<PAGE>
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: January 21, 1998
Exact name of registrant
as specified in its charter: BELL ATLANTIC CORPORATION
Commission File Number: 1-8606
State of Incorporation: Delaware
I.R.S. Employer Identification No.: 23-2259884
Address of principal
executive offices: 1095 Avenue of the Americas
New York, New York
Zip Code 10036
Registrant's telephone number,
including area code: (212) 395-2121
Former name or former address,
if changed since last report: Not applicable
<PAGE>
Item 5. Other Events
------------
Attached as exhibits are (i) a press release issued by Bell Atlantic Corporation
on January 21, 1998 announcing earnings for 1997, and (ii) the Quarterly
Bulletin for the 4th quarter 1997 issued by Bell Atlantic Corporation on January
21, 1998.
Item 7. Financial Statements and Exhibits
---------------------------------
(c) Exhibits.
99.1 Press Release, dated January 21, 1998, issued by Bell Atlantic
Corporation.
99.2 Quarterly Bulletin issued by Bell Atlantic Corporation on January 21,
1998.
1
<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.
BELL ATLANTIC CORPORATION
By: /s/ Mel Meskin
--------------
Mel Meskin
Vice President-Comptroller
Date: January 22, 1998
2
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
99.1 Press Release, dated January 21, 1998, issued by Bell Atlantic
Corporation.
99.2 Quarterly Bulletin issued by Bell Atlantic Corporation on January 21,
1998.
<PAGE>
Exhibit 99.1
NEWS RELEASE [Bell Atlantic Logo]
FOR IMMEDIATE RELEASE Contact:
January 21, 1998 David Frail
212-395-7726
[email protected]
BELL ATLANTIC ANNOUNCES THIRD CONSECUTIVE YEAR
OF DOUBLE-DIGIT EARNINGS GROWTH
- Adjusted 1997 EPS Up 10.5 Percent -
NEW YORK CITY -- Bell Atlantic Corp. (NYSE: BEL) today announced adjusted
earnings per share for 1997 of $4.96, 10.5 percent higher than 1996 EPS of
$4.49. Adjusted EPS for the fourth quarter was $1.25, up 6.8 percent compared to
$1.17 per share in the fourth quarter of 1996.
Fourth-quarter adjusted EPS excludes $.04 related to charges for an
enhanced pension offer, merger transition costs, and reserves for regulatory-
mandated refunds, which were partially offset by net gains on the sales of Bell
Atlantic's interests in Bellcore and Infostrada. Reported EPS for the quarter of
$1.21 compares to reported EPS of $.95 in the fourth quarter of 1996.
Adjusted EPS for the year of $4.96 excludes net charges totaling $1.80 per
share, primarily for special items recorded in the third quarter. Reported EPS
for 1997 was $3.16, compared to a reported $4.40 per share for 1996.
Adjusted net income for 1997 was $3.8 billion, 10.7 percent higher than
1996 net income of $3.5 billion. Adjusted fourth quarter 1997 net income of
$970.9 million increased 6.8 percent over fourth quarter 1996 net income of
$909.5 million.
Reported 1997 net income was $2.5 billion, compared to $3.4 billion in
1996. Reported fourth-quarter net income was $940.0 million, compared to $737.3
million in the fourth quarter of 1996.
"1997 was Bell Atlantic's third consecutive year of double-digit earnings
growth, with results for the full year as well as the quarter in line with
expectations," said Bell Atlantic Chairman and CEO Raymond W. Smith.
-more-
<PAGE>
Bell Atlantic New Release, page 2
"With strong demand for services in our regional marketplace and
exceptional performance in our wireless group, we were able to absorb more than
half a billion dollars in mandated rate reductions in the year and still
continue to grow and meet our 10 to 12 percent EPS target," Smith said. "At the
same time, our operating results include a full 70 to 80 cents per share of
dilution for checklist compliance costs and expenses for new business
development.
"With record growth in our global wireless portfolio, and the launch of
ventures such as FLAG, which connects Europe and Asia with an undersea fiber
cable, Bell Atlantic continues to expand its global communications capabilities
beyond its strong regional base."
Looking ahead, Ivan Seidenberg, Bell Atlantic vice chairman, president and
COO, said: "Like last year, 1998 will be a transition period, and our top
priority is to position ourselves for a growing global communications
marketplace while delivering on our double-digit earnings growth targets.
"I'm confident that capital, expense and revenue synergies, combined with
continued steady demand for communications services, will allow us to meet our
financial goals in 1998. Our successful merger integration, coupled with our
entry into significant markets for long distance, data and Internet services,
will accelerate growth as we move into 1999."
Adjusted revenues for the year increased 4.2 percent over 1996 to $30.5
billion, despite half a billion dollars in mandated state and Federal rate
reductions. In the fourth quarter, adjusted revenues increased 3.6 percent to
$7.7 billion, with approximately $180 million of the rate reductions occurring
in the quarter. Proportionate revenues, including Bell Atlantic's share of non-
consolidated wireless and international wireline businesses, rose 6.5 percent
for the year, and 7.9 percent in the fourth quarter.
Full-year adjusted expenses rose 2.6 percent over 1996, with fourth-quarter
adjusted expenses increasing 3.5 percent over the same period last year.
-more-
<PAGE>
Bell Atlantic New Release, page 3
DOMESTIC TELECOMMUNICATIONS HIGHLIGHTS
Continued strong growth in demand for communications services, as evidenced
in strong business volumes, combined with ongoing expense controls to offset the
impact of mandated price reductions. Full-year adjusted revenues from Bell
Atlantic's Telecom Group grew 2.8 percent compared to 1996. Fourth quarter
adjusted revenues, including the positive effect of 0.5 percent of a change in
timing of directory publications, increased 2.6 percent.
Strong demand growth was reflected in the following:
. Access lines in service grew 3.7 percent to approximately 39.7 million at
the end of the year, and demand for more bandwidth exploded. Bell
Atlantic ended the year with nearly 436,000 ISDN (Integrated Services
Digital Network) lines in service, up 35 percent from a year ago. With
ISDN channels counted as equivalent access lines, access lines grew 4.7
percent, and totaled 40.6 million.
. Access minutes of use grew 7.3 percent for the full year and 9.0 percent
for the fourth quarter.
In the residential market:
. As households continued to go online, the number of additional lines in
service rose more than 14 percent over last year, with the penetration
rate reaching 19 percent.
. Revenues from Home Voice Mail and central-office-based services such as
Caller ID, Return Call and Call Waiting were approximately $1.3 billion
for the year, up 17.5 percent compared with 1996. Caller ID revenues
grew nearly 50 percent, with the number of subscribers across the region
reaching nearly five million, for a penetration rate of more than 20
percent.
