PCS from Tele-
Communications, Inc., Comcast Corporation and Cox Communications, Inc.
(the Cable Partners). The PCS Group includes the domestic wireless personal
communication services operations of Sprint Spectrum Holding Company and
PhillieCo (together, Sprint PCS) and SprintCom. The results for Sprint PCS
were consolidated in 1998, with the Cable Partners' share of losses through
the restructuring date reflected as "Other partners' loss in Sprint PCS."
<FN>
(1) In November 1998, Sprint recapitalized Sprint common shares into two
separate classes -- FON stock and PCS stock. The following first quarter
1998 pro forma information was used as the basis to compute diluted and
basic loss per common share and assumes the restructuring occurred at the
beginning of 1998 and the PCS stock existed for all of 1998.
Pro forma
-----------
Net operating revenues $ 203.3
-----------
Operating loss $ (579.7)
-----------
Loss before extraordinary item $ (402.4)
-----------
</FN>
</TABLE>
<PAGE>
<TABLE>
Sprint Corporation
PCS GROUP
CONDENSED COMBINED BALANCE SHEETS
(millions)
<CAPTION>
March 31, December 31,
1999 1998
--------------------------
(unaudited)
<S> <C> <C>
Assets
Current assets
Cash and equivalents $ 65.0 $ 172.7
Accounts receivable, net 357.1 306.4
Other 692.6 376.7
- --------------------------------------------------------------
Total current assets 1,114.7 855.8
Property, plant and
equipment, net 6,861.9 6,534.9
Intangible assets, net 7,309.1 7,337.8
Other 410.9 409.9
- --------------------------------------------------------------
Total $15,696.6 $15,138.4
-------------------------
Liabilities and group equity
Current liabilities
Current maturities of long-
term debt $ 182.1 $ 348.3
Accounts payable 519.0 371.2
Construction obligations 890.1 978.9
Other 804.4 701.3
- --------------------------------------------------------------
Total current liabilities 2,395.6 2,399.7
Long-term debt 8,127.1 7,846.7
Deferred income taxes 1,086.9 1,013.3
Other 95.4 123.2
Group equity 3,991.6 3,755.5
- --------------------------------------------------------------
Total $15,696.6 $15,138.4
-------------------------
</TABLE>
<PAGE>
<TABLE>
Sprint Corporation
PCS GROUP
CONDENSED COMBINED CASH FLOW INFORMATION (unaudited)
(millions)
<CAPTION>
Quarters Ended
March 31,
-------------------
1999 1998(1)
-------------------
<S> <C> <C>
Operating Activities
Net loss $ (625.6) $ (145.2)
Equity in net losses of affiliates - 209.7
Depreciation and amortization 348.7 -
Deferred income taxes 63.8 12.8
Increase in current tax
receivable from FON Group (264.7) (98.4)
Other, net 106.2 125.1
- -------------------------------------------------------------------
Net cash provided (used) by
operating activities (371.6) 104.0
- -------------------------------------------------------------------
Investing Activities
Capital expenditures (511.6) (178.6)
Investments in and loans to affiliates - (33.5)
Other, net (82.2) -
- --------------------------------------------------------------------
Net cash used by investing activities (593.8) (212.1)
- --------------------------------------------------------------------
Financing Activities
Increase in debt, net 22.0 -
Advances from and equity
transfers to FON Group, net - 108.1
Proceeds from PCS common stock issued 841.9 -
Other, net (6.2) -
- -------------------------------------------------------------------
Net cash provided by financing activities 857.7 108.1
- -------------------------------------------------------------------
Decrease in cash and equivalents (107.7) -
Cash and equivalents at beginning of period 172.7 -
- -------------------------------------------------------------------
Cash and equivalents at end of period $ 65.0 $ -
----------------------
<FN>
(1) The PCS restructuring occurred in November 1998. Cash flows prior to that
date reflect the operations of SprintCom and Sprint's investment in Sprint
PCS.
