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 8, 1999
SBC COMMUNICATIONS INC.
A Delaware Corporation
Commission File No. 1-8610
IRS Employer No. 43-1301883
175 E. Houston, San Antonio, Texas 78205
Telephone Number (210) 821-4105
Item 5. Other Events
Attached as an exhibit is a press release issued by SBC Communications Inc.
on January 8, 1999 with segment information by quarter for 1998 and 1997.
Item 7. Financial Statements and Exhibits
(c) Exhibits
27a Financial Data Schedule - March 31, 1996
27b Financial Data Schedule - June 30, 1996
27c Financial Data Schedule - September 30, 1996
27d Financial Data Schedule - December 31, 1996
27e Financial Data Schedule - March 31, 1997
27f Financial Data Schedule - June 30, 1997
27g Financial Data Schedule - September 30, 1997
27h Financial Data Schedule - December 31, 1997
27i Financial Data Schedule - March 31, 1998
27j Financial Data Schedule - June 30, 1998
27k Financial Data Schedule - September 30, 1998
99 January 8, 1999 Press Release - SBC Moves to Segment Reporting
<PAGE>
EXHIBIT INDEX
Exhibit
Number
27a Financial Data Schedule - March 31, 1996
27b Financial Data Schedule - June 30, 1996
27c Financial Data Schedule - September 30, 1996
27d Financial Data Schedule - December 31, 1996
27e Financial Data Schedule - March 31, 1997
27f Financial Data Schedule - June 30, 1997
27g Financial Data Schedule - September 30, 1997
27h Financial Data Schedule - December 31, 1997
27i Financial Data Schedule - March 31, 1998
27j Financial Data Schedule - June 30, 1998
27k Financial Data Schedule - September 30, 1998
99 January 8, 1999 Press Release - SBC Moves to Segment Reporting
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 thereunto duly authorized.
SBC Communications Inc.
/s/ Randall Stephenson
_________________________
Randall Stephenson
Vice President and Controller
January 8, 1999
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SBC
COMMUNICATIONS INC.'S MARCH 31, 1996 CONSOLIDATED FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 653
<SECURITIES> 328
<RECEIVABLES> 4,794
<ALLOWANCES> 349
<INVENTORY> 0<F1>
<CURRENT-ASSETS> 6,555
<PP&E> 63,436
<DEPRECIATION> 37,325
<TOTAL-ASSETS> 40,390
<CURRENT-LIABILITIES> 9,376
<BONDS> 11,846
0
0
<COMMON> 991
<OTHER-SE> 8,257
<TOTAL-LIABILITY-AND-EQUITY> 40,390
<SALES> 0<F2>
<TOTAL-REVENUES> 5,994
<CGS> 0<F3>
<TOTAL-COSTS> 3,332
<OTHER-EXPENSES> 1,100
<LOSS-PROVISION> 95
<INTEREST-EXPENSE> 235
<INCOME-PRETAX> 1,377
<INCOME-TAX> 526
<INCOME-CONTINUING> 851
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 90
<NET-INCOME> 941
<EPS-PRIMARY> 0.48
<EPS-DILUTED> 0.48
<FN>
<F1> THIS AMOUNT IS IMMATERIAL.
<F2> NET SALES OF TANGIBLE PRODUCTS IS NOT MORE THAN 10% OF TOTAL OPERATING
REVENUES AND THEREFORE HAS NOT BEEN STATED SEPARATELY IN THE FINANCIAL
STATEMENTS PURSUANT TO REGULATION S-X, RULE 5-03(B). THIS AMOUNT IS
INCLUDED IN THE "TOTAL REVENUES" TAG.
<F3> COST OF TANGIBLE GOODS SOLD IS INCLUDED IN OPERATIONS AND SUPPORT
IN THE FINANCIAL STATEMENTS AND THE "TOTAL-COST" TAG, PURSUANT TO
REGULATION S-X, RULE 5-03(B).
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SBC
COMMUNICATIONS INC.'S JUNE 30, 1996 CONSOLIDATED FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 434
<SECURITIES> 625
<RECEIVABLES> 4,963
<ALLOWANCES> 370
<INVENTORY> 0<F1>
<CURRENT-ASSETS> 6,762
<PP&E> 64,312
<DEPRECIATION> 37,964
<TOTAL-ASSETS> 40,977
<CURRENT-LIABILITIES> 8,993
<BONDS> 11,858
0
0
<COMMON> 991
<OTHER-SE> 8,744
<TOTAL-LIABILITY-AND-EQUITY> 40,977
<SALES> 0<F2>
<TOTAL-REVENUES> 12,167
<CGS> 0<F3>
<TOTAL-COSTS> 6,808
<OTHER-EXPENSES> 2,206
<LOSS-PROVISION> 198
<INTEREST-EXPENSE> 470
<INCOME-PRETAX> 2,772
<INCOME-TAX> 1,066
<INCOME-CONTINUING> 1,706
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 90
<NET-INCOME> 1,796
<EPS-PRIMARY> 0.92
<EPS-DILUTED> 0.91
<FN>
<F1> THIS AMOUNT IS IMMATERIAL.
<F2> NET SALES OF TANGIBLE PRODUCTS IS NOT MORE THAN 10% OF TOTAL OPERATING
REVENUES AND THEREFORE HAS NOT BEEN STATED SEPARATELY IN THE FINANCIAL
STATEMENTS PURSUANT TO REGULATION S-X, RULE 5-03(B). THIS AMOUNT IS
INCLUDED IN THE "TOTAL REVENUES" TAG.
<F3> COST OF TANGIBLE GOODS SOLD IS INCLUDED IN OPERATIONS AND SUPPORT
IN THE FINANCIAL STATEMENTS AND THE "TOTAL-COST" TAG, PURSUANT TO
REGULATION S-X, RULE 5-03(B).
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SBC
COMMUNICATIONS INC.'S SEPTEMBER 30, 1996 CONSOLIDATED FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 783
<SECURITIES> 425
<RECEIVABLES> 5,129
<ALLOWANCES> 389
<INVENTORY> 0<F1>
<CURRENT-ASSETS> 7,137
<PP&E> 65,221
<DEPRECIATION> 38,496
<TOTAL-ASSETS> 41,897
<CURRENT-LIABILITIES> 9,396
<BONDS> 12,076
0
0
<COMMON> 991
<OTHER-SE> 9,066
<TOTAL-LIABILITY-AND-EQUITY> 41,897
<SALES> 0<F2>
<TOTAL-REVENUES> 18,556
<CGS> 0<F3>
<TOTAL-COSTS> 10,443
<OTHER-EXPENSES> 3,336
<LOSS-PROVISION> 314
<INTEREST-EXPENSE> 685
<INCOME-PRETAX> 4,229
<INCOME-TAX> 1,609
<INCOME-CONTINUING> 2,620
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 90
<NET-INCOME> 2,710
<EPS-PRIMARY> 1.38
<EPS-DILUTED> 1.38
<FN>
<F1> THIS AMOUNT IS IMMATERIAL.
