UNITED STATES
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) July 27, 1995
CENTURY TELEPHONE ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)
Louisiana 1-7784 72-0651161
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
100 Century Park Drive, Monroe, Louisiana 71203
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (318) 388-9500
Item 5. Other Events
The following press release was issued by Century Telephone
Enterprises, Inc. on July 27, 1995:
CENTURY TELEPHONE ENTERPRISES, INC.
NEWS RELEASE
FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT:
July 27, 1995 R. Stewart Ewing, Jr. (318) 388-9500
CENTURY TELEPHONE ENTERPRISES, INC. REPORTS
INCREASES IN SECOND QUARTER OPERATING RESULTS
Monroe, LA . . . . Century Telephone Enterprises, Inc., (NYSE Symbol:
CTL) reports increases in operating results for the second quarter of
1995 compared with the second quarter of 1994.
During the second quarter, consolidated revenues increased 12.7% to
$149,734,000 from $132,880,000 in 1994. Operating income was
$48,812,000, up from $41,713,000, a 17.0% increase. Net income grew
21.8% to $26,167,000 during the second quarter of 1995 from $21,485,000
in the second quarter of 1994. Fully diluted earnings per share
increased 15.4% to 45 cents per share from 39 cents per share.
Operating cash flow increased 16.8% to $75,482,000 from $64,647,000.
"Of the $7,099,000 increase in operating income, $5,970,000, or 84%,
was generated by our cellular business," said Glen F. Post, III,
President and Chief Executive Officer.
Telephone revenues for the second quarter of 1995 increased 7.3% to
$101,857,000 from $94,969,000. Telephone operating income was up 3.3%
to $35,025,000 from $33,896,000, while operating cash flow increased to
$55,633,000 from $51,652,000, a 7.7% increase. "Our telephone
operations continued to generate good growth in operating cash flow in
the second quarter," said Post. "Telephone access lines have increased
to more than 470,000 at June 30, 1995 from approximately 445,000 at
June 30, 1994."
Mobile communications revenues grew 26.3% to $47,877,000 during the
second quarter of 1995 from $37,911,000 during the second quarter of
1994, while the number of cellular customers increased 35.8% to more
than 240,000 at June 30, 1995. Mobile communications operating income
increased 76.4% to $13,787,000 from $7,817,000. Operating cash flow
grew to $19,849,000 from $12,995,000 in 1994, a 52.7% increase. "We are
pleased with the increase in cellular subscribers during the second
quarter as well as the growth in earnings and cash flow of our cellular
operations," said Post. "We continue to execute our strategy of
expanding our cellular operating clusters, acquiring cellular
operations in Michigan Rural Service Area (RSA) #4 in July of this year
and agreeing to acquire cellular operations in Mississippi RSAs #2 and
#6. These acquisitions will enhance the value of our existing
networks."
During the first six months of 1995, consolidated revenues increased
15.1% to $292,159,000 from $253,860,000, while operating income
increased 24.2% to $96,368,000 from $77,599,000 a year ago. Operating
cash flow grew to $148,891,000 from $121,966,000, a 22.1% increase. Net
income increased 30.7% to $53,167,000 from $40,686,000, and fully
diluted earnings per share grew 24.3% to 92 cents per share compared
with 74 cents per share a year ago. Net income for the first six months
of 1995 included $2,002,000 of gains on the sales of assets (3 cents
per fully diluted share).
Century Telephone Enterprises, Inc., headquartered in Monroe,
Louisiana, is a diversified telecommunications company. Century is the
16th largest local exchange telephone company, based on access lines,
and the 17th largest cellular company, based on population equivalents
owned, in the United States.
CENTURY TELEPHONE ENTERPRISES, INC.
FINANCIAL HIGHLIGHTS
THREE MONTHS ENDED JUNE 30, 1995 AND 1994
(UNAUDITED)
INCREASE
In thousands, except per share amounts 1995 1994 (DECREASE)
- ------------------------------------------------------------------------------
TELEPHONE OPERATIONS
Operating revenues $ 101,857 94,969 7.3%
--------- -------
Operating expenses
Plant operations 21,039 20,377 3.2%
Customer operations 9,940 8,356 19.0%
Corporate and other 15,245 14,584 4.5%
Depreciation and amortization 20,608 17,756 16.1%
--------- -------
66,832 61,073 9.4%
--------- -------
Telephone operating income 35,025 33,896 3.3%
--------- -------
MOBILE COMMUNICATIONS OPERATIONS
Operating revenues 47,877 37,911 26.3%
--------- -------
Operating expenses
Cost of sales and other operating 9,580 8,119 18.0%
General, administrative and
customer service 9,068 8,503 6.6%
Sales and marketing 9,380 8,294 13.1%
Depreciation and amortization 6,062 5,178 17.1%
--------- -------
34,090 30,094 13.3%
--------- -------
Mobile Communications operating income 13,787 7,817 76.4%
--------- -------
TOTAL OPERATING INCOME 48,812 41,713 17.0%
OTHER INCOME (EXPENSE)
Interest expense (10,451) (10,824) (3.4%)
Income from unconsolidated
cellular entities 3,374 3,411 (1.1%)
Minority interest (1,895) (857) 121.1%
Other income and expense 2,127 795 167.5%
INCOME TAX EXPENSE (15,800) (12,753) 23.9%
--------- -------
NET INCOME $ 26,167 21,485 21.8%
========= =======
EARNINGS PER SHARE
Primary $ 0.45 0.40 12.5%
Fully diluted $ 0.45 0.39 15.4%
SHARES OUTSTANDING
Primary 58,453 53,546 9.2%
Fully diluted 58,659 58,288 0.6%
DIVIDENDS PER COMMON SHARE $ 0.0825 0.0800 3.1%
CAPITAL EXPENDITURES
Telephone $ 32,319 31,480 2.7%
Mobile Communications 7,774 7,742 0.4%
Other 4,846 1,651 193.5%
--------- -------
Total capital expenditures $ 44,939 40,873 9.9%
========= =======
CENTURY TELEPHONE ENTERPRISES, INC.
