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) October 26, 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
<PAGE>
Item 5. Other Events
The following press release was issued by Century Telephone Enterprises,
Inc. on October 26, 1995:
CENTURY TELEPHONE ENTERPRISES, INC.
NEWS RELEASE
FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT:
October 26, 1995 R. Stewart Ewing, Jr. (318) 388-9500
CENTURY TELEPHONE ENTERPRISES, INC. REPORTS
EXCELLENT THIRD QUARTER OPERATING RESULTS
Monroe, LA . . . . Century Telephone Enterprises, Inc.,(NYSE Symbol: CTL)
reports increases in revenues, net income, operating income and earnings before
interest, taxes, depreciation and amortization (EBITDA) for the third quarter of
1995 compared with the third quarter of 1994.
During the third quarter,consolidated revenues increased 12.4% to
$159,122,000 from $141,515,000 in 1994. Operating income was $55,072,000, up
from $45,781,000, a 20.3% increase. Of the $9,291,000 increase in operating
income, $6,476,000, or 70%, was generated by the company's cellular business.
EBITDA increased 18.3% to $90,534,000 from $76,517,000. Net income grew 29.5% to
$31,880,000 during the third quarter of 1995 from $24,613,000 in the third
quarter of 1994. Fully diluted earnings per share increased 22.7% to 54 cents
per share from 44 cents per share.
Telephone revenues for the third quarter of 1995 increased 6.5% to
$105,918,000 from $99,487,000. Telephone operating income was up 8.3% to
$36,555,000 from $33,740,000, while operating cash flow increased to $58,932,000
from $53,255,000, a 10.7% increase. Telephone access lines have increased to
more than 477,800 at September 30, 1995 from approximately 452,100 at September
30, 1994. "We are pleased with the consistent growth of our telephone operations
which provides us with a stable and growing cash flow," said Glen F. Post, III,
President and Chief Executive Officer.
Revenues from cellular operations grew to $53,204,000 during the third
quarter of 1995 while the number of cellular customers increased 39.1% to more
than 261,100 at September 30, 1995. Excluding the customers in newly acquired
markets, cellular subscribers grew by 33.6% from a year ago. Mobile
communications operating income increased 53.8% to $18,517,000 from $12,041,000.
Operating cash flow grew to $24,970,000 from $17,741,000 in 1994, a 40.7%
increase. "We expect continued strong growth from our cellular operations and
solid performance from our telephone operations in the months ahead," Post said.
<PAGE>
During the first nine months of 1995, consolidated revenues increased 14.1%
to $451,281,000 from $395,375,000, while operating income increased 22.7% to
$151,440,000 from $123,380,000 a year ago. EBITDA grew to $252,566,000 from
$204,587,000, a 23.5% increase. Net income increased 30.2% to $85,047,000 from
$65,299,000, and fully diluted earnings per share grew 23.7% to $1.46 per share
compared with $1.18 per share a year ago. Net income for the first nine months
of 1995 included $2,002,000 of gains on the sales of assets (3 cents per fully
diluted share).
"We are pursuing the expansion of our competitive access business in Texas
and our long distance service offering in our telephone operating areas. We
believe these strategies provide additional opportunities for long-term
growth," Post said.
During the quarter, Century completed the acquisitions of cellular
operations in Michigan Rural Service Area (RSA) #4 and Mississippi RSAs #2 and
#6. These acquisitions add more than 556,000 pops (the portion of the population
of the service area based on ownership interest) and enhance our existing
cellular clusters.
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.
<PAGE>
CENTURY TELEPHONE ENTERPRISES, INC.
FINANCIAL HIGHLIGHTS
THREE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(UNAUDITED)
INCREASE
In thousands, except per share amounts 1995 1994 (DECREASE)
--------- --------- --------
TELEPHONE OPERATIONS
Operating revenues $ 105,918 99,487 6.5%
--------- ---------
Operating expenses
Plant operations 21,801 22,031 (1.0%)
Customer operations 9,759 8,870 10.0%
Corporate and other 15,426 15,331 0.6%
Depreciation and amortization 22,377 19,515 14.7%
--------- ---------
69,363 65,747 5.5%
--------- ---------
Telephone operating income 36,555 33,740 8.3%
--------- ---------
MOBILE COMMUNICATIONS OPERATIONS
Operating revenues 53,204 42,028 26.6%
--------- ---------
Operating expenses
Cost of sales and other operating expenses 8,914 8,142 9.5%
General, administrative and customer service 10,072 8,678 16.1%
Sales and marketing 9,248 7,467 23.9%
Depreciation and amortization 6,453 5,700 13.2%
--------- ---------
34,687 29,987 15.7%
--------- ---------
Mobile Communications operating income 18,517 12,041 53.8%
--------- ---------
TOTAL OPERATING INCOME 55,072 45,781 20.3%
OTHER INCOME (EXPENSE)
Interest expense (10,924) (11,513) (5.1%)
Income from unconsolidated cellular entities 6,602 4,604 43.4%
Minority interest (2,440) (1,461) 67.0%
Other income and expense 2,470 2,378 3.9%
Income tax expense (18,900) (15,176) 24.5%
--------- ---------
NET INCOME $ 31,880 24,613 29.5%
========= =========
EARNINGS PER SHARE
Primary $ 0.54 0.46 17.4%
Fully diluted $ 0.54 0.44 22.7%
SHARES OUTSTANDING
Primary 58,734 53,583 9.6%
Fully diluted 59,193 58,332 1.5%
DIVIDENDS PER COMMON SHARE $ 0.0825 0.0800 3.1%
CAPITAL EXPENDITURES
Telephone $ 36,855 41,407 (11.0%)
Mobile Communications 3,560 12,878 (72.4%)
Other 4,698 2,641 77.9%
--------- ---------
Total capital expenditures $ 45,113 56,926 (20.8%)
========= =========
<PAGE>
CENTURY TELEPHONE ENTERPRISES, INC.