<F2> NET SALES OF TANGIBLE PRODUCTS IS NOT MORE THAN 10% OF TOTAL OPERATING
REVENUES AND THEREFORE HAS NOT BEEN STATED SEPARATELY IN THE FINANCIAL
STATEMENTS PURSUANT TO REGULATION S-X, RULE 5-03(B). THIS AMOUNT IS
INCLUDED IN THE "TOTAL REVENUES" TAG.
<F3> COST OF TANGIBLE GOODS SOLD IS INCLUDED IN OPERATIONS AND SUPPORT
IN THE FINANCIAL STATEMENTS AND THE "TOTAL-COST" TAG, PURSUANT TO
REGULATION S-X, RULE 5-03(B).
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SBC
COMMUNICATIONS INC.'S DECEMBER 31, 1996 CONSOLIDATED FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<CASH> 324
<SECURITIES> 432
<RECEIVABLES> 5,347
<ALLOWANCES> 339
<INVENTORY> 0<F1>
<CURRENT-ASSETS> 6,739
<PP&E> 66,503
<DEPRECIATION> 38,819
<TOTAL-ASSETS> 42,057
<CURRENT-LIABILITIES> 9,979
<BONDS> 12,100
0
0
<COMMON> 991
<OTHER-SE> 9,137
<TOTAL-LIABILITY-AND-EQUITY> 42,057
<SALES> 0<F2>
<TOTAL-REVENUES> 25,202
<CGS> 0<F3>
<TOTAL-COSTS> 14,510
<OTHER-EXPENSES> 4,466
<LOSS-PROVISION> 438
<INTEREST-EXPENSE> 901
<INCOME-PRETAX> 5,457
<INCOME-TAX> 2,070
<INCOME-CONTINUING> 3,387
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 90
<NET-INCOME> 3,477
<EPS-PRIMARY> 1.78
<EPS-DILUTED> 1.77
<FN>
<F1> THIS AMOUNT IS IMMATERIAL.
<F2> NET SALES OF TANGIBLE PRODUCTS IS NOT MORE THAN 10% OF TOTAL OPERATING
REVENUES AND THEREFORE HAS NOT BEEN STATED SEPARATELY IN THE FINANCIAL
STATEMENTS PURSUANT TO REGULATION S-X, RULE 5-03(B). THIS AMOUNT IS
INCLUDED IN THE "TOTAL REVENUES" TAG.
<F3> COST OF TANGIBLE GOODS SOLD IS INCLUDED IN OPERATIONS AND SUPPORT
IN THE FINANCIAL STATEMENTS AND THE "TOTAL-COST" TAG, PURSUANT TO
REGULATION S-X, RULE 5-03(B).
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SBC
COMMUNICATIONS INC.'S MARCH 31, 1997 CONSOLIDATED FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 850
<SECURITIES> 307
<RECEIVABLES> 5,197
<ALLOWANCES> 347
<INVENTORY> 0<F1>
<CURRENT-ASSETS> 7,115
<PP&E> 67,490
<DEPRECIATION> 39,488
<TOTAL-ASSETS> 42,514
<CURRENT-LIABILITIES> 9,902
<BONDS> 12,350
0
0
<COMMON> 992
<OTHER-SE> 9,674
<TOTAL-LIABILITY-AND-EQUITY> 42,514
<SALES> 0<F2>
<TOTAL-REVENUES> 6,405
<CGS> 0<F3>
<TOTAL-COSTS> 3,560
<OTHER-EXPENSES> 1,160
<LOSS-PROVISION> 119
<INTEREST-EXPENSE> 237
<INCOME-PRETAX> 1,455
<INCOME-TAX> 554
<INCOME-CONTINUING> 901
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 901
<EPS-PRIMARY> 0.46
<EPS-DILUTED> 0.46
<FN>
<F1> THIS AMOUNT IS IMMATERIAL.
<F2> NET SALES OF TANGIBLE PRODUCTS IS NOT MORE THAN 10% OF TOTAL OPERATING
REVENUES AND THEREFORE HAS NOT BEEN STATED SEPARATELY IN THE FINANCIAL
STATEMENTS PURSUANT TO REGULATION S-X, RULE 5-03(B). THIS AMOUNT IS
INCLUDED IN THE "TOTAL REVENUES" TAG.
<F3> COST OF TANGIBLE GOODS SOLD IS INCLUDED IN OPERATIONS AND SUPPORT
IN THE FINANCIAL STATEMENTS AND THE "TOTAL-COST" TAG, PURSUANT TO
REGULATION S-X, RULE 5-03(B).
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SBC
COMMUNICATIONS INC.'S JUNE 30, 1997 CONSOLIDATED FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 752
<SECURITIES> 241
<RECEIVABLES> 5,398
<ALLOWANCES> 385
<INVENTORY> 0<F1>
<CURRENT-ASSETS> 7,920
<PP&E> 68,501
<DEPRECIATION> 40,431
<TOTAL-ASSETS> 43,861
<CURRENT-LIABILITIES> 12,544
<BONDS> 12,279
0
0
<COMMON> 992
<OTHER-SE> 8,596
<TOTAL-LIABILITY-AND-EQUITY> 43,861
<SALES> 0<F2>
<TOTAL-REVENUES> 12,777
<CGS> 0<F3>
<TOTAL-COSTS> 9,023
<OTHER-EXPENSES> 2,900
<LOSS-PROVISION> 282
<INTEREST-EXPENSE> 505
<INCOME-PRETAX> 350
<INCOME-TAX> 185
<INCOME-CONTINUING> 165
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 165
<EPS-PRIMARY> 0.09
<EPS-DILUTED> 0.09
<FN>
<F1> THIS AMOUNT IS IMMATERIAL.
<F2> NET SALES OF TANGIBLE PRODUCTS IS NOT MORE THAN 10% OF TOTAL OPERATING
REVENUES AND THEREFORE HAS NOT BEEN STATED SEPARATELY IN THE FINANCIAL
STATEMENTS PURSUANT TO REGULATION S-X, RULE 5-03(B). THIS AMOUNT IS
INCLUDED IN THE "TOTAL REVENUES" TAG.
<F3> COST OF TANGIBLE GOODS SOLD IS INCLUDED IN OPERATIONS AND SUPPORT
IN THE FINANCIAL STATEMENTS AND THE "TOTAL-COST" TAG, PURSUANT TO
REGULATION S-X, RULE 5-03(B).