In business markets:
. The number of Centrex business lines increased 10.2 percent year-over-
year.
. Revenues from high-bandwidth switched and special access services rose 29
percent over 1996 levels.
. Bell Atlantic Network Integration (BANI) grew revenues 25 percent and
ended 1997 with $237 million, placing it among the nation's top 10
network integration companies in less than five years of operations.
-more-
<PAGE>
Bell Atlantic News Release, page 4
In wholesale markets:
. Bell Atlantic ended the year providing approximately 235,000 resold
access lines and 37,000 unbundled loops to other carriers, demonstrating
the company's commitments to opening markets.
Adjusted 1997 network operating expenses totaled $20.2 billion, 1.2 percent
higher than in 1996, and included almost $300 million for compliance with the
Telecommunications Act `checklist,' including local number portability, as well
as almost $200 million for investments in growth opportunities. Fourth quarter
adjusted operating expenses of $5.2 billion were 2.8 percent higher than in the
fourth quarter of 1996.
GLOBAL WIRELESS HIGHLIGHTS
Bell Atlantic Global Wireless, which covers 175 million worldwide POPs
(people in markets served), registered 35 percent proportionate subscriber
growth over the previous year, with international ventures contributing more
than 30 percent of new subscribers. On a proportionate basis, the portfolio
added more than 1.6 million subscribers, bringing the total to more than 6.3
million. Net customer additions in the fourth quarter totaled 519,000.
In domestic operations, Bell Atlantic Mobile (BAM) thrived in some of the
most competitive markets in the county. BAM grew subscribers by more than 20
percent, with operating income increasing 35.5 percent in the fourth quarter and
29.1 percent for the year. With aggressive deployment of CDMA equipment, BAM
closed 1997 with 75 percent of its markets covered by the advanced digital
technology. PrimeCo Personal Communications, Bell Atlantic's domestic PCS
partnership, ended the year with more than 387,000 customers, for a penetration
rate of 1.1 percent of covered POPs.
Domestic highlights include:
. BAM subscribers grew to 5.4 million, with 946,000 net additions in 1997,
292,000 of which came in the fourth quarter.
. BAM service revenues grew 15.8 percent for the quarter and 18 percent for
the full year.
. BAM produced record operating cash flow margins of 44 percent for the
quarter and 43 percent for the year.
. BAM decreased cash expense per subscriber in the quarter by 19 percent
and 14 percent for the full year.
. BAM increased penetration 1.6 percent over 1996, to 9.4 percent. The
churn rate decreased again, to 1.8 percent, compared to 1.9 percent in
the fourth quarter of 1996.
-more-
<PAGE>
Bell Atlantic News Release, page 5
. PrimeCo accelerated its growth, adding nearly double the number of
customers in the fourth quarter as it did in the third.
. PrimeCo also completed a substantial portion of its network buildout,
launching service in 12 cities during the year for a total of 28.
International highlights include:
. Omnitel Pronto Italia, Bell Atlantic's Italian consortium, ended 1997
with more than 2.4 million customers, nearly three and a half times the
number at the end of 1996, and turned EBITDA-positive in the second
quarter of the year.
. Grupo Iusacell, Mexico's only full-service wireless carrier, completed
its first year under Bell Atlantic management control with almost 400,000
subscribers, a 70 percent increase.
. EuroTel Praha and EuroTel Bratislava, Bell Atlantic's partnerships in the
Czech and Slovak republics, ended 1997 with more than 438,000
subscribers, a 122 percent increase over 1996.
. STET Hellas in Greece increased subscribers by 85 percent, ending 1997
with more than 390,000.
. Excelcomindo in Indonesia ended its first 15 months in operation on
December 31 with 133,000 customers.
INTERNATIONAL TELECOM HIGHLIGHTS
Bell Atlantic's International Telecom Group, which holds investments in
wireline partnerships and joint ventures in Europe and Asia, continued to make
progress in developing operations and focusing its portfolio.
FLAG (Fiberoptic Link Around the Globe), the world's longest undersea fiber
cable system, launched service in the fourth quarter and contributed $60.5
million in equity income to Bell Atlantic results, as FLAG recorded more than
$400 million in revenues, reflecting cumulative pre-sales since the beginning of
the project. Bell Atlantic owns approximately 38 percent of FLAG.
During the quarter, Bell Atlantic sold its 33 percent stake in Infostrada,
the Italian wireline venture, producing a post-tax gain of $47.0 million.
* * *
-more-
<PAGE>
Bell Atlantic New Release, page 6
Bell Atlantic -- formed through the merger of Bell Atlantic and NYNEX -- is at
the forefront of the new communications, information and entertainment industry.
With more than 40.5 million telephone access lines and more than six million
wireless customers worldwide, Bell Atlantic companies are premier providers of
advanced wireline voice and data services, market leaders in wireless services
and the world's largest publishers of directory information. Bell Atlantic
companies are also among the world's largest investors in high-growth global
communications markets, with operations and investments in 21 countries.
Additional information about Bell Atlantic is available through the Internet's
World Wide Web at www.bellatlantic.com.
NOTE: Earnings per share amounts provided in this release are basic earnings
per share, as defined by the recent Financial Accounting Standards Board rule,
SFAS No. 128. Reported fourth quarter 1997 diluted EPS was $1.19 and, after
adjustments, $1.23. Reported full-year 1997 diluted EPS was $3.13 per share,
and, after adjustments, $4.90. Diluted EPS amounts are calculated assuming that
all potential common shares, such as warrants and options, were outstanding
common shares during the reporting period.
NOTE: This press release contains statements about expected future events and
financial results that are forward-looking and subject to risks and
uncertainties. For those statements, we claim the protection of the safe harbor
for forward-looking statements contained in the Private Securities Litigation
Reform Act of 1995. Discussion of factors that may affect future results is
contained in our recent filings with the Securities and Exchange Commission.
