-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DTLcGm8I+Pxzl0yg3Bjis57aLWafPRfTYobFwgvnTngK0KvB/VU0zaWG/ZMm/IIK 8PIeswXW70I59YYuDLQa9Q== 0000732713-96-000001.txt : 19960201 0000732713-96-000001.hdr.sgml : 19960201 ACCESSION NUMBER: 0000732713-96-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960122 ITEM INFORMATION: Other events FILED AS OF DATE: 19960131 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BELLSOUTH CORP CENTRAL INDEX KEY: 0000732713 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 581533433 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08607 FILM NUMBER: 96509587 BUSINESS ADDRESS: STREET 1: 1155 PEACHTREE ST NE CITY: ATLANTA STATE: GA ZIP: 30367 BUSINESS PHONE: 4042492000 8-K 1 4 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: January 22, 1996 BELLSOUTH CORPORATION (Exact name of registrant as specified in its charter) Georgia 1-8607 58-1533433 (State or other (Commission (IRS Employer jurisdiction of File Number) Identification incorporation) No.) 1155 Peachtree Street, N. E., Atlanta, Georgia 30309-3610 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code(404) 249-2000 Item 5. Other Events BellSouth Corporation reported that earnings per share (EPS) showed a loss of 16 cents in the final quarter of 1995 including special charges for previously announced workforce reductions and debt refinancings. EPS excluding special items increased 9.6 percent in the fourth quarter of 1995, reaching 57 cents. In the fourth quarter of the prior year, EPS was 56 cents including a gain of 4 cents. On a reported basis, the fourth quarter showed a net loss of $161 million in 1995, versus net income of $558 million in 1994. Net income excluding special items was $564 million, up 8.9 percent compared with the same quarter of 1994. BellSouth's revenue grew in the fourth quarter. Quarterly revenues of $4.76 billion were up 8.4 percent compared with the same quarter of 1994. Revenues in 1995 reached $17.9 billion, increasing 6.2 percent from the previous year. BellSouth added 302,900 cellular customers in the U.S. during the fourth quarter, and its annual increase in access lines exceeded 900,000 in 1995. Sales of Caller ID increased 124 percent in 1995, small business access lines jumped 9.0 percent, and large business lines were up 6.7 percent for the year. The number of BellSouth cellular customers in the U.S. grew 32 percent in 1995, and the company ended the year with 2,847,400 customers. BellSouth's international cellular markets grew 81 percent, and the company served 654,900 customers at December 31. BellSouth's access lines in the U.S. grew a 4.5 percent rate during 1995. The company surpassed 21 million access lines with an annual increase of 913,100. Second lines increased 21 percent, and accounted for nearly half of all new residential hook-ups in 1995. Second lines total nearly 1.3 million. BellSouth markets additional lines to satisfy the growing customer demand for access to the Internet, telecommuting and home offices, in-home fax machines, and children's phones. Operating expenses increased 8.8 percent in the fourth quarter, reflecting the short-run costs of promotions which generated the high volumes of new business. Expenses also reflected the impact of two one-time events - BellSouth's recent brand name change, and service restoration after Hurricane Opal in October. Cash operating expenses in BellSouth's telephone operations increased 1.5 percent in 1995. In addition to the 1995 workforce and refinancing charges, reported earnings for the year reflected a previously announced charge of $2.73 per share related to BellSouth discontinuing Statement of Financial Accounting Standards No.71. On a reported basis, EPS was a loss