-----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, GMQAlRnJvVLSy5tYNW+mtKTV/65v5fFNLQ176DahHwPr/SOIt/Pk794jNRnCxAXZ 98Wfg25vcdOAKEqvBAUf7w== 0000893220-94-000061.txt : 19940210 0000893220-94-000061.hdr.sgml : 19940210 ACCESSION NUMBER: 0000893220-94-000061 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940121 ITEM INFORMATION: 5 FILED AS OF DATE: 19940209 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BELL ATLANTIC CORP CENTRAL INDEX KEY: 0000732712 STANDARD INDUSTRIAL CLASSIFICATION: 4813 IRS NUMBER: 232259884 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 34 SEC FILE NUMBER: 001-08606 FILM NUMBER: 94505225 BUSINESS ADDRESS: STREET 1: 1717 ARCH ST CITY: PHILADELPHIA STATE: PA ZIP: 19103 BUSINESS PHONE: 2159636000 8-K 1 FORM 8-K DATED JANUARY 21, 1994 1 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 21, 1994 Exact name of registrant as specified in its charter: BELL ATLANTIC CORPORATION Commission File No.: 1-8606 State of Incorporation: Delaware IRS Employer Identification No.: 23-2259884 Address of principal executive offices: 1717 Arch Street Philadelphia, Pennsylvania Zip Code: 19103 Registrant's telephone number, including area code: (215) 963-6000 Former name or former address, if changed since last report: N/A 2 Item 5. Other Events. Bell Atlantic Corporation (the Company) on January 21, 1994 announced that it was reporting 1993 earnings of $3.22 per share, which included a one-time, non-cash charge of $.19 per share, or $85.0 million, for the adoption of a change in the method of accounting for postemployment benefits, versus $3.13 per share in 1992. Excluding this charge and the impact of 1993 tax legislation, 1993 earnings per share would have been $3.44. In addition to the one-time, non-cash charge for the change in the method of accounting for postemployment benefits (Statement of Financial Accounting Standards No. 112 [FAS 112]) and a net decrease of $.03 per share, or $11.4 million, for the effect of 1993 federal tax legislation, results for 1993 also included extraordinary charges of $.13 per share, or $58.4 million, for early extinguishment of debt; and a net benefit of $.11 per share, or $51.0 million, for other previously reported items. Earnings for 1992 included a net charge of $.06 per share for previously disclosed items, including early extinguishment of debt. Net income for the year was $1.40 billion compared with $1.34 billion for 1992. After excluding the above special items in both years, net income would have been $1.51 billion for 1993 and $1.37 billion for 1992. For the fourth quarter of 1993, earnings were $.76 per share, or $333.1 million, which included an extraordinary charge of $.01 per share, or $4.1 million, for early extinguishment of debt and a net decrease of $.02 per share, or $8.0 million, for the effect of 1993 federal tax legislation. For the same period last year, earnings were $.74 per share, or $317.3 million, which included a $.02 per share extraordinary charge for early extinguishment of debt. The one-time charge for FAS 112 was recorded retroactively to the first quarter of 1993. The Company stated that results from its landline network and domestic wireless businesses give it confidence that it can expect continued growth from these operations in 1994. The Company's landline network business volumes and the demand for new products and services continue on an upward trend. Access minutes of use grew by 7.2 percent in 1993, and the Company reached the milestone of one million Answer Call subscribers. In the Company's wireless business, results were dramatically higher than last year. The cellular subscriber base grew nearly 49 percent, surpassing the one million mark, and revenue growth exceeded 30 percent for the year. Wireless operations reported a total of approximately 1.04 million subscribers at the end of 1993, an increase of 340,700 over 1992. In the network services companies, access lines at the end of the year totalled 18.6 million, an increase of 464,600 lines, or 2.6 percent, versus the end of 1992. Business access 3 lines increased 4.1 percent and Centrex access lines increased 4.2 percent over totals at the end of 1992. Total minutes of use increased 7.2 percent and message toll service volumes increased 3.4 percent over 1992. Bell Atlantic's total operating revenues for 1993 were $12.99 billion, an increase of 2.1 percent compared with $12.72 billion for 1992, which included the impact of the continued de-emphasis of computer leasing and the disposition of a majority of the customer premises equipment business. Revenues in ongoing businesses, principally network and wireless, increased by 4.5 percent over 1992. Total operating expenses were $10.19 billion for 1993, compared with $10.21 billion for 1992. Excluding an increase of $128 million in depreciation, operating expenses decreased by 1.4 percent, or $147 million. The adoption of FAS 112 is not expected to have a significant effect on the Company's ongoing level of operating expense. 4 Item 7. Financial Statements and Exhibits. (c) Exhibits. The exhibit identified below is filed as an exhibit hereto. Exhibit 99: Unaudited condensed consolidated statements of income, unaudited other selected data and unaudited selected operating statistics for the three months and year ended December 31, 1993 and 1992. 5 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 hereunto duly authorized. BELL ATLANTIC CORPORATION By: /William O. Albertini/ William O. Albertini Vice President and Chief Financial Officer Date: January 21, 1994 6 Bell Atlantic Corporation File No. 1-8606 INDEX TO EXHIBITS The exhibit identified below is filed as an exhibit hereto. Exhibit 99: Unaudited condensed consolidated statements of income, unaudited other selected data and unaudited selected operating statistics for the three months and year ended December 31, 1993 and 1992. EX-99 2 CONDENSED CONSOLIDATED STATEMENTS OF INCOME 1 BELL ATLANTIC CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In millions, except per-share amounts)
