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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 16, 1996
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
Ameritech reported that its second-quarter revenues rose 11.1% to
$3.74 billion from $3.37 billion in the second quarter of 1995. Second-
quarter 1996 profits grew 12.5 % to %567 million from $504 million in
the second quarter of 1995. Earnings per share increased 12.1% to
$1.02 per share, up from 91 cents per share in the second quarter of
1995. The second quarter of 1996 marked Ameritech's third consecutive
quarter of double-digit earnings growth, excluding one-time items.
Growth was fueled by:
A 39.7% increase in cellular customers, up to nearly 2.2 million
customers in the second quarter of 1996.
Solid 9.3% growth in network access minutes of use.
Strong growth in voice mail, Caller ID and security monitoring.
Contributions to net income from international investments,
particularly in Belgium and New Zealand.
The company has made significant progress in its plans to enter
the long distance businesses, reaching 20 interconnection and resale
agreements that help Ameritech meet Telecom Act conditions for its
entry into full long distance service. Ameritech also turned on
service for its first cable TV customers in the Detroit and Columbus
areas, and acquired security monitoring assets from Circuit City to
strengthen its position as one of the largest U.S. security monitoring
companies.
For the first six months of 1996, Ameritech revenues rose 12.2% to
$7.31 billion from $6.51 billion in the first half of 1995. Income
rose 13.3% to $1,045 million from $922 million, excluding after-tax
gain in the first quarter of 1995 of $160 million from settlement gains
associated with lump-sum payments from the pension plan. Reported net
income was $1,045 million in the first half of 1996, compared with
$1,082 million in the first half of 1995.
Earnings per share excluding one-time items grew 13.2% to $1.89
from $1.67 in the first half of 1995. Reported earnings per share were
$1.89, compared with $1.96 in the first half of 1995, including a one-
time gain of 29 cents per share in the first quarter of 1995 from
settlement gains associated with lump-sum payments from the pension
plan.
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in millions, except per share amounts)
Three Months Ended
June 30
%
1996 1995 Change
(Unaudited) (Unaudited)
Revenues $3,744 $3,369 11.1%
Operating expenses 2,798 2,509 11.5%
Operating income 946 860 10.0%
Other income, net 73 35 108.6%
Interest expense 128 119 7.6%
Income before income taxes 891 776 14.8%
Income taxes 324 272 19.1%
Net income $ 567 $ 504 12.5%
Average common shares
Outstanding (000) 553,173 553,719 (0.1)%
Earnings per common share $1.02 $0.91 12.1%
Dividends declared per
common share $0.53 $0.50 6.0%
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CONSOLIDATED STATEMENTS OF INCOME
(Dollars in millions, except per share amounts)
Six Months Ended
June 30
%
1996 (1) 1995 (1) Change
(Unaudited) (Unaudited)
Revenues $7,311 $6,515 12.2%
Operating expenses (2) 5,543 4,666 18.8%
Operating income 1,768 1,849 (4.4)%
Other income, net 124 68 82.4%
Interest expense 252 237 6.3%
Income before income taxes 1,640 1,680 (2.4)%
Income taxes 595 598 (0.5)%
Net income $1,045 $1,082 (3.4)%
Average common shares
outstanding (000) 553,962 552,998 0.2%
Earnings per common share $1.89 $1.96 (3.6)%
Dividends declared per
common share $1.06 $1.00 6.0%
(1) Income before one-time items rose 13.3 percent to $1,045 million
from $922 million in the first half of 1995. Earnings per share
before one-time items grew 13.2 percent to $1.89 per share, up
from $1.67 per share in the first half of 1995. See note (2)
for details of the one-time item reflected in 1995.
(2) 1995 results include a $256 million pretax net credit ($160
million after-tax or $0.29 per share) related to net settlement
gains associated with lump-sum pension payments from the
nonmanagement pension plan to former employees, related to the
work force restructuring program.
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CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
Change
from
June 30 Dec. 31 Dec. 31
1996 1995 1995
ASSETS (Unaudited)
Current assets $ 3,836 $ 3,452 $ 384
Property, plant and equipment 13,225 13,457 232)
Investments, primarily international 2,376 1,497 879
Other assets and deferred charges 3,730 3,536 194
Total assets $23,167 $21,942 $1,225
LIABILITIES AND SHAREOWNERS' EQUITY
Debt maturing within one year $ 3,533 $ 2,138 $1,395
Other current liabilities 3,417 3,623 (206)
Long-term debt 4,216 4,513 (297)
Deferred credits and
other long-term liabilities 4,605 4,653 (48)
Shareowners' equity 7,396 7,015 381
Total liabilities and
shareowners' equity $23,167 $21,942 $1,225
SELECTED FINANCIAL AND OPERATING DATA
(Unaudited)
(Dollars in millions)
June 30 June 30 %
1996 1995 Change
Debt ratio 51.2% 48.1% 6.4%
Customer lines (000's) 19,399 18,618 4.2%
Employees 66,913 62,127 7.7%
Telephone company employees 52,101 51,856 0.5%
Customer lines per telephone
company employee 372 359 3.6%
Return on average
equity - annualized Qtr. 30.8% 29.6% 4.1%
YTD 28.5% 32.9% (13.4)%
Return on average total
capital - annualized Qtr. 17.9% 18.5% (3.2)%
YTD 17.0% 19.8% (14.1)%
Construction activity Qtr. $556 $440 26.4%
YTD $1,022 $805 27.0%
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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 17, 1996
AMERITECH CORPORATION
By /s/ Bruce B. Howat
Bruce B. Howat
Secretary
