SOUTHWESTERN BELL REPORTS THIRD QUARTER EARNINGS
SOUTHWESTERN BELL REPORTS THIRD QUARTER EARNINGS ST. LOUIS, Oct. 22 /PRNewswire/ -- Southwestern Bell Corp.
(NYSE: SBC) today reported record quarterly earnings of $385.6 million or $1.28 per share, up from the previous record of $363.1 million or $1.21 per share in the third quarter a year ago.
Revenues for the quarter ended Sept. 30 rose 8.0 percent to $2,617.7 million, compared with $2,423.8 million in the third quarter a year ago. "This was another solid growth quarter for Southwestern Bell Corporation," said Edward E. Whitacre Jr., chairman and chief executive officer. "Earnings growth was led by a record-setting performance from Southwestern Bell Mobile Systems, our cellular subsidiary, which achieved its first ever 100,000-plus quarterly gain in cellular customers," Whitacre said. "Results also were boosted by improved access line gains at the Telephone Company, continued strong performance from Southwestern Bell Yellow Pages, and an increased contribution to net income from our investment in Telmex," Whitacre said. (Telmex is Mexico's national telecommunications company, and Southwestern Bell owns a 10 percent equity stake in the company.) Third quarter results also included an accrual for the estimated cost of relocating Southwestern Bell Corp.'s corporate headquarters to San Antonio, Texas, reducing earnings by $25 million, or 8 cents per share. Whitacre pointed out that Southwestern Bell Telephone saw good customer growth in the third quarter, adding 129,000 access lines, compared with 98,00 access lines added in the third quarter a year ago. Over the past year, the Telephone Company has added 372,000 access lines, bringing its total to 12.7 million. Increased Telephone Company expenses the past year, Mobile Systems gained 35 000 customers, for a growth rate of over 40 percent, and now serves 1,221,000 cellular customers in 28 United States metropolitan markets and 27 rural service areas. "These achievements reflect the quality of both our cellular markets and our service," Whitacre said. "More people are finding new and creative ways of making cellular service work for them." Telmex's increased contribution to the quarter's earnings reflects that company's progress in expanding service, Whitacre said. In the first six months of this year, Telmex added 325,000 access lines, and an average of seven communities a day are being added to the company's nationwide network. Southwestern Bell Yellow Pages also made a significant contribution, Whitacre added. The third quarter is historically the second largest for the company in terms of revenues, with several of its largest directories published during the period. And, Yellow Pages' year-over-year revenue gains continue to outpace the industry. Southwestern Bell Corp. is an international communications corporation with one million shareowners. It provides a variety of products and services through its subsidiaries including Southwestern Bell Telephone Co., Southwestern Bell Yellow Pages, Southwestern Bell Mobile Systems, Metromedia Paging, Southwestern Bell Telecom, and Southwestern Bell International Holdings. SOUTHWESTERN BELL CORP. Financial Summary and Comparisons (dollars in millions, except earnings per share) (unaudited) Third Quarter Results Percent 1992 1991 Change Operating revenues $2,617.7 $2,423.8 8.0 Operating expenses $1,981.8 $1,792.8 10.5 Net income $ 385.6 $ 363.1 6.2 Earnings per share $ 1.28 $ 1.21 5.8 Weighted average number of common shares outstanding (in millions) 300.1 300.1 --- Return on weighted average shareowners' equity 16.83pct. 16.62pct. 21 basis pts. Nine-Month Results Percent 1992 1991 Change Operating revenues $7,293.4 $6,809.5 7.1 Operating expenses $5,695.5 $5,269.8 8.1 Income before extraordinary loss $ 951.7 $ 840.3 13.3 Extraordinary loss on early extinguishment of debt --- $ 80.7 --- Net income $ 951.7 $ 759.6 25.3(a) Earnings per share Income before extraordinary loss $ 3.17 $ 2.80 13.2 Extraordinary loss on early extinguishment of debt --- $ .27 --- Net income $ 3.17 $ 2.53 25.3(a) Weighted average number of common shares outstanding (in millions) 300.2 300.1 --- Return on weighted average shareowners' equity 14.01pct. 11.64pct. 237 basis pts.(a) Return on weighted average shareowners' equity before extraordinary loss 14.01pct. 12.87pct. 114 basis pts.(a) (a) Southwestern Bell Corp.'s reported net income for 1991 nine- month results included an extraordinary charge of $81 million or 27 cents a share for refinancing $732 million of long-term debt. -0- 10/22/92 /CONTACT: Jerrell Ross of Southwestern Bell Corp., 314-235-7100/ (SBC) CO: Southwestern Bell Corp. ST: Missouri IN: TLS SU: ERN
MC -- DV007 -- 3488 10/22/92 11:09 EDT
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|Date:||Oct 22, 1992|
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