Three months ended Year ended December 31 December 31 ------------------ ------------------- 1993 1992* 1993 1992* OPERATING REVENUES Communications and Related Services $3,194.5 $3,117.9 $12,534.8 $12,164.6 Financial, Real Estate, and Other Services 122.7 156.3 455.4 553.8 Total operating revenues 3,317.2 3,274.2 12,990.2 12,718.4 OPERATING EXPENSES Employee costs, including benefits and taxes 1,019.0 1,004.3 4,027.6 3,941.5 Depreciation and amortization 649.8 597.2 2,545.1 2,417.4 Other 1,041.2 1,154.6 3,619.9 3,853.3 Total operating expenses 2,710.0 2,756.1 10,192.6 10,212.2 OPERATING INCOME 607.2 518.1 2,797.6 2,506.2 Other income and expense, net 29.1 42.3 88.1 214.4 Interest expense, excluding Financial Services 141.3 162.3 612.1 694.9 Income before provision for income taxes, extraordinary item, and cumulative effect of changes in accounting principles 495.0 398.1 2,273.6 2,025.7 Provision for income taxes 157.8 70.6 792.0 643.5 Income before extraordinary item and cumulative effect of changes in accounting principles 337.2 327.5 1,481.6 1,382.2 Extraordinary item -- early extinguishment of debt, net of tax (4.1) (10.2) (58.4) (41.6) Cumulative effect of changes in accounting principles: Income taxes -- -- 65.2 -- Postemployment benefits, net of tax -- -- (85.0) -- Total cumulative effect of changes in accounting principles -- -- (19.8) -- NET INCOME $ 333.1 $ 317.3 $1,403.4 $1,340.6
- ------------------------- * Certain operating revenue and operating expense amounts for the three months and year ended December 31, 1992, have been reclassified to conform to 1993 classifications. These reclassifications had no effect on net income. 2 BELL ATLANTIC CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)--CONTINUED (In millions, except per-share amounts)
Three months ended Year ended December 31 December 31 ------------------ ------------------- 1993 1992 1993 1992 PER COMMON SHARE AMOUNTS Income before extraordinary item and cumulative effect of changes in accounting principles $.77 $.76 $3.39 $3.23 Extraordinary item -- early ex- tinguishment of debt, net of tax (.01) (.02) (.13) (.10) Cumulative effect of changes in accounting principles -- -- (.04) -- NET INCOME $.76 $.74 $3.22 $3.13 DIVIDENDS DECLARED PER COMMON SHARE $.67 $.65 $2.68 $2.60 WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING 437.5 434.5 436.3 433.0
OTHER SELECTED DATA - ------------------- December 31 ---------------- 1993 1992 ---- ---- Return on Average Common Equity Three months ended 16.0% 16.1% Year ended 17.3% 17.4% Total Assets (millions) $29,544.2 $28,099.5 Total Employees 73,600 71,400
3 BELL ATLANTIC CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In millions)
Year Ended December 31, 1993 1992* -------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $1,403.4 $1,340.6 Depreciation and amortization 2,545.1 2,417.4 Extraordinary item -- early extinguishment of debt, net of tax 58.4 41.6 Cumulative effect of changes in accounting principles 19.8 -- Other, net 207.3 108.1 NET CASH PROVIDED BY OPERATING ACTIVITIES 4,234.0 3,907.7 NET CASH USED IN INVESTING ACTIVITIES (2,936.3) (1,995.8) NET CASH USED IN FINANCING ACTIVITIES (1,447.6) (1,747.6) Increase (Decrease) in Cash and Cash Equivalents (149.9) 164.3 Cash and Cash Equivalents, Beginning of Year 296.0 131.7 Cash and Cash Equivalents, End of Year $146.1 $296.0
* Certain amounts have been reclassified to conform to 1993 classifications. 4 BELL ATLANTIC MOBILE SELECTED OPERATING STATISTICS (UNAUDITED) (In thousands, except percentages and revenue per subscriber)
December 31 ---------------- 1993 1992 Percent Change ---- ---- -------------- Total Owned POPs 35,238 34,200 3.0 Controlled MSA POPs 27,883 27,400 1.8 Controlled RSA POPs(1) 3,706 3,262 13.6 Subscribers in Controlled Markets 964.9 651.3 48.2 Controlled Penetration(2) 3.05% 2.12% 43.8 Total Subscribers(3) 1,039.1 698.4 48.8 Fourth-Quarter Cellular Operations Revenue $223,197 $163,500 36.5 Year-to-Date Cellular Operations Revenue $773,448 $586,124 32.0 Fourth-Quarter Cellular Operations Revenue per Subscriber per Month(3) $77 $83 (7.2) Year-to-Date Cellular Operations Revenue per Subscriber per Month(3) $77 $83 (7.2)
Uncollectibles for the quarter ended December 31, 1993, were less than 2 percent of total revenue, and average monthly churn for the quarter was less than 2 percent of the total customer base (as defined in footnote #3). - ------------------------- (1) Bell Atlantic Mobile incorrectly reported 3,700 controlled RSA POPs in the fourth quarter of 1992. (2) Subscribers in controlled markets (MSA and RSA) as a percent of population in those markets. Prior to January 1993, Bell Atlantic Mobile reported penetration as subscribers in controlled markets (MSA and RSA) as a percent of population in controlled MSA markets only. (3) Includes customers from reseller operation. -----END PRIVACY-ENHANCED MESSAGE-----