</FN>
</TABLE>
<PAGE>
<TABLE>
Sprint Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(millions)
<CAPTION>
March 31, December 31,
1999 1998
--------------------------
(unaudited)
<S> <C> <C>
Assets
Current assets
Cash and equivalents $ 148.4 $ 605.2
Accounts receivable, net 2,851.7 2,690.7
Other 1,151.7 1,092.0
- --------------------------------------------------------------------
Total current assets 4,151.8 4,387.9
Property, plant and equipment, net 19,623.4 18,983.0
Intangible assets, net 7,653.5 7,693.0
Other 2,292.4 2,167.2
- --------------------------------------------------------------------
Total $33,721.1 $33,231.1
-------------------------
Liabilities and shareholders' equity
Current liabilities
Current maturities of long-term debt $ 345.1 $ 246.9
Accounts payable and accrued
interconnection costs 2,183.3 2,247.3
Construction obligations 890.1 978.9
Other 2,039.3 1,968.0
- --------------------------------------------------------------------
Total current liabilities 5,457.8 5,441.1
Long-term debt 11,758.5 11,942.4
Deferred taxes and investment tax credits 1,903.4 1,830.3
Other 1,529.6 1,569.0
Common stock and other shareholders'
equity
Common stock
Class A 215.6 215.6
FON 700.5 700.5
PCS 406.2 375.4
PCS preferred stock 246.8 246.8
Other shareholders' equity 11,502.7 10,910.0
- --------------------------------------------------------------------
Total shareholders' equity 13,071.8 12,448.3
- --------------------------------------------------------------------
Total $33,721.1 $33,231.1
-------------------------
</TABLE>
<PAGE>
<TABLE>
Sprint Corporation
CONDENSED CONSOLIDATED CASH FLOW INFORMATION (unaudited)
(millions)
<CAPTION>
Quarters Ended
March 31,
--------------------
1999 1998(1)
--------------------
<S> <C> <C>
Operating Activities
Net income (loss) $ (219.4) $ 206.3
Equity in net losses of affiliates 43.8 260.0
Depreciation and amortization 854.7 466.6
Other, net (299.0) 55.5
- -----------------------------------------------------------------
Net cash provided by operating activities 380.1 988.4
- -----------------------------------------------------------------
Investing Activities
Capital expenditures
FON Group (805.7) (609.3)
PCS Group (511.6) (178.6)
Investments in and loans to
affiliates, net (67.5) (212.6)
Other, net (87.2) 4.3
- ------------------------------------------------------------------
Net cash used by investing
activities (1,472.0) (996.2)
- ------------------------------------------------------------------
Financing Activities
Increase (decrease) in debt, net (132.9) 159.2
Treasury stock purchases (45.4) (48.8)
Proceeds from PCS common stock issued 841.9 -
Dividends paid (101.8) (97.7)
Other, net 73.3 51.6
- ------------------------------------------------------------------
Net cash provided by financing activities 635.1 64.3
- ------------------------------------------------------------------
Increase (decrease) in cash and equivalents (456.8) 56.5
Cash and equivalents at beginning
of period 605.2 101.7
- ------------------------------------------------------------------
Cash and equivalents at end of period $ 148.4 $ 158.2
-----------------------
<FN>
(1) The PCS restructuring occurred in November 1998. Cash flows prior to that
date reflect the operations of SprintCom and Sprint's investment in Sprint
PCS.
</FN>
</TABLE>
Exhibit 99-B
Contact:
Mark Bonavia, Sprint, (O) 913-624-3552
Pager 1-800-724-3329, pin 393-3749
E-mail: [email protected]
Bill White Sprint, (0) 913-624-2226
E-mail: [email protected]
For Immediate Release
SPRINT ANNOUNCES TWO-FOR-ONE SPLIT OF SPRINT FON STOCK
KANSAS CITY, Mo., Apr. 20, 1999 - Sprint today announced at
its annual shareholders meeting that its Board of Directors
approved a two-for-one stock split of the company's Sprint FON
stock (NYSE: FON) in the form of a dividend payable in Sprint FON
shares. A comparable dividend will be paid on the Class A common
stock owned by France Telecom and Deutsche Telekom.
New shares will be issued on June 4 to shareholders of
record on May 13.
"Today's announcement is a significant milestone for Sprint
and a reflection of the company's financial strength and
consistently robust operating results," said William T. Esrey,
chairman and chief executive officer of Sprint. "The dividend
underscores our confidence in Sprint's long-term growth potential
and financial prosperity."
The Sprint FON shares reflect the performance of Sprint's
wireline telecommunications operations, which include long
distance, local telephone and product distribution and directory
publishing businesses. It also includes activities related to
the development of Sprint ION, Integrated On-Demand Network, and
other ventures, consisting mainly of Sprint's investment in
Global One, a partnership with France Telecom and Deutsche
Telekom.
Sprint currently has approximately 432 million shares
outstanding reflecting Sprint's wireline operations:
approximately 346 million Sprint FON shares and approximately 86
million Class A common shares.
Sprint is a global company at the forefront of integrating
long distance, local and wireless communications services and one
of the largest carriers of Internet traffic. Sprint built and
operates the United States' only nationwide all-digital, fiber-
optic network and is a leader in advanced data communications
services. Sprint has $17 billion in annual revenues and serves
more than 17 million business and residential customers.
-30-
