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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 15, 1997
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: 1-800-257-0902
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Item 7. Financial Statements and Exhibits.
Ameritech today reported its 14th consecutive quarter of double-
digit earnings growth before one-time items. Powering first-quarter
growth were continued expansion in Ameritech's core communications
business and strong contributions from the company's growing
international operations.
First-quarter earnings increased 12.1% to $536 million, up from
$478 million in the first quarter of 1996. Earnings per share grew
12.8% to 97 cents, up from 86 cents a year ago. Revenues advanced 8.2%
to $3.9 billion, up from $3.6 billion in the first quarter of 1996.
Ameritech's first quarter growth was fueled by continued strong
volume and customer increases, highlighted by:
o 33% annual growth in cellular customers to 2.7 million.
o 50% annual increase in paging customers to 1.2 million.
o 26% annual growth in sales of call management services such as
Caller ID, call waiting and voice messaging.
o 3.2% annual increase in access lines to 19.9 million.
o 8.1% annual growth in network access minutes of use.
o 12.3% annual increase in security monitoring customers to
444,000.
Ameritech's international businesses extended their record of
strong results in the first quarter, contributing more than one-fourth
of the company's earnings growth. Ameritech's international investments
include Belgacom of Belgium, Matav of Hungary, New Zealand Telecom,
NetCom of Norway, an alliance with ChinaCom to build cellular and
landline networks in China, and WLW, a European business-to-business
directory provider.
During the past three months, Ameritech made significant progress
furthering its growth strategy. Highlights include:
o Reaching agreement to purchase the assets of Sprint's local
communications business in a portion of Chicago and 10 of its
suburbs. The transaction, subject to regulatory approvals,
is expected to be concluded in mid-1997 and will add 136,000
access lines.
o Continuing expansion of americast[TM] enhanced cable television
service. Ameritech has added five cable TV franchises
since the first of the year. The company now has 34 franchise
agreements with communities covering more than 1.7 million people
and offers service in 22 communities in Illinois, Michigan
and Ohio.
o Signing an agreement with Teleglobe International, expanding
the reach of Ameritech's state-of-the-art long distance
network to more than 240 countries and territories worldwide.
Ameritech currently provides long distance to more than one
million of its cellular customers and is ready to provide
service to its $9 billion regional market upon regulatory approval.
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in millions, except per share amounts)
Three Months Ended
March 31
%
1997 1996 Change
(Unaudited) (Unaudited)
Revenues $3,859 $ 3,567 8.2 %
Operating expenses 2,947 2,745 7.4 %
Operating income 912 822 11.0 %
Other income, net 65 51 27.5 %
Interest expense 125 124 0.8 %
Income before income taxes 852 749 13.7 %
Income taxes 316 271 16.6 %
Net income $ 536 $ 478 12.1 %
Average common shares
outstanding (000) 550,527 554,752 (0.8)%
Earnings per common share $0.97 $0.86 12.8 %
Dividends declared per
common share $0.565 $0.53 6.6 %
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CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
Change from
March 31 Dec. 31 Dec. 31
1997 1996 1996
ASSETS
Current assets $ 3,680 $ 3,799 $ (119)
Property, plant and equipment, net 13,444 13,507 (63)
Investments, primarily international 2,183 2,323 (140)
Other assets and deferred charges 4,128 4,078 50
Total assets $23,435 $23,707 $ (272)
LIABILITIES AND SHAREOWNERS' EQUITY
Debt maturing within one year $ 2,739 $ 3,155 $ (416)
Other current liabilities 3,788 3,677 111
Long-term debt 4,296 4,437 (141)
Deferred credits and
other long-term liabilities 4,742 4,751 (9)
Shareowners' equity 7,870 7,687 183
Total liabilities and
shareowners' equity $23,435 $23,707 $ (272)
SELECTED FINANCIAL AND OPERATING DATA
(Unaudited)
(Dollars in millions)
March 31, March 31, %
1997 1996 Change
Debt ratio 47.2% 50.6% (6.7)%
Customer lines (000's) 19,895 19,275 3.2 %
Employees 66,403 65,502 1.4 %
Telephone company employees 50,015 51,204 (2.3)%
Customer lines per telephone
company employee 398 376 5.9 %
Return on average
equity - annualized 27.6% 26.1% 5.8 %
Return on average total
capital - annualized 16.9% 16.2% 4.3 %
Construction activity $ 533 $ 466 14.4 %
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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 15, 1997
AMERITECH CORPORATION
By /s/ Bruce B. Howat
Bruce B. Howat
Secretary
