UNITED STATES
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 22, 1994
CENTURY TELEPHONE ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)
Louisiana 1-7784 72-0651161
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
100 Century Park Drive, Monroe, Louisiana 71203
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (318) 388-9500
Item 5. Other Events
The following press release was issued by Century Telephone
Enterprises, Inc. on April 22, 1994:
CENTURY TELEPHONE ENTERPRISES, INC.
NEWS RELEASE
FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT:
April 22, 1994 R. Stewart Ewing, Jr. (318) 388-9500
CENTURY TELEPHONE ENTERPRISES, INC. REPORTS
INCREASES IN FIRST QUARTER EARNINGS
Monroe, LA. . . . Century Telephone Enterprises, Inc. (NYSE Symbol:
CTL) reports increases in first quarter 1994 revenues, net income and
earnings per share as compared with the first quarter of 1993.
During the first quarter, consolidated revenues increased 24.9% to
$120,980,000 from $96,825,000 a year ago. Net income was up 22.0% to
$19,201,000 from $15,740,000 in the first quarter of 1993. Fully
diluted earnings per share increased to 35 cents per share compared
with 31 cents per share a year ago, a 12.9% increase on 5.5% additional
shares.
"First quarter increases are a result of the continued strength of
our telephone operations and improvements in cellular revenues and
operating efficiency," said Glen F. Post, III, President and Chief
Executive Officer.
Telephone revenues for the first quarter of 1994 increased 16.2% to
$91,770,000 from $78,951,000 a year ago, while operating income was up
19.7% to $30,890,000 from $25,800,000. Of the increases in revenue and
operating income, $5,453,000 and $1,751,000, respectively, resulted
from the acquisition of San Marcos Telephone Company in April, 1993.
Mobile communications revenues grew 63.4% to $29,210,000 from
$17,874,000 during the first quarter of 1993. Mobile communications
operating income increased 102.5% to $4,996,000 from $2,467,000 a year
ago.
"Growth in the number of cellular subscribers remained strong during
the first quarter of 1994 with additions exceeding the first quarter of
1993 by 88.5%," Post said. "In the first quarter we added 15,303 net
new customers, excluding the customer base added as a result of an
acquisition. The total number of cellular subscribers in majority owned
markets now exceeds 160,000."
Also during the first quarter, Century completed the acquisition of
Celutel, Inc. Celutel provides cellular service to approximately 28,000
customers in five cellular systems in metropolitan areas in Mississippi
and Texas that have a combined population of 1.4 million. With the
acquisition, Century gained more than 1 million pops (Century's portion
of the population based on ownership interest).
At the end of March, Century completed the acquisition of Kingsley
Telephone Co. which serves approximately 2,400 telephone access lines
in northern Michigan near other Century operations. With the
acquisition, Century also gained an additional 11% interest in the
cellular partnership which serves Rural Service Areas 3 and 5 in
northern Michigan and which Century operates.
Century Telephone, Inc. headquartered in Monroe, Louisiana, is a
diversified telecommunications company. Century is the 15th largest
local exchange telephone company and the 15th largest cellular operator
in the United States.
CENTURY TELEPHONE ENTERPRISES, INC.
FINANCIAL HIGHLIGHTS
THREE MONTHS ENDED MARCH 31, 1994 AND 1993
In thousands, except per share amounts INCREASE
1994 1993 (DECREASE)
------- ------- ----------
OPERATING REVENUES
Telephone $91,770 78,951 16.2%
Mobile communications 29,210 17,874 63.4%
------- ------
120,980 96,825 24.9%
------- ------
OPERATING EXPENSES BEFORE DEPRECIATION AND
AMORTIZATION
Telephone 43,825 38,254 14.6%
Mobile communications 19,836 13,102 51.4%
------ ------
63,661 51,356 24.0%
------ ------
OPERATING CASH FLOW (OPERATING INCOME PLUS DEPR.
& AMORT.)
