UNITED TELEPHONE CO OF FLORIDA/NEW
10-Q, 1996-05-14
TELEPHONE COMMUNICATIONS (NO RADIOTELEPHONE)
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                                  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  March 31, 1996
                                          ---------------
                             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)

This registrant  meets the conditions set forth in General  Instruction  H(1)(a)
and (b) of Form  10-Q  and is  therefore  filing  this  Form  with  the  reduced
disclosure format.

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>


                       UNITED TELEPHONE COMPANY OF FLORIDA
                                    FORM 10-Q
                                      INDEX




Part I - Financial Information                                                                                 Page
<S>                                                                                                            <C>    

Item 1.
     Consolidated Balance Sheets as of March 31, 1996 and December 31, 1995.....................................  1

     Consolidated Statements of Income for the Three Months Ended
         March 31, 1996 and 1995 ...............................................................................  3

     Consolidated Statements of Cash Flows for the Three Months Ended
         March 31, 1996 and 1995 ...............................................................................  4

     Condensed Notes to Consolidated Financial Statements.......................................................  5

Item 2.
     Management's Discussion and Analysis of Financial Condition and
         Results of Operations..................................................................................  7


Part II - Other Information


     Item 1. Legal Proceedings...................................................................................12

     Item 2. Changes in Securities...............................................................................12

     Item 3. Defaults Upon Senior Securities.....................................................................12

     Item 4. Submission of Matters to a Vote of Security Holders.................................................12

     Item 5. Other Information...................................................................................12

     Item 6. Exhibits and Reports on Form 8-K....................................................................12

     Signature...................................................................................................13

</TABLE>

<PAGE>



<TABLE>
                                                                   PART I.
                                                                   Item 1.
                      UNITED TELEPHONE COMPANY OF FLORIDA
                          CONSOLIDATED BALANCE SHEETS
                                 (In Thousands)
<CAPTION>




                                                             March 31,          December 31,
        ASSETS                                                 1996                 1995
                                                           ----------           ----------
<S>                                                          <C>                 <C>    
                                                          (Unaudited)
CURRENT ASSETS
     Cash                                            $         3,788      $       9,267
     Receivables:
          Interexchange carriers                              42,806             38,278
          Customers and other                                 78,733             81,404
          Unbilled toll                                       10,506             19,197
          Affiliated companies                                42,208             24,677
          Allowance for uncollectible accounts                (3,304)            (3,731)
     Inventories                                              28,253             26,938
     Prepayments                                                 203              2,387
     Deferred income taxes                                     7,394              9,506
                                                           ----------           ----------  
                                                             210,587            207,923


PROPERTY, PLANT AND EQUIPMENT
     Land and buildings                                      155,775            155,794
     Telephone network equipment and outside plant         2,316,309          2,274,640
     Other                                                   112,329            135,833
     Construction in progress                                 55,528             54,863
                                                          ----------            ---------
                                                           2,639,941          2,621,130
     Less accumulated depreciation                         1,448,776          1,420,212
                                                          ----------            ---------
                                                           1,191,165          1,200,918



DEFERRED CHARGES AND OTHER ASSETS                             41,295             35,752









                                                      $   1,443,047       $   1,444,593
                                                      =============       =============
</TABLE>

                              1
  
<PAGE>
                                                                    PART I.
                                                                    Item 1.


<TABLE>

                                                             March 31,         December 31,
LIABILITIES AND STOCKHOLDER'S EQUITY                           1996               1995
                                                           ------------         ------------
<S>                                                        <C>                  <C>
                                                                (Unaudited)
CURRENT LIABILITIES
     Outstanding checks in excess of cash balances     $       7,705      $       3,383
     Commercial paper                                         10,981             29,658
     Current maturities of long-term debt                      2,061              2,034
     Accounts payable:
          Interexchange carriers                              36,708             53,069
          Affiliated companies                                35,039             23,665
          Other                                               16,440             36,242
     Advance billings and customer deposits                   23,537             22,651
     Accrued vacation pay                                     17,154             16,159
     Accrued interest                                          7,236             11,556
     Accrued taxes                                            37,898              7,146
     Other                                                    19,606             22,308
                                                           ------------         ------------  
                                                             214,365            227,871

