Printer Friendly

COST CUTTING RESULTS IN SNET 1992 EARNINGS UP 8.5 Percent FROM CONTINUING OPERATIONS; REVENUES FLAT

 NEW HAVEN, Conn., Jan. 25 /PRNewswire/ -- Southern New England Telecommunications Corporation (NYSE: SNG) today announced 1992 net income of $151.4 million or $2.44 per share compared with $123.7 million or $2.02 per share for 1991. Earnings per share from continuing operations without extraordinary and other one-time charges were $2.56 for 1992 versus $2.36 for 1991, an 8.5 percent increase.
 Net income for 1992 includes an extraordinary charge of $2.7 million or $0.04 per share to refinance debentures at more favorable rates. In addition, the effect of exiting SNET's credit business in 1992 was $5.1 million or $0.08 per share. In 1991, net income included an extraordinary charge to refinance debentures of $2.2 million or $0.04 per share and a pre-tax charge of $38.0 million or $0.35 per share after taxes for an accrual for employee-separation benefits. In addition 1991 includes income from the discontinued SNET Credit operations of $3.0 million or $0.05 per share.
 "The continuing effects of the deep Connecticut recession are very much with us," said Daniel J. Miglio, SNET Chief Executive Officer. "We have not turned the corner. Our results are primarily the result of cost-cutting, which only goes so far. A sound business needs revenue growth and the modest growth we experienced in 1992 came from our non-telephone businesses and interstate access services. It did not come from our Connecticut-regulated business, which is stagnating at a time when the Department of Public Utility Control is considering increased competition for these services and at a time when our state is in a competitive race with other states to build infrastructures that will support prosperity.
 "That is why our effort with the DPUC to change public policy and get adequate rates for our services is so important. What's at stake here is jobs and the health of the Connecticut economy. Without a sophisticated telecommunications infrastructure there are Connecticut businesses that will leave the state, Connecticut will lose more jobs, and Connecticut residents will continue to see the ripple effect of that throughout the state's economy. We are doing everything we can under these difficult conditions -- from introducing new products to generate additional revenue to continuing to drive costs down. We have been shrinking the size of our work force steadily and right now our bargaining-unit employees are considering a voluntary separation offer that will further reduce the size of our work force," said Miglio.
 Consolidated revenues and sales for 1992 were $1,614.4 million versus $1,608.4 million for 1991. Southern New England Telephone's revenues for 1992 were $1,402.6 million versus $1,393.6 million for 1991. The telephone company's revenues include a $9.5 million decline from the company's directory publishing business as well as a $5.7 million increase in uncollectible accounts, both of which reflect the weak Connecticut economy. Non-telephone subsidiary revenues increased 3.0 percent.
 Costs and expenses for 1992, excluding interest and separation benefits, were down 1.0 percent to $1,247.5 million from $1,259.6 million, due largely to a 5.5 percent decrease in the work force. Interest expense for the year dropped 4.4 percent to $97.5 million because of lower interest rates on short-term debt, savings from refinancing debt, and reduced short-term borrowings.
 Net income for the fourth quarter of 1992 was $40.0 million or $0.64 per share versus $31.4 million or $0.51 per share for the same period last year. Net income for the fourth quarter of 1991 included an extraordinary charge of $0.04 per share to refinance debentures and a pre-tax charge of $1.4 million for an additional accrual for employee-separation benefits. Without these 1991 charges, quarter-to-quarter comparisons for net income from continuing operations were $40.0 million or $0.64 per share for 1992, versus $34.0 million or $0.56 per share for 1991.
 Fourth quarter 1992 revenues and sales were essentially flat at $405.9 million, compared with $403.4 for 1991. Costs and expenses, excluding interest and separation benefits for the quarter were down 2.3 percent to $312.7 million from $320.0 million in the fourth quarter of 1991.
 SNET is an independent telecommunications company that offers through its subsidiaries network and information management services and communications systems; directory publishing and advertising services; and cellular mobile phone and paging services.
 Preliminary Summary of Consolidated Results
 For the three months ended December 31, 1992
 (in Millions Except Per Share Amount)
 4Q 1992 4Q 1991 Percent Chnge
 Revenues & Sales $405.9 $403.4 0.6 percent
 Costs & Expenses
 (excluding interest) $312.7 $320.0 -2.3 percent
 Provision for employee separation
 plans --- $1.4 ---
 Interest Expense $23.2 $26.3 -11.8 percent
 Income from continuing operations before
 income taxes & extraordinary charge $70.0 $55.7 25.7 percent
 Income Taxes $30.0 $22.5 33.3 percent
 Income from continuing operations
 before extraordinary charge (a) $40.0 $33.2 20.5 percent
 Discontinued Operations, net of tax --- $0.4 ---
 Income before extraordinary charge $40.0 $33.6 19.0 percent
 Extraordinary charge, net of tax --- ($2.2) ---
 Consolidated Net Income $40.0 $31.4 27.4 percent
 Earnings per share from continuing
 operations before extraordinary
 charge (a) $0.64 $0.54 18.5 percent
 Earnings per share from discontinued
 operations --- $0.01
 Earnings per share before
 extraordinary charge $0.64 $0.55 16.4 percent
 charge
 Earnings per share -
 extraordinary charge --- ($0.04)
 Consolidated Earnings Per Share $0.64 $0.51 25.5 percent
 Average Common Shares (000) 63,316 62,614 1.1 percent
 Total Access Lines in
 Service (000) 1,937 1,922 0.8 percent


