FOR MORE INFORMATION FOR IMMEDIATE RELEASE
Pattie Kushner (404-249-2365) October 19, 2000
Jeff Battcher (404-713-0274)
BellSouth Third Quarter EPS Increases 10%
Domestic and International Wireless Continue Strong Performance;
DSL Customer Base Grows More Than 80 Percent During Quarter
ATLANTA - BellSouth Corporation (NYSE: BLS) reported third quarter earnings per
share (EPS) of 55 cents, including a two-cent reduction related to its newly
acquired wireless properties in Colombia. Third quarter EPS increased 10 percent
compared to 50 cents before special items in the third quarter of 1999.
Consolidated revenues were $6.9 billion, a gain of 7.5 percent compared to the
same period of the previous year. Strong growth in data revenues represented
more than 40 percent of consolidated revenue growth, highlighting BellSouth's
continuing shift not only to digital broadband services and e-commerce
applications for business customers but also to wireless and international. In
addition, BellSouth's DSL customer base increased more than 80 percent during
the third quarter.
"We're leveraging our existing network assets to create a sophisticated new
platform for data, Internet services and e-business," said Duane Ackerman,
chairman and chief executive officer. "In telecom's other high growth area, the
debut of Cingular Wireless, the new company we formed with SBC Communications to
deliver national wireless data and voice services, opens up lots of new markets
and unlocks significant value for our investors."
DSL, Data, Internet, E>Commerce
At the end of September, BellSouth had 134,000 customers for DSL and other
high-speed access products, compared to 74,000 at the end of June, a quarterly
gain of 81.1 percent. With this acceleration in customer growth, BellSouth is
confident it will have 200,000 high-speed customers by year end 2000.
Equivalent access lines, which include broadband data services as well as
traditional switched lines, grew at a record annual rate of 25.3 percent in the
three months ended September 30, 2000. Total data revenues in the third quarter
were $894 million, an increase of 28 percent compared to the same quarter of
1999. During the quarter BellSouth opened new E-Business Centers in Atlanta and
Miami to provide Web hosting services.
Domestic Wireless
Proportionate revenues of $890 million grew 19.5 percent compared to $745
million in the third quarter of 1999 (normalized for the sale of Honolulu
Cellular in August 1999). At the end of the third quarter, BellSouth served
nearly 6.2 million mobile phone customers in the U.S. (proportionate basis), an
accelerating annual growth rate of 19.8 percent, up from 17.6 percent customer
growth in the second quarter and 15.4 percent in the first. Special plans such
as BellSouth's unique "Rollover Minutes" program and digital one-rate options
helped drive increased usage and revenues. Average revenue per subscriber of $53
in the third quarter of 2000 increased 3.9 percent compared to $51 in the same
three months a year ago.
International
Including newly acquired operations in Colombia, BellSouth added more than a
million international wireless customers in the third quarter, driving an annual
growth rate of 69.3 percent and bringing the number of customers to more than
8.7 million on a proportionate basis. Third quarter proportionate revenues
climbed 16.8 percent, to $875 million in 2000 from $749 million in the same
quarter of the previous year. During the third quarter, BellSouth completed
acquisitions that make it 66 percent owner of the first national wireless
company in Colombia, and early in the fourth quarter, launched wireless service
in Guatemala, the 11th market served by BellSouth in Central and South America.
Calling Features and Packages
Calling feature revenues were $550 million in the third quarter of 2000, a 12
percent increase compared to $491 million in the same three months of 1999. The
BellSouth(R) Complete Choice(R) Plan family of services passed the 5 million
customer milestone during the quarter, and is now used by nearly 30 percent of
residential customers. Complete Choice packages basic service with any or all of
some two dozen calling features such as Caller ID and Call Waiting Deluxe. In
addition, BellSouth has sold 8.2 million Caller ID lines to residential and
business customers.
BellSouth Corporation is a $26 billion Fortune 100 integrated communications
services company. Headquartered in Atlanta, BellSouth has operations in the U.S.
and 16 other countries and serves more than 41 million customers worldwide.
