RNS Number:1050P
Bellsouth Corp
20 July 2005
Cingular Wireless Posts Strong Second-Quarter Results, Advances
Merger Integration Initiatives
- Net subscriber additions of 1.1 million, third consecutive quarter of
more than 1 million postpaid net additions
- 51.6 million cellular/PCS subscribers at quarter's end
- Gross subscriber additions of 4.4 million
- Postpaid monthly subscriber churn down to 1.8 percent, third
consecutive quarter of improved postpaid churn; total monthly churn at
2.2 percent
- A 340 basis-point sequential improvement in normalized OIBDA margin
to 28.9%
- Continued progress in transitioning subscribers to GSM, with 90 percent
of minutes now on Cingular's GSM network
FOR RELEASE WEDNESDAY, JULY 20, 2005
ATLANTA - Cingular Wireless, a joint venture between SBC Communications Inc.
(NYSE: SBC) and BellSouth Corporation (NYSE: BLS), today posted strong
second-quarter results driven by continued solid subscriber growth, improvement
in margins and postpaid churn, and strength in data and enterprise services.
For the quarter, the nation's largest wireless provider delivered net
subscriber additions of 1.1 million, nearly all of which were postpaid.
Second-quarter postpaid net additions were comparable to the number delivered
in the first quarter of 2005, and represent the third straight quarter of more
than 1 million postpaid net additions.
Net additions in the second quarter were 2.5 times higher than pro forma
net additions in the year-ago second quarter. (Pro forma results reflect the
acquisition of AT&T Wireless, plus related acquisitions and dispositions, as
if they had occurred on January 1, 2003.) Cingular ended the second quarter
of 2005 with 51.6 million cellular/PCS subscribers.
Gross additions continue to be very strong at 4.4 million. Postpaid churn
improved sequentially to 1.8 percent -- a record low for the company. This
compares to 1.9 percent in the first quarter of 2005 and to 2.1 percent (pro
forma) in the fourth quarter of 2004. Overall churn held at 2.2, which was
the same as in the first quarter of 2005, primarily reflecting the transition
of customers on former AT&T Wireless prepaid plans.
As it sustained strong subscriber growth, Cingular also improved its
margins. OIBDA margin, normalized to exclude merger-related integration costs,
was 28.9 percent, a sequential improvement of 340 basis points. (OIBDA margin
is operating income (loss) before depreciation and amortization, divided by
total service revenues.)
"Cingular continues to make good progress on a variety of fronts," said
Stan Sigman, Cingular's president and chief executive officer. "We are
pleased with our performance in margins, postpaid subscriber net additions,
and revenue.
"These results show once again that our merger is working," Sigman said.
"We are making progress and growing the business, though we of course have a
long way to go before our work is done. The complex tasks of integrating
networks, systems, processes, and people continue to go well and are on or
ahead of schedule. At the same time, we are improving, in large ways and
small, how we serve our customers, who continue to choose Cingular and stay
with Cingular."
Improved postpaid churn, very strong gross additions, and retention of
former AT&T Wireless customers
Cingular's "more bars in more places" (SM) and ALLOVER (SM) network
messages resonated with current and new customers, and drove lower postpaid
churn and very strong gross subscriber additions.
As well, the company continued to transition its customer base to GSM and
move former AT&T Wireless customers to Cingular plans. These two developments
also contributed to the quarter's improved postpaid churn results, the company
noted.
At the end of the second quarter, 90 percent of the company's total
combined minutes were carried on its GSM network. GSM is the world's most
widely used wireless technology. Through roaming alliances with other GSM-
based providers around the world, Cingular, which operates the nation's
largest digital voice and data network, also provides the largest global
presence of any U.S. wireless carrier, with coverage in more than 170
countries.
Seventy-eight percent of Cingular's subscriber base was GSM-equipped by
the end of the second quarter, up from 72 percent in the first quarter of
2005. More than 7 percent of Cingular's customer base upgraded handsets
during the second quarter -- almost entirely onto GSM.
Cingular has now converted more than 4 million former AT&T Wireless
subscribers to new Cingular plans as customers responded positively to
Cingular's broad network coverage and attractive products and services.
Financial Results
- In the second quarter, Cingular's revenues were $8.6 billion, which is
an improvement of 5.4 percent over pro forma revenue of $8.2 billion
during the year-ago second quarter and up 4.6 percent versus the first
quarter of this year.
- Average revenue per user (ARPU) in the quarter was $50.43, up 1.7
percent from $49.59 in the first quarter of this year but down 5.6
percent from pro forma ARPU in the year-ago second quarter. The
sequential increase in ARPU was driven by growth in data revenues and
seasonal usage patterns. The year-over-year ARPU change primarily
reflects the transition of customers to more inclusive plans, the
popularity of FamilyTalk(R) and Rollover(SM) plans, and the increase in
the reseller subscriber base, partially offset by increased data ARPU.
- ARPU from data services continued its strong growth in the second
quarter, increasing more than 12 percent to $4.16 compared to $3.70 in
the first quarter of this year. This growth continued to be spurred by
the ever-increasing popularity of text messaging, mobile instant
messaging, mobile e-mail, downloadable ringtones, games, photo
messaging and media bundles. Cingular delivered 5 billion text
messages during the quarter.
- Cingular's reported second-quarter operating expenses were
$8.1 billion, of which merger-related integration expenses totaled
$204 million. These merger-related integration expenses decreased
Cingular's OIBDA by $95 million, and added $109 million in accelerated
depreciation costs related to shortened asset lives. In addition,
operating expenses included $445 million in non-cash amortization of
intangibles that were acquired as part of the merger with AT&T
Wireless.
- Reported OIBDA margin was 27.6 percent for the second quarter.
Normalized to exclude merger-related integration costs, OIBDA margin
was 28.9 percent -- a sequential improvement of 340 basis points.
- Reported operating income was $504 million, a sequential increase of
342 percent. Reported net income increased to $147 million, compared
to a loss of $240 million in the first quarter.
- Normalized to exclude merger-related integration costs, operating
income for the second quarter was $708 million, a sequential increase
of 223 percent.
- Normalized net income increased to $317 million, compared to a loss of
$152 million in the first quarter.
Second-quarter highlights and initiatives
- Cingular's Business Markets Group introduced several new products and
services. These included: the Sony VAIO(R), the first widely
available notebook PC with integrated high-speed wireless wide area
network (WAN) technology; Good Technology's GoodLink(TM) wireless
messaging and data access software and service; and two new flagship
offers, Cingular Corporate Digital Advantage and Cingular Business
Edge, which are targeted to large and small businesses, respectively.
- In addition to announcing these new products and services, the Business
Markets Group also signed more than 325 new high-end service contracts
during the quarter, including such important accounts as Sun
Microsystems, CIBC World Markets, Drexel University, Insight
Enterprises, the City of Houston, Humana Inc., Energen Corporation,
O'Neal Steel, Inc. and Brasfield and Gorrie, LLC.
- The company reintroduced and enhanced GoPhone(R), its selection of
popular prepaid services that give consumers unprecedented freedom and
flexibility in buying wireless without a contract but with many of the
benefits of traditional wireless plans.
- Cingular made available powerful and stylish new wireless devices,
including the Audiovox SMT 5600, the world's smallest Microsoft Windows
Mobile-based Smartphone, and the Motorola RAZR Black, the exclusive
sleek successor to the Motorola RAZR.
- The company announced an innovative new music program called Cingular
Sounds(TM), which launches new singles as ringtones on wireless phones
before they are heard anywhere else or simultaneously with their radio
debut.
- Cingular recorded more than 41.5 million text messages throughout the
12-week voting period of "American Idol," which represents the largest
volume of text messaging in a single campaign in the history of the
U.S. wireless industry.
- The company remains on track to launch UMTS/HSDPA in 15-20 markets by
the end of 2005. UMTS with HSDPA provides superior speeds for data and
video services, and it delivers outstanding operating efficiencies,
using the same spectrum and infrastructure for voice and data.
Conference Call with Investment Community
Cingular will hold a conference call with the investment community
beginning at 10:00 a.m. (ET) today. During the call, we will discuss our
operational and financial results for the quarter.
The conference call will be webcast and archived on our website at
http://www.cingular.com/investor for 30 days, as well as on the websites of
SBC Communications Inc. and BellSouth Corporation. Our second-quarter news
release and downloadable financial statements are now available on our
website.
Dial-in information for the conference call is as follows:
Domestic: 866-406-3487
International: 630-691-2771
Replay: 877-213-9653
(Domestic)
Replay: 630-652-3041
(International)
Passcode: 11947895#
Replays will be available for five days.
About Cingular Wireless
Cingular Wireless is the largest wireless carrier in the United States,
serving 51.6 million customers. Cingular, a joint venture between SBC
Communications Inc. (NYSE: SBC) and BellSouth Corporation (NYSE: BLS), has the
largest digital voice and data network in the nation -- the ALLOVER(SM)
network - and the largest mobile-to-mobile community of any national wireless
carrier. Cingular is the only U.S. wireless carrier to offer Rollover(SM), the
wireless plan that lets customers keep their unused monthly minutes. Details
of the company are available at http://www.cingular.com . Get Cingular
Wireless press releases e-mailed to you automatically. Sign up at
http://www.cingular.com/newsroom .
FORWARD-LOOKING INFORMATION
In addition to historical information, this document and the conference
call referred to above may contain 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:
- the pervasive and intensifying competition in all markets where
Cingular operates;
- failure to quickly realize capital and expense synergies from the
acquisition of AT&T Wireless as a result of technical, logistical,
regulatory and other factors;
- problems associated with the transition of Cingular's network to
Higher-speed technologies;
- slow growth of Cingular's data services due to lack of popular
applications, terminal equipment, advanced technology and other
factors;
- sluggish economic and employment conditions in the markets Cingular
serves;
- the final outcome of FCC proceedings, including rulemakings, and
judicial review, if any, of such proceedings;
- enactment of additional state and federal laws, regulations and
requirements pertaining to Cingular's operations; and
- the outcome of pending or threatened complaints and litigation.
Such forward-looking information is given as of this date only, and
Cingular assumes no duty to update this information.
Media Contacts
Mark Siegel
mark.a.siegel@cingular.com
404-236-6312
Clay Owen
clay.owen@cingular.com
404-236-6153
Investor Relations Contacts
Kent Evans
kent.evans@cingular.com
404-236-6203
Jeff Cannon
jeffrey.cannon@cingular.com
404-236-5486
Kristi Taylor
kristi.taylor@cingular.com
404-236-6532
OIBDA Discussion
OIBDA is defined as operating income (loss) before depreciation and
amortization. Although we have used substantively similar measures in the
past, which we called "EBITDA", we now use the term OIBDA to describe the
measure we use as it more clearly defines the elements of the measure. OIBDA
margin is calculated as OIBDA divided by services revenue. These are non-GAAP
financial measures. They differ from operating income (loss) and operating
margin, as calculated in accordance with GAAP, in that they exclude
depreciation and amortization. They differ from net income (loss), as
calculated in accordance with GAAP, in that they exclude, as presented in our
Consolidated Statements of Income: (i) depreciation and amortization, (ii)
interest expense, (iii) minority interest expense, (iv) equity in net income
(loss) of affiliates, (v) other, net, and (vi) provision (benefit) for income
taxes. We believe these measures are relevant and useful information to our
investors as they are an integral part of our internal management reporting
and planning processes and are important metrics that our management uses to
evaluate the operating performance of our consolidated operations. They are
used by management as a measurement of our success in acquiring, retaining and
servicing customers because we believe these measures reflect our ability to
generate and grow subscriber revenues while providing a high level of customer
service in a cost-effective manner. Management also uses these measures as a
method of comparing our performance with that of many of our competitors. The
components of OIBDA include the key revenue and expense items for which our
operating managers are responsible and upon which we evaluate their
performance. Lastly, we use this measure for planning purposes and in
presentations to our board of directors, and we use multiples of this current
or projected measure in our discounted cash flow models to determine the value
of our licensing costs and our overall enterprise valuation.
OIBDA does not give effect to cash used for debt service requirements and
thus does not reflect available funds for distributions, reinvestment or other
discretionary uses. OIBDA excludes other, net, minority interest expense and
equity in net income (loss) of affiliates, as these do not reflect the
operating results of our subscriber base and our national footprint that we
utilize to obtain and service our subscribers. Equity in net income (loss) of
affiliates represents our proportionate share of the net income (loss) of
affiliates in which we exercise significant influence, but do not control. As
we do not control these entities, our management excludes these results when
evaluating the performance of our primary operations. Although excluded,
equity in net income (loss) of affiliates may include results that are
material to our overall net income (loss). OIBDA also excludes interest
expense and the provision (benefit) for income taxes. Excluding these items
eliminates the expenses associated with our capitalization and tax structures.
Finally, OIBDA excludes depreciation and amortization, in order to eliminate
the impact of capital investments.
We believe OIBDA as a percentage of services revenue to be a more relevant
measure of our operating margin than OIBDA as a percentage of total revenue.
