UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended SEPTEMBER 30, 1994
------------------
OR
( ) Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from __________ to __________
Commission file number 0-1244
------
UNITED TELEPHONE COMPANY OF FLORIDA
- -----------------------------------
(Exact name of registrant as specified in its charter)
FLORIDA 59-0248365
- ---------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P. O. BOX 165000, Altamonte Springs, Florida 32716-5000
- --------------------------------------------------------
(Address of principal executive offices)
(407) 889-6010
- --------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months,
and (2) has been subject to such filing requirements for the past
90 days. Yes X No
There are 6,500,000 shares of common stock, par value $2.50,
outstanding as of the date of filing this report.
<PAGE>
<TABLE> PART I.
Item 1.
UNITED TELEPHONE COMPANY OF FLORIDA
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<CAPTION>
September 30, December 31,
ASSETS 1994 1993
------------ ------------
(Unaudited)
CURRENT ASSETS
<S> <C> <C>
Cash $ 3,493 $ 2,353
Receivables:
Interexchange carriers 34,256 34,919
Customers and other 76,410 68,475
Unbilled toll 19,064 22,179
Affiliated companies 8,185 9,262
Allowance for uncollectible accounts (3,043) (2,857)
Inventories 27,403 22,790
Prepayments 5,116 1,311
Deferred tax asset 15,138 10,305
------- -------
186,022 168,737
PROPERTY, PLANT AND EQUIPMENT
Land and buildings 148,351 146,378
Telephone network equipment and
outside plant 2,145,502 2,087,174
Other 121,695 107,214
Construction in progress 52,960 30,195
--------- ---------
2,468,508 2,370,961
Less accumulated depreciation 1,061,318 978,993
--------- ---------
1,407,190 1,391,968
DEFERRED CHARGES AND OTHER ASSETS 49,470 51,378
--------- ---------
$ 1,642,682 $ 1,612,083
========= =========
See Accompanying Condensed Notes to Consolidated Financial Statements.
-1-
<PAGE>
PART I.
Item 1.
<CAPTION>
September 30, December 31,
LIABILITIES AND STOCKHOLDERS' EQUITY 1994 1993
- ------------------------------------ ------------ ------------
(Unaudited)
CURRENT LIABILITIES
<S> <C> <C>
Outstanding checks in excess of cash
balances $ 9,193 $ 4,187
Commercial paper 75,815 67,210
Current maturities of long-term debt 4,267 273
Accounts payable:
Interexchange carriers 50,486 37,926
Affiliated companies 32,594 27,032
Other 22,925 19,191
Advance billings 15,642 15,429
Accrued merger and integration costs 11,789 16,074
Accrued taxes 23,697 13,763
Other 40,281 38,760
------- -------
286,689 239,845
LONG-TERM DEBT 389,217 391,525
DEFERRED CREDITS AND OTHER LIABILITIES
Income taxes 196,068 194,347
Investment tax credits 20,427 22,913
Other 43,290 46,262
------- -------
259,785 263,522
REDEEMABLE PREFERRED STOCK
Series 1959, at redemption value 340 360
Series 1961, at redemption value 108 126
Series 1966, at redemption value 1,531 1,601
----- -----
1,979 2,087
COMMITMENTS AND CONTINGENCIES
COMMON STOCK AND OTHER STOCKHOLDER'S EQUITY
Common stock, authorized 16,000,000 shares,
par value $2.50, issued and outstanding 16,250 16,250
Capital in excess of par value 166,448 166,448
Retained earnings 522,314 532,406
------- -------
705,012 715,104
--------- ---------
$ 1,642,682 $ 1,612,083
========= =========
See Accompanying Condensed Notes to Consolidated Financial Statements.
-2-
<PAGE>
PART I.
Item 1.
