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 20, 1994
AMERITECH CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
(State of other jurisdiction of incorporation)
1-8612 36-3251481
Commission File Number IRS Employer ID No.
30 South Wacker Drive, Chicago, Illinois 60606
(Address of principal executive offices)
Registrant's telephone number, including area code: (312)750-5000
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Item 7. Financial Statements and Exhibits
On July 20 1994, Ameritech Corporation (Ameritech) reported that
the second quarter of 1994 was the strongest quarter in the company's
history, with revenues and net income setting new records.
Second-quarter net income grew 14.6 percent to a record $446.6
million, compared with $389.6 million in the second quarter of 1993.
Earnings per share increased 12.5 percent to a record 81 cents per
share in the second quarter of 1994, up from 72 cents per share in the
second quarter of 1993 (adjusted for the December 1993 stock split).
Revenues for the second quarter of 1994 rose 6.6 percent to a
record $3.15 billion, compared with $2.95 billion in second quarter
1993. Revenue growth was fueled by:
o A 48.9 percent increase in cellular customers over a year ago to
1,039,000 customers.
o Solid 7.9 percent growth in network access minutes of use during
the second quarter.
o Record access line growth of 3.5 percent to 17.9 million. Business
lines grew 6.6 percent, while residence lines were up 2.0 percent
over the second quarter of 1993.
For the first six months of 1994, Ameritech revenues rose 6.8
percent to $6.14 billion, up from $5.75 billion in the first half of
1993. Income before one-time charges rose 13.2 to $823.2 million form
$726.9 million, excluding one-time after-tax charges of $332.8 million
for work force restructuring in the first quarter of 1994 and $37.3
million for restructuring at Telecom Corporation of New Zealand in the
first quarter of 1993. Including one-time charges, net income was
$490.4 million in the first half of 1994, compared with $689.6 million
in the first half of 1993.
Earnings per share before one-time charges grew 11.9 percent to
$1.50 in the first half of 1994. Including one-time charges, reported
earnings per share were 89 cents in the first half of 1994, compared
with $1.27 in the first half of 1993.
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in millions, except per share amounts)
Three Months Ended
June 30 %
1994 1993 Change
(Unaudited) (Unaudited)
Revenues $3,146.4 $2,950.8 6.6%
Operating expenses 2,400.8 2,302.1 4.3%
Operating income 745.6 648.7 14.9%
Other (income) expense, net (35.5) (27.4) 29.6%
Interest expense 110.3 118.1
(6.6)%
Income before income taxes 670.8 558.0 20.2%
Income taxes 224.2 168.4 33.1%
Net income $ 446.6 $ 389.6 14.6%
Average common shares
outstanding (000) (1) 548,635 543,372 1.0%
Earnings per common share (1) $0.81 $0.72 12.5%
Dividends declared per
common share (1) $0.48 $0.46 4.3%
(1) All 1993 share and per share data have been restated to reflect
the two-for-one stock split effective December 31, 1993.
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Six Months Ended
June 30 %
1994 (1) 1993 (1) Change
(Unaudited) (Unaudited)
Revenues $6,136.8 $5,747.3 6.8%
Operating expenses (2) 5,250.3 4,504.6 16.6%
Operating income 886.5 1,242.7
(28.7)%
Other (income) expense, net (3) (68.4) (8.1) n/a
Interest expense 215.5 237.6
(9.3)%
Income before income taxes 739.4 1,013.2
(27.0)%
Income taxes 249.0 323.6
(23.1)%
Net income $ 490.4 $ 689.6
(28.9)%
Average common shares
outstanding (000) (4) 547,995 542,526 1.0%
Earnings per common share (4) $0.89 $1.27
(29.9)%
Dividends declared per
common share (4) $0.96 $0.92 4.3%
(1) Income before one-time charges rose 13.2 percent to $823.2
million from $726.9 million for the six months of 1993.
Earnings per common share before one-time charges grew 11.9
percent to $1.50, up from $1.34 in the first six months of
1993. See notes 2 and 3 for details of one-time charges.
(2) First quarter 1994 results included a $530.0 million pretax
charge ($332.8 million after tax or $0.61 per share) related to
workforce restructuring.
(3) First quarter 1993 results included a $42.3 million pretax
charge ($37.3 million after tax or $0.07 per share) related to
restructuring at Telecom Corporation of New Zealand.
(4) All 1993 share and per share data have been restated to reflect
the two-for-one stock split effective December 31, 1993.
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CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
Change
from
June 30 Dec. 31 Dec. 31
1994 1993 1993
ASSETS (Unaudited)
Current assets $ 2,642.9 $ 2,626.7 $ 16.2
Property, plant and equipment 17,170.0 17,366.1 (196.1)
Investments, primarily International 1,234.8 1,219.0 15.8
Other assets and deferred charges 2,444.4 2,215.9 228.5
Total assets $23,492.1 $23,427.7 $ 64.4
LIABILITIES AND SHAREOWNERS' EQUITY
Debt maturing within one year $ 2,249.4 $ 2,601.6 ($352.2)
Other current liabilities 3,154.5 3,083.7 70.8
Long-term debt 4,492.2 4,090.4 401.8
Deferred credits and
other long-term liabilities 5,594.7 5,807.4 (212.7)
Shareowners' equity 8,001.3 7,844.6 156.7
Total liabilities and
shareowners' equity $23,492.1 $23,427.7 $ 64.4
SELECTED FINANCIAL AND OPERATING DATA
(Unaudited)
(Dollars in millions)
June 30 June 30 %
1994 1993 Change
Debt ratio 45.7% 47.7% n/a
Customer lines (000's) 17,875 17,275 3.5%
Employees 66,593 69,541
(4.2)%
Telephone company employees 57,924 61,774
(6.2)%
Customer lines per telephone
company employee 309 280 10.4%
Return to average
equity - annualized Qtr. 22.2% 21.0% n/a
YTD 16.3% (1) 18.9% n/a
Return to average total
capital - annualized Qtr. 14.4% 13.4% n/a
YTD 11.2% (1) 12.3% n/a
Construction activity Qtr. $456.7 $ 538.3
(15.2)%
YTD $894.2 $1,029.3 (13.1)
(1) Adjusted for the first quarter 1994 after tax workforce
restructuring charge of $332.8 million.
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SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
Dated: July 21, 1994
AMERITECH CORPORATION
By /s/ Bruce B. Howat
Bruce B. Howat
Secretary
