<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------
FORM 10-Q
---------------------
(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 1-7368
BELL ATLANTIC - WASHINGTON, D.C., INC.
A New York Corporation I.R.S. Employer Identification No. 53-0046277
1710 H Street, N.W., Washington, D.C. 20006
Telephone Number (202) 392-9900
-------------------------
THE REGISTRANT, A WHOLLY OWNED SUBSIDIARY OF BELL ATLANTIC CORPORATION, MEETS
THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND
IS THEREFORE FILING THIS FORM WITH REDUCED DISCLOSURE FORMAT PURSUANT TO GENERAL
INSTRUCTION H(2).
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
<PAGE>
Bell Atlantic - Washington, D.C., Inc.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
CONDENSED STATEMENTS OF INCOME AND REINVESTED EARNINGS
(Unaudited)
(Dollars in Thousands)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
------------------- -------------------
1998 1997 1998 1997
--------- -------- --------- --------
<S> <C> <C> <C> <C>
OPERATING REVENUES (including $37,138, $28,611,
$70,876 and $55,502 from affiliates)........ $165,695 $159,397 $321,450 $309,059
-------- -------- -------- --------
OPERATING EXPENSES
Employee costs, including benefits and
taxes.................................. 21,380 24,350 42,102 49,137
Depreciation and amortization............... 38,325 39,105 75,841 77,554
Taxes other than income..................... 11,043 10,492 22,219 22,067
Other (including $34,242, $39,037,
$71,498 and $77,268 to affiliates)..... 45,615 53,989 92,589 103,606
-------- -------- -------- --------
116,363 127,936 232,751 252,364
-------- -------- -------- --------
OPERATING INCOME................................. 49,332 31,461 88,699 56,695
OTHER INCOME, NET................................ 14,015 296 14,339 337
INTEREST EXPENSE (including $357, $460,
$786 and $1,113 to affiliate)............... 4,366 4,643 8,845 9,520
-------- -------- -------- --------
Income Before Provision for Income Taxes......... 58,981 27,114 94,193 47,512
PROVISION FOR INCOME TAXES....................... 24,334 10,530 38,747 18,963
-------- -------- -------- --------
NET INCOME....................................... $ 34,647 $ 16,584 $ 55,446 $ 28,549
======== ======== ======== ========
REINVESTED EARNINGS
At beginning of period...................... $115,346 $ 61,241 $ 94,547 $ 51,646
Add: net income............................ 34,647 16,584 55,446 28,549
-------- -------- -------- --------
149,993 77,825 149,993 80,195
Deduct: dividends........................ 4,000 --- 4,000 ---
other changes.................... (1) 164 (1) 2,534
-------- -------- -------- --------
At end of period............................ $145,994 $ 77,661 $145,994 $ 77,661
======== ======== ======== ========
</TABLE>
See Notes to Condensed Financial Statements.
1
<PAGE>
Bell Atlantic - Washington, D.C., Inc.
CONDENSED BALANCE SHEETS
(Unaudited)
(Dollars in Thousands)
ASSETS
------
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
---------- ------------
<S> <C> <C>
CURRENT ASSETS
Short-term investments........................................... $ 4,448 $ 7,134
Accounts receivable:
Trade and other, net of allowances for
uncollectibles of $8,566 and $7,721.................... 145,534 132,936
Affiliates.................................................. 23,060 18,253
Material and supplies............................................ 484 1,929
Prepaid expenses................................................. 4,688 3,962
Deferred income taxes............................................ 3,243 3,872
Other............................................................ --- 2
---------- ----------
181,457 168,088
---------- ----------
PLANT, PROPERTY AND EQUIPMENT.................................... 1,702,699 1,652,123
Less accumulated depreciation.................................... 908,154 849,599
---------- ----------
794,545 802,524
---------- ----------
OTHER ASSETS..................................................... 14,929 17,206
---------- ----------
TOTAL ASSETS..................................................... $ 990,931 $ 987,818
========== ==========
</TABLE>
See Notes to Condensed Financial Statements.
2
<PAGE>
Bell Atlantic - Washington, D.C., Inc.