We generally subsidize a portion of our handset sales, all of which are
recognized in the period in which we sell the handset. This results in a
disproportionate impact on our margin in that period. Management views this
equipment subsidy as a cost to acquire or retain a subscriber, which is
recovered through the ongoing service revenue that is generated by the
subscriber. We also use services revenue to calculate margin to facilitate
comparison, both internally and externally with our competitors, as they
calculate their margins using services revenue as well.
There are material limitations to using these non-GAAP financial measures,
including the difficulty associated with comparing these performance measures
as we calculate them to similar performance measures presented by other
companies, and the fact that these performance measures do not take into
account certain significant items, including depreciation and amortization,
interest, tax expense and equity in net income (loss) of affiliates, that
directly affect our net income or loss. Management compensates for these
limitations by carefully analyzing how our competitors present performance
measures that are similar in nature to OIBDA as we present it, and considering
the economic effect of the excluded expense items independently as well as in
connection with its analysis of net income (loss) as calculated in accordance
with GAAP. OIBDA and OIBDA margin should be considered in addition to, but not
as a substitute for, other measures of financial performance reported in
accordance with accounting principles generally accepted in the U.S. OIBDA and
OIBDA margin, as we have defined them, may not be comparable to similarly
titled measures reported by other companies.
ARPU Discussion
ARPU is defined as cellular/PCS service revenues during the period divided
by average cellular/PCS customers during the period. This metric is used to
compare the recurring revenue amounts generated on our cellular/PCS network to
prior periods and internal targets. Our ARPU calculation excludes Mobitex data
revenues and thereby makes our metric more comparable with other wireless
carriers. We believe that this metric provides useful information concerning
the performance of our ongoing initiatives to attract and retain high value
customers and the use of our network.
DETAILED FINANCIAL INFORMATION
Tables follow
Cingular Wireless LLC Income Statement - amounts in millions (unaudited)
Quarter Ended Year to Date
6/30/05 6/30/04 % Change 6/30/05 6/30/04 % Change
(Restated) (Restated)
Operating revenues:
Service revenues $7,719 $3,833 101.4% $15,138 $7,416 104.1%
Equipment sales 890 354 151.4% 1,700 738 130.4%
Total operating
revenues 8,609 4,187 105.6% 16,838 8,154 106.5%
Operating expenses:
Cost of services 2,293 983 133.3% 4,437 1,938 128.9%
Cost of equipment
sales 1,230 505 143.6% 2,525 1,042 142.3%
Selling, general and
administrative 2,953 1,463 101.8% 5,954 2,835 110.0%
Depreciation and
amortization 1,629 565 188.3% 3,304 1,118 195.5%
Total operating
expenses 8,105 3,516 130.5% 16,220 6,933 134.0%
Operating income
(loss) 504 671 (24.9%) 618 1,221 (49.4%)
Interest expense 326 199 63.8% 664 397 67.3%
Minority interest
expense 41 41 0.0% 57 68 (16.2%)
Equity in net income
(loss) of affiliates 1 (95) NM 3 (203) NM
Other income
(expense), net 33 1 NM 53 5 NM
Income (loss) before
income tax and cum.
effect of acctng.
chg. 171 337 (49.3%) (47) 558 (108.4%)
Provision (benefit)
for income taxes 24 (2) NM 46 4 NM
Income (loss) before
cumulative effect of
accounting change 147 339 (56.6%) (93) 554 (116.8%)
Selected Financial and Operating Data for Cingular Wireless
- amounts in millions, except customer data in 000s
Quarter Ended Year to Date
6/30/05 6/30/04 % Change 6/30/05 6/30/04 % Change
(Restated) (Restated)
(Amounts in millions,
except customer data
in 000s)
OIBDA(1) $2,133 $1,236 72.6% $3,922 $2,339 67.7%
OIBDA margin(2) 27.6% 32.2% -460 BP 25.9% 31.5% -560 BP
Total Cellular/PCS
Customers(3) 51,596 25,044 106.0% 51,596 25,044 106.0%
Net Customer Additions
- Cellular/PCS 1,071 428 150.2% 2,490 982 153.6%
M&A Activity,
Partitioned Customers
and/or Other Adjs. 156 (2) (3) 35
Churn - Cellular/PCS(4) 2.2% 2.7% -50 BP 2.2% 2.7% -50 BP
ARPU - Cellular/PCS(5) $50.43 $50.75 (0.6%) $50.01 $49.54 0.9%
Minutes Of Use Per
Cellular/PCS
Subscriber(6) 704 568 23.9% 674 547 23.2%
Licensed POPs -
Cellular/PCS(7) 292 243 292 243
Penetration -
Cellular/PCS(8) 18.0% 11.1% 18.0% 11.1%
Capital Expenditures(9) 2,188 783 179.4% 3,159 1,117 182.8%
Reconciliations of Non-GAAP Financial Measures to GAAP Financial Measures
- amounts in millions (unaudited)
Quarter Ended Year To Date
6/30/05 6/30/04 % Change 6/30/05 6/30/04 % Change
(Restated) (Restated)
Income (loss) before
cumulative effect of
accounting change 147 339 (56.6%) (93) 554 (116.8%)
Plus: Interest
expense 326 199 63.8% 664 397 67.3%
Plus: Minority
interest expense 41 41 0.0% 57 68 (16.2%)
Plus: Equity in net
loss of affiliates (1) 95 NM (3) 203 NM
Plus: Other, net (33) (1) NM (53) (5) NM
Plus: Provision
(benefit) for
income taxes 24 (2) NM 46 4 NM
Operating income
(loss) 504 671 (24.9%) 618 1,221 (49.4%)
Plus: Depreciation
and amortization 1,629 565 188.3% 3,304 1,118 195.5%
OIBDA(1) $2,133 $1,236 72.6% $3,922 $2,339 67.7%
NM - Not Meaningful
On February 18, 2005, our management and the Audit Committee of the
board of directors of our Manager concluded that our financial
statements for fiscal periods ending December 31, 2000 through December
31, 2003 and the first three interim periods of 2004 should be restated to
correct certain errors relating to accounting for operating leases and
that such previously filed financial statements should no longer be relied
upon. Additionally, our network infrastructure venture with T-Mobile USA,
Inc., GSM Facilities LLC, accounted for under the equity method, reached a
similar conclusion with respect to operating leases, requiring correction
and restatement of the venture's previously issued financial statements
for the years ended December 31, 2003 and 2002. Please see our 2004 Form
10-K filed with the Securities and Exchange Commission on March 7, 2005
for further information.