###
-more-
<PAGE>
Bell Atlantic News Release, page 7
Bell Atlantic Corporation
Statements of Income
Three Months ended December 31, 1997 and 1996
(Unaudited)
(Dollars in millions, except per share amounts)
<TABLE>
<CAPTION>
3 mos. ended 12/31/97 3 mos. ended 12/31/96
Reported Adjusted Reported Adjusted
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Operating revenues
Local services $ 3,339.4 $ 3,339.4 $ 3,227.3 $ 3,227.3
Network access services 1,780.8 1,824.2 1,765.0 1,842.4
Long distance services 512.0 512.0 501.6 501.6
Ancillary services 482.7 481.6 469.6 469.6
Directory and information services 648.6 648.6 593.3 593.3
Wireless services 888.8 888.8 725.4 708.1
Other services 43.4 38.3 123.0 123.0
-----------------------------------------------------------------------------------------------------------------------------
Total operating revenues 7,695.7 7,732.9 7,405.2 7,465.3
-----------------------------------------------------------------------------------------------------------------------------
Operating expenses
Employee costs 2,090.3 2,027.5 2,111.6 2,011.4
Depreciation and amortization 1,405.3 1,407.2 1,351.2 1,332.7
Taxes other than income 354.5 354.1 367.6 367.6
Other operating expenses 2,231.5 2,155.2 2,108.8 2,031.1
-----------------------------------------------------------------------------------------------------------------------------
Total operating expenses 6,081.6 5,944.0 5,939.2 5,742.8
-----------------------------------------------------------------------------------------------------------------------------
Operating income 1,614.1 1,788.9 1,466.0 1,722.5
Income (loss) from unconsolidated
businesses 112.8 11.9 (37.7) (31.0)
Other income and (expense), net 16.2 12.3 (34.2) (24.3)
Interest expense 311.3 310.9 269.0 268.7
Provision for income taxes 491.8 531.3 387.8 489.0
-----------------------------------------------------------------------------------------------------------------------------
Income from continuing operations 940.0 970.9 737.3 909.5
Cumulative effect of change in accounting principle
Directory publishing, net of tax --- --- --- ---
-----------------------------------------------------------------------------------------------------------------------------
Net income $ 940.0 $ 970.9 $ 737.3 $ 909.5
-----------------------------------------------------------------------------------------------------------------------------
Net income per common share:
Basic $ 1.21 $ 1.25 $ 0.95 $ 1.17
Diluted $ 1.19 $ 1.23 $ 0.94 $ 1.17
</TABLE>
- more -
<PAGE>
Bell Atlantic News Release, page 8
Bell Atlantic Corporation
Statements of Income
Twelve Months ended December 31, 1997 and 1996
(Unaudited)
(Dollars in millions, except per share amounts)
<TABLE>
<CAPTION>
12 mos. ended 12/31/97 12 mos. ended 12/31/96
Reported Adjusted Reported Adjusted
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Operating revenues
Local services $ 13,113.2 $ 13,196.2 $ 12,559.1 $ 12,559.1
Network access services 7,158.6 7,338.1 7,112.6 7,245.0
Long distance services 2,190.1 2,190.1 2,373.6 2,373.6
Ancillary services 1,845.4 1,846.0 1,738.0 1,738.0
Directory and information services 2,298.0 2,298.0 2,224.3 2,224.3
Wireless services 3,328.5 3,328.5 2,713.6 2,651.0
Other services 260.1 260.1 434.0 434.0
- ------------------------------------------------------------------------------------------------------------------------------------
Total operating revenues 30,193.9 30,457.0 29,155.2 29,225.0
- ------------------------------------------------------------------------------------------------------------------------------------
Operating expenses
Employee costs 9,047.2 8,242.5 8,703.9 8,426.8
Depreciation and amortization 5,864.4 5,564.6 5,379.0 5,360.5
Taxes other than income 1,606.9 1,526.8 1,499.9 1,499.9
Other operating expenses 8,333.9 7,796.0 7,493.8 7,260.8
- ------------------------------------------------------------------------------------------------------------------------------------
Total operating expenses 24,852.4 23,129.9 23,076.6 22,548.0
- ------------------------------------------------------------------------------------------------------------------------------------
Operating income 5,341.5 7,327.1 6,078.6 6,677.0
Income (loss) from unconsolidated businesses (124.1) (45.3) 14.2 (45.4)
Other income and (expense), net (3.3) (8.4) (99.6) (87.8)
Interest expense 1,230.0 1,216.6 1,082.0 1,081.7
Provision for income taxes 1,529.2 2,210.0 1,782.3 1,987.9
- ------------------------------------------------------------------------------------------------------------------------------------
Income from continuing operations 2,454.9 3,846.8 3,128.9 3,474.2
Cumulative effect of change in accounting principle
Directory publishing, net of tax --- --- 273.1 ---
- ------------------------------------------------------------------------------------------------------------------------------------
Net income $ 2,454.9 $ 3,846.8 $ 3,402.0 $ 3,474.2
- ------------------------------------------------------------------------------------------------------------------------------------
Net income per common share:
Basic $ 3.16 $ 4.96 $ 4.40 $ 4.49
Diluted $ 3.13 $ 4.90 $ 4.36 $ 4.45
</TABLE>
<PAGE>
Exhibit 99.2
[LOGO OF BELL ATLANTIC APPEARS HERE]
----------
Quarterly
==============
bulletin
4th Quarter 1997 January 21, 1998
<PAGE>
BELL ATLANTIC CORPORATION 2
- ---------------------------------
CONSOLIDATED STATEMENTS OF INCOME
- ---------------------------------
<TABLE>
<CAPTION>
(Dollars in Millions, Except Per Share Amounts)
------------ -------------
3 Mos. Ended 3 Mos. Ended 12 Mos. Ended 12 Mos. Ended
Unaudited 12/31/97 12/31/96 % Change 12/31/97 12/31/96 % Change
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operating Revenues
Local services $ 3,339.4 $ 3,227.3 3.5 $13,113.2 $12,559.1 4.4
Network access services 1,780.8 1,765.0 0.9 7,158.6 7,112.6 0.6
Long distance services 512.0 501.6 2.1 2,190.1 2,373.6 (7.7)
Ancillary services 482.7 469.6 2.8 1,845.4 1,738.0 6.2
Directory and information services 648.6 593.3 9.3 2,298.0 2,224.3 3.3
Wireless services 888.8 725.4 22.5 3,328.5 2,713.6 22.7
Other services 43.4 123.0 (64.7) 260.1 434.0 (40.1)
------------------------------------------------------------------------------
Total Operating Revenues 7,695.7 7,405.2 3.9 30,193.9 29,155.2 3.6
------------------------------------------------------------------------------
Operating Expenses
Employee costs 2,090.3 2,111.6 (1.0) 9,047.2 8,703.9 3.9
Depreciation and amortization 1,405.3 1,351.2 4.0 5,864.4 5,379.0 9.0
Taxes other than income 354.5 367.6 (3.6) 1,606.9 1,499.9 7.1
Other operating expenses 2,231.5 2,108.8 5.8 8,333.9 7,493.8 11.2
------------------------------------------------------------------------------
Total Operating Expenses 6,081.6 5,939.2 2.4 24,852.4 23,076.6 7.7
------------------------------------------------------------------------------
Operating Income 1,614.1 1,466.0 10.1 5,341.5 6,078.6 (12.1)
Income (loss) from unconsolidated businesses 112.8 (37.7) - (124.1) 14.2 -
Other income and (expense), net 16.2 (34.2) - (3.3) (99.6) -
Interest expense 311.3 269.0 15.7 1,230.0 1,082.0 13.7
Provision for income taxes 491.8 387.8 26.8 1,529.2 1,782.3 (14.2)
------------------------------------------------------------------------------
Income from Continuing Operations 940.0 737.3 27.5 2,454.9 3,128.9 (21.5)
Cumulative effect of change in
accounting principle
Directory publishing, net of tax 273.1
------------------------------------------------------------------------------
Net Income $ 940.0 $ 737.3 27.5 $ 2,454.9 $ 3,402.0 (27.8)
==============================================================================
Basic Earnings per Share $ 1.21 $ .95 27.4 $ 3.16 $ 4.40 (28.2)
Weighted average number of common shares
outstanding (in millions) 776.4 775.6 775.9 773.3
Diluted Earnings per Share $ 1.19 $ .94 26.6 $ 3.13 $ 4.36 (28.2)
Weighted average number of common shares
outstanding-assuming dilution (in millions) 789.3 780.4 785.5 780.1
</TABLE>
Note:
Basic Earnings per Share are calculated by dividing reported net income by the
weighted average number of common shares outstanding during the period.