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SBC
COMMUNICATIONS INC.'S SEPTEMBER 30, 1997 CONSOLIDATED FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 717
<SECURITIES> 504
<RECEIVABLES> 5,621
<ALLOWANCES> 418
<INVENTORY> 0<F1>
<CURRENT-ASSETS> 8,114
<PP&E> 69,228
<DEPRECIATION> 40,759
<TOTAL-ASSETS> 44,728
<CURRENT-LIABILITIES> 12,375
<BONDS> 12,820
0
0
<COMMON> 992
<OTHER-SE> 9,139
<TOTAL-LIABILITY-AND-EQUITY> 44,728
<SALES> 0<F2>
<TOTAL-REVENUES> 19,567
<CGS> 0<F3>
<TOTAL-COSTS> 13,059
<OTHER-EXPENSES> 4,081
<LOSS-PROVISION> 415
<INTEREST-EXPENSE> 767
<INCOME-PRETAX> 1,700
<INCOME-TAX> 668
<INCOME-CONTINUING> 1,032
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,032
<EPS-PRIMARY> 0.53
<EPS-DILUTED> 0.53
<FN>
<F1> THIS AMOUNT IS IMMATERIAL.
<F2> NET SALES OF TANGIBLE PRODUCTS IS NOT MORE THAN 10% OF TOTAL OPERATING
REVENUES AND THEREFORE HAS NOT BEEN STATED SEPARATELY IN THE FINANCIAL
STATEMENTS PURSUANT TO REGULATION S-X, RULE 5-03(B). THIS AMOUNT IS
INCLUDED IN THE "TOTAL REVENUES" TAG.
<F3> COST OF TANGIBLE GOODS SOLD IS INCLUDED IN OPERATIONS AND SUPPORT
IN THE FINANCIAL STATEMENTS AND THE "TOTAL-COST" TAG, PURSUANT TO
REGULATION S-X, RULE 5-03(B).
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SBC
COMMUNICATIONS INC.'S DECEMBER 31, 1997 CONSOLIDATED FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<CASH> 410
<SECURITIES> 320
<RECEIVABLES> 5,774
<ALLOWANCES> 430
<INVENTORY> 0<F1>
<CURRENT-ASSETS> 7,517
<PP&E> 70,215
<DEPRECIATION> 41,147
<TOTAL-ASSETS> 44,836
<CURRENT-LIABILITIES> 10,910
<BONDS> 13,176
0
0
<COMMON> 992
<OTHER-SE> 9,528
<TOTAL-LIABILITY-AND-EQUITY> 44,836
<SALES> 0<F2>
<TOTAL-REVENUES> 26,681
<CGS> 0<F3>
<TOTAL-COSTS> 17,802
<OTHER-EXPENSES> 5,301
<LOSS-PROVISION> 566
<INTEREST-EXPENSE> 1,043
<INCOME-PRETAX> 2,658
<INCOME-TAX> 984
<INCOME-CONTINUING> 1,674
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,674
<EPS-PRIMARY> 0.86
<EPS-DILUTED> 0.85
<FN>
<F1> THIS AMOUNT IS IMMATERIAL.
<F2> NET SALES OF TANGIBLE PRODUCTS IS NOT MORE THAN 10% OF TOTAL OPERATING
REVENUES AND THEREFORE HAS NOT BEEN STATED SEPARATELY IN THE FINANCIAL
STATEMENTS PURSUANT TO REGULATION S-X, RULE 5-03(B). THIS AMOUNT IS
INCLUDED IN THE "TOTAL REVENUES" TAG.
<F3> COST OF TANGIBLE GOODS SOLD IS INCLUDED IN OPERATIONS AND SUPPORT
IN THE FINANCIAL STATEMENTS AND THE "TOTAL-COST" TAG, PURSUANT TO
REGULATION S-X, RULE 5-03(B).
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SBC
COMMUNICATIONS INC.'S MARCH 31, 1998 CONSOLIDATED FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 688
<SECURITIES> 176
<RECEIVABLES> 5,557
<ALLOWANCES> 464
<INVENTORY> 0<F1>
<CURRENT-ASSETS> 7,455
<PP&E> 71,151
<DEPRECIATION> 42,016
<TOTAL-ASSETS> 44,919
<CURRENT-LIABILITIES> 10,454
<BONDS> 12,904
0
0
<COMMON> 1,986
<OTHER-SE> 9,168
<TOTAL-LIABILITY-AND-EQUITY> 44,919
<SALES> 0<F2>
<TOTAL-REVENUES> 6,855
<CGS> 0<F3>
<TOTAL-COSTS> 3,879
<OTHER-EXPENSES> 1,201
<LOSS-PROVISION> 127
<INTEREST-EXPENSE> 256
<INCOME-PRETAX> 1,533
<INCOME-TAX> 563
<INCOME-CONTINUING> 970
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 15
<NET-INCOME> 985
<EPS-PRIMARY> 0.50
<EPS-DILUTED> 0.50
<FN>
<F1> THIS AMOUNT IS IMMATERIAL.
<F2> NET SALES OF TANGIBLE PRODUCTS IS NOT MORE THAN 10% OF TOTAL OPERATING
REVENUES AND THEREFORE HAS NOT BEEN STATED SEPARATELY IN THE FINANCIAL
STATEMENTS PURSUANT TO REGULATION S-X, RULE 5-03(B). THIS AMOUNT IS
INCLUDED IN THE "TOTAL REVENUES" TAG.
<F3> COST OF TANGIBLE GOODS SOLD IS INCLUDED IN OPERATIONS AND SUPPORT
IN THE FINANCIAL STATEMENTS AND THE "TOTAL-COST" TAG, PURSUANT TO
REGULATION S-X, RULE 5-03(B).
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SBC
COMMUNICATIONS INC.'S JUNE 30, 1998 CONSOLIDATED FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 627
<SECURITIES> 91
<RECEIVABLES> 5,675
<ALLOWANCES> 450
<INVENTORY> 0<F1>
<CURRENT-ASSETS> 7,522
<PP&E> 72,155
<DEPRECIATION> 42,616
<TOTAL-ASSETS> 45,424
<CURRENT-LIABILITIES> 10,633
<BONDS> 12,693
0
0
<COMMON> 1,987
<OTHER-SE> 9,649
<TOTAL-LIABILITY-AND-EQUITY> 45,424
<SALES> 0<F2>
<TOTAL-REVENUES> 13,885
<CGS> 0<F3>
<TOTAL-COSTS> 7,857
<OTHER-EXPENSES> 2,436
<LOSS-PROVISION> 251
<INTEREST-EXPENSE> 516
<INCOME-PRETAX> 3,124
<INCOME-TAX> 1,134
<INCOME-CONTINUING> 1,990
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 15
<NET-INCOME> 2,005
<EPS-PRIMARY> 1.02
<EPS-DILUTED> 1.01
<FN>
<F1> THIS AMOUNT IS IMMATERIAL.
<F2> NET SALES OF TANGIBLE PRODUCTS IS NOT MORE THAN 10% OF TOTAL OPERATING
REVENUES AND THEREFORE HAS NOT BEEN STATED SEPARATELY IN THE FINANCIAL
STATEMENTS PURSUANT TO REGULATION S-X, RULE 5-03(B). THIS AMOUNT IS
INCLUDED IN THE "TOTAL REVENUES" TAG.
