FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the Quarterly Period Ended June 30, 2004 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period to
Commission file number 0-15658
LEVEL 3 COMMUNICATIONS, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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47-0210602 |
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(State of Incorporation) |
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(I.R.S. Employer |
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1025 Eldorado Blvd., Broomfield, CO |
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80021 |
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(Address of principal executive offices) |
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(Zip Code) |
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(720) 888-1000 |
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(Registrant’s telephone
number, |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports(s)), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
The number of shares outstanding of each class of the issuer’s common stock, as of August 2, 2004:
Common Stock: 681,883,986 shares
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Consolidated Statement of Changes in Stockholders’ Equity (Deficit) |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Certifications |
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1
LEVEL 3 COMMUNICATIONS, INC. AND SUBSIDIARIES
(unaudited)
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Three Months Ended |
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Six Months Ended |
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(dollars in millions, except per share data) |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenue: |
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Communications (Note 4) |
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391 |
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$ |
430 |
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$ |
780 |
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$ |
1,135 |
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Information Services |
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503 |
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491 |
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997 |
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997 |
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Coal Mining |
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24 |
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16 |
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40 |
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32 |
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Total revenue |
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918 |
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937 |
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1,817 |
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2,164 |
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Costs and Expenses (exclusive of depreciation and amortization shown separately below): |
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Cost of revenue: |
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Communications |
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119 |
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103 |
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200 |
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192 |
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Information Services |
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455 |
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452 |
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904 |
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917 |
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Coal Mining |
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17 |
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12 |
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30 |
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26 |
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Total cost of revenue |
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591 |
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567 |
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1,134 |
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1,135 |
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Depreciation and amortization |
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177 |
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228 |
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356 |
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435 |
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Selling, general and administrative |
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243 |
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275 |
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478 |
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545 |
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Restructuring charges |
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— |
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9 |
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2 |
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20 |
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Total costs and expenses |
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1,011 |
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1,079 |
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1,970 |
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2,135 |
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Operating Income (Loss) |
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(93 |
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(142 |
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(153 |
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29 |
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Other Income (Expense): |
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Interest income |
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3 |
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5 |
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6 |
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10 |
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Interest expense, net |
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(118 |
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(143 |
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(245 |
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(283 |
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Other, net |
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146 |
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(176 |
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184 |
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(102 |
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Total other income (expense) |
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31 |
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(314 |
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(55 |
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(375 |
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Loss from Continuing Operations Before Income Tax and Change in Accounting Principle |
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(62 |
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(456 |
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(208 |
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(346 |
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Income Tax Expense |
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(1 |
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— |
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(2 |
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— |
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Loss from Continuing Operations |
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(63 |
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(456 |
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(210 |
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(346 |
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Loss from Discontinued Operations |
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— |
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(6 |
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— |
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(2 |
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Net Loss Before Change in Accounting Principle |
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(63 |
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(462 |
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(210 |
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(348 |
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Cumulative Effect of Change in Accounting Principle |
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— |
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— |
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— |
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5 |
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Net Loss |
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$ |
(63 |
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(462 |
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(210 |
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(343 |
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Earnings (Loss) per Share of Level 3 Common Stock (Basic and Diluted): |
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Loss from Continuing Operations |
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$ |
(0.09 |
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(0.94 |
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(0.31 |
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(0.74 |
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Loss from Discontinued Operations |
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— |
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(0.01 |
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— |
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— |
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Cumulative Effect of Change in Accounting Principle |
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— |
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— |
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0.01 |
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Net Loss |
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$ |
(0.09 |
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(0.95 |
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(0.31 |
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(0.73 |
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See accompanying notes to consolidated financial statements.
2
LEVEL 3 COMMUNICATIONS, INC. AND SUBSIDIARIES
(unaudited)
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(dollars in millions) |
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June 30, |
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December 31, |
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