BellSouth provides integrated data, voice and video services to meet the
communications needs of business, residential and wholesale customers. For six
years in a row, BellSouth has achieved the highest score in its category in the
American Customer Satisfaction Index co-sponsored by the American Society for
Quality.
About Cingular Wireless (a joint venture with SBC Communications)
Through Cingular Wireless, the nation's second largest wireless company,
BellSouth provides innovative wireless data and voice services. Cingular
Wireless serves 19 million subscribers and reaches 190 million potential
customers with the most robust set of services in the wireless industry,
including interactive messaging, attractive national rate plans and packages of
communications services.
Further information about BellSouth's third quarter earnings release can be
accessed at the company's Investor Relations Web site at
www.bellsouth.com/investor. The press release, earnings commentary summarizing
highlights of the quarter (both text and audio), and financial statements will
be available on the Web site starting today at 8 a.m. EDT. In addition, the
audio of the earnings commentary can be accessed by calling the BellSouth
Investor Newsline at 770-662-0779, beginning today at 8 a.m. EDT and continuing
through Monday, October 23, 2000.
In addition to historical information, this document contains forward-looking
statements regarding events and financial trends. Factors that could affect
future results and could cause actual results to differ materially from those
expressed or implied in the forward-looking statements include: (i) a change in
economic conditions in domestic or international markets where we operate or
have material investments which would affect demand for our services; (ii) the
intensity of competitive activity and its resulting impact on pricing strategies
and new product offerings; and (iii) higher than anticipated cash requirements
for investments, new business initiatives and acquisitions. The forward-looking
information in this document is given as of this date only, and BellSouth
assumes no duty to update this information.
<PAGE>
BellSouth Corporation
Consolidated Statements of Income (unaudited)
(amounts in millions, except per share data)
Quarter Ended
9/30/00 9/30/99 % Change
Operating Revenues
Wireline communications
Local service $2,857 $2,747 4.0%
Network access 1,198 1,200 (0.2%)
Long distance 133 158 (15.8%)
Other wireline 370 310 19.4%
Total wireline
communications 4,558 4,415 3.2%
Domestic wireless 942 815 15.6%
International operations 709 575 23.3%
Advertising and publishing 587 540 8.7%
Other 107 77 39.0%
Total Operating Revenues 6,903 6,422 7.5%
Operating Expenses
Operational and support expenses 3,665 3,541 3.5%
Depreciation and amortization 1,301 1,207 7.8%
Severance accrual - - N/M
Loss on asset impairment - - N/M
Total Operating Expenses 4,966 4,748 4.6%
Operating Income 1,937 1,674 15.7%
Interest Expense 344 266 29.3%
Other Income (Expense), net 31 28 10.7%
Income Before Income Taxes 1,624 1,436 13.1%
Provision for Income Taxes 588 442 33.0%
Net Income $1,036 $994 4.2%
Diluted:
Weighted Average Common
Shares Outstanding 1,885 1,904 (1.0%)
Earnings Per Share $0.55 $0.52 5.8%
Nine Months Ended
9/30/00 9/30/99 % Change
Operating Revenues
Wireline communications
Local service $8,540 $8,113 5.3%
Network access 3,706 3,578 3.6%
Long distance 399 461 (13.4%)
Other wireline 1,012 845 19.8%
Total wireline
communications 13,657 12,997 5.1%
Domestic wireless 2,714 2,355 15.2%
International operations 2,031 1,701 19.4%
