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Previous: VARIABLE SEPARATE ACCOUNT OF ANCHOR NATIONAL LIFE INSUR CO, 485BPOS, 1996-01-31 |
Next: UCI MEDICAL AFFILIATES INC, 8-K, 1996-01-31 |
4
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: January 22, 1996
BELLSOUTH CORPORATION
(Exact name of registrant as specified in its charter)
Georgia 1-8607 58-1533433
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
1155 Peachtree Street, N. E., Atlanta, Georgia 30309-3610
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code(404) 249-2000
Item 5. Other Events
BellSouth Corporation reported that earnings per share (EPS)
showed a loss of 16 cents in the final quarter of 1995 including
special charges for previously announced workforce reductions and
debt refinancings. EPS excluding special items increased 9.6
percent in the fourth quarter of 1995, reaching 57 cents.
In the fourth quarter of the prior year, EPS was 56 cents
including a gain of 4 cents.
On a reported basis, the fourth quarter showed a net loss of $161
million in 1995, versus net income of $558 million in 1994. Net
income excluding special items was $564 million, up 8.9 percent
compared with the same quarter of 1994.
BellSouth's revenue grew in the fourth quarter. Quarterly
revenues of $4.76 billion were up 8.4 percent compared with the
same quarter of 1994. Revenues in 1995 reached $17.9 billion,
increasing 6.2 percent from the previous year.
BellSouth added 302,900 cellular customers in the U.S. during the
fourth quarter, and its annual increase in access lines exceeded
900,000 in 1995.
Sales of Caller ID increased 124 percent in 1995, small business
access lines jumped 9.0 percent, and large business lines were up
6.7 percent for the year.
The number of BellSouth cellular customers in the U.S. grew 32
percent in 1995, and the company ended the year with 2,847,400
customers. BellSouth's international cellular markets grew 81
percent, and the company served 654,900 customers at December 31.
BellSouth's access lines in the U.S. grew a 4.5 percent rate
during 1995. The company surpassed 21 million access lines with
an annual increase of 913,100. Second lines increased 21
percent, and accounted for nearly half of all new residential
hook-ups in 1995. Second lines total nearly 1.3 million.
BellSouth markets additional lines to satisfy the growing
customer demand for access to the Internet, telecommuting and
home offices, in-home fax machines, and children's phones.
Operating expenses increased 8.8 percent in the fourth quarter,
reflecting the short-run costs of promotions which generated the
high volumes of new business. Expenses also reflected the impact
of two one-time events - BellSouth's recent brand name change,
and service restoration after Hurricane Opal in October. Cash
operating expenses in BellSouth's telephone operations increased
1.5 percent in 1995.
In addition to the 1995 workforce and refinancing charges,
reported earnings for the year reflected a previously announced
charge of $2.73 per share related to BellSouth discontinuing
Statement of Financial Accounting Standards No.71. On a reported
basis, EPS was a loss of $1.24 per share in 1995. In 1994,
BellSouth reported earnings per share of $2.18. Excluding special
items in both periods, BellSouth's EPS for the year was $2.24 in
1995, compared with $2.07 in 1994. Net income excluding special
items increased 8.5 percent in 1995, to $2.23 billion. On a
reported basis, net income was a loss of $1.23 billion. Reported
net income in 1994 was $2.16 billion.
BellSouth Corporation's Board of Directors announced that John L.
Clendenin, chairman of the board, president and chief executive
officer of BellSouth, will retire at the end of 1996 and that
F. Duane Ackerman, currently vice chairman and chief operating
officer of the corporation, will succeed him as CEO and president
of the company. Clendenin will remain as a non-employee chairman
through 1997.
PRELIMINARY
JANUARY 22, 1996
BELLSOUTH CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In Millions, Except Per Share Amounts)
For the Three For the Year
Months Ended Ended
December 31, December 31,
1995 1994 1995 1994
Unaudited Unaudited
Operating Revenues:
Network and related services
Local service $1,875 $1,746 $ 7,294 $6,863
Interstate access 869 789 3,275 3,127
Intrastate access 201 221 884 908
Toll 242 291 1,009 1,190
Wireless communications 704 589 2,592 2,067
Directory advertising and 569 451 1,677 1,556
publishing
Other services 305 308 1,155 1,134
Total Operating Revenues 4,765 4,395 17,886 16,845
Operating Expenses:
Cost of services and
products 1,654 1,537 6,184 6,043
Depreciation and
amortization 887 846 3,455 3,259
Selling, general and
administrative 1,099 962 3,873 3,485
Work force reduction charges
1,082 -- 1,082 --
Total Operating Expenses 4,722 3,345 14,594 12,787
Operating Income 43 1,050 3,292 4,058
Interest Expense 192 170 724 666
Other Income (Expense), net (31) (14) 20 11
Income (Loss) Before Income
Taxes and Extraordinary
Losses (180) 866 2,588 3,403
Provision for Income Taxes (81) 308 1,024 1,243
Income (Loss) Before
Extraordinary Losses (99) 558 1,564 2,160
Extraordinary Loss for
Discontinuance of Statement
of Financial Accounting
Standards No. 71, net of tax -- -- (2,718) --
Extraordinary Loss on Early
Extinguishment of Debt, net
