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Previous: PUTNAM U S GOVERNMENT INCOME TRUST, DEF 14A, 1996-07-23 |
Next: T CELL SCIENCES INC, S-3, 1996-07-23 |
6
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): July 17, 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 earnings per share (EPS) of 63 cents
in the second quarter of 1996. EPS of 63 cents increased 12.5
percent compared with the second quarter a year ago, when EPS was 56
cents before extraordinary charges.
Net income of $629 million in the three months ended June 30, 1996
increased 12.9 percent compared with the second quarter of 1995,
before the extraordinary charges.
The company added 229,000 access lines, compared to 176,000 in the
second quarter of 1995. Access lines grew at an annual rate of 5.0
percent.
Other highlights of the second quarter:
* BellSouth reported total access lines of 21,721,000;
* In cellular, the company registered 100 percent-plus annual growth
in international customers; its customer count on a worldwide basis
was over 4 million for the first time. In the U.S., mobile phone
customers totaled 3,231,000 at June 30, up 31 percent from a year
earlier;
* Business access lines increased at an annual rate of 8.7 percent;
* Marketing promotions drove an increase of 34,000 additional
residential lines, which were up 20.6 percent from the same quarter
a year ago;
* BellSouth further increased market penetration of its telephone
convenience features such as MemoryCall(trademark) service and
Caller ID. MemoryCall voice mailboxes increased at an annual rate
of 21 percent, while Caller ID features increased 99 percent.
Revenue from these and other enhanced services increased 24 percent,
to more than $236 million.
BellSouth's revenues of $4.6 billion in the 1996 second quarter
increased 5.2 percent compared with the same quarter a year earlier.
Total operating expenses increased 4.2 percent. When the paging
operations sold in January 1996 are excluded, quarterly revenues
were up 7.3 percent, and total operating expenses increased 6.6
percent. In BellSouth's telephone operations, cash operating
expenses were up 2.8 percent.
PRELIMINARY
July 17, 1996
BELLSOUTH CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In Millions, Except Per Share Amounts)
(Unaudited)
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
1996 1995 1996 1995
Operating Revenues:
Network and related
services
Local service $ 2,021 $ 1,793 $ 3,951 $ 3,562
Interstate access 871 806 1,780 1,601
Intrastate access 202 227 420 453
Toll 198 266 405 547
Wireless
communications 691 623 1,316 1,223
Directory
advertising and
publishing 367 389 685 742
Other services 270 286 604 561
Total Operating
Revenues 4,620 4,390 9,161 8,689
Operating Expenses:
Cost of services
and products 1,499 1,485 2,967 2,988
Depreciation and
amortization 917 859 1,820 1,694
Selling, general
and administrative 1,016 950 2,003 1,816
Total Operating
Expenses 3,432 3,294 6,790 6,498
Operating Income 1,188 1,096 2,371 2,191
Interest Expense 174 186 354 360
Gain on Sale of
Paging Business -- -- 442 --
Other Income
(Expense), net 16 9 52 (2)
Income Before Income
Taxes and
Extraordinary
Losses 1,030 919 2,511 1,829
Provision for Income
Taxes 401 362 912 725
Income Before
Extraordinary
Losses 629 557 1,599 1,104
Extraordinary Loss
for Discontinuance
of SFAS No. 71, net
of tax -- (2,718) -- (2,718)
Extraordinary Loss
on Early
Extinguishment of
Debt, net of tax -- (16) -- (16)
Net Income (Loss) $ 629 $(2,177) $ 1,599 $(1,630)
PRELIMINARY
July 17, 1996
BELLSOUTH CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In Millions, Except Per Share Amounts)
(Unaudited)
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
1996 1995 1996 1995
Weighted Average
Common Shares
Outstanding 994 993 994 993
Dividends Declared
Per Common Share $ .36 $ .345 $ .72 $ .69
Earnings (Loss) Per
Share:
Income Before
Extraordinary
Losses $ .63 $ .56 $ 1.61 $ 1.11
Extraordinary Loss
for Discontinuance
of SFAS No. 71, net
of tax -- (2.73) -- (2.73)
Extraordinary Loss
on Early
Extinguishment of
Debt, net of tax -- (.02) -- (.02)
Earnings (Loss) Per
Share $ .63 $(2.19) $ 1.61 $(1.64)
PRELIMINARY
July 17, 1996
BELLSOUTH CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Millions, Except Per Share Amounts)
June 30, December 31,
1996 1995
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 1,169 $ 1,711
Temporary cash investments 35 71
Accounts receivable, net of
allowance for uncollectibles
of $154 and $171 3,852 3,772
Material and supplies 434 430
Other current assets 366 521
5,856 6,505
Investments and Advances 2,601 2,418
Property, Plant and Equipment:
Property, Plant and Equipment 48,372 46,869
Accumulated Depreciation 26,999 25,777
21,373 21,092
Intangible Assets, net 1,313 1,527
Deferred Charges and Other
Assets 501 338
Total Assets $ 31,644 $ 31,880
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Debt maturing within one year $ 2,047 $ 2,951
Accounts payable 1,410 1,724
Other current liabilities 2,661 2,715
6,118 7,390
Long-Term Debt 7,897 7,924
Deferred Credits and Other
Liabilities:
Accumulated deferred income
taxes 1,740 1,650
Unamortized investment tax
credits 317 355
Other liabilities and
deferred credits 2,789 2,736
4,846 4,741
Shareholders' Equity:
Common stock, $1 par value 1,009 1,007
Paid-in capital 7,691 7,619
Retained earnings 4,987 4,099
Shares held in trust (409) (374)
Guarantee of ESOP debt (495) (526)
12,783 11,825
Total Liabilities and
Shareholders' Equity $ 31,644 $ 31,880
PRELIMINARY
July 17, 1996
BELLSOUTH FINANCIAL HIGHLIGHTS
SELECTED DATA
(UNAUDITED)
Three Months Three Months
Ended Ended
June 30, June 30,
1996 1995
Weighted average common shares
outstanding (millions) 994 993
Earnings (Loss) per share $ .63 $(2.19)(a)
Dividends per share $ .36 $ .345
Return to average common
equity (annualized) 20.1% (60.6%)(b)
Return to average total
capital(annualized) 13.6% (33.0%)(c)
Property additions (millions) $1,279 $ 953
At June 30,
1996 1995
Common shares outstanding
(millions) 994 993
Debt ratio 43.6% 44.5%
Total employees 83,133 90,784
(a) Excluding the extraordinary losses, Earnings per share
were $.56.
