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ROCHESTER TEL REPORTS 17 PERCENT INCREASE IN FIRST QUARTER EARNINGS

 ROCHESTER TEL REPORTS 17 PERCENT INCREASE
 IN FIRST QUARTER EARNINGS
 ROCHESTER, N.Y., April 21 /PRNewswire/ -- Rochester Telephone Corporation (NYSE: RTC) today reported consolidated net income of $15.2 million for the first quarter of 1992, a 17.1 percent increase over net income of $13.0 million in the first quarter of 1991.
 Earnings per average common share for the period were $.47, an increase of 6.8 percent over earnings per share of $.44 in the first quarter of 1991. There were 31.8 million average shares outstanding at March 31, 1992, compared with 28.9 million average shares outstanding at the end of the first quarter of 1991.
 Total revenues and sales increased 19.6 percent for the quarter, reaching $191.7 million. Operating income for the quarter was $40.1 million, a 25.6 percent increase over last year's first quarter. The operating margin also improved, from 19.9 percent in the first quarter of 1991 to 20.9 percent in the first quarter of 1992. The increase was driven by Telecommunications Services, whose margin improved from 6.2 percent in the first quarter of 1991 to 7.6 percent in the current quarter.
 The company's financial results for the first quarter of 1992 were favorably impacted by the operating results of four telephone companies and one long-distance entity that were acquired in 1991 and accounted for as purchase transactions. They are Minot Telephone, North Dakota (Jan. 31, 1991); DePue Telephone, Illinois (March 27, 1991); and the Vista Telephone companies of Minnesota and Iowa (June 28 and Aug. 7, 1991); and Taconic Long Distance Service Corp. (July 25, 1991). A second long-distance entity, Long Distance North, was acquired on Jan. 7, 1991.
 The company's first quarter results also include $2.9 million of interest expense associated with debt incurred to acquire the Vista Telephone companies. Also impacting the most recent results was additional goodwill expense associated with the 1991 acquisitions.
 "These are very solid results," said Ron Bittner, president and chief executive officer. "We were able to report a significant improvement in net income. While our newest companies have clearly added value to the firm, all of our operating units performed well during the quarter."
 Revenues at the Telephone Group reached $135.9 million for the quarter, a 26.6 percent increase over the first quarter of 1991. Almost 78 percent of the increase was due to the contributions of the four telephone subsidiaries purchased since Jan. 31, 1991.
 A 66 percent increase in revenues at the subsidiaries was driven largely by the most recent acquisitions. Excluding the impact of the Vista companies, Minot and DePue, revenues grew 8.4 percent at Rochester Tel's rural telephone companies, a reflection of a healthy market for new services made possible by advanced technology and increases in toll revenues.
 The Rochester operating company reported an increase of 4.8 percent in revenues over the first quarter of 1991, a result of higher rates associated with incentive regulation as well as additional revenues from local metered service, custom calling features and touchtone service in the company's major metropolitan market.
 Operating income for the Telephone Group increased 25.0 percent, reaching $35.9 million for the quarter. Of the increase, approximately 70 percent was attributable to the newest acquisitions.
 Revenues and sales in Telecommunications Services improved 5.6 percent for the quarter, reaching $55.8 million. Operating income in the first quarter of 1992 was $4.3 million, a 30.7 percent increase over the prior year's quarter.
 Revenues of $51.3 million for Network Services and Systems were virtually flat for the quarter. Offsetting lower revenue from business systems was a strong performance in long distance services, where revenues improved 8.5 percent for the quarter. Excluding Taconic Long Distance, revenues in long distance services grew a steady 6.4 percent over the first quarter of 1991, a reflection of higher message revenue and growth in operator services. During the quarter, RCI introduced several long distance packages designed to enhance its competitiveness.
 Rotelcom, the company's business systems subsidiary, recorded several large PBX orders in the first quarter of 1991 that were not matched in the current quarter. However, operating income for business systems improved nearly 40 percent for the quarter, reflecting Rotelcom's continuing emphasis on advanced call center applications and other high-margin services.
