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BELLSOUTH REPORTS THIRD QUARTER RESULTS

 BELLSOUTH REPORTS THIRD QUARTER RESULTS
 ATLANTA, Oct. 20 /PRNewswire/ -- BellSouth Corporation (NYSE: BLS)


reported third quarter revenues for the three months ended Sept. 30 of $3.74 billion, up 3.0 percent from the same quarter a year ago.
 Improved revenues from local service, interstate access and cellular service contributed to the gain.
 "We had good growth in revenues and in key business volumes during the third quarter," said John L. Clendenin, chairman and chief executive officer. "At the same time, bond refinancing, the business impact of Hurricane Andrew, and our continued commitment to strategic new businesses affected reported earnings."
 Operating expenses, which increased 1.6 percent overall, were affected by the development costs of new businesses and by a new three- year contract with the Communications Workers of America. While the total cost of Hurricane Andrew has not been identified, its business impact during the third quarter resulted mainly from expenses associated with restoring the network and from delay in publication of the Miami Yellow Pages.
 Net income for the quarter was $344.9 million and was impacted by an extraordinary charge of $40.7 million related to the refinancings of $550 million in bonds at more favorable interest rates. The bond refinancings will result in significant savings in interest expense over the lives of the new debt issues.
 Earnings were 70 cents per share in the third quarter, after including a charge of 8 cents per share for the bond refinancings. Earnings per share for the same quarter last year were 73 cents.
 BellSouth's cellular business continued to grow worldwide and, including gains in newly acquired cellular markets, the company had 1,290,911 U.S. subscribers at the end of the third quarter, an increase of 48 percent compared with a year earlier. Overseas, BellSouth had 52,690 cellular subscribers at the end of September 1992, compared with 19,922 a year ago.
 Telephone access lines in BellSouth's nine-state region continued to grow at a rate faster than the nation as a whole and increased to 18,547,300 in the third quarter of 1992, an annual increase of 3.3 percent. Total long distance access minutes increased 7.5 percent over the third quarter of 1991.
 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 9/30/92 9/30/91
 Operating revenues:
 Network and related services
 Local service $ 1,587.8 $ 1,501.4
 Interstate access 749.8 701.1
 Intrastate access 217.1 221.8
 Toll 310.1 346.9
 Directory advertising and publishing 292.7 351.7
 Wireless communications 311.0 195.2
 Other services 267.5 310.4
 Total operating revenues 3,736.0 3,628.5
 Operating expenses:
 Cost of services and products 1,299.0 1,422.9
 Depreciation 753.6 743.0
 Selling, general and administrative 943.8 784.0 (a)
 Total operating expenses 2,996.4 2,949.9
 Operating income 739.6 678.6
 Interest expense 178.7 199.9
 Other income, net 36.1 56.0
 Income before income taxes
 and extraordinary loss 597.0 534.7
 Income taxes 211.4 182.3
 Income before extraord. loss 385.6 352.4
 Extraord. loss (net of tax) (40.7) ---
 Net income $ 344.9 $ 352.4
 (a) As previously reported, selling, general and administrative expense for the three and nine months ended Sept. 30, 1991, includes one-time charges totaling $86.3 million related to an early retirement program and an accounting change.
 9 mos. ended 9/30/92 9/30/91
 Operating revenues:
 Network and related services
 Local service $ 4,649.7 $ 4,405.7
 Interstate access 2,204.6 2,141.0
 Intrastate access 656.4 658.0
 Toll 947.7 1,041.5
 Directory advertising and publishing 992.0 1,007.8
 Wireless communications 861.6 541.8
 Other services 979.5 955.2
 Total operating revenues 11,291.5 10,751.0
 Operating expenses:
 Cost of services and products 4,165.7 4,289.1
 Depreciation 2,245.2 2,209.7
 Selling, general and administrative 2,454.2 2,156.1 (a)
 Total operating expenses 8,865.1 8,654.9
 Operating income 2,426.4 2,096.1
 Interest expense 571.1 602.8
 Other income, net 185.0 194.0
 Income before income taxes,
 extraordinary loss, and
 cumulative effect of change in
 accounting method 2,040.3 1,687.3
 Income taxes 735.3 567.3
 Income before extraord. loss
 and cumulative effect of change
 in accounting method 1,305.0 1,120.0
 Extraord. loss (net of tax) (40.7) ---
 Cumulative effect of change in
 accounting method (net of tax) --- (35.4)
 Net income $ 1,264.3 $ 1,084.6
 (a) As previously reported, selling, general and administrative expense for the three and nine months ended Sept. 30, 1991, includes one-time charges totaling $86.3 million related to an early retirement program and an accounting change.