CONDENSED BALANCE SHEETS
(Unaudited)
(Dollars in Thousands)
LIABILITIES AND SHAREOWNER'S INVESTMENT
---------------------------------------
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
------------ -------------
<S> <C> <C>
CURRENT LIABILITIES
Debt maturing within one year:
Note payable to affiliate.................... $ 12,877 $ 9,526
Other........................................ 29 20,512
Accounts payable and accrued liabilities:
Affiliates................................... 101,975 113,404
Other........................................ 83,714 102,722
Advance billings and customer deposits............. 10,298 9,464
-------- --------
208,893 255,628
-------- --------
LONG-TERM DEBT..................................... 227,796 227,769
-------- --------
EMPLOYEE BENEFIT OBLIGATIONS....................... 127,684 134,434
-------- --------
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes.............................. 37,885 29,585
Unamortized investment tax credits................. 3,481 3,626
Other.............................................. 18,681 21,712
-------- --------
60,047 54,923
-------- --------
SHAREOWNER'S INVESTMENT
Common stock - one share, owned by parent, at
stated value...................................... 191,968 191,968
Capital surplus.................................... 28,549 28,549
Reinvested earnings................................ 145,994 94,547
-------- --------
366,511 315,064
-------- --------
TOTAL LIABILITIES AND SHAREOWNER'S INVESTMENT...... $990,931 $987,818
======== ========
</TABLE>
See Notes to Condensed Financial Statements.
3
<PAGE>
Bell Atlantic - Washington, D.C., Inc.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in Thousands)
Six months ended
June 30,
---------------------
1998 1997
--------- ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES....... $ 87,229 $ 93,013
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Net change in short-term investments............ 2,686 2,876
Additions to plant, property and equipment...... (78,126) (78,013)
Other, net...................................... 9,441 6,335
------- -------
Net cash used in investing activities........... (65,999) (68,802)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal repayments of borrowings and capital
lease obligations.......................... (20,149) (40)
Net change in note payable to affiliate......... 3,351 (22,156)
Dividends paid.................................. (4,000) ---
Net change in outstanding checks drawn
on controlled disbursement accounts........ (432) (2,015)
------- -------
Net cash used in financing activities........... (21,230) (24,211)
------- -------
NET CHANGE IN CASH.............................. --- ---
CASH, BEGINNING OF PERIOD....................... --- ---
------- -------
CASH, END OF PERIOD............................. $ --- $ ---
======= =======
See Notes to Condensed Financial Statements.
4
<PAGE>
Bell Atlantic - Washington, D.C., Inc.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
Bell Atlantic - Washington, D.C., Inc. (the Company) is a wholly owned
subsidiary of Bell Atlantic Corporation (Bell Atlantic). The accompanying
unaudited condensed financial statements have been prepared based upon
Securities and Exchange Commission rules that permit reduced disclosure for
interim periods. These financial statements reflect all adjustments which are
necessary for a fair presentation of results of operations and financial
position for the interim periods shown including normal recurring accruals. The
results for the interim periods are not necessarily indicative of results for
the full year. For a more complete discussion of significant accounting
policies and certain other information, refer to the financial statements
included in the Company's 1997 Form 10-K.
The Company has reclassified certain amounts from prior year's data to
conform with the 1998 presentation.
2. Dividend
On August 3, 1998, the Company declared and paid a dividend in the amount of
$4,000,000 to Bell Atlantic.
3. Debt
On July 24, 1998, the Company announced it will redeem $60,000,000 of 7.75%
debentures due in 2013 on August 24, 1998. In connection with this redemption,
the Company will record an extraordinary charge of $1.0 million in the third
quarter of 1998.
4. Litigation and Other Contingencies
Various legal actions and regulatory proceedings are pending to which the
Company is a party. The Company has established reserves for liabilities in
connection with regulatory and legal matters which it currently deems to be
probable and estimable. The Company does not expect that the ultimate
resolution of these matters in future periods will have a material effect on the
Company's financial position, but it could have a material effect on results of
operations.
