AirTouch Communications reports record customer growth and strong earnings for 1994; Company adds 224,000 U.S. cellular subscribers in 4th Quarter.SAN FRANCISCO--(BUSINESS WIRE)--Feb. 1, 1995--AirTouch Communications, Inc. (NYSE NYSE See: New York Stock Exchange :ATI (ATI Technologies Inc., Markham Ontario, http://ati.amd.com) A leading manufacturer of graphics chips and display adapters. Founded in 1985 by K. Y. Ho, Benny Lau and Lee Lau, ATI chips and boards are widely used by OEMs. ) today reported strong growth in subscribers, net income, and proportionate pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. for the year ended December December: see month. 31, 1994. The company added a record 514,000 proportionate domestic cellular customers during the year, reaching a total of 1.56 million, up 49 percent over 1993. Proportionate international cellular subscribers grew to 388,000, up 143 percent over the end of 1993. Net income for the year was $98.1 million, an increase of 184 percent over last year's $34.5 million. Fourth quarter net income was $3.1 million, down 79 percent from the $14.6 million reported for the same period last year. Earnings during the fourth quarter were affected by costs associated with the company's strong subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. growth. Earnings per share for 1994 were $0.20, up 150 percent over last year's $0.08 earnings per share. Customer acquisition costs stemming from record growth during the fourth quarter reduced earnings per share for the quarter to $0.01, compared to $0.03 for the fourth quarter of 1993. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the year were $1.136 billion, up 15 percent over the $988 million reported for 1993. However, these results are not comparable. In September September: see month. of 1993, AirTouch AirTouch Communications was a U.S.-based wireless service provider that was created when PacTel Cellular was spun off from Pacific Telesis on April 1, 1994, forming both AirTouch Cellular and AirTouch Paging. formed a joint venture which resulted in a change in its method of reporting cellular results for the San Francisco Bay Area “Bay Area” redirects here. For other uses, see Bay Area (disambiguation). The San Francisco Bay Area, colloquially known as the Bay Area or The Bay . Due to this change, revenues for the Bay Area properties are no longer included in consolidated revenues. Consolidated net operating revenues for the fourth quarter rose to $309 million, up 32 percent over the $235 million reported in the fourth quarter of 1993. Proportionate Results For the year, total proportionate net operating revenues were $1.725 billion, up 41 percent over the $1.226 billion reported in 1993. Proportionate accounting reflects the relative weight of the company's ownership interests in most of its domestic and international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , and can facilitate the understanding of its financial results. Total proportionate net operating revenues for the fourth quarter were $498 million, a 41 percent increase over the $353 million for the fourth quarter of 1993. Total proportionate cellular and paging customers in domestic and international markets rose to 3.6 million, an increase of 45 percent over the 2.5 million customers at the end of 1993. During 1994, new AirTouch cellular ventures launched service in Belgium Belgium (bĕl`jəm), Du. België, Fr. La Belgique, officially Kingdom of Belgium, constitutional kingdom (2005 est. pop. 10,364,000), 11,781 sq mi (30,513 sq km), NW Europe. and three major cities in Japan This is a list of cities in Japan. For more information about cities in Japan see Municipality of Japan. Note that Tokyo is actually a special kind of prefecture not a city. Most large cities in Japan are cities designated by government ordinance. . "Record customer growth. That characterizes our worldwide performance during the past year," said Sam (1) (Security Accounts Manager) The part of Windows NT that manages the database of usernames, passwords and permissions. A SAM resides in each server as well as in each domain controller. See PDC and trust relationship. Ginn, chairman and chief executive officer of AirTouch Communications. "1994 -- our first year as a public company -- was truly remarkable. We continued to increase shareholder value and expand our presence around the