Advertising and publishing 1,422 1,290 10.2%
Other 318 200 59.0%
Total Operating Revenues 20,142 18,543 8.6%
Operating Expenses
Operational and support expenses 10,798 10,153 6.4%
Depreciation and amortization 3,759 3,475 8.2%
Severance accrual 78 - N/M
Loss on asset impairment - 320 N/M
Total Operating Expenses 14,635 13,948 4.9%
Operating Income 5,507 4,595 19.8%
Interest Expense 982 737 33.2%
Other Income (Expense), net 313 8 N/M
Income Before Income Taxes 4,838 3,866 25.1%
Provision for Income Taxes 1,737 1,471 18.1%
Net Income $3,101 $2,395 29.5%
Diluted:
Weighted Average Common
Shares Outstanding 1,894 1,921 (1.4%)
Earnings Per Share $1.64 $1.25 31.2%
Selected Financial and Operating Data
Quarter Ended
9/30/00 9/30/99 % Change
EBITDA $3,238 $2,881 12.4%
EBITDA margin 46.9% 44.9% +200bps
Return on average equity
(annualized) 25.0% 28.2% -320bps
Return on average total capital
(annualized) 15.5% 16.1% -60bps
Digital and data revenues $894 $698 28.1%
Dividends per share $0.19 $0.19 0.0%
Capital expenditures $1,837 $1,570 17.0%
Nine Months Ended
9/30/00 9/30/99 % Change
EBITDA $9,344 $8,390 11.4%
EBITDA margin 46.4% 45.2% +120bps
Return on average equity
(annualized) 25.8% 22.1% +370bps
Return on average total capital
(annualized) 15.9% 13.8% +210bps
Digital and data revenues $2,574 $2,005 28.4%
Dividends per share $0.57 $0.57 0.0%
Capital expenditures $5,105 $4,456 14.6%
As of
9/30/00 9/30/99 % Change
Common shares outstanding 1,866 1,884 (1.0%)
Book value per share $8.84 $7.15 23.6%
Debt ratio 54.6% 54.4% +20bps
Total employees 102,191 95,773 6.7%
<PAGE>
BellSouth Corporation
Normalized Earnings Summary (unaudited)
(amounts in millions, except per share data)
Quarter Ended
9/30/00 9/30/99 % Change
Reported Net Income $1,036 $994 4.2%
Gain on E-Plus restructuring (a) - - -
Severance accrual (b) - - -
Loss on asset impairment (c) - - N/M
Recognition of foreign
investment tax credits (d) - (95) N/M
Gain on Sale of Honolulu Cellular - (23) N/M
Foreign currency loss (e) - 75 N/M
Normalized Net Income $1,036 $951 8.9%
Reported Diluted Earnings Per Share $0.55 $0.52 5.8%
Gain on E-Plus restructuring (a) - - -
Severance accrual (b) - - -
Loss on asset impairment (c) - - N/M
Recognition of foreign
investment tax credits (d) - (0.05) N/M
Gain on Sale of Honolulu Cellular - (0.01) N/M
Foreign currency loss (e) - 0.04 N/M
Normalized Diluted Earnings Per Share $0.55 $0.50 10.0%
Normalized return on average
equity (annualized) 25.0% 27.0% -200bps
Normalized return on average
total capital (annualized) 15.5% 15.6% -10bps
Nine Months Ended
9/30/00 9/30/99 % Change
Reported Net Income $3,101 $2,395 29.5%
Gain on E-Plus restructuring (a) (68) - N/M
Severance accrual (b) 48 - N/M
Loss on asset impairment (c) - 187 N/M
Recognition of foreign
investment tax credits (d) - (95) N/M
Gain on Sale of Honolulu Cellular - (23) N/M
Foreign currency loss (e) - 355 N/M
Normalized Net Income $3,081 $2,819 9.3%
Reported Diluted Earnings Per Share $1.64 $1.25 31.2%
Gain on E-Plus restructuring (a) (0.04) - N/M
Severance accrual (b) 0.03 - N/M
Loss on asset impairment (c) - 0.10 N/M
Recognition of foreign
investment tax credits (d) - (0.05) N/M
Gain on Sale of Honolulu Cellular - (0.01) N/M
Foreign currency loss (e) - 0.18 N/M
Normalized Diluted Earnings Per Share $1.63 $1.47 10.9%
Normalized return on average
equity (annualized) 25.7% 26.0% -30bps
Normalized return on average
total capital (annualized) 15.8% 15.8% N/M
(a) Represents income related to the restructuring of our ownership interest in
German wireless operator E-Plus.
