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Previous: NATIONAL PROPERTY INVESTORS 7, 10QSB, 1996-11-07 |
Next: FLIGHT INTERNATIONAL GROUP INC, DEF 14A, 1996-11-07 |
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):
October 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 for the third quarter 1996.
It was BellSouth's 15th consecutive quarter of improved
operating results, with EPS up 12.5 percent compared with 56
cents in the third quarter of 1995. Net income in the three
months ended September 30, 1996 was $631 million, up 12.9
percent compared with $559 million in the third quarter a
year ago.
In the past 12 months alone, BellSouth added nearly 2.5
million customers in its existing telephone, wireless and
international operations.
BellSouth added a total of 222,000 access lines in the South
during July, August and September. The annual growth rate
was 4.9 percent. Business access lines grew 8.5 percent.
So far in 1996, the company has activated 203,000 new
additional lines for residential customers. It now has 1.5
million in service, an annual growth rate of more than 23
percent. BellSouth has 21.9 million total access lines.
Value-priced convenience features such as Call Waiting and
Caller ID generated sales of about 11,000 units per day in
the past year. Caller ID features in service are up 96.5
percent in the past 12 months, to more than 3 million. Call
Waiting Deluxe, used in conjunction with Caller ID, went
from 2,300 in service a year ago to 146,600 at September 30.
Quarterly revenues from these and other enhanced services
increased 43 percent, to approximately $281 million.
With 3,333,000 domestic cellular customers at the end of the
third quarter, U.S. operations grew at an annual rate of 31
percent. In BellSouth's 11 international cellular markets,
customers more than doubled since September 1995, and the
company passed the 1 million customer milestone in July.
BellSouth's quarterly revenues of $4.8 billion increased 9.0
percent compared with the third quarter of 1995. Total
operating expenses increased 7.5 percent. When the paging
operations sold in January 1996 are excluded, quarterly
revenues increased 11.3 percent, and total operating
expenses increased 10.2 percent. In BellSouth's telephone
operations, cash operating expenses were up 5.0 percent.
BellSouth believes that normalized earnings growth could be
in the low double digits through 1997. This forward-looking
statement is based on a number of assumptions including, but
not limited to: (1) economic growth and demand for wireline
and wireless communications services continues in
BellSouth's service territories; (2) BellSouth
Telecommunications, Inc. is successful in furthering its
cost reduction efforts; (3) the effect of access reform
initiatives now being considered by the FCC is reasonably
revenue neutral and (4) significant local service
competition in BellSouth's service territories does not
emerge through 1997. Any developments significantly
deviating from these assumptions could cause actual results
to differ materially from those in the above forward-looking
statement.
PRELIMINARY
October 17, 1996
BELLSOUTH CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In Millions, Except Per Share Amounts)
(Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
1996 1995 1996 1995
Operating Revenues:
Network and related services
Local service $ 2,061 $ 1,857 $ 6,012 $ 5,419
Interstate access 892 805 2,672 2,406
Intrastate access 207 230 627 683
Toll 195 220 600 767
Wireless communications 723 665 2,039 1,888
Directory advertising
and publishing 415 366 1,100 1,108
Other services 336 289 940 850
Total Operating Revenues 4,829 4,432 13,990 13,121
Operating Expenses:
Cost of services and
products 1,516 1,542 4,483 4,530
Depreciation and
amortization 940 874 2,760 2,568
Selling, general and
administrative 1,172 958 3,175 2,774
Total Operating Expenses 3,628 3,374 10,418 9,872
Operating Income 1,201 1,058 3,572 3,249
Interest Expense 177 172 531 532
Gain on Sale of Paging
Business -- -- 442 --
Other Income, net 32 53 84 51
Income Before Income
Taxes and Extraordinary
Losses 1,056 939 3,567 2,768
Provision for Income
Taxes 425 380 1,337 1,105
Income Before
Extraordinary Losses 631 559 2,230 1,663
Extraordinary Loss for
Discontinuance of SFAS
No. 71, net of tax -- -- -- (2,718)
Extraordinary Loss on
Early Extinguishment of
Debt, net of tax -- -- -- (16)
Net Income (Loss) $ 631 $ 559 $ 2,230 $(1,071)
PRELIMINARY
October 17, 1996
BELLSOUTH CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In Millions, Except Per Share Amounts)
(Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
1996 1995 1996 1995
Weighted Average Common
Shares Outstanding 994 993 994 993
Dividends Declared Per
Common Share $ .36 $ .36 $ 1.08 $ 1.05
Earnings (Loss) Per
Share:
Income Before
Extraordinary Losses $ .63 $ .56 $ 2.24 $ 1.67
Extraordinary Loss for
Discontinuance of SFAS
