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 21, 1994
SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORPORATION
(Exact name of registrant as specified in its charter)
Connecticut 1-9157 06-1157778
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
227 Church Street, New Haven, Connecticut 06510
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (203) 771-5200
Not Applicable
(Former name or former address, if changed since last report)
- 1 -
Item 5. Other events.
The registrant today announced that consolidated net income for the
second quarter of 1994 was $0.71 per share compared with net income of
$0.64 per share for the second quarter of 1993. Consolidated revenues
and sales for the second quarter were up over four percent to almost
$428 million.
The news release providing the announcement is filed as an exhibit
hereto and is incorporated herein by reference.
Item 7. Financial Statements, Pro forma Financial
Information and Exhibits.
20 News release issued July 21, 1994.
- 2 -
SIGNATURES
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.
SOUTHERN NEW ENGLAND
TELECOMMUNICATIONS CORPORATION
Dated: July 21, 1994 By: /s/ Madelyn M. DeMatteo
Madelyn M. DeMatteo
Secretary
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SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORPORATION
FORM 8-K
EXHIBIT INDEX
Exhibit
Number
20 News release issued July 21, 1994.
SNET
We go beyond the call.
227 Church Street
New Haven, Connecticut 06506 News Release
July 21, 1994
For Further Information, Contact: Beverly Levy
(203) 771-4474
SNET ANNOUNCES SECOND QUARTER EARNINGS
Southern New England Telecommunications Corporation
(SNET) -- (NYSE: SNG) -- announced today that consolidated net
income for the second quarter of 1994 was $0.71 per share
compared with net income of $0.64 per share for the second
quarter of 1993.
"We had a good quarter. Revenues are stronger and we're
beginning to see benefits from our cost-cutting initiatives,"
said Daniel J. Miglio, SNET chairman and chief executive
officer. "We continue to face immediate challenges that
include operating in an economy lacking vigor and dealing with
mounting competition. We continue to invest in the future.
Our goals are to provide excellent service, expand promising
business opportunities in multimedia and long distance, and
strengthen our marketing initiatives for new and existing
products," he added.
Consolidated revenues and sales for the second quarter
were up over four percent to almost $428 million. That
figure includes revenue for Southern New England Telephone,
the company's largest subsidiary, which was up three percent
to $371 million for the quarter. Access lines in service
grew nearly two
-more-
-2-
percent, and the company continued to increase its sales of
premium services like Totalphone[SM] and SmartLink[SM]. The
increase in revenue was also due to higher rates authorized
by the Department of Public Utility Control in July 1993.
In-state toll revenue decreased due to competitive price
reductions and expanded local-calling service that shifted a
portion of toll revenue to local-service revenue.
SNET's other subsidiaries had an overall revenue
increase of nearly 15 percent to $57 million, as the company
continues to increase its customer base in the cellular and
long-distance businesses.
Operating expenses, excluding depreciation, for the
quarter were up slightly. Salary and wage expenses were
down, but this was more than offset by an increased
commitment of resources for marketing and operating costs in
the long-distance and multimedia businesses. Depreciation
and amortization expense increased almost 16 percent, as
expected, due mainly to higher depreciation rates authorized
by state regulators. Interest expense dropped almost $4
million because of savings from previous refinancings and
less borrowing.
SNET is an independent telecommunications company that
offers through its subsidiaries network and information-
management services and communications systems; in-state,
national, and international long-distance communications
service; directory publishing and advertising services; and
cellular mobile phone and paging services. SNET is building
I-SNET, Connecticut's broadband, information superhighway to
serve all its customers.
-XXX-
SNET
Preliminary Summary of Consolidated Results
For the Three Months Ended June 30, 1994
(in Millions Except Per Share Amounts)
(Unaudited)
For the Three Months Ended Percent
June 30, Change
1994 1993
INCOME STATEMENT
Revenues and Sales $427.8 $410.7 4%
Costs and Expenses:
Operating and maintenance 237.5 230.6
Depreciation and amortization 81.3 70.2
Taxes other than income 14.4 14.8
Total Costs and Expenses 333.2 315.6 6%
Income Before Interest and Income Taxes 94.6 95.1
Interest 19.0 22.6 (16)%
Income Before Income Taxes 75.6 72.5
Income taxes 30.3 31.6
Consolidated Net Income $ 45.3 $ 40.9 11%
Weighted Average Common Shares
Outstanding (in thousands) 64,134 63,638
Earnings Per Common Share $ 0.71 $ 0.64 11%
STATISTICS
Access Lines in Service 1,984 1,947 2%
Interstate Minutes of Use 1,743 1,577 11%
June 30, December 31, Percent
1994 1993 Change
BALANCE SHEET
Common Equity at Period End $ 903.8 $854.6 6%
Book Value Per Common Share
at Period End $14.09 $13.38 5%
Debt Ratio at Period End 53.7% 59.9% (10)%
SNET
Preliminary Summary of Consolidated Results
For the Six Months Ended June 30, 1994
(in Millions Except Per Share Amounts)
(Unaudited)
For the Six Months Ended Percent
June 30, Change
1994 1993
INCOME STATEMENT
Revenues and Sales $851.0 $ 813.0 5%
Costs and Expenses:
Operating and maintenance 472.9 465.4
Depreciation and amortization 162.0 133.8
Taxes other than income 28.6 31.2
Total Costs and Expenses 663.5 630.4 5%
Income Before Interest, Income Taxes
and Accounting Changes 187.5 182.6
Interest 38.8 46.4 (16)%
Income Before Income Taxes and
and Accounting Changes 148.7 136.2
Income taxes 59.9 58.8
Income Before Accounting Changes 88.8 77.4 15%
Accounting changes - (220.2)
Consolidated Net Income (Loss) $ 88.8 $(142.8)
Weighted Average Common Shares
Outstanding (in thousands) 64,058 63,580
Earnings (Loss) Per Common Share:
Income Before Accounting Changes $ 1.39 $ 1.22 14%
Cumulative Effect of Accounting Changes - (3.47)
Earnings (Loss) Per Common Share $ 1.39 $ (2.25)
STATISTICS
Access Lines in Service 1,984 1,947 2%
Interstate Minutes of Use 3,455 3,212 8%
June 30, December 31, Percent
1994 1993 Change
BALANCE SHEET
Common Equity at Period End $ 903.8 $854.6 6%
Book Value Per Common Share
at Period End $14.09 $13.38 5%
Debt Ratio at Period End 53.7% 59.9% (10)%
