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COMPANIA DE TELEFONOS DE CHILE ANNOUNCES RESULTS IN CHILEAN GAAP AND FOR THE NINE MONTHS ENDED SEPT. 30, 1993 AND THIRD QUARTER INTERIM DIVIDEND

 SANTIAGO, Chile, Nov. 2 /PRNewswire/ -- Compania de Telefonos de Chile S.A. (NYSE: CTC), today announced its financial results stated in Chilean GAAP and US GAAP (both in constant pesos of September 30, 1993) for the third quarter and nine months ended September 30, 1993.
 Considering that practically all financial analysts covering CTC follow the Company's Chilean GAAP financial statements, the discussion in this press release is based on those financial statements and provide a summary of the US GAAP results.
 Chilean GAAP results
 Nine months
 The Company reported a 24.5 percent increase in operating revenues, to Ch$260,268 million (US$633.5 million) as compared to the nine months period ended September 30, 1992: Operating costs and expenses grew 18.7 percent and operating income grew 36.7 percent. However, after an additional depreciation charge amounting to Ch$8,409 million (US$20.5 million) in respect of the withdrawal of CTC's remaining non-digital exchanges, operating costs and expenses grew 24.7 percent and operating income 24.3 percent.
 Revenues from tariff-regulated services (local service, domestic long distance and international long distance services and line sales and connections) -- which accounted for 78.5 percent of total revenues -- grew 25.3 percent. Services not subject to tariff regulation (public phones, cellular telephones, directory advertising, local equipment rentals and sales of telecommunications equipment) increased 24.5 percent.
 Other income increase 25.0 percent to (Ch$8,751) million ((US$21.3) million). This is mainly explained by Ch$1,072 million (US$2.6 million) of monetary correction gains, due to the rate of devaluation of the Chilean peso against the US dollar having been lower than the inflation rate (2.2 percent versus 6.6 percent) during the April to September period.
 Net income before additional depreciation (of CTC's non-digital exchanges, as mentioned above) increased 45.2 percent. After such additional depreciation the Company reported net income of Ch$67,883 million (US$165.2 million), a 29.2 percent increase over the corresponding nine month period of 1992. Earnings per share were Ch$79.0 (US$0.19) or Ch$1,343 (US$3.27) per ADS, representing also a 29.2 percent increase over the 1992 period.
 As a result of achieving the highest number of new telephone line connections in the Company's history for any previous nine month period (163,566 lines in the first nine months of 1993), at September 30 the Company had 1,333,787 lines in service from the 1,121,438 lines at the end of the comparable nine month period of 1992. In addition, property, plant and equipment (net) increased to Ch$817,733 million (US$1,990.4 million) at September 30, 1993 a 17.0 percent increase from September 30, 1992.
 Quarter results
 Due principally to the increased number of lines in service, operating income for the third quarter of 1993, before additional depreciation charged in connection with the replacement of the non- digital exchanges, increased 44.4 percent and after such additional charge, operating income increased 35.4 percent.
 Other income increased 95.1 percent, due to higher interest income and monetary correction, which more than offset higher interest expenses during the third quarter of 1993.
 As a result of all the above, third quarter 1993 net income increased 91.3 percent.
 A complete report of the Ch GAAP results and financial statements of CTC at September 30, 1993 has been filed in the Chilean Securities Superintendency. A copy thereof is available from Dewe Rogerson Inc., New York (telephone 212-688-6840).
 Third Quarter Dividend
 CTC also announced today that in accordance with the Company's dividend policy, a quarterly interim dividend (No. 123) will be paid in respect of the third quarter 1993 net income to all shareholders of record on November 12, 1993.
 The dividend represents an increase of 5 percent in constant Chilean pesos over the corresponding dividend of 1992 and represents 39.9 percent of the third quarter's realized net income and will be paid to American Depositary Receipt (ADR) holders by The Bank of New York on December 3, 1993, as follows:
 Amount Per ADR
 (Chilean pesos)
 Dividend No. 123
 Gross Dividend Rate 175.35
 Withholding Tax (23.5294118 pct.) 41.26
 Net Dividend Payable 134.09
 Estimated U.S. translation(A) 32.56
 (A) In U.S. cents, calculated using the observed rate on October 28, 1993 of US$1 equals CH$411.86 for illustration purposes only.
 US GAAP Results
 As mentioned in our press release of September 20, 1993, pursuant to the publication in September 1993 of the Tax Reform Act, which maintains corporate income tax at 15 percent (reversing a previously approved reduction to 10 percent that would have been effective as from January 1, 1994) CTC's deferred tax provision increased Ch$12,365 million (US$30.1 million) to Ch$17,592 million (US$42.8 million), reflected in terms of SFAS No. 109. However, the treatment of deferred tax under Chilean GAAP will not impact earnings or dividends.
