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| EMBARQ Reports Solid First Quarter 2007 Results |
EMBARQ's access line results improved in the first quarter, as the company lost 15,000 fewer lines to competitors than in the same period a year ago. In addition, high-speed Internet subscriber additions reached a company record of 87,000 this quarter. "Prior to the fourth quarter of 2006, it had been years since we had seen improvement in access line erosion, so it's significant that we have been able to accomplish this two quarters in a row," said Dan Hesse, EMBARQ Chairman and Chief Executive Officer. "With an improving access line trend and strong growth in data, high-speed Internet and wireless revenues, we're off to a great start in 2007."
Highlights
-- Reported solid revenue, earnings and cash flow results
-- For the second consecutive quarter, lost fewer access lines to
competitors than in the prior year quarter
-- Accelerated growth in high-capacity business data revenue and
maintained solid wholesale data revenue growth
-- Added 87,000 high-speed Internet subscribers -- a new company record
-- Launched an EMBARQ-branded portal offering several enhancements for
high-speed Internet subscribers
-- Declared a dividend of $0.625 per share for the second quarter, an
increase from $0.50 per share in the first quarter
-- Reaffirmed its outlook for 2007
GAAP and 'As Adjusted' Reporting EMBARQ's reported results under generally accepted accounting principles (GAAP) for periods prior to its May 2006 spin-off from Sprint Nextel do not reflect certain items that are included in its GAAP reporting for periods subsequent to the spin-off. (These items are described in more detail in the section titled "Financial Measures.") Accordingly, the company's pre spin-off GAAP results are not fully comparable to its post spin-off GAAP results. The company's as adjusted basis of reporting reflects the current composition of its business for all periods prior and subsequent to its spin- off. Thus, as adjusted results are provided to help investors evaluate trends in the company's operating performance. Reconciliations between EMBARQ's GAAP and as adjusted results are provided in Schedules 5 and 6. Operating Results EMBARQ reported total net operating revenues of $1.59 billion for the first quarter of 2007. Compared to first quarter 2006 GAAP results, this represents an increase of 1.8%. Compared to first quarter 2006 as adjusted results, total revenue declined 4.6%. A majority of the as adjusted decline was attributable to the company's Logistics segment, in which revenues declined 28.3% year-over-year due in part to actions previously taken to improve the profitability of this segment. In the Telecommunications segment, as adjusted revenue declined 2.2% on a year- over-year basis. Within the Telecommunications segment, access line losses drove a decline in voice revenue, which was partially offset by strong growth in data, high-speed Internet and wireless revenues. EMBARQ reported operating income of $371 million for the first quarter of 2007. Compared to first quarter 2006 GAAP results, this represents an increase of 1.4%. Compared to first quarter 2006 as adjusted results, operating income declined 9.3%, due largely to the year-over-year decline in revenue. Also contributing to the decline in operating income was early life stage dilution associated with the company's wireless business, which was offset by year- over-year improvement in other areas. Capital Expenditures and Cash Flow EMBARQ reported capital expenditures of $183 million for the first quarter of 2007. This amount includes $4 million of separation-related capital spending. Driven by its solid operating performance, EMBARQ generated free cash flow of $317 million in the first quarter. The company's strong cash flow enabled a net debt reduction of $356 million. Second Quarter Dividend EMBARQ announced that its Board of Directors has declared a dividend on its common stock. A dividend of $0.625 per share is payable June 30, 2007 to stockholders of record at the close of business on June 8, 2007. This second quarter dividend represents a 25% increase from the first quarter dividend of $0.50 per share. Subscriber Results EMBARQ lost 71,000 access lines in the first quarter of 2007, which includes a 7,000 line increase associated with a large business customer win. The decline of 71,000 lines is an improvement of 15,000 lines from a year ago when the company lost 86,000 lines to competitors and sold 5,000 lines. On a year-over-year basis, the company's access lines declined by 5.9%. The company set a record for high-speed Internet (HSI) subscriber additions in the first quarter with 87,000. At the end of the quarter, EMBARQ had more than 1.1 million HSI subscribers. The company continued to grow its wireless business, adding 23,000 new subscribers in the quarter. At quarter end, its wireless subscriber base totaled 71,000. 2007 Outlook EMBARQ reiterated the outlook for 2007 it provided on February 8, 2007. Specific expectations for the year are as follows:
-- Access lines are expected to decline at a mid to upper 6% rate.