(b) Represents expense recorded as a result of our previously announced plan to
reduce our domestic workforce.
(c) Represents the after-tax loss recorded in second quarter 1999 associated
with the write-down of equipment that is being replaced as we continue to
upgrade our
U.S. wireless network.
(d) Represents foreign tax credits generated in prior years.
(e) Represents our share of foreign currency losses recorded during first and
third quarters 1999 as a result of the devaluation of the Brazilian Real
during January 1999.
<PAGE>
BellSouth Corporation
Consolidated Balance Sheets (unaudited)
(amounts in millions, except per share data)
September 30, December 31,
2000 1999
Assets
Current Assets:
Cash and cash equivalents $1,456 $1,287
Temporary cash investments 36 105
Accounts receivable--net of allowance
for uncollectibles of $389 and $312 5,268 5,177
Material and supplies 511 451
Other current assets 968 367
Total Current Assets 8,239 7,387
Investments and Advances 7,002 6,097
Property, Plant and Equipment, net 25,887 24,631
Deferred Charges and Other Assets 1,853 1,564
Intangible Assets, net 6,578 3,774
Total Assets $49,559 $43,453
Liabilities and Shareholders' Equity
Current Liabilities:
Debt maturing within one year $8,887 $7,653
Accounts payable 2,021 1,961
Other current liabilities 4,473 3,781
Total Current Liabilities 15,381 13,395
Long-Term Debt 11,036 9,113
Noncurrent Liabilities:
Deferred income taxes 3,424 2,705
Unamortized investment tax credits 96 126
Other noncurrent liabilities 3,123 3,299
Total Noncurrent Liabilities 6,643 6,130
Shareholders' Equity:
Common stock, $1 par value 2,020 2,020
Paid-in capital 6,775 6,771
Retained earnings 13,421 11,456
Accumulated other comprehensive income (58) (358)
Shares held in trust and treasury (5,452) (4,798)
Guarantee of ESOP debt (207) (276)
Total Shareholders' Equity 16,499 14,815
Total Liabilities and Shareholders' Equity $49,559 $43,453
<PAGE>
BellSouth Corporation
Consolidated Statements of Income (amounts in millions) (unaudited)
Wireline Communications
Quarter Ended
9/30/00 9/30/99 % Change
Operating Revenues
Local service $2,857 $2,747 4.0%
Network access 1,198 1,200 (0.2%)
Long distance 133 158 (15.8%)
Other wireline 457 376 21.5%
Total Operating Revenues 4,645 4,481 3.7%
Operating Expenses
Operational and support expenses 2,157 2,175 (0.8%)
Depreciation and amortization 924 868 6.5%
Total Operating Expenses 3,081 3,043 1.2%
Operating Income 1,564 1,438 8.8%
Interest Expense 180 142 26.8%
Other Income, net 5 17 N/M
Income Before Income Taxes 1,389 1,313 5.8%
Provision for Income Taxes 519 496 4.6%
Segment Net Income(1) $870 $817 6.5%
Nine Months Ended
9/30/00 9/30/99 % Change
Operating Revenues
Local service $8,540 $8,113 5.3%
Network access 3,706 3,578 3.6%
Long distance 399 461 (13.4%)
Other wireline 1,257 1,078 16.6%
Total Operating Revenues 13,902 13,230 5.1%
Operating Expenses
Operational and support expenses 6,488 6,438 0.8%
Depreciation and amortization 2,709 2,551 6.2%
Total Operating Expenses 9,197 8,989 2.3%
Operating Income 4,705 4,241 10.9%
Interest Expense 518 410 26.3%
Other Income, net 15 18 (16.7%)
Income Before Income Taxes 4,202 3,849 9.2%
Provision for Income Taxes 1,561 1,450 7.7%
Segment Net Income(1) $2,641 $2,399 10.1%
Selected Financial and Operating Data
Quarter Ended
9/30/00 9/30/99 % Change
(amounts in millions)
EBITDA $2,488 $2,306 7.9%
EBITDA margin 53.6% 51.5% +210bps
Calling feature revenues $550 $491 12.0%
Access minutes of use 28,551 27,858 2.5%
Long distance messages 125 160 (21.9%)
Capital expenditures $1,281 $1,213 5.6%
