Alltel Posts Record Growth in Third Quarter; Expects to Close Merger with TPG Capital, Goldman Sachs Before Year End.LITTLE ROCK, Ark. -- Alltel achieved record growth in the third quarter as the company reached new milestones in wireless revenues and post-pay net additions. Alltel reported fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of under Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) of 81 cents and fully diluted earnings per share of 80 cents from current businesses, a 33 percent increase from a year ago. "The Alltel team produced another record quarter as we surpassed $2 billion in quarterly wireless service revenues for the first time and achieved post-pay net adds of 213,000, more than doubling post-pay growth over the same period last year," said Alltel President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Scott Ford. "As to our pending merger with TPG TPG Texas Pacific Group TPG Tapping TPG Transports Publics Genevois (Geneva, Switzerland public transportation) TPG Test Pattern Generator TPG TNT Post Group TPG Trésorier Payeur Général Capital and Goldman Sachs, we are very pleased with the progress we have made on this transaction and expect it to close before year-end." Among the highlights for the third quarter: * Revenues were $2.3 billion, a 14 percent increase from a year ago. Net income under GAAP was $283 million, a 51 percent increase. Net income from current businesses was $279 million, a 21 percent increase from a year ago. * Total net additions were 205,000, up 103 percent. Post-pay net adds were 213,000, a 182 percent increase from a year ago. * Wireless service revenue was $2.1 billion, an increase of 15 percent from a year ago. * Post-pay churn was 1.31 percent and total churn was 1.90 percent. This is the seventh consecutive quarter that both metrics have improved year-over-year. * Average revenue per wireless customer (ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. ) was $55.96, a 4 percent increase from last year. Data revenue per customer was $6.36, up 70 percent from last year and 13 percent sequentially. * Equity free cash flow from current businesses was $347 million, a 62 percent increase. Net cash provided from operations was $726 million, a 105 percent increase from last year. Upon closing of the pending merger with TPG Capital and Goldman Sachs, Alltel shareholders will receive $71.50 per share in cash. Alltel is awaiting Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. approval and the company expects a favorable FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. vote soon. Alltel operates America's largest wireless network, which delivers voice and advanced data services nationwide to 12 million customers. Headquartered in Little Rock, Ark., Alltel is a Forbes 500 company with annual revenues of nearly $8 billion. Alltel claims the protection of the safe-harbor for forward-looking statements contained in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements are subject to uncertainties that could cause actual future events and results to differ materially from those expressed in the forward-looking statements. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events and results. Actual future events and results may differ materially from those expressed in these forward-looking statements as a result of a number of important factors. Representative examples of these factors include (without limitation) occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement with TPG and GS Capital; the inability to complete the merger due to the failure to satisfy certain conditions, including the receipt of all regulatory approvals related to the merger; risks that the proposed transaction disrupts current plans and operations; adverse changes in economic conditions in the markets served by Alltel; the extent, timing, and overall effects of competition in the communications business; material changes in the communications industry generally that could adversely affect vendor relationships with equipment and network suppliers and customer relationships with wholesale customers; changes in communications technology; the risks associated with the integration of acquired businesses; adverse changes in the terms and conditions of the wireless roaming agreements of Alltel; the potential for adverse changes in the ratings given to Alltel's debt securities by nationally accredited accredited recognition by an appropriate authority that the performance of a particular institution has satisfied a prestated set of criteria. accredited herds cattle herds which have achieved a low level of reactors to, e.g. ratings organizations; the uncertainties related to Alltel's strategic investments; the effects of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; and the effects of federal and state legislation, rules, and regulations governing the communications industry. In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. , economic conditions, and governmental and public policy changes. Alltel, NYSE NYSE See: New York Stock Exchange : AT www.alltel.com [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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