world by winning new licenses, entering into strategic alliances, and aggressively growing our customer base. "Such rapid growth does not occur without a cost. During the fourth quarter, all our domestic cellular markets dramatically increased their subscriber bases, resulting in higher customer acquisition costs. And that combination was true around the world, as we experienced strong customer growth in our new international markets. We expect that this expansion, as well as the investments we're we're Contraction of we are. we're we are making in Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. , South Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. , Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. and Belgium, will pay off in the future, helping to ensure our continued position as a worldwide leader in the wireless industry." Proportionate Domestic Cellular --The company added 224,000 customers during the fourth quarter -- its best quarterly growth ever -- for a total of 1.56 million customers. --Proportionate net operating revenues for the year were $1.142 billion, up 28 percent over 1993. --Proportionate operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the year was $293 million, up 37 percent over 1993, and for the fourth quarter was $52 million, up 2 percent over the same quarter last year. --Proportionate operating cash flow (operating income plus depreciation and amortization) for 1994 rose to $479 million, a 26 percent increase over the previous year. For the fourth quarter of 1994, operating cash flow was $102 million, up 6 percent from 1993. Domestic Paging --Units in service grew 358,000 during the year to 1.525 million, up 31 percent over the end of 1993. --Operating income for 1994 rose to $30 million, an increase of 50 percent over the prior year, and for the quarter was up 33 percent over 1993. --Operating cash flow for the year totaled $66 million, increasing 32 percent over 1993. For the fourth quarter, operating cash flow was $17 million, up 19 percent over the same period last year. --The company recently began operating in Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. , Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , Cleveland Cleveland, former county, England Cleveland, former county, NE England, created under the Local Government Act of 1972 (effective 1974). It was composed of the county boroughs of Hartlepool and Teeside and parts of the former counties of Durham and , Cincinnati Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. , and Columbus, Ohio Columbus is the capital and the largest city of the American state of Ohio. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816. , and now serves over 120 markets in 17 states. International Operations --AirTouch's total proportionate international cellular subscribers rose to 388,000, up 143 percent over the prior year. This growth reflects, for the first time, the company's 25 percent stake in Belgacom The Belgacom Group, composed of Belgacom NV/SA and its subsidiaries, is the leading telecommunications company in Belgium. Group structure The Group is divided into three main fields of activity:
--In Japan, at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. AirTouch served over 180,000 cellular customers through its ventures in Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. , Osaka Osaka (ō`säkä), city (1990 pop. 2,623,801), capital of Osaka prefecture, S Honshu, Japan, on Osaka Bay, at the mouth of the Yodo River. and Nagoya Nagoya (nä'gō`yä), city (1990 pop. 2,154,793), capital of Aichi prefecture, central Honshu, Japan, on Ise Bay. A major port, transportation hub, and industrial center, it has iron- and steelworks, textile mills, aircraft factories, . All three companies launched service during 1994. --In Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , MMO had approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 850,000 customers at the end of December -- a 72 percent increase over 1993 year-end. --NordicTel, the Swedish cellular provider in which AirTouch owns a 51 percent interest, reported 70,000 customers at the end of 1994. The company's subscriber base grew 52 percent during the fourth quarter. --In Belgium, Belgacom Mobile reported nearly 70,000 digital subscribers and about 60,000 analog subscribers at the end of the year. The digital network began service on January January: see month. 