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BELLSOUTH REPORTS 1991 RESULTS

 BELLSOUTH REPORTS 1991 RESULTS
 ATLANTA, Jan. 23 /PRNewswire/ -- BellSouth Corporation (NYSE: BLS)


reported year-end results that included a series of strategic moves designed to position the company for long-term growth.
 Describing the year, Chairman and Chief Executive Officer John L. Clendenin said, "We made a number of tough decisions in 1991 that should have a positive impact in the highly competitive marketplace of the future."
 BellSouth reported 1991 fourth quarter net income of $386.9 million, or 80 cents per share, an increase of $26.7 million, or 5 cents per share, over the fourth quarter of 1990, which included one-time charges totaling 13 cents per share.
 Operating revenues of $3.69 billion in the three months ended Dec. 31, 1991, increased 1.2 percent compared to $3.65 billion in the fourth quarter of 1990. Operating expenses of $2.99 billion increased 1.7 percent compared to the final quarter of 1990.
 For the full year, BellSouth's net income was $1.47 billion compared to $1.63 billion the previous year. Earnings per share were $3.04 in 1991 compared to $3.38 in 1990 and included one-time charges of 21 cents associated with an early retirement program and with an accounting change in the corporation's cellular operations.
 Annual operating revenues were $14.4 billion in 1991, compared to $14.3 billion a year earlier. Regulatory activity reduced BellSouth's revenue approximately $327 million in 1991. Including the one-time charge for the early retirement program, operating expenses increased 2.9 percent in 1991, the same rate of increase as in 1990. However, Clendenin noted that BellSouth expects savings in the new year resulting from the early retirement program which saw more than 4,000 managers leave the payroll in 1991.
 "We remained clearly focused on the long-term in 1991," said Clendenin. "We streamlined our business with the merger of our three former telephone units into BellSouth Telecommunications. We maintained an aggressive capital commitment to our core business and to our leading edge network, which helps us reduce expenses and gives our customers a far greater range of highly reliable service options at competitive prices. Most importantly, we pursued these strategies despite the continuing impact of regulatory activity and the lingering recession," he added.
 Clendenin further stated: "In 1991, we significantly grew our cellular operations worldwide and announced a major joint venture with RAM Broadcasting Corporation to develop wireless data networks around the globe. Also, we launched an innovative nationwide messaging service with our MobileComm subsidiary, and, with our partners, secured the license to become Australia's second telecommunications carrier."
 The company's newly realigned BellSouth Cellular Corp. had 985,808 customers at year end, an increase of nearly 49 percent compared to Dec. 31, 1990. Worldwide, BellSouth finished 1991 with 1,041,574 cellular subscribers. The company also experienced signficant growth in its paging operations, and ended 1991 with 1,235,799 paging customers worldwide.
 Telephone access lines in service increased by approximately 553,000, or 3.2 percent, during 1991. Total long distance access minutes also increased in the latest year, but at a lower rate than in 1990. Toll messages declined compared to 1990.
 The company noted that, as previously announced, reported results in 1992 will be affected by dilution of approximately 40 cents per share associated with its recent acquisitions and new ventures. In addition, an uncertain economic outlook, the continuing effects of recent regulatory activity, and increased competition are expected to impact earnings in 1992.
 BellSouth is an international telecommunications holding company. Its subsidiaries offer local telephone service in nine southeastern states and mobile communications services worldwide, provide advertising and publishing services and market and maintain stand-alone and fully integrated communications systems.
 Preliminary (Unaudited)
 BELLSOUTH FINANCIAL HIGHLIGHTS
 Consolidated Statements of Income
 (In Millions)
 3 mos. ended 12/31/91 12/31/90
 Operating revenues:
 Local service $ 1,454.3 $ 1,448.2
 Interstate access 717.1 710.4
 Intrastate access 208.7 227.5
 Toll 332.2 368.7
 Other 982.2 895.5
 Total operating revenues 3,694.5 3,650.3
 Operating expenses:
 Cost of services and products 1,450.1 1,511.9
 Depreciation 755.7 747.3
 Selling, general and administrative 780.6 676.8
 Total operating expenses 2,986.4 2,936.0
 Net operating revenues 708.1 714.3
 Interest expense 199.3 196.3
 Other income, net 64.2 10.1
 Income before income taxes 573.0 528.1
 Income taxes 186.1 167.9
 Net income $ 386.9 $ 360.2
 12 mos. ended 12/31/91 12/31/90
 Operating revenues:
 Local service $ 5,896.7 $ 5,706.9
 Interstate access 2,858.1 2,841.9
 Intrastate access 866.7 911.8
 Toll 1,373.7 1,565.4
 Other 3,450.3 3,319.4
 Total operating revenues 14,445.5 14,345.4
 Operating expenses:
 Cost of services and products 5,739.2 5,797.2
 Depreciation 2,965.4 2,900.9
 Selling, general and administrative 2,936.7 2,616.6
 Total operating expenses 11,641.3 11,314.7
 Net operating revenues 2,804.2 3,030.7
 Interest expense 802.1 774.3
 Other income, net 258.2 152.8
 Income before income taxes and