-- Telecommunications segment revenues are expected to be $5.77 billion
to $5.87 billion.
-- Consolidated operating income is expected to be $1.45 billion to $1.55
billion, including approximately $20 million of non-recurring
separation-related expenses, $50 to $60 million of early-stage
dilution associated with the company's wireless business, and
depreciation of approximately $1.05 billion.
-- Consolidated capital expenditures are expected to be $870 million to
$890 million, including approximately $30 million of non-recurring
separation-related capital spending.
Conference Call On Wednesday, April 25, 2007, EMBARQ will hold a conference call beginning at 4:30 PM EDT. Dial-in numbers for the conference call are (866) 245-2310 (U.S. and Canada) and (706) 679-0843 (International). The code required to access the call is 3836912. Please plan to dial-in at least five minutes before the scheduled start time. A simultaneous audio webcast of the call and a downloadable presentation will be available at http://www.embarq.com/investors . For those unable to participate live, a replay of the call will be available until May 11th, 2007 by dialing (800) 642-1687 (U.S. and Canada) or (706) 645-9291 (International) and at http://www.embarq.com/investors . The accompanying presentation will also be archived and available for download at this Web site. Cautionary Statement This news release contains "forward-looking statements" within the meaning of the securities laws, including statements relating to EMBARQ's outlook or expectations for earnings, revenues, expenses, depreciation and amortization, asset quality, access line declines, customer growth, or other future financial or business performance, strategies or expectations. The words "estimate," "plan," "project," "forecast," "expect," "intend," "anticipate," "believe," "seek," "target," "guidance," "outlook" and similar expressions are intended to identify forward-looking statements. These statements reflect management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, customer and network usage, customer retention, pricing, operating costs, technology, and the economic and regulatory environment. Future performance cannot be ensured. Actual results may differ materially from those in the forward-looking statements. Some factors that could cause actual results to differ include: economic, competitive, regulatory, technological, capital market and other factors, and the risks that are described in the sections entitled "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements" contained in EMBARQ's Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (SEC) and in EMBARQ's other filings with the SEC. Forward-looking statements speak only as of the date they were made, and EMBARQ undertakes no obligation to update or revise any forward-looking statements in light of new information or future events. You should not place undue reliance on any forward-looking statements, which speak only as of the date of this presentation. EMBARQ is not obligated to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this presentation.
Embarq Corporation Consolidated
Selected Unaudited Financial Data
($ in millions, except per share amounts)
1Q-06 1Q-06 As
Consolidated 1Q-07 GAAP Fav/(Unfav) Adjusted Fav/(Unfav)
Voice $1,084 $1,044 $40 3.8% $1,161 (77) -6.6%
Data 189 169 20 11.8% 175 14 8.0%
High-speed
Internet 116 92 24 26.1% 92 24 26.1%
Wireless 9 - 9 N/A - 9 N/A
Other services 60 81 (21) -25.9% 66 (6) -9.1%
Service revenues 1,458 1,386 72 5.2% 1,494 (36) -2.4%
EMBARQ Logistics 109 152 (43) -28.3% 152 (43) -28.3%
Other product 22 23 (1) -4.3% 20 2 10.0%
Product revenues 131 175 (44) -25.1% 172 (41) -23.8%
Net Operating
Revenues 1,589 1,561 28 1.8% 1,666 (77) -4.6%
Operating Expenses
Cost of services 417 378 (39) -10.3% 429 12 2.8%
Cost of products 127 160 33 20.6% 157 30 19.1%
Selling, general
and administrative 404 419 15 3.6% 408 4 1.0%
Depreciation 270 238 (32) -13.4% 263 (7) -2.7%
Total Operating
Expenses 1,218 1,195 (23) -1.9% 1,257 39 3.1%
Operating Income $371 $366 $5 1.4% $409 ($38) -9.3%
Interest expense 109 19 (90) N/A 119 10 8.4%
Other expense
