-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, jwUHrOXGcNghSMWaaGShXnr/uddvS6vUVUz2jZj0H2O/DSVerp1HXk0lsSAZ9xAP JgUUsvVRCoHcWPeh0pH89Q== 0000022698-94-000010.txt : 19940427 0000022698-94-000010.hdr.sgml : 19940427 ACCESSION NUMBER: 0000022698-94-000010 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940415 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19940426 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMSAT CORP CENTRAL INDEX KEY: 0000022698 STANDARD INDUSTRIAL CLASSIFICATION: 4899 IRS NUMBER: 520781863 STATE OF INCORPORATION: DC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04929 FILM NUMBER: 94524536 BUSINESS ADDRESS: STREET 1: 6560 ROCK SPRING DR CITY: BETHESDA STATE: MD ZIP: 20817 BUSINESS PHONE: 301-214-30 MAIL ADDRESS: STREET 1: 6560 ROCK SPRING DRIVE CITY: BETHESDA STATE: MD ZIP: 20817 FORMER COMPANY: FORMER CONFORMED NAME: COMMUNICATIONS SATELLITE CORP /DE/ DATE OF NAME CHANGE: 19930719 8-K 1 PRESS RELEASE AND FINANCIALS 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 15, 1994 COMSAT Corporation (Exact name of Registrant as specified in Charter) District of Columbia 1-4929 52-0781863 (State or other juris- (Commission (IRS Employer diction of incorporation File Number) Identification Number) 6560 Rock Spring Drive, Bethesda, MD 20817 (Address of principal executive offices) Zip Code Registrant's telephone number, including area code (301) 214-3000 Not applicable. (Former name or former address, if changed since last report). Page 1 Item 5. Other Events Attached to this report as Exhibit 20, and incorporated by reference in this item, is a Press Release of the Corporation, distributed on April 15, 1994, describing the Corporation's financial results for the quarter ending March 31, 1994. Item 7. Financial Statements and Exhibits (c) Exhibits (listed according to the number assigned in Item 601 of Regulation S-K). Exhibit No. Description 20 Press Release dated April 15, 1994. Page 2 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 hereunto duly authorized. COMSAT Corporation By: /s/ Allen E. Flower ------------------------- Allen E. Flower Controller Date: April 18, 1994 Page 3 EXHIBIT INDEX Exhibit No. Description Page 20 Press Release dated April 15, 1994. 5 Page 4 EXHIBIT 20 NEWS RELEASE FROM: COMSAT Corporation 6560 Rock Spring Drive Bethesda, MD 20817 PHONE: 301 214 3658 FAX: 301 214 7130 DATE: April 15, 1994 COMSAT REPORTS FIRST QUARTER 1994 RESULTS AND DECLARES DIVIDEND BETHESDA, MD - COMSAT Corporation (NYSE:CQ) today reported record first quarter 1994 revenues of $169.5 million, up two percent over the $166.3 million reported for the same period a year earlier. Net income was $18.3 million, or 45 cents per share, compared to the same numbers for the first quarter of 1993 -- before the cumulative effect for the change in tax accounting. "We are committed to achieving our goal of double-digit growth in earnings for the year," said Bruce L. Crockett, President and CEO. "We are continuing to look for additional opportunities to enhance revenues and have implemented cost- containment programs." COMSAT Video Enterprises, Inc. (CVE) saw revenues grow 20 percent, from $21.7 million a year ago to $26.1 million in the first quarter of this year. Operating income was $2.2 million, slightly less than a year ago, based on depreciation costs and severe winter weather along the East Coast and the California earthquake that hindered the rate of installations and sales. The total number of installed and backlog hotel rooms for the On Command Video service reached 293,000 in the first quarter, compared to 111,000 for the same period last year. Revenues in the International Communications segment, which includes COMSAT World Systems (CWS) and COMSAT International Ventures (CIV), were $63.9 million, or about $1 million less than a year ago. An