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) January 13,
1994
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CONTEL OF CALIFORNIA, INC.
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(Exact name of registrant as specified in its charter)
California 0-1245 95-
1789511
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(State or other (Commission (IRS
Employer
jurisdiction of File Number)
Identification No.)
incorporation)
16071 Mojave Drive, Victorville, California 92392
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 619-245-
0511
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(Former name or former address, if changed since last
report)
CONTEL OF CALIFORNIA, INC.
FORM 8-K
ITEM OF INFORMATION
Item 5. Other Events
Contel of California, Inc. today announced that its results for
the fourth quarter of 1993 will include a one-time pre-tax
restructuring charge of $49.0 million related primarily to the
implementation of its re-engineering plan over the next three
years. The restructuring charge will reduce fourth quarter and
full year net income by $30.2 million.
The re-engineering plan will redesign and streamline processes in
order to improve customer-responsiveness and product quality,
reduce the time necessary to introduce new products and services
and further reduce costs. The re-engineering plan includes $20.0
million to upgrade or replace existing customer service and
administrative systems and enhance network software, $22.6
million for employee separation benefits associated with
workforce reductions and $6.1 million primarily for the
consolidation of facilities and operations and other related
costs. The charge for employee separation benefits includes
$11.4 million related to the recognition of previously deferred
postretirement health and life insurance costs for separating
employees.
CONTEL OF CALIFORNIA, INC.
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.
CONTEL OF CALIFORNIA, INC.
(Registrant)
Date: January 14, 1994 MICHAEL W.
BOLLINGER
MICHAEL W.
BOLLINGER
Assistant Vice President-
Controller
(Principal Financial and
Accounting Officer)