LONG-TERM DEBT                                               437,291            437,733


DEFERRED CREDITS AND OTHER LIABILITIES
     Deferred income taxes                                   106,974            109,991
     Deferred investment tax credits                           8,031              8,816
     Postretirement and other benefit obligations             62,795             60,155
     Other                                                    15,029             14,383
                                                           ------------         ------------  
                                                             192,829            193,345


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                          166,583            166,583
     Retained earnings                                       415,729            402,811
                                                           ------------         ------------
                                                             598,562            585,644

                                                       $   1,443,047        $   1,444,593
                                                           ============         ============
</TABLE>





     See Accompanying Condensed Notes to Consolidated Financial Statements.

                                        2
<PAGE>

<TABLE>

                                                                   PART I.
                                                                   Item 1.
                      UNITED TELEPHONE COMPANY OF FLORIDA
                       CONSOLIDATED STATEMENTS OF INCOME
                                 (In Thousands)

<CAPTION>


                                                 Three Months Ended
                                                     March 31,
                                        ----------------------------------
                                            1996                   1995
                                        ------------          ------------
<S>                                     <C>                   <C>    
                                                    (Unaudited)
OPERATING REVENUES
     Local service                       $     98,026         $     89,155
     Network access service                    95,860               83,691
     Long distance service                     18,410               20,883
     Miscellaneous                             35,948               33,460
                                         ------------         ------------
                                              248,244              227,189

OPERATING EXPENSES
     Plant expense                             57,237               59,689
     Depreciation                              48,285               48,337
     Customer operations                       32,884               31,445
     Corporate operations                      21,084               19,882
     Other operating expenses                   6,255                6,692
     Taxes:
         Federal income:
             Current                           23,442               20,866
             Deferred                            (700)              (5,105)
             Deferred investment tax credits     (785)                (871)
         State, local and miscellaneous        10,144                8,930
                                         ------------         ------------
                                              197,846              189,865
                                         ------------         ------------

OPERATING INCOME                               50,398               37,324

INTEREST CHARGES
     Interest on long-term debt                 8,555                8,336
     Interest on short-term debt                  109                  521
     Other interest                               817                  825
                                         ------------         ------------
                                                9,481                9,682

OTHER INCOME (EXPENSE)
     Interest charged to construction            (179)                   -
     Interest income                              130                   16
                                         ------------         ------------
                                                  (49)                  16
                                         ------------         ------------

NET INCOME                               $     40,868         $     27,658
                                         ============         ============    


</TABLE>




     See Accompanying Condensed Notes to Consolidated Financial Statements.

                                        3

<PAGE>
<TABLE>
     
                                                                      PART I.
                                                                      Item 1.
                      UNITED TELEPHONE COMPANY OF FLORIDA
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In Thousands)

<CAPTION>

                                                              Three Months Ended
                                                                    March 31,
                                                              1996             1995
                                                          -----------    ------------
<S>                                                       <C>            <C>    
                                                                  (Unaudited)
OPERATING ACTIVITIES
     Net income                                             $  40,868       $  27,658
     Adjustments to reconcile net income to net cash
          provided by operating activities:
            Depreciation                                       48,285          48,337
            Deferred income taxes and investment
                tax credits                                    (1,690)         (6,699)
     Changes in operating assets and liabilities:
          Receivables, net                                    (11,124)        (10,593)
          Inventories                                          (1,315)          1,852
          Prepayments                                           2,184           1,210
          Accounts payable, accrued expenses and
             other current liabilities                          5,144          16,732
          Noncurrent assets and liabilities, net               (2,911)          2,394
                                                          ------------   ------------
NET CASH PROVIDED BY OPERATING ACTIVITIES                      79,441          80,891




INVESTING ACTIVITIES
     Capital expenditures                                    (39,632)        (45,110)
     Net salvage from plant and equipment retired              1,829             291
                                                         ------------   ------------
NET CASH USED BY INVESTING ACTIVITIES                        (37,803)        (44,819)




