SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDED
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) November 1,
1993
. . . . . . .
. . .
GTE SOUTH INCORPORATED
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . .
(Exact name of registrant as specified in its charter)
Virginia 2-36292 56-
0656680
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . .
(State or other (Commission (IRS
Employer
jurisdiction of File Number)
Identification No.)
incorporation)
One Tampa City Center, Tampa, Florida 33602
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . .
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 813-224-
4011
. . . .
. . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . .
(Former name or former address, if changed since last
report)
GTE SOUTH INCORPORATED
FORM 8-K
ITEM OF INFORMATION
Item 2. Acquisition or Disposition of Assets
On November 1, 1993, GTE South Incorporated (the Company) in a
series of transactions (the ALLTEL transaction) exchanged its
telephone plant in service, materials and supplies and customers
(representing 244,000 access lines) in the state of Georgia for
similar assets (including 38,000 access lines) in ALLTEL
Corporation's (ALLTEL) Illinois operations and $445 million in
cash.
This transaction was accounted for as a sale. The net sales
proceeds exceeded the book value of assets and liabilities sold
and therefore, a gain was recognized on the transaction.
On December 31, 1993, the Company sold its telephone plant in
service, materials and supplies and customers (representing
123,000 access lines) in the states of West Virginia and
Tennessee to Citizens Utilities Company for $291 million in cash
(the Citizens transaction). This transaction was accounted for
as a sale. The net sales proceeds exceeded book value and
therefore, a gain was recognized on the transaction.
Item 7 includes the (unaudited) Pro Forma Condensed Consolidating
Balance Sheet as of September 30, 1993 and Income Statement for
the nine-month period ended September 30, 1993 and the Pro Forma
Condensed Consolidating Statement of Income for the year ended
December 31, 1992. The income statements show the pro forma
effects of the ALLTEL and Citizens transactions as if the
transactions had taken place as of the beginning of the period.
The balance sheet shows the pro forma effects as if the
transactions took place at the balance sheet date.
<TABLE>
Item 7. Financial Statements and Exhibits
PRO FORMA CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (UNAUDITED)
ASSETS
As of September 30, 1993
(Thousands of Dollars)
<CAPTION>
ADJUSTMENTS
GTE ALLTEL CITIZENS PRO FORMA
SOUTH TRANSACTION TRANSACTION CORPORATION
CURRENT ASSETS:
<S> <C> <C> <C> <C>
Cash $ 7,004 $ 445,500 $ 291,183 $ 743,687
Receivables, net 196,967 (8,063) (19,108) 169,796
Materials and supplies,
at average cost 34,967 (5,090) (2,331) 27,546
Property held for sale 630,037 (408,797) (221,240) --
Prepayments and other 7,896 -- -- 7,896
Total current assets 876,871 23,550 48,504 948,925
NET PROPERTY, PLANT
AND EQUIPMENT 1,399,837 70,000 -- 1,469,837
OTHER ASSETS 67,331 -- -- 67,331
TOTAL ASSETS $ 2,344,039 $ 93,550 $ 48,504 $ 2,486,093
</TABLE>
<TABLE>
PRO FORMA CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (UNAUDITED)
LIABILITIES AND SHAREHOLDERS' EQUITY
As of September 30, 1993
(Thousands of Dollars)
<CAPTION>
ADJUSTMENTS
GTE ALLTEL CITIZENS PRO FORMA
SOUTH TRANSACTION TRANSACTION CORPORATION
<S> <C> <C> <C> <C>
CURRENT LIABILITIES:
Short-term debt, including
current maturities $ 7,974 $ (361) $ (106) $ 7,507
Long-term debt to be retired 102,900 -- --
102,900
Accounts payable 72,867 -- -- 72,867
Accrued taxes 164,785 27,724 15,068 207,577
Accrued payroll and
vacations 28,648 -- -- 28,648
Accrued dividends 21,358 -- -- 21,358
Accrued interest 16,245 -- -- 16,245
Other 45,182 (1,277) (2,946) 40,959
Total current liabilities 459,959 26,086 12,016
498,061
LONG-TERM DEBT 656,799 -- -- 656,799
DEFERRED CREDITS, primarily
deferred income taxes and
investment tax credits 284,152 57,284 35,015 376,451
PREFERRED STOCK, subject to
mandatory redemption 3,225 -- -- 3,225
SHAREHOLDERS' EQUITY:
Preferred stock 412 -- -- 412
Common stock 473,400 -- -- 473,400
Other capital 1,187 -- -- 1,187
Reinvested earnings 464,905 10,180(a) 1,473(a) 476,558
Total shareholders' equity 939,904 10,180 1,473
951,557
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 2,344,039 $ 93,550 $ 48,504 $ 2,486,093
<FN>
(a) Represents the after-tax gain recognized on the transaction.