 Preliminary
 BELLSOUTH FINANCIAL HIGHLIGHTS
 CONSOLIDATED BALANCE SHEETS
 (in millions)
 9/30/92 12/31/91
 (Unaudited)
 ASSETS:
 Current assets $ 3,647.4 $ 3,637.5
 Investments and advances 1,109.6 664.1
 Property, plant and equipment 39,486.2 38,403.3
 Less: accumulated depreciation 15,541.0 14,344.8
 Property, plant and equipment, net 23,945.2 24,058.5
 Deferred charges and other assets 627.6 898.5
 Intangible assets 1,794.0 1,683.1
 Total assets $31,123.8 $30,941.7
 LIABILITIES AND SHAREHOLDERS' EQUITY:
 Debt maturing within one year $ 1,316.7 $ 1,667.8
 Other current liabilities 3,325.7 3,175.7
 Long-term debt 7,572.9 7,744.6
 Accumulated deferred income taxes 3,767.2 3,798.1
 Unamortized investment tax credits 621.1 692.2
 Other liabilities 835.8 758.4
 Shareholders' equity 13,684.4 13,104.9
 Total liabilities and shareholders'
 equity $31,123.8 $30,941.7
 Preliminary (Unaudited)
 Selected Data
 3 mos. ended 9/30/92 9/30/91
 Return to equity 10.0 pct. 10.8 pct.
 Return to average total capital 8.7 pct. 9.1 pct.
 Weighted average common shares
 and equivalent shares
 outstanding (millions) 491.5 484.9
 Earnings per share $ .70 $ .73
 Dividend per share $ .69 $ .69
 Property additions (millions) $ 800.7 $ 713.3
 At Sept. 30 1992 1991
 Common shares outstanding (millions) 492.2 485.1
 Debt ratio 38.9 pct. 41.4 pct.
 Total employees 96,975 99,229
 Preliminary (Unaudited)
 Selected Data
 9 mos. ended 9/30/92 9/30/91
 Return to equity 12.4 pct. 11.2 pct.
 Return to average total capital 10.1 pct. 9.3 pct.
 Weighted average common shares
 and equivalent shares
 outstanding (millions) 489.9 483.6
 Earnings per share $ 2.58 $ 2.24
 Dividend per share $ 2.07 $ 2.07
 Property additions (millions) $2,119.9 $2,321.9
 Preliminary (Unaudited)
 BELLSOUTH TELECOMMUNICATIONS FINANCIAL HIGHLIGHTS
 Consolidated Statements of Income
 (In Millions)
 3 mos. ended 9/30/92 9/30/91
 Operating revenues $ 3,311.1 $ 3,233.8
 Operating expenses 2,613.2 2,576.7
 Operating income 697.9 657.1
 Interest expense 140.3 155.1
 Other income (expense), net 3.9 (8.0)
 Income before income taxes and
 extraordinary loss 561.5 494.0
 Income taxes 181.4 156.6
 Income before extraordinary loss 380.1 337.4
 Extraordinary loss (net of tax) (40.7) ---
 Net income $ 339.4 $ 337.4
 9 mos. ended 9/30/92 9/30/91
 Operating revenues $ 9,890.0 $ 9,590.6
 Operating expenses 7,575.5 7,548.9
 Operating income 2,314.5 2,041.7
 Interest expense 444.3 475.2
 Other income (expense), net 70.7 (13.7)
 Income before income taxes and
 extraordinary loss 1,940.9 1,552.8
 Income taxes 651.4 494.2
 Income before extraordinary loss 1,289.5 1,058.6
 Extraordinary loss (net of tax) (40.7) ---
 Net income $ 1,248.8 $ 1,058.6
 Preliminary (Unaudited)
 Selected Data
 3 mos. ended 9/30/92 9/30/91
 Property additions (millions) $ 710.7 $ 633.5
 Interest charged construction $ 3.6 $ 5.3
 Access minutes of use (millions):
 Interstate 12,728.5 11,806.0
 Intrastate 3,556.1 3,340.0
 IntraLATA toll messages (millions) 317.2 349.5
 At Sept. 30 1992 1991
 Debt ratio 37.7 pct. 38.2 pct.