FINANCING ACTIVITIES
     Proceeds from long-term borrowings                           -           68,576
     Principal payments and retirements of long-term debt       (490)         (2,591)
     Decrease in short-term borrowings                       (18,677)        (79,537)
     Dividends paid                                          (27,950)        (29,274)
     Decrease to unamortized debt expense                         -              280
                                                        ------------    ------------
NET CASH USED BY FINANCING ACTIVITIES                        (47,117)        (42,546)


DECREASE IN CASH                                              (5,479)         (6,474)


CASH AT BEGINNING OF PERIOD                                    9,267           9,473
                                                        ------------    ------------    

CASH AT END OF PERIOD                                      $   3,788       $   2,999
                                                        ============    ============
</TABLE>



     See Accompanying Condensed Notes to Consolidated Financial Statements.

                                        4
<PAGE>


                                                                         PART I.
                                                                         Item 1.
                       UNITED TELEPHONE COMPANY OF FLORIDA
              CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 1996
                                   (UNAUDITED)


The information  contained in this Form 10-Q for the three month interim periods
ended March 31, 1996 and 1995 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 accruals
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  have been  condensed or omitted.  The results of operations  for the
three  months  ended  March  31,  1996  are not  necessarily  indicative  of the
operating results that may be expected for the year ended December 31, 1996.

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 previously reported for prior periods have been reclassified
    to  conform  to  the  current  period   presentation  in  the   accompanying
    consolidated  financial statements.  Such reclassifications had no effect on
    the results of operations or stockholder's equity as previously reported.

    The  preparation  of  financial  statements  in  conformity  with  generally
    accepted  accounting  principles  requires  management to make estimates and
    assumptions  that affect the reported  amounts of assets and liabilities and
    disclosure of contingent assets and liabilities at the date of the financial
    statements,  and the reported  amounts of revenues  and expenses  during the
    reporting period. Actual results could differ from those estimates.

2.  EARNINGS PER SHARE

    Earnings per share  information  has been  omitted  because the Company is a
    wholly-owned subsidiary of Sprint Corporation (Sprint).

                                       5
<PAGE>


                                                                         PART I.
                                                                         Item 1

                       UNITED TELEPHONE COMPANY OF FLORIDA
              CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 1996
                                   (UNAUDITED)


3.  SUPPLEMENTAL CASH FLOWS INFORMATION

    The following are the supplemental disclosures required for the Consolidated
Statements of Cash Flows:



                                                         Three Months Ended
                                                               March 31,
                                                     -------------------------
                                                        1996            1995
                                                     ---------       --------

                                                           (In Thousands)
                    Cash paid for:

                     Interest, net of amounts
                       capitalized                     $13,914           $11,216
                     Income taxes                      $ 1,563             $ 407

















                                       6

<PAGE>

                                                                         PART I.
                                                                         Item 2.

                       UNITED TELEPHONE COMPANY OF FLORIDA
                                    FORM 10-Q
                                 MARCH 31, 1996


Item 2.  Management's Discussion and Analysis of Financial Condition and
- ------   ---------------------------------------------------------------
            Results of Operations
            --------------------- 

Regulatory Issues
- -----------------

In June 1994,  the Company  entered into a stipulation  with the Florida  Public
Service  Commission  (FPSC) whereby 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 the maximum  allowed return reverted to 13.5
percent.

In November  1994, in compliance  with FPSC  regulations,  the Company filed its
triennial  depreciation study seeking an increase in annual depreciation expense
of approximately  $16.3 million effective January 1, 1995. The Company requested
shorter service lives to recognize  obsolescence caused by emerging technologies
required  to meet  customer  demands  for  more  sophisticated  voice  and  data
facilities. On January 17, 1995, the FPSC allowed the Company to implement, on a
preliminary basis, the proposed rates, reduced by a one-time depreciation charge
of $3.2 million ($2.4 million intrastate) recorded in 1994 which served to bring
the Company's 1994 intrastate  return on equity below the 13.0 percent cap noted
above.  On March 1, 1995,  the Office of Public  Counsel  filed a petition for a
hearing in protest of the FPSC's  approval  of the early  implementation  of the
depreciation rates.