5. Recent Accounting Pronouncement
Costs of Computer Software
In March 1998, the American Institute of Certified Public Accountants issued
Statement of Position No. 98-1, "Accounting for the Costs of Computer Software
Developed or Obtained for Internal Use," (SOP 98-1). SOP 98-1 provides, among
other things, guidance for determining whether computer software is for internal
use and when the cost related to such software should be expensed as incurred or
capitalized and amortized. SOP 98-1 is required to be adopted no later than
January 1, 1999.
The Company currently capitalizes initial right-to-use fees for central
office switching equipment, including initial operating system and initial
application software costs. For noncentral office equipment, only the initial
operating system software is capitalized. Subsequent additions, modifications,
or upgrades of initial software programs, whether operating or application
packages, are expensed as incurred. The Company is currently evaluating the
provisions of SOP 98-1 and has not yet quantified the effect at this time. The
adoption of SOP 98-1 is expected to result in an increase in earnings in the
year of adoption due to the prospective capitalization of costs which were
previously expensed.
5
<PAGE>
Bell Atlantic - Washington, D.C., Inc.
6. Proposed Bell Atlantic - GTE Merger
Bell Atlantic and GTE Corporation (GTE) have announced a proposed merger of
equals under a definitive merger agreement dated as of July 27, 1998. Under the
terms of the agreement, GTE shareholders will receive 1.22 shares of Bell
Atlantic common stock for each share of GTE common stock that they own. Bell
Atlantic shareholders will continue to own their existing shares after the
merger.
It is expected that the merger will qualify as a "pooling of interests,"
which means for accounting and financial reporting purposes the companies will
be treated as if they had always been combined. The completion of the merger is
subject to a number of conditions, including certain regulatory approvals,
receipt of opinions that the merger will be tax free, and the approval of the
shareholders of both Bell Atlantic and GTE. The companies expect to close the
merger in the second half of 1999.
6
<PAGE>
Bell Atlantic - Washington, D.C., Inc.
Item 2. Management's Discussion and Analysis of Results of Operations
(Abbreviated pursuant to General Instruction H(2).)
This discussion should be read in conjunction with the Financial Statements
and Notes to Financial Statements.
RESULTS OF OPERATIONS
- ---------------------
The Company reported net income of $55,446,000 for the six month period ended
June 30, 1998, compared to net income of $28,549,000 for the same period in
1997.
Items affecting the comparison of the Company's results of operations for the
six month periods ended June 30, 1998 and 1997 are discussed in the following
sections. This Management's Discussion and Analysis should also be read in
conjunction with the Company's 1997 Annual Report on Form 10-K.
OPERATING REVENUE STATISTICS
- ----------------------------
1998 1997 % Change
- --------------------------------------------------------------------------------
At June 30
- ----------
Access Lines in Service (in thousands)*
Residence............................. 297 291 2.1%
Business.............................. 619 612 1.1
Public................................ 10 10 ---
----- -----
926 913 1.4
===== =====
Six Month Period Ended June 30
- ------------------------------
Access Minutes of Use (in millions)...... 1,498 1,444 3.7
===== =====
* 1997 reflects a restatement of access lines in service to include Primary Rate
ISDN (Integrated Services Digital Network) channels to conform with the 1998
presentation.
OPERATING REVENUES
- ------------------
(Dollars in Thousands)
Six Month Period Ended June 30 1998 1997
- --------------------------------------------------------------------------------
Local services............................ $ 148,297 $ 150,409
Network access services................... 71,739 72,376
Long distance services.................... 2,059 2,002
Ancillary services........................ 97,987 82,897
Directory and information services........ 1,368 1,375
--------- ---------
Total..................................... $ 321,450 $ 309,059
========= =========
7
<PAGE>
Bell Atlantic - Washington, D.C., Inc.
LOCAL SERVICES REVENUES
1998 - 1997 (Decrease)
- --------------------------------------------------------------------------------
Six Months $(2,112) (1.4)%
- --------------------------------------------------------------------------------
Local services revenues are earned by the Company from the provision of local
exchange, local private line, public telephone (pay phone) and value-added
services. Value-added services are a family of services which expand the
utilization of the network. These services include products such as Caller ID,
Call Waiting and Return Call.