 Telephone employees 82,963 86,202
 Network access lines in service (000's) 18,547 17,953
 9 mos. ended 9/30/92 9/30/91
 Property additions (millions) $ 1,935.4 $ 2,105.9
 Interest charged construction $ 10.8 $ 14.8
 Access minutes of use (millions):
 Interstate 37,703.7 35,245.8
 Intrastate 10,417.0 9,854.2
 IntraLATA toll messages (millions) 973.3 1,049.6
 SELECTED WIRELESS COMMUNICATIONS INFORMATION
 (Unaudited)
 (dollars in thousands)
 3 mos. ended NOTES 9/30/92 9/30/91
 DOMESTIC OPERATIONS
 Cellular revenues (1) $258,918 $191,817
 Paging and other revenues (1) 48,884 30,427
 Total revenues (1) 307,802 222,244
 Operating expenses (1)(3) 199,951 151,796
 Depreciation expense (1) 31,371 22,714
 Amortization of intangibles
 (including goodwill) (1) 13,054 9,524
 Total operating expenses (1)(3) 244,376 184,034
 Operating income (1)(3) 63,426 38,210
 Other expenses (including
 interest and taxes) (1) 34,593 20,989
 Net income (loss) (1)(3) $ 28,833 $ 17,221
 Operating margins:
 Including depreciation and
 amortization 20.61 pct. 17.19 pct.
 Excluding depreciation and
 amortization 35.04 pct. 31.70 pct.
 Year-to-date NOTES 1992 (7) 1991 (3)
 DOMESTIC OPERATIONS
 Cellular revenues (1) $729,885 $532,608
 Paging and other revenues (1) 143,633 89,967
 Total revenues (1) 873,518 622,575
 Operating expenses (1)(3) 579,405 428,641
 Depreciation expense (1) 89,392 61,662
 Amortization of intangibles
 (including goodwill) (1) 43,452 26,896
 Total operating expenses (1)(3) 712,249 517,199
 Operating income (1)(3) 161,269 105,376
 Other expenses (including
 interest and taxes) (1) 91,646 61,158
 Net income (loss) (1)(3) $ 69,623 $ 44,218
 Operating margins:
 Including depreciation and
 amortization 18.46 pct. 16.93 pct.
 Excluding depreciation and
 amortization 33.67 pct. 31.15 pct.
 SELECTED DOMESTIC BALANCE
 SHEET DATA (4)
 At Sept. 30,
 1992
 Property, plant and
 equipment - gross (1) $1,121,135
 Property, plant and
 equipment - net (1) $ 796,122
 Total assets (1) $2,639,805
 Total equity (1) $1,854,195
 DOMESTIC OPERATIONAL COMPARISONS
 At Sept. 30 1992 1991
 Population served:
 Control basis (2A) 48,726,000 43,579,000
 Equity basis (2B) 37,471,000 32,061,000
 Cellular subscribers served:
 Control basis (2A) 1,290,911 872,388
 Equity basis (2B) 1,005,626 667,824
 Paging customers served: (5)
 Control basis (2A) 1,123,482 601,289
 Equity basis (2B) 956,756 601,289
 SELECTED INTERNATIONAL
 WIRELESS DATA (4)(6)
 At Sept. 30, Year-to-date
 1992 1992
 Revenues (proportional) (1) $ 49,962 $ 130,788
 Population served:
 Control basis (2A) 24,900,000 ---
 Equity basis (2B) 36,826,000 ---
 Cellular subscribers served:
 Control basis (2A) 52,690 ---
 Equity basis (2B) 54,304 ---
 Total subscribers served 111,682 ---
 Pagers in service (2A) 212,026 ---
 NOTES
 (1) The presentation of selected income statement and balance sheet information is based on BellSouth's ownership percentage for all domestic and international wireless subsidiaries and affiliates, whether or not consolidated for financial statement presentation purposes.
 (2A) Includes 100 percent of population/subscribers served in markets where BellSouth has operating control and/or BellSouth ownership exceeds 50 percent; excludes population/subscribers served for markets where BellSouth does not have operating control and ownership is less than 50 percent.
 (2B) Includes population/subscribers served based on BellSouth's ownership percentage in all markets served.
 (3) The 1991 information has been restated to reflect the impact of the change in accounting for commissions by BellSouth Mobility Inc.
 (4) The 1991 selected domestic balance sheet data and 1991 selected international wireless information has not been presented.
 (5) Domestic Pagers in Service do not include pagers managed directly by BellSouth Telecommunications, Inc.
 (6) Includes all international wireless operations except a 4 percent portfolio investment in French cellular operations.
 (7) Certain first quarter 1992 information has been reclassified for reporting purposes.
 -0- 10/20/92
 /CONTACT: Larry Stevens of BellSouth Corporation, 404-249-2832/ (BLS) CO: BellSouth Corporation ST: Georgia IN: TLS SU: ERN


EA-BR -- AT014 -- 2379 10/20/92 14:08 EDT
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