On December 1, 1994,  the FPSC  approved the Company's  proposal for  intrastate
rate  reductions  with an effective  date of January 1, 1995. The total proposed
revenue  reduction  was $10.6  million  in 1995,  $9.0  million  of which was in
switched access charge reductions and the remainder in cellular  interconnection
usage rates and intraLATA toll rates.

In September 1995, the FPSC approved an increase in annual depreciation  expense
of $18.9 million.  The new depreciation rates were effective January 1, 1995 and
had been  substantially  recognized under the preliminary order discussed above.
In addition,  the FPSC determined that the Company had exceeded its 13.0 percent
cap by $1.5 million including interest for 1994 and required that this amount be
included in the determination of the Company's 1995 intrastate return on equity.
In  recognition  of this  recent  FPSC  order  the $3.2  million  of  additional
depreciation  recorded in December,  1994,  due to the  preliminary  order,  was
reversed in September, 1995.



                                       7
<PAGE>

                                                                         PART I.
                                                                         Item 2.

                       UNITED TELEPHONE COMPANY OF FLORIDA
                                    FORM 10-Q
                                 MARCH 31, 1996


Regulatory Issues  (Continued)
- -----------------

On July 1, 1995, telecommunications reform legislation became law in Florida. In
summary,  this legislation allows competition in the local telephone marketplace
beginning  January 1, 1996, while replacing rate of return regulation with price
regulation.  While the  Company  cannot  predict  the  ultimate  effects of this
legislation  on its future  operations,  it does not  expect a material  adverse
impact in the near term.

In February 1996, the  Telecommunications  Act of 1996 (the Act) was signed into
law.  The  purpose  of the  Act is to  promote  competition  in all  aspects  of
telecommunications. The Act requires telecommunications carriers to interconnect
with other  carriers  and to provide for  resale,  number  portability,  dialing
parity,  access  to  rights-of-way  and  compensation  for  reciprocal  traffic.
Additionally,  incumbent  local  telephone  companies  are  required  to provide
nondiscriminatory  unbundled  access,  resale at  wholesale  rates and notice of
changes that would affect  interoperability of facilities and networks.  The FCC
is to adopt mechanisms to ensure that essential  telecommunications services are
affordable.

The Act also provides that regional Bell Operating Companies (RBOCs) may provide
long  distance  service  that is  out-of-region  or  incidental  to  audio/video
programming,  Internet  for  schools,  mobile  services,  information  or  alarm
services  and  telecommunications  signaling.  In order  for an RBOC to  provide
in-region  long  distance  service,  the Act  requires the RBOC to comply with a
comprehensive  competitive checklist and expands the role of the U.S. Department
of Justice in the FCC's  determination  of whether the entry of an RBOC into the
competitive long distance market is in the public interest.  Additionally, there
must be a real  facilities-based  competitor for  residential and business local
telephone  service (or the failure of  potential  providers  to request  access)
prior to an RBOC providing  in-region long distance service.  RBOCs must provide
long distance  services through a separate  subsidiary for at least three years.
Until the RBOCs are allowed into long distance or three years have passed,  long
distance  carriers with more than five percent of the nation's  access lines may
not jointly  market  RBOC resold  local  telephone  service,  and states may not
require RBOCs to provide intraLATA dialing parity.

Telecommunications  companies  may also  provide  video  programming  and  cable
operators  may  provide  telephone  service in the same  service  area.  The Act
prohibits  telecommunications  carriers and cable  operators from acquiring more
than 10 percent of each other, except in rural and other specified areas.

The impact of the Act on the  Company is unknown  because a number of  important
implementation  issues (such as the nature and extent of continued subsidies for
local rates) still need to be decided by state or federal  regulators.  However,
the  Company's  historical  prices and  market  share are likely to decline as a
result of increased local competition.