1, 1994. --Telecel, the Portuguese cellular venture in which AirTouch holds a 23 percent stake, reported over 85,000 subscribers at the end of the year -- up more than 100 percent over year- end 1993. --During 1994, AirTouch consortia were awarded digital cellular licenses in Italy, South Korea and Spain, and AirTouch's French venture launched the world's first commercial paging system using the ERMES ERMES European Radio Messaging System ERMES Enhanced Roaming Messaging System ERMES European Radio Message System digital standard. Financial Outlook In 1994, the company was very successful in winning new international licenses and building the framework and partnerships necessary to become a major player in the wireless industry. For 1995, the company's financial results will break out the impact of international cellular start-ups and the build-out Build-out is an urban planner’s estimate of the amount and location of potential development for an area. Build-out is one step of the land use planning process. Evaluation of potential development impacts begins with a build-out analysis. and start-up Start-up The earliest stage of a new business venture. of any Personal Communications Services See PCS. (PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. ) licenses acquired in the FCC's current auctions. This presentation should provide a clearer understanding of growth from ongoing activities and the dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). from start-up activities over the next several years. In 1995, AirTouch expects continued strong growth from domestic cellular operations and positive income, on a combined basis, from currently operational international systems. However, the operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. associated with the construction and build-out of the company's cellular systems in Italy, South Korea and Spain are expected to be substantial. If the company is successful pursuing PCS or new international licenses, its earnings would be further adversely affected over the next several years, as those systems are built and begin operation. As a result of the company's strong domestic cellular growth, the deployment of CDMA (Code Division Multiple Access) A method for transmitting simultaneous signals over a shared portion of the spectrum. The foremost application of CDMA is the digital cellular phone technology from QUALCOMM that operates in the 800 MHz band and 1.9 GHz PCS band. digital technology, and certain operational system enhancements, consolidated GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). capital expenditures (excluding acquisitions and capital calls) are likely to rise significantly in 1995. The company expects that capital expenditures for its domestic cellular operations alone will be over $400 million for the year. In 1995, the company expects to seek external debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay . Substantial capital will be required to build-out and pay for licenses that may be won in the PCS auctions and for the build-out of Italy, South Korea and Spain. In addition, the company is required to purchase up to $720 million in equity of Cellular Communications Inc. (COMMA comma: see punctuation. In programming, the comma (,) is used to separate values in a function call. For example, in the C statement printf ("The result is %s\n", amount); the comma separates the display string from the name of the variable. ) in October October: see month. 1995. AirTouch Communications is involved in cellular, paging, and vehicle location in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and international ventures in many of the world's top markets, including Japan, Germany, Sweden Sweden, Swed. Sverige, officially Kingdom of Sweden, constitutional monarchy (2005 est. pop. 9,002,000), 173,648 sq mi (449,750 sq km), N Europe, occupying the eastern part of the Scandinavian peninsula. , France, Spain, Portugal Portugal (pôr`chəgəl), officially Portuguese Republic, republic (2005 est. pop. 10,566,000), 35,553 sq mi (92,082 sq km), SW Europe, on the western side of the Iberian Peninsula and including the Madeira Islands and the Azores in the , Belgium, Italy, South Korea, and Thailand Thailand (tī`lănd, –lənd), Thai Prathet Thai [land of the free], officially Kingdom of Thailand, constitutional monarchy (2005 est. pop. 65,444,000), 198,455 sq mi (514,000 sq km), Southeast Asia. . The company, which is based in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , serves nearly 3.6 million customers worldwide. -0-