 Revenues for wireless communications, comprised of cellular and paging services, improved 31.8 percent in the first quarter of 1992 compared with the prior year's quarter. The increase reflects continuing growth in the customer base, price increases and higher revenue from fixed monthly fees. Operating income in wireless communications declined 9.8 percent, a reflection of higher operating expenses and selling commissions (carried over from the fourth quarter of 1991) associated with growth in the customer base and the installation of new cell sites during the first quarter of this year.
 Rochester Tel operates 37 telephone properties in 15 states in the mid-Atlantic, Midwest and South. Its largest property, Rochester Telephone, is located in Rochester, N.Y., the company's headquarters city. The company also operates telecommunications services subsidiaries engaged in network services and systems (long distance and business systems) and wireless communications. Network services and systems subsidiaries operate in New York state, the Northeast and the mid-Atlantic region; wireless properties are located in New York, Kansas, Alabama, Illinois, Iowa and Georgia.
 ROCHESTER TELEPHONE CORPORATION
 Consolidated Statement of Income
 (Unaudited)
 3 Months Ended March 31
 In thosuands, except per share data 1992 1991
 Revenue and Sales
 Telephone Group $135,927 $107,378
 Telecommunications Services 55,802 52,865
 Total Revenues and Sales 191,729 160,243
 Costs and Expenses
 Operating expenses 108,355 90,000
 Cost of goods sold 4,688 6,150
 Depreciation 27,251 22,080
 Taxes other than income taxes 11,286 10,054
 Total Costs and Expenses 151,580 128,284
 Operating Income 40,149 31,959
 Interest expense 12,756 9,348
 Other income and expense:
 Allowance for funds used during
 construction 366 422
 Other income (expense), net (3,023) (2,487)
 Income Before Taxes 24,736 20,546
 Income Taxes 9,568 7,594
 Consolidated Net Income 15,168 12,952
 Dividends on preferred stock 297 297
 Income Applicable to Common Stock $14,871 $12,655
 Dividends on common stock $12,258 $10,859
 Average common shares outstanding(A) 31,840 28,893
 Earnings Per Common Share
 Primary $.47 $.44
 Fully Diluted $.47 $.44
 (A) As a result of conversions of 4 3/4 percent Convertible Debentures, 86 shares of common stock were issued during the three month period ended March 31, 1992.
 ROCHESTER TELEPHONE CORPORATION
 Business Segment Information
 (Unaudited)
 3 Months Ended March 31
 In thousands of dollars 1992 1991
 Telephone Group
 Revenues
 Local service $51,263 $40,457
 Network access service 47,421 34,689
 Long distance network service 5,717 8,013
 Miscellaneous 32,069 24,971
 Less: Uncollectibles 543 752
 Total Revenues $135,927 $107,378
 Operating Income $35,898 $28,707
 Depreciation $23,925 $19,168
 Construction Expenditures $28,000 $20,088
 Identifiable Assets (A) $1,373,196 $1,148,853
 Telecommunications Services
 Sales
 Network Services & Systems:
 Non-Affiliate $51,278 $49,226
 Affiliate 41 2,135
 Wireless Communications 4,575 3,472
 Eliminations (92) (1,968)
 Total Sales $55,802 $52,865
 Operating Income
 Network Services & Systems $3,719 $2,677
 Wireless Communications 513 569
 Eliminations 19 6
 Total Operating Income $4,251 $3,252
 Depreciation $3,326 $2,912
 Construction Expenditures $3,578 $1,347
 Identifiable Assets (A) $199,514 $181,444
 (A) -- Includes assets eliminated in consolidation of $99,219 in 1992 and $85,319 in 1991.
 -0- 4/21/92
 /CONTACT: Frederick R. Pestorius, vice president-finance and treasurer, 716-777-7330; or Kenneth P. Schirmuhly, 716-777-6028; both of Rochester Telephone Corporation/
 (RTC) CO: Rochester Telephone Corporation ST: New York IN: TLS SU: ERN


KK -- CL002 -- 0382 04/21/92 08:43 EDT
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