BC Telecom Reports Third Quarter Earnings.ME, VSE See DOS/VSE. VSE - Virtual Storage Extended : BCT BCT Brigade Combat Team BCT Basic Combat Training BCT Best Conventional Pollutant Control Technology (EPA) BCT Business Cards Tomorrow BCT Banque Centrale de Tunisie (Central Bank of Tunisia) ) Despite a continuing decline in earnings by BC TEL TEL Telephone TEL Telegram TEL Telugu (langauge) TEL Terrorist Exclusion List TEL Technology-Enhanced Learning TEL Transporter-Erector-Launcher TEL Tetra-Ethyl Lead TEL Team Deutsche Telekom , the regulated telephone utility, BC TELECOM announced today an increase in consolidated net earnings for the third quarter of 1995. BC TELECOM's net earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the were $62.7 million or 51 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. for the quarter compared to $62.9 million or 52 cents per share during the same period last year. An after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain of $12.5 million or 11 cents per share from BC TELECOM's investment in PMC-Sierra, Inc. increased total earnings for the quarter to 62 cent per share. Earnings for the first nine months of 1995 were $200.2 million or $1.65 per share compared to $171.2 million or $1.43 per share in the same period last year. This includes $32.5 million or 27 cents from the PMC-Sierra, Inc. transaction. BC TEL's contributions to corporate earnings fell four cents per share in the third quarter compared to the same period last year. However, earnings from new and emerging businesses increased three cents per share. "Our consolidated earnings picture reflects the new dynamics of our industry," said Brian Canfield can·field n. Games A form of solitaire. [After Richard Albert Canfield (1855-1914), American gambler.] Noun 1. , BC TELECOM chairman and chief executive officer. "Long-distance competition continues to erode Erode (ĕrōd`), city (1991 urban agglomeration pop. 361,755), Tamil Nadu state, S India, on the Kaveri River. The city is located in a cotton-growing region, and its industries include cotton ginning and the manufacture of transport equipment. BC TEL's traditional revenue base. At the same time, our entry into new and emerging businesses is paying off in strong revenue growth." Consolidated 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. in the third quarter increased to $606.3 million from $586.2 million in the same period last year. New and emerging businesses, such as BC TEL Mobility Cellular and Paging, BC TEL Advanced Communications and ISM See ISM band. Information Systems Management (B.C.), continued their trend of significant revenue growth in 1995. Revenues for BC TEL Mobility increased $12 million in the third quarter compared to the same period last year; BC TEL Advanced Communications revenues increased $7 million; and ISM Information Systems Management (B.C.) increased $6 million. However, BC TEL's revenues declined $8.4 million in the third quarter compared to the same period in 1994. Although local-service revenues increased $21.5 million, continuing market share erosion, lower prices and a less buoyant Buoyant The term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength. Notes: These types of markets can be very volatile as the prices are rapid to rise and fall with investor sentiment. economy saw long-distance revenues decrease $29.7 million. BC TELECOM's third quarter operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $455 million compared to $430 million in 1994. More than 90 percent of this increase reflects costs associated with higher revenues from new and emerging businesses. BC TEL' operating expenses, excluding depreciation, decreased $5.9 million in the third quarter compared to the same period last year. "This tells me our efforts to cut operating costs operating costs npl → gastos mpl operacionales are having an impact," Canfield said. "Our goal is to reduce operating costs by $100 million by the end of 1996." Part of this cost-reduction plan entails eliminating about 2,000 jobs from BC TELECOM's workforce. The initial step in this direction is a voluntary early retirement plan offered to unionized employees earlier this month. The company hopes to achieve the downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing mostly through early retirements and voluntary separations. BC TEL added 29,865 customer lines in the third quarter, down almost 2,000 from the same period in 1994. The total number of BC TEL customer lines in service at the end of September stood at 2,312,985. The number of BC TEL Mobility Cellular and Paging customers increased to 278,394 at the end of September, reflecting a quarter gain of 21,725 compared to a gain of 11,601 in the same period last year.
CONSOLIDATED STATEMENT OF EARNINGS
Three Months Nine Months
Ended Ended
September 30 September 30
______________ _______________
Unaudited ($ Millions) 1995 1994 1995 1994
_____________________________________________________________
OPERATING REVENUES $ 606.3 $ 586.2 $1,768.2 $1,699.0
OPERATING EXPENSES 455.0 430.0 1,347.0 1,262.6
________ ________ ________ ________
OPERATING EARNINGS 151.3 156.2 421.2 436.4
Other income 3.4 0.3 9.2 2.3
Gain on sale of
PMC Sierra 19.0 0.0 49.4 0.0
Financing costs, net 36.2 35.2 108.0 104.8
________ ________ ________ ________
EARNINGS BEFORE INCOME
TAXES AND MINORITY
INTEREST 137.5 121.3 371.8 333.9
Income taxes 61.5 57.8 169.2 161.0
________ ________ ________ ________
EARNINGS BEFORE
MINORITY INTEREST 76.0 63.5 206.6 172.9
Minority interest 0.8 0.6 2.4 1.7
________ ________ ________ ________
NET EARNINGS 75.2 62.9 200.2 171.2
Preference and preferred
share dividends 1.0 0.9 2.7 3.8
________ ________ ________ ________
COMMON SHARE EARNINGS $ 74.2 $ 62.0 $ 197.5 $ 167.4
________ ________ ________ ________
________ ________ ________ ________
EARNINGS PER COMMON SHARE $ 0.62 $ 0.52 $ 1.65 $ 1.43 DIVIDENDS DECLARED PER COMMON SHARE $ 0.32 $ 0.31 $ 0.95 $ 0.92 AVERAGE COMMON SHARES OUTSTANDING (Thousands) 120,748 117,376 119,939 116,696 CONTACT: Michelle Gagne Media relations manager 604/432-2949, office 604/977-5875, toll-free pager REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-575-8822 or 800-221-2462; Boston 617-236-4266 or |
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