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SPRINT REPORTS RECORD QUARTERLY REVENUES, OPERATING INCOME IN ITS DIVISIONS

 KANSAS CITY, Mo., Oct. 19 /PRNewswire/ -- Sprint (NYSE: FON) today announced record revenues and operating income in its long distance, local telecommunications and cellular communications divisions. Income from continuing operations in the third quarter 1993 was $178 million, or 51 cents per share, excluding non-recurring costs associated with restructuring and realignments in the company's long distance and local telecommunications divisions and the impact of recently enacted tax law changes. The 1993 results increased 42 percent compared to income from continuing operations in the third quarter 1992 of $125 million, or 37 cents per share. Revenues increased 9 percent to $2.87 billion in the third quarter, up from $2.63 billion a year ago.
 "Our third quarter results reflect efforts to improve our competitive position in each of our lines of business," said William T. Esrey, chairman and chief executive officer. "Our long distance operation had record operating income for the fifth consecutive quarter; we believe our local telephone revenue and access line growth will lead the industry; and demand for cellular service continues to exceed expectations."
 "We also are realizing the cost savings and synergies we had anticipated from our merger with Centel. Duplicative systems are being eliminated, combined purchasing efforts have lowered costs and staffing has been reduced."
 Long distance operating income in the third quarter was $126 million, a 34 percent increase from $94 million in the same period a year ago, and up 4 percent from the second quarter 1993. Long distance revenues increased 8 percent to $1.54 billion in the third quarter, from $1.43 billion in the third quarter 1992, and were up 2 percent from $1.51 billion in the second quarter of this year.
 Minutes of use in the third quarter of 1993 increased 6 percent compared with the third quarter 1992, and were up less than 1 percent from the second quarter 1993.
 "We continue to focus on improving our operating performance through business process improvement initiatives, cost containment and building on our successful products such as The Most(tm), extending its benefits to business and international callers," said Esrey. "International revenues were strong in the quarter and we are especially pleased with our 800 sales in the five months since the introduction of 800 portability. We introduced the first national commercial application of ATM service in the quarter and Sprint is recognized as the industry leader in this new technology."
 "The residential market continues to be very competitive, with heavy industry promotion and advertising continuing during the quarter. We introduced new marketing actions aimed at this segment, and the initial response to these efforts is encouraging."
 Sprint's local telephone operations had operating income in the third quarter of $249 million, up 24 percent from $201 million in the year earlier period. Revenues increased 7 percent in the quarter to $1.04 billion, from $965 million a year ago. The number of customer access lines grew 4.6 percent over the past 12 months to nearly 6.1 million.
 "We had exceptional third quarter local telephone performance," said Esrey. "Our access line growth exceeded expectations. The sale of network-based custom calling features, which includes the introduction of new features such as caller identification, has substantially grown over the past year due to greater availability and improved marketing of these products."
 "Integration of our merged operations is proceeding extremely well through consolidation of locations and workforces and greater operating efficiencies."
 Sprint Cellular added more than 54,000 subscribers in the third quarter, bringing the number of subscribers to more than 539,000. Over the past 12 months, more than 197,000 subscribers have been added, a 58 percent increase.
 Cellular operating income in the quarter was $12 million, up from $2 million in the third quarter 1992. Revenues increased 45 percent to $122 million, up from $84 million in the year ago quarter. Monthly revenue per subscriber declined to $74, down $6 from the 1992 third quarter, reflecting the impact of rapid growth of cellular in the consumer market.
 "Demand for cellular service has showed no signs of relenting," said Esrey. "We continue to build our infrastructure to improve service quality and have strengthened our distribution channels. We have built 150 cell sites through the first nine months and plan to construct over 60 more in the fourth quarter. Our cost to acquire new customers was down significantly from a year ago. We also are doing a better job of retaining customers, with churn holding at its lowest level ever."
 Revenues in Sprint's product distribution and directory publishing businesses increased 15 percent to $253 million in the quarter from $220 million in the year ago period. Operating income of $17 million in the quarter was down 3 percent from the 1992 third quarter.
 During the third quarter, Sprint incurred after-tax charges of $56 million, or 16 cents per share, associated with realignments and restructuring in the company's long distance and local telecommunications divisions, the impact of recently enacted tax law changes, and the early retirement of debt. Net income in the quarter, reflecting these charges, was $122 million, or 35 cents per share, compared to $120 million, or 35 cents per share, in the third quarter 1992.