Diluted Earnings per Share are calculated based on the assumption that potential
common shares, such as warrants and options were also outstanding during the
reporting period.
<PAGE>
BELL ATLANTIC CORPORATION 3
- ------------------------
EARNINGS RECONCILIATIONS
- ------------------------
<TABLE>
<CAPTION>
(Dollars in Millions, Except Per Share Amounts)
--------------------------------
3 Mos. Ended 12/31/97 3 Mos. Ended 12/31/96
Unaudited Net Income Basic EPS Net Income Basic EPS
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Reported Earnings $ 940.0 $ 1.21 $ 737.3 $ .95
Adjustments:
Transition costs 46.7 .06
Regulatory, legal and other 24.5 .03 56.1 .07
Special pension enhancement 38.4 .05 36.8 .05
Benefit plan amendment 25.6 .03
Disposition (gains) and losses (78.7) (.10) 53.7 .07
------------------------------------------------------------------
Adjusted Earnings $ 970.9 $ 1.25 $ 909.5 $ 1.17
==================================================================
Adjusted Growth 6.8% 6.8%
<CAPTION>
(Dollars in Millions, Except Per Share Amounts)
--------------------------------
12 Mos. Ended 12/31/97 12 Mos. Ended 12/31/96
Unaudited Net Income Basic EPS Net Income Basic EPS
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Reported Earnings $ 2,454.9 $ 3.16 $ 3,402.0 $ 4.40
Adjustments:
Merger-related costs
Direct costs 182.0 .23
Employee severance costs 139.5 .18
Transition costs 59.7 .08
Special charges
Fixed assets and real estate 221.0 .29
Video-related 196.3 .25
Regulatory, legal and other 244.0 .31 164.4 .21
Miscellaneous items 111.4 .14
Other one-time items
Special pension enhancement 324.5 .42 147.3 .19
Benefit plan amendment 25.6 .03
CWC restructuring 59.3 .08
Disposition (gains) and losses (110.2) (.14) 8.0 .01
Tax-related issues (35.6) (.04)
Change in accounting principle (273.1) (.35)
------------------------------------------------------------------
Adjusted Earnings $ 3,846.8 $ 4.96 $ 3,474.2 $ 4.49
==================================================================
Adjusted Growth 10.7% 10.5%
</TABLE>
<PAGE>
BELL ATLANTIC CORPORATION 4
- ------------------------------------------------------------
CONSOLIDATED ADJUSTED STATEMENTS OF INCOME -- FOURTH QUARTER
- ------------------------------------------------------------
<TABLE>
<CAPTION>
(Dollars in Millions, Except Per Share Amounts)
3 Mos. Ended 12/31/97 3 Mos. Ended 12/31/96
Unaudited Reported Adjustments Adjusted Reported Adjustments Adjusted % Change
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues
Local services $3,339.4 $ $3,339.4 $3,227.3 $ $3,227.3 3.5
Network access services 1,780.8 43.4 (1) 1,824.2 1,765.0 77.4 (12) 1,842.4 (1.0)
Long distance services 512.0 512.0 501.6 501.6 2.1
Ancillary services 482.7 (1.1)(2) 481.6 469.6 469.6 2.6
Directory and information services 648.6 648.6 593.3 593.3 9.3
Wireless services 888.8 888.8 725.4 (17.3)(13) 708.1 25.5
Other services 43.4 (5.1)(3) 38.3 123.0 123.0 (68.9)
-------------------------------------------------------------------------------------------
Total Operating Revenues 7,695.7 37.2 7,732.9 7,405.2 60.1 7,465.3 3.6
-------------------------------------------------------------------------------------------
Operating Expenses
Employee costs 2,090.3 (62.8)(4) 2,027.5 2,111.6 (100.2)(14) 2,011.4 0.8
Depreciation and amortization 1,405.3 1.9 (5) 1,407.2 1,351.2 (18.5)(15) 1,332.7 5.6
Taxes other than income 354.5 (0.4)(6) 354.1 367.6 367.6 (3.7)
Other operating expenses 2,231.5 (76.3)(7) 2,155.2 2,108.8 (77.7)(16) 2,031.1 6.1
-------------------------------------------------------------------------------------------
Total Operating Expenses 6,081.6 (137.6) 5,944.0 5,939.2 (196.4) 5,742.8 3.5
-------------------------------------------------------------------------------------------
Operating Income 1,614.1 174.8 1,788.9 1,466.0 256.5 1,722.5 3.9
Income (loss) from unconsolidated
businesses 112.8 (100.9)(8) 11.9 (37.7) 6.7 (17) (31.0) --
Other income and (expense), net 16.2 (3.9)(9) 12.3 (34.2) 9.9 (18) (24.3) --
Interest expense 311.3 (0.4)(10) 310.9 269.0 (0.3)(19) 268.7 15.7
Provision for income taxes 491.8 39.5 (11) 531.3 387.8 101.2 (20) 489.0 8.7
-------------------------------------------------------------------------------------------
Net Income $ 940.0 $ 30.9 $ 970.9 $ 737.3 $ 172.2 $ 909.5 6.8
===========================================================================================
Basic Earnings per Share $ 1.21 $ .04 $ 1.25 $ .95 $ .22 $ 1.17 6.8
===========================================================================================
Weighted average number of common
shares outstanding (in millions) 776.4 776.4 775.6 775.6
</TABLE>
Footnotes:
1997
(1) Adjustment related to regulatory issues ($38.3) and
transition issues ($5.1)
(2) Adjustment related to transition issues
(3) Adjustment related to transition issues
(4) Adjustment for special pension enhancement ($60.0) and
transition costs ($2.8)
(5) Adjustment related to transition costs ($1.9)
(6) Adjustment for transition costs ($0.4)
(7) Adjustment for transition costs ($76.3)
(8) Adjustment on pre-tax gains on the sale of Infostrada ($54.3) and
Bellcore ($46.4) and transition issues ($0.2)
(9) Adjustment for transition issues ($3.9)
(10) Adjustment related to regulatory issues ($0.4)
(11) Tax effects of items (1)-(10) above
1996
(12) Adjustment related to regulatory issues
(13) Adjustment related to accounting reclass for BAM promotions
(14) Adjustment related to special pension enhancement ($58.9) and benefit plan
amendment ($41.3)
(15) Adjustment related to dispositions
(16) Adjustment related to dispositions ($47.4), accounting reclass for BAM
promotions ($17.3) and costs for regulatory and other issues ($13.0)
(17) Adjustment related to dispositions
(18) Adjustment related to dispositions
(19) Adjustment related to dispositions
(20) Tax effect of items (12)-(19) above
<PAGE>
BELL ATLANTIC CORPORATION 5
- ----------------------------------------------------------
CONSOLIDATED ADJUSTED STATEMENTS OF INCOME -- YEAR-TO-DATE
- ----------------------------------------------------------
<TABLE>
<CAPTION>
