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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):
April 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
In the first quarter of 1996, Ameritech's double-digit
growth continued as the company set records for quarterly revenue
growth, first-quarter profit growth and first-quarter profits before
one-time items.
Revenues surged a record 13.4 percent to $3.6 billion, up from $3.1
billion in the first quarter of 1995. Strength in the company's core
communications business drove the revenue gains, highlighted by:
- - robust growth in network access minutes of use, up 10.4 percent.
- - solid 6.8 percent growth in toll minutes.
- - continuing growth in access lines, up 4.5 percent to 19.3 million,
and call management services such as Caller ID and voice mail.
- - A 42.7 percent increase in cellular customers, to more than 2 million
customers.
Profits in the first quarter of 1996 rose 14.2 percent to $478.3
million, up from $418.8 million in the first quarter of 1995. Earnings per
share rose 13.2% to 86 cents from 76 cents in the first quarter of 1995.
These totals exclude a one-time after-tax gain of $160.1 million or 29
cents a share in the first quarter of 1995 for settlement gains associated
with lump sum pension payments to former employees.
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in millions, except per share amounts)
Three Months Ended
March 31 %
1996 (1) 1995 (1) Change
--------- --------- ------
(Unaudited) (Unaudited)
Revenues $3,567.4 $3,145.7 13.4%
Operating expenses (2) 2,745.3 2,156.7 27.3%
-------- --------
Operating income (2) 822.1 989.0 (16.9)%
Other income, net (50.5) (33.6) 50.3%
Interest expense 123.7 117.9 4.9%
-------- --------
Income before income taxes (2) 748.9 904.7 (17.2)%
Income taxes (2) 270.6 325.8 (16.9)%
-------- --------
Net income (1) (2) $ 478.3 $ 578.9 (17.4)%
-------- --------
Average common shares
outstanding (000) 554,752 552,269 0.4%
Earnings per common share (2) $0.86 $1.05 (18.1)%
Dividends declared per
common share $0.53 $0.50 6.0%
(1) Income before one-time items rose 14.2 percent to $478.3 million
from $418.8 million in the first quarter 1995. Earnings per
share before one-time items grew 13.2 percent to $0.86 per
share, up from $0.76 per share in the first quarter of 1995.
See note (2) for details of one-time items.
(2) 1995 results included a $256.3 million pretax net credit ($160.1
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
March 31, Dec. 31, Dec. 31,
1996 1995 1995
-------- ------- -------
ASSETS (Unaudited)
------
Current assets $ 3,481.2 $ 3,452.4 $ 28.8
Property, plant and equipment, net 13,178.2 13,456.8 (278.6)
Investments, primarily international 2,382.6 1,497.0 885.6
Other assets and deferred charges 3,740.9 3,536.4 204.5
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Total assets $22,782.9 $21,942.6 $840.3
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LIABILITIES AND SHAREOWNERS' EQUITY
- -----------------------------------
Debt maturing within one year $ 3,023.9 $ 2,137.9 $886.0
Other current liabilities 3,395.4 3,624.0 (228.6)
Long-term debt 4,439.1 4,513.2 (74.1)
Deferred credits and
other long-term liabilities 4,642.3 4,653.0 (10.7)
Shareowners' equity 7,282.2 7,014.5 267.7
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Total liabilities and
shareowners' equity $22,782.9 $21,942.6 $840.3
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SELECTED FINANCIAL AND OPERATING DATA
(Unaudited)
(Dollars in millions)
March 31, March 31, %
1996 1995 Change
-------- -------- ------
Debt ratio 50.6% 48.9% 3.5%
Customer lines (000's) 19,275 18,442 4.5%
Employees 65,502 62,094 5.5%
Telephone company employees 51,204 52,241 (2.0)%
Customer lines per telephone
company employee 376 353 6.5%
Return on average equity - annualized 26.1% 36.6% (28.7)%
Return on average total
capital - annualized 16.2% 21.2% (23.6)%
Construction activity $466.0 $365.0 27.7%
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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: April 16, 1996 AMERITECH CORPORATION
By /s/ Bruce B. Howat
Bruce B. Howat
Secretary