Nine Months Ended
9/30/00 9/30/99 % Change
(amounts in millions)
EBITDA $7,414 $6,792 9.2%
EBITDA margin 53.3% 51.3% +200bps
Calling feature revenues $1,597 $1,412 13.1%
Access minutes of use 86,065 82,310 4.6%
Long distance messages 390 505 (22.8%)
Capital expenditures $3,706 $3,468 6.9%
As of
9/30/00 9/30/99 % Change
Debt ratio 54.0% 49.2% +480bps
Equivalent access lines in service (thousands):
Switched access lines 24,648 24,440 0.9%
Access line equivalents 26,679 16,539 61.3%
Total equivalent access lines in service 51,327 40,979 25.3%
Telephone employees 65,951 64,987 1.5%
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BellSouth Corporation
Supplemental Operating Data (in thousands)
Wireline Communications - Network Access Lines In Service(a)
As of
9/30/00 9/30/99 % Change
Switched access lines
Residence 17,228 16,889 2.0%
Business 7,165 7,282 (1.6%)
Other 255 269 (5.2%)
Total switched
access lines in service 24,648 24,440 0.9%
Access line equivalents(b)
Selected digital data services:
Basic rate ISDN 232 214 8.4%
Primary rate ISDN 1,122 785 42.9%
DS0 1,422 588 141.8%
DS1 5,298 4,180 26.7%
DS3 & higher 18,605 10,772 72.7%
Total digital data
lines in service 26,679 16,539 61.3%
Total equivalent access
lines in service 51,327 40,979 25.3%
(a) Prior period operating data are often revised at later dates to reflect
updated information. The above information reflects the latest data
available for the periods indicated.
(b) Access line equivalents represent a conversion of non-switched data
circuits to a switched access line basis and is presented for comparability
purposes. Equivalents are calculated by converting high-speed/high-capacity
circuits to the equivalent of a switched access line based on transport
capacity. While the revenues generated by access line equivalents have a
directional relationship with these counts, growth rates cannot be compared
on an equivalent basis.
<PAGE>
BellSouth Corporation
Consolidated Statements of Income (amounts in millions) (unaudited)
Domestic Wireless(2)
Quarter Ended Nine Months Ended
9/30/00 9/30/99 % Change 9/30/00 9/30/99 % Change
Operating revenues $948 $820 15.6% $2,728 $2,367 15.3%
Segment net income(1) $118 $55 114.5% $305 $186 64.0%
Total assets $6,875 $5,761 19.3%
Proportionate Basis(3) - Selected Financial and Operating Data
Quarter Ended
9/30/00 9/30/99 % Change
(amounts in millions, except
customer data in thousands)
Wireless revenues, net(4) $890 $755 17.9%
Net income(5) $118 $55 114.5%
Operating cash flow(7) $364 $296 23.0%
Operating cash flow margin(8) 40.9% 39.2% +170bps
Customer net adds in period
(excluding ownership changes) 239 106 125.5%
Average monthly revenue per customer(9) $53 $51 3.9%
Nine Months Ended
9/30/00 9/30/99 % Change
(amounts in millions, except
customer data in thousands)
Wireless revenues, net(4) $2,559 $2,217 15.4%
Net income(5) $305 $187 63.1%
Operating cash flow(7) $1,032 $861 19.9%
Operating cash flow margin(8) 40.3% 38.8% +150bps
Customer net adds in period
(excluding ownership changes) 809 459 76.3%
Average monthly revenue per customer(9) $53 $51 3.9%
As of
9/30/00 9/30/99 % Change
Customers 6,151 5,135 19.8%
POPs 59,427 58,402 1.8%
Penetration rate(10) 10.6% 9.0% +160bps
Property, plant and equipment, gross $4,924 $4,439 10.9%
Normalized Financial and Operating Data
During the third quarter of 1999, we sold our Honolulu Cellular Operations. In
the following table, we have restated the prior period financial data to reflect
these changes and provide more meaningful comparative information for existing
operations.