<F3> COST OF TANGIBLE GOODS SOLD IS INCLUDED IN OPERATIONS AND SUPPORT
IN THE FINANCIAL STATEMENTS AND THE "TOTAL-COST" TAG, PURSUANT TO
REGULATION S-X, RULE 5-03(B).
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SBC
COMMUNICATIONS INC.'S SEPTEMBER 30, 1998 CONSOLIDATED FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 801
<SECURITIES> 37
<RECEIVABLES> 5,739
<ALLOWANCES> 460
<INVENTORY> 0<F1>
<CURRENT-ASSETS> 7,649
<PP&E> 72,993
<DEPRECIATION> 43,278
<TOTAL-ASSETS> 45,371
<CURRENT-LIABILITIES> 10,140
<BONDS> 12,357
0
0
<COMMON> 1,987
<OTHER-SE> 10,361
<TOTAL-LIABILITY-AND-EQUITY> 45,371
<SALES> 0<F2>
<TOTAL-REVENUES> 21,101
<CGS> 0<F3>
<TOTAL-COSTS> 11,929
<OTHER-EXPENSES> 3,677
<LOSS-PROVISION> 373
<INTEREST-EXPENSE> 760
<INCOME-PRETAX> 5,125
<INCOME-TAX> 1,873
<INCOME-CONTINUING> 3,252
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 15
<NET-INCOME> 3,267
<EPS-PRIMARY> 1.67
<EPS-DILUTED> 1.65
<FN>
<F1> THIS AMOUNT IS IMMATERIAL.
<F2> NET SALES OF TANGIBLE PRODUCTS IS NOT MORE THAN 10% OF TOTAL OPERATING
REVENUES AND THEREFORE HAS NOT BEEN STATED SEPARATELY IN THE FINANCIAL
STATEMENTS PURSUANT TO REGULATION S-X, RULE 5-03(B). THIS AMOUNT IS
INCLUDED IN THE "TOTAL REVENUES" TAG.
<F3> COST OF TANGIBLE GOODS SOLD IS INCLUDED IN OPERATIONS AND SUPPORT
IN THE FINANCIAL STATEMENTS AND THE "TOTAL-COST" TAG, PURSUANT TO
REGULATION S-X, RULE 5-03(B).
</FN>
</TABLE>
SBC Moves to Segment Reporting
In line with Statement of Financial Accounting Standards No. 131
(FAS 131), SBC will disclose 1998 fourth-quarter and year-end financial
results using segment reporting guidelines. This Investor Briefing defines
SBC's segment structure and provides historical financial results including
SNET on a segment basis.
The goal of FAS 131 is to help shareowners and others better analyze the
financial performance of a public company's different businesses or operating
segments. As a result, FAS 131 requires companies to report financial
performance based on:
o How management organizes its operating segments
o How management internally evaluates segment financial performance
Summary of Segment Reporting's Impact:
SBC will report results for four operating segments - Wireline, Wireless,
Directory and Other - in accordance with FAS 131. SBC will also have
non-operating segment amounts that reconcile operating segment results to
consolidated SBC results.
As in the past, SBC's Investor Briefings will contain consolidated income
statements with both reported and normalized results down to net income.
However, SBC's Investor Briefings will now provide segment income statements
that end at income before income taxes and that have been adjusted for
normalizing items.1
Other effects of segment reporting include the following changes to SBC's
quarterly Investor Briefings:
o No separate results or discussion will be provided for Southwestern
Bell and Pacific Bell.
o Reported results including special items will be available only for
consolidated SBC.
o Wireless and Directory operations will be discussed in greater detail
than before.
1 Because SBC manages its segments based on normalized income before income
taxes, this approach for presenting segment results follows FAS 131
requirements which state that disclosures should mirror how management looks
at financial performance in order to make operating decisions.
The following financial schedules are intended to assist shareowners and
analysts in modeling SBC by providing historical financial and operational
results on a segment basis. The financial schedules include other
restatements for all periods as highlighted below.
Other Changes Included in Financial Statements:
o Results reflect the Southern New England Telecommunications
(SNET) merger as a pooling of interests and include conforming accounting
changes related to pension and postretirement benefits at SNET.
o Reclassification of all Cost of Services and Products expenses and
Selling, General and Administrative expenses to Operations and Support
expenses.
o Reclassification of voice messaging revenues from Other Revenues to
Local Service.
o Reclassification of amounts collected for gross receipt taxes from
Local Service revenue to Operations and Support expense to net with gross
receipt remittances.
o Reclassification of federal USF payments from Operations and Support
expense to Network Access revenue to net all USF activity.
o Reclassification of Wireless Local Service revenue and wireless-related
Long Distance revenue to Wireless Subscriber revenue on SBC consolidated
income statements.
<PAGE>
Segment Definitions
- ------------------------------------------------------------------------------
Wireline Segment:
Provides landline telecommunications services Revenue Line
including:
- ------------------------------------------------------------------------------
o Exchange access lines
o Vertical services including voice messaging
o Local data transport services including Local Service
Asymmetrical Digital Subscriber Line (ADSL)
o Resold lines
- ------------------------------------------------------------------------------
o Usage-based switched access
o Dedicated transport for special access
o Access-line related charges, e.g., Subscriber Network Access
Line Charges (SLC), Presubscribed Interexchange
Carrier Charges (PICC)
o Net Federal Universal Service Fund (USF)
activity
- ------------------------------------------------------------------------------
o Intralata toll traffic
o Interlata long distance voice and data services Long Distance Service
provided to Connecticut customers
- ------------------------------------------------------------------------------
o Consumer customer premise equipment
o Business systems
o Network integration
o Internet access Other
o Inside wire maintenance contracts
o Billing and collection agreements
o Enhanced consumer white-page listings
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Wireless Segment
Provides domestic wireless services including: Revenue Line
- ------------------------------------------------------------------------------
o Cellular and PCS local, long distance and Subscriber Revenues
roaming services
- ------------------------------------------------------------------------------
o Cellular and PCS handsets Other Revenues
o Interconnection revenues for terminating
traffic
- ------------------------------------------------------------------------------
<PAGE>
- -----------------------------------------------------------------------------
Directory Segment
Performs directory-related functions including: Revenue Line
- ------------------------------------------------------------------------------
o Selling and publishing yellow-pages advertising
o Publishing white-pages directories
o Selling enhanced business white-pages listings Operating Revenues
o Providing non-directory-related advertising,
e.g., Internet services, coupon design,
production and distribution
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Other Segment
Includes: Income Statement Line
- ------------------------------------------------------------------------------
o International Operations Various lines
including Equity in
Net Income of
Affiliates
- ------------------------------------------------------------------------------
o Other domestic operations Other Revenue and
various expense lines
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Reconciling Items
Reconcile operating segment results to consolidated
SBC results. Include: Income Statement Line
- ------------------------------------------------------------------------------
o Corporate activities
o Intersegment eliminations All
o All other adjustments
- ------------------------------------------------------------------------------
<PAGE>
<TABLE>
SBC Communications Inc.
