PACIFIC TELECOM REPORTS EARNINGS
PACIFIC TELECOM REPORTS EARNINGS VANCOUVER, Wash., July 24 /PRNewswire/ -- Pacific Telecom Inc.
(PTI) (NASDAQ: PTCM) reported net income of $11.9 million, or 30 cents per share, for the second quarter of 1992 as compared to $18 million, or 46 cents per share, reported for the second quarter last year. The decrease in net income resulted primarily from fewer sales of capacity on the North Pacific Cable, lower long lines out-of-period revenue adjustments and lower intrastate revenues resulting from the introduction of intrastate competition in Alaska in May 1991 as well as the effects of an intrastate rate decrease implemented in July 1991. Additionally, 1991 results included $2.4 million of interest capitalized during construction on the North Pacific Cable and PTI's replacement satellite. These decreases were partially offset by access line growth in the company's local exchange business, higher private line revenues and lower leased circuit expenses.
Net income for the six months ended June 30, 1992, was $33 million, or 83 cents per share, as compared to $36.2 million, or 92 cents per share, for the same period in 1991. The decrease in year-to-date net income resulted principally from the factors mentioned above. Additionally, PTI recognized $4.2 million of after-tax valuation adjustments related to its investment in noncore businesses and earth station facilities in the lower 48 states. These decreases were partially offset by a $13.5 million after-tax gain on the sale of PTI's investment in Catalina Marketing Corp. (NYSE: POS) common stock. The gross profit from cable capacity sales for the second quarter was $0.4 million in 1992 as compared to $5.6 million in 1991 and on a year-to-date basis was $1.2 million in 1992 compared to $12.6 million last year. The 1991 cable capacity sales were the results of a marketing effort which culminated with the activation of the North Pacific Cable in May 1991. Approximately half of the cable capacity has been sold and aggressive efforts to sell the remaining capacity are currently underway. Although competition exists in this market place, PTI expects that international communication requirements will continue to increase resulting in incremental sales of cable capacity. By action of the board of directors on July 24, a dividend of 33 cents per common share was declared. The dividend will be payable Aug. 31 to shareholders of record as of Aug. 14. PACIFIC TELECOM INC. CONSOLIDATED INCOME STATEMENTS (Unaudited, in thousands, except per share amounts) Three months Six months Period ended June 30: 1992 1991 1992 1991 Operating revenues $169,699 $180,339 $335,924 $362,359 Operating expenses 136,109 139,032 270,470 279,680 Operating income 33,590 41,307 65,454 82,679 Other income (Expense): Interest expense (13,570) (13,482) (27,025) (26,925) Interest during construction -- 2,351 -- 5,146 Interest income 231 660 556 1,609 Gain on sale of investment -- -- 21,442 -- Minority interest (16) (843) 38 (1,846) Other (2,365) (3,542) (11,167) (6,956) Total other income (expense) (15,720) (14,856) (16,156) (28,972) Income before income taxes 17,870 26,451 49,298 53,707 Income taxes 6,017 8,420 16,341 17,496 Net income $ 11,853 $ 18,031 $ 32,957 $ 36,211 Net income per common share $ 0.30 $ 0.46 $ 0.83 $ 0.92 Average shares outstanding 39,525 39,487 39,506 39,468 -0- 7/24/92 /CONTACT: Brian M. Wirkkala of Pacific Telecom, 206-696-0983/ (PTCM) CO: Pacific Telecom Inc. ST: Washington IN: TLS SU: ERN
LM -- SE004 -- 3102 07/24/92 14:54 EDT
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|Date:||Jul 24, 1992|
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