AIRTOUCH COMMUNICATIONS
FINANCIAL PERFORMANCE
(Unaudited)
(Dollars in millions, except per 4TH QTR 4TH QTR %
share information) 1994 1993 CHANGE
OPERATING REVENUES
Wireless services & other revenues $310.3 $238.8 29.9 %
Cellular and paging equipment sales 30.9 18.7 65.2 %
Cost of cellular & paging equipment
sales (31.9) (22.8) 39.9 %
TOTAL NET OPERATING REVENUES 309.3 234.7 31.8 %
OPERATING EXPENSES
Cost of revenues 44.3 32.4 36.7 %
Selling & customer operations
expenses 136.9 81.2 68.6 %
General, administrative & other
expenses 76.2 67.1 13.6 %
Depreciation & amortization 57.9 44.3 30.7 %
TOTAL OPERATING EXPENSES 315.3 225.0 40.1 %
OPERATING INCOME (6.0) 9.7 (161.9)%
Interest expense (5.1) (1.8) 183.3 %
Minority interests in net income
of consolidated partnerships &
corporations 2.5 (3.4) (173.5)%
Equity in net income (loss) of
unconsolidated partnerships &
corporations:
Domestic 25.3 25.8 (1.9)%
International (7.8) (8.0) 2.5 %
Interest income 15.4 3.8 305.3 %
Miscellaneous income (expense) 0.2 6.7 (97.0)%
INCOME BEFORE INCOME TAXES
AND CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 24.5 32.8 (25.3)%
Income taxes 21.4 18.2 17.6 %
NET INCOME $3.1 $14.6 (78.8)%
EARNINGS PER SHARE
Net Income $0.01 $0.03 (66.7)%
Weighted average number of shares
outstanding (in millions) 493.8 446.3
AIRTOUCH COMMUNICATIONS
FINANCIAL PERFORMANCE
(Unaudited)
For the year ended
December 31,
(Dollars in millions, except per %
share information) 1994 1993 CHANGE
OPERATING REVENUES
Wireless services & other revenues $1,139.0 $987.3 15.4 %
Cellular & paging equipment sales 96.4 70.4 36.9 %
Cost of cellular & paging equipment
sales (99.2) (69.7) 42.3 %
TOTAL NET OPERATING REVENUES 1,136.2 988.0 15.0 %
OPERATING EXPENSES
Cost of revenues 155.9 144.0 8.3 %
Selling & customer operations
expenses 389.8 291.3 33.8 %
General, administrative & other
expenses 312.6 250.3 24.9 %
Depreciation & amortization 205.3 174.2 17.9 %
TOTAL OPERATING EXPENSES 1,063.6 859.8 23.7 %
OPERATING INCOME 72.6 128.2 (43.4)%
Interest expense (10.3) (22.1) (53.4)%
Minority interests in net income
of consolidated partnerships &
corporations (16.3) (46.4) (64.9)%
Equity in net income (loss) of
unconsolidated partnerships &
corporations:
Domestic 125.4 70.4 78.1 %
International (14.7) (37.5) 60.8 %
Interest income 54.7 12.0 355.8 %
Miscellaneous income (expense) (5.0) 3.3 (251.5)%
INCOME BEFORE INCOME TAXES
AND CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 206.4 107.9 91.3 %
Income taxes 108.3 67.8 59.7 %
INCOME (LOSS) BEFORE
CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 98.1 40.1 144.6 %
Cumulative effect of accounting
change for other postretirement
benefits (net of income taxes of
$3.5) 0.0 (5.6)
NET INCOME $98.1 $34.5 184.3 %
EARNINGS PER SHARE
Income before cumulative effect of
accounting change $0.20 $0.09 122.2 %
Cumulative effect of accounting
change 0.00 (0.01)
Net Income $0.20 $0.08 150.0 %
Weighted average number of shares
outstanding (in millions) 493.4 429.6
AIRTOUCH COMMUNICATIONS
CONSOLIDATED BALANCE SHEETS
(Unaudited)
%
(Dollars in millions) 12/31/94 12/31/93 CHANGE
ASSETS
Cash & cash equivalents $426.1 $646.7 (34.1)%
Accounts receivable--net 173.3 137.0 26.5 %
Held-to-maturity investments 313.5 814.0 (61.5)%
Available-for-sale securities 110.3 0.0
Other receivables 63.9 15.1 323.2 %
Due from affiliates 25.9 0.0
Other current assets 162.9 48.0 239.4 %
TOTAL CURRENT ASSETS 1,275.9 1,660.8 (23.2)%
Property, plant, & equipment 1,560.7 1,175.5 32.8 %
Less: accumulated depreciation 585.4 433.4 35.1 %
Property, plant, & equipment--net 975.3 742.1 31.4 %
Investments in unconsolidated
partnerships & corporations 1,697.9 1,154.5 47.1 %
Intangible assets--net 470.5 413.2 13.9 %
Deferred charges & other
noncurrent assets 68.4 106.1 (35.5)%
TOTAL ASSETS $4,488.0 $4,076.7 10.1 %
LIABILITIES AND SHAREHOLDERS'
EQUITY
Accounts payable 202.9 185.2 9.6 %
Short-term borrowings 80.0 2.4 3233.3 %
Other current liabilities 246.9 126.4 95.3 %
TOTAL CURRENT LIABILITIES 529.8 314.0 68.7 %
Due to non-affiliates 120.2 68.6 75.2 %
Deferred income taxes 209.2 197.6 5.9 %
Deferred credits 39.4 54.1 (27.2)%
TOTAL LIABILITIES 898.6 634.3 41.7 %
COMMITMENTS AND CONTINGENCIES.