- --------------------------------------------------------------------------------
Consolidated Statements of Income (Unaudited)
(Dollars in Millions, Except per Share Amounts)
- --------------------------------------------------------------------------------
Nine
Three Months Ended Months
---------------------------- Ended
3/31/98 6/30/98 9/30/98 9/30/98
- ------------------------------------------------------------------ ---------
<S> <C> <C> <C> <C>
Operating Revenues
Landline local service $ 2,682 $ 2,777 $ 2,832 $ 8,291
Wireless subscriber 867 955 975 2,797
Network access 1,603 1,644 1,614 4,861
Long-distance service 590 593 608 1,791
Directory advertising 550 436 503 1,489
Other 563 625 684 1,872
- ------------------------------------------------------------------ ---------
Total Operating Revenues 6,855 7,030 7,216 21,101
- ------------------------------------------------------------------ ---------
Operating Expenses
Operations and support 3,879 3,978 4,072 11,929
- ------------------------------------------------------------------ ---------
EBITDA * 2,976 3,052 3,144 9,172
- ------------------------------------------------------------------ ---------
Depreciation and amortization 1,201 1,235 1,241 3,677
- ------------------------------------------------------------------ ---------
Total Operating Expenses 5,080 5,213 5,313 15,606
- ------------------------------------------------------------------ ---------
Operating Income 1,775 1,817 1,903 5,495
- ------------------------------------------------------------------ ---------
Interest Expense 256 260 244 760
- ------------------------------------------------------------------ ---------
Equity in Net Income of Affiliates 53 73 55 181
- ------------------------------------------------------------------ ---------
Other Income (Expense) - Net (39) (39) 287 209
- ------------------------------------------------------------------ ---------
Income Before Income Taxes and
Cumulative Effect of Accounting Change 1,533 1,591 2,001 5,125
- ------------------------------------------------------------------ ---------
Income Taxes 563 571 739 1,873
- ------------------------------------------------------------------ ---------
Income Before Cumulative Effect of
Accounting Change 970 1,020 1,262 3,252
- ------------------------------------------------------------------ ---------
Cumulative Effect of Accounting
Change, net of tax 15 - - 15
- ------------------------------------------------------------------ ---------
Net Income $ 985 $ 1,020 $ 1,262 $ 3,267
================================================================== =========
Basic Earnings Per Share:
Income Before Cumulative
Effect of Accounting Change $ 0.49 $ 0.52 $ 0.65 $ 1.66
Net Income $ 0.50 $ 0.52 $ 0.65 $ 1.67
Diluted Earnings Per Share:
Income Before Cumulative
Effect of Accounting Change $ 0.49 $ 0.51 $ 0.64 $ 1.64
Net Income $ 0.50 $ 0.51 $ 0.64 $ 1.65
- ---------------------------------------------------------------- ---------
*EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization.
</TABLE>
<PAGE>
<TABLE>
SBC Communications Inc.
- --------------------------------------------------------------------------------
Consolidated Statements of Income (Unaudited)
(Dollars in Millions, Except per Share Amounts)
- --------------------------------------------------------------------------------
Three Months Ended Year
---------------------------------- Ended
3/31/97 6/30/97 9/30/97 12/31/97 12/31/97
- ------------------------------------------------------------------ ---------
<S> <C> <C> <C> <C> <C>
Operating Revenues
Landline local service $ 2,460 $ 2,560 $ 2,635 $ 2,679 $ 10,334
Wireless subscriber 761 839 881 891 3,372
Network access 1,590 1,461 1,579 1,585 6,215
Long-distance service 603 590 599 560 2,352
Directory advertising 512 414 546 808 2,280
Other 479 508 550 591 2,128
- ------------------------------------------------------------------ ---------
Total Operating Revenues 6,405 6,372 6,790 7,114 26,681
- ------------------------------------------------------------------ ---------
Operating Expenses
Operations and support 3,560 5,463 4,036 4,743 17,802
- ------------------------------------------------------------------ ---------
EBITDA * 2,845 909 2,754 2,371 8,879
- ------------------------------------------------------------------ ---------
Depreciation and amortization 1,160 1,740 1,181 1,220 5,301
- ------------------------------------------------------------------ ---------
Total Operating Expenses 4,720 7,203 5,217 5,963 23,103
- ------------------------------------------------------------------ ---------
Operating Income (Loss) 1,685 (831) 1,573 1,151 3,578
- ------------------------------------------------------------------ ---------
Interest Expense 237 268 262 276 1,043
- ------------------------------------------------------------------ ---------
Equity in Net Income of Affiliates 27 54 62 58 201
- ------------------------------------------------------------------ ---------
Other Income (Expense) - Net (20) (60) (23) 25 (78)
- ------------------------------------------------------------------ ---------
Income (Loss) Before Income Taxes 1,455 (1,105) 1,350 958 2,658
- ------------------------------------------------------------------ ---------
Income Taxes 554 (369) 483 316 984
- ------------------------------------------------------------------ ---------
Net Income (Loss) $ 901 $ (736) $ 867 $ 642 $ 1,674
================================================================== =========
Basic Earnings (Loss) Per Share $ 0.46 $ (0.38) $ 0.45 $ 0.33 $ 0.86
Diluted Earnings (Loss) Per Share $ 0.46 $ (0.38) $ 0.44 $ 0.33 $ 0.85
- ------------------------------------------------------------------ ---------
*EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization.
</TABLE>
<PAGE>
<TABLE>
SBC Communications Inc.
