CenturyTel Posts 17 Percent Rise in Third Quarter Net Income.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)--Oct. 26, 1999-- 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 third quarter 1999. -- Revenues climbed 4.3% to $419.2 million (14.4% excluding the effect of divestitures). -- Net income jumped 16.7% to $63.8 million (20.6% excluding the effect of divestitures). -- 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 rose 15.4% to $.45 (18.4% excluding the effect of divestitures). -- Earnings before interest, taxes, depreciation, amortization and gain on sales of assets, advanced 2.9% to $222.8 million (12.2% excluding the effect of divestitures). -0-
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Third Quarter Highlights Quarter Quarter
(In thousands, except per Ended Ended % Change
share amounts) 9/30/99 9/30/98
----------------------------------------------------------------------
Revenues $ 419,205 $ 401,949 4.3%
EBITDA (1) $ 222,808 $ 216,496 2.9%
Net Income (2) $ 63,788 $ 54,678 16.7%
Diluted Earnings Per Share (2)(3) $ .45 $ .39 15.4%
Average Diluted Shares
Outstanding (3) 141,504 140,322 .8%
Telephone Revenues $ 277,352 $ 275,397 .7%
Wireless Revenues $ 111,652 $ 106,664 4.7%
Other Operations Revenues $ 30,201 $ 19,888 51.9%
----------------------------------------------------------------------
Telephone Access Lines 1,263,036 1,251,735 .9%
Wireless Units in Majority-Owned
Markets 650,899 591,645 10.0%
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(1) Earnings before interest, taxes, depreciation, amortization
and gain on sales of assets
(2) Excludes after-tax gain on asset sales of $741,000, or $.005 per
share, in third quarter 1999
(3) Reflects a three-for-two stock split effected as a stock dividend
distributed March 31, 1999
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---------------------------------------------------------------------- "CenturyTel's strong financial performance continued in the third quarter," Glen F. Post, III, President and Chief Executive Officer, said. "The second quarter sale of certain non-strategic assets including telephone operations 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 cellular properties in South Texas adversely affected prior period comparisons. Revenue growth in our core operations was 14.4% excluding these divestitures. In recent months, CenturyTel has announced the pending acquisition of nearly half a million telephone access lines which, along with CenturyTel's other growth initiatives, will more than offset the effect of these divestitures." ---------------------------------------------------------------------- Net income for the quarter, excluding gain on sales of assets, climbed 16.7% to $63.8 million from $54.7 million in third quarter 1998. Diluted earnings per share increased 15.4% to $.45 from $.39. 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 rose 4.3% to $419.2 million from $401.9 million. Earnings before interest, taxes, depreciation, amortization and gain on sales of assets (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 ) grew to $222.8 million from $216.5 million, a 2.9% increase. -0-
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Third Quarter Highlights,
excluding the effect of asset
divestitures Quarter Quarter
(In thousands, except per Ended Ended
share amounts) 9/30/99 9/30/98 % Change
----------------------------------------------------------------------
Revenues $ 419,205 $ 366,524 14.4%
EBITDA (1) $ 222,808 $ 198,496 12.2%
Net Income (2) $ 63,788 $ 52,875 20.6%
Diluted Earnings Per Share (2)(3) $ .45 $ .38 18.4%
Average Diluted Shares
Outstanding (3) 141,504 140,322 .8%
Telephone Revenues $ 277,352 $ 243,664 13.8%
Wireless Revenues $ 111,652 $ 102,972 8.4%
Other Operations Revenues $ 30,201 $ 19,888 51.9%
----------------------------------------------------------------------
Telephone Access Lines 1,263,036 1,121,683 12.6%
Wireless Units in Majority-Owned
Markets 650,899 582,069 11.8%
----------------------------------------------------------------------
(1) Earnings before interest, taxes, depreciation, amortization and
gain on sales of assets
(2) Excludes after-tax gain on asset sales of $741,000, or $.005 per
share, in third quarter 1999
(3) Reflects a three-for-two stock split effected as a stock dividend
distributed March 31, 1999
Net income for the quarter, excluding the effect of asset divestitures and gain on sales of assets, climbed 20.6% to $63.8 million from $52.9 million in third quarter 1998. Diluted earnings per share, excluding the effect of asset divestitures and gains, increased 18.4% to $.45 from $.38. Consolidated revenues excluding divestitures rose 14.4% to $419.2 million from $366.5 million. Excluding divestitures, EBITDA grew to $222.8 million from $198.5 million, a 12.2% increase. CenturyTel achieved a consolidated EBITDA margin of 53.2% during the quarter. "We achieved strong internal revenue growth in our core operations this quarter," Post said. "CenturyTel's telephone operations produced internal revenue growth of nearly 9% while other operations, driven primarily by long distance, posted internal revenue growth of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 52%. Wireless customer growth exceeded prior year levels, and our long distance customer base grew 10% during the quarter as CenturyTel added 25,600 long distance customers." Telephone revenues, excluding the effect of asset divestitures, grew 13.8% to $277.4 million during the quarter, compared with $243.7 million in third quarter 1998. A prior-year acquisition contributed $11.6 million to telephone revenues during the quarter. 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. excluding divestitures increased 3.2%, reaching $81.9 million from $79.3 million, and EBITDA excluding divestitures rose 7.9% to $148.2 million from $137.4 million a year ago. CenturyTel's third quarter telephone EBITDA margin was 53.5% while the operating income margin was 29.5%. An increase in Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 expenses of $3.3 million negatively affected margins for the quarter. Internal access line growth was a strong 5.3% in the quarter. "CenturyTel's 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 revenues increased by 55% from third quarter last year," Post said. "During the quarter we deployed the new G-lite DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary standard, and CenturyTel is on track to address 10% of our customer base with this high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. data service before year end." Wireless revenues, excluding the effect of asset divestitures, grew 8.4% to $111.7 million in third quarter 1999, compared with $103.0 million in third quarter 1998. Wireless operating income excluding divestitures advanced 13.8%, reaching $40.7 million from $35.8 million, and EBITDA excluding divestitures climbed 14.9% to $57.9 million from $50.4 million a year ago. CenturyTel's third quarter wireless EBITDA margin was 51.8% (52.9% based on service revenues), and operating income margin was 36.5% (37.2% 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 $56.57 during third quarter 1999, a 4.7% decrease from $59.39 a year ago. The average monthly 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. was 1.9%. "CenturyTel's average monthly churn churn: see butter. declined nearly half a percentage point to 1.9% during the quarter as compared with prior year levels," Post said. Revenues from other operations, excluding asset divestitures, grew 51.9% to $30.2 million during third quarter 1999, compared with $19.9 million in third quarter 1998. CenturyTel's long distance business generated $9.3 million of the increase in other operations revenues. CenturyTel now serves more than 285,500 long distance customers, adding more than 25,600 during the quarter. During the first nine months of 1999, net income excluding gain on sales of assets climbed 22.8% to $179.4 million from $146.0 million in 1998. Diluted earnings per share increased 21.0% to $1.27 from $1.05, and consolidated revenues rose 7.6% to $1.3 billion from $1.2 billion. EBITDA grew to $674.6 million from $619.4 million, an 8.9% increase. 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; the risks inherent in rapid technological change; the Company's ability to effectively manage its growth, including the timