Exhibits

 

EXHIBITS

Exhibit A

KEY ANNUAL FINANCIAL RATIOS
FISCAL YEAR ENDING

12/31/96

12/31/95

12/31/94

MCI

AT&T

Liquidity

QUICK RATIO

1.09

0.32

0.53

0.76

1.03

CURRENT RATIO

1.31

0.7

0.72

0.93

1.16

Asset Management

RECEIVABLES TURNOVER

5.7

8.38

8.64

5.31

3.25

RECEIVABLES DAYS SALES

63.15

42.97

41.68

67.74

110.79

Profitability

PROFIT MARGIN ON SALES

0.08

0.03

0.07

0.06

0.11

RETURN ON TOTAL ASSETS

0.07

0.03

0.06

0.05

0.11

NET INCOME/INVESTED CAPITAL

0.1

0.05

0.1

0.07

0.21

RETURN ON COMMON EQUITY

0.14

0.09

0.2

0.11

0.29

 

Exhibit B

COMMON SIZE BALANCE SHEET
ANNUAL ASSETS
FISCAL YEAR ENDING

12/31/96

12/31/95

12/31/94

12/31/93

TOTAL CURRENT ASSETS

25.68%

23.82%

14.05%

13.98%

NET PROP & EQUIP

61.72%

63.94%

70.51%

72.90%

OTHER ASSETS

12.60%

12.24%

15.44%

13.12%

TOTAL ASSETS

100.00%

100.00%

100.00%

100.00%

ANNUAL LIABILITIES
FISCAL YEAR ENDING

12/31/96

12/31/95

12/31/94

12/31/93

NOTES PAYABLE

1.18%

14.11%

N/A

N/A

ACCOUNTS PAYABLE

6.06%

6.18%

6.38%

6.54%

CUR LONG TERM DEBT

0.58%

1.85%

2.28%

3.70%

OTHER CURRENT LIAB

11.73%

11.71%

10.88%

11.45%

TOTAL CURRENT LIAB

19.55%

33.84%

19.54%

21.69%

OTHER LIABILITIES

30.13%

35.40%

49.10%

50.35%

TOTAL LIABILITIES

49.67%

69.23%

68.64%

72.03%

PREFERRED STOCK

0.07%

0.21%

0.26%

0.27%

COMMON STOCK NET

6.44%

5.74%

5.99%

6.07%

CAPITAL SURPLUS

26.11%

6.32%

6.48%

5.85%

RETAINED EARNINGS

18.95%

18.18%

18.77%

15.44%

TREASURY STOCK

-1.55%

N/A

N/A

N/A

OTHER EQUITIES

0.31%

0.31%

-0.14%

0.34%

SHAREHOLDER EQUITY

50.33%

30.77%

31.36%

27.97%

TOT LIAB & NET WORTH

100.00%

100.00%

100.00%

100.00%

 

Exhibit C
WACC

Source

EVA
% of Capital in Long Term Debt

25%

Bibl. 10
% of Capital in Retained Earnings

75%

Bibl. 10 Sales Revenue

14,044,700,000

Risk Free Rate

6.4%

Wall Street Operating Cost

3,157,800,000

Sprint’s Beta

1.1

Bibl. 10 Taxes

721,000,000

Risk Free Rate for Industry

14.80%

Bibl. 15 Op. Profit after Taxes

10,165,900,000

Long Term Bond Rate (Lehman Bros)

6.75%

Wall Street Total Capital Supplied

3,128,300,000

Cost of Capital for Debt

1.69%

WACC

13.42%

Cost of Capital for Shareholder’s Equity

11.73%

Cost of All Capital

419,817,860

Weighted Average Cost Of Capital(WACC)

13.42%

EVA

9,746,082,140

 