No. 71, net of tax -- -- -- (2.73)
Extraordinary Loss on
Early Extinguishment of
Debt, net of tax -- -- -- (.02)
Earnings (Loss) Per Share $ .63 $ .56 $ 2.24 $(1.08)
PRELIMINARY
October 17, 1996
BELLSOUTH CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Millions, Except Per Share Amounts)
September 30, December 31,
1996 1995
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 1,338 $ 1,711
Temporary cash investments 44 71
Accounts receivable, net of
allowance for uncollectibles
of $162 and $171 3,846 3,772
Material and supplies 416 430
Other current assets 404 521
6,048 6,505
Investments and Advances 2,563 2,418
Property, Plant and Equipment:
Property, Plant and Equipment 49,232 46,869
Accumulated Depreciation 27,625 25,777
21,607 21,092
Intangible Assets, net 1,321 1,527
Deferred Charges and Other
Assets 529 338
Total Assets $ 32,068 $ 31,880
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Debt maturing within one year $ 2,219 $ 2,951
Accounts payable 1,357 1,724
Other current liabilities 2,671 2,715
6,247 7,390
Long-Term Debt 7,878 7,924
Deferred Credits and Other
Liabilities:
Accumulated deferred income
taxes 1,728 1,650
Unamortized investment tax
credits 297 355
Other liabilities and
deferred credits 2,860 2,736
4,885 4,741
Shareholders' Equity:
Common stock, $1 par value 1,009 1,007
Paid-in capital 7,664 7,619
Retained earnings 5,262 4,099
Shares held in trust (409) (374)
Guarantee of ESOP debt (468) (526)
13,058 11,825
Total Liabilities and
Shareholders' Equity $ 32,068 $ 31,880
PRELIMINARY
October 17, 1996
BELLSOUTH FINANCIAL HIGHLIGHTS
SELECTED DATA
(UNAUDITED)
Three Months Three Months
Ended Ended
September 30, September 30,
1996 1995
Weighted average common shares
outstanding (millions) 994 993
Earnings per share $ .63 $ .56
Dividends per share $ .36 $ .36
Return to average common
equity (annualized) 19.3% 18.0%
Return to average total
capital(annualized) 13.4% 12.3%
Property additions (millions) $1,043 $ 949
At September 30,
1996 1995
Common shares outstanding
(millions) 994 993
Debt ratio 43.5% 43.3%
Total employees 82,331 89,544
PRELIMINARY
October 17, 1996
BELLSOUTH FINANCIAL HIGHLIGHTS
SELECTED DATA
(UNAUDITED)
Nine Months Nine Months
Ended Ended
September 30, September 30,
1996 1995
Weighted average common shares
outstanding (millions) 994 993
Earnings (Loss) per share $ 2.24(d) $(1.08)(a)
Dividends per share $ 1.08 $ 1.05
Return to average common
equity (annualized) 23.5% (10.4%)(b)
Return to average total
capital(annualized) 15.6% (3.6%)(c)
Property additions (millions) $3,224 $2,760
(a) Excluding the extraordinary losses, Earnings per
share were $1.67.
(b) After adjusting net income for the impact of the
extraordinary losses, Return to average common
equity was 16.1%.
(c) After adjusting net income for the impact of the
extraordinary losses, Return to average total
capital was 11.9%.
(d) Includes after-tax gain of $.35 per share from sale
of paging business.
PRELIMINARY
October 17, 1996
BELLSOUTH TELECOMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Millions)
(Unaudited)
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
1996 1995 1996 1995
Operating Revenues:
Local service $ 2,061 $ 1,857 $ 6,012 $ 5,419
Interstate access 892 805 2,672 2,406
Intrastate access 207 230 627 683
Toll 195 220 600 767
Other 405 493 1,149 1,486
Total Operating Revenues 3,760 3,605 11,060 10,761
Operating Expenses:
Cost of services and
products 1,310 1,336 3,854 3,894
Depreciation and
amortization 820 775 2,427 2,286
Selling, general and
administrative 699 577 1,921 1,693
Total Operating Expenses 2,829 2,688 8,202 7,873
Operating Income 931 917 2,858 2,888
Interest Expense 136 135 410 425
Other Income, net -- 8 17 20
Income Before Income
Taxes and Extraordinary
Losses 795 790 2,465 2,483
Provision for Income
Taxes 298 303 919 944
Income Before
Extraordinary Losses 497 487 1,546 1,539
Extraordinary Loss for
Discontinuance of SFAS
No. 71, net of tax -- -- -- (2,718)
Extraordinary Loss on
Early Extinguishment of
Debt, net of tax -- -- -- (16)
Net Income (Loss) $ 497 $ 487 $ 1,546 $(1,195)
PRELIMINARY
October 17, 1996
BELLSOUTH TELECOMMUNICATIONS FINANCIAL HIGHLIGHTS
SELECTED DATA
(UNAUDITED)
Three Months Three Months
Ended Ended
September 30, September 30,
1996 1995
Property additions (millions) $ 744 $ 758
Access minutes of use
(millions):
Interstate 16,966 15,714
Intrastate 5,348 4,885
IntraLATA toll messages 252 327
(millions)
At September 30,
1996 1995
Debt ratio 49.8% 47.2%
Telephone employees 64,860 71,090
Network access lines in
service (thousands) 21,943 20,924
Nine Months Nine Months
Ended Ended
September 30, September 30,
1996 1995
Property additions (millions) $2,442 $2,259
Access minutes of use
(millions):
Interstate 50,473 46,442
Intrastate 15,701 14,204
IntraLATA toll messages 791 1,049
(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
November 5, 1996
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