(Dollars in Millions, Except Per Share Amounts)
12 Mos. Ended 12/31/97 12 Mos. Ended 12/31/96
Unaudited Reported Adjustments Adjusted Reported Adjustments Adjusted % Change
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues
Local services $13,113.2 $ 83.0 (1) $13,196.2 $12,559.1 $ $ 12,559.1 5.1
Network access services 7,158.6 179.5 (2) 7,338.1 7,112.6 132.4 (12) 7,245.0 1.3
Long distance services 2,190.1 2,190.1 2,373.6 2,373.6 (7.7)
Ancillary services 1,845.4 0.6 (3) 1,846.0 1,738.0 1,738.0 6.2
Directory and information services 2,298.0 2,298.0 2,224.3 2,224.3 3.3
Wireless services 3,328.5 3,328.5 2,713.6 (62.6)(13) 2,651.0 25.6
Other services 260.1 260.1 434.0 434.0 (40.1)
----------------------------------------------------------------------------------------
Total Operating Revenues 30,193.9 263.1 30,457.0 29,155.2 69.8 29,225.0 4.2
----------------------------------------------------------------------------------------
Operating Expenses
Employee costs 9,047.2 (804.7)(4) 8,242.5 8,703.9 (277.1)(14) 8,426.8 (2.2)
Depreciation and amortization 5,864.4 (299.8)(5) 5,564.6 5,379.0 (18.5)(15) 5,360.5 3.8
Taxes other than income 1,606.9 (80.1)(6) 1,526.8 1,499.9 1,499.9 1.8
Other operating expenses 8,333.9 (537.9)(7) 7,796.0 7,493.8 (233.0)(16) 7,260.8 7.4
----------------------------------------------------------------------------------------
Total Operating Expenses 24,852.4 (1,722.5) 23,129.9 23,076.6 (528.6) 22,548.0 2.6
----------------------------------------------------------------------------------------
Operating Income 5,341.5 1,985.6 7,327.1 6,078.6 598.4 6,677.0 9.7
Income (loss) from unconsolidated businesses (124.1) 78.8 (8) (45.3) 14.2 (59.6)(17) (45.4) 0.2
Other income and (expense), net (3.3) (5.1)(9) (8.4) (99.6) 11.8 (18) (87.8) -
Interest expense 1,230.0 (13.4)(10) 1,216.6 1,082.0 (0.3)(19) 1,081.7 12.5
Provision for income taxes 1,529.2 680.8 (11) 2,210.0 1,782.3 205.6 (20) 1,987.9 11.2
----------------------------------------------------------------------------------------
Income from Continuing Operations 2,454.9 1,391.9 3,846.8 3,128.9 345.3 3,474.2 10.7
Cumulative effect of change in
accounting principle
Directory publishing, net of tax 273.1 (273.1)(21) -
----------------------------------------------------------------------------------------
Net Income $2,454.9 $ 1,391.9 $ 3,846.8 $3,402.0 $ 72.2 $3,474.2 10.7
========================================================================================
Basic Earnings per Share $ 3.16 $ 1.80 $ 4.96 $ 4.40 $ .09 $ 4.49 10.5
========================================================================================
Weighted average number of common
shares outstanding (in millions) 775.9 775.9 773.3 773.3
</TABLE>
Footnotes:
1997
(1) Restated for reclass adjustment
(2) Adjustment related to regulatory issues ($174.4) and transition
issues ($5.1)
(3) Adjustment for miscellaneous items ($1.7), partially offset by transition
issues ($1.1)
(4) Adjustment for merger-related costs ($279.9), special pension enhancement
($513.1) and video-related charges ($11.7)
(5) Adjustment related to fixed asset write-downs ($297.2), miscellaneous items
($4.5), partially offset by transition issues ($1.9)
(6) Adjustment for merger-related costs ($25.0), other contingencies ($54.7)
and transition costs ($0.4)
(7) Adjustment for merger-related costs ($217.6), special charges for real
estate consolidations ($54.9), video-related ($69.3), regulatory, legal and
other ($126.2), miscellaneous items ($165.9) and an increase for a
reclass adjustment ($96.0)
(8) Adjustment for CWC restructuring ($59.3), video-related charges ($161.8),
partially offset by pre-tax gains on the sales of Sky TV ($41.4),
Infostrada ($54.3) and Bellcore ($46.4) and transition issues ($0.2)
(9) Adjustment for miscellaneous items ($1.2) and transition issues ($3.9)
(10) Restated for reclass adjustment ($13.0) and regulatory issues ($0.4)
(11) Tax effects on items (1)-(10) above ($673.3), miscellaneous items ($28.1)
and a net benefit for tax-related issues ($35.6)
1996
(12) Adjustment related to regulatory issues
(13) Adjustment related to an accounting reclass for BAM promotions
(14) Adjustment for special pension enhancement ($235.8) and benefit plan
amendment ($41.3)
(15) Adjustment related to dispositions
(16) Adjustment for regulatory and other issues ($123.0), accounting reclass for
BAM promotions ($62.6) and dispositions ($47.4)
(17) Adjustment related to pre-tax gain on Vanstar disposition ($66.3) and
charges related to dispositions ($6.7)
(18) Adjustment for regulatory, legal and other issues ($1.9) and
dispositions ($9.9)
(19) Adjustment related to dispositions
(20) Tax effects of items (12)-(19) above
(21) Adjustment for change in accounting principle
<PAGE>
BELL ATLANTIC CORPORATION 6
- -------------------------------------------
SELECTED FINANCIAL AND OPERATING STATISTICS
- -------------------------------------------
(Dollars in Millions, Except Per Share Amounts)
<TABLE>
<CAPTION>
3 Mos. Ended 3 Mos. Ended 12 Mos. Ended 12 Mos. Ended
Unaudited 12/31/97 12/31/96 12/31/97 12/31/96
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Debt ratio-end of period 60.5% 58.3%
Return on average common equity-adjusted basis 27.6% 28.1% 29.2% 29.3%
Book value per common share-end of period $ 16.47 $ 16.73
Cash dividends declared per common share (1) $ .77 $ .72 $ 3.02 $ 2.88
Common shares outstanding
Weighted average 776.4 775.6 775.9 773.3
Weighted average-assuming dilution 789.3 780.4 785.5 780.1
End of period 776.5 775.7
Capital expenditures
Telecom $ 1,489 $ 1,736 $ 5,523 $ 4,928
Domestic cellular 251 330 915 935
Other 15 178 200 530
------------------------------------------------------------
Total $ 1,755 $ 2,244 $ 6,638 $ 6,393
Employees
Telecom 131,310 127,296
Other 9,779 9,959
---------------------------
Total 141,089 137,255
</TABLE>
Footnote:
(1) Cash dividends declared per common share represent the historical dividends
of Bell Atlantic Corporation. Cash dividends declared in the 12 months
ended 12/31/96 include a payment of $.005 per common share for redemption
of all rights granted under our Shareholder Rights Plan.