increase in traffic was offset by rate cuts in long-term contracts. Operating income was down 21 percent to $22.0 million -- largely due to a depreciation increase of 14 percent, resulting from the launch of the first INTELSAT VII satellite in the fourth quarter of 1993. COMSAT Mobile Communications (CMC) revenues fell by 12 percent to $44 million from $50.0 million a year earlier. The drop was due primarily to a decrease in traffic from a year earlier when world events such as the crisis in (more) Page 5 COMSAT -- Q1'94 RESULTS -- page two 4/15/94 Somalia result in record system usage, and also was offset by price cuts and conversions to digital service. Operating income was off 23 percent, $13.0 million to $10.0 million, from the same period a year ago due to lower revenues and additional depreciation. Crockett said rate reductions in both CWS and CMC "were factored into our financial planning and we expect improved results for the remainder of the year." He said the company's belief that lower rates will stimulate demand has already begun to show up in World System's traffic. COMSAT Technology Services (CTS) revenues increased 21 percent to $24.3 million from $20.1 million a year earlier. Operating income increased $2.1 million from the first quarter of 1993. The CTS merger with Radiation Systems, Inc. of Sterling, VA, will be completed in the second quarter of 1994. The new business unit will be called COMSAT RSI. Other corporate revenues were up $1.6 million, primarily due to the success of the company's NBA Denver Nuggets, which showed paid attendance, ticket sales and net gate receipts sharply higher than a year earlier, when bond redemption costs were incurred. The Board of Directors declared a regular quarterly dividend of 18.5 cents per share, payable June 13, 1994, to shareholders of record May 13, 1994. This is the 95th consecutive quarterly dividend declared by the corporation. COMSAT Corporation (NYSE:CQ) is an international communications, information and entertainment-distribution services company. It provides voice, video and data services to customers worldwide by fixed and mobile technologies and is the largest owner and user of the global INTELSAT and Inmarsat communications satellite networks. COMSAT Corporation also furnishes satellite systems integration, wireless networks and technical consulting; offers on-demand entertainment and information services to the hospitality industry, and owns the NBA Denver Nuggets. # # # COMSAT CONTACTS: - ---------------- Mike Troiano Investor Relations (301) 214-3244 Joe Tomkowicz News Media (301) 214-3658 Page 6 COMSAT CORPORATION CONSOLIDATED INCOME STATEMENTS (UNAUDITED) (in millions except per share amounts)
For The Three Months Ended -------------------------- March 31, March 31, 1994 1993 -------- -------- REVENUES $169.5 $166.3 ------ ------ OPERATING EXPENSES: Cost of Services 88.4 87.1 Depreciation and Amortization 39.3 33.5 Research and Development 2.6 3.2 General and Administrative 5.4 5.3 ------ ------ Total Operating Expenses 135.7 129.1 ------ ------ OPERATING INCOME 33.8 37.2 OTHER INCOME (EXPENSE), NET 1.1 (1.2) INTEREST INCOME 0.2 0.2 INTEREST COST (11.8) (11.9) INTEREST CAPITALIZED 5.7 5.1 ------ ------ INCOME BEFORE TAXES AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE 29.0 29.4 INCOME TAX EXPENSE (10.7) (11.1) ------ ------ INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 18.3 18.3 CUMULATIVE EFFECT OF ACCOUNTING CHANGE FOR INCOME TAXES - 1.3 ------ ------ NET INCOME $18.3 $19.6 ====== ====== EARNINGS PER COMMON SHARE: Before cumulativ effect of accounting change $0.45 $0.45 Cumulative effect of accounting change - 0.03 ------- ------- Net income $0.45 $0.48 ======= ======= AVERAGE SHARES 41.0 40.3 Note: Average share and per share amounts have been restated for a two-for-one stock split in 1993.