Telephone 47,945 40,697 17.8%
Mobile communications 9,374 4,772 96.4%
------ ------
57,319 45,469 26.1%
------ ------
DEPRECIATION & AMORTIZATION
Telephone 17,055 14,897 14.5%
Mobile communications 4,378 2,305 89.9%
------ ------
21,433 17,202 24.6%
------ ------
OPERATING INCOME
Telephone 30,890 25,800 19.7%
Mobile communications 4,996 2,467 102.5%
------ ------
35,886 28,267 27.0%
OTHER INCOME (EXPENSE)
Interest expense (8,502) (6,912) 23.0%
Gain on sale of asset - 1,661 -
Earnings from unconsolidated
cellular partnerships 2,564 372 589.2%
Other income, net 191 947 (79.8%)
INCOME TAX EXPENSE (10,938) (8,595) 27.3%
-------- -------
NET INCOME $19,201 15,740 22.0%
======= ======
EARNINGS PER SHARE
Primary $ 0.36 0.32 12.5%
Fully diluted 0.35 0.31 12.9%
SHARES OUTSTANDING
Primary 52,817 49,658 6.4%
Fully diluted 57,478 54,460 5.5%
DIVIDENDS PER COMMON SHARE $0.0800 0.0775 3.2%
CAPITAL EXPENDITURES $47,750 26,629 79.3%
CENTURY TELEPHONE ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1994 AND 1993
MAR. 31, DEC. 31,
1994 1993
-------- --------
(expressed in
thousands)
ASSETS
CURRENT ASSETS $ 75,000 72,472
------- -------
PROPERTY, PLANT AND EQUIPMENT
Telephone 1,012,706 979,449
Mobile communications 138,317 113,252
Other 79,176 77,737
Accumulated depreciation (358,994) (342,662)
--------- -------
Net property, plant and equipment 871,205 827,776
--------- -------
INVESTMENTS AND OTHER ASSETS
Excess cost of net assets acquired 440,209 297,158
Other 132,185 121,984
------- -------
Total investments and other assets 572,394 419,142
------- -------
TOTAL ASSETS $ 1,518,599 1,319,390
========= =========
LIABILITIES AND EQUITY
CURRENT LIABILITIES $ 275,877 179,206
LONG-TERM DEBT 489,971 460,933
DEFERRED CREDITS AND OTHER LIABILITIES 173,353 165,483
STOCKHOLDERS' EQUITY 579,398 513,768
--------- ---------
TOTAL LIABILITIES AND EQUITY $ 1,518,599 1,319,390
========= =========
MAR. 31, MAR. 31, %
1994 1993 INC.
-------- -------- -----
TELEPHONE ACCESS LINES 441,289 400,896 10.1%
CELLULAR UNITS IN SERVICE-
MAJORITY-OWNED MARKETS 160,283 81,201 97.4%
Item 7. Exhibit
12 Statement regarding computation of ratio of earnings to
fixed charges.
EXHIBIT 12
CENTURY TELEPHONE ENTERPRISES, INC.
RATIO OF EARNINGS TO FIXED CHARGES
FOR THE THREE MONTHS ENDED MARCH 31, 1993 AND 1994
3 Months Ended March 31,
------------------------
1993 1994
-------- --------
(in thousands, except
for ratios)
Net income $15,740 19,201
Income taxes 8,595 10,938
------ ------
Income before income taxes 24,335 30,139
Adjustments to earnings:
Fixed charges 6,912 8,502
Capitalized interest 2 (3)
Gross earnings from
cellular partnerships (622) (2,609)
Distributed earnings from unconsolidated
cellular partnerships 327 929
Gross losses from unconsolidated
cellular partnerships 250 45
Minority losses from majority-owned
subsidiaries (49) (122)
------ ------
Earnings as adjusted $31,155 36,881
====== ======
Fixed charges:
Interest expense $ 6,912 8,502
====== ======
Ratio of earnings to fixed charges 4.51 4.34
====== ======
SIGNATURE
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.
CENTURY TELEPHONE ENTERPRISES, INC.
BY: /s/ Murray H. Greer
__________________________________
Murray H. Greer
Controller
Dated: April 29, 1994