Exhibit D Exhibit E
COMPETITORS NAFTA

EPS

EPS

Last Quarter

This Quarter

Year

Employees

Union %

BELL ATLANTIC

1.17

1.22

1993

50,500

25%

AMERITECH CORP

1.13

1.04

1994

51,600

25%

SBC COMMUN INC

0.9

0.98

1995

48,300

26%

BELL SOUTH

0.71

0.7

1996

48,000

24%

GTE CORP

0.7

0.76

US WEST COMM

0.65

0.62

SPRINT CORP

0.62

0.57

AT&T CORP

0.59

0.65

MCI COMMS CORP

0.4

0.19

LCI INTL INC

0.25

0.26

WORLDCOM INC

0.08

0.11

Exhibit F

Stock

Beta

# Of Shares

Share Price

Value of Shares

% of Portfolio

% Beta

Source

Netscape

1.35

5850

40.13

316887.19

49.30%

0.67

Netscape Corporate
Sun Microsystems

0.88

3470

39.50

120617.20

18.77%

0.17

S&P Stock
Silicon Graphics

0.96

1715

16.81

27680.10

4.31%

0.04

S&P Stock
Apple Computer

0.9

2915

13.69

35909.16

5.59%

0.05

Value Line
Sprint

1.1

2500

51.50

141625.00

22.04%

0.24

Value Line
Average

642718.64

100.00%

1.16

Exhibit G

COMMON SIZE INCOME
FISCAL YEAR ENDING

12/31/96

12/31/95

12/31/94

12/31/93

NET SALES

100.00%

100.00%

100.00%

100.00%

COST OF GOODS

50.05%

50.96%

51.34%

51.23%

GROSS PROFIT

49.95%

49.04%

48.66%

48.77%

SELL GEN & ADMIN EXP

22.48%

22.50%

22.99%

23.20%

INC BEF DEP & AMORT

27.47%

26.54%

25.67%

25.56%

DEPRECIATION & AMORT

11.33%

11.49%

11.56%

11.76%

NON-OPERATING INC

-1.13%

-1.42%

-2.00%

-2.99%

INTEREST EXPENSE

1.40%

2.04%

2.51%

3.36%

INCOME BEFORE TAX

13.61%

11.60%

11.58%

7.45%

PROV FOR INC TAXES

5.13%

4.19%

4.08%

2.71%

NET INC BEF EX ITEMS

8.48%

7.41%

7.50%

4.74%

EX ITEMS & DISC OPS

-5.00%

-4.31%

-0.70%

-4.23%

NET INCOME

8.43%

3.10%

7.43%

0.50%

PREFERRED STOCK DIV

0.08%

0.25%

0.31%

0.35%

NET INCOME AVAILABLE

FOR COMMON SHAREHOLDER

8.35%

2.85%

7.12%

0.15%

Exhibit H

ANNUAL INCOME (000$) For. Basis
FISCAL YEAR ENDING

12/31/96

First Pass Second Pass Final
NET SALES

14,044,700

x 1.085

15,238,500

15,238,500

15,238,500

COST OF GOODS

7,028,700

x 1.085

7,626,140

7,626,140

7,626,140

GROSS PROFIT

7,016,000

7,612,360

7,612,360

7,612,360

SELL GEN & ADMIN EXP

3,157,800

x 1.085

3,426,213

3,426,213

3,426,213

INC BEF DEP & AMORT

3,858,200

4,186,147

4,186,147

4,186,147

DEPRECIATION & AMORT

1,591,000

x1.085

1,726,235

1,726,235

1,726,235

NON-OPERATING INC

-158,600

-158,600

-158,600

-158,600

INTEREST EXPENSE

196,700

196,700

5234.72(c)

201,935

201,935

INCOME BEFORE TAX

1,911,900

2,104,612

2,099,377

2,099,377

PROV FOR INC TAXES(a)

721,000

799,753

797,763

797,763

NET INC BEF EX ITEMS

1,190,900

1,304,859

-3,246

1,301,614

1,301,614

EX ITEMS & DISC OPS

-7,100

-7,100

-7,100

-7,100

NET INCOME

1,183,800

1,297,759

1,294,514

1,294,514

PREFERRED STOCK DIV

11,800

11,800

11,800

11,800

NI AVAILABLE TO COMMON

1,172,000

1,285,959

1,282,714

1,282,714

DIV TO COMMON(b)©

343,900

343,900

12192.65(d)