</TABLE>
<TABLE>
PRO FORMA CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (UNAUDITED)
PRO FORMA CONSOLIDATING STATEMENTS OF INCOME
Nine Months Ended September 30, 1993
(Thousands of Dollars)
<CAPTION>
ADJUSTMENTS
GTE ALLTEL CITIZENS PRO FORMA
SOUTH TRANSACTION TRANSACTION CORPORATION
<S> <C> <C> <C> <C>
Operating revenues:
Local network services $ 291,043 $ (47,857) $ (30,189) $ 212,997
Network access services 301,186 (59,054) (30,093) 212,037
Long distance services 23,659 -- (9,859) 13,802
Equipment sales and services 54,081 (6,680) (4,275)
43,126
Other 62,516 (5,786) (1,674) 55,056
732,485 (119,377) (76,090) 537,018
Operating expenses:
Cost of sales and services 155,384 (26,219) (15,551)
113,614
Depreciation and
amortization 159,364 (28,910) (17,444) 113,010
Marketing, selling, general
and administrative 230,480 (33,793) (23,776) 172,911
545,228 (88,922) (56,771) 399,535
Net operating income 187,257 (30,455) (19,319) 137,483
Other (income) deductions:
Interest expense 52,208 822 -- 53,030
Other income-net 211 (28) 81 264
Income before income taxes 134,838 (31,249) (19,400) 84,189
Income taxes 56,728 (10,581) (8,356) 37,791
Net income $ 78,110 $ (20,668) $ (11,044) $ 46,398
</TABLE>
<TABLE>
PRO FORMA CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (UNAUDITED)
PRO FORMA CONSOLIDATING STATEMENTS OF INCOME
Year Ended December 31, 1992
(Thousands of Dollars)
<CAPTION>
ADJUSTMENTS
GTE ALLTEL CITIZENS PRO FORMA
SOUTH TRANSACTION TRANSACTION CORPORATION
<S> <C> <C> <C> <C>
Operating revenues:
Local network services $ 371,535 $ (60,377) $ (39,559) $ 271,599
Network access services 412,604 (78,128) (42,129) 292,347
Long distance services 47,947 -- (11,765) 36,182
Equipment sales and services 79,431 (7,997) (4,824) 66,610
Other 63,451 (7,709) (2,071) 53,671
974,968 (154,211) (100,348) 720,409
Operating expenses:
Cost of sales and services 204,825 (32,565) (25,367) 146,893
Depreciation and
amortization 206,905 (38,863) (19,617) 148,425
Marketing, selling, general
and administrative 278,666 (43,124) (29,405) 206,137
690,396 (114,552) (74,389) 501,455
Net operating income 284,572 (39,659) (25,959) 218,954
Other (income) deductions:
Interest expense 67,778 806 -- 68,584
Other income-net (1,711) 563 254 (894)
Income before income taxes 218,505 (41,028) (26,213) 151,264
Income taxes 81,251 (15,145) (10,020) 56,086
Net income $ 137,254 $ (25,883) $ (16,193) $ 95,178
</TABLE>
[TEXT]
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.
GTE SOUTH
INCORPORATED
(Registrant)
Date: January 13, 1994 WILLIAM M. EDWARDS, III
WILLIAM M.
EDWARDS, III
Controller
(Chief Accounting
Officer)