Notes:
(1) OIBDA is defined as operating income (loss) before depreciation and
amortization. OIBDA differs from operating income (loss), as
calculated in accordance with GAAP, in it excludes depreciation and
amortization. It differs from net income (loss), as calculated in
accordance with GAAP, in that it excludes, as presented on our
Consolidated Statement of Income: (1) depreciation and amortization,
(2) interest expense, (3) minority interest expense, (4) equity in net
income (loss) of affiliates, (5) other, net, and (6) provision
(benefit) for income taxes. OIBDA does not give effect to cash used
for debt service requirements and thus does not reflect available
funds for distributions, reinvestment or other discretionary uses.
OIBDA is not presented as an alternative measure of operating results
or cash flows from operations, as determined in accordance with
generally accepted accounting principles. Our calculation of OIBDA,
as presented, may differ from similarly titled measures reported by
other companies.
(2) OIBDA margin is defined as OIBDA divided by service revenues.
(3) Cellular/PCS customers include customers served through reseller
agreements.
(4) Cellular/PCS churn is calculated by dividing the aggregate number of
cellular/PCS customers who cancel service during each month in a
period by the total number of cellular/PCS customers at the beginning
of each month in that period.
(5) ARPU is defined as cellular/PCS service revenues during the period
divided by average cellular/PCS customers during the period.
(6) Total Minutes Of Use Per Cellular/PCS Subscriber definition was
changed effective with the 2Q05 reporting period. Prior to the
change, the numerator was defined as Local Minutes of Use. Effective
with this change, the numerator is now defined as including Local
Minutes of Use and Outcollect Minutes of Use.
(7) Licensed POPs refers to the number of people residing in areas where
we and our partners have licenses to provide cellular or PCS service
including areas where we have not yet commenced service.
(8) Penetration calculation for 2Q05 is based on licensed "operational"
POP's of 286 million.
(9) Capital expenditures reflect GAAP disclosure and accordingly do not
include cash/capital contributed to our previous joint ventures with
T-Mobile and AT&T Wireless (pre-merger).
Cingular Wireless LLC
Normalized Earnings Summary and Reconciliation to Reported Results
(amounts in millions)
Quarter Ended June 30, 2005 Normalized Item
Integration
GAAP Costs(1) Normalized
Operating revenues:
Service revenues $7,719 $0 $7,719
Equipment sales 890 - 890
Total operating revenues 8,609 - 8,609
Operating expenses:
Cost of services 2,293 (19) 2,274
Cost of equipment sales 1,230 - 1,230
Selling, general and
administrative 2,953 (76) 2,877
Depreciation and amortization * 1,629 (109) 1,520
Total operating expenses 8,105 (204) 7,901
Operating income (loss) 504 204 708
Interest expense 326 - 326
Minority interest expense 41 - 41
Equity in net income (loss) of
affiliates 1 - 1
Other income (expense), net 33 - 33
Income (loss) before income tax and
cum. effect of acctng. chg. 171 204 375
Provision (benefit) for income taxes 24 34 58
Income (loss) before cumulative
effect of accounting change 147 170 317
Year to Date - June 30, 2005 Normalized Item
Integration
GAAP Costs(1) Normalized
Operating revenues:
Service revenues $15,138 $0 $15,138
Equipment sales 1,700 - 1,700
Total operating revenues 16,838 - 16,838
Operating expenses:
Cost of services 4,437 (22) 4,415
Cost of equipment sales 2,525 - 2,525
Selling, general and
administrative 5,954 (178) 5,776
Depreciation and amortization * 3,304 (109) 3,195
Total operating expenses 16,220 (309) 15,911
Operating income (loss) 618 309 927
Interest expense 664 - 664
Minority interest expense 57 - 57
Equity in net income (loss) of
affiliates 3 - 3
Other income (expense), net 53 - 53
Income (loss) before income tax and
cum. effect of acctng. chg. (47) 309 262
Provision (benefit) for income taxes 46 51 97
Income (loss) before cumulative
effect of accounting change (93) 258 165
Notes to Normalized Financial Data
* Results for the quarter ended June 30, 2005, include a reduction for
depreciation and amortization for prior quarters of $57 million ($47
million net income impact), in connection with valuation adjustments
recorded in the second quarter to assets acquired in the AT&T Wireless
acquisition. The valuation adjustments to the AT&T Wireless assets
were the result of integration plans approved in the second quarter of
2005 and adjustments to the preliminary purchase price allocation. Of
the $57 million reduction in depreciation and amortization expenses,
$23 million ($19 million net income) relates to the fourth quarter of
2004. The impacts are not included in our normalized integration
costs.
Our normalized earnings have been adjusted for the following:
(1) Tax-effected integration costs resulting from the Cingular acquisition
of AT&T Wireless.
Cingular Wireless LLC Income Statement, Normalized - amounts in millions
(unaudited)
Quarter Ended Year to Date
6/30/05 6/30/04 % Change 6/30/05 6/30/04 % Change
(Normal- (Restated) (Normal- (Restated)
ized) ized)
Operating revenues:
Service revenues $7,719 $3,833 101.4% $15,138 $7,416 104.1%
Equipment sales 890 354 151.4% 1,700 738 130.4%
Total operating
revenues 8,609 4,187 105.6% 16,838 8,154 106.5%
Operating expenses:
Cost of services 2,274 983 131.3% 4,415 1,938 127.8%
Cost of equipment
sales 1,230 505 143.6% 2,525 1,042 142.3%
Selling, general and
administrative 2,877 1,463 96.7% 5,776 2,835 103.7%
Depreciation and
amortization 1,520 565 169.0% 3,195 1,118 185.8%
Total operating
expenses 7,901 3,516 124.7% 15,911 6,933 129.5%
Operating income (loss) 708 671 5.5% 927 1,221 (24.1%)
Interest expense 326 199 63.8% 664 397 67.3%
Minority interest
expense 41 41 0.0% 57 68 (16.2%)
Equity in net income
(loss) of affiliates 1 (95) NM 3 (203) NM
Other income (expense),
net 33 1 NM 53 5 NM
Income (loss) before
income tax and cum.