MINORITY INTERESTS IN
CONSOLIDATED PARTNERSHIPS
AND CORPORATIONS 129.8 105.1 23.5 %
Common stock 4.9 4.9
Additional paid-in capital 3,730.4 3,719.5 0.3 %
Accumulated deficit (290.0) (387.9) 25.2 %
Currency translation adjustment 11.1 0.8
Other 3.2 0.0
TOTAL SHAREHOLDERS' EQUITY 3,459.6 3,337.3 3.7 %
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $4,488.0 $4,076.7 10.1 %
AIRTOUCH COMMUNICATIONS OPERATING DATA (1)
TOTAL COMPANY
(Dollars in millions & operating 4TH QTR 4TH QTR %
data in thousands) 1994 1993 CHANGE
Consolidated capital expenditures, $152.4 $84.3 80.8 %
excluding acquisitions & capital
calls (GAAP basis)
Total proportionate net operating
revenues (8) $497.8 $353.0 41.0 %
Total proportionate operating
income (8) $51.6 $15.3 237.3 %
Total proportionate operating cash
flow (2) & (8) $140.6 $95.2 47.7 %
Total proportionate cellular
POPs (3) & (6) 99,120 75,290 31.7 %
Total proportionate cellular
subscribers (4) 1,948 1,206 61.5 %
Total proportionate paging units
in service 1,647 1,269 29.8 %
PROPORTIONATE CELLULAR OPERATIONS
DOMESTIC OPERATING RESULTS 4TH QTR 4TH QTR %
(Dollars in millions) 1994 1993 CHANGE
Service & other revenues $310.8 $251.4 23.6 %
Equipment sales 25.3 13.5 87.4 %
Cost of equipment sales (27.0) (16.9) 59.8 %
Net operating revenues 309.1 248.0 24.6 %
Cost of revenues 33.6 29.1 15.5 %
Selling & customer operations 140.6 94.0 49.6 %
General, administrative & other
expenses 33.1 28.9 14.5 %
Depreciation expense 42.0 40.0 5.0 %
Amortization expense 7.7 4.7 63.8 %
Total costs & expenses 257.0 196.7 30.7 %
Operating income $52.1 $51.3 1.6 %
Operating cash flow (2) $101.8 $96.0 6.0 %
Operating cash flow margin 32.9% 38.7% (15.0)%
Capital expenditures, excluding
acquisitions $99.1 $69.2 43.2 %
4TH QTR 4TH QTR %
OPERATING DATA (In thousands) 1994 1993 CHANGE
Domestic:
Total POPs (3) 35,002 34,889 0.3 %
Proportionate subscribers 1,560 1,046 49.1 %
International:
POPs (3) & (6) 64,118 40,401 58.7 %
Proportionate subscribers (4) 388 160 142.5 %
PAGING OPERATIONS
DOMESTIC OPERATING RESULTS (5) 4TH QTR 4TH QTR %
(Dollars in millions) 1994 1993 CHANGE
Service & other revenues $48.8 $40.2 21.4 %
Equipment sales 11.0 10.0 10.0 %
Cost of equipment sales (9.5) (10.0) (5.0)%
Net operating revenues 50.3 40.2 25.1 %
Total operating expenses before
depreciation & amortization
expense 33.2 25.8 28.7 %
Depreciation & amortization expense 9.8 8.9 10.1 %
Operating Income $7.3 $5.5 32.7 %
Operating cash flow (2) $17.1 $14.4 18.8 %
Operating cash flow margin 34.0% 35.8% (5.0)%
Capital expenditures, excluding
acquisitions $18.0 $15.8 13.9 %
4TH QTR 4TH QTR %
OPERATING DATA (In thousands) 1994 1993 CHANGE
Domestic (5):
Units in service 1,525 1,167 30.7 %
International:
Proportionate units in
service (4) 122 102 19.6 %
See footnotes
AIRTOUCH COMMUNICATIONS OPERATING DATA (1)
TOTAL COMPANY
For the year ended
(Dollars in millions & operating December 31, %
data in thousands) 1994 1993 CHANGE
Consolidated capital expenditures, $408.7 $225.9 80.9 %
excluding acquisitions & capital
calls (GAAP basis)
Total proportionate net operating $1,725.1 $1,226.1 40.7 %
revenues (8)
Total proportionate operating
