ASSOCIATED COMMUNICATIONS ANNOUNCES THIRD QUARTER EARNINGS
PITTSBURGH, Nov. 12 /PRNewswire/ -- Associated Communications Corporation (NASDAQ: ACCMA, ACCMB) today announced third quarter 1991 revenues of $12.5 million, or an increase of 34.9 percent compared to revenues of $9.2 million for the third quarter 1990. Net loss for the third quarter was $4.0 million, or $.11 per share, versus net income of $1.8 million, or $.05 per share in the third quarter 1990.
For the first nine months of 1991, Associated's revenues were $33.7 million, an increase of 29.5 percent from the previous year. Net loss for the period was $6.3 million, or $.17 per share, compared to net income of $18.9 million, or $.51 per share in the first nine months of 1990. The 1990 results were significantly affected by the sale of the company's stock in WestMarc Communications, Inc., which yielded a pretax gain of $17.8 million.
The losses for the quarter and for the nine month period were primarily attributable to a $5.7 million and $9.2 million (respectively) non-cash charge due to the increased value of unexercised stock appreciation rights resulting from the increase in the market price of the company's stock, as well as increased vesting during the periods.
Associated Communications Corporation is engaged in selected aspects of the communications industry and has interests in cellular telephone companies located in San Francisco-San Jose, Buffalo, Rochester, Albany and Pittsburgh.
In addition, Associated has a 24 percent interest in a Mexican corporation which has received a license to construct and operate a cellular telephone system in Southeastern Mexico and the Yucatan Peninsula. The Mexican cellular telephone system commenced operations in December 1990.
Associated's interests include significant holdings in Tele- Communications Inc. (the country's largest CATV multi-system operator).
A subsidiary of Associated has received an experimental license to test an innovative Personal Communications Network (PCN) in Los Angeles.
Other Associated operations include radio broadcasting stations WSTV-AM and WRKY-FM located in Steubenville, Ohio, Associated American Artists, Inc. (a leading graphic art gallery located in New York City), and Associated Communications of Los Angeles, Inc. (a microwave communications system).
ASSOCIATED COMMUNICATIONS CORPORATION
Quarter ended Sept. 30; 1991 1990
Revenues $12,453,000 $ 9,234,000
Net (loss) income $(3,973,000)(A) $ 1,798,000(C)
Share earnings $ (.11)(A) $ .05(C)(D)
Nine Months ended Sept. 30; 1991 1990
Revenues $33,672,000 $26,008,000
(Loss) income $(6,285,000)(B) $13,006,000(E)(F)
Extraordinary credit -- $ 5,900,000(G)
Net (loss) income $(6,285,000)(B) $18,906,000(E)(F)(G)
Before extraordinary credit (.17)(B) .35(D)(E)(F)
Extraordinary credit -- .16(D)(G)
Share earnings (.17)(B) .51(D)(E)(F)(G)
(A) -- Reflects stock appreciation rights expense of $5,718,000.
(B) -- Reflects stock appreciation rights expense of $9,183,000.
(C) -- Reflects stock appreciation rights credit of $995,000.
(D) -- Adjusted for the stock split, effected in the form of a
100 percent dividend, declared on May 2, 1991, to
stockholders of record of May 14, 1991, and paid on
May 28, 1991.
(E) -- Reflects stock appreciation rights credit of $1,211,000.
(F) -- Includes gain on sale of marketable equity securities of
(G) -- Reflects tax benefit of $5,900,000 from tax loss
/CONTACT: Keith Hartman of Associated Communications, 412-281-1907/
(ACCM) CO: Associated Communications Corporation ST: Pennsylvania IN: TLS SU: ERN JT -- NY083 -- 3624 11/12/91 16:49 EST