Page 7 COMSAT CORPORATION OPERATING RESULTS BY BUSINESS SEGMENT (UNAUDITED) (in millions)
1993 1994 -------------------------------- ----- QTR 1 QTR 2 QTR 3 QTR 4 TOTAL QTR 1 ----------------------------------------- INTERNATIONAL COMMUNICATIONS $64.9 $63.5 $61.7 $59.8 $249.9 $63.9 MOBILE COMMUNICATIONS 50.0 47.2 47.3 45.5 190.0 44.0 VIDEO ENTERPRISES 21.7 23.1 26.1 24.9 95.8 26.1 TECHNOLOGY SERVICES 20.1 19.7 18.7 29.8 88.3 24.3 ELIMINATIONS AND OTHER 9.6 0.6 (1.3) 7.5 16.4 11.2 ------------------------------------------ TOTAL REVENUES $166.3 $154.1 $152.5 $167.5 $640.4 $169.5 ====== ====== ====== ====== ====== ====== OPERATING INCOME (LOSS) INTERNATIONAL COMMUNICATIONS $27.9 $25.1 $22.4 $13.6 $89.0 $22.0 MOBILE COMMUNICATIONS 13.0 11.6 12.4 11.1 48.1 10.0 VIDEO ENTERPRISES (1) 2.3 2.6 3.6 3.2 11.7 2.2 TECHNOLOGY SERVICES (1.2) 0.2 0.4 1.3 0.7 0.9 OTHER (1) (4.8) (2.5) (2.1) (2.0) (11.4) (1.3) ------------------------------------------ TOTAL OPERATING INCOME $37.2 $37.0 $36.7 $27.2 $138.1 $33.8 ====== ===== ===== ===== ====== =====
(1) 1993 operating income results for Video Enterprises and Other have been restated for a change in the method of allocation division overhead costs. Page 8 COMSAT CORPORATION CONDENSED BALANCE SHEETS (UNAUDITED) (in millions)
March 31, December 31, 1994 1993 --------- ---------- CURRENT ASSETS: RECEIVABLES $148.4 $143.3 OTHER CURRENT ASSETS 42.0 35.2 -------- -------- TOTAL CURRENT ASSETS 190.4 178.5 -------- -------- PROPERTY IN SERVICE, NET 952.2 968.9 PROPERTY UNDER CONSTRUCTION 381.8 339.2 OTHER ASSETS 185.1 165.9 -------- -------- TOTAL ASSETS $1,709.5 $1,652.5 ======== ======== CURRENT LIABILITIES: CURRENT NOTES PAYABLE $154.4 $118.1 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 77.9 97.3 OTHER CURRENT LIABILITIES 35.8 62.4 -------- -------- TOTAL CURRENT LIABILITIES 268.1 277.8 -------- -------- LONG-TERM DEBT 437.6 402.4 OTHER NONCURRENT LIABILITIES 287.3 271.5 MINORITY INTEREST 23.2 21.4 EQUITY 693.3 679.4 -------- -------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $1,709.5 $1,652.5 ======== ========
Page 9 COMSAT CORPORATION CONDENSED CASH FLOW STATEMENTS (UNAUDITED) (in millions)
For The Three Months Ended -------------------------- March 31, March 31, 1994 1993 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $18.3 $19.6 Adjustment for Noncash Expenses - Depreciation and Amortization 39.3 33.5 Changes in Operating Assets and Liabilities (23.3) 8.2 Other (6.1) (4.5) ----- ----- Net Cash provided by Operating Activities 28.2 56.8 ----- ----- CASH FLOWS FOR INVESTING ACTIVITIES: Purchase of Property and Equipment (85.3) (44.5) Decrease in INTELSAT Ownership 6.6 9.7 Other (14.0) 3.0 ----- ----- Net Cash Used in Investing Activities (92.7) (31.8) ----- ----- CASH FLOWS FOR FINANCING ACTIVITIES: Dividends Paid (7.4) (7.3) Net Borrowings (Repayments) 76.8 (15.0) Other 2.8 2.7 ----- ----- Net Cash Provided by (Used for) Financing Activities 72.2 (19.6) ----- ----- NET INCREASE IN CASH AND CASH EQUIVALENTS 7.7 5.4 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 8.8 3.9 ----- ----- CASH AND CASH EQUIVALENTS, END OF PERIOD $16.5 $9.3 ===== =====
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