UNITED TELEPHONE COMPANY OF FLORIDA
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands)
<CAPTION>
Three Months Ended
September 30,
-----------------------------------
1994 1993
---------- ----------
(Unaudited)
OPERATING REVENUES
<S> <C> <C>
Local service $ 85,727 $ 77,548
Network access service 74,916 73,329
Long distance service 19,486 19,828
Miscellaneous 31,312 22,942
------- -------
211,441 193,647
OPERATING EXPENSES
Plant expense 60,733 52,581
Depreciation 40,851 37,917
Customer operations 30,999 29,352
Merger and integration costs - 13,000
Corporate operations 21,467 20,411
Other operating expenses 8,339 3,611
Taxes:
Federal income:
Current 12,008 8,229
Deferred (987) (1,204)
Deferred investment tax
credits, net (807) (874)
State, local and miscellaneous 8,044 7,326
------- -------
180,647 170,349
------- -------
OPERATING INCOME 30,794 23,298
INTEREST CHARGES
Interest on long-term debt 7,726 8,354
Interest on short-term debt 400 350
Other interest 849 29
----- -----
8,975 8,733
OTHER INCOME
Interest charged to construction 202 76
Interest income 16 154
----- -----
218 230
----- -----
NET INCOME $ 22,037 $ 14,795
====== ======
See Accompanying Condensed Notes to Consolidated Financial Statements.
-3-
<PAGE>
PART I.
Item 1.
UNITED TELEPHONE COMPANY OF FLORIDA
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands)
Nine Months Ended
September 30,
--------------------------------
1994 1993
----------- -----------
(Unaudited)
OPERATING REVENUES
Local service $ 252,623 $ 228,115
Network access service 235,185 233,501
Long distance service 61,861 63,057
Miscellaneous 86,485 70,144
------- -------
636,154 594,817
OPERATING EXPENSES
Plant expense 166,083 164,493
Depreciation 122,780 112,598
Customer operations 87,183 82,416
Merger and integration costs - 53,000
Corporate operations 63,851 55,526
Other operating expenses 19,233 13,078
Taxes:
Federal income:
Current 47,944 19,254
Deferred (4,800) 1,472
Deferred investment tax
credit, net (2,343) (2,619)
State, local and miscellaneous 25,860 22,234
------- -------
525,791 521,452
OPERATING INCOME 110,363 73,365
INTEREST CHARGES
Interest on long-term debt 23,276 26,193
Interest on short-term debt 885 838
Other interest 2,113 753
------ ------
26,274 27,784
OTHER INCOME
Interest charged to construction 466 270
Interest income 57 170
----- ------
523 440
INCOME BEFORE EXTRAORDINARY ITEM 84,612 46,021
Extraordinary losses on early
extinguishments of debt, net of related
income tax benefits of $468 - (777)
NET INCOME $ 84,612 $ 45,244
====== ======
See Accompanying Condensed Notes to Consolidated Financial Statements.
-4-
<PAGE>
PART I.
Item 1.
UNITED TELEPHONE COMPANY OF FLORIDA
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
<CAPTION> Nine Months Ended
September 30,
------------------------
1994 1993
------- ------
(Unaudited)
OPERATING ACTIVITIES
<S> <C> <C>
Net income $ 84,612 $ 45,244
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 122,780 112,598
Extraordinary losses on early extinquishment
of debt - 1,245
Increase (decrease) in deferred income taxes
and net investment tax credits (8,376) 5,625
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (2,894) 1,138
(Increase) decrease in inventories (4,613) 1,731
(Increase) decrease in prepayments (3,805) 1,676
Increase (decrease) in accounts payable,
accrued expenses and other current
liabilities 34,245 30,452
Noncurrent assets and liabilites, net 1,855 (829)
------- -------
NET CASH PROVIDED BY OPERATING ACTIVITIES 223,804 198,880
INVESTING ACTIVITIES
Additions to property, plant and equipment (136,603) (150,902)
Net salvage from plant and equipment retired (1,399) 306
--------- ---------
NET CASH USED BY INVESTING ACTIVITIES (138,002) (150,596)
FINANCING ACTIVITIES
Proceeds from long-term borrowings 4,418 201,932
Principal payments and retirements of
long-term debt (2,873) (170,894)
Increase (decrease) in commercial paper
and advances from parent company 8,605 (22,288)
Dividends paid (94,704) (50,784)
Redemption of preferred stock (108) (107)
Other - (8,459)
-------- --------
NET CASH USED BY FINANCING ACTIVITIES (84,662) (50,600)
-------- --------
INCREASE (DECREASE) IN CASH 1,140 (2,316)
CASH AT BEGINNING OF PERIOD 2,353 4,926
-------- --------
CASH AT END OF PERIOD $ 3,493 $ 2,610
===== =====
See Accompanying Condensed Notes to Consolidated Financial Statements.
