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): October 26, 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 announced today that consolidated net income for the
third quarter of 1994 was $47.2 million or $0.73 per share. For the third
quarter last year, net income was $48.7 million or $0.77 per share,
including $0.08 per share for one-time tax benefits and $0.06 per share for
a one-time gain from a special, voluntary termination program. Earnings per
share from continuing operations in the third quarter of 1993 before these
one-time events were $0.63.
Consolidated revenues and sales for the third quarter were up nearly 4
percent to $430 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.
Ex. 20 News release issued October 26, 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: October 26, 1994 By: /s/ Madelyn M. DeMatteo
Madelyn M. DeMatteo
Secretary
- 3 -
SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORPORATION
FORM 8-K
EXHIBIT INDEX
Exhibit
Number
20 News release issued October 26, 1994.
October 26, 1994
FOR FURTHER INFORMATION CONTACT: Bill Seekamp
(203) 771-2136
ANALYSTS CONTACT: Jim Magrone
(203) 771-4662
SNET REPORTS IMPROVED EARNINGS FROM CONTINUING
OPERATIONS FOR THE THIRD QUARTER
Southern New England Telecommunications
Corporation (SNET) -- (NYSE: SNG) announced today that
consolidated net income for the third quarter of 1994
was $47.2 million or $0.73 per share. In the third
quarter last year net income was $48.7 million or $0.77
per share, including $0.08 per share for one-time tax
benefits and $0.06 per share for a one-time gain from a
special, voluntary termination program. Earnings per
share from continuing operations in third quarter 1993
before these one-time events were $0.63.
"This is our third consecutive quarter of good
results," said Daniel J. Miglio, SNET chairman and
chief executive officer. "And we are building for
future growth by investing in key areas, especially
our wireless and long-distance businesses and our
advanced information superhighway called I-SNET. We
will continue to capitalize on growth opportunities as
we control costs and reengineer in order to succeed in
an increasingly competitive environment," he added.
- 2 -
Consolidated revenues and sales for the third
quarter were up nearly 4 percent to $430 million.
Revenue for Southern New England Telephone, the
company's largest subsidiary, was up slightly to $368
million for the quarter. This reflects a 2 percent
increase for access lines in service, and the company
continued to increase sales of premium services like
Totalphone[SM] and SmartLink[SM]. In-state toll revenue
declined because of expanded local-calling service
areas and increased competition. Network-access
revenue was up 3 percent to $89 million on increased
interstate minutes of use.
SNET's other subsidiaries had an overall revenue
increase of 25 percent to $63 million led by the
wireless business, which had its best quarter ever
through SNET Mobility's aggressive marketing programs.
In addition, SNET America, the company's young long-
distance subsidiary, reported steady growth in revenues
and its customer base.
Consolidated operating and maintenance expenses for
the quarter were up 5 percent. Without the one-time
credit for the voluntary termination program in 1993,
these expenses would have been up 2 percent. The
company continues to increase its commitment for
marketing and operating costs in the wireless and long-
distance businesses. Offsetting this was a decrease
in salary and wage expenses compared with last year.
Depreciation and amortization expense rose 5 percent.
Interest expense dropped almost $4 million because of
savings from previous refinancings as well as reduced
borrowing. Taxes rose $6 million over last year due
to the one-time tax benefits made in 1993.
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 services; 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.
SNET
Preliminary Summary of Consolidated Results
For the Three Months Ended September 30, 1994
(in Millions Except Per Share Amounts)
(Unaudited)
For the 3 Months Ended Percent
September 30, Change
1994 1993
INCOME STATEMENT
Revenues and Sales $429.6 $414.1 4%
Costs and Expenses:
Operating and maintenance 236.0 224.6
Depreciation and amortization 81.6 77.8
Taxes other than income 13.9 14.1
Total Costs and Expenses 331.5 316.5 5%
Income Before Interest
and Income Taxes 98.1 97.6
Interest 18.4 22.4 (18)%
Income Before Income Taxes 79.7 75.2
Income taxes 32.5 26.5
Consolidated Net Income $ 47.2 $ 48.7 (3)%
Weighted Average Common Shares
Outstanding (in thousands) 64,271 63,750
Earnings Per Common Share $ 0.73 $ 0.77 (5)%
STATISTICS
Access Lines in Service 1,997 1,956 2%
Interstate Minutes of Use 1,702 1,657 3%
Sept. 30, Dec. 31, Percent
1994 1993 Change
BALANCE SHEET
Common Equity at Period End $930.6 $854.6 9%
Book Value Per Common Share
at Period End $ 14.47 $ 13.38 8%
Debt Ratio at Period End 51.4% 59.9% (14)%
SNET
Preliminary Summary of Consolidated Results
For the Nine Months Ended September 30, 1994
(in Millions Except Per Share Amounts)
(Unaudited)
For the 9 Months Ended Percent
September 30, Change
1994 1993
INCOME STATEMENT
Revenues and Sales $1,280.6 $1,227.1 4%
Costs and Expenses:
Operating and maintenance 708.9 690.0
Depreciation and amortization 243.6 211.6
Taxes other than income 42.5 45.3
Total Costs and Expenses 995.0 946.9 5%
Income Before Interest, Income
Taxes and Accounting Changes 285.6 280.2
Interest 57.2 68.8 (17)%
Income Before Income Taxes
and Accounting Changes 228.4 211.4
Income taxes 92.4 85.3
Income Before Accounting
Changes 136.0 126.1 8%
Accounting changes - (220.2)
Consolidated Net Income(Loss) $ 136.0 $ (94.1)
Weighted Average Common Shares
Outstanding (in thousands) 64,130 63,637
Earnings(Loss)Per Common Share:
Income Before Accounting
Changes $ 2.12 $ 1.99 (7)%
Accounting Changes - (3.47)
Earnings (Loss) Per
Common Share $ 2.12 $ (1.48)
STATISTICS
Access Lines in Service 1,997 1,956 2%
Interstate Minutes of Use 5,157 4,868 6%
Sept. 30, Dec. 31, Percent
1994 1993 Change
BALANCE SHEET
Common Equity at Period End $ 930.6 $ 854.6 9%
Book Value Per Common Share
at Period End $ 14.47 $ 13.38 8%
Debt Ratio at Period End 51.4% 59.9% (14)%
