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 20, 1995
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 announced yesterday that 1995 first quarter net income rose
7 percent to $47 million or $0.72 per share compared with $44 million or
$0.68 per share for the same period last year.
Consolidated revenues and sales were up 5 percent to $443 million for
the quarter.
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.
Exhibit 20. News release issued April 20, 1995.
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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: April 21, 1995 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 April 20, 1995.
SNET NEWS RELEASE
April 20, 1995
FOR FURTHER INFORMATION CONTACT: Bill Seekamp
(203) 771-2136
SNET ANNOUNCES FIRST QUARTER NET INCOME UP SEVEN PERCENT
Southern New England Telecommunications Corporation
(SNET) -- (NYSE: SNG) -- announced today that first
quarter net income for 1995 rose 7 percent to $47
million or $0.72 per share compared with $44 million
or $0.68 per share for the same period last year.
"This is our fifth consecutive quarter of growth.
We are rapidly transforming SNET into a major
information-age contender offering world-class
customer service," said Daniel J. Miglio, SNET
chairman and chief executive officer.
"Our telephone operations continue on a steady
course. Our objectives there and throughout the
company are to grow revenues while we control costs.
Our other businesses continue to demonstrate
significant growth. The wireless business has
achieved an 87 percent growth rate in its customer
base. In addition, our agreement to purchase cellular
properties that will expand our coverage area 70
percent continues on track for an anticipated closing
this summer. I am also pleased that we have reached a
tentative, early settlement on a new labor contract
that covers the majority of SNET's employees."
Consolidated revenues and sales for the first
quarter were up 5 percent to $443 million. Southern
New England Telephone revenue, at $373 million, was
flat. All of SNET's other businesses had a very good
quarter with sales overall climbing 29 percent. After
a record year in 1994, the cellular business continued
its strong showing for the first quarter of 1995.
Sales jumped 39 percent from last year's first quarter
on a surging customer base. SNET America also had
strong sales, and its customer base continues to grow.
Consolidated operating and maintenance expenses,
which exclude depreciation, were up 7 percent.
Expenses in the telephone subsidiary declined $11
million or 6 percent mainly because of the company's
successful cost-containment efforts. Expenses rose $27
million or 68 percent for SNET's other subsidiaries to
support growth in the wireless and long-distance
businesses and for the multimedia trial.
Higher depreciation rates and increased wireline
and wireless network investment resulted in a 3
percent rise in depreciation and amortization expense.
Interest expense dropped 9 percent because of reduced
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 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 March 31, 1995
(in Millions Except Per Share Amounts)
(Unaudited)
For the Three Months Ended Percent
March 31 Change
1995 1994
INCOME STATEMENT
Revenues and Sales $443.1 $423.2 5%
Costs and Expenses
Operating and maintenance 251.6 235.4
Taxes other than income 13.5 14.2
Total Costs and Expenses 265.1 249.6 6%
Operating Earnings 178.0 173.6 3%
Depreciation and Amortization 83.4 80.7 3%
Interest 18.0 19.8 (9)%
Income Before Income Taxes 76.6 73.1 5%
Income taxes 29.9 29.6 1%
Net Income $ 46.7 $ 43.5 7%
Weighted Average Common Shares
Outstanding (in thousands) 64,641 63,982 1%
Earnings Per Share $ .72 $ .68 6%
STATISTICS
Access Lines in Service 2,025 1,979 2%
(in thousands)
Interstate Minutes of Use 1,804 1,712 5%
(in thousands)
(Unaudited)
March 31, December 31, Percent
1995 1994 Change
BALANCE SHEET
Common Equity at Period End $979.0 $952.9 3%
Book Value Per Common Share at
Period End $15.14 $14.77 3%
Debt Ratio at Period End 50.0% 51.0% (2)%
