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CELLULAR COMMUNICATIONS, INC. ANNOUNCES OPERATING RESULTS FOR THIRD QUARTER 1993

 NEW YORK, Nov. 12 /PRNewswire/ -- Cellular Communications, Inc. (NASDAQ: COMMA) ("CCI") announced today its operating results for the three and nine months ended Sept. 30, 1993.
 On Aug. 1, 1991, CCI and PacTel Corporation ("PacTel") formed a Joint Venture equally owned by CCI and PacTel comprised of CCI's cellular telephone interests in Ohio and PacTel's cellular telephone Interests in Michigan and Ohio.
 The following summarizes the results of the Joint Venture for the three and nine months ended Sept. 30, 1993 and 1992:
 CCI/PACTEL JOINT VENTURE
 (in thousands, except subscribers)
 Periods ended Sept. 30 Three Months
 1993 1992
 Revenues:
 Service $103,805 $81,540
 Equipment, net 4,257 3,864
 Total revenues 108,062 85,404
 Expenses:
 Operating 24,341 18,175
 SG&A 37,698 30,846
 Total expenses 62,039 49,021
 Operating income 46,023 36,383
 Depreciation and
 amortization (21,059) (16,154)
 Interest and other, net (667) (719)
 Net income $24,297 $19,510
 Ending subscribers 434,000 342,000
 CCI/PACTEL JOINT VENTURE
 (In thousands, except subscribers)
 Periods ended Sept. 30 Nine Months
 1993 1992
 Revenues:
 Service $286,178 $226,913
 Equipment, net 13,830 10,759
 Net revenues 300,008 237,672
 Expenses:
 Operating 66,737 50,455
 SG&A 101,840 89,588
 Total expenses 168,577 140,043
 Operating income 131,431 97,629
 Depreciation and amortization (60,368) (45,756)
 Interest and other, net (736) (443)
 Net income $70,327 $51,430
 Ending subscribers 434,000 342,000
 Discussion of Joint Venture Third Quarter Results
 Service revenue increased to $103,805,000 from $81,540,000 as a result of subscriber growth.
 The income from telephone equipment (before depreciation for rental telephones) increased to $4,257,000 from $3,864,000 because of increased telephone rental income, offset by increased rental telephone bad debt expenses.
 Operating expenses increased to $24,341,000 from $18,175,000 primarily because of increases in subscriber usage, roaming activity and property taxes.
 Selling, general and administrative expenses increased to $37,698,000 from $30,846,000, but declined as a percentage of service revenue to 36 percent from 38 percent. The decline in percentage terms is due to the conversion of the Michigan billing system from an outside provider to internal operations and a decline in the selling costs per new activation, while the increase in absolute costs is due to increases in selling costs, bad debt expense and payroll.
 Depreciation and amortization increased to $21,059,000 from $16,154,000 due to the depreciation of additional cellular network equipment and rented telephones,
 Interest and other, net changed to $(667,000) from $(719,000) because 1993 includes a $601,000 loss on disposals of equipment and 1992 includes a $1,162,000 loss on disposals of primarily obsolete network equipment. Net interest income was $657,000 and $329,000 in 1993 and 1992, respectively.
 CELLULAR COMMUNICATIONS, INC.
 (In thousands, except per share data)
 Periods ended Sept. 30 Three Months
 1993 1992
 Revenues:
 Equity in net income of
 Joint Venture $ 12,501 10,117
 Management fees 12 --
 Total revenues 12,513 10,117
 Expenses:
 SG&A 3,924 4,160
 Operating income 8,589 5,957
 Depreciation and amortization (576) (646)
 Net Interest (expense) (3,054) (2,278)
 Equity in net loss of unconsolidated
 subsidiary -- (154)
 Income before income taxes
 and extraordinary item 4,959 2,879
 Provision for income taxes (1,398) (1,794)
 Income before extraordinary item 3,561 1,085
 Income tax reduction resulting from
 utilization of net operating lose
 carryforwards -- 1,525
 Net income 3,561 2,610
 Net income per common share:
 Income before extraordinary item .08 .01
 Extraordinary item -- .04
 Net Income .08 .05
 Weighted average shares 44,461 43,817
 NOTE: The net income per share is calculated after deducting the accrued dividend requirements on CCI's redeemable preferred stock of $0 and $525,000 for the three months ended Sept. 30, 1993 and 1992, respectively, from the net income for the period.
 CELLULAR COMMUNICATIONS, INC.
 (In thousands, except per share data)
 Periods ended Sept. 30 Nine Months
 1993 1992
 Revenues:
 Equity in net income
 of Joint Venture $36,231 $ 26,800
 Service -- 1,293
 Management fees 38 191
 Equipment, net -- 41
 Total revenues 36,269 28,325
 Expenses:
 Operating -- 572
 SG&A 11,462 13,289
 Total expenses 11,462 13,861
 Operating income 24,807 14,464
 Depreciation and amortization (1,726) (3,246)
 Net interest (expense) (8,921) (8,860)
 Equity in net loss of unconsolidated
 subsidiary -- (438)
 Nonrecurring charges -- (396)
 Income before income taxes, extraordinary
 item and cumulative effect
 of accounting change 14,160 1,524
 Provision for income taxes (4,532) (3,052)
 Income (loss) before extraordinary item and
 cumulative effect of
 accounting change 9,628 (1,528)
 Income tax reduction resulting from
 utilization of net operating
 loss carryforwards -- 2,678
 Cumulative effect of change in accounting
 for income taxes 8,000 --
 Net income 17,628 1,150
 Net income (loss) per common share:(A)
 Income (loss) before extraordinary
 item and cumulative effect
 of accounting change $.22 (.07)
 Extraordinary item -- .06
 Cumulative effect of change in accounting
 for income taxes .18 --
 Net income (loss) .40 (.01)
 Weighted average shares 44,230 43,730
 NOTE: (A) The net income (loss) per share is calculated after deducting the accrued dividend requirements on CCI's redeemable preferred stock of $35,000 and $1,575,000 for the nine months ended Sept. 30, 1993 and 1992, respectively, from the net income for the period.
 Discussion of CCI Third Quarter Results
 Equity in net income of Joint Venture increased to $12,501,000 from $10,117,000 because of the increase in the net income of the Joint Venture.
 Selling, general and administrative expenses decreased to $3,924,000 from $4,160,000. Included in the 1993 and 1992 amounts is $2,760,000 of non-cash expense related to the changes made to the stock option agreements at the time of the Merger Agreement.
 Depreciation and amortization decreased to $576,000 from $646,000. Included in the 1992 amount was $72,000 of license acquisition cost amortization for cellular licenses that were sold or contributed to the Joint Venture.
 Net interest expense increased to $3,054,000 from $2,278,000 because of a one-time adjustment reducing the interest on the bank loan by $484,000 in 1992. This interest expense increase was offset by a lower interest rate on the bank loan in 1993, and by an increase in the effective interest rate and principal balance of the CCPR note receivable in 1993.
 -0- 11/12/93
 /CONTACT: Stanton N. Williams, director-corporate development, 212-906-8448, or Richard J. Lubasch, vice president-general counsel, 212-906-8470, both of Cellular Communications, Inc./
 (COMMA)


CO: Cellular Communications, Inc.; PacTel, Inc. ST: New York IN: TLS SU: ERN

TM -- NY091 -- 3967 11/12/93 18:58 EST
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Date:Nov 12, 1993
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