income (8) $218.9 $97.6 124.3 %
Total proportionate operating cash
flow (2) & (8) $534.6 $351.5 52.1 %
Total proportionate cellular
POPs (3) & (6) 99,120 75,290 31.7 %
Total proportionate cellular
subscribers (4) 1,948 1,206 61.5 %
Total proportionate paging units
in service 1,647 1,269 29.8 %
PROPORTIONATE CELLULAR OPERATIONS
For the year ended
DOMESTIC OPERATING RESULTS December 31, %
(Dollars in millions) 1994 1993 CHANGE
Service & other revenues $1,149.6 $892.0 28.9 %
Equipment sales 74.6 40.2 85.6 %
Cost of equipment sales (82.0) (42.2) 94.3 %
Net operating revenues 1,142.2 890.0 28.3 %
Cost of revenues 126.0 116.3 8.3 %
Selling & customer operations 415.2 297.2 39.7 %
General, administrative & other
expenses 122.0 96.9 25.9 %
Depreciation expense 163.5 147.0 11.2 %
Amortization expense 22.2 17.7 25.4 %
Total costs & expenses 848.9 675.1 25.7 %
Operating income $293.3 $214.9 36.5 %
Operating cash flow (2) $479.0 $379.6 26.2 %
Operating cash flow margin 41.9% 42.7% (1.9)%
Capital expenditures, excluding
acquisitions $296.7 $198.4 49.5 %
For the year ended
December 31, %
OPERATING DATA (In thousands) 1994 1993 CHANGE
Domestic:
Total POPs (3) 35,002 34,889 0.3 %
Proportionate subscribers 1,560 1,046 49.1 %
International:
POPs (3) & (6) 64,118 40,401 58.7 %
Proportionate subscribers (4) 388 160 142.5 %
PAGING OPERATIONS
For the year ended
DOMESTIC OPERATING RESULTS (5) December 31, %
(Dollars in millions) 1994 1993 CHANGE
Service & other revenues $183.5 $145.7 25.9 %
Equipment sales 43.4 35.2 23.3 %
Cost of equipment sales (38.0) (31.9) 19.1 %
Net operating revenues 188.9 149.0 26.8 %
Total operating expenses before
depreciation & amortization
expense 122.5 98.7 24.1 %
Depreciation & amortization
expense 36.8 30.6 20.3 %
Operating Income $29.6 $19.7 50.3 %
Operating cash flow (2) $66.4 $50.3 32.0 %
Operating cash flow margin 35.2% 33.8% 4.1 %
Capital expenditures, excluding
acquisitions $61.3 $53.4 14.8 %
For the year ended
December 31, %
OPERATING DATA (In thousands) 1994 1993 CHANGE
Domestic (5):
Units in service 1,525 1,167 30.7 %
International:
Proportionate units in
service (4) 122 102 19.6 %
See footnotes
PROPORTIONATE INTERNATIONAL CELLULAR
12/31/94
INTERNATIONAL CELLULAR POPs (3) & (6) Percentage System Proportionate
(In millions) Ownership Population POPs
European Operations
Germany (7) 32.7% 80.9 26.4
Portugal 23.0% 9.9 2.3
Sweden 51.1% 8.7 4.4
Belgium 25.0% 10.1 2.5
Italy 10.2% 57.1 5.8
Spain 15.8% 39.1 6.2
Asian Operations
Japan
Tokyo 15.0% 39.0 5.9
Kansai 13.0% 21.0 2.7
Tokai 13.0% 14.0 1.8
Kyushu 4.5% 15.0 0.7
Chugoku 4.5% 8.9 0.4
South Korea 11.3% 44.0 5.0
Total International Operations 347.7 64.1
-0- FOOTNOTES: (1) Significant assets of the Company are not consolidated. Due to the effect of the formation of certain joint ventures on the year-to-year comparability of the Company's consolidated financial results, the Company believes that proportionate financial and operating data facilitate the understanding and assessment of its results. Unlike consolidation accounting, proportionate accounting is not in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . Proportionate accounting