effect of acctng. chg. 375 337 11.3% 262 558 (53.0%)
Provision (benefit) for
income taxes 58 (2) NM 97 4 NM
Income (loss) before
cumulative effect of
accounting change 317 339 (6.5%) 165 554 (70.2%)
Selected Financial and Operating Data for Cingular Wireless
- amounts in millions, except customer data in 000s
Quarter Ended Year to Date
6/30/05 6/30/04 % Change 6/30/05 6/30/04 % Change
(Normal- (Restated) (Normal- (Restated)
ized) ized)
(Amounts in millions,
except customer data
in 000s)
OIBDA - normalized(1) $2,228 $1,236 80.3% $4,122 $2,339 76.2%
OIBDA margin -
normalized(2) 28.9% 32.2% -330 BP 27.2% 31.5% -430 BP
Total Cellular/PCS
Customers(3) ** 51,596 25,044 106.0% 51,596 25,044 106.0%
Net Customer Additions
- Cellular/PCS ** 1,071 428 150.2% 2,490 982 153.6%
M&A Activity,
Partitioned Customers
and/or Other Adjs. ** 156 (2) (3) 35
Churn - Cellular/PCS
(4) ** 2.2% 2.7% -50 BP 2.2% 2.7% -50 BP
ARPU - Cellular/PCS
(5) ** $50.43 $50.75 (0.6%) $50.01 $49.54 0.9%
Minutes Of Use Per
Cellular/PCS
Subscriber(6) ** 704 568 23.9% 674 547 23.2%
Licensed POPs -
Cellular/PCS(7) ** 292 243 292 243
Penetration -
Cellular/PCS(8) ** 18.0% 11.1% 18.0% 11.1%
Capital Expenditures
(9) ** 2,188 783 179.4% 3,159 1,117 182.8%
Reconciliations of Non-GAAP Financial Measures to GAAP Financial Measures
- amounts in millions (unaudited)
Quarter Ended Year To Date
6/30/05 6/30/04 % Change 6/30/05 6/30/04 % Change
(Normal- (Restated) (Normal- (Restated)
ized) ized)
Income (loss) before
cumulative effect of
accounting change 317 339 (6.5%) 165 554 (70.2%)
Plus: Interest
expense 326 199 63.8% 664 397 67.3%
Plus: Minority
interest expense 41 41 0.0% 57 68 (16.2%)
Plus: Equity in net
loss of affiliates (1) 95 -101.1% (3) 203 -101.5%
Plus: Other, net (33) (1) NM (53) (5) NM
Plus: Provision
(benefit) for income
taxes 58 (2) NM 97 4 NM
Operating income (loss) 708 671 5.5% 927 1,221 (24.1%)
Plus: Depreciation
and amortization 1,520 565 169.0% 3,195 1,118 185.8%
OIBDA - normalized(1) $2,228 $1,236 80.3% $4,122 $2,339 76.2%
OIBDA margin(2) 27.6% 32.2% -460 BP 25.9% 31.5% -560 BP
Plus: OIBDA margin,
merger integration
expenses 1.3% - 1.3% -
OIBDA margin -
normalized 28.9% 32.2% -330 BP 27.2% 31.5% -430 BP
NM - Not Meaningful
** Metrics and calculations are not impacted by the 2Q05 and YTD 2005
normalization of merger integration costs.
On February 18, 2005, our management and the Audit Committee of the board
of directors of our Manager concluded that our financial statements for
fiscal periods ending December 31, 2000 through December 31, 2003 and the
first three interim periods of 2004 should be restated to correct certain
errors relating to accounting for operating leases and that such
previously filed financial statements should no longer be relied upon.
Additionally, our network infrastructure venture with T-Mobile USA, Inc.,
GSM Facilities LLC, accounted for under the equity method, reached a
similar conclusion with respect to operating leases, requiring correction
and restatement of the venture's previously issued financial statements
for the years ended December 31, 2003 and 2002. Please see our 2004 Form
10-K filed with the Securities and Exchange Commission on March 7, 2005
for further information.
Notes:
(1) OIBDA is defined as operating income (loss) before depreciation and
amortization. OIBDA differs from operating income (loss), as
calculated in accordance with GAAP, in it excludes depreciation and
amortization. It differs from net income (loss), as calculated in
accordance with GAAP, in that it excludes, as presented on our
Consolidated Statement of Income: (1) depreciation and amortization,
(2) interest expense, (3) minority interest expense, (4) equity in net
income (loss) of affiliates, (5) other, net, and (6) provision
(benefit) for income taxes. OIBDA does not give effect to cash used
for debt service requirements and thus does not reflect available
funds for distributions, reinvestment or other discretionary uses.
OIBDA is not presented as an alternative measure of operating results
or cash flows from operations, as determined in accordance with
generally accepted accounting principles. Our calculation
of OIBDA, as presented, may differ from similarly titled measures
reported by other companies.
(2) OIBDA margin is defined as OIBDA divided by service revenues.
(3) Cellular/PCS customers include customers served through reseller
agreements.
(4) Cellular/PCS churn is calculated by dividing the aggregate number of
cellular/PCS customers who cancel service during each month in a
period by the total number of cellular/PCS customers at the beginning
of each month in that period.
(5) ARPU is defined as cellular/PCS service revenues during the period
divided by average cellular/PCS customers during the period.
(6) Total Minutes Of Use Per Cellular/PCS Subscriber definition was
changed effective with the 2Q05 reporting period. Prior to the
change, the numerator was defined as Local Minutes of Use. Effective
with this change, the numerator is now defined as including Local
Minutes of Use and Outcollect Minutes of Use.
(7) Licensed POPs refers to the number of people residing in areas where
we and our partners have licenses to provide cellular or PCS service
including areas where we have not yet commenced service.
(8) Penetration calculation for 2Q05 is based on licensed "operational"
POP's of 286 million.
(9) Capital expenditures reflect GAAP disclosure and accordingly do not
include cash/capital contributed to our previous joint ventures with
T-Mobile and AT&T Wireless (pre-merger).
