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UNITED TELECOM REPORTS 1991 FOURTH QUARTER AND ANNUAL EARNINGS

 UNITED TELECOM REPORTS 1991 FOURTH QUARTER AND ANNUAL EARNINGS
 KANSAS CITY, Mo., Feb. 5 /PRNewswire/ -- United Telecommunications Inc. (NYSE: UT) today reported 1991 fourth quarter net income of $98 million, or 45 cents per share, compared to $71 million or 33 cents per share in the fourth quarter of 1990.
 Net income for the year totaled $368 million, or $1.68 per share, compared to $309 million, or $1.43 per share in 1990. The company's 1990 earnings were reduced by non-recurring charges of 18 cents per share in the second quarter. Total revenues for the year were $8.78 billion, up 5 percent from $8.35 billion in 1990.
 United Telecom's long distance division, Sprint, reported fourth quarter operating income of $80 million, up from $51 million in the same quarter of 1990. Revenues for the quarter totaled $1.34 billion, compared to $1.33 billion in the same quarter a year ago.
 For the year, long distance operating income was $295 million, compared to $148 million (after non-recurring charges of $72 million) in 1990. Revenue growth continued to exceed the market rate of growth. The 1991 revenues totaled $5.39 billion, an increase of 6 percent over 1990. Minutes of use increased over 10 percent from 1990.
 "We are pleased to report improvement in our 1991 total earnings. Long distance revenue growth outpaced the market, increasing 6 percent; we contained costs; and we improved operating margin," said William T. Esrey, chairman and chief executive officer of United Telecom. "However, the long distance market and Sprint continue to be negatively affected by the weakness of the economy and intense competitive pressure.
 Increasing sales and marketing expenditures, along with the anticipated decline from strong fourth quarter data systems sales, will reduce Sprint's first quarter 1992 operating results," said Esrey.
 "In 1991 Sprint introduced important new products for the national and international markets. Sprint Priority provides high volume residential users important customer services and discounts that escalate from 20 to 30 percent with increased usage. Sprint Clarity is an integrated business solution which insures that smaller businesses can receive the same features and benefits previously available only to larger businesses," noted Esrey.
 "And in late 1991, Sprint became the first major carrier to offer to the market a frame relay packet-switching service, an important data communications business product for the future."
 United Telecom's local operations reported fourth quarter operating income of $164 million, up from $138 million in the same quarter a year ago. Revenues totaled $719 million, compared to $685 million in the fourth quarter of 1990.
 For the year, operating income from the local telephone companies was $656 million, compared to $650 million for the previous year. Revenues totaled $2.81 billion, a 4 percent increase from $2.71 billion in 1990.
 "The local telecommunications division reported another solid year, with access lines growing 3.4 percent, stronger than industry averages," said Esrey. "In 1991 the local division introduced new products, ranging from preprogrammed network feature telephones and small PBX equipment, to the Link Family of data communications services and ExpressTouch services, including intelligent network features, such as calling number delivery."
 United Telecom's complementary businesses had operating income for the year of $62 million, up 11 percent from $56 million in 1990. Revenues totaled $826 million for the year, up 2 percent over 1990 revenues of $807 million.
 On Jan. 31, 1992, United Telecom completed the purchase from GTE Corp. of the remaining 19.9 percent interest in the Sprint partnership. United Telecom plans to change its name in the near future to Sprint, a name which is widely known and respected in today's competitive marketplace.
 United Telecommunications, Inc., headquartered in Kansas City, is a diversified international telecommunications company. Its principal business units are Sprint, which provides a comprehensive array of global voice, data and video communications products and services, and has the only nationwide all-digital, fiber-optic network; North Supply; DirectoriesAmerica; and local telephone companies serving 3,000 communities in 17 states.
 UNITED TELECOMMUNICATIONS, INC.
 (Unaudited)
 Twelve Months Ended
 Dec. 31,
 1991 1990
 (In Millions Except
 Per Share Data)
 Net operating revenues
 Long-distance communications services $5,387.6 $5,064.7
 Local communications services 2,811.7 2,709.9
 Complementary businesses 826.0 807.4
 Intercompany revenues (245.6) (236.9)
 Total net operating revenues 8,779.7 8,345.1
 Operating expenses
 Long-distance communications services 5,092.8 4,916.7
 Local communications services 2,156.2 2,059.7
 Complementary businesses 764.0 751.3
 Intercompany expenses (245.6) (236.9)
 Total operating expenses 7,767.4 7,490.8
 Operating income 1,012.3 854.3
 Other income, net (1.5) (13.1)
 Interest charges, net of capitalization 406.6 397.5
 Minority interest 48.3 8.6
 Income before income taxes 558.9 461.3
 Income tax provision 191.4 152.6
 Net income 367.5 308.7
 Preferred stock dividends 2.6 2.7
 Earnings applicable to common stock $ 364.9 $ 306.0
 Earnings per common share $ 1.68 $ 1.43
 Average number of common shares 217.3 213.9
 UNITED TELECOMMUNICATIONS, INC.
 (Unaudited)
 Three Months Ended
 Dec. 31,
 1991 1990
 (In Millions Except
 Per Share Data)
 Net operating revenues
 Long-distance communications services $1,342.7 $1,331.4
 Local communications services 719.0 684.7
 Complementary businesses 195.8 200.6
 Intercompany revenues (60.2) (66.7)
 Total net operating revenues 2,197.3 2,150.0
 Operating expenses
 Long-distance communications services 1,262.5 1,280.1
 Local communications services 554.9 546.9
 Complementary businesses 179.1 185.0
 Intercompany expenses (60.2) (66.7)
 Total operating expenses 1,936.3 1,945.3
 Operating income 261.0 204.7
 Other income, net (1.1) (3.9)
 Interest charges, net of capitalization 95.8 103.5
 Minority interest 15.7 4.5
 Income before income taxes 150.6 100.6
 Income tax provision 52.5 29.8
 Net income 98.1 70.8
 Preferred stock dividends .7 .7
 Earnings applicable to common stock $ 97.4 $ 70.1
 Earnings per common share $ 0.45 $ 0.33
 Average number of common shares 218.4 215.6
 -0- 2/5/92
 /CONTACT: Judith Shannon, 913-624-3221 or, after hours, 816-931-7156, or Steve Dykes, 202-828-7435 or, after hours, 703-242-1769/
 (UT) CO: United Telecommunications, Inc.; US Sprint Communications
 Company ST: Missouri IN: TLS SU: ERN


DS -- DC005 -- 7005 02/05/92 08:20 EST
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Date:Feb 5, 1992
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