 cumulative effect of change in
 accounting method 2,260.3 2,409.2
 Income taxes 753.4 777.7
 Income before cumulative effect of
 change in accounting method 1,506.9 1,631.5
 Cumulative effect of change in
 accounting method (35.4) ---
 Net income $ 1,471.5 $ 1,631.5
 Preliminary
 Consolidated Balance Sheets
 (In millions)
 12/31/91 12/31/90
 (Unaudited)
 ASSETS:
 Current assets $ 3,637.5 $ 3,649.5
 Investments and advances 664.1 547.2
 Property, plant and equipment 38,403.3 36,811.6
 Less: accumulated depreciation 14,344.8 12,904.9
 Property, plant and equipment, net 24,058.5 23,906.7
 Deferred charges and other assets 898.5 1,123.3
 Intangible assets 1,683.1 980.1
 Total assets $30,941.7 $30,206.8
 LIABILITIES AND SHAREHOLDERS' EQUITY:
 Debt maturing within one year $ 1,667.8 $ 1,122.5
 Other current liabilities 3,175.7 3,153.9
 Long-term debt 7,744.6 7,781.0
 Accumulated deferred income taxes 3,798.1 4,087.1
 Unamortized investment tax credits 692.2 800.9
 Other liabilities 758.4 595.0
 Shareholders' equity 13,104.9 12,666.4
 Total liabilities and shareholders'
 equity $30,941.7 $30,206.8
 Preliminary (Unaudited)
 Selected Data
 3 mos. ended 12/31/91 12/31/90
 Return to equity 11.8 pct. 11.4 pct.
 Return to average total capital 9.7 pct. 9.4 pct.
 Weighted average common shares
 and equivalent shares
 outstanding (millions) 486.2 482.4
 Earnings per share $ .80 $ .75
 Dividend per share $ .69 $ .67
 Property additions (millions) $ 769.4 $1,140.2
 Access minutes of use (millions):
 Interstate 12,002.4 11,284.9
 Intrastate 3,379.1 3,176.9
 IntraLATA toll messages (millions) 340.4 347.0
 At Dec. 31 1991 1990
 Common shares outstanding (millions) 486.7 481.9
 Debt ratio 41.3 pct. 40.7 pct.
 Total employees 96,084 101,945
 Telephone employees 82,245 85,967
 Network access lines in service
 (thousands) 18,062 17,510
 Preliminary (Unaudited)
 Selected Data
 12 mos. ended 12/31/91 12/31/90
 Return to equity 11.3 pct. 12.8 pct.
 Return to average total capital 9.4 pct. 10.4 pct.
 Weighted average common shares
 and equivalent shares
 outstanding (millions) 484.3 482.4
 Earnings per share $ 3.04 $ 3.38
 Dividend per share $ 2.76 $ 2.68
 Property additions (millions) $3,091.3 $3,385.6
 Access minutes of use (millions):
 Interstate 47,208.7 44,868.4
 Intrastate 13,217.7 12,102.1
 IntraLATA toll messages (millions) 1,389.9 1,459.5
 At Dec. 31 1991 1990
 Common shares outstanding (millions) 486.7 481.9
 Debt ratio 41.3 pct. 40.7 pct.
 Total employees 96,084 101,945
 Telephone employees 82,245 85,967
 Network access lines in service
 (thousands) 18,062 17,510
 Domestic Mobile Communications Information (Unaudited)
 (Dollars in thousands)
 FOURTH QUARTER NOTE 1991(5) 1990(5)
 Total revenues (1) $276,951 $183,769
 Operating expenses (1) $190,622 $127,791
 Depreciation expense (1) $ 25,919 $ 16,739
 Amortization of intangibles
 (including goodwill) (1) $ 16,749 $ 7,795
 Total operating expenses (1) $233,290 $152,325
 Operating income (1) $ 43,661 $ 31,444
 Net income (loss) $ 13,023 $ 10,749
 Operating margin:
 Including depreciation and
 amortization 15.76 pct. 17.11 pct.
 Excluding depreciation and
 amortization 31.17 pct. 30.46 pct.
 Operational Comparisons
 Cellular markets served 46 36
 Population served (2) 36,139,000 30,650,000
 Cellular customers served: (3A) 985,808 663,199(a)
 (3B) 774,228 498,298
 Paging markets served 68 63
 Pagers in service (4) 920,344 562,245
 YEAR-TO-DATE NOTE 1991(5) 1990(5)
 Total revenues (1) $899,526 $654,363
 Operating expenses (1) $619,263 $453,396
 Depreciation expense (1) $ 87,581 $ 61,254
 Amortization of intangibles
 (including goodwill) (1) $ 43,645 $ 32,635
 Total operating expenses (1) $750,489 $547,285
 Operating income (1) $149,037 $107,078
 Net income (loss) $ 57,241 $ 38,180
 Operating margin:
 Including depreciation and
 amortization 16.57 pct. 16.36 pct.
 Excluding depreciation and
 amortization 31.16 pct. 30.71 pct.
 Operational Comparisons
 Cellular markets served 46 36
 Population served (2) 36,139,000 30,650,000
 Cellular customers served: (3A) 985,808 663,199(a)
 (3B) 774,228 498,298
 Paging markets served 68 63
 Pagers in service (4) 920,344 562,245
 (a) Adjusted to reflect a revision in amount previously reported.
 NOTES
 (1) The presentation of selected income statement information is based on BellSouth's ownership percentage for all domestic mobile subsidiaries and affiliates, whether or not consolidated for financial statement presentation purposes.
 (2) Includes population based on BellSouth's ownership percentage in all MSA and RSA markets served.
 (3A) Includes 100 percent of customers in respective markets where BellSouth's operating control equals or exceeds 50 percent; no customers are included for markets where operating control is less than 50 percent.
 (3B) Includes customers based on BellSouth's ownership percentage in all markets served.
 (4) The 1990 "Pagers in Service" figure has been restated to conform to the 1991 presentation.
 (5) The 1991 and 1990 information has been restated to reflect the impact of the change in accounting for commissions by BellSouth Mobility Inc.
 -0- 1/23/92
 /CONTACT: Terry Johnson of BellSouth Corporation, 404-249-2869/
 (BLS) CO: BellSouth Corporation ST: Georgia IN: TLS SU: ERN


BN-BR -- AT006 -- 2872 01/23/92 14:04 EST
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