Cingular Wireless LLC Income Statement - amounts in millions
(unaudited)
Full Year
2002 3/31/2003 6/30/2003 9/30/2003 12/31/2003
(Restated)(Restated)(Restated)(Restated)(Restated)
Operating revenues:
Service revenues $13,922 $3,414 $3,643 $3,701 $3,559
Equipment sales 981 244 255 383 378
Total operating
revenues 14,903 3,658 3,898 4,084 3,937
Operating expenses:
Cost of services 3,594 849 921 1,035 970
Cost of equipment sales 1,535 396 451 606 578
Selling, general and
administrative 5,429 1,218 1,271 1,442 1,497
Depreciation and
amortization 1,849 488 508 521 572
Total operating
expenses 12,407 2,951 3,151 3,604 3,617
Operating income (loss) 2,496 707 747 480 320
Interest expense 911 225 230 197 204
Minority interest expense 123 24 35 25 17
Equity in net income (loss)
of affiliates (274) (74) (78) (90) (91)
Other income (expense), net 29 26 7 4 4
Income (loss) before income
tax and cum. effect of
acctng. chg. 1,217 410 411 172 12
Provision (benefit)
for income taxes 12 2 12 6 8
Income (loss) before
cumulative effect of
accounting change 1,205 408 399 166 4
Cingular Wireless LLC Income Statement - amounts in millions
(unaudited)
3/31/2004 6/30/2004 9/30/2004 12/31/2004
(Restated) (Restated) (Restated) (Revised)
Operating revenues:
Service revenues $3,583 $3,833 $3,873 $6,313
Equipment sales 384 354 419 806
Total operating
revenues 3,967 4,187 4,292 7,119
Operating expenses:
Cost of services 955 983 1,107 1,692
Cost of equipment sales 537 505 585 1,247
Selling, general and
administrative 1,372 1,463 1,567 2,947
Depreciation and
amortization 553 565 573 1,386
Total operating
expenses 3,417 3,516 3,832 7,272
Operating income (loss) 550 671 460 (153)
Interest expense 198 199 200 303
Minority interest expense 27 41 20 (2)
Equity in net income (loss) of
affiliates (108) (95) (98) (114)
Other income (expense), net 4 1 - 11
Income (loss) before income
tax and cum. effect of
acctng. chg. 221 337 142 (557)
Provision (benefit) for income
taxes 6 (2) - (62)
Income (loss) before cumulative
effect of accounting change 215 339 142 (495)
Cingular Wireless LLC Income Statement - amounts in millions
(unaudited)
3/31/2005 6/30/2005
Operating revenues:
Service revenues $7,419 $7,719
Equipment sales 810 890
Total operating revenues 8,229 8,609
Operating expenses:
Cost of services 2,144 2,293
Cost of equipment sales 1,295 1,230
Selling, general and
administrative 3,001 2,953
Depreciation and amortization 1,675 1,629
Total operating expenses 8,115 8,105
Operating income (loss) 114 504
Interest expense 338 326
Minority interest expense 16 41
Equity in net income (loss) of
affiliates 2 1
Other income (expense), net 20 33
Income (loss) before income tax and
cum. effect of acctng. chg. (218) 171
Provision (benefit) for income taxes 22 24
Income (loss) before cumulative
effect of accounting change (240) 147
Selected Financial and Operating Data for Cingular Wireless - amounts in
millions, except customer data in 000s
Full Year
2002 3/31/2003 6/30/2003 9/30/2003 12/31/2003
(Restated)(Restated)(Restated)(Restated)(Restated)
OIBDA (1) $4,345 $1,195 $1,255 $1,001 $892
OIBDA margin (2) 31.2% 35.0% 34.4% 27.0% 25.1%
Integration Costs $0 $0 $0 $0 $0
OIBDA - normalized $4,345 $1,195 $1,255 $1,001 $892
OIBDA margin - normalized 31.2% 35.0% 34.4% 27.0% 25.1%
Total Cellular/PCS
Customers (3) 21,925 22,114 22,640 23,385 24,027
Net Customer Additions -
Cellular/PCS 359 189 540 745 642
M&A Activity, Partitioned
Customers and/or Other Adjs. (32) - (14) - -
Churn - Cellular/PCS (4) 2.8% 2.6% 2.5% 2.8% 2.8%
ARPU - Cellular/PCS (5) $52.14 $51.07 $53.47 $52.80 $49.38
Minutes Of Use Per
Cellular/PCS Subscriber (6) 423 441 485 500 515
Licensed POPs - Cellular/
PCS (7) 219 235 236 236 236
Penetration - Cellular/
PCS (8) 10.1% 10.0% 10.2% 10.6% 10.8%
Total Cingular Interactive
Customers 817 835 788 788 789
Net Customer Additions -
Cingular Interactive 84 18 (47) - 1
Capital Expenditures (9) 3,085 327 668 773 966
Selected Financial and Operating Data for Cingular Wireless - amounts in
millions, except customer data in 000s
3/31/2004 6/30/2004 9/30/2004 12/31/2004
(Restated) (Restated) (Restated) (Revised)
OIBDA (1) $1,103 $1,236 $1,033 $1,233
OIBDA margin (2) 30.8% 32.2% 26.7% 19.5%
Integration Costs $0 $0 $43 $245
OIBDA - normalized $1,103 $1,236 $1,076 $1,478
OIBDA margin - normalized 30.8% 32.2% 27.8% 23.4%
Total Cellular/PCS
Customers(3) 24,618 25,044 25,672 49,109
Net Customer Additions -
Cellular/PCS 554 428 657 1,713
M&A Activity, Partitioned
Customers and/or Other Adjs. 37 (2) (29) 21,724
Churn - Cellular/PCS (4) 2.7% 2.7% 2.8% 2.6%
ARPU - Cellular/PCS (5) $48.30 $50.75 $50.25 $49.51
Minutes Of Use Per Cellular/
PCS Subscriber (6) 527 568 598 617
Licensed POPs - Cellular/
PCS (7) 240 243 243 290
Penetration - Cellular/
PCS (8) 10.9% 11.1% 11.4% 17.2%
Total Cingular Interactive
Customers 768 735 653 NA
Net Customer Additions -
Cingular Interactive (21) (33) (82) NA
Capital Expenditures (9) 334 783 634 1,698
Selected Financial and Operating Data for Cingular Wireless - amounts in
millions, except customer data in 000s
3/31/2005 6/30/2005
OIBDA (1) $1,789 $2,133
OIBDA margin (2) 24.1% 27.6%
Integration Costs $105 $204
OIBDA - normalized $1,894 $2,228
OIBDA margin - normalized 25.5% 28.9%
Total Cellular/PCS Customers (3) 50,369 51,596
Net Customer Additions - Cellular/PCS 1,419 1,071
M&A Activity, Partitioned Customers
and/or Other Adjs. (159) 156
Churn - Cellular/PCS (4) 2.2% 2.2%
ARPU - Cellular/PCS (5) $49.59 $50.43
Minutes Of Use Per Cellular/PCS
Subscriber (6) 642 704
Licensed POPs - Cellular/PCS (7) 292 292
Penetration - Cellular/PCS (8) 17.7% 18.0%
Total Cingular Interactive Customers NA NA
Net Customer Additions - Cingular
Interactive NA NA
Capital Expenditures (9) 971 2,188
Reconciliations of Non-GAAP Financial Measures to GAAP Financial
Measures - amounts in millions (unaudited)
Full Year
2002 3/31/2003 6/30/2003 9/30/2003 12/31/2003
(Restated)(Restated)(Restated)(Restated)(Restated)
Income (loss) before
cumulative effect of
accounting change 1,205 408 399 166 4
Plus: Interest expense 911 225 230 197 204
Plus: Minority interest
expense 123 24 35 25 17
Plus: Equity in net loss
of affiliates 274 74 78 90 91
Plus: Other, net (29) (26) (7) (4) (4)
Plus: Provision (benefit)
for income taxes 12 2 12 6 8
Operating income (loss) 2,496 707 747 480 320
Plus: Depreciation and
amortization 1,849 488 508 521 572
OIBDA (1) $4,345 $1,195 $1,255 $1,001 $892
