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CENTEL ANNOUNCES QUARTERLY EARNINGS AND REVENUES

 CENTEL ANNOUNCES QUARTERLY EARNINGS AND REVENUES
 CHICAGO, July 16 /PRNewswire/ -- Centel Corp. (NYSE: CNT) announced today


that income from continuing operations in the second quarter was $54.8 million, or 64 cents per share, which includes a gain of $43.5 million or 51 cents per share, from the sale of the company's Ohio telephone operations.
 The 1992 second quarter results compare to income from continuing operations in the 1991 second quarter of $53 million, or 62 cents per share, which included a gain of $45.6 million, or 54 cents per share, from the exchange of Centel's Minnesota telephone properties with Rochester Telephone.
 Second quarter 1992 net income was $54.8 million, or 64 cents per share, compared to net income in the year-ago second quarter of $56.7 million, or 66 cents per share. The year-ago quarter included results from the company's electric operations, which were sold in September 1991.
 Revenues from continuing operations were $293 million in the second quarter, down from $299 million in the same period a year earlier, which included the results from Centel's telephone operations in Iowa, Minnesota and Ohio, all of which have been sold.
 "Our cellular and telephone operations performed well in the second quarter," said John P. Frazee Jr., Centel's chairman and chief executive officer. "We continued to see strong growth, particularly in our cellular operations where we enjoyed our best quarter ever, adding more than 32,000 customer lines."
 In addition to improved financial results from the company's cellular operations, reduced interest expense and lower expenses associated with the company's stock-based management incentive program contributed to the second quarter results, Frazee said.
 For the six months ended June 30, income from continuing operations was $64.2 million, or 74 cents per share, which includes the gain from the sale of the Ohio operations. This compares to income from continuing operations in the 1991 first half of $57.7 million, or 67 cents per share, which included the gain from the sale of the Minnesota operations. Revenues were $587 million in the 1992 period compared to $586.5 million in last year's first half.
 Second quarter revenues from the company's telephone operations, which were affected by the sales of the Iowa, Minnesota and Ohio operations, decreased 7.5 percent to $221.6 million, down from $239.7 million. Operating income was down 11.7 percent to $46.2 million, from $52.3 million. When adjusted for the sales, telephone results show an improvement, with revenues up 5.4 percent and operating income increasing 7 percent.
 Total access lines served, when adjusted for the sales, grew 4.5 percent over the past 12 months, a slightly higher growth rate compared to the 12- month period that ended a year ago.
 However, the number of access lines gained in second quarter of 1992 declined compared to the second quarter a year ago. The 1991 second quarter included an unusual gain of about 4,000 access lines in the Texas telephone operation from the troops returning to Ft. Hood from Operation Desert Storm.
 Long-distance calling volumes increased 8.3 percent over a year ago. Sales of network-based services showed continued strength. Sales of Centrex-based services increased 65 percent compared to the year-ago period, and the sales of custom calling features were up 13.1 percent from a year ago.
 Revenues in the second quarter from the company's cellular communications operations increased nearly 20 percent to $71.1 million, up from $59.3 million in the same quarter a year ago. Operating income in the quarter was $4.3 million, up significantly from $1.6 million a year earlier.
 At the end of the quarter, customer lines in service exceeded 301,000, a 47 percent increase over the past 12 months. More than 32,000 customer lines were added in the quarter, nearly double the number of lines gained in the same period a year ago.
 Revenues per cellular customer were down 9 percent in the second quarter compared to the year-earlier period, but did show a slight increase compared to the first quarter. Cash flow margins continued to improve. Due to more targeted marketing efforts, customer churn, or disconnect rate, decreased in the quarter, while at the same time collection of customer accounts increased. The average cost to acquire new customers also declined.