356,093

356,093

ADD. TO RETAIN. EARNINGS

828,100

942,059

15,438

926,621

926,621

a-Value Line projected 38% c- Interest rate of 6.75%
b-If continue dividend of $1.00 d- Dividend of 0.05% on common stock

 

Exhibit I

ANNUAL ASSETS 1997 Forecast
FISCAL YEAR ENDING

12/31/96

For. Basis

First Pass

AFN

Second Pass

Final

CASH

1,150,600

x 1.085

1,248,401

RECEIVABLES

2,463,500

x 1.085

2,672,898

OTHER CURRENT ASS

738,700

x 1.085

801,490

TTL CURRENT ASSETS

4,352,800

4,722,788

NET PROP & PLANT

10,464,100

x 1.085

11,353,549

OTHER ASSETS

2,136,100

x 1.085

2,317,669

TOTAL ASSETS

16,953,000

18,394,005

18,394,005

18,394,005

NOTES PAYABLE

200,000

200,000

200,000

200,000

ACCOUNTS PAYABLE

1,026,700

x 1.085

1,113,970

1,113,970

1,113,970

ACCRUED EXPENSES

1,018,100

x 1.085

1,104,639

1,104,639

1,104,639

OTHER CURRENT LIAB

1,069,400

1,069,400

1,069,400

1,069,400

TOTAL CURRENT LIAB

3,314,200

3,488,008

3,488,008

3,488,008

LONG TERM DEBT(b)

2,981,500

2,981,500

81,284.5

3,062,784

3,066,644

OTHER LIABILITIES

2,125,600

2,125,600

2,125,600

2,125,600

TOTAL LIABILITIES

8,421,300

8,595,108

8,676,392

8,680,252

PREFERRED STOCK

11,800

11,800

11,800

11,800

COMMON STOCK NET(b)

1,091,300

1,091,300

243,853.5

1,335,153

1,346,733

CAPITAL SURPLUS

4,425,900

4,425,900

4,425,900

4,425,900

RETAINED EARNINGS

3,211,800

942,059

4,153,859

4,138,421

4,138,421

TREASURY STOCK

-262,200

-262,200

-262,200

-262,200

OTHER EQUITIES

53,100

53,100

53,100

53,100

SHAREHOLDER EQUITY

8,531,700

9,473,759

9,702,174

9,713,754

TOT LIAB & NET WORTH

16,953,000

18,068,867

325,138

18,378,566

18,394,005

AFN THIS PASS

325,138

15,438

0

CUMULATIVE AFN

325,138

340,576

340,576

a – Paid off this yr.& not carried.
b – 75% to Stock; 25% LT debt

BIBLIOGRAPHY

http://biz.yahoo.com/news/fon.html
1 Tuesday October 7, 1997 Sprint unit to guarantee Internet access
2 Friday October 3, 1997 WorldCom seen pushing business over residential
3 France Telecom , world no 4 in sales terms
4 Thursday October 2, 1997 AT&T, Sprint seen moving faster to pursue deals
5 WorldCom-MCI could tilt Asia telecom power balance
6 Monday September 29, 1997 NEC, Sprint to start Internet roaming service
7 Tuesday September 23, 1997 Grand Opening of 6,000 Sprint Stores at RadioShack Brings One-StopCommunications Shopping to America
8

1996 10-K

9

Financial Management Text

10

Value Line

11

CD Disclosure

12

Yahoo Utility Telephone Listing

biz.yahoo.com/research /indgrp/util_telephone.htm
13

September 11, 1997

Wall Street Journal, p. R22, “The Squeeze”
14 NAIC Greensheet from Sprint’s web site (www.sprint.com)
15

January 12,1997

Telephony, p. 15

 

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