Plus: Integration costs - - - - -
OIBDA - normalized (1) $4,345 $1,195 $1,255 $1,001 $892
Service revenues 13,922 3,414 3,643 3,701 3,559
Less: Mobitex data
revenues 189 55 53 54 58
Service revenues used to
calculate ARPU $13,733 $3,359 $3,590 $3,647 $3,501
Reconciliations of Non-GAAP Financial Measures to GAAP Financial
Measures - amounts in millions (unaudited)
3/31/2004 6/30/2004 9/30/2004 12/31/2004
(Restated) (Restated) (Restated) (Revised)
Income (loss) before cumulative
effect of accounting change 215 339 142 (495)
Plus: Interest expense 198 199 200 303
Plus: Minority interest
expense 27 41 20 (2)
Plus: Equity in net loss of
affiliates 108 95 98 114
Plus: Other, net (4) (1) - (11)
Plus: Provision (benefit)
for income taxes 6 (2) - (62)
Operating income (loss) 550 671 460 (153)
Plus: Depreciation and
amortization 553 565 573 1,386
OIBDA (1) $1,103 $1,236 $1,033 $1,233
Plus: Integration costs - - 43 245
OIBDA - normalized (1) $1,103 $1,236 $1,076 $1,478
Service revenues 3,583 3,833 3,873 6,313
Less: Mobitex data
revenues 58 59 54 36
Service revenues used to
calculate ARPU $3,525 $3,774 $3,819 $6,277
Reconciliations of Non-GAAP Financial Measures to GAAP Financial
Measures - amounts in millions (unaudited)
3/31/2005 6/30/2005
Income (loss) before cumulative
effect of accounting change (240) 147
Plus: Interest expense 338 326
Plus: Minority interest expense 16 41
Plus: Equity in net loss of
affiliates (2) (1)
Plus: Other, net (20) (33)
Plus: Provision (benefit) for
income taxes 22 24
Operating income (loss) 114 504
Plus: Depreciation and
amortization 1,675 1,629
OIBDA (1) $1,789 $2,133
Plus: Integration costs 105 95
OIBDA - normalized (1) $1,894 $2,228
Service revenues 7,419 7,719
Less: Mobitex data revenues 18 20
Service revenues used to calculate
ARPU $7,401 $7,699
On February 18, 2005, our management and the Audit Committee of the board
of directors of our Manager concluded that our financial statements for
fiscal periods ending December 31, 2000 through December 31, 2003 and the
first three interim periods of 2004 should be restated to correct certain
errors relating to accounting for operating leases and that such
previously filed financial statements should no longer be relied upon.
Additionally, our network infrastructure venture with T-Mobile USA,
Inc., GSM Facilities LLC, accounted for under the equity method, reached a
similar conclusion with respect to operating leases, requiring correction
and restatement of the venture's previously issued financial statements
for the years ended December 31, 2003 and 2002. Please see our 2004 Form
10-K filed with the Securities and Exchange Commission on March 7, 2005
for further information.
In 2003, to be consistent with industry practices, historical consolidated
statements of income for all periods presented were reclassified to
reflect billings to our customers for the Universal Service Fund (USF) and
other regulatory fees as operating revenues and the costs related to
payments into the associated regulatory funds as operating expenses.
Similar reclassifications have also been made to 2003 and 2004 historical
results for certain gross receipts taxes and other fees which are billed
to our customers. Operating income and net income for all periods were
unaffected.
Notes:
(1) OIBDA is defined as operating income (loss) before depreciation
and amortization. OIBDA differs from operating income (loss), as
calculated in accordance with GAAP, in it excludes depreciation and
amortization. It differs from net income (loss), as calculated in
accordance with GAAP, in that it excludes, as presented on our
Consolidated Statement of Income: (1) depreciation and amortization,
(2) interest expense, (3) minority interest expense, (4) equity in net
income (loss) of affiliates, (5) other, net, and (6) provision
(benefit) for income taxes. OIBDA does not give effect to cash used
for debt service requirements and thus does not reflect available
funds for distributions, reinvestment or other discretionary uses.
OIBDA is not presented as an alternative measure of operating results
or cash flows from operations, as determined in accordance with
generally accepted accounting principles. Our calculation of OIBDA,
as presented, may differ from similarly titled measures reported by
other companies.
(2) OIBDA margin is defined as OIBDA divided by service revenues.
(3) Cellular/PCS customers include customers served through reseller
agreements.
(4) Cellular/PCS churn is calculated by dividing the aggregate number of
cellular/PCS customers who cancel service during each month in a
period by the total number of cellular/PCS customers at the beginning
of each month in that period.
(5) ARPU is defined as cellular/PCS service revenues during the period
divided by average cellular/PCS customers during the period.
(6) Total Minutes Of Use Per Cellular/PCS Subscriber definition was
changed effective with the 2Q05 reporting period. Prior to the
change, the numerator was defined as Local Minutes of Use. Effective
with this change, the numerator is now defined as including Local
Minutes of Use and Outcollect Minutes of Use.
(7) Licensed POPs refers to the number of people residing in areas
where we and our partners have licenses to provide cellular or PCS
service including areas where we have not yet commenced service.
(8) Penetration calculation for 2Q05 is based on licensed "operational"
POP's of 286 million.
(9) Capital expenditures reflect GAAP disclosure and accordingly do not
include cash/capital contributed to our previous joint ventures with
T-Mobile and AT&T Wireless (pre-merger).
Cingular Wireless LLC Income Statement, Normalized
- amounts in millions (unaudited)
The normalized financial data presented below exclude the impact of
integration costs are one-time cash outlays, or specified non-cash charges,
directly related to the acquisition of AT&T Wireless. These costs would not
have been incurred if not for the acquisition, as they support the utilization
and/or disposal of the acquired assets. Integration costs are separately
identifiable from business as usual outlays. In connection with certain
rationalization plans approved by management, costs were recognized in the
income statement during the second quarter of 2005 for exiting certain
activities of Cingular. Purchase accounting impacts of the AT&T Wireless
acquisition are not included in integration costs.