 Twenty-five new cell sites were constructed in the quarter to help meet the increasing demand for cellular service and 54 of the rural service areas managed by Centel are now operational.
 CENTEL CORP.
 Consolidated Summary of Earnings
 (Unaudited)
 Quarter Ended June 30, 1992 1991
 Revenues and Sales $292,707,000 $298,942,000
 Expenses
 Operating Expenses 195,899,000 196,808,000
 Depreciation and Amortization 49,622,000 52,249,000
 Total Expenses 245,521,000 249,057,000
 Operating Income 47,186,000 49,885,000
 Gain on Divestiture of
 Telephone Properties 81,082,000 65,299,000
 Equity in Earnings (Losses)
 of Investees, net 2,078,000 (432,000)
 Nonoperating Income, net 1,102,000 101,000
 Income from Continuing Operations
 before Interest Expense and
 Income Taxes 131,448,000 114,853,000
 Interest Expense 31,290,000 37,518,000
 Income Tax Provision 45,342,000 24,349,000
 Income from Continuing
 Operations 54,816,000 52,986,000
 Income from Discontinued
 Operations --- 4,846,000
 Income before Extraordinary
 Charge 54,816,000 57,832,000
 Extraordinary Charge, net --- 1,133,000
 Net Income $54,816,000 $56,699,000
 Preferred Stock Dividends 370,000 376,000
 Earnings Available for Common
 Shareowners 54,446,000 56,323,000
 Weighted Average Common Shares
 Outstanding 85,416,000 84,775,000
 Earnings Per Share
 Income from Continuing Operations $.64 $.62
 Income before Extraordinary Charge $.64 $.68
 Earnings Available for
 Common Shareowners $.64 $.66
 Dividends Paid Per Share $.225 $.225
 Construction Expenditures $68,034,000 $69,190,000
 Consolidated Summary of Earnings
 (Unaudited)
 Six Months Ended June 30, 1992 1991
 Revenues and Sales $587,044,000 $586,502,000
 Expenses
 Operating Expenses 395,202,000 390,840,000
 Depreciation and Amortization 99,647,000 103,988,000
 Total Expenses 494,849,000 494,828,000
 Operating Income 92,195,000 91,674,000
 Gain on Divestiture of
 Telephone Properties 81,082,000 65,299,000
 Equity in Earnings (Losses)
 of Investees, net 3,320,000 1,820,000
 Nonoperating Income, net 1,714,000 1,046,000
 Income from Continuing Operations
 before Interest Expense and
 Income Taxes 178,311,000 159,839,000
 Interest Expense 62,765,000 75,168,000
 Income Tax Provision 51,323,000 26,929,000
 Income from Continuing
 Operations 64,223,000 57,742,000
 Income from Discontinued
 Operations --- 8,032,000
 Income before Extraordinary
 Charge 64,223,000 65,774,000
 Extraordinary Charge, net --- 1,133,000
 Net Income $64,223,000 $64,641,000
 Preferred Stock Dividends 742,000 772,000
 Earnings Available for
 Common Shareowners $63,481,000 $63,869,000
 Weighted Average Common
 Shares Outstanding 85,315,000 84,642,000
 Common Shares Outstanding
 at End of Quarter 85,461,000 84,855,000
 Earnings Per Share
 Income from Continuing Operations $.74 $.67
 Income before Extraordinary Charge $.74 $.77
 Earnings Available for
 Common Shareowners $.74 $.75
 Dividends Paid Per Share $.45 $.44
 Construction Expenditures $118,172,000 $124,372,000
 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 June 1991, the company completed the divestiture of its local telephone operations in Minnesota with Rochester Telephone Corp. (Rochester) for $36 million in cash and a note receivable, 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 divestiture.
 2. Revenues from discontinued operations were $115.8 million for the six months ended June 30, 1991 and $49.9 million for the quarter ended June 30, 1991. Income from discontinued operations is net of applicable income tax expense of $4.3 million for the six months ended June 30, 1991 and $2.6 million for the quarter ended June 30, 1991.
 3. In May 1992, following announcement of the agreement to merge with Sprint Corp., class action suits were filed 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 for alleged breach of fiduciary duty. In the opinion of counsel for the company these suits are without merit and an unfavorable outcome is remote.
 -0- 7/16/92
 /CONTACT: William K. White of Centel, 312-399-2735/
 (CNT) CO: Centel Corp. ST: Illinois IN: TLS SU: ERN


TM -- NY110 -- 0004 07/16/92 17:15 EDT
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