</TABLE> -5-
<PAGE>
PART I.
Item 1.
UNITED TELEPHONE COMPANY OF FLORIDA
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
(UNAUDITED)
The information contained in this Form 10-Q for the three and nine-month
interim periods ended September 30, 1994 and 1993 has been prepared in
accordance with instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
In the opinion of management, all adjustments considered necessary,
consisting only of normal recurring and certain nonrecurring accruals (see
Note 3), to present fairly the consolidated financial position, results of
operations and cash flows for such interim periods have been made.
Certain information and footnote disclosures normally included in
consolidated financial statements prepared in accordance with generally
accepted accounting principles (GAAP) have been condensed or omitted. The
results of operations for the nine months ended September 30, 1994 are not
necessarily indicative of the operating results that may be expected for
the year ended December 31, 1994.
1. BASIS OF PRESENTATION
The accompanying consolidated financial statements reflect the operations
of United Telephone Company of Florida and its wholly-owned subsidiary,
United Telephone Long Distance, Inc., collectively referred to as the
"Company." All significant intercompany transactions have been
eliminated.
Certain amounts in the accompanying consolidated financial statements for
1993 have been reclassified to conform to the presentation of amounts
in the 1994 consolidated financial statements. These reclassifications had
no effect on net income in either year.
2. EARNINGS PER SHARE
Earnings per share information has been omitted because the Company is a
wholly-owned subsidiary of Sprint Corporation (Sprint).
3. SPRINT/CENTEL MERGER
Effective March 9, 1993, Sprint consummated its merger with Centel
Corporation (Centel), a telecommunications company with local exchange
and cellular/wireless communications services operations. Centel's local
exchange telephone businesses operate in six states: Florida, North
Carolina, Virginia, Illinois, Texas and Nevada. The transaction costs
associated with the merger (consisting primarily of investment banking
and legal fees) and the estimated expenses of integrating and
restructuring the operations of the two companies (consisting primarily
of employee severance and relocation expenses and costs of eliminating
duplicative facilities) resulted in nonrecurring charges to Sprint during
1993. The portion of such charges recorded by the Company for the three
and nine months ended September 30, 1993, was $13.0 million and $53.0
million, respectively, which reduced net income by approximately $6.8
million and $28.5 million, respectively.
-6-
<PAGE>
PART I.
Item 1.
UNITED TELEPHONE COMPANY OF FLORIDA
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1994
(UNAUDITED)
<TABLE>
4. SUPPLEMENTAL CASH FLOWS INFORMATION
The following are the supplemental disclosures required for the
Consolidated Statements of Cash Flows:
Nine Months Ended
<CAPTION> September 30,
_____________________
1994 1993
---- ----
(In Thousands)
Cash paid for:
<S> <C> <C>
Interest, net of
capitalized $29,338 $29,694 $29,338
Income taxes $67,629 $29,782
</TABLE>
5. CONTINGENCY
On January 10, 1994, the Company was sent a letter from AT&T claiming
that the Company is liable, under certain billing agreements, for the
refund of approximately $7 million, plus interest, of gross receipts
taxes collected and remitted on behalf of AT&T to the Florida Department
of Revenue. The Company is contesting this claim. Management cannot
predict the ultimate resolution of this claim but believes it will not
result in a material effect on the Company's consolidated financial
statements.
-7-
<PAGE>
PART I.
Item 2.