- --------------------------------------------------------------------------------
Consolidated Statements of Income - Normalized (Unaudited)
(Dollars in Millions, Except per Share Amounts)
- --------------------------------------------------------------------------------
Nine
Three Months Ended Months
--------------------------- Ended
3/31/98 6/30/98 9/30/98 9/30/98
- ----------------------------------------------------------------- ----------
<S> <C> <C> <C> <C>
Operating Revenues
Landline local service $ 2,682 $ 2,777 $ 2,832 $ 8,291
Wireless subscriber 867 955 975 2,797
Network access 1,603 1,644 1,614 4,861
Long-distance service 590 593 608 1,791
Directory advertising 550 436 503 1,489
Other 563 625 684 1,872
- ----------------------------------------------------------------- ----------
Total Operating Revenues 6,855 7,030 7,216 21,101
- ----------------------------------------------------------------- ----------
Operating Expenses
Operations and support 3,879 3,978 4,072 11,929
- ----------------------------------------------------------------- ----------
EBITDA * 2,976 3,052 3,144 9,172
- ----------------------------------------------------------------- ----------
Depreciation and amortization 1,201 1,235 1,241 3,677
- ----------------------------------------------------------------- ----------
Total Operating Expenses 5,080 5,213 5,313 15,606
- ----------------------------------------------------------------- ----------
Operating Income 1,775 1,817 1,903 5,495
- ----------------------------------------------------------------- ----------
Interest Expense 256 260 244 760
- ----------------------------------------------------------------- ----------
Equity in Net Income of Affiliates 53 73 55 181
- ----------------------------------------------------------------- ----------
Other Income (Expense) - Net (39) (39) (71) (149)
- ----------------------------------------------------------------- ----------
Income Before Income Taxes and
Cumulative Effect of Accounting Change 1,533 1,591 1,643 4,767
- ----------------------------------------------------------------- ----------
Income Taxes 563 571 600 1,734
- ----------------------------------------------------------------- ----------
Income Before Cumulative Effect of
Accounting Change 970 1,020 1,043 3,033
- ----------------------------------------------------------------- ----------
Cumulative Effect of Accounting
Change, net of tax 15 - - 15
- ----------------------------------------------------------------- ----------
Net Income $ 985 $ 1,020 $ 1,043 $ 3,048
================================================================= ==========
Basic Earnings Per Share:
Income Before Cumulative
Effect of Accounting Change $ 0.49 $ 0.52 $ 0.53 $ 1.55
Net Income $ 0.50 $ 0.52 $ 0.53 $ 1.56
Diluted Earnings Per Share:
Income Before Cumulative
Effect of Accounting Change $ 0.49 $ 0.51 $ 0.53 $ 1.53
Net Income $ 0.50 $ 0.51 $ 0.53 $ 1.54
- ----------------------------------------------------------------- ----------
*EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization.
</TABLE>
<PAGE>
<TABLE>
SBC Communications Inc.
- --------------------------------------------------------------------------------
Consolidated Statements of Income - Normalized (Unaudited)
(Dollars in Millions, Except per Share Amounts)
- --------------------------------------------------------------------------------
Three Months Ended Year
----------------------------------- Ended
3/31/97 6/30/97 9/30/97 12/31/97 12/31/97
- ------------------------------------------------------------------- ----------
<S> <C> <C> <C> <C> <C>
Operating Revenues
Landline local service $ 2,460 $ 2,574 $ 2,635 $ 2,679 $ 10,348
Wireless subscriber 761 839 881 891 3,372
Network access 1,590 1,615 1,579 1,585 6,369
Long-distance service 603 592 599 560 2,354
Directory advertising 512 414 546 808 2,280
Other 479 526 550 591 2,146
- ------------------------------------------------------------------- ----------
Total Operating Revenues 6,405 6,560 6,790 7,114 26,869
- ------------------------------------------------------------------- ----------
Operating Expenses
Operations and support 3,712 3,850 4,019 4,275 15,856
- ------------------------------------------------------------------- ----------
EBITDA * 2,693 2,710 2,771 2,839 11,013
- ------------------------------------------------------------------- ----------
Depreciation and amortization 1,160 1,147 1,181 1,209 4,697
- ------------------------------------------------------------------- ----------
Total Operating Expenses 4,872 4,997 5,200 5,484 20,553
- ------------------------------------------------------------------- ----------
Operating Income 1,533 1,563 1,590 1,630 6,316
- ------------------------------------------------------------------- ----------
Interest Expense 237 241 262 276 1,016
- ------------------------------------------------------------------- ----------
Equity in Net Income of Affiliates 27 54 62 58 201
- ------------------------------------------------------------------- ----------
Other Income (Expense) - Net (20) (34) (23) (23) (100)
- ------------------------------------------------------------------- ----------
Income Before Income Taxes 1,303 1,342 1,367 1,389 5,401
- ------------------------------------------------------------------- ----------
Income Taxes 492 483 490 486 1,951
- ------------------------------------------------------------------- ----------
Net Income $ 811 $ 859 $ 877 $ 903 $ 3,450
=================================================================== ==========
Basic Earnings Per Share $ 0.42 $ 0.44 $ 0.45 $ 0.46 $ 1.77
Diluted Earnings Per Share $ 0.42 $ 0.44 $ 0.45 $ 0.46 $ 1.76
- ------------------------------------------------------------------- ----------
*EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization.
</TABLE>
<PAGE>
<TABLE>
SBC Communications Inc.
- --------------------------------------------------------------------------------
Consolidated Statements of Income - Normalized Wireline (Unaudited)
(Dollars in Millions)
- --------------------------------------------------------------------------------
Nine
Three Months Ended Months
---------------------------- Ended
3/31/98 6/30/98 9/30/98 9/30/98
- --------------------------------------------------------- ----------
<S> <C> <C> <C> <C>
Operating Revenues
Local service $ 2,707 $ 2,801 $ 2,829 $ 8,337
Network access 1,603 1,644 1,622 4,869
Long-distance service 589 592 608 1,789
Other 471 486 609 1,566
- --------------------------------------------------------- ----------
Total Operating Revenues 5,370 5,523 5,668 16,561
- --------------------------------------------------------- ----------
Operating Expenses
Operations and support 3,026 3,057 3,163 9,246
- --------------------------------------------------------- ----------
EBITDA * 2,344 2,466 2,505 7,315
- --------------------------------------------------------- ----------
Depreciation and amortization 1,029 1,055 1,078 3,162
- --------------------------------------------------------- ----------
Total Operating Expenses 4,055 4,112 4,241 12,408
- --------------------------------------------------------- ----------
Operating Income 1,315 1,411 1,427 4,153
- --------------------------------------------------------- ----------
Interest Expense 209 218 215 642
- --------------------------------------------------------- ----------
Equity in Net Income of Affiliates - - - -
- --------------------------------------------------------- ----------
Other Income (Expense) - Net (13) 4 (1) (10)
- --------------------------------------------------------- ----------
Income Before Income Taxes $ 1,093 $ 1,197 $ 1,211 $ 3,501
========================================================= ==========
Three Months Ended Year
----------------------------------- Ended
3/31/97 6/30/97 9/30/97 12/31/97 12/31/97
- ------------------------------------------------------------------ ----------
<S> <C> <C> <C> <C> <C>
Operating Revenues
Local service $ 2,483 $ 2,597 $ 2,659 $ 2,695 $ 10,434
Network access 1,593 1,614 1,583 1,588 6,378
Long-distance service 603 591 598 559 2,351
Other 395 426 455 487 1,763
- ------------------------------------------------------------------ ----------
Total Operating Revenues 5,074 5,228 5,295 5,329 20,926
- ------------------------------------------------------------------ ----------
Operating Expenses
Operations and support 2,910 3,004 3,087 3,290 12,291
- ------------------------------------------------------------------ ----------
EBITDA * 2,164 2,224 2,208 2,039 8,635
- ------------------------------------------------------------------ ----------
Depreciation and amortization 1,025 1,006 1,017 1,047 4,095
- ------------------------------------------------------------------ ----------
Total Operating Expenses 3,935 4,010 4,104 4,337 16,386
- ------------------------------------------------------------------ ----------
Operating Income 1,139 1,218 1,191 992 4,540
- ------------------------------------------------------------------ ----------
Interest Expense 201 197 217 222 837
- ------------------------------------------------------------------ ----------
Equity in Net Income of Affiliates (2) (3) - - (5)
- ------------------------------------------------------------------ ----------
Other Income (Expense) - Net 2 (1) 34 3 38
- ------------------------------------------------------------------ ----------
Income Before Income Taxes $ 938 $ 1,017 $ 1,008 $ 773 $ 3,736
================================================================== ==========
* EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization.