 For the nine months ended September 30, Sprint had earnings per share from continuing operations of $1.44, a 45 percent increase from earnings per share of 99 cents in the first nine months of 1992. These results exclude the charges associated with the merger with Centel, the restructuring and realignments charges and tax law changes in 1993, as well as the gain on the sale of certain telephone properties in 1992. Revenues in the first nine months increased 9 percent to $8.39 billion, up from $7.7 billion in the same period in 1992.
 The net loss for the first nine months of 1993 was $134 million, or 40 cents per share, which includes after-tax charges of $631 million, or $1.84 per share, primarily for charges already described and changes in accounting methods.
 The 1993 results compare to net income of $396 million, or $1.17 per share, in the first nine months of 1992, which included a 13 cents per share gain from the sale of certain telephone properties, a 7 cents per share gain for the adoption of an accounting standard related to income taxes and a 2 cents per share loss associated with the early retirement of debt.
 SPRINT CORPORATION
 Consolidated Statements of Income
 (Unaudited)
 Three Months Ended
 Sept. 30,
 1993 1992
 (In Millions Except
 Per Share Data)
 Net operating revenues $2,867.6 $2,631.2
 Operating expenses
 Costs of services and products 1,441.6 1,357.9
 Selling, general and administrative 684.3 602.6
 Depreciation and amortization 338.5 356.8
 Merger, integration and restructuring costs 44.5 0.0
 Total operating expenses 2,508.9 2,317.3
 Operating income 358.7 313.9
 Gain on divestiture of telephone properties 0.0 0.0
 Interest expense (114.2) (126.7)
 Other income (expense), net (11.4) 6.4
 Income from continuing operations
 before income taxes 233.1 193.6
 Income tax provision (96.4) (68.3)
 Income from continuing operations 136.7 125.3
 Loss from discontinued operations, net 0.0 0.0
 Extraordinary losses on early extinguishments
 of debt, net (14.5) (5.6)
 Cumulative effects of changes in accounting
 principles(A) 0.0 0.0
 Net income 122.2 119.7
 Preferred stock dividends (0.6) (0.9)
 Earnings applicable to common stock $ 121.6 $ 118.8
 Earnings (loss) per common share
 Continuing operations $ 0.39 $ 0.37
 Extraordinary item (0.04) (0.02)
 Total $ 0.35 $ 0.35
 Weighted average number of common shares 344.6 337.6
 SPRINT CORPORATION
 Consolidated Statements of Income
 (Unaudited)
 Nine Months Ended
 Sept. 30,
 1993 1992
 (In Millions Except
 Per Share Data)
 Net operating revenues $8,386.5 $7,700.4
 Operating expenses
 Costs of services and products 4,250.6 3,953.3
 Selling, general and administrative 1,983.8 1,806.4
 Depreciation and amortization 1,013.7 1,043.5
 Merger, integration and restructuring costs 292.5 0.0
 Total operating expenses 7,540.6 6,803.2
 Operating income 845.9 897.2
 Gain on divestiture of telephone properties 0.0 81.1
 Interest expense (345.1) (387.3)
 Other income (expense), net (20.2) 11.1
 Income from continuing operations
 before income taxes 480.6 602.1
 Income tax provision (190.1) (222.9)
 Income from continuing operations 290.5 379.2
 Loss from discontinued operations, net (12.3) 0.0
 Extraordinary losses on early extinguishments
 of debt, net (28.2) (5.6)
 Cumulative effects of changes in accounting
 principles(A) (384.2) 22.7
 Net income (loss) (134.2) 396.3
 Preferred stock dividends (2.1) (2.8)
 Earnings (loss) applicable to common stock $ (136.3) $ 393.5
 Earnings (loss) per common share
 Continuing operations $ 0.84 $ 1.12
 Discontinued operations (0.04) 0.00
 Extraordinary item (0.08) (0.02)
 Cumulative effects of changes in
 accounting principles (1.12) 0.07
 Total $ (0.40) $ 1.17
 Weighted average number of common shares 343.1 336.6
 (A)Effective Jan. 1, 1993, Sprint Corporation (Sprint) changed its methods of accounting for postretirement and postemployment benefits by adopting Statements of Financial Accounting Standards (SFAS) No. 106 and No. 112, respectively, and effected another accounting change. Effective Jan. 1, 1992, Sprint changed its method of accounting for income taxes by adopting SFAS No. 109.