Local services revenues declined in the first half of 1998 primarily due to
rate reductions on certain local services, including dial-tone charges, pursuant
to the Company's Price Cap Plan and the elimination of business Touch-Tone
service charges, effective January 1, 1998. The elimination of these Touch-Tone
service charges is expected to reduce annual revenues by approximately
$2,300,000 and the price reduction for dial-tone charges is expected to reduce
annual revenues by approximately $1,000,000. Lower business and residence
message volumes also contributed to the decline in local services revenues.
Revenue decreases were partially offset by growth in value-added services and
private line and switched data services revenues resulting from higher customer
demand and usage. The Company also recognized higher revenues from public
telephone services in the first half of 1998. Price increases for usage of the
Company's pay phones and the implementation of new charges to carriers resulting
from pay phone deregulation in April 1997 were the principal reasons for the
improvement in public telephone services revenues.
NETWORK ACCESS SERVICES REVENUES
1998 - 1997 (Decrease)
- --------------------------------------------------------------------------------
Six Months $(637) (.9)%
- --------------------------------------------------------------------------------
Network access services revenues are earned from carriers for their use of
the Company's local exchange facilities in providing usage services to their
customers. In addition, end-user subscribers pay flat rate access fees to
connect to the Company's network.
Network access services revenues declined in the first half of 1998 primarily
due to net price reductions mandated by a federal price cap plan. This decrease
was substantially offset by higher customer demand as reflected by growth in
access minutes of use of 3.7% from June 30, 1997. Volume growth was boosted by
the expansion of the business market, particularly for high-capacity services.
Demand for special access services grew as Internet service providers and other
high-capacity users increased their utilization of the Company's network. In
addition, higher end-user revenues attributable to an increase in access lines
in service contributed to revenue growth in 1998.
Effective July 1, 1998, the Company implemented price decreases of
approximately $2,300,000 on an annual basis for interstate services, in
connection with the Federal Communications Commission's (FCC) Price Cap Plan.
The rates included in this 1998 filing will be in effect through June 1999. The
July 1, 1998 rates include amounts necessary to recover the Company's
contribution to the FCC's new universal service fund. The FCC has created a
multi-billion dollar interstate fund to link schools and libraries to the
Internet and to subsidize low-income consumers and rural health care providers.
Under the FCC's rules, all providers of interstate telecommunications services
must contribute to the fund. The Company's contributions to the universal
service fund are included in Other Operating Expenses.
8
<PAGE>
Bell Atlantic - Washington, D.C., Inc.
LONG DISTANCE SERVICES REVENUES
1998 - 1997 Increase
- --------------------------------------------------------------------------------
Six Months $57 2.8%
- --------------------------------------------------------------------------------
Long distance services revenues are earned primarily from calls made outside
a customer's local calling area, but within the same service area of the Company
(intraLATA toll).
The increase in long distance services revenues in the first half of 1998 was
caused by growth in toll message volumes from June 30, 1997.
ANCILLARY SERVICES REVENUES
1998-1997 Increase
- --------------------------------------------------------------------------------
Six Months $15,090 18.2%
- --------------------------------------------------------------------------------
The Company provides ancillary services which include billing and collection
services provided to long distance carriers and affiliates, customer premises
equipment (CPE) services, facilities rental services for affiliates and
nonaffiliates, usage of separately priced (unbundled) components of its network,
sales of materials and supplies to affiliates and voice messaging services.
The increase in ancillary services revenues in the first half of 1998 was
primarily as a result of higher facilities rental revenues from affiliates.
Rental revenues were higher in 1998 due to the centralization of data processing
services of certain affiliates in a facility owned by the Company. Ancillary
services revenues were also higher as a result of increased demand by long
distance carriers and affiliates for billing and collection services.
DIRECTORY AND INFORMATION SERVICES REVENUES
1998 - 1997 (Decrease)
- --------------------------------------------------------------------------------
Six Months $(7) (.5)%
- --------------------------------------------------------------------------------
Directory and information services revenues are earned primarily from fees
for nonpublication of telephone numbers and multiple white page listings, and
from a contract with an affiliate for usage of the Company's directory listings.
Lower fees received from an affiliate for use of the Company's directory
listings was the principal reason for the decrease in directory and information
services revenues in 1998.
9
<PAGE>
Bell Atlantic - Washington, D.C., Inc.