of tax (62) -- (78) --
Net Income (Loss) $ (161) $ 558 $(1,232) $2,160
PRELIMINARY
JANUARY 22, 1996
BELLSOUTH CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Continued)
(In Millions, Except Per Share Amounts)
For the Three For the Year
Months Ended Ended
December 31, December 31,
1995 1994 1995 1994
Unaudited Unaudited
Weighted Average Common
Shares Outstanding 993 992 993 992
Dividends Declared Per
Common Share $.36 $.345 $1.41 $1.38
Earnings Per Share:
Income (Loss) Before
Extraordinary Losses $(.10) $.56 $1.57 $2.18
Extraordinary Loss for
Discontinuance of Statement
of Financial Accounting --
Standards No. 71, net of tax
-- -- (2.73)
Extraordinary Loss on Early
Extinguishment of Debt, net
of tax (.06) -- (.08) --
Earnings (Loss) Per Share $(.16) $.56 $(1.24) $2.18
PRELIMINARY
JANUARY 22, 1996
BELLSOUTH CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Millions, Except Per Share Amounts)
December 31,
1995 1994
Unaudited
ASSETS
Current Assets:
Cash and cash equivalents $1,711 $606
Temporary cash investments 71 51
Accounts receivable, net of allowance for
uncollectibles of $171 and $154 3,772 3,127
Material and supplies 430 490
Other current assets 521 454
6,505 4,728
Investments and Advances 2,418 2,532
Property, Plant and Equipment, net 21,092 25,162
Deferred Charges and Other Assets 338 535
Intangible Assets, net 1,527 1,440
Total Assets $31,880 $34,397
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Debt maturing within one year:
Debentures to be redeemed in January 1996 $ 485 $ --
Other 2,466 2,019
Accounts payable 1,724 1,378
Other current liabilities 2,715 3,101
7,390 6,498
Long-Term Debt 7,924 7,435
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 1,650 3,647
Unamortized investment tax credits 355 443
Other liabilities and deferred credits 2,736 2,006
4,741 6,096
Shareholders' Equity:
Common stock, $1 par value 1,007 503
Paid-in capital 7,619 8,064
Retained earnings 4,099 6,721
Shares held in trust (374) (336)
Guarantee of ESOP debt (526) (584)
11,825 14,368
Total Liabilities and Shareholders' Equity $31,880 $34,397
PRELIMINARY (UNAUDITED)
January 22, 1996
BELLSOUTH FINANCIAL HIGHLIGHTS
SELECTED DATA
Three Months Three Months
Ended Ended
December 31, 1995 December 31, 1994
Return to average common
equity (annualized) (5.3%) 15.7%
Return to average total
capital(annualized) (0.2%) 11.7%
Weighted average common
shares outstanding
(millions) 993 992
Earnings per share $(.16) $.56
Dividends per share $ .36 $.345
Property additions
(millions) $1,332 $969
At December 31,
1995 1994
Common shares outstanding
(millions) 994 992
Debt ratio 46.7% 39.3%
Total employees 87,571 92,121
PRELIMINARY (UNAUDITED)
January 22, 1996
BELLSOUTH FINANCIAL HIGHLIGHTS
SELECTED DATA
Year Ended Year Ended
December 31, 1995 December 31, 1994
Return to average common
equity (9.2%) 15.4%
Return to average total
capital (2.7%) 11.5%
Weighted average common
shares outstanding
(millions) 993 992
Earnings per share $(1.24) $2.18
Dividends per share $ 1.41 $1.38
Property additions
(millions) $4,092 $3,673
PRELIMINARY
JANUARY 22, 1996
BELLSOUTH TELECOMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Millions)
For the Three For the Year
Months Ended Ended
December 31, December 31,
1995 1994 1995 1994
Unaudited Unaudited
Operating Revenues:
Network and related
services
Local service $1,875 $1,746 $7,294 $6,863
Interstate access 869 789 3,275 3,127
Intrastate access 201 221 884 908
Toll 242 291 1,009 1,190
Other 592 515 2,078 1,952
Total Operating
Revenues 3,779 3,562 14,540 14,040
Operating Expenses:
Cost of services and
products 1,374 1,284 5,268 5,235
Depreciation and
amortization 779 761 3,065 2,954
Selling, general and
administrative 651 580 2,344 2,263
Work force reduction
charges 1,082 -- 1,082 --
Total Operating
Expenses 3,886 2,625 11,759 10,452
Operating Income (107) 937 2,781 3,588
Interest Expense 148 141 573 549
Other Income, net 7 5 27 18
Income (Loss) Before
Income Taxes and
Extraordinary Losses (248) 801 2,235 3,057
Provision for Income
Taxes (126) 281 818 1,105
Income (Loss) Before
Extraordinary Losses (122) 520 1,417 1,952
Extraordinary Loss for
Discontinuance of
Statement of Financial
Accounting Standards
No. 71, net of tax -- -- (2,718) --
Extraordinary Loss on
EarlyExtinguishment of
Debt,net of tax (62) -- (78) --
Net Income (Loss) $ (184) $ 520 $(1,379) $1,952
PRELIMINARY (UNAUDITED)
January 22, 1996
BELLSOUTH TELECOMMUNICATIONS FINANCIAL HIGHLIGHTS
SELECTED DATA
Three Months Ended Three Months Ended
December 31, 1995 December 31, 1994
Property additions
(millions) $959 $677
Access minutes of use
(millions):
Interstate 15,969 14,823
Intrastate 4,993 4,414
IntraLATA toll messages
(millions) 323 388
Year Ended Year Ended
December 31, 1995 December 31, 1994
Property additions
(millions) $3,218 $3,109
Access minutes of use
(millions):
Interstate 62,411 57,778
Intrastate 19,197 16,888
IntraLATA toll messages
(millions) 1,374 1,559
At December 31,
1995 1994
Debt ratio 51.9% 41.0%
Telephone employees 68,585 73,764
Network access lines in
service(thousands) 21,133 20,220
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.
BELLSOUTH CORPORATION
By: /s/RONALD M. DYKES
Ronald M. Dykes
Vice President, Chief Financial Officer
and Comptroller
January 31, 1996
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