of $1.24 per share in 1995. In 1994, BellSouth reported earnings per share of $2.18. Excluding special items in both periods, BellSouth's EPS for the year was $2.24 in 1995, compared with $2.07 in 1994. Net income excluding special items increased 8.5 percent in 1995, to $2.23 billion. On a reported basis, net income was a loss of $1.23 billion. Reported net income in 1994 was $2.16 billion. BellSouth Corporation's Board of Directors announced that John L. Clendenin, chairman of the board, president and chief executive officer of BellSouth, will retire at the end of 1996 and that F. Duane Ackerman, currently vice chairman and chief operating officer of the corporation, will succeed him as CEO and president of the company. Clendenin will remain as a non-employee chairman through 1997. PRELIMINARY JANUARY 22, 1996 BELLSOUTH CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In Millions, Except Per Share Amounts) For the Three For the Year Months Ended Ended December 31, December 31, 1995 1994 1995 1994 Unaudited Unaudited Operating Revenues: Network and related services Local service $1,875 $1,746 $ 7,294 $6,863 Interstate access 869 789 3,275 3,127 Intrastate access 201 221 884 908 Toll 242 291 1,009 1,190 Wireless communications 704 589 2,592 2,067 Directory advertising and 569 451 1,677 1,556 publishing Other services 305 308 1,155 1,134 Total Operating Revenues 4,765 4,395 17,886 16,845 Operating Expenses: Cost of services and products 1,654 1,537 6,184 6,043 Depreciation and amortization 887 846 3,455 3,259 Selling, general and administrative 1,099 962 3,873 3,485 Work force reduction charges 1,082 -- 1,082 -- Total Operating Expenses 4,722 3,345 14,594 12,787 Operating Income 43 1,050 3,292 4,058 Interest Expense 192 170 724 666 Other Income (Expense), net (31) (14) 20 11 Income (Loss) Before Income Taxes and Extraordinary Losses (180) 866 2,588 3,403 Provision for Income Taxes (81) 308 1,024 1,243 Income (Loss) Before Extraordinary Losses (99) 558 1,564 2,160 Extraordinary Loss for Discontinuance of Statement of Financial Accounting Standards No. 71, net of tax -- -- (2,718) -- Extraordinary Loss on Early Extinguishment of Debt, net of tax (62) -- (78) -- Net Income (Loss) $ (161) $ 558 $(1,232) $2,160 PRELIMINARY JANUARY 22, 1996 BELLSOUTH CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Continued) (In Millions, Except Per Share Amounts) For the Three For the Year Months Ended Ended December 31, December 31, 1995 1994 1995 1994 Unaudited Unaudited Weighted Average Common Shares Outstanding 993 992 993 992 Dividends Declared Per Common Share $.36 $.345 $1.41 $1.38 Earnings Per Share: Income (Loss) Before Extraordinary Losses $(.10) $.56 $1.57 $2.18 Extraordinary Loss for Discontinuance of Statement of Financial Accounting -- Standards No. 71, net of tax -- -- (2.73) Extraordinary Loss on Early Extinguishment of Debt, net of tax (.06) -- (.08) -- Earnings (Loss) Per Share $(.16) $.56 $(1.24) $2.18 PRELIMINARY JANUARY 22, 1996 BELLSOUTH CORPORATION CONSOLIDATED BALANCE SHEETS (In Millions, Except Per Share Amounts) December 31, 1995 1994 Unaudited ASSETS Current Assets: Cash and cash equivalents $1,711 $606 Temporary cash investments 71 51 Accounts receivable, net of allowance for uncollectibles of $171 and $154 3,772 3,127 Material and supplies 430 490 Other current assets 521 454 6,505 4,728 Investments and Advances 2,418 2,532 Property, Plant and Equipment, net 21,092 25,162 Deferred Charges and Other Assets 338 535 Intangible Assets, net 1,527 1,440 Total Assets $31,880 $34,397 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Debt maturing within one year: Debentures to be redeemed in January 1996 $ 485 $ -- Other 2,466 2,019 Accounts payable 1,724 1,378 Other