Quarter Ended Nine Months Ended
9/30/00 9/30/99 % Change 9/30/00 9/30/99 % Change
(amounts in millions)
Wireless revenues, net(4) $890 $745 19.5% $2,559 $2,179 17.4%
<PAGE>
BellSouth Corporation
Consolidated Statements of Income (amounts in millions) (unaudited)
International Operations(2)
Quarter Ended
9/30/00 9/30/99 % Change
Operating revenues $720 $576 25.0%
Segment net income (loss)(1) ($68) $9 N/M
Total assets $7,487 $4,734 58.2%
Nine Months Ended
9/30/00 9/30/99 % Change
Operating revenues $2,063 $1,702 21.2%
Segment net income (loss)(1) ($72) $39 N/M
Proportionate Basis(3) - Selected Financial and Operating Data
Quarter Ended
9/30/00 9/30/99 % Change
(amounts in millions, except
customer data in thousands)
Wireless revenues, net(4) $875 $749 16.8%
Net income (5) ($49) $24 N/M
Operating cash flow(7) $240 $205 17.1%
Operating cash flow margin(8) 27.4% 27.4% N/M
Customer net adds in period
(excluding ownership changes) 634 684 (7.3%)
Average monthly revenue per customer(9) $32 $46 (30.4%)
Nine Months Ended
9/30/00 9/30/99 % Change
(amounts in millions, except
customer data in thousands)
Wireless revenues, net(4) $2,553 $2,163 18.0%
Net income (5) ($33) $70 N/M
Operating cash flow(7) $681 $593 14.8%
Operating cash flow margin(8) 26.7% 27.4% -70bps
Customer net adds in period
(excluding ownership changes) 2,243 1,682 33.4%
Average monthly revenue per customer(9) $34 $51 (33.3%)
As of
9/30/00 9/30/99 % Change
Wireless:
Customers 8,743 5,163 69.3%
POPs 181,085 135,131 34.0%
Penetration rate(10) 5.0% 4.8% +20bps
Property, plant and equipment, gross $4,249 $3,374 25.9%
<PAGE>
BellSouth Corporation
Supplemental Operating Data - International Customers and POPs by Country
(Proportionate Basis(3) in thousands)
Customers As of
Country Brand 9/30/00 9/30/99 % Change
Argentina Movicom BellSouth 962 702 37.0%
Movicom BellSouth
(Interior) 43 - N/M
Brazil BCP (Sao Paulo) 684 510 34.1%
BCP (Northeast) 354 146 142.5%
TCO (6) 212 - N/M
Chile BellSouth (Santiago) 502 306 64.1%
BellSouth (Interior) 100 4 N/M
Colombia Celumovil BellSouth 490 - N/M
Ecuador BellSouth 186 149 24.8%
Nicaragua BellSouth 67 28 139.3%
Panama BellSouth 81 42 92.9%
Peru BellSouth (Lima) 316 214 47.7%
BellSouth (Interior) 41 - N/M
Uruguay Movicom BellSouth 60 48 25.0%
Venezuela Telcel BellSouth 2,443 1,513 61.5%
Guatemala BellSouth - - -
Subtotal Latin America 6,541 3,662 78.6%
Denmark Sonofon 357 389 (8.2%)
Germany e-plus 1,231 661 86.2%
India SkyCell 8 5 60.0%
Israel Cellcom 606 446 35.9%
Subtotal Europe
and Asia/Pacific 2,202 1,501 46.7%
Total International 8,743 5,163 69.3%
POPs As of
Country Brand 9/30/00 9/30/99 % Change
Argentina Movicom BellSouth 8,710 8,775 (0.7%)
Movicom BellSouth
(Interior) 14,560 14,690 (0.9%)
Brazil BCP (Sao Paulo) 8,049 8,049 -
BCP (Northeast) 12,451 12,451 -
TCO (6) 4,733 - N/M
Chile BellSouth (Santiago) 7,500 7,400 1.4%
BellSouth (Interior) 7,600 7,400 2.7%
Colombia Celumovil BellSouth 27,451 - N/M
Ecuador BellSouth 11,086 10,996 0.8%
Nicaragua BellSouth 2,581 2,581 -
Panama BellSouth 1,223 1,135 7.8%
Peru BellSouth (Lima) 7,069 5,283 33.8%
BellSouth (Interior) 17,334 12,830 35.1%
Uruguay Movicom BellSouth 966 966 -
Venezuela Telcel BellSouth 18,132 18,132 -
Guatemala BellSouth 7,140 - N/M
Subtotal Latin America 156,585 110,688 41.5%
Denmark Sonofon 2,465 2,465 -
Germany e-plus 18,568 18,545 0.1%