(income), net - (5) (5) N/A (5) (5) N/A
Income Before Taxes $262 $352 ($90) -25.6% $295 ($33) -11.2%
Income tax expense 102 138 36 26.1% 115 13 11.3%
Net Income $160 $214 ($54) -25.2% $180 ($20) -11.1%
Diluted Earnings Per
Share $1.05
Embarq Telecommunications Segment
Selected Unaudited Financial Data
($ in millions, except per share amounts)
1Q-06 1Q-06 As
Telecom 1Q-07 GAAP Fav/(Unfav) Adjusted Fav/(Unfav)
Voice $1,084 $1,044 $40 3.8% $1,161 ($77) -6.6%
Data 189 169 20 11.8% 175 14 8.0%
High-speed
Internet 116 92 24 26.1% 92 24 26.1%
Wireless 9 0 9 N/A 0 9 N/A
Other services 60 81 (21) -25.9% 66 (6) -9.1%
Service revenues 1,458 1,386 72 5.2% 1,494 (36) -2.4%
Product revenues 22 23 (1) -4.3% 20 2 10.0%
Net Operating
Revenues 1,480 1,409 71 5.0% 1,514 (34) -2.2%
Operating Expenses
Cost of services 417 378 (39) -10.3% 429 12 2.8%
Cost of products 30 23 (7) -30.4% 20 (10) -50.0%
Selling, general
and
administrative 392 400 8 2.0% 389 (3) -0.8%
Depreciation 267 235 (32) -13.6% 260 (7) -2.7%
Total Operating
Expenses 1,106 1,036 (70) -6.8% 1,098 (8) -0.7%
Operating Income $374 $373 $1 0.3% $416 ($42) -10.1%
Embarq Logistics Segment
Selected Unaudited Financial Data
($ in millions, except per share amounts)
1Q-06 1Q-06 As
Logistics 1Q-07 GAAP Fav/(Unfav) Adjusted Fav/(Unfav)
Net Operating
Revenues 109 152 (43) -28.3% 152 (43) -28.3%
Operating Expenses
Cost of services &
products 97 137 40 29.2% 137 40 29.2%
Selling, general and
administrative 12 19 7 36.8% 19 7 36.8%
Depreciation 3 3 - 0.0% 3 - 0.0%
Total Operating
Expenses 112 159 47 29.6% 159 47 29.6%
Operating Income ($3) ($7) $4 57.1% ($7) $4 57.1%
Financial Measures For periods prior to and including May 17, 2006, the date of EMBARQ's spin-off from Sprint Nextel, reported operating income reflects the combined performance of the specific legal entities that were spun-off from Sprint Nextel in accordance with GAAP. The reported information for these entities prior to and including the date of separation does not include certain items that will be reflected in EMBARQ's reported operating income for periods subsequent to May 17, 2006. These items primarily consist of the following:
-- In-territory consumer and business long distance customers transferred
to EMBARQ by Sprint Nextel, as well as certain in-territory equipment
and professional service customers transferred to Sprint Nextel by
EMBARQ; and
-- Other assets and liabilities related to ongoing business operations
transferred to EMBARQ by Sprint Nextel.
In order to facilitate a comparison of EMBARQ's historical operating performance to its performance subsequent to the spin-off, Schedule 5 provides an as adjusted view of EMBARQ's quarterly operating income for 2006, including reconciliations to GAAP. The as adjusted financial information assumes the spin-off from Sprint Nextel had occurred on January 1, 2006 and includes the items described above. The as adjusted financial information is a non-GAAP measure and should be considered in addition to, but not as a substitute for, the information contained in the company's financial reporting. Definitions Net Debt is consolidated debt, including current maturities, less cash and equivalents. This non-GAAP measure should be used in addition to, but not as a substitute for the information provided in the balance sheets and statements of cash flows. EMBARQ believes that Net Debt provides useful information about its capacity to reduce debt and improve its capital structure.
Reconciliation of Non-GAAP
measure- Net Debt March 31, December 31,
2007 2006 Change
Current maturities $37 $37 $-
Long-term debt 6,058 6,421 (363)
Less: Cash and equivalents (46) (53) 7
Net Debt $6,049 $6,405 $(356)
Free Cash Flow is defined as the change in cash and equivalents less cash provided or used by financing activities. This non-GAAP measure should be used in addition to, but not as a substitute for the information provided in the statement of cash flows. EMBARQ believes that Free Cash Flow provides useful information about the cash generated from core operations and its ability to fund dividends, scheduled debt maturities and other financing activities.