current liabilities 2,715 3,101 7,390 6,498 Long-Term Debt 7,924 7,435 Deferred Credits and Other Liabilities: Accumulated deferred income taxes 1,650 3,647 Unamortized investment tax credits 355 443 Other liabilities and deferred credits 2,736 2,006 4,741 6,096 Shareholders' Equity: Common stock, $1 par value 1,007 503 Paid-in capital 7,619 8,064 Retained earnings 4,099 6,721 Shares held in trust (374) (336) Guarantee of ESOP debt (526) (584) 11,825 14,368 Total Liabilities and Shareholders' Equity $31,880 $34,397 PRELIMINARY (UNAUDITED) January 22, 1996 BELLSOUTH FINANCIAL HIGHLIGHTS SELECTED DATA Three Months Three Months Ended Ended December 31, 1995 December 31, 1994 Return to average common equity (annualized) (5.3%) 15.7% Return to average total capital(annualized) (0.2%) 11.7% Weighted average common shares outstanding (millions) 993 992 Earnings per share $(.16) $.56 Dividends per share $ .36 $.345 Property additions (millions) $1,332 $969 At December 31, 1995 1994 Common shares outstanding (millions) 994 992 Debt ratio 46.7% 39.3% Total employees 87,571 92,121 PRELIMINARY (UNAUDITED) January 22, 1996 BELLSOUTH FINANCIAL HIGHLIGHTS SELECTED DATA Year Ended Year Ended December 31, 1995 December 31, 1994 Return to average common equity (9.2%) 15.4% Return to average total capital (2.7%) 11.5% Weighted average common shares outstanding (millions) 993 992 Earnings per share $(1.24) $2.18 Dividends per share $ 1.41 $1.38 Property additions (millions) $4,092 $3,673 PRELIMINARY JANUARY 22, 1996 BELLSOUTH TELECOMMUNICATIONS, INC. CONSOLIDATED STATEMENTS OF INCOME (In Millions) For the Three For the Year Months Ended Ended December 31, December 31, 1995 1994 1995 1994 Unaudited Unaudited Operating Revenues: Network and related services Local service $1,875 $1,746 $7,294 $6,863 Interstate access 869 789 3,275 3,127 Intrastate access 201 221 884 908 Toll 242 291 1,009 1,190 Other 592 515 2,078 1,952 Total Operating Revenues 3,779 3,562 14,540 14,040 Operating Expenses: Cost of services and products 1,374 1,284 5,268 5,235 Depreciation and amortization 779 761 3,065 2,954 Selling, general and administrative 651 580 2,344 2,263 Work force reduction charges 1,082 -- 1,082 -- Total Operating Expenses 3,886 2,625 11,759 10,452 Operating Income (107) 937 2,781 3,588 Interest Expense 148 141 573 549 Other Income, net 7 5 27 18 Income (Loss) Before Income Taxes and Extraordinary Losses (248) 801 2,235 3,057 Provision for Income Taxes (126) 281 818 1,105 Income (Loss) Before Extraordinary Losses (122) 520 1,417 1,952 Extraordinary Loss for Discontinuance of Statement of Financial Accounting Standards No. 71, net of tax -- -- (2,718) -- Extraordinary Loss on EarlyExtinguishment of Debt,net of tax (62) -- (78) -- Net Income (Loss) $ (184) $ 520 $(1,379) $1,952 PRELIMINARY (UNAUDITED) January 22, 1996 BELLSOUTH TELECOMMUNICATIONS FINANCIAL HIGHLIGHTS SELECTED DATA Three Months Ended Three Months Ended December 31, 1995 December 31, 1994 Property additions (millions) $959 $677 Access minutes of use (millions): Interstate 15,969 14,823 Intrastate 4,993 4,414 IntraLATA toll messages (millions) 323 388 Year Ended Year Ended December 31, 1995 December 31, 1994 Property additions (millions) $3,218 $3,109 Access minutes of use (millions): Interstate 62,411 57,778 Intrastate 19,197 16,888 IntraLATA toll messages (millions) 1,374 1,559 At December 31, 1995 1994 Debt ratio 51.9% 41.0% Telephone employees 68,585 73,764 Network access lines in service(thousands) 21,133 20,220 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. BELLSOUTH CORPORATION By: /s/RONALD M. DYKES Ronald M. Dykes Vice President, Chief Financial Officer and Comptroller January 31, 1996 -----END PRIVACY-ENHANCED MESSAGE-----