Note (a): Net Income and Earnings Per Share from continuing operations before extraordinary charge excluding the provision for separation plans:
 Net income from continuing operations
 before extraordinary charge excluding the provision
 for separation plans $40.0 $34.0 17.6 percent
 Earnings per share from continuing
 operations before extraordinary charge
 excluding provision for separation
 plans $0.64 $0.56 14.3 percent
 SNET
 Preliminary Summary of Consolidated Results
 For the 12 months ended December 31, 1992
 (in Millions Except Per Share Amount)
 12 Months 12 Months
 12/31/92 12/31/91 Percent Change
 Revenues & Sales $1,614.4 $1,608.4 0.4 percent
 Costs & Expenses
 (excluding interest) $1,247.5 $1,259.6 -1.0 percent
 Provision for employee
 separation plans -- $38.0
 Interest Expense $97.5 $102.0 -4.4 percent
 Income from continuing operations before
 income taxes & extraordinary
 charge $269.4 $208.8 29.0 percent
 Income Taxes $110.2 $85.9 28.3 percent
 Income from continuing operations
 before extraordinary charge (b) $159.2 $122.9 29.5 percent
 Discontinued Operations, net of tax ($5.1) $3.0
 Income before extraordinary charge $154.1 $125.9 22.4 percent
 Extraordinary charge, net of tax ($2.7) ($2.2)
 Consolidated Net Income $151.4 $123.7 22.4 percent
 Earnings per share from continuing
 operations before extraordinary
 charge (b) $2.56 $2.01 27.4 percent
 Earnings per share from discontinued
 operations ($0.08) $0.05
 Earnings per share before
 extraordinary charge $2.48 $2.06 20.4 percent
 Earnings per share -
 extraordinary charge ($0.04) ($0.04)
 Consolidated Earnings Per Share $2.44 $2.02 20.8 percent
 Average Common Shares (000) 63,073 62,392 1.1 percent
 Note (b): Net Income and Earnings Per Share from continuing operations before extraordinary charge excluding the provision for separation plans: Net income from continuing operations before extraordinary charge excluding the
provision for separation plans $159.2 $144.5 10.2 percent
 Earnings per share from continuing
 operations before extraordinary charge
 excluding provision for
 separation plans $2.56 $2.36 8.5 percent
 -0- 1/25/93
 /CONTACT: Beverly Levy of SNET, 203-771-4474 (office), or 203-393-1333 (home)/
 (SNG)


CO: SNET ST: Connecticut IN: FIN SU: ERN

TM -- NE015A -- 8619 01/25/93 14:52 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 25, 1993
Words:1334
Previous Article:ALBA-WALDENSIAN ANNOUNCES ORGANIZATIONAL MOVES
Next Article:SEARS ANNOUNCES RESTRUCTURING & CATALOG BACKGROUNDER
Topics:


Related Articles
SNET SECOND QUARTER EARNINGS UP
SNET ANNOUNCES THIRD QUARTER EARNINGS
PACIFICORP REPORTS SECOND QUARTER EARNINGS
SNET ANNOUNCES FLAT 1993 EARNINGS FROM CONTINUING OPERATIONS WITH WEAK ECONOMY AND INCREASING COMPETITION
SNET ANNOUNCES FIRST QUARTER RESULTS FROM OPERATIONS UP 17 PERCENT ON HIGHER REVENUES AND COST CONTROLS
SNET ANNOUNCES CONTINUED STRONG EARNINGS GROWTH FOR THE SECOND QUARTER
SNET Earnings per Share are $0.67 for the Fourth Quarter and $2.94 for 1996
SNET Second Quarter Earnings Per Share $0.76
SNET Second Quarter Net Income $53.1 Million, Up 6.2%
SBC Delivers 19.3 Percent Earnings Growth in 1998; Grows Fourth-Quarter Earnings 20 Percent.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters