CenturyTel's Revenues from Recurring Operations Rise 9 Percent.Business Editors/Technology Writers MONROE Monroe. 1 Industrial city (1990 pop. 54,909), seat of Ouachita parish, SE La., on the Ouachita River; founded c.1785, inc. as a city 1900. The center of the great Monroe Natural Gas Field (discovered 1915), it has important chemical plants, as well as , La.--(BUSINESS WIRE)--April 27, 2000 CenturyTel CenturyTel, Inc. (NYSE: CTL) formerly named Century Telephone Enterprises, Inc. is a United States telecommunications firm, headquartered in Monroe, Louisiana. , Inc. (NYSE NYSE See: New York Stock Exchange : CTL See control key. 1. CTL - Checkout Test language. 2. CTL - Compiler Target Language. 3. CTL - Computational Tree Logic ) announces operating results for first quarter 2000. -- Revenues from recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. operations were $412.9 million. -- Net income from recurring operations was $48.0 million. -- 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 from recurring operations were $.34. -- Earnings from recurring operations before interest, taxes, depreciation and amortization were $202.6 million.
----------------------------------------------------------------------
First Quarter Highlights,
excluding the effect of
asset divestitures and Quarter Quarter % Change
nonrecurring gains and Ended Ended
losses (Dollars in thousands, 3/31/00 3/31/99
(except per share amounts)
----------------------------------------------------------------------
Revenues $ 412,863 $ 378,117 9.2%
EBITDA (1) $ 202,636 $ 207,176 (2.2%)
Net Income (2) $ 48,014 $ 52,307 (8.2%)
Diluted Earnings Per Share (2) $ .34 $ .37 (8.1%)
Average Diluted Shares Outstanding 142,556 141,028 1.1%
Telephone Revenues (3) $ 276,926 $ 259,308 6.8%
Wireless Revenues $ 100,311 $ 92,876 8.0%
Other Operations Revenues $ 35,626 $ 25,933 37.4%
----------------------------------------------------------------------
Telephone Access Lines 1,282,237 1,230,929 4.2%
Wireless Units in Majority-Owned
Markets 727,507 618,294 17.7%
----------------------------------------------------------------------
(1) Earnings from recurring operations before interest, taxes,
depreciation and amortization
(2) Excludes after-tax gain on asset sales of $5.2 million, or $.04
per share, and nonrecurring charges of $3.8 million, or $.03 per
share, in first quarter 2000, and after-tax gain on asset sales of
$6.7 million, or $.05 per share, in first quarter 1999
(3) Internet revenues of $4.5 million in first quarter 2000 and $3.2
million in first quarter 1999 were reclassified from Telephone
Revenues to Other Operations Revenues
---------------------------------------------------------------------- "CenturyTel's first quarter earnings were influenced by higher expenses related to several key wireline and wireless growth initiatives," Glen F. Post, III, President and Chief Executive Officer, said. "In our wireline operations, we incurred $6.0 million in expenses preparing to integrate the pending GTE GTE General Telephone & Electronics GTE Génie Thermique et Énergie (French) GTE Gas Turbine Engine GTE Global Tropospheric Experiment GTE Geothermal Energy GTE Gas Turbine Efficiency plc (Sweden & USA) acquisitions. Aggressive wireless sales and marketing campaigns led to expense increases of $8.0 million while resulting in strong wireless unit growth of more than 30,600 net customer additions during the quarter." ---------------------------------------------------------------------- Net income from recurring operations for the quarter declined 8.2% to $48.0 million from $52.3 million in first quarter 1999. Diluted earnings per share from recurring operations decreased 8.1% to $.34 from $.37. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenues from recurring operations rose 9.2% to $412.9 million from $378.1 million. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become from recurring operations decreased to $202.6 million from $207.2 million resulting in an EBITDA margin of 49.1% for the quarter. These results exclude the 1999 contribution to revenues of $35.5 million and associated expenses from the sale of non-strategic assets in Alaska Alaska (əlă`skə), largest in area of the United States but third smallest (exceeding only Vermont and Wyoming) in population, occupying the northwest extremity of the North American continent, separated from the coterminous United States and South Texas. Also excluded are one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges of $5.3 million, which relate to write-offs taken by another carrier operating markets in which CenturyTel has a minority ownership interest. "Many of the factors affecting this quarter's performance stem from short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. expense issues related to pending acquisitions or other growth initiatives. We believe that our financial results will improve over the second half of the year as we execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution our growth strategies," Post said. Telephone revenues from recurring operations grew 6.8% to $276.9 million during the quarter, compared with $259.3 million in first quarter 1999. Telephone operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from recurring operations decreased 1.2%, to $84.5 million from $85.5 million, and EBITDA from recurring operations rose 1.4% to $151.9 million from $149.8 million a year ago. CenturyTel's first quarter telephone EBITDA margin was 54.8% while the operating income margin was 30.5% from recurring operations. In our wireline operations we incurred $6.0 million in expenses related to the pending GTE acquisitions including overhead retained subsequent to the disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of CenturyTel's Alaska operations. -- The pending GTE acquisitions are projected to close at the end of second quarter and early third quarter 2000 subject to regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals. -- CenturyTel will experience additional expenses in the second quarter related to the pending GTE acquisitions. Once these acquisitions are finalized See finalization. , they are expected to generate more than $340 million in revenues during the first full year of operation. Wireless revenues from recurring operations grew 8.0% to $100.3 million in first quarter 2000, compared with $92.9 million in first quarter 1999. Wireless operating income from recurring operations was $20.1 million compared to $27.8 million, a 27.9% decrease, and EBITDA from recurring operations decreased 17.5% to $36.3 million compared to $44.1 million a year ago. The rollout of new pricing plans coupled with higher customer growth increased sales and marketing expenses by $8.0 million, which reduced operating income and cash flow for the quarter. CenturyTel's first quarter wireless EBITDA margin from recurring operations was 36.2% (37.6% based on service revenues), and operating income margin was 20.0% (20.8% based on service revenues). Average monthly cellular service revenue per user (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 $45 during first quarter 2000, an 11.8% decrease from $51 a year ago. -- CenturyTel added more than 30,600 wireless customers during the first quarter, a 105% increase from a year ago. CenturyTel achieved its best first quarter for net additions in company history. -- CenturyTel achieved an average monthly postpaid post·paid adj. With the postage having been paid in advance. postpaid Adverb, adj with the postage prepaid Adj. 1. churn rate (1) The percentage of customers who cancel their online, cellphone or other subscription service during a certain time period. (2) The percentage of employees who leave the company during a certain time period. See churning. of 2.0% for the quarter. -- During the quarter, CenturyTel divested its last remaining cellular RSA (1) (Rural Service Area) See MSA. (2) (Rivest-Shamir-Adleman) A highly secure cryptography method by RSA Security, Inc., Bedford, MA (www.rsa.com), a division of EMC Corporation since 2006. It uses a two-part key. in Alaska reducing wireless subscribers by 10,600. Other operations revenues from recurring operations grew 37.4% to $35.6 million during first quarter 2000, compared with $25.9 million in first quarter 1999. CenturyTel's long distance business generated $7.8 million of the increase in other operations revenues. CenturyTel now serves more than 319,000 long distance customers and in excess of 75,000 Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the subscribers. -- CenturyTel added more than 15,300 long distance customers during the quarter. -- During the quarter, CenturyTel added more than 6,900 Internet subscribers. In addition to historical information, this release includes certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to uncertainties that could cause the Company's actual results to differ materially from such statements. Such uncertainties include but are not limited to: the effects of ongoing deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. in the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry; the effects of greater than anticipated competition in the Company's markets; possible changes in the demand for the Company's products and services; the Company's ability to successfully introduce new offerings on a timely and cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. basis; our ability to timely consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. our pending acquisitions and effectively manage our growth, including financing costs, integrating newly acquired properties into our operations, hiring adequate numbers of qualified staff and successfully upgrading our billing and other information systems; the risks inherent in rapid technological change; and the effects of more general factors such as changes in overall market or economic conditions or in legislation, regulation or public policy. These and other uncertainties related to the Company's business are described in greater detail in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 1999. CenturyTel, Inc. provides integrated communications services including local exchange, wireless, long distance, Internet access See how to access the Internet. and security monitoring services The general surveillance of known air traffic movements by reference to a radar scope presentation or other means, for the purpose of passing advisory information concerning conflicting traffic or providing navigational assistance. to more than two million customers in 20 states. The company, headquartered in Monroe, Louisiana The city of Monroe is the parish seat of Ouachita Parish, in the US state of Louisiana. [1] [2] It is the principal city of the Monroe, Louisiana Metropolitan Statistical Area (pop. , is publicly traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol CTL. CenturyTel is the seventh largest local exchange telephone company, based on access lines, and the ninth largest cellular company, based on population equivalents owned, in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Visit CenturyTel's corporate website at www.centurytel.com.
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(UNAUDITED)
---------
--------- -------- INCREASE
In thousands, except per share 2000 1999 (DECREASE)
amounts --------- --------- ----------
TELEPHONE OPERATIONS
Operating revenues
Local service $ 88,065 90,657 (2.9%)
Network access 162,253 167,155 (2.9%)
Other 26,608 30,461 (12.6%)
--------- --------- -------
276,926 288,273 (3.9%)
--------- --------- -------
Operating expenses
Plant operations 62,776 63,937 (1.8%)
Customer operations 22,761 21,357 6.6%
Corporate and other 39,532 36,879 7.2%
Depreciation and amortization 67,360 71,427 (5.7%)
--------- --------- -------
192,429 193,600 (0.6%)
--------- --------- -------
Telephone operating income 84,497 94,673 (10.7%)
--------- --------- -------
WIRELESS OPERATIONS
Operating revenues
Service revenues 96,623 96,061 0.6%
Equipment sales 3,781 2,501 51.2%
--------- --------- -------
100,404 98,562 1.9%
--------- --------- -------
Operating expenses
Cost of equipment sold 8,180 4,385 86.5%
System operations 15,653 13,636 14.8%
General, administrative
and customer service 18,206 19,329 (5.8%)
Sales and marketing 22,125 14,120 56.7%
Depreciation and amortization 16,349 17,439 (6.3%)
--------- --------- -------
80,513 68,909 16.8%
--------- --------- -------
Wireless operating income 19,891 29,653 (32.9%)
--------- --------- -------
OTHER OPERATIONS
Operating revenues 35,626 27,421 29.9%
--------- --------- -------
Operating expenses
Cost of sales and other 27,490 20,009 37.4%
Depreciation and amortization 1,102 1,115 (1.2%)
--------- --------- -------
28,592 21,124 35.4%
--------- --------- -------
Other operating income 7,034 6,297 11.7%
--------- --------- -------
TOTAL OPERATING INCOME 111,422 130,623 (14.7%)
OTHER INCOME (EXPENSE)
Interest expense (36,042) (42,241) (14.7%)
Gain on sales of assets 9,910 10,358 (4.3%)
Income from unconsolidated
cellular entities (1,459) 6,845 (121.3%)
Minority interest (2,292) (3,310) (30.8%)
Other income and expense 4,229 2,180 94.0%
Income tax expense (36,484) (43,350) (15.8%)
--------- --------- -------
NET INCOME $ 49,284 61,105 (19.3%)
========= ========= =======
EARNINGS PER SHARE
Basic (1) $ 0.35 0.44 (20.5%)
Diluted (2) $ 0.35 0.43 (18.6%)
SHARES OUTSTANDING
Basic 140,565 138,086 1.8%
Diluted 142,556 141,028 1.1%
DIVIDENDS PER COMMON SHARE $ 0.0475 0.0450 5.6%
(1) Excluding the effect of asset divestitures and nonrecurring
gains and losses, basic earnings per share were $.34 and $.38 for
2000 and 1999, respectively
(2) Excluding the effect of asset divestitures and nonrecurring gains
and losses, diluted earnings per share were $.34 and $.37 for
2000 and 1999, respectively
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(UNAUDITED)
Excludes the effect of asset
divestitures and nonrecurring
gains and losses
----------------------------------------------------------------------
--------- -------- INCREASE
In thousands, except per share 2000 1999 (DECREASE)
amounts --------- --------- ----------
TELEPHONE OPERATIONS
Operating revenues
Local service $ 88,065 80,947 8.8%
Network access 162,253 152,238 6.6%
Other 26,608 26,123 1.9%
--------- --------- -------
276,926 259,308 6.8%
--------- --------- -------
Operating expenses
Plant operations 62,776 55,793 12.5%
Customer operations 22,761 18,914 20.3%
Corporate and other 39,532 34,828 13.5%
Depreciation and amortization 67,360 64,286 4.8%