FINANCIAL HIGHLIGHTS
NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(UNAUDITED)
INCREASE
In thousands, except per share amounts 1995 1994 (DECREASE)
--------- --------- --------
TELEPHONE OPERATIONS
Operating revenues $ 308,051 286,226 7.6%
--------- ---------
Operating expenses
Plant operations 64,475 63,621 1.3%
Customer operations 28,849 25,734 12.1%
Corporate and other 45,546 44,019 3.5%
Depreciation and amortization 63,256 54,326 16.4%
--------- ---------
202,126 187,700 7.7%
--------- ---------
Telephone operating income 105,925 98,526 7.5%
--------- ---------
MOBILE COMMUNICATIONS OPERATIONS
Operating revenues 143,230 109,149 31.2%
--------- ---------
Operating expenses
Cost of sales and other operating expenses 26,026 22,639 15.0%
General, administrative and customer service 27,920 24,361 14.6%
Sales and marketing 25,672 22,039 16.5%
Depreciation and amortization 18,097 15,256 18.6%
--------- ---------
97,715 84,295 15.9%
--------- ---------
Mobile Communications operating income 45,515 24,854 83.1%
--------- ---------
TOTAL OPERATING INCOME 151,440 123,380 22.7%
OTHER INCOME (EXPENSE)
Interest expense (32,771) (30,839) 6.3%
Income from unconsolidated cellular entities 14,700 10,579 39.0%
Gain on sales of assets 5,909 - -
Minority interest (6,281) (3,016) 108.3%
Other income and expense 5,445 4,062 34.0%
Income tax expense (53,395) (38,867) 37.4%
--------- ---------
NET INCOME $ 85,047 65,299 30.2%
========= =========
EARNINGS PER SHARE
Primary $ 1.47 1.22 20.5%
Fully diluted $ 1.46 1.18 23.7%
SHARES OUTSTANDING
Primary 57,790 53,299 8.4%
Fully diluted 58,812 58,016 1.4%
DIVIDENDS PER COMMON SHARE $ 0.2475 0.2400 3.1%
CAPITAL EXPENDITURES
Telephone $ 98,013 112,066 (12.5%)
Mobile Communications 29,989 29,191 2.7%
Other 16,289 6,095 167.3%
-------- ---------
Total capital expenditures $ 144,291 147,352 (2.1%)
======== =========
<PAGE>
CENTURY TELEPHONE ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1995 AND DECEMBER 31, 1994
(UNAUDITED)
SEPT. 30, DEC. 31,
1995 1994
------------ ------------
(dollars expressed in thousands)
ASSETS
CURRENT ASSETS $ 93,997 81,228
------------ ------------
PROPERTY, PLANT AND EQUIPMENT
Telephone 1,176,568 1,076,496
Mobile Communications 180,298 152,305
Other 100,385 85,406
Accumulated depreciation (432,115) (367,076)
------------ ------------
Net property, plant and equipment 1,025,136 947,131
------------ ------------
INVESTMENTS AND OTHER ASSETS
Excess cost of net assets acquired 498,472 441,436
Other 197,036 173,458
Total investments and other assets ------------ ------------
695,508 614,894
------------ ------------
TOTAL ASSETS $ 1,814,641 1,643,253
============ ============
LIABILITIES AND EQUITY
CURRENT LIABILITIES $ 182,962 286,668
LONG-TERM DEBT 570,003 518,603
DEFERRED CREDITS AND OTHER LIABILITIES 203,159 187,746
STOCKHOLDERS' EQUITY 858,517 650,236
------------ ------------
TOTAL LIABILITIES AND EQUITY $ 1,814,641 1,643,253
============ ============
SEPT. 30, SEPT. 30, %
1995 1994 INC.
------------ ------------ -----
Telephone access lines 477,802 452,090 5.7%
Cellular units in service-
majority-owned markets 261,122 187,695 39.1%
<PAGE>
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: November 7, 1995