UNITED TELEPHONE COMPANY OF FLORIDA
FORM 10-Q
SEPTEMBER 30, 1994
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Regulatory Issues
- -----------------
The Company entered into a stipulation with the Florida Public Service
Commission (FPSC) in June 1994, whereby the Company's intrastate rates were
reduced by $17.6 million on an annual basis beginning July 1, 1994.
Approximately $10 million of the rate reduction is in intrastate access
elements and is intended to bring the intrastate access rates more in line
with interstate rates. Another $5 million of the rate reduction is in
intraLATA toll rates. In addition, the Company agreed to record
approximately $2.1 million in additional intrastate depreciation which was
recognized in the second quarter. The Company's allowed intrastate return
on equity was capped at 13.0 percent for 1994 with any earnings in excess
of 13.0 percent to be deferred to 1995 when, absent further commission
action, the maximum allowed return reverts to 13.5 percent.
On November 2, 1994 the Company filed with the FPSC for additional
intrastate rate reductions with an effective date of January 1, 1995. The
total proposed revenue reduction is projected to be $10.6 million in 1995,
$9 million of which is in switched access charge reductions and the
remainder in cellular interconnection usage rates and intraLATA toll rates.
It is anticipated that the FPSC will approve the requested rate reductions.
-8-
<PAGE>
UNITED TELEPHONE COMPANY OF FLORIDA
FORM 10-Q
SEPTEMBER 30, 1994
Liquidity and Capital Resources
- -------------------------------
Net cash provided by operating activities increased to $223.8 million for
the nine months ended September 30, 1994, compared to $198.9 million for
the same period in 1993. The increase in cash receipts is primarily due to
improved operating results in the current period partially offset by
increased accounts receivable, inventories and prepayments.
Cash used by investing activities decreased to $138.0 million for the nine
months ended September 30, 1994, compared to $150.6 million for the same
period in 1993. This is due to a decrease in additions to property, plant
and equipment. The Company expects capital expenditures to be
approximately $178 million in 1994.
Cash used by financing activities increased to $84.7 million for the nine
months ended 1994, compared to $50.6 million for the same period in 1993.
This increase is primarily attributed to increases in dividends paid.
At September 30, 1994, the Company had fully utilized its lines of
credit which were temporarily increased to cover the cash requirements for
the third quarter. In October the available lines of credit reverted back
to a level of $70 million.
The Company's ratio of common equity to total capital was 59.9 percent at
September 30, 1994, compared to 60.8 percent at December 31, 1993, and 60.2
percent at September 30, 1993. The short-term debt to total capital ratio
was 6.4 percent at September 30, 1994, compared to 5.7 percent at December
31, 1993, and 2.5 percent at September 30, 1993.
-9-
<PAGE>
PART I.
Item 2.
UNITED TELEPHONE COMPANY OF FLORIDA
FORM 10-Q
SEPTEMBER 30, 1994
Results of Operations
- ---------------------
Local service revenues are derived from providing telephone exchange
services. Local service revenues increased $8.2 million and $24.5 million
for the three and nine months ended September 30, 1994, respectively,
primarily due to access line growth. Also contributing were increases in
revenue for custom calling features, Centrex and Touch-Tone services.
Inside wire maintenance revenue increased due to increased rates effective
July 1, 1994, and telephone instrument lease revenue increased due to
higher customer demand.
Network access service revenues are derived from billing other carriers and
telephone customers for their use of the local network to complete long
distance calls in those instances where long distance service is not
provided entirely by the Company. Network access revenues increased $1.6
and $1.7 million for the three and nine months ended September 30, 1994,
respectively, primarily due to increased minutes of use, partially offset
by rate reductions that went into effect July 1, 1994.
Long distance revenues are derived principally from providing long distance
services within designated areas. Revenues decreased $342,000 and $1.2
million for the three and nine months ended September 30, 1994,
respectively. Rate reductions effective July 1, 1994, were primarily
responsible for these decreases, while the Company's exit from the
intraLATA toll private line pool effective June, 1993, also contributed to
the decrease for the nine months ended period. These decreases were
partially offset by increased message volumes.