                                       8

<PAGE>

                                                                         PART I.
                                                                         Item 2.

                       UNITED TELEPHONE COMPANY OF FLORIDA
                                    FORM 10-Q
                                 MARCH 31, 1996


Liquidity and Capital Resources
- -------------------------------

Net cash provided by operating  activities  decreased  slightly to $79.4 million
for the three  months ended March 31,  1996,  compared to $79.7  million for the
same period in 1995. The decrease in net cash generated is due to increased uses
of working  capital,  primarily  related to accounts  payable,  mostly offset by
improved operating results.

Cash used by  investing  activities  decreased  to $37.8  million  for the three
months  ended March 31, 1996,  compared to $44.8  million for the same period in
1995.  This is due to a decrease in additions to property,  plant and equipment.
The Company's planned construction  expenditures for modernization and growth in
1996 are approximately $202.0 million.

Cash used by  financing  activities  increased  to $47.1  million  for the three
months  ended March 31, 1996,  compared to $41.4  million for the same period in
1995. In January 1995, the Company issued $70 million of 8.375 percent Series HH
bonds to reduce commercial paper  outstanding.  At March 31, 1996, the Company's
lines of credit totaled $100.0 million, of which $100.0 million was unused.


Financial Condition
- -------------------

The Company's  ratio of common equity to total capital was 57.1 percent at March
31, 1996,  compared to 55.5  percent at December  31, 1995,  and 59.4 percent at
March 31, 1995.  The  short-term  debt to total capital ratio was 1.0 percent at
March 31, 1996, compared to 2.8 percent at December 31, 1995, and 2.6 percent at
March 31, 1995.

The  Company's  consolidated  assets  totaled  $1.443  billion at March 31, 1996
compared to $1.445  billion at December 31, 1995.  During that period,  accounts
receivable  increased  $11.1  million  due  primarily  to the  timing  of  sales
activities  and cash  collections.  Accounts  payable  decreased  $24.8  million
generally due to the timing of cash  disbursements.  Commercial  paper and notes
payable  decreased $18.7 million  primarily due to increased  borrowings at year
end 1995 due to dividend payments.  Accrued taxes increased $30.8 million due to
the timing of payments.






                                       9
<PAGE>


                                                                         PART I.
                                                                         Item 2.

                       UNITED TELEPHONE COMPANY OF FLORIDA
                                    FORM 10-Q
                                 MARCH 31, 1996


Results of Operations
- ---------------------

The  Company  adopted  accounting  principles  for  a  competitive   marketplace
effective  December 31, 1995 and  discontinued  applying  Statement of Financial
Accounting Standards (SFAS) No. 71, "Accounting for the Effects of Certain Types
of Regulation." The primary effects of the Company's discontinued application of
SFAS No. 71 were that certain accumulated  depreciation balances were increased,
plant asset lives were  shortened from  regulator-prescribed  lives to estimated
economic  lives,  switch  software costs which had  previously  been expensed as
incurred are now being capitalized and amortized, and the effects of any actions
of regulators  that had been  recognized as assets and  liabilities  pursuant to
SFAS No. 71 but which would not have been  recognized as such by  enterprises in
general were eliminated from the consolidated  balance sheet. It is not expected
that the discontinued  application of SFAS No. 71 will have a significant impact
on 1996  operating  results.

As discussed in "Regulatory  Issues," effective January 1, 1996, Florida changed
from rate of return regulation to price regulation.  This change is resulting in
the recognition of seasonal trends in the Company's revenues.

Local service revenues are derived from providing  telephone  exchange services.
Local service  revenues  increased $8.9 million for the three months ended March
31, 1996,  primarily due to access line growth,  increased  equipment leases and
increases  in demand for custom  calling  features  and inside wire  maintenance
contracts.

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  $12.2  million for the three
months ended March 31, 1996. Access rate reductions that went into effect August
1, 1995 were more than offset in the three month period by increased  minutes of
use. In addition,  the adoption of the 5.3 percent productivity rate for the FCC
Interstate price cap plan, effective August, 1995, eliminated the rate of return
ceiling on interstate  earnings,  beginning July, 1995, and therefore  increased
the retention of revenue.

