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SOUTHWESTERN BELL CORP. REPORTS INCREASED FIRST QUARTER EARNINGS BEFORE EXTRAORDINARY ITEMS, ACCOUNTING CHANGES

 SAN ANTONIO, April 20 /PRNewswire/ -- Southwestern Bell Corp. (NYSE: SBC) today reported increased revenues and earnings for the first quarter 1993 before extraordinary charges for debt refinancing and the cumulative effect of adopting new accounting standards.
 Excluding these extraordinary charges, financial and operational results for the quarter ended March 31 included the following highlights:
 -- Earnings were up 15.6 percent to $302.5 million, or $1.01 per share, from $261.6 million, or $.87 per share, in the first quarter a year ago;
 -- Revenues advanced 7.5 percent to $2,457.8 million, from $2,287.1 million for the first quarter of 1992;
 -- Southwestern Bell Telephone Co. added 158,000 access lines, compared with 132,000 added in the first quarter a year ago; and
 -- Southwestern Bell Mobile Systems achieved its highest-ever first quarter customer growth, adding 100,000 cellular customers, up from 63,000 added in the first quarter 1992.
 In the first quarter this year, Southwestern Bell Corp. adopted three new accounting methods required by the Financial Accounting Standards Board. They are changes in accounting for retiree medical care benefits (FAS 106), for other post-employment benefits (FAS 112) and for income taxes (FAS 109). The transition to these new rules resulted in a one-time, non-cash charge which reduced reported first quarter earnings by $2.1 billion.
 First quarter 1993 earnings also were affected by extraordinary charges totaling $89 million, or 30 cents per share, associated with the refinancing of long-term debt at Southwestern Bell Telephone Co.
 When these extraordinary charges and accounting changes are included, the corporation reported a net loss in the first quarter of $1,914.1 million.
 "Looking beyond these special items, this was another very positive quarter for Southwestern Bell Corp., with all our major operating units making solid progress," said Edward E. Whitacre Jr., chairman and chief executive officer.
 "Over the past 12 months, our cellular subsidiary added 490,000 customers for a growth rate of 48 percent, among the best in the industry," Whitacre said. "And, our international operations -- particularly our interest in Telmex -- made increased contributions to earnings growth."
 The Telephone Company's first quarter access line gains brought its total to 13.0 million, and over the past year its total number of access lines has increased by 431,000.
 Southwestern Bell Mobile Systems' addition of 100,000 customers in the first quarter brought its total to 1,513,000 customers in 28 U.S. metropolitan markets and 26 rural service areas. At the end of the first quarter, its cellular market penetration rate was 4.24 percent, well above the industry average.
 During the quarter, Southwestern Bell Mobile Systems and Panasonic Communications announced what will be the first commercially available personal communications service provided in the United States. Called FreedomLink(TM) Personal Communications System, the pocket phone operates inside a building as a wireless extension to any existing office phone system and outside the building as a regular cellular hand-held phone using the external cellular system. FreedomLink will be offered in Boston in April and in all of Mobil Systems' markets by the end of June.
 Also in the first quarter, Southwestern Bell Corp. significantly expanded its cable television holdings. In February, the corporation became the first Bell holding company to announce purchase of a U.S. cable operation -- with agreement to acquire two systems serving the suburbs of Washington, D.C., from Hauser Communications Inc. Located in Montgomery County, Md., and Arlington County, Va., the two franchises cover a growing population area of more than 1 million.
 In March, Southwestern Bell Corp. and Cox Cable Communications signed a memorandum of understanding calling for the two companies to create a partnership in both the cable television and telephony businesses in the United Kingdom. The memorandum calls for Cox to hold an initial 25 percent interest in the U.K. franchised cable television/telephony operations currently owned and operated by Southwestern Bell. These franchises cover 1.2 million homes. Cox Cable will be part of the overall management team and will contribute in the areas of technology development, programming and marketing.
 Southwestern Bell Corp., based in San Antonio is an international communications corporation with approximately 1 million shareowners. It provides a variety of products and services through its principal subsidiaries including Southwestern Bell Telephone Co., Southwestern Bell Yellow Pages, Southwestern Bell Mobile Systems, Southwestern Bell Telecom and Southwestern Bell International Holdings.
 SOUTHWESTERN BELL CORP.
 Financial Summary and Comparisons
 (Dollars in millions, except earnings per share)
 (Unaudited)
 First Quarter Results
 1993 1992 Change
 Operating revenues $2,457.8 $2,287.1 7.5 pct.
 Operating expenses $1,937.1 $1,843.6 5.1 pct.
 Income before
 extraordinary loss and
 cumulative effect of
 accounting changes $302.5 $261.6 15.6 pct.
 Extraordinary loss on
 early extinguishment
 of debt ($89.4) $--- ---
 Cumulative effect of
 accounting changes ($2,127.2) $--- ---
 Net income (loss) ($1,914.1) $261.6 (831.7) pct.
 Earnings per share:
 Income before extra-
 ordinary loss and
 cumulative effect
 of accounting changes $1.01 $.87 16.1 pct.
 Extraordinary loss on
 early extinguishment
 of debt ($.30) $--- ---
 Cumulative effect of
 accounting changes ($7.09) $--- ---
 Net income (loss) ($6.38) $.87 (833.3) pct.
 Weighted average
 number of common shares
 outstanding (in millions) 300.0 300.2
 Return on weighted average
 shareowners' equity before
 extraordinary loss and
 accounting changes 15.89 pct 11.66 pct 423 basis
 points
 NOTE: Return on weighted average shareowners' equity was calculated using income before extraordinary loss and cumulative effect of change in accounting principles. The impact of these changes is included in shareowner's equity. Had these accounting changes been excluded from shareowners' equity, return on equity and return on capital would have been 12.87 percent and 10.10 percent respectively.
 -0- 4/20/93
 /CONTACT: Jerrell Ross of Southwestern Bell, 210-351-2115/
 (SBC)


CO: Southwestern Bell Corp. ST: Texas IN: TLS SU: ERN

JB-EH -- DV010 -- 8147 04/20/93 13:55 EDT
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Date:Apr 20, 1993
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