</TABLE>
<PAGE>
<TABLE>
SBC Communications Inc.
- --------------------------------------------------------------------------------
Consolidated Statements of Income - Normalized Wireless (Unaudited)
(Dollars in Millions)
- --------------------------------------------------------------------------------
Nine
Three Months Ended Months
---------------------------- Ended
3/31/98 6/30/98 9/30/98 9/30/98
- ----------------------------------------------------------- ---------
<S> <C> <C> <C> <C>
Operating Revenues
Subscriber Revenues $ 867 $ 956 $ 974 $ 2,797
Other 80 90 98 268
- ----------------------------------------------------------- ---------
Total Operating Revenues 947 1,046 1,072 3,065
- ----------------------------------------------------------- ---------
Operating Expenses
Operations and support 634 676 682 1,992
- ----------------------------------------------------------- ---------
EBITDA * 313 370 390 1,073
- ----------------------------------------------------------- ---------
Depreciation and amortization 139 146 146 431
- ----------------------------------------------------------- ---------
Total Operating Expenses 773 822 828 2,423
- ----------------------------------------------------------- ---------
Operating Income 174 224 244 642
- ----------------------------------------------------------- ---------
Interest Expense 45 45 45 135
- ----------------------------------------------------------- ---------
Equity in Net Income of Affiliates 2 8 9 19
- ----------------------------------------------------------- ---------
Other Income (Expense) - Net (36) (39) (59) (134)
- ----------------------------------------------------------- ---------
Income Before Income Taxes $ 95 $ 148 $ 149 $ 392
=========================================================== =========
Three Months Ended Year
------------------------------------- Ended
3/31/97 6/30/97 9/30/97 12/31/97 12/31/97
- -------------------------------------------------------------------- --------
<S> <C> <C> <C> <C> <C>
Operating Revenues
Subscriber Revenues $ 761 $ 839 $ 881 $ 891 $ 3,372
Other 64 76 89 96 325
- -------------------------------------------------------------------- --------
Total Operating Revenues 825 915 970 987 3,697
- -------------------------------------------------------------------- --------
Operating Expenses
Operations and support 527 617 697 769 2,610
- -------------------------------------------------------------------- --------
EBITDA * 298 298 273 218 1,087
- -------------------------------------------------------------------- --------
Depreciation and amortization 107 112 137 135 491
- -------------------------------------------------------------------- --------
Total Operating Expenses 634 729 834 904 3,101
- -------------------------------------------------------------------- --------
Operating Income 191 186 136 83 596
- -------------------------------------------------------------------- --------
Interest Expense 30 32 45 45 152
- -------------------------------------------------------------------- --------
Equity in Net Income of Affiliates 6 4 4 (5) 9
- -------------------------------------------------------------------- --------
Other Income (Expense) - Net (21) (32) (19) (26) (98)
- -------------------------------------------------------------------- --------
Income Before Income Taxes $ 146 $ 126 $ 76 $ 7 $ 355
==================================================================== ========
* EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization.
</TABLE>
<PAGE>
<TABLE>
SBC Communications Inc.
- --------------------------------------------------------------------------------
Consolidated Statements of Income - Normalized Directory (Unaudited)
(Dollars in Millions)
- --------------------------------------------------------------------------------
Nine
Three Months Ended Months
------------------------------ Ended
3/31/98 6/30/98 9/30/98 9/30/98
- --------------------------------------------------------- ----------
<S> <C> <C> <C> <C>
Operating Revenues $ 554 $ 441 $ 474 $ 1,469
- --------------------------------------------------------- ----------
Operating Expenses
Operations and support 298 264 255 817
- --------------------------------------------------------- ----------
EBITDA * 256 177 219 652
- --------------------------------------------------------- ----------
Depreciation and amortization 9 8 7 24
- --------------------------------------------------------- ----------
Total Operating Expenses 307 272 262 841
- --------------------------------------------------------- ----------
Operating Income 247 169 212 628
- --------------------------------------------------------- ----------
Interest Expense 3 3 2 8
- --------------------------------------------------------- ----------
Other Income (Expense) - Net 3 - 2 5
- --------------------------------------------------------- ----------
Income Before Income Taxes $ 247 $ 166 $ 212 $ 625
========================================================= ==========
Three Months Ended Year
---------------------------------------- Ended
3/31/97 6/30/97 9/30/97 12/31/97 12/31/97
- ------------------------------------------------------------------ ----------
<S> <C> <C> <C> <C> <C>
Operating Revenues $ 522 $ 419 $ 531 $ 814 $ 2,286
- ------------------------------------------------------------------ ----------
Operating Expenses
Operations and support 293 266 303 368 1,230
- ------------------------------------------------------------------ ----------
EBITDA * 229 153 228 446 1,056
- ------------------------------------------------------------------ ----------
Depreciation and amortization 7 7 7 7 28
- ------------------------------------------------------------------ ----------
Total Operating Expenses 300 273 310 375 1,258
- ------------------------------------------------------------------ ----------
Operating Income 222 146 221 439 1,028
- ------------------------------------------------------------------ ----------
Interest Expense 2 1 - 1 4
- ------------------------------------------------------------------ ----------
Other Income (Expense) - Net 4 3 6 6 19
- ------------------------------------------------------------------ ----------
Income Before Income Taxes $ 224 $ 148 $ 227 $ 444 $ 1,043
================================================================== ==========
* EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization.
</TABLE>
<PAGE>
<TABLE>
SBC Communications Inc.