 Net income, adjusted to eliminate the one time non-cash effects of the additional depreciation provision (US$20.5 million), as mentioned before, and the new tax rate for deferred income taxes (US$30.1 million), increased 31.9 percent as compared to the nine month period ended September 30, 1992 from Ch$55,737 million (US$135.7 million) to Ch$73,552 million (US$179.0 million).
 A complete third quarter 6K report stated in US GAAP has been filed with the SEC, and is also available at Dewe Rogerson's offices, New York, (telephone 212-688-6840).
 Compania de Telefonos de Chile, the first South American company to list shares on the New York Stock Exchange, is the largest telecommunications enterprise in Chile providing local, long distance and international telephone services in 77 percent of the country's territory where 92 percent of Chile's population resides. Additionally, the Company operates a cellular network in two principal metropolitan areas of Chile, Santiago, Valparaiso provides and a variety of other telecommunications services.
 COMPANIA DE TELEFONOS DE CHILE S.A.
 UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF INCOME
 (Prepared in accordance with Ch. GAAP)
 FOR NINE MONTHS ENDED SEPTEMBER 30,
 1992 1993 1993
 Ch$ Ch$ US$(B)
 Operating Revenues:
 Tariff-Regulated Services 163,136 204,380 497.5
 Other 45,836 55,888 136.0
 Total operating revenues 208,972 260,268 633.5
 Operating Costs and Expenses
 Operating salaries and related costs 24,489 27,700 67.4
 Depreciation 28,533 42,068 102.4
 Cost of long distance service 35,311 39,673 96.5
 Other operating costs 33,628 38,749 90.3
 Administrative and selling costs 19,189 27,769 67.6
 Total operating costs and expenses 141,150 175,959 428.3
 Operating income 67,822 84,309 205.2
 Other income (expenses)
 Interest income 5,904 9,384 22.8
 Other non-operating income 2,651 2,633 6.4
 Interest expense (15,995) (17,117) (41.7)
 Other non-operating expenses (2,764) (4,723) (11.5)
 Monetary correction (1,464) 1,072 2.6
 Total other income (expenses)-net (11,668) (8,751) (21.3)
 Income before income tax 56,154 75,558 183.9
 Income tax (3,598) (7,675) (18.7)
 Net income 52,556 67,883 165.2
 Earnings per common share 61.2 79.0 0.19
 Fully diluted earning per common share 61.2 75.5 0.18
 Weighted average number of shares
 fully paid 858,835,458 858,835,563 858,835,563
 Fully diluted weighted average
 number of shares 858,835,458 899,066,436 899,066,436
 FOR THREE MONTHS ENDED SEPTEMBER 30,
 1992 1993 1993
 Ch$ Ch$ US$(B)
 Operating Revenues:
 Tariff-Regulated Services 56,084 71,155 173.2
 Other 16,299 22,356 54.4
 Total operating revenues 72,383 93,511 227.6
 Operating Costs and Expenses
 Operating salaries and related costs 9,098 8,606 20.9
 Depreciation 10,521 13,335 32.5
 Cost of long distance service 10,022 15,183 37.0
 Other operating costs 13,322 15,167 36.9
 Administrative and selling costs 6,747 10,514 25.6
 Total operating costs and expenses 49,710 62,805 152.9
 Operating income 22,673 30,706 74.7
 Other income (expenses)
 Interest income 1,802 3,573 8.7
 Other non-operating income 6 920 2.2
 Interest expense (3,342) (6,384) (15.5)
 Other non-operating expenses (1,277) (939) (1.8)
 Monetary correction (4,809) 2,456 6.0
 Total other income (expenses)-net (7,620) (374) (0.9)
 Income before income tax 15,053 30,332 73.8
 Income tax (923) (3,299) (8.0)
 Net income 14,130 27,033 65.8
 Earnings per common share 16.5 31.5 0.08
 Fully diluted earning per common share 16.5 30.1 0.07
 Weighted average number of shares
 fully paid 858,835,458 858,835,563 858,835,563
 Fully diluted weighted average
 number of shares 858,835,458 899,066,436 899,066,436
 PHYSICAL STATISTICS
 September 30 September 30 Change
 1992 1993 Q (Pct.)
 Total lines in service at
 the end of period 1,121,438 1,333,787 212,349 18.9
 Average number of lines in
 service 1,047,768 1,270,878 223,110 21.3
 Average number of measured
 local system (MLS) lines in
 service 904,389 1,133,477 229,088 25.3
 Average number of flat fee
 lines in service 143,379 137,401 (5,978) (4.2)
 Number of lines connected 1,327,331 1,555,042 227,711 17.2
 Local calls (millions of
 charge units) 331,173 398,894 67,721 20.4
 Domestic long distance cells
 (thousand) 157,019 184,298 27,279 17.4
 International long distance
 minutes (thousand) 105,468 120,407 14,939 14.2
 Number of lines sold 142,279 203,643 61,364 43.1
 Number of lines connected 138,166 163,566 25,400 18.4
 Pending applications 275,808 298,351 22,543 8.2
 Lines per 100 inhabitants 8.9 10.7 1.8 20.2
 Percent Digitalization 75.1 93.5 20.2 21.2
 Percent Automation 99.8 99.9
 Number of CTC's employees 8,005 7,993 (12) (0.1)
 Number of CTC's subsidiaries
 employees 427 779 352 82.4
 (B) 1 US$ equals CH$410.83.
 -0- 11/2/93
 /CONTACT: Alejandro Rivera, head of investor relations of Compania de Telefonos de Chile, 011-562-696-1147; or Felicia Vonella of Dewe Rogerson, Inc. 212-688-6840/
 (CTC)


CO: Compania de Telefonos de Chile S.A. ST: IN: TLS SU: ERN DIV

PS-RW -- NY035 -- 9664 11/02/93 12:46 EST
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