--------- --------- -------
192,429 173,821 10.7%
--------- --------- -------
Telephone operating income 84,497 85,487 (1.2%)
--------- --------- -------
WIRELESS OPERATIONS
Operating revenues
Service revenues 96,612 90,543 6.7%
Equipment sales 3,699 2,333 58.6%
--------- --------- -------
100,311 92,876 8.0%
--------- --------- -------
Operating expenses
Cost of equipment sold 8,103 4,190 93.4%
System operations 15,553 12,518 24.2%
General, administrative
and customer service 18,206 18,398 (1.0%)
Sales and marketing 22,116 13,715 61.3%
Depreciation and amortization 16,265 16,229 0.2%
--------- --------- -------
80,243 65,050 23.4%
--------- --------- -------
Wireless operating income 20,068 27,826 (27.9%)
--------- --------- -------
OTHER OPERATIONS
Operating revenues 35,626 25,933 37.4%
--------- --------- -------
Operating expenses
Cost of sales and other 26,986 18,636 44.8%
Depreciation and amortization 1,102 1,030 7.0%
--------- --------- -------
28,088 19,666 42.8%
--------- --------- -------
Other operating income 7,538 6,267 20.3%
--------- --------- -------
TOTAL OPERATING INCOME 112,103 119,580 (6.3%)
OTHER INCOME (EXPENSE)
Interest expense (36,017) (36,479) (1.3%)
Income from unconsolidated
cellular entities 3,871 6,845 (43.4%)
Minority interest (2,292) (2,760) (17.0%)
Other income and expense 4,227 1,966 115.0%
Income tax expense (33,878) (36,845) (8.1%)
--------- --------- -------
NET INCOME $ 48,014 52,307 (8.2%)
========= ========= =======
EARNINGS PER SHARE
Basic $ 0.34 0.38 (10.5%)
Diluted $ 0.34 0.37 (8.1%)
SHARES OUTSTANDING
Basic 140,565 138,086 1.8%
Diluted 142,556 141,028 1.1%
DIVIDENDS PER COMMON SHARE $ 0.0475 0.0450 5.6%
CenturyTel, Inc.
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2000 AND DECEMBER 31, 1999
(UNAUDITED)
----------- ------------
March 31, December 31,
2000 1999
----------- ------------
( in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 62,629 56,640
Other current assets 244,273 229,433
----------- -----------
Total current assets 306,902 286,073
PROPERTY, PLANT AND EQUIPMENT
Telephone 3,465,611 3,439,469
Wireless 468,630 472,725
Other 305,367 281,713
Accumulated depreciation (2,007,218) (1,937,449)
----------- -----------
Net property, plant and equipment 2,232,390 2,256,458
----------- -----------
INVESTMENTS AND OTHER ASSETS
Excess cost of net assets acquired 1,632,171 1,644,884
Other 557,721 517,992
----------- -----------
Total investments and other assets 2,189,892 2,162,876
----------- -----------
TOTAL ASSETS $ 4,729,184 4,705,407
=========== ==========
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 62,311 62,098
Other current liabilities 303,757 247,079
----------- -----------
Total current liabilities 366,068 309,177
LONG-TERM DEBT 1,998,430 2,078,311
DEFERRED CREDITS AND OTHER LIABILITIES 475,321 469,927
STOCKHOLDERS' EQUITY 1,889,365 1,847,992
----------- -----------
TOTAL LIABILITIES AND EQUITY $ 4,729,184 4,705,407
=========== ===========
CAPITAL EXPENDITURES
THREE MONTHS ENDED MARCH 31, 2000 AND 1999
----------- ----------- ------
INC
2000 1999 (DEC)
----------- ----------- ------
( in thousands)
Telephone $ 29,309 38,304 (23.5%)
Wireless 3,679 8,563 (57.0%)
Corporate and other 25,177 16,134 56.0%
----------- -----------
Total capital expenditures $ 58,165 63,001 (7.7%)
=========== ===========
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