BellSouth Corporation
(Amounts in millions) (unaudited)
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Cingular Wireless - (Pro Forma Combined Statements of Income - Normalized)
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In October 2000, BellSouth combined substantially all of its domestic wireless
operations with those of SBC Communications to form Cingular Wireless. In the
following table, we present 100% Cingular Pro Forma Income and Operating data.
We believe that this presentation provides meaningful comparative information
for existing operations; we cannot, however, assure you that the amounts shown
below would have been achieved if Cingular had actually been in operation during
the periods presented.
Quarter Ended
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3/31/01 3/31/00 % Change
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Operating Revenues
Service Revenues $3,065 $2,669 14.8%
Equipment Revenues 268 240 11.7%
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Total Operating Revenues 3,333 2,909 14.6%
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Operating Expenses
Operational and Support 2,361 1,976 19.5%
Depreciation and Amortization 474 495 (4.2%)
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Total Operating Expenses 2,835 2,471 14.8%
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Operating Income 498 438 13.6%
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Interest Expense 207 214 (3.2%)
Other Income (Expense), Net 53 (26) N/M
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Income Before Income Tax 344 198 73.6%
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Selected Financial and Operating Data
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Quarter Ended
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3/31/01 3/31/00 % Change
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EBITDA $972 $933 4.2%
EBITDA margin (1) 31.7% 35.0% -330bps
Total Cellular/PCS Customers (000) 20,535 17,294 18.7%
Net Customer Additions - Cellular/PCS (000) 000 000 00.9%
Wireless Service ARPU - Cellular/PCS (2) $50.32 $52.24 (3.7%)
POPs - Cellular/PCS 192 192 0.0%
Penetration - Cellular/PCS 10.7% 9.0% +170bps
Total Cingular Interactive
Customers (000) 657 302 117.8%
Net Customers Additions - Cingular
Interactive (000) 84 79 5.2%
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Notes:
1 EBITDA margin denominator includes Wireless Service Revenues only
2 ARPU excludes Cingular Interactive
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BellSouth Corporation
Cingular Wireless
Pro Forma Consolidated Balance Sheet
Dollars in millions
Unaudited
As of
3/31/01
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Assets
Current Assets
Cash and cash equivalents 163
Accounts receivable - net of allowances for
uncollectibles 1,523
Inventory 206
Prepaid expenses and other current assets 129
Total current assets 2,021
Property, Plant and Equipment - Net 8,505
Intangible Assets - Net 8,985
Other Assets 611
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Total Assets 20,122
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Liabilities and Partners' Equity
Current Liabilities
Debt maturing within one year 816
Accounts payable and accrued liabilities 2,887
Total current liabilities 3,703
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Long-Term Debt to Affiliates 9,876
Long-Term Debt to External Parties 867
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Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes 187
Minority interest 572
Other noncurrent liabilities 193
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Total deferred credits and other noncurrent
liabilities 952
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Partners' Capital 4,724
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Total Liabilities and Partners' Capital 20,122
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