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CELLULAR COMMUNICATIONS ANNOUNCES OPERATING RESULTS FOR SECOND QUARTER 1992

 CELLULAR COMMUNICATIONS ANNOUNCES OPERATING RESULTS
 FOR SECOND QUARTER 1992
 NEW YORK, Aug. 14 /PRNewswire/ -- Cellular Communications, Inc. (NASDAQ: COMMA) ("CCI") announced today its operating results for the three and six months ended June 30, 1992.
 On Aug. 1, 1991, CCI and 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 six months ended June 30, 1992 and the pro forma results for the three and six months ended June 30, 1991 as if the joint venture had existed at the beginning of 1991:
 CCI/PACTEL JOINT VENTURE
 (In thousands, except subscribers)
 Three Months Ended June 30 1992 1991
 Revenues:
 Service $77,045 $61,042
 Equipment, net 3,866 1,860
 Total 80,911 62,902
 Expenses:
 Operating 16,980 11,785
 SG&A 29,640 23,458
 Total 46,620 35,243
 Operating income 34,291 27,659
 Depreciation and amortization (15,361) (12,164)
 Interest and other, net 351 933
 Net income $ 19,281 $ 16,428
 Ending subscribers 324,000 242,000
 Six Months Ended June 30 1992 1991
 Revenues:
 Service $145,373 $112,330
 Equipment, net 6,895 3,089
 Total 152,268 115,419
 Expenses:
 Operating 32,280 22,473
 SG&A 58,742 44,846
 Total 91,022 67,319
 Operating income 61,246 48,100
 Depreciation and amortization (29,602) (24,248)
 Interest and other, net 276 1,902
 Net income $31,920 $25,754
 Discussion of Joint Venture Second Quarter Results
 Cellular service revenue increased from $61,042,000 to $77,045,000 primarily because of the increase in the number of subscribers. The gross margin from equipment increased in 1992 due to increased revenue from the joint venture's cellular phone rental program.
 Operating expenses increased from $11,785,000 to $16,980,000, representing 19 percent and 22 percent of service revenues, respectively. The increase in absolute and percentage terms is due to the increasing level of subscriber activity and the company's expanded cellular network subject to the Ohio personal property tax.
 Selling, general and administrative expenses rose from $23,458,000 to $29,640,000. The increase was attributable to the increase in the number of subscriber activations and the costs of servicing and maintaining the larger subscriber base.
 Depreciation and amortization expense increased from $12,164,000 to $15,361,000 due to the significant increase in the number of rented telephones and the increase in cellular network and in-house billing computer equipment to serve the increased subscriber base.
 CCI Results
 Effective with the formation of the joint venture, CCI no longer consolidates its former Ohio cellular telephone interests that were contributed to the joint venture. Instead, CCI records 50 percent of the net income of the joint venture as "Equity in net income of joint venture." In addition, on July 31, 1991, CCI distributed the shares of its wholly owned subsidiaries OCOM Corporation (OCOM) and Cellular Communications International, Inc. (CCII) to its shareholders. On Feb. 28, 1992, CCI distributed the shares of its wholly-owned subsidiary Cellular Communications of Puerto Rico, Inc. (CCPR) to its shareholders. CCI's results of operations do not include OCOM and CCII after July 31, 1991 and CCPR after Feb. 28, 1992. As a result of these changes, comparisons of 1992 and 1991 results may not be meaningful and therefore, 1991 results for CCI are not presented.
 CELLULAR COMMUNICATIONS, INC.
 (In thousands, except per share data)
 Three Months Ended June 30 1992
 Revenues:
 Equity in net income of joint venture $10,001
 Management fees 23
 Total 10,024
 Expenses:
 SG&A 3,654
 Total 3,654
 Operating income 6,370
 Depreciation and amortization (662)
 Net interest (expense) (2,858)
 Equity in net loss of unconsolidated subsidiary (284)
 Nonrecurring charges 111
 Income before income taxes 2,677
 Provision for income taxes (105)
 Net income $2,572
 Net income per common share $.05
 Weighted average shares 43,765
 Six Months Ended June 30 1992
 Revenues:
 Service $ 1,293
 Equity in net income of joint venture 16,683
 Management fees 191
 Equipment, net 41
 Total 18,208
 Expenses:
 Operating 572
 SG&A 9,129
 Total 9,701
 Operating income 8,507
 Depreciation and amortization (2,600)
 Net interest (expense) (6,582)
 Equity in net loss of unconsolidated subsidiary (284)
 Nonrecurring charges (396)
 (Loss) before income taxes (1,355)
 Provision for income taxes (105)
 Net (loss) $ (1,460)
 Net (loss) per common share $(.06)
 Weighted average shares 42,154
 Discussion of CCI Second Quarter Results
 Equity in the net income of the joint venture was $10,001,000 in 1992 and none in 1991 because the joint venture was formed on Aug. 1, 1991.
 The equity in net loss of unconsolidated subsidiary of $284,000 is the net loss of Ashtabula Cellular Corp. (Ashtabula), the owner of the Ohio 3 RSA cellular license, since the company's acquisition of Ashtabula in April 1992.
 The company reversed $111,000 of special charges relative to the merger agreement since estimates in prior periods exceeded the actual charges.
 In January 1992, the company issued $217,000,000 principal amount at maturity, zero coupon convertible subordinated notes due July 27, 1999. The gross proceeds of $125,000,000 ($121,175,000 net of underwriters' discounts and commissions) represent a yield to maturity of 7.5 percent.
 In February 1992, CCI distributed 100 percent of the shares of Cellular Communications of Puerto Rico, Inc. (NASDAQ: CCPR) to its shareholders. Each shareholder received one share of CCPR for every six shares of CCI stock held.
 -0- 8/14/92
 /CONTACT: J. Barclay Knapp, chief operating officer, 614-325-2305, for Cellular Communications/
 (COMMA) CO: Cellular Communications, Inc. ST: New York IN: TLS SU: ERN


TS-TM -- NY004 -- 9871 08/14/92 08:46 EDT
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