Long distance  revenues are derived  principally  from  providing  long distance
services within designated areas.  These revenues decreased $2.5 million for the
three months ended March 31, 1996,  primarily  due to increased  competition  in
this market and the  conversion of certain  short-haul  toll routes to flat rate
message  plans.  These flat rate revenue  streams are included in local  service
revenue.


                                       10
<PAGE>

                                                                         PART I.
                                                                         Item 2.

                       UNITED TELEPHONE COMPANY OF FLORIDA
                                    FORM 10-Q
                                 MARCH 31, 1996


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 increase in miscellaneous  revenues of $2.5 million for
the three  months  ended  March  31,  1996 was  primarily  due to  increases  in
directory revenues.

Plant expenses  decreased $2.5 million for the three months ended March 31, 1996
from the  comparable  period  in 1995.  In  conjunction  with  the  adoption  of
accounting principles for a competitive marketplace, switch software costs which
had  previously  been  expensed  as  incurred  are  now  being  capitalized  and
amortized,  resulting in a decrease in plant expense.  In addition,  the expense
decrease was also attributed to decreased movement and repairs of cable and wire
which was partially offset by increased computer expenses.

Depreciation  expense for the three months  ended March 31, 1996 was  consistent
with that for the three  months  ended March 31, 1995.  In  conjunction with the
December  31,  1995  adoption  of  accounting   principles   for  a  competitive
marketplace,  an adjustment  was made to increase the  accumulated  depreciation
balance.  This adjustment resulted in certain assets becoming fully depreciated,
thus  reducing  depreciation  expense in the three  months ended March 31, 1996.
This  reduction  was offset by amortization of switch software costs   which are
now being  capitalized.  Throughout  1996,  this  amortization  is  expected  to
substantially  offset the related  decrease in plant  expense  discussed  above.
Accordingly,  the annual impact on operations  resulting from the capitalization
of switch software is not expected to be significant.  Additionally,  the impact
of shortened asset lives resulting from the discontinued application of SFAS No.
71 is not expected to have a significant effect on 1996 operating results.

Customer  operations  expense  increased $1.4 million for the three months ended
March 31, 1996,  primarily due to increases in expenses associated with expanded
hours of  business  office  operations,  increases  in the  number  of  customer
contacts and increased directory expenses.

Corporate  operations  expense increased $1.2 million for the three months ended
March 31,  1996,  due to an  increase  in general  and  administrative  services
provided by Sprint.


                                       11

<PAGE>



                       UNITED TELEPHONE COMPANY OF FLORIDA
                                    FORM 10-Q
                          QUARTER ENDED MARCH 31, 1996

                                OTHER INFORMATION


Item 1.  Legal Proceedings

                  There were no reportable events during the quarter ended March
                    31, 1996.

Item 2. Changes in Securities

                  Omitted under the provisions of General Instruction H.

Item 3. Defaults Upon Senior Securities

                  Omitted under the provisions of General Instruction H.

Item 4. Submission of Matters to a Vote of Security Holders

                  Omitted under the provisions of General Instruction H.

Item 5.  Other Information

                  There were no reportable events during the quarter ended March
                    31, 1996.

Item 6.  Exhibits and Reports on Form 8-K

                  No reports on Form 8-K were  required  to be filed  during the
                    quarter ended March 31, 1996.




                                       12

<PAGE>



                       UNITED TELEPHONE COMPANY OF FLORIDA
                                    FORM 10-Q
                          QUARTER ENDED MARCH 31, 1996

                                    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 May 14, 1996                         By /s/ J.J. Beling
     ------------                          ----------------------------------
                                          J. J. Beling
                                          Controller & Chief Accounting Officer

                                       13

<TABLE> <S> <C>


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<CIK>                         0000037664
<NAME>                        UNITED TELEPHONE COMPANY OF FLORIDA
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<S>                             <C>
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                          0
                                    0
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</TABLE>


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