<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
--------
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (date of earliest event reported):
March 31, 1997
EXCEL Communications, Inc.
--------------------------
(Exact name of registrant as specified in its charter)
Delaware 1- 14322 75-2624939
--------------- ------------ -------------------
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
8750 North Central Expressway
Dallas, Texas 75231
--------------------
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code (214) 863-8000
--------------
<PAGE>
ITEM 5. OTHER EVENTS
------------
See Exhibit 20.1 to this Form 8-K.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
-----------------------------------------
INFORMATION AND EXHIBITS
------------------------
(c) Exhibit.
20.1 Press Release, dated March 31, 1997, regarding change in
accounting practice.
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
EXCEL COMMUNICATIONS, INC.
April 3, 1997 By: /s/ Kenny A. Troutt
-----------------------------------------
Kenny A. Troutt
President and Chief Executive Officer
3
<PAGE>
EXHIBIT INDEX
-------------
Exhibit No. Description Page No.
- ----------- ----------- --------
20.1 Press Release, dated March 31, 1997, regarding
change in accounting practice.
<PAGE>
EXHIBIT 20.1
TO
FORM 8-K
FOR
EXCEL COMMUNICATIONS, INC.
<PAGE>
[LOGO OF EXCEL APPEARS HERE]
EXCEL COMMUNICATIONS, INC. ANNOUNCES CHANGE IN
ACCOUNTING PRACTICE TO FULLY EXPENSE CUSTOMER
ACQUISITION COSTS
Dallas, Texas -- March 31, 1997 -- EXCEL Communications, Inc., (NYSE: ECI)
today announced that it is changing its accounting for customer acquisition
costs effective January 1, 1997. Previously, the Company had deferred the
portions of commissions paid to Independent Representatives that directly relate
to the acquisition of long distance subscribers. Beginning January 1, 1997, the
Company will be fully expensing customer acquisition costs in the period
incurred.
"EXCEL is changing its accounting practice in order to present its
operating results in a manner more consistent with its peers. Members of the
financial community prefer to compare our financial presentation format to that
of other major telecommunications industry participants," said John J. McLaine,
Executive Vice President and Chief Financial Officer.
During the first quarter of 1997, the Company will recognize a one-time
charge of $65 million to reflect the change in accounting practice. EXCEL has
consistently disclosed the effect of the deferral on its results of operations
since its initial public offering. As reported in its 1996 Form 10-K, the
Company's earnings for the year ended 1996 and the fourth quarter of 1996,
assuming that customer acquisition costs were not deferred and amortized, were
$1.14 and $.32 per share, respectively. Based on the new accounting practice,
EXCEL will recognize a one-time, after tax charge of $65 million, or $.59 per
share, during the first quarter of 1997.
--more--
<PAGE>
EXCEL COMMUNICATIONS ANNOUNCES CHANGE IN ACCOUNTING PRACTICE
Page 2
EXCEL Communications, Inc., reported record revenue of $1.4 billion for
1996 and is the fifth largest long distance company in the United States in
terms of presubscribed lines according to the Federal Communications Commission.
The Company offers its subscribers a variety of communications products and
services under the EXCEL branded name, which include residential service,
commercial service, 800/PIN service, international service, calling cards, and
paging services. EXCEL's services are marketed exclusively through a nationwide
network of Independent Representatives. EXCEL has over 2,200 employees in
departments which support the corporate, network management, billing,
teleservices, and marketing functions.
For more information contact:
Investor Relations
(214)863-8455