OPERATING EXPENSES
- ------------------
(Dollars in Thousands)
Six Month Period Ended June 30 1998 1997
- --------------------------------------------------------------------------------
Employee costs, including benefits and taxes.. $ 42,102 $ 49,137
Depreciation and amortization................. 75,841 77,554
Taxes other than income....................... 22,219 22,067
Other operating expenses...................... 92,589 103,606
-------- --------
Total......................................... $232,751 $252,364
======== ========
EMPLOYEE COSTS
1998 - 1997 (Decrease)
- --------------------------------------------------------------------------------
Six Months $(7,035) (14.3)%
- --------------------------------------------------------------------------------
Employee costs consist of salaries, wages and other employee compensation,
employee benefits and payroll taxes paid directly by the Company. Similar costs
incurred by employees of Bell Atlantic Network Services, Inc. (NSI), who provide
centralized services on a contractual basis, are allocated to the Company and
are included in Other Operating Expenses.
Employee costs decreased in the first six months of 1998 primarily as a
result of lower pension and benefit costs. The reduction in pension and benefit
costs was caused by a number of factors, including changes in actuarial
assumptions, favorable pension plan investment returns and lower than expected
medical claims. The effect of lower work force levels and the effect of
additional costs billed to affiliates associated with a centralized repair and
maintenance center also contributed to the decline in employee costs. These
cost reductions were offset, in part, by the effect of annual salary and wage
increases for management and associate employees.
Associate employee wages and pension and other benefits are determined under
a contract with the union representing associate employees of the Company. On
August 11, 1998, the Company and the Communications Workers of America (CWA)
reached a tentative agreement on a new 2-year contract. The contract provides
for wage increases of up to 3.8 percent effective August 9, 1998, and up to 4
percent effective August 8, 1999. Pensions will increase by 11 percent. Union-
represented employees are eligible for standard cash awards of $400 for 1998 and
$500 for 1999, which can be increased or decreased based on financial and
customer care performance results. The new contract also includes other benefit
improvements and certain employment security provisions.
The labor agreement with the CWA is subject to ratification by the union
membership, which is expected within the next 30 days.
DEPRECIATION AND AMORTIZATION
1998 - 1997 (Decrease)
- --------------------------------------------------------------------------------
Six Months $(1,713) (2.2)%
- --------------------------------------------------------------------------------
Depreciation and amortization expense decreased in the first six months of
1998 over the same period in 1997 principally due to the effect of lower rates
of depreciation and amortization. This decrease was partially offset by
additional expense resulting from growth in depreciable telephone plant.
10
<PAGE>
Bell Atlantic - Washington, D.C., Inc.
TAXES OTHER THAN INCOME
1998 - 1997 Increase
- --------------------------------------------------------------------------------
Six Months $152 .7%
- --------------------------------------------------------------------------------
Taxes other than income consist principally of taxes for gross receipts,
property, capital stock and business licenses.
The increase in taxes other than income was primarily attributable to
additional expense resulting from higher assessments for worker's compensation,
sales and use tax and personal property taxes. These increases were
substantially offset by lower gross receipts taxes.
OTHER OPERATING EXPENSES
1998 - 1997 (Decrease)
- --------------------------------------------------------------------------------
Six Months $(11,017) (10.6)%
- --------------------------------------------------------------------------------
Other operating expenses consist of contract services including centralized
services expenses allocated from NSI, rent, network software costs, the
provision for uncollectible accounts receivable, and other costs.
The decrease in other operating expenses was largely attributable to lower
costs for materials and contract services. The reduction in contract services
was due, in part, to the disposition of Bell Atlantic's ownership interest in
Bell Communications Research Inc. (Bellcore) in November 1997. The Company
continues to contract with Bellcore for technical and support services, but to a
lesser extent. The Company also recognized lower centralized services expenses
allocated from NSI primarily as a result of lower pension and benefit costs
incurred by NSI. The reduction in centralized services expenses was partially
offset by transition and integration costs allocated to the Company in
connection with the merger of Bell Atlantic and NYNEX Corporation. These
decreases were partially offset by the Company's contribution to the federal
universal service fund, as described earlier, higher network software purchases
and higher interconnection charges for terminating calls on the networks of
competitive local exchange and other carriers.
