SNET News Release
227 Church Street
New Haven, Connecticut 06510
October 23, 1995
FOR FURTHER INFORMATION CONTACT: Bill Seekamp
203-771-2136
SNET REPORTS THIRD QUARTER EARNINGS
Southern New England Telecommunications Corporation
(SNET) -- (NYSE: SNG) announced today that consolidated net
income for the third quarter of 1995 was $41 million or
$0.64 per share, reflecting dilution of $0.15 per share from
the major cellular acquisitions completed in July. In the
third quarter last year net income was $47 million or $0.73
per share.
"But for the expected cellular dilution, this marks our
seventh consecutive quarter of growth," said Daniel J.
Miglio, SNET chairman and chief executive officer. He added,
"We have made important progress in moving toward our
strategic vision of SNET as a premier provider of information,
communication, and entertainment services. The cellular
acquisitions are one major example of how we are capitalizing
on long-term growth opportunities. We are positioning
ourselves for an exciting future."
Consolidated revenues and sales for the third quarter
were up 10 percent to $472 million. Southern New England
Telephone revenue, at $384 million, was up 4 percent
primarily because of growth in access lines in service.
SNET's other businesses had strong sales growth in the third
quarter. Wireless sales rose from $26 million in the third
quarter of 1994 to $46 million. The cellular acquisitions
accounted for $11 million of the increase. The customer
base in the wireless business continued its rapid growth,
soaring 67 percent in SNET's preacquisition business. With
the new customers resulting from the cellular purchases, the
customer base increased a total of 117 percent. In
addition, sales grew to $12 million for SNET America, the
company's interstate and international long-distance
subsidiary.
Consolidated operating and maintenance expenses, which
exclude depreciation, were up 18 percent. Operating and
maintenance expenses in the telephone subsidiary were
relatively flat -- up $2 million. They increased $42
million in SNET's other businesses to support growth
primarily in wireless, including this business's newly
expanded coverage area, and also to promote growth in long
distance, and multimedia.
Depreciation and amortization expense increased 8
percent, principally because of the newly acquired cellular
properties. Interest expense increased $6 million, mainly
due to $7 million of interest on the financing for the
cellular acquisitions.
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.
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SNET
Preliminary Summary of Consolidated Results
For the Three Months Ended September 30, 1995
(in Millions Except Per Share Amounts)
(Unaudited)
For the 3 Months Ended Percent
September 30, Change
1995 1994
INCOME STATEMENT
Revenues and Sales $ 471.5 $ 429.6 10%
Costs and Expenses:
Operating and maintenance 279.6 236.0
Depreciation and amortization 88.3 81.6
Taxes other than income 14.7 13.9
Total Costs and Expenses 382.6 331.5 15%
Operating Income 88.9 98.1 (9)%
Interest 24.3 18.4 32%
Income Before Income Taxes 64.6 79.7 (19)%
Income taxes 23.3 32.5 (28)%
Net Income $ 41.3 $ 47.2 (13)%
Weighted Average Common Shares
Outstanding (in thousands) 64,957 64,271 1%
Earnings Per Share $ 0.64 $ 0.73 (12)%
STATISTICS
Access Lines in Service 2,052 1,997 3%
(in thousands)
Interstate Minutes of Use 1,817 1,702 7%
(in millions)
(Unaudited)
Sept. 30, Dec. 31, Percent
1995 1994 Change
BALANCE SHEET
Common Equity at Period End $1,019.7 $ 952.9 7%
Book Value Per Common Share
at Period End $ 15.70 $ 14.77 6%
SNET
Preliminary Summary of Consolidated Results
For the Nine Months Ended September 30, 1995
(in Millions Except Per Share Amounts)
(Unaudited)
For the 9 Months Ended Percent
September 30, Change
1995 1994
INCOME STATEMENT
Revenues and Sales $1,367.6 $1,280.6 7%
Costs and Expenses:
Operating and maintenance 797.0 708.9
Depreciation and amortization 255.3 243.6
Taxes other than income 42.5 42.5
Total Costs and Expenses 1,094.8 995.0 10%
Operating Income 272.8 285.6 (4)%
Interest 61.3 57.2 7%
Income Before Income Taxes 211.5 228.4 (7)%
Income taxes 83.4 92.4 (10)%
Net Income $ 128.1 $ 136.0 (6)%
Weighted Average Common Shares
Outstanding (in thousands) 64,800 64,130 1%
Earnings Per Share $ 1.98 $ 2.12 (7)%
STATISTICS
Access Lines in Service 2,052 1,997 3%
(in thousands)
Interstate Minutes of Use 5,420 5,157 5%
(in millions)
(Unaudited)
Sept. 30, Dec. 31, Percent
1995 1994 Change
BALANCE SHEET
Common Equity at Period End $1,019.7 $ 952.9 7%
Book Value Per Common Share
at Period End $ 15.70 $ 14.77 6%