reflects the relative weight of the Company's ownership interests in its domestic and international systems and excludes certain minority investments for which the Company does not receive timely financial and operating data. (2) Operating cash flow is defined as operating income plus depreciation and amortization. Proportionate operating cash flow represents the Company's interest in the entities multiplied mul·ti·ply 1 v. mul·ti·plied, mul·ti·ply·ing, mul·ti·plies v.tr. 1. To increase the amount, number, or degree of. 2. Mathematics To perform multiplication on. by the entities' operating cash flow. As such, proportionate operating cash flow does not represent cash available to the Company. (3) POPs are the estimated market population multiplied by the Company's ownership interest in that market and includes markets in which the networks are under construction. (4) Reflects total subscribers of all cellular systems and total units in service of all paging systems outside the United States in which the Company owns an interest multiplied by the Company's ownership interest. Fourth quarter 1994 data reflects the Company's 25% ownership interest in Belgium and an increase in the Company's ownership interest in Germany from 29.2% to 32.7%. (5) Domestic paging is wholly owned by the Company. (6) Year-end 1994 data includes POPs for Italy, Spain, South Korea, and Kyushu Kyushu (ky  `sh), island (1990 pop. 13,064,955), c.13,760 sq mi (35,640 sq km), S Japan. and Chugoku regions of Japan, where licenses are
currently being finalized See finalization. or the systems are under construction.
Excluding Spain, international POPs would be 57,948 and total
proportionate POPs would be 92,950.(7) Includes a 2.25% interest, which is being held for sale to small or medium-sized Me´di`um-sized` a. 1. Having a medium size; as, a medium-sized man s>. Adj. 1. medium-sized - intermediate in size medium-size, moderate-size, moderate-sized German companies (8) Total proportionate results do not include certain international and some small domestic cellular investments for which the Company does not have timely detailed income statements. Upon finalizing the licenses in Belgium and Italy in fourth quarter 1994 and realizing significant operational growth in Japan in the latter part of 1994, the net loss of these international entities became significant, warranting further disclosure in these proportionate results. Equity in net loss of unconsolidated international partnerships and corporations not included in total proportionate financial results were: (In millions) 1st Quarter ($2.6) 2nd Quarter (3.6) 3rd Quarter (5.8) 4th Quarter (20.8) Total 1994 ($32.8) CONTACT: AirTouch Communications Inc. Susan SUSAN Smallest Univalue Segment Assimilating Nucleus SUSAN Sub Saharan African Network SUSAN Smart Ultrasonic System for Aircraft NDE Rosenberg Rosenberg (rō`zənbərg), city (1990 pop. 20,183), Fort Bend co., S Tex., on the Brazos River, in an oil and natural gas area; inc. 1902. Rosenberg and its sister city of Richmond are physically one community. , 510/210-3910 |
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