Miscellaneous revenues include revenues related to directory publishing
fees, the provision of billing and collection services and operator
services for interexchange carriers, sales of telecommunication equipment
and leasing of network facilities. The increases in miscellaneous revenues
of $8.4 million and $16.3 million for the three and nine months ended
September 30, 1994, respectively, were primarily due to increases in
equipment sales, direct marketing services and directory revenues.
MessageLine revenues also contributed to the increases in miscellaneous
revenues.
Plant expenses increased $8.2 million and $1.6 million for the three and
nine months ended September 30, 1994, respectively, due to increased access
line movement and to increased repairs of cable and wire and building
maintenance required as a result of inclement weather experienced in the
central and northern portions of the state. Additionally, the level of
central office software expense increased $2.3 million and decreased $1.5
million for the three and nine months ended September 30, 1994,
respectively.
Depreciation expense increased $2.9 million and $10.2 million for the three
and nine months ended September 30, 1994, respectively, primarily due to an
increase in the depreciable asset base and an FPSC approved depreciation
adjustment which increased expense by $2.8 million.
-10-
<PAGE>
PART I.
Item 2.
UNITED TELEPHONE COMPANY OF FLORIDA
FORM 10-Q
SEPTEMBER 30, 1994
Results of Operations (Continued)
- ----------------------------------
Customer operations expense increased $1.6 million and $4.8 million for the
three and nine months ended September 30, 1994, respectively, due to
increases for marketing and business office operations resulting from
higher salaries, commissions, and related expenses associated with the
marketing of new products and services.
Corporate operations expense increased $1.1 million and $8.3 million for
the three and nine months ended September 30, 1994, respectively, due to
increases in information management systems, advertising costs and
postemployment and postretirement benefits.
Other operating expenses increased $4.7 million and $6.2 million for the
three and nine months ended September 30, 1994, respectively, primarily due
to an increase in the cost of sales of data terminal equipment, local area
network installation and telephone instruments consistent with higher sales
of these products.
Other Matters
- -------------
Consistent with most local exchange carriers, the Company accounts for the
economic effects of regulation pursuant to Statement of Financial
Accounting Standards (SFAS) No. 71, "Accounting for the Effects of Certain
Types of Regulation." The application of SFAS No. 71 requires the
accounting recognition of the rate actions of regulators where appropriate,
including the recognition of depreciation based on estimated useful lives
prescribed by regulatory commissions rather than those which might be
utilized by non-regulated enterprises. The Company currently believes
that its operations meet the criteria for the continued application of the
provisions of SFAS No. 71. However, the Company operates in an evolving
environment in which the regulatory framwork is changing and the level of
competition is increasing. Accordingly, the Company constantly monitors and
evaluates the ongoing applicability of SFAS No. 71 by assessing the liklihood
that prices which provide for the recovery of specific costs can continue to
be charged to customers. In the event the Company determines that its
operations no longer qualify for the application of the provisions of SFAS
No. 71, the Company would eliminate from its financial statements the effects
of any actions of regulators that had been recognized as assets and
liabilities, resulting in the recognition of a material, extraordinary,
noncash charge, the amount of which is not known at the present time.
-11-
<PAGE>
PART II.
UNITED TELEPHONE COMPANY OF FLORIDA
FORM 10-Q
QUARTER ENDED SEPTEMBER 30, 1994
OTHER INFORMATION
Item 1. Legal Proceedings
There were no reportable events during the quarter ended
September 30, 1994.
Item 2. Changes in Securities
There were no reportable events during the quarter ended
September 30, 1994.
Item 3. Defaults Upon Senior Securities
There were no reportable events during the quarter ended
September 30, 1994.
Item 4. Submission of Matters to a Vote of Security Holders
There were no reportable events during the quarter ended
September 30, 1994.