- --------------------------------------------------------------------------------
Consolidated Statements of Income - Normalized Other (Unaudited)
(Dollars in Millions)
- --------------------------------------------------------------------------------
Nine
Three Months Ended Months
---------------------------- Ended
3/31/98 6/30/98 9/30/98 9/30/98
- ---------------------------------------------------------- ---------
<S> <C> <C> <C> <C>
Operating Revenues $ 18 $ 21 $ 24 $ 63
- ---------------------------------------------------------- ---------
Operating Expenses 24 27 30 81
- ---------------------------------------------------------- ---------
Operating Loss (6) (6) (6) (18)
- ---------------------------------------------------------- ---------
Interest Expense 7 9 11 27
- ---------------------------------------------------------- ---------
Equity in Net Income of Affiliates 51 65 46 162
- ---------------------------------------------------------- ---------
Other Income (Expense) - Net 104 4 1 109
- ---------------------------------------------------------- ---------
Income Before Income Taxes $ 142 $ 54 $ 30 $ 226
========================================================== =========
Three Months Ended Year
-------------------------------------- Ended
3/31/97 6/30/97 9/30/97 12/31/97 12/31/97
- ------------------------------------------------------------------- ---------
<S> <C> <C> <C> <C> <C>
Operating Revenues $ 8 $ 9 $ 16 $ 24 $ 57
- ------------------------------------------------------------------- ---------
Operating Expenses 15 16 21 41 93
- ------------------------------------------------------------------- ---------
Operating Loss (7) (7) (5) (17) (36)
- ------------------------------------------------------------------- ---------
Interest Expense 2 7 8 8 25
- ------------------------------------------------------------------- ---------
Equity in Net Income of Affiliates 28 57 58 63 206
- ------------------------------------------------------------------- ---------
Other Income (Expense) - Net 4 11 25 7 47
- ------------------------------------------------------------------- ---------
Income Before Income Taxes $ 23 $ 54 $ 70 $ 45 $ 192
=================================================================== =========
</TABLE>
<PAGE>
<TABLE>
SBC Communications Inc.
- -------------------------------------------------------------------------------------------
Supplementary Financial and Operating Data (Unaudited)
(Dollars in Millions, Except per Share Amounts)
- -------------------------------------------------------------------------------------------
Nine
Months
Ended
3/31/98 6/30/98 9/30/98 9/30/98
- ------------------------------------------------------------------- ----------
<S> <C> <C> <C> <C>
Analytical and Operating Information
For the period ended:
Access Minutes of Use (000,000) 35,671 37,135 38,063 110,869
Capital Expenditures $ 1,175 $ 1,556 $ 1,460 $ 4,191
Capital Expenditures - Wireline $ 1,048 $ 1,372 $ 1,334 $ 3,754
Capital Expenditures - Wireless $ 111 $ 159 $ 110 $ 380
Dividends Declared Per Share * $0.23375 $0.23375 $0.23375 $0.70125
Weighted Average Common Shares
Outstanding (000,000) 1,957 1,958 1,955 1,956
Weighted Average Common Shares
Outstanding With Dilution
(000,000) 1,983 1,985 1,980 1,983
End of Period Common Shares
Outstanding (000,000) 1,958 1,957 1,953 1,953
As of:
Debt Ratio 56.41% 54.42% 51.42% 51.42%
Total Employees 129,000 129,800 129,000 129,000
Access Lines Served (000) 36,253 36,548 36,944 36,944
Residence 22,740 22,872 23,123 23,123
Business 13,025 13,186 13,329 13,329
Other 488 490 492 492
Resold Lines (000) 632 677 748 748
Domestic Wireless Operations
- --------------------------------------
As of or for the period ended:
Wireless Customers (000) ** 6,070 6,305 6,467 6,467
Net Adds (000) 119 235 162 516
POPs (000) 84,035 84,035 84,035 84,035
SBC International
- --------------------------------------
As of or for the period ended:
Total customers of
SBC International's affiliates
Access Lines (000) 13,612 14,596 15,019 15,019
Wireless (000):
Subscribers 5,064 5,895 6,976 6,976
Net Adds 621 831 1,081 2,533
Video Subscribers (000) 654 789 811 811
SBC's proportionate interest of
SBC International's affiliates
Access Lines (000) 1,726 1,858 1,937 1,937
Wireless (000):
Subscribers 532 619 731 731
Net Adds 73 87 112 272
Video Subscribers (000) 265 329 340 340
<FN>
* Dividends declared by SBC's Board of Directors; these amounts do not include
dividends declared and paid by Southern New England Telecommunications
Corporation prior to the merger with SBC.
** Includes acquisitions and Houston/Austin customers.
- -----------------------------------------------------------------------------
</FN>
</TABLE>
<PAGE>
<TABLE>
SBC Communications Inc.
- ------------------------------------------------------------------------------------------
Supplementary Financial and Operating Data (Unaudited)
(Dollars in Millions, Except per Share Amounts)
- ------------------------------------------------------------------------------------------
Year
Ended
3/31/97 6/30/97 9/30/97 12/31/97 12/31/97
- ----------------------------------------------------------------------------- ---------
Analytical and Operating Information
<S> <C> <C> <C> <C> <C>
For the period ended:
Access Minutes of Use (000,000) 33,412 34,739 35,451 35,868 139,470
Capital Expenditures $ 1,352 $ 1,625 $ 1,484 $ 1,769 $ 6,230
Capital Expenditures - Wireline $ 1,172 $ 1,377 $ 1,275 $ 1,451 $ 5,275
Capital Expenditures - Wireless $ 157 $ 187 $ 173 $ 259 $ 776
Dividends Declared Per Share * $0.22375 $0.22375 $0.22375 $0.22375 $0.89500
Weighted Average Common Shares
Outstanding (000,000) 1,940 1,941 1,945 1,951 1,945
Weighted Average Common Shares
Outstanding With Dilution
(000,000) 1,954 1,956 1,962 1,975 1,962
End of Period Common Shares
Outstanding (000,000) 1,940 1,943 1,947 1,954 1,954
As of:
Debt Ratio 57.38% 60.53% 59.66% 57.07% 57.07%
Total Employees 122,900 127,800 128,100 128,100 128,100
Access Lines Served (000) 34,481 34,811 35,309 35,727 35,727
Residence 21,795 21,908 22,173 22,400 22,400
Business 12,209 12,421 12,652 12,841 12,841
Other 477 482 484 486 486
Resold Lines (000) 120 205 351 533 533
Domestic Wireless Operations
- --------------------------------------
As of or for the period ended:
Wireless Customers (000) ** 5,087 5,382 5,664 5,951 5,951
Net Adds (000) 260 295 282 287 1,124
POPs (000) 58,408 66,315 83,737 84,036 84,036
SBC International ***
- --------------------------------------
As of or for the period ended:
Total customers of
SBC International's affiliates
Access Lines (000) 8,605 12,964 13,310 13,526 13,526
Wireless (000):
Subscribers 2,216 2,746 3,488 4,443 4,443
Net Adds 341 530 742 955 2,568
Video Subscribers (000) 610 630 663 668 668
SBC's proportionate interest of
SBC International's affiliates
Access Lines (000) 853 1,635 1,687 1,713 1,713
Wireless (000):
Subscribers 233 283 355 459 459
Net Adds 36 50 72 104 262
Video Subscribers (000) 248 255 266 268 268
<FN>
* Dividends declared by SBC's Board of Directors; these amounts do not include
dividends declared and paid by Southern New England Telecommunications
Corporation and Pacific Telesis Group prior to their respective mergers with SBC.
** Includes acquisitions and Houston/Austin customers.
*** 1997 amounts represent SBC's historical interest in current international
investments.
- ------------------------------------------------------------------------------------------
</FN>
</TABLE>