India SkyCell 1,348 1,348 -
Israel Cellcom 2,119 2,085 1.6%
Subtotal Europe
and Asia/Pacific 24,500 24,443 0.2%
Total International 181,085 135,131 34.0%
<PAGE>
BellSouth Corporation
Consolidated Statements of Income (amounts in millions) (unaudited)
Advertising and Publishing
Quarter Ended Nine Months Ended
9/30/00 9/30/99 % Change 9/30/00 9/30/99 % Change
Operating revenues $593 $542 9.4% $1,439 $1,298 10.9%
Segment net income(1) $181 $160 13.1% $396 $342 15.8%
Total assets $1,656 $1,438 15.2%
Selected Financial and Operating Data
Quarter Ended Nine Months Ended
9/30/00 9/30/99 % Change 9/30/00 9/30/99 % Change
EBITDA $307 $269 14.1% $670 $584 14.7%
EBITDA margin 51.8% 49.6% +220bps 46.6% 45.0% +160bps
Other
Quarter Ended Nine Months Ended
9/30/00 9/30/99 % Change 9/30/00 9/30/99 % Change
Operating revenues $222 $179 24.0% $627 $464 35.1%
Segment net loss(1) ($45) ($39) (15.4%) ($144) ($155) 7.1%
Total assets $1,495 $1,231 21.4%
<PAGE>
BellSouth Corporation
Notes
(1) Segment net income (loss) is based on normalized results which exclude
certain one-time transactions and certain corporate intercompany billings.
Intersegment revenues are not eliminated for purposes of management
reporting.
(2) Domestic wireless and international operations financial and operating data
are reported one month in arrears, except for domestic wireless customers
and POPs which are presented as of quarter end.
(3) Proportionate basis financial and operating data reflect our ownership
interest in the total operating results for each of our wireless
properties, both domestic and international, whether or not consolidated
for financial statement presentation purposes. Proportionate basis
customers and POPs represent end of period customers and estimated market
population, respectively, multiplied by our ownership interest in a
licensee operating in that market.
(4) Wireless revenues, net includes activation fees, access, airtime, roaming
(net), long distance, equipment sales, value added services and other
revenue. Proportionate domestic wireless revenues have been adjusted to
include the cost of equipment sold to customers.
(5) Net income (loss) represents our proportionate interest in the net income
(loss) of the respective operations and does not include gains (losses)
from the sale of properties or development expenses for markets prior to
service initiation.
(6) TCO represents a new investment acquired in May, 2000. This investment is
accounted for under the cost method; therefore, it has no impact on
operating results.
(7) Operating cash flow is defined as operating income plus depreciation and
amortization. While it represents our proportionate interest in the
operating entities' operating cash flows, it does not necessarily represent
cash available to us.
(8) Operating cash flow margin is calculated by dividing operating cash flow by
wireless revenues, net.
(9) Average monthly revenue per customer is calculated by dividing average
monthly revenue by average proportionate basis customers. Average monthly
revenue includes activation fees, access, airtime, roaming (net), long
distance and value added services.
(10) Penetration rate is calculated by dividing proportionate basis customers by
proportionate basis POPs (excludes POPs in markets where service has not
been initiated).