Item 5. Other Information
The Company's ratios of earnings to fixed charges were 4.46 and
3.42 for the three months ended September 30, 1994 and 1993,
respectively. The ratios of earnings to fixed charges were 5.61
and 3.30 for the nine months ended September 30, 1994 and 1993,
respectively. In the absence of the Company's recognition of $13
million and $53 million of nonrecurring charges related to the
Sprint/Centel merger recorded during the three and nine months
ended September 30, 1993, respectively, the ratios of earnings to
fixed charges would have been 4.60 and 4.83, respectively. These
ratios have been computed by dividing fixed charges into the sum
of (a) income before extraordinary item less capitalized interest
included in income, (b) income taxes, and (c) fixed charges.
Fixed charges consist of interest on all indebtedness (including
amortization of debt issuance expenses) and the interest factor
of operating rents.
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibit is filed as part of this report:
(12) Computation of ratio of earnings to fixed charges.
(b) No reports on Form 8-K were required to be filed during the
quarter ended September 30, 1994.
-12-
<PAGE>
UNITED TELEPHONE COMPANY OF FLORIDA
FORM 10-Q
QUARTER ENDED JUNE 30, 1994
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereunto duly authorized.
UNITED TELEPHONE COMPANY OF FLORIDA
-----------------------------------
(Registrant)
Date November 14, 1994 By /s/ J. I. Lehman
----------------- ----------------
J.I. Lehman
Controller & Chief
Accounting Officer
-13-
<PAGE>
<TABLE> Exhibit 12
UNITED TELEPHONE COMPANY OF FLORIDA
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(In Thousands)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- -------------------
1994 1993 1994 1993
---- ---- ----- ----
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Income before extraordinary $ 22,037 $ 14,795 (1) $ 84,612 $ 46,021 (1)
item
Capitalized interest (202) (76) (466) (270)
Income tax provision 12,159 8,055 48,289 22,632
------ ------ ------- ------
Subtotal 33,994 22,774 132,435 68,383
------ ------ ------- ------
Fixed charges:
Interest charges 8,975 8,733 26,274 27,784
Interest factor of operating
rents 844 675 2,457 2,005
----- ----- ------ -------
Total fixed charges 9,819 9,408 28,731 29,789
----- ----- ------ ------
Earnings, as adjusted $ 43,813 $ 32,182 $ 161,166 $ 98,172
====== ====== ======= ======
Ratio of earnings to fixed charges 4.46 3.42 (2) 5.61 3.30 (2)
==== ==== ==== ====
(1) Net income for the three and nine months ended September 30, 1993, reflects a reduction
of approximately $6.8 million and $28.5 million, respectively, resulting from the portion
of the Sprint/Centel merger and integration costs attributable to the Company. In the
absence of recognition of such costs, net income would have been $21.6 million for the
three months period and $74.5 million for the nine month period.
(2) In the absence of the company's recognition of $53 million of nonrecurring charges related
to the Sprint/Centel merger, the ratio of earnings to fixed charges would have been 4.60
for the three months ended and 4.83 for the nine months ended September 30, 1993.
NOTE: The above ratios have been computed by dividing fixed charges into the sum
of (a) income before extraordinary item less capitalized interest included in income,
(b) income taxes, and (c) fixed charges. Fixed charges consist of interest on all
indebtedness (including amortization of debt issuance expenses) and the interest
factor of operating rents.
-14-
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000037664
<NAME> UNITED TELEPHONE
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1994
<CASH> 3,493
<SECURITIES> 0
<RECEIVABLES> 137,915
<ALLOWANCES> 3,043
<INVENTORY> 27,403
<CURRENT-ASSETS> 186,022
<PP&E> 2,468,508
<DEPRECIATION> 1,061,318
<TOTAL-ASSETS> 1,642,682
<CURRENT-LIABILITIES> 286,689
<BONDS> 389,217
<COMMON> 16,250
1,979
0
<OTHER-SE> 688,762
<TOTAL-LIABILITY-AND-EQUITY> 1,642,682
<SALES> 0
<TOTAL-REVENUES> 636,154
<CGS> 0
<TOTAL-COSTS> 376,046
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 26,274
<INCOME-PRETAX> 151,273
<INCOME-TAX> 48,289
<INCOME-CONTINUING> 84,612
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 84,612
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