<PAGE>
BELL ATLANTIC CORPORATION 7
- ---------------------------
CONSOLIDATED BALANCE SHEETS
- ---------------------------
<TABLE>
<CAPTION>
(Dollars in Millions, Except Per Share Amounts)
----------
Unaudited 12/31/97 12/31/96 $ Change
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Current assets
Cash and cash equivalents $ 322.8 $ 249.4 $ 73.4
Short-term investments 720.6 300.5 420.1
Accounts receivable, net 6,340.8 6,168.9 171.9
Inventories 550.3 478.4 71.9
Prepaid expenses 634.0 716.3 (82.3)
Other 432.3 543.3 (111.0)
-------------------------------------
Total current assets 9,000.8 8,456.8 544.0
-------------------------------------
Plant, property and equipment 77,437.2 75,679.5 1,757.7
Less accumulated depreciation 42,397.8 39,544.7 2,853.1
-------------------------------------
35,039.4 36,134.8 (1,095.4)
-------------------------------------
Investments in unconsolidated businesses 5,144.2 4,922.2 222.0
Other assets 4,779.7 3,847.3 932.4
-------------------------------------
Total Assets $ 53,964.1 $ 53,361.1 $ 603.0
=====================================
Liabilities and Shareowners' Investment
Current liabilities
Debt maturing within one year $ 6,342.8 $ 2,884.2 $ 3,458.6
Accounts payable and accrued liabilities 5,966.4 6,160.6 (194.2)
Other 1,355.0 1,305.1 49.9
-------------------------------------
Total current liabilities 13,664.2 10,349.9 3,314.3
-------------------------------------
Long-term debt 13,265.2 15,286.0 (2,020.8)
-------------------------------------
Employee benefit obligations 10,004.4 9,588.0 416.4
-------------------------------------
Deferred credits and other liabilities
Deferred income taxes 2,106.2 1,846.9 259.3
Unamortized investment tax credits 250.7 288.8 (38.1)
Other 772.6 865.9 (93.3)
-------------------------------------
3,129.5 3,001.6 127.9
-------------------------------------
Minority interest, including a portion
subject to redemption requirements 911.2 2,014.2 (1,103.0)
-------------------------------------
Preferred stock of subsidiary 200.5 145.0 55.5
-------------------------------------
Shareowners' investment
Common stock 78.8 78.7 0.1
Contributed capital 13,184.5 13,295.0 (110.5)
Reinvested earnings 1,332.8 1,279.8 53.0
Foreign currency translation adjustment (553.4) (319.4) (234.0)
-------------------------------------
14,042.7 14,334.1 (291.4)
Less common stock in treasury, at cost 590.5 589.3 1.2
Less deferred compensation-employee stock
ownership plans 663.1 768.4 (105.3)
-------------------------------------
Total shareowners' investment 12,789.1 12,976.4 (187.3)
-------------------------------------
Total Liabilities and Shareowners'
Investment $ 53,964.1 $ 53,361.1 $ 603.0
=====================================
</TABLE>
<PAGE>
BELL ATLANTIC CORPORATION 8
- -------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
- -------------------------------------
<TABLE>
<CAPTION>
(Dollars in Millions)
-------------
12 Mos. Ended 12 Mos. Ended
Unaudited 12/31/97 12/31/96 $ Change
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash Flows from Operating Activities
Net Income $ 2,454.9 $ 3,402.0 $ (947.1)
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 5,864.4 5,379.0 485.4
Cumulative effect of change in
accounting principle, net of
tax - (273.1) 273.1
(Income)/loss from unconsolidated
businesses 124.1 (14.2) 138.3
Dividends received from
unconsolidated businesses 192.1 194.8 (2.7)
Amortization of unearned lease
income (110.3) (100.6) (9.7)
Other items, net 216.0 112.6 103.4
Changes in certain assets and
liabilities, net of effects from
acquisition/disposition of businesses 117.5 80.3 37.2
--------------------------------------
Net cash provided by operating activities 8,858.7 8,780.8 77.9
--------------------------------------
Cash Flows from Investing Activities
Net change in short-term investments (416.7) (285.6) (131.1)
Additions to plant, property and
equipment (6,637.7) (6,394.7) (243.0)
Proceeds from sale of plant, property
and equipment 5.5 15.4 (9.9)
Investment in leased assets (161.6) (201.3) 39.7
Proceeds from leasing activities 83.0 99.9 (16.9)
Proceeds from notes receivable 63.1 213.3 (150.2)
Acquisition of businesses, less cash
acquired (61.8) (10.0) (51.8)
Investments in unconsolidated businesses (833.0) (1,071.2) 238.2
Proceeds from Telecom Corp NZ capital
repurchase plan 153.3 - 153.3
Proceeds from disposition of businesses 546.5 127.8 418.7
Other, net (53.3) (67.6) 14.3
--------------------------------------
Net cash used in investing activities (7,312.7) (7,574.0) 261.3
--------------------------------------
Cash Flows from Financing Activities
Proceeds from borrowings 633.0 109.4 523.6
Principal repayments of borrowings and
capital lease obligations (901.4) (375.8) (525.6)
Net change in short-term borrowings with
original maturities of three months or
less 1,580.3 77.1 1,503.2
Dividends paid (2,366.3) (2,204.1) (162.2)
Proceeds from sale of common stock 710.7 328.3 382.4
Purchase of common stock for treasury (919.8) (118.3) (801.5)
Minority interest (.1) 687.8 (687.9)
Net change in outstanding checks drawn
on controlled disbursement accounts (264.5) 75.3 (339.8)
Proceeds from sale of preferred stock by
subsidiary 65.5 - 65.5
Reduction in preferred stock of
subsidiary (10.0) - (10.0)
--------------------------------------
Net cash used in financing activities (1,472.6) (1,420.3) (52.3)
--------------------------------------
Increase (decrease) in cash and cash
equivalents 73.4 (213.5) 286.9
Cash and cash equivalents, beginning of
year 249.4 462.9 (213.5)
--------------------------------------
Cash and cash equivalents, end of year $ 322.8 $ 249.4 $ 73.4
======================================
</TABLE>
<PAGE>
BELL ATLANTIC CORPORATION 9
- -----------------------------
REVENUE CATEGORY DESCRIPTIONS
- -----------------------------
Local Services
Includes revenues from the provision of local exchange, private line, and public
phone services. Also includes revenues from value-added central-office services
such as Caller ID, Call Waiting, Return Call, and a number of other call
management features.