Examples of merger integration costs impacting expenses include (but are
not limited to) the following:
* Network rationalization (write-offs and accelerated depreciation
related to certain "overlap" network assets)
* Sales distribution optimization (lease terminations, leasehold
improvement write-offs/accelerated depreciation)
* Workforce rationalization (severance, relocation, retention)
* IT System/Application rationalization (system/platform consolidation,
contract termination fees, third party support)
* Real Estate space rationalization (lease terminations, leasehold
improvements write-offs and accelerated depreciation, contract
termination fees)
Normalized
12/31/2004 3/31/2005 6/30/2005
Operating revenues: (Revised)
Service revenues $6,313 $7,419 $7,719
Equipment sales 806 810 890
Total operating revenues 7,119 8,229 8,609
Operating expenses:
Cost of services 1,685 2,141 2,274
Cost of equipment sales 1,244 1,295 1,230
Selling, general and
administrative 2,712 2,899 2,877
Depreciation and amortization 1,386 1,675 1,520
Total operating expenses 7,027 8,010 7,901
Operating income 92 219 708
Interest expense 303 338 326
Minority interest expense (2) 16 41
Equity in net income (loss) of
affiliates (114) 2 1
Other income (expense), net 11 20 33
Income (loss) before income tax and
cum. effect of acctng. chg. (312) (113) 375
Provision for income taxes (27) 39 58
Income (loss) before cumulative
effect of accounting change (285) (152) 317
Selected Financial and Operating Data for Cingular Wireless
- amounts in millions, except customer data in 000s
Normalized
12/31/2004 3/31/2005 6/30/2005
(Revised)
OIBDA(1) (in millions) $1,478 $1,894 $2,228
OIBDA margin(2) 23.4% 25.5% 28.9%
Total Cellular/PCS Customers(3)
(000's) 49,109 50,369 51,596
Net Customer Additions - Cellular/PCS
(000's) 1,713 1,419 1,071
M&A Activity, Partitioned Customers
and/or Other Adjs. (000's) 21,724 (159) 156
Churn - Cellular/PCS(4) 2.6% 2.2% 2.2%
ARPU - Cellular/PCS(5) $49.51 $49.59 $50.43
Reconciliations of Non-GAAP Financial Measures to GAAP Financial Measures
- amounts in millions (unaudited)
Normalized
12/31/2004 3/31/2005 6/30/2005
(Revised)
Income (loss) before cumulative
effect of accounting change (285) (152) 317
Plus: Interest expense 303 338 326
Plus: Minority interest expense (2) 16 41
Plus: Equity in net (income) loss
of affiliates 114 (2) (1)
Plus: Other, net (11) (20) (33)
Plus: Provision for income taxes (27) 39 58
Operating income 92 219 708
Plus: Depreciation and
amortization 1,386 1,675 1,520
OIBDA(1) 1,478 1,894 2,228
Service revenues 6,313 7,419 7,719
Less: Mobitex data revenues 36 18 20
Service revenues used to calculate
ARPU $6,277 $7,401 $7,699
Notes:
(1) OIBDA is defined as operating income (loss) before depreciation and
amortization. OIBDA differs from operating income (loss), as
calculated in accordance with GAAP, in it excludes depreciation and
amortization. It differs from net income (loss), as calculated in
accordance with GAAP, in that it excludes, as presented on our
Consolidated Statement of Income: (1) depreciation and amortization,
(2) interest expense, (3) minority interest expense, (4) equity in net
income (loss) of affiliates, (5) other, net, and (6) provision
(benefit) for income taxes. OIBDA does not give effect to cash used
for debt service requirements and thus does not reflect available
funds for distributions, reinvestment or other discretionary uses.
OIBDA is not presented as an alternative measure of operating results
or cash flows from operations, as determined in accordance with
generally accepted accounting principles. Our calculation of OIBDA,
as presented, may differ from similarly titled measures reported by
other companies.
(2) OIBDA margin is defined as OIBDA divided by service revenues.
(3) Cellular/PCS customers include customers served through reseller
agreements.
(4) Cellular/PCS customer churn is calculated by dividing the aggregate
number of cellular/PCS customers who cancel service during each month
in a period by the total number of cellular/PCS customers at the
beginning of each month in that period.
(5) ARPU is defined as cellular/PCS service revenues during the period
divided by average cellular/PCS customers during the period.
Cingular Wireless LLC Balance Sheet - amounts in millions (unaudited)
6/30/2005 12/31/2004 Incr(Decr) % +/-
(audited)
Assets (Revised)
Current assets:
Cash and cash equivalents 267 352 (85) (24.1%)
Accounts receivable - net of
allowance for
doubtful accounts 3,468 3,448 20 0.6%
Inventories 543 690 (147) (21.3%)
Prepaid expenses and other current
assets 821 1,080 (259) (24.0%)
Total current assets 5,099 5,570 (471) (8.5%)
Property, plant and equipment - net 21,749 21,958 (209) (1.0%)
Intangible assets - net 50,846 51,338 (492) (1.0%)
Other assets 2,868 3,372 (504) (14.9%)
Total assets 80,562 82,238 (1,676) (2.0%)
Liabilities and members' capital
Current liabilities:
Debt maturing within one year 1,257 2,158 (901) (41.8%)
Accounts payable and accrued
liabilities 6,818 5,825 993 17.0%
Total current liabilities 8,075 7,983 92 1.2%
Long-term debt to affiliates 9,327 9,628 (301) (3.1%)
Long-term debt to external parties 13,158 14,229 (1,071) (7.5%)
Total long-term debt 22,485 23,857 (1,372) (5.8%)
Other noncurrent liabilities 4,914 5,253 (339) (6.5%)
Minority interests in consolidated
entities 526 609 (83) (13.6%)
Members' capital 44,562 44,536 26 0.1%
Total liabilities and members'
capital 80,562 82,238 (1,676) (2.0%)
On February 18, 2005, our management and the Audit Committee of the board
of directors of our Manager concluded that our financial statements for fiscal
periods ending December 31, 2000 through December 31, 2003 and the first three
interim periods of 2004 should be restated to correct certain errors relating
to accounting for operating leases and that such previously filed financial
statements should no longer be relied upon. Additionally, our network
infrastructure venture with T.Mobile USA, Inc., GSM Facilities LLC, accounted
for under the equity method, reached a similar conclusion with respect to
operating leases, requiring correction and restatement of the venture's
previously issued financial statements for the years ended December 31, 2003
and 2002. Please see our 2004 Form 10-K filed with the Securities and
Exchange Commission on March 7, 2005 for further information.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEMFDSSISEEW
British Smaller Companie... (LSE:BSC)
Historical Stock Chart
From Jun 2024 to Jul 2024
British Smaller Companie... (LSE:BSC)
Historical Stock Chart
From Jul 2023 to Jul 2024