Reconciliation of Free Cash Flow March 31,
2007
Change in cash and equivalents $(7)
Less: Net cash used by financing
activities 324
Free Cash Flow $317
Average Revenue per Household is calculated by dividing consumer revenues by average primary consumer access lines. While this measure is not defined under accounting principles generally accepted in the United States, the measure uses a GAAP measure as the basis for the calculation. EMBARQ believes Average Revenue per Household provides useful information concerning the success of its bundling initiatives and performance in attracting and retaining high value customers. HSI Average Revenue per Subscriber is calculated by dividing high-speed Internet revenues by average high-speed Internet subscribers. While this measure is not defined under accounting principles generally accepted in the United States, the measure uses a GAAP measure as the basis for the calculation. EMBARQ believes HSI Average Revenue per Subscriber provides useful information concerning the appeal of its high-speed Internet pricing plans and performance in attracting and retaining high value customers. About EMBARQ EMBARQ (NYSE: EQ), headquartered in Overland Park, Kansas, offers a complete suite of common sense communications services. The company has approximately 20,000 employees and operates in 18 states. EMBARQ is a member of the S&P 500. For consumers, EMBARQ offers an innovative portfolio of services that includes reliable local and long distance home phone service, high-speed Internet, wireless, and satellite TV from DISH Network(R) -- all on one monthly bill. For businesses, EMBARQ has a comprehensive range of flexible and integrated services designed to help businesses of all sizes be more productive and communicate with their customers. This service portfolio includes local voice and data services, long distance, EMBARQ(TM) Business Class DSL, wireless, enhanced data network services, voice and data communication equipment and managed network services. EMBARQ believes that by focusing on the communities the company serves and by employing common sense and practical ingenuity, it is able to provide customers with a committed partner, dedicated customer service and innovative products for work and home. For more information, visit embarq.com.
Embarq Corporation
Consolidated Statements of Operations
($ in millions, except per share amounts)
(unaudited)
Schedule 1 Quarter Ended March 31,
2007 2006
Net Operating Revenues
Service revenues $1,458 $1,386
Product revenues 131 175
Net operating revenues 1,589 1,561
Operating Expenses
Cost of services 417 378
Cost of products 127 160
Selling, general and administrative 404 419
Depreciation 270 238
Total Operating Expenses 1,218 1,195
Operating Income 371 366
Interest expense 109 19
Other (income) expense, net - (5)
Income Before Taxes 262 352
Income tax expense 102 138
Net Income $160 $214
Basic Earnings Per Share $1.07
Basic weighted average shares 150.2
Diluted Earnings Per Share $1.05
Diluted weighted average shares 152.4
Embarq Corporation
Consolidated Balance Sheets
($ in millions)
Schedule 2 March 31, December 31,
2007 2006
(unaudited)
Assets
Cash and equivalents $46 $53
Accounts receivable, net 629 660
Inventories 183 179
Prepaid expenses and other current
assets 150 131
Total current assets 1,008 1,023
Property, plant and equipment, net 7,910 7,988
Other non-current assets 65 80
Total non-current assets 7,975 8,068
Total assets $8,983 $9,091
Liabilities and stockholders' equity
Current maturities $37 $37
Accounts payable 447 503
Accrued payroll & benefits 179 198
Accrued taxes 242 164
Deferred revenue 211 211
Accrued interest 126 52
Other current liabilities 175 99
Total current liabilities 1,417 1,264
Long-term debt 6,058 6,421
Postretirement and other benefit
obligations 682 685
Deferred income taxes 1,000 1,039
Other non-current liabilities 157 150
Total non-current liabilities 7,897 8,295
Stockholders' equity
Common stock 2 1
Treasury stock, at cost (2) -
Paid in capital (360) (414)
Retained earnings 391 308
Accumulated other comprehensive
income (loss) (362) (363)
Total stockholders' equity (331) (468)
Total liabilities and stockholders'
equity $8,983 $9,091
Embarq Corporation
Consolidated Statements of Cash Flows
($ in millions)
(unaudited)
Schedule 3 Quarter Ended March 31,
2007 2006
Operating Activities
Net income $160 $214
Depreciation 270 238
Deferred and uncertain income tax
provisions (36) (9)
Provision for losses on accounts
receivable 17 12
Stock-based compensation expense 14 -
Net losses (gains) on sales of assets (3) (7)
Other, net 11 (4)
Changes in assets and liabilities:
Accounts receivable 14 54
Inventories and other current
assets (28) 52
Accounts payable and other
current liabilities 75 48
Noncurrent assets and
liabilities, net (14) 7
Net cash provided by operating
activities 480 605
Investing Activities
Capital expenditures (183) (184)
Proceeds from construction
reimbursements 3 2
Proceeds from sales of assets 17 20
Net cash used by investing
activities (163) (162)
Financing Activities
Changes in debt, net (360) -
Dividends paid to stockholders (4) -
Common stock issued 35 -
Dividends paid to Sprint Nextel - (194)
Other, net 5 -
Net cash used by financing
activities (324) (194)
Change in cash and equivalents (7) 249
Cash and equivalents at beginning of
period 53 103
Cash and equivalents at end of period $46 $352
Embarq Corporation
Operating Statistics - As Adjusted* (unaudited)
(Revenues in millions; lines and subscribers in thousands)
(* Note: As adjusted is a non-GAAP measure. See Schedule 5 for a
reconciliation to GAAP.)