OTHER INCOME, NET
1998 - 1997 Increase
- --------------------------------------------------------------------------------
Six Months $14,002
- --------------------------------------------------------------------------------
The change in other income, net, was primarily due to a gain recognized on
the disposition of certain property in June 1998.
INTEREST EXPENSE
1998 - 1997 (Decrease)
- --------------------------------------------------------------------------------
Six Months $(675) (7.1)%
- --------------------------------------------------------------------------------
Interest expense decreased in the first six months of 1998 as a result of
lower levels of average short-term debt.
11
<PAGE>
Bell Atlantic - Washington, D.C., Inc.
EFFECTIVE INCOME TAX RATES
Six Months Ended June 30
- --------------------------------------------------------------------------------
1998 41.1%
- --------------------------------------------------------------------------------
1997 39.9%
- --------------------------------------------------------------------------------
The effective income tax rate is the provision for income taxes as a
percentage of income before the provision for income taxes. The Company's
effective income tax rate was higher in the first six months of 1998 principally
due to higher tax credits recorded in 1997.
FINANCIAL CONDITION
- -------------------
The Company uses the net cash generated from operations and from external
financing to fund capital expenditures for network expansion and modernization,
and to pay dividends. While current liabilities exceeded current assets at both
June 30, 1998 and 1997 and December 31, 1997, the Company's sources of funds,
primarily from operations and, to the extent necessary, from readily available
financing arrangements with an affiliate, are sufficient to meet ongoing
operating requirements. Management expects that presently foreseeable capital
requirements will continue to be financed primarily through internally generated
funds. Additional long-term debt may be needed to fund development activities or
to maintain the Company's capital structure to ensure financial flexibility.
As of June 30, 1998, the Company had $112,100,000 of an unused line of credit
with an affiliate, Bell Atlantic Network Funding Corporation. In addition, the
Company had $60,000,000 remaining under a shelf registration statement filed
with the Securities and Exchange Commission for the issuance of unsecured debt
securities.
The Company's debt ratio was 39.6% as of June 30, 1998, compared to 47.9% as
of June 30, 1997 and 45.0% as of December 31, 1997.
On July 24, 1998, the Company announced it will redeem $60,000,000 of 7.75%
debentures due in 2013 on August 24, 1998. In connection with this redemption,
the Company will record an extraordinary charge of $1.0 million in the third
quarter of 1998.
On August 3, 1998, the Company declared and paid a dividend in the amount of
$4,000,000 to Bell Atlantic.
12
<PAGE>
Bell Atlantic - Washington, D.C., Inc.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
There were no proceedings reportable under this Item.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
Exhibit Number
27 Financial Data Schedule.
(b) There were no Current Reports on Form 8-K filed during the
quarter ended June 30, 1998.
13
<PAGE>
Bell Atlantic - Washington, D.C., Inc.
SIGNATURES
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, thereunto duly authorized.
BELL ATLANTIC - WASHINGTON, D.C., INC.
Date: August 13, 1998 By /s/ Edwin F. Hall
----------------------------------
Edwin F. Hall
Controller
UNLESS OTHERWISE INDICATED, ALL INFORMATION IS AS OF AUGUST 12, 1998.
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
STATEMENT OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND THE BALANCE SHEET
AT JUNE 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 4,448
<SECURITIES> 0
<RECEIVABLES> 154,100
<ALLOWANCES> 8,566
<INVENTORY> 484
<CURRENT-ASSETS> 181,457
<PP&E> 1,702,699
<DEPRECIATION> 908,154
<TOTAL-ASSETS> 990,931
<CURRENT-LIABILITIES> 208,893
<BONDS> 227,796
0
0
<COMMON> 191,968
<OTHER-SE> 174,543
<TOTAL-LIABILITY-AND-EQUITY> 990,931
<SALES> 0
<TOTAL-REVENUES> 321,450
<CGS> 0
<TOTAL-COSTS> 232,751
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,845
<INCOME-PRETAX> 94,193
<INCOME-TAX> 38,747
<INCOME-CONTINUING> 55,446
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 55,446
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