Network Access Services
Includes interstate and intrastate revenues from other carriers for their use of
our local exchange facilities in the provision of both local exchange and long
distance services to their customers. Also includes revenues received from end-
user subscribers.
Long Distance Services
Includes revenues from intraLATA toll services (calls made from outside a
customer's local calling area, but within the same area served by our operating
telephone subsidiaries). Also includes revenues from the provision of
interexchange (long distance) services outside of our region. This category will
include revenues from long distance services once we are allowed to provide
these services within our region.
Ancillary Services
Includes revenues from a number of services including voice messaging, ISDN and
other high bandwidth services, billing and collection, rent, and systems
integration.
Directory and Information Services
Includes revenues from advertising and marketing services provided by our White
and Yellow Page directories within our region, international directory services,
and electronic directories on the Internet through Big Yellow(SM). Also includes
revenues from our Internet services business.
Wireless Services
Includes revenues from our consolidated wireless subsidiaries, which include
Bell Atlantic Mobile, our wholly-owned domestic unit, and Grupo Iusacell in
Mexico, where we have management control. Also includes revenues from wireless
consulting services.
Other Services
Includes revenues from all other sources not included above, such as our leasing
business and telecommunications consulting.
- -------------------
SECTOR DESCRIPTIONS
- -------------------
Telecom
A group of subsidiaries consisting of our nine operating telephone companies and
a centralized services and support staff, our directory and information services
companies, our systems integration company, our long distance company, and a
number of other companies providing telecom-related services.
Global Wireless
A portfolio of domestic and international wireless companies consisting of a
wholly-owned subsidiary and others with various equity ownership stakes,
Domestically, our portfolio includes Bell Atlantic Mobile (wholly-owned) and
PrimeCo Personal Communications (50%). Internationally, our wireless investments
include Group Iusacell in Mexico (42%), Omnitel Pronto Italia in Italy (17.4%),
EuroTel in the Czech Republic and Slovakia (24.5%), STET Hellas in Greece (20%),
and Excelcomindo in Indonesia (23.1%).
International Telecom
A portfolio of investments, principally related to telecommunications. These
investments include equity ownership stakes in publicly-traded companies such as
Telecom Corporation of New Zealand (24.9%), Cable and Wireless Communications
(18.5%), and TelecomAsia (18.2%). In addition, we are the managing sponsor of
FLAG (Fiberoptic Link Around the Globe) with a 39% equity stake, and own 20% of
BayanTel in the Philippines.
<PAGE>
BELL ATLANTIC CORPORATION 10
- -------------------------------------------
TELECOM SECTOR - ADJUSTED FINANCIAL RESULTS
- -------------------------------------------
<TABLE>
<CAPTION>
(Dollars in Millions)
--------------- ----------------
3 Mos. Ended 3 Mos. Ended 12 Mos. Ended 12 Mos. Ended
Unaudited 12/31/97 12/31/96 % Change 12/31/97 12/31/96 % Change
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operating Revenues
Local services $ 3,354.3 $ 3,242.6 3.4 $13,250.5 $12,622.2 5.0
Network access services 1,824.2 1,842.7 (1.0) 7,338.4 7,245.5 1.3
Long distance services 512.1 501.7 2.1 2,190.2 2,373.8 (7.7)
Ancillary services 493.7 478.3 3.2 1,894.8 1,783.3 6.3
Directory and information services 648.6 593.3 9.3 2,298.0 2,224.3 3.3
--------------------------------------------------------------------------------------
Total Operating Revenues 6,832.9 6,658.6 2.6 26,971.9 26,249.1 2.8
--------------------------------------------------------------------------------------
Operating Expenses
Employee costs 1,864.0 1,872.3 (0.4) 7,650.5 7,891.7 (3.1)
Depreciation and amortization 1,297.3 1,230.7 5.4 5,028.9 4,945.2 1.7
Taxes other than income 333.0 348.2 (4.4) 1,435.5 1,423.4 0.9
Other operating expenses 1,687.6 1,589.5 6.2 6,093.0 5,701.9 6.9
--------------------------------------------------------------------------------------
Total Operating Expenses 5,181.9 5,040.7 2.8 20,207.9 19,962.2 1.2
--------------------------------------------------------------------------------------
Operating Income $ 1,651.0 $ 1,617.9 2.0 $ 6,764.0 $ 6,286.9 7.6
--------------------------------------------------------------------------------------
Operating Income Margin 24.2% 24.3% 25.1% 24.0%
Operating Cash Flow $ 2,948.3 $ 2,848.6 3.5 $11,792.9 $11,232.1 5.0
--------------------------------------------------------------------------------------
Operating Cash Flow Margin 43.1% 42.8% 43.7% 42.8%
Operating Statistics
Access lines in service (in thousands) 39,714 38,280 3.7
Residence 25,291 24,496 3.2
Business 13,967 13,325 4.8
Public 456 458 (0.4)
ISDN-BRI lines 436 323 35.0
Access minutes of use (in millions) 41,704 38,276 9.0 160,477 149,514 7.3
Employees per 10,000 access lines (1) 30.6 30.9 (1.0)
</TABLE>
Footnote:
(1) Calculated based on employees of telephone operations only
<PAGE>
BELL ATLANTIC CORPORATION 11
- --------------------------------------------------------
GLOBAL WIRELESS SECTOR - QUARTERLY PROPORTIONATE RESULTS
- --------------------------------------------------------
<TABLE>
<CAPTION>