Schedule 4
1Q-07 4Q-06 3Q-06
(1) 2006 (1) (1) 2Q-06 1Q-06
Service and Product
Revenues
Voice $1,084 $4,519 $1,120 $1,109 $1,129 $1,161
Data 189 716 183 180 178 175
High-speed Internet 116 393 108 98 95 92
Wireless 9 7 4 3 - -
Other 60 248 57 64 61 66
Service revenues 1,458 5,883 1,472 1,454 1,463 1,494
EMBARQ Logistics 109 530 115 125 138 152
Other 22 106 30 27 29 20
Product revenues 131 636 145 152 167 172
Net operating revenues $1,589 $6,519 $1,617 $1,606 $1,630 $1,666
Operating Unit Revenues
Consumer $682 $2,726 $671 $668 $686 $701
Business 384 1,522 381 389 379 373
Wholesale 414 1,741 450 424 427 440
Telecommunications 1,480 5,989 1,502 1,481 1,492 1,514
EMBARQ Logistics 109 530 115 125 138 152
Net operating revenues $1,589 $6,519 $1,617 $1,606 $1,630 $1,666
Access Lines
Consumer 4,588 4,659 4,731 4,835 4,970
Business 2,065 2,059 2,069 2,074 2,079
Wholesale 184 190 198 208 219
Total 6,837 6,908 6,998 7,117 7,268
Consumer Average Revenue
per Household
Consumer revenue $682 $671 $668 $686 $701
Average households served 4,261 4,316 4,384 4,482 4,571
Monthly revenue per
average HH $53.35 $51.82 $50.79 $51.02 $51.12
High-speed Internet Lines
Consumer 916 838 763 690 625
Business 149 142 135 127 121
Wholesale 39 37 35 32 31
Total 1,104 1,017 933 849 777
HSI Average Revenue per
Subscriber
High-speed Internet
revenue $116 $108 $98 $95 $92
Average HSI subscribers 1,061 975 891 813 735
Monthly revenue per
average subscriber $36.44 $36.92 $36.66 $38.95 $41.72
Wireless Subscribers
Consumer 65 44 21 4 -
Business 6 4 3 1 -
Total 71 48 24 5 -
Entertainment Subscribers 170 162 146 131 109
(1) As EMBARQ completed the spin-off from Sprint-Nextel on May 17, 2006,
periods subsequent to the second quarter 2006 represent GAAP results
Embarq Corporation
Reconciliations of Non-GAAP Measures (unaudited)
($ in millions)
Schedule 5
LD Shared
Year Ended Customer Assets / As
December 31,2006 GAAP Transfers Pension Liabilities Other Adjusted
Net Operating Revenues
Voice $4,346 $172 $- $- $1 $4,519
Data 706 6 - - 4 716
High-speed Internet 393 - - - - 393
Wireless 7 - - - - 7
Other 270 (22) - - - 248
Service revenues 5,722 156 - - 5 5,883
EMBARQ Logistics 530 - - - - 530
Other 111 (5) - - - 106
Product revenues 641 (5) - - - 636
Net operating
revenues $6,363 $151 $- $- $5 $6,519
Operating Expenses
Cost of services 1,594 73 - - 1 1,668
Cost of products 598 (4) - - - 594
Selling, general and
administrative 1,600 35 - (52) 1 1,584
Depreciation 1,027 - - 38 - 1,065
Total Operating
Expenses 4,819 104 - (14) 2 4,911
Operating Income $1,544 $47 $- $14 $3 $1,608
Operating Unit
Revenues
Consumer $2,590 $136 $- $- $- $2,726
Business 1,492 28 - - 2 1,522
Wholesale 1,751 (13) - - 3 1,741
Telecommunications 5,833 151 - - 5 5,989
EMBARQ Logistics 530 - - - - 530
Net operating revenues $6,363 $151 $- $- $5 $6,519
Capital Expenditures $923 $- $- $67 $- $990
LD Shared
Quarter Ended Customer Assets / As
June 30, 2006 GAAP Transfers Pension Liabilities Other Adjusted
Net Operating Revenues
Voice $1,073 $56 $- $- $- $1,129