(b) After adjusting net income and average common equity for
the impact of the extraordinary losses, Return to average
common equity was 15.0%.
(c) After adjusting net income and average total capital for
the impact of the extraordinary losses, Return to average
total capital was 11.3%.
PRELIMINARY
July 17, 1996
BELLSOUTH FINANCIAL HIGHLIGHTS
SELECTED DATA
(UNAUDITED)
Six Months Six Months
Ended Ended
June 30, June 30,
1996 1995
Weighted average common shares
outstanding (millions) 994 993
Earnings (Loss) per share $ 1.61(d) $(1.64)(a)
Dividends per share $ .72 $ .69
Return to average common
equity (annualized) 25.8% (22.6%)(b)
Return to average total
capital(annualized) 16.7% (11.0%)(c)
Property additions (millions) $2,181 $1,811
(a) Excluding the extraordinary losses, Earnings per share
were $1.11.
(b) After adjusting net income and average common equity for
the impact of the extraordinary losses, Return to average
common equity was 15.1%.
(c) After adjusting net income and average total capital for
the impact of the extraordinary losses, Return to average
total capital was 11.5%.
(d) Includes after-tax gain of $.35 per share from sale of
paging business.
PRELIMINARY
July 17, 1996
BELLSOUTH TELECOMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Millions)
(Unaudited)
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
1996 1995 1996 1995
Operating Revenues:
Local service $ 2,021 $ 1,793 $ 3,951 $ 3,562
Interstate access 871 806 1,780 1,601
Intrastate access 202 227 420 453
Toll 198 266 405 547
Other 353 503 744 993
Total Operating
Revenues 3,645 3,595 7,300 7,156
Operating Expenses:
Cost of services
and products 1,284 1,270 2,544 2,558
Depreciation and
amortization 809 765 1,607 1,511
Selling, general
and administrative 618 580 1,222 1,116
Total Operating
Expenses 2,711 2,615 5,373 5,185
Operating Income 934 980 1,927 1,971
Interest Expense 135 150 274 290
Other Income, net 6 7 17 12
Income Before Income
Taxes and
Extraordinary
Losses 805 837 1,670 1,693
Provision for Income
Taxes 295 318 621 641
Income Before
Extraordinary
Losses 510 519 1,049 1,052
Extraordinary Loss
for Discontinuance
of SFAS No. 71, net
of tax -- (2,718) -- (2,718)
Extraordinary Loss
on Early
Extinguishment of
Debt, net of tax -- (16) -- (16)
Net Income (Loss) $ 510 $(2,215) $ 1,049 $(1,682)
PRELIMINARY
July 17, 1996
BELLSOUTH TELECOMMUNICATIONS FINANCIAL HIGHLIGHTS
SELECTED DATA
(UNAUDITED)
Three Months Three Months
Ended Ended
June 30, June 30,
1996 1995
Property additions (millions) $ 960 $ 807
Access minutes of use
(millions):
Interstate 16,847 15,597
Intrastate 5,235 4,790
IntraLATA toll messages 257 352
(millions)
At June 30,
1996 1995
Debt ratio 50.1% 48.0%
Telephone employees 66,439 72,404
Network access lines in
service (thousands) 21,721 20,691
Six Months Six Months
Ended Ended
June 30, June 30,
1996 1995
Property additions (millions) $1,698 $1,502
Access minutes of use
(millions):
Interstate 33,507 30,728
Intrastate 10,353 9,319
IntraLATA toll messages 538 722
(millions)
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
Executive Vice President, Chief Financial Officer
and Comptroller
July 22, 1996
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