(Dollars in Millions)
------------ -------------
3 Mos. Ended 3 Mos. Ended 12 Mos. Ended 12 Mos. Ended
Unaudited 12/31/97 12/31/96 % Change 12/31/97 12/31/96 % Change
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Combined Global Wireless
Subscribers (000) 6,346 4,703 34.9
Subscriber net adds in period (000) 519 416 24.8 1,601 1,211 32.2
POPs (000) 175,674 172,817 1.7
Bell Atlantic Mobile
Selected Financial Results
Operating revenues (1) $ 755.1 $ 652.3 15.8 $ 2,858.5 $ 2,439.3 17.2
Less: equipment revenues 40.0 34.7 15.3 134.9 131.5 2.6
-----------------------------------------------------------------------------------
Service revenues 715.1 617.6 15.8 2,723.6 2,307.8 18.0
-----------------------------------------------------------------------------------
Operating income 204.4 150.8 35.5 740.0 573.0 29.1
Operating cash flow (2) $ 314.7 $ 220.2 42.9 $ 1,158.7 $ 873.7 32.6
Operating cash flow margin (3) 44% 36% 43% 38%
Capital expenditures, excluding acquisitions $ 251.1 $ 330.2 (24.0) $ 915.0 $ 935.4 (2.2)
Selected Operating Data
Subscribers (000) 5,356 4,410 21.4
Penetration (4) 9.4% 7.8%
Subscriber net adds in period (000) 292 356 (18.0) 946 1,052 (10.1)
Controlled POPs (000) (5) 56,987 56,830 0.3
Owned POPs (000) (6) 55,101 55,021 0.1
Churn rate 1.8% 1.9% 1.7% 1.8%
Total revenue per subscriber (7) $ 52.89 $ 56.37 (6.2) $ 53.19 $ 57.76 (7.9)
Service revenue per subscriber $ 46.07 $ 49.26 (6.5) $ 46.73 $ 50.34 (7.2)
Cash expense per subscriber $ 25.80 $ 31.69 (18.6) $ 26.85 $ 31.27 (14.1)
Acquisition cost per subscriber (8) $ 217 $ 225 (3.6) $ 222 $ 220 0.9
PrimeCo Personal Communications
Subscribers (000) 181 18 -
Subscriber net adds in period (000) 59 18 - 163 18 -
POPs (000) 28,487 28,487
International Wireless Operations (9)
Subscribers (000) 810 275 -
Subscriber net adds in period (000) 169 42 - 493 141 -
POPs (000) 90,200 87,500 3.1
Operating revenues $ 140.5 $ 77.3 81.8 $ 463.5 $ 241.8 91.7
Operating income (loss) $ 16.7 $ (11.8) - $ 25.3 $ (36.7) -
Operating cash flow $ 29.1 $ 7.2 - $ 89.1 $ 22.4 -
</TABLE>
Footnotes:
Proportionate results reflect the relative weight of the Company's
ownership interests in its domestic and international wireless investments.
Bell Atlantic Mobile results reflect consolidated results for all
controlled markets.
(1) Operating revenues include service revenues, outcollect roaming, and
equipment revenues
(2) Operating cash flow equals operating income plus depreciation and
amortization
(3) Operating cash flow margin is calculated by dividing operating cash flow by
service revenues
(4) Penetration is calculated by dividing subscribers by controlled POPs
(5) Controlled POPs represent the total number of POPs for which Bell Atlantic
Mobile has operating control
(6) Owned POPs represent Bell Atlantic Mobile percentage ownership in all
licensed markets
(7) Revenue per subscriber is calculated using operating revenues and incollect
roaming revenues. Incollect roaming revenues were $65.8 and $241.5 for the
three and twelve month periods ended 12/31/97, respectively, and $54.4 and
$208.8 for the three and twelve month periods ended 12/31/96, respectively
(8) Acquisition cost per subscriber includes commissions and loss on handsets
(9) Represents Bell Atlantic's proportionate share of International wireless
investments including consolidated, equity method, and cost basis
investments
<PAGE>
BELL ATLANTIC CORPORATION 12
- ----------------------------
INVESTOR CONTACT INFORMATION
- ----------------------------
Peter D. Crawford, CFA
Vice President - Investor Relations and Shareowner Services
Primary contact for institutional investors and sell-side analysts
215 963-6123 212 395-1955
Dominic Di Bucci, CFA
Director - Investor Relations
Contact for institutional investors and
sell-side analysts
215 963-6097 212 395-1924
Kevin R. Tarrant, CPA
Director - Investor Communications
Responsible for print and electronic investor communications
215 963-6243 212 395-1868
Kerry I. Higgins, CPA
Manager
215 963-6122 212 395-1930
Diane Kozik
Manager
212 395-1932
Mailing Address
We will be moving to our New York headquarters location during the first quarter
of 1998. Until such time, we will be located in our Philadelphia office.
Investor Relations
1717 Arch Street
31st Floor West
Philadelphia, PA 19103
Investor Relations
1095 Avenue of the Americas
36th Floor
New York, New York 10036
Fax
215 963-6470 (Philadelphia)
212 921-2917 (New York)
Fax on demand
800 329-7310
Transfer Agent and Registrar
For information about your stock account or shareowner services such as dividend
reinvestment or the direct deposit of dividends, contact our transfer agent:
Boston EquiServe
P.O. Box 8038
Boston, MA 02266-8038
Phone 800-631-2355
Outside the U.S. 617-575-3994
(collect)
TDD 800-829-8259
E-mail shareholder-equiserve
@equiserve.com
Shareowner Newsline
800 BEL-5595
World Wide Web
www.bellatlantic.com/invest
The new Bell Atlantic-formed through the merger of Bell Atlantic and NYNEX-is
at the forefront of the new communications, information and entertainment
industry. With 40 million telephone access lines and 5.8 million wireless
customers worldwide, Bell Atlantic companies are premier providers of advanced
wireline voice and data services, market leaders in wireless services and the
world's largest publishers of directory information. Bell Atlantic companies are
also among the world's largest investors in high-growth global communications
markets, with operations and investments in 21 countries.
[LOGO OF BELL ATLANTIC APPEARS HERE]