Data 174 2 - - 2 178
High-speed
Internet 95 - - - - 95
Wireless - - - - - -
Other 68 (7) - - - 61
Service revenues 1,410 51 - - 2 1,463
EMBARQ Logistics 138 - - - - 138
Other 31 (2) - - - 29
Product revenues 169 (2) - - - 167
Net operating
revenues $1,579 $49 $- $- $2 $1,630
Operating Expenses
Cost of services 367 23 - - - 390
Cost of products 149 (1) - - - 148
Selling, general and
administrative 403 13 - (18) - 398
Depreciation 254 - - 13 - 267
Total Operating
Expenses 1,173 35 - (5) - 1,203
Operating Income $406 $14 $- $5 $2 $427
Operating Unit Revenues
Consumer $642 $44 $- $- $- $686
Business 369 9 - - 1 379
Wholesale 430 (4) - - 1 427
Telecommunications 1,441 49 - - 2 1,492
EMBARQ Logistics 138 - - - - 138
Net operating
revenues $1,579 $49 $- $- $2 $1,630
Capital Expenditures $265 $- $- $47 $- $312
LD Shared
Quarter Ended Customer Assets / As
March 31, 2006 GAAP Transfers Pension Liabilities Other Adjusted
Net Operating Revenues
Voice $1,044 $116 $- $- $1 $1,161
Data 169 4 - - 2 175
High-speed
Internet 92 - - - - 92
Wireless - - - - - -
Other 81 (15) - - - 66
Service revenues 1,386 105 - - 3 1,494
EMBARQ Logistics 152 - - - - 152
Other 23 (3) - - - 20
Product revenues 175 (3) - - - 172
Net operating
revenues $1,561 $102 $- $- $3 $1,666
Operating Expenses
Cost of services 378 50 - - 1 429
Cost of products 160 (3) - - - 157
Selling, general and
administrative 419 22 - (34) 1 408
Depreciation 238 - - 25 - 263
Total Operating
Expenses 1,195 69 - (9) 2 1,257
Operating Income $366 $33 $- $9 $1 $409
Operating Unit Revenues
Consumer $609 $92 $- $- $- $701
Business 353 19 - - 1 373
Wholesale 447 (9) - - 2 440
Telecommunications 1,409 102 - - 3 1,514
EMBARQ Logistics 152 - - - - 152
Net operating
revenues $1,561 $102 $- $- $3 $1,666
Capital Expenditures $184 $- $- $20 $- $204
Telecommunications Segment
Reconciliations of Non-GAAP Measures (unaudited)
($ in millions)
Schedule 6
LD Shared
Quarter Ended Customer Assets / As
March 31, 2006 GAAP Transfers Pension Liabilities Other Adjusted
Net Operating Revenues
Voice $1,044 $116 $- $- $1 $1,161
Data 169 4 - - 2 175
High-speed Internet 92 - - - - 92
Wireless - - - - - -
Other 81 (15) - - - 66
Service revenues 1,386 105 - - 3 1,494
Product revenues 23 (3) - - - 20
Net operating
revenues $1,409 $102 $- $- $3 $1,514
Operating Expenses
Cost of services 378 50 - - 1 429
Cost of products 23 (3) - - - 20
Selling, general and
administrative 400 22 - (34) 1 389
Depreciation 235 - - 25 - 260
Total Operating
Expenses 1,036 69 - (9) 2 1,098
Operating Income $373 $33 $- $9 $1 $416
Operating Unit Revenues
Consumer $609 $92 $- $- $- $701
Business 353 19 - - 1 373
Wholesale 447 (9) - - 2 440
Telecommunications 1,409 102 - - 3 1,514
Capital Expenditures $183 $- $- $20 $- $203
SOURCE EMBARQ Investor Relations, Trevor Erxleben, +1-866-591-1964, or investorrelations@embarq.com , or Media Contact, Keith Mitchell, +1-913-345-6661, or keith.j.mitchell@embarq.com , both of EMBARQ http://www.embarq.com |
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