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): January 24, 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)
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Item 5. Other events.
The registrant today announced essentially flat earnings of $2.53 per
share for 1993 compared with $2.56 per share for 1992 from continuing
operations before the extraordinary charge and accounting changes and
excluding a restructuring charge. With those charges, the registrant
recorded a net loss for 1993 of $318.1 million compared with net income
for 1992 of $151.4 million or ($4.99) per share versus $2.44 per share.
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 January 24, 1994.
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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: January 24, 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 January 24, 1994.
January 24, 1994
ANALYSTS CONTACT: Jim Magrone
(203) 771-4662
SNET ANNOUNCES FLAT 1993 EARNINGS FROM CONTINUING OPERATIONS
WITH WEAK ECONOMY AND INCREASING COMPETITION
Southern New England Telecommunications Corporation (NYSE: SNG)
today announced essentially flat earnings of $2.53 per share for
1993 compared with $2.56 for 1992 from continuing operations before
the extraordinary charge and accounting changes and excluding a
restructuring charge. With those charges, the company recorded a
net loss for 1993 of $318.1 million compared with net income for
1992 of $151.4 million or ($4.99) versus $2.44 per share.
The net loss and net income figures include these previously
announced after-tax charges:
1993 1992
In Millions Per Share In Millions Per Share
Net (Loss) Income ($4.99) $2.44
Restructuring $204.2 3.21 - -
Refinancing $44.0 0.69 $2.7 0.04
Discontinued operations $10.3 0.16 $5.1 0.08
Adoption of SFAS 106,
112, and 109 $220.2 3.46 - -
Earnings before one-time $2.53 $2.56
charges
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"The weak economy and the impact of increasing competition
continue to pressure earnings. In spite of the difficult year, we
are holding our own and taking key steps such as our restructuring
efforts to position SNET for growth over the long term," said Daniel
J. Miglio, SNET chairman, president, and chief executive officer.
"I am excited about our recently announced plan to invest $4.5
billion over the next 15 years to transform our statewide
telecommunications network into an information superhighway called
I-SNET. It represents our vision of the future. In a complementary
initiative, we launched one of the first video-on-demand trials in
the nation. We also started up SNET America, which offers a full
range of interstate and international long-distance services. We
will continue to pursue new opportunities for growth and offer new
services that make us the information-age company of choice for
customers," he added.
Consolidated revenues and sales for 1993 were up 2.4 percent to
$1,653.6 million compared with $1,614.4 million for 1992. The
telephone company's revenues reflect a 5.6 percent drop for in-state
toll revenue due mainly to competitive price reductions. Revenue
from network-access charges increased 4.4 percent to $342.8
million. Revenue from the company's directory-publishing business
decreased 3.8 percent.
Sales from other businesses declined 6.1 percent, mainly because
of our planned withdrawal from the PBX-systems market in favor of
concentration on our own network-based centrex services. Sales from
the company's cellular operations were up 23.2 percent on a growing
customer base.
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Costs and expenses for 1993, excluding the restructuring charge
and interest were up 3.8 percent to $1,295.0 million compared with
$1,247.5 million for 1992. This includes a 16.6 percent increase
in depreciation and amortization expense, due primarily to higher
depreciation rates authorized by state and federal regulators.
Interest expense declined 6.3 percent because of less short-term
borrowing, lower rates compared with 1992, and savings from previous
refinancings of high-coupon debt.
For the fourth quarter of 1993, earnings from continuing
operations before the extraordinary charge and without the
restructuring charge, were $0.55 per share versus $0.64 per share
for 1992. The net loss for the quarter was $224.0 million compared
with net income for 1992 of $40.0 million, or ($3.51) versus $0.64
per share.
"Higher revenues for the quarter were offset primarily by the
higher depreciation rates now in effect," said Mr. Miglio.
Fourth quarter 1993 revenues and sales were $426.5 million
compared with $405.9 million. Costs and expenses, excluding the
restructuring charge and interest, were $348.1 million compared with
$312.7 million.
Southern New England Telecommunications Corporation is an
independent telecommunications company that offers through its
subsidiaries network and information-management services and
communications systems; long-distance service; directory publishing
and advertising services; and cellular mobile phone and paging
services.
###
SNET
Preliminary Summary of Consolidated Results
For the three months ended December 31
(in Millions Except Per Share Amounts)
For the 3 Months Ended Percent
December 31 Change
1993 1992
Revenues and Sales
Local service $153.8 $131.4
Intrastate toll 77.9 89.1
Network access 84.7 85.3
Sales 56.0 57.1
Publishing and other 54.1 43.0
Total Revenues and Sales 426.5 405.9 5.1%
Costs and Expenses
Operating and maintenance 253.3 236.6
Provision for restructuring 355.0 -
Depreciation and amortization 79.5 63.5
Taxes other than income 15.3 12.6
Interest 22.6 23.2
Total Costs and Expenses 725.7 335.9 116.1%
(Loss) Income from Continuing Operations
Before Income Taxes and Extraordinary
Charge (299.2) 70.0 (527.4%)
Provision for income taxes (129.5) 30.0 (531.7%)
(Loss) Income from Continuing Operations
Before Extraordinary Charge (169.7) 40.0 (524.3%)
Discontinued Operations, net of
related taxes
Loss from discontinued operations - -
Loss on disposal of discontinued
operations (10.3) -
(Loss) Income Before Extraordinary
Charge (180.0) 40.0 (550.0%)
Extraordinary charge, net of tax (44.0) -
Consolidated Net (Loss) Income ($224.0) $ 40.0
Tax benefit of dividends declared
on shares held in Employee Stock
Ownership Plan ("ESOP") - .6
(Loss) Earnings for Per Share
Calculation ($224.0) $ 40.6
Weighted Average Common Shares
Outstanding (in thousands) 63,854 63,316 .8%
(Loss) Earnings Per Common Share:
(Loss) Income from Continuing Operations
Before Extraordinary Charge ($2.66) $ .64 (515.6%)
Discontinued Operations (.16) -
(Loss) Income Before
Extraordinary Charge (2.82) .64 (540.6%)
Extraordinary Charge (.69) -
(Loss) Earnings per Common Share ($3.51) $ .64 (648.4%)
SNET
Preliminary Statistical Information
For the three months ended December 31
(in Millions Except Per Share Amounts)
For the three Months Ended Percent
December 31 Change
1993 1992
WATS Message Volumes 24.3 29.1 (16.5%)
TOLL Message Volumes 95.5 102.3 (6.6%)
Access Lines in Service 1,964 1,937 1.4%
Interstate Minutes of Use 1,654 1,575 5.0%
Common Equity at Period End $ 855 $1,254 (31.8%)
Common Shares Outstanding
at Quarter End (in thousands) 63,850 63,359 .8%
Book Value Per Common Share
at Period End $13.38 $19.79 (32.4%)
Average Common Shares Outstanding 63,854 63,316 .9%
(in thousands)
Debt Ratio at Period End 59.9% 47.4% 26.4%
SNET
Preliminary Summary of Consolidated Results
Years Ended December 31
(in Millions Except Per Share Amounts)
Years Ended Percent
December 31 Change
1993 1992
Revenues and Sales
Local service $ 566.7 $ 523.0
Intrastate toll 339.8 359.9
Network access 342.8 328.5
Sales 205.2 218.6
Publishing and other 199.1 184.4
Total Revenues and Sales 1,653.6 1,614.4 2.4%
Costs and Expenses
Operating and maintenance 943.3 938.5
Provision for restructuring 355.0 -
Depreciation and amortization 291.1 249.7
Taxes other than income 60.6 59.3
Interest 91.4 97.5
Total Costs and Expenses 1,741.4 1,345.0 29.5%
(Loss) Income from Continuing Operations
Before Income Taxes,
Extraordinary Charge and
Accounting Changes (87.8) 269.4 (132.6%)
Provision for income tax (44.2) 110.2
(Loss) Income from Continuing Operations
Before Extraordinary Charge
and Accounting Changes (43.6) 159.2 (127.4%)
Discontinued Operations, net of
related taxes
Loss from discontinued operations - (1.1)
Loss on disposal of discontinued
operations (10.3) (4.0)
(Loss) Income Before Extraordinary
Charge and Accounting Changes (53.9) 154.1 (135.0%)
Extraordinary Charge, net of tax (44.0) (2.7)
Accounting Changes - Cumulative
effect to January 1, 1993 (220.2) -
Consolidated Net (Loss) Income ($318.1) $151.4
Tax benefit of dividends declared
on shares held in Employee Stock
Ownership Plan ("ESOP") - 2.3
(Loss) Earnings for Per
Share Calculation ($318.1) $153.7
Weighted Average Common Shares
Outstanding (in thousands) 63,692 63,073 1.0%
SNET
Preliminary Summary of Consolidated Results
Years Ended December 31
(in Millions Except Per Share Amounts)
Years Ended Percent
December 31, Change
1993 1992
(Loss) Earnings Per Common Share:
(Loss) Income from Continuing Operations
Before Extraordinary Charge and
Accounting Changes ($.68) $ 2.56 (126.6%)
Discontinued Operations (.16) ( .08)
(Loss) Income Before Extraordinary
Charge and Accounting Changes (.84) 2.48 (133.9%)
Extraordinary Charge (.69) (0.04)
Cumulative Effect of Accounting
Changes (3.46) -
(Loss) Earnings Per Common Share ($4.99) $ 2.44
SNET
Preliminary Summary of Consolidated Results
Years ended December 31
(in Millions Except Per Share Amounts)
Years Ended Percent
December 31, Change
1993 1992
WATS Message Volumes 112.9 123.3 (8.4%)
TOLL Message Volumes 411.1 402.9 2.0%
Access Lines in Service 1,964 1,937 1.4%
Interstate Minutes of Use 6,522 6,206 5.1%
Common Equity at Period End $855 $1,254 (31.8%)
Common Shares Outstanding at
Quarter End (in thousands) 63,850 63,359 .8%
Book Value Per Common Share
at Period End $13.38 $19.79 (32.4%)
Average Common Shares Outstanding 63,692 63,073 1.0%
(in thousands)
Debt Ratio at Period End 59.9% 47.4% 26.4%
