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CENTEL REPORTS QUARTERLY EARNINGS, REVENUES

 CENTEL REPORTS QUARTERLY EARNINGS, REVENUES
 CENTEL CORPORATION
 Consolidated Summary of Earnings
 (Unaudited)
 Quarter ended Sept. 30: 1992 1991
 Revenues and sales $299,849,000 $295,303,000
 Expenses
 Operating expenses 208,858,000 198,736,000
 Depreciation and amortization 49,478,000 51,488,000
 Total expenses 258,336,000 250,224,000
 Operating income 41,513,000 45,079,000
 Gain on sale of telephone properties -- 27,181,000
 Equity in earnings of investees, net 6,507,000 4,711,000
 Nonoperating income, net 896,000 1,916,000
 Interest expense 31,552,000 35,105,000
 Income from continuing operations
 before income taxes 17,364,000 43,782,000
 Income tax provision 5,890,000 14,850,000
 Income from continuing operations 11,474,000 28,932,000
 Discontinued operations
 Income from discontinued operations -- 5,310,000
 Gain on sale of electric operations -- 36,978,000
 Total discontinued operations -- 42,288,000
 Income before extraordinary charges 11,474,000 71,220,000
 Extraordinary charges, net -- 439,000
 Net income 11,474,000 70,781,000
 Preferred stock dividends 219,000 377,000
 Earnings avail. for common shareowners 11,255,000 70,404,000
 Weighted average common shares outstdg. 85,512,000 84,886,000
 Earnings per share (in dollars)
 Income from continuing operations $ .13 $ .34
 Income before extraordinary charges .13 .83
 Earnings available for common shareowners .13 .83
 Dividends paid per share (in dollars) $.225 $ .22
 Construction expenditures $75,442,000 $58,847,000
 Nine months ended Sept. 30: 1992 1991
 Revenues and Sales $886,893,000 $881,805,000
 Expenses
 Operating expenses 604,060,000 589,576,000
 Depreciation and amortization 149,125,000 155,476,000
 Total expenses 753,185,000 745,052,000
 Operating income 133,708,000 136,753,000
 Gain on sale of telephone properties 81,082,000 92,480,000
 Equity in earnings of investees, net 9,827,000 6,531,000
 Nonoperating income, net 2,610,000 2,962,000
 Interest expense 94,317,000 110,273,000
 Income from continuing operations
 before income taxes 132,910,000 128,453,000
 Income tax provision 57,213,000 41,779,000
 Income from continuing operations 75,697,000 86,674,000
 Discontinued operations income from
 discontinued operations -- 13,342,000
 Gain on sale of electric operations -- 36,978,000
 Total discontinued operations -- 50,320,000
 Income before extraordinary charges 75,697,000 136,994,000
 Extraordinary charges, net -- 1,572,000
 Net income 75,697,000 135,422,000
 Preferred stock dividends 961,000 1,149,000
 Earnings avail. for common shareowners 74,736,000 134,273,000
 Weighted average common shares outstdg. 85,381,000 84,723,000
 Common shares outstdg. at end of quarter 85,564,000 84,941,000
 Earnings per share (in dollars)
 Income from continuing operations $ .88 $1.01
 Income before extraordinary charges .88 1.60
 Earnings available for common shareowners .88 1.58
 Dividends paid per share (in dollars) $ .675 $ .66
 Construction expenditures $193,614,000 $183,219,000
 The accompanying Notes to Consolidated Financial Statements are an integral part of the financial information presented above.
 Notes to Consolidated Financial Statements
 (Unaudited)
 1. In April 1992, the company completed the sale of its local telephone operations in Ohio to Century Telephone Enterprises, Inc. for $129 million, including $114 million in cash and $15 million in assumed debt. The company realized an after-tax gain of $43.5 million ($.51 per share) on the sale.
 In August 1991, the company completed the sale of its local telephone operations in Iowa to Rochester Telephone Corporation (Rochester) for $80 million in cash. The company realized an after-tax gain of $18.2 million ($.21
per share) on the sale. In June 1991, the company completed the sale of its local telephone operations in Minnesota to Rochester for $36 million in cash, 2,885,000 shares (9.1 percent) of Rochester's common stock and ownership rights to Rochester's investment in various cellular franchises that serve a population of 435,000. The company realized an after-tax gain of $45.6 million ($.54 per share) on the sale.
 2. In September 1991, the company completed the sale of its electric operations to Utilicorp United. The company received $320 million in cash, net of $26 million in liabilities assumed by Utilicorp United and realized a gain of $37 million ($ .44 per share), net of related income tax expense of $8.8 million. Revenues from discontinued operations were $171.9 million for the nine months ended Sept. 30, 1991 and $56.1 million for the quarter ended Sept. 30, 1991. Income from discontinued operations is net of applicable income tax expense of $7.2 million for the nine months ended Sept. 30, 1991 and $2.8 million for the quarter ended Sept. 30, 1991.
 3. During the third quarter of 1992, the company's Central Telephone subsidiary issued $114.0 million of First Mortgage Bonds to refinance higher cost long-term debt, $55.5 million of which was redeemed during the third quarter of 1992. An additional $65.6 million of debt will be retired early in the fourth quarter, and accordingly has been classified as Debt Due Within One Year on the Sept. 30, 1992, Consolidated Balance Sheet. Call premiums and unamortized debt issuance cost related to the retired debt, consistent with regulatory treatment, will be deferred and amortized over the life of the new debt issues.
 4. In May 1992, the company announced that it planned to merge with Sprint Corp. (Sprint) under a merger agreement which provides that the company will become a wholly owned subsidiary of Sprint, a diversified telecommunications company. The merger is subject to approval by the shareholders of the company and Sprint and to various regulatory approvals. Following announcement of the agreement to merge with Sprint, class action suits were filed against the company and its directors in federal and state courts. The federal suits seek damages for alleged violations of securities laws and the state suits seek to enjoin the merger and damages for alleged breaches of fiduciary duties. In the opinion of counsel for the company, these suits are without merit and an unfavorable outcome is remote.
 -0- 10/16/92 AB
 /END FIRST AND FINAL ADD/
 (CNT) CO: Centel Corp. ST: Illinois IN: TLS SU: ERN


TS -- NY015A -- 0835 10/16/92 10:04 EDT
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