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(UNAUDITED)
INCREASE
In thousands, except per share amounts 1995 1994 (DECREASE)
- ------------------------------------------------------------------------------
TELEPHONE OPERATIONS
Operating revenues $ 202,133 186,739 8.2%
--------- -------
Operating expenses
Plant operations 42,674 41,590 2.6%
Customer operations 19,090 16,864 13.2%
Corporate and other 30,120 28,688 5.0%
Depreciation and amortization 40,879 34,811 17.4%
--------- -------
132,763 121,953 8.9%
--------- -------
Telephone operating income 69,370 64,786 7.1%
--------- -------
MOBILE COMMUNICATIONS OPERATIONS
Operating revenues 90,026 67,121 34.1%
--------- -------
Operating expenses
Cost of sales and other operating 17,112 14,497 18.0%
General, administrative and
customer service 17,848 15,683 13.8%
Sales and marketing 16,424 14,572 12.7%
Depreciation and amortization 11,644 9,556 21.9%
--------- -------
63,028 54,308 16.1%
--------- -------
Mobile Communications operating income 26,998 12,813 110.7%
--------- -------
TOTAL OPERATING INCOME 96,368 77,599 24.2%
OTHER INCOME (EXPENSE)
Interest expense (21,847) (19,326) 13.0%
Income from unconsolidated
cellular entities 8,098 5,975 35.5%
Gain on sales of assets 5,909 - -
Minority interest (3,841) (1,555) 147.0%
Other income and expense 2,975 1,684 76.7%
INCOME TAX EXPENSE (34,495) (23,691) 45.6%
--------- -------
NET INCOME $ 53,167 40,686 30.7%
========= ========
EARNINGS PER SHARE
Primary $ 0.93 0.76 22.4%
Fully diluted $ 0.92 0.74 24.3%
SHARES OUTSTANDING
Primary 57,318 53,157 7.8%
Fully diluted 58,659 57,859 1.4%
DIVIDENDS PER COMMON SHARE $ 0.1650 0.1600 3.1%
CAPITAL EXPENDITURES
Telephone $ 61,158 70,659 (13.4%)
Mobile Communications 26,429 16,313 62.0%
Other 11,591 3,454 235.6%
--------- -------
Total capital expenditures $ 99,178 90,426 9.7%
========= =======
CENTURY TELEPHONE ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEETS
JUNE 30, 1995 AND DECEMBER 31, 1994
(UNAUDITED)
JUNE 30, DEC. 31,
1995 1994
- ---------------------------------------------------------------------
(dollars expressed in thousands)
ASSETS
CURRENT ASSETS $ 81,411 81,228
---------- ----------
PROPERTY, PLANT AND EQUIPMENT
Telephone 1,147,202 1,076,496
Mobile Communications 172,676 152,305
Other 96,368 85,406
Accumulated depreciation (411,997) (367,076)
---------- ----------
Net property, plant and equipment 1,004,249 947,131
---------- ----------
INVESTMENTS AND OTHER ASSETS
Excess cost of net assets acquired 444,283 441,436
Other 188,742 173,458
---------- ----------
Total investments and other assets 633,025 614,894
---------- ----------
TOTAL ASSETS $ 1,718,685 1,643,253
=========== ==========
LIABILITIES AND EQUITY
CURRENT LIABILITIES $ 316,231 286,668
LONG-TERM DEBT 393,994 518,603
DEFERRED CREDITS AND OTHER LIABILITIES 195,922 187,746
STOCKHOLDERS' EQUITY 812,538 650,236
---------- ----------
TOTAL LIABILITIES AND EQUITY $ 1,718,685 1,643,253
========== ==========
JUNE 30, JUNE 30, %
1995 1994 INC.
- ----------------------------------------------------------------------
Telephone access lines 470,123 444,609 5.7%
Cellular units in service-
majority-owned markets 240,568 177,097 35.8%
SIGNATURE
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.
CENTURY TELEPHONE ENTERPRISES, INC.
By: /s/ Murray H. Greer
---------------------
Murray H. Greer
Controller
Dated: July 28, 1995