 SPRINT CORPORATION
 Selected Operating Results
 (Unaudited)
 Three Months Ended
 Sept. 30,
 1993 1992
 (In Millions)
 Long-distance Communications Services(A)
 Net operating revenues $1,540.5 $1,432.4
 Operating expenses
 Interconnection 674.4 645.9
 Operations 218.5 198.3
 Selling, general and administrative 394.2 345.3
 Depreciation and amortization 127.8 149.3
 Total operating expenses 1,414.9 1,338.8
 Operating income $ 125.6 $ 93.6
 Local Communications Services(A)
 Net operating revenues $1,036.2 $ 964.9
 Operating expenses
 Plant operations 296.0 291.6
 Depreciation and amortization 184.6 186.7
 Other 306.8 285.7
 Total operating expenses 787.4 764.0
 Operating income $ 248.8 $ 200.9
 Cellular and Wireless Communications Services(A)
 Net operating revenues $ 122.4 $ 84.4
 Operating expenses
 Costs of services and products 40.1 29.6
 Selling, general and administrative 51.4 39.6
 Depreciation and amortization 19.1 13.4
 Total operating expenses 110.6 82.6
 Operating income $ 11.8 $ 1.8
 Product Distribution and Directory Publishing(A)
 Net operating revenues $ 252.9 $ 219.9
 Operating Income $ 17.0 $ 17.6
 SPRINT CORPORATION
 Selected Operating Results
 (Unaudited)
 Nine Months Ended
 Sept. 30,
 1993 1992
 (In Millions)
 Long-distance Communications Services(A)
 Net operating revenues $4,541.7 $4,168.0
 Operating expenses
 Interconnection 2,021.0 1,911.0
 Operations 616.9 551.1
 Selling, general and administrative 1,144.3 1,063.0
 Depreciation and amortization 391.9 437.8
 Total operating expenses 4,174.1 3,962.9
 Operating income $ 367.6 $ 205.1
 Local Communications Services(A)
 Net operating revenues $3,047.5 $2,873.3
 Operating expenses
 Plant operations 901.1 854.2
 Depreciation and amortization 547.7 543.0
 Other 895.9 832.5
 Total operating expenses 2,344.7 2,229.7
 Operating income $ 702.8 $ 643.6
 Cellular and Wireless Communications Services(A)
 Net operating revenues $ 327.1 $ 230.7
 Operating expenses
 Costs of services and products 108.6 83.9
 Selling, general and administrative 142.9 110.0
 Depreciation and amortization 54.5 37.9
 Total operating expenses 306.0 231.8
 Operating income (loss) $ 21.1 $ (1.1)
 Product Distribution and Directory Publishing(A)
 Net operating revenues $ 707.6 $ 640.5
 Operating income $ 46.9 $ 49.6
 (A) Net operating revenues and operating expenses include $84.4 million and $70.4 million eliminated in consolidation for the three months ended Sept. 30, 1993 and 1992, respectively, and $237.4 million and $212.1 million eliminated in consolidation for the nine months ended Sept. 30, 1993 and 1992, respectively.
 Operating expenses for the three and nine months ended September 30, 1993 exclude any allocation to the segments of the merger, integration and restructuring costs of $44.5 million and $292.5 million, respectively. During the three months ended September 30, 1993, Sprint recorded costs of $33.5 million related to the realignment and restructuring of its long distance communications services division, and costs of $11.0 million associated with continuing integration and restructuring efforts within its local communications services division. Previously, Sprint recorded merger and integration costs of $248.0 million in connection with the consummation of its merger with Centel Corporation.
 -0- 10/19/93
 /CONTACT: Bill White, 913-624-2226 or, after hours, 913-681-9099; or Steve Dykes, 202-828-7435 or, after hours, 703-242-1769, both of Sprint/
 (FON)


CO: Sprint ST: Missouri IN: TLS SU: ERN

MH-DS -- DC004 -- 3738 10/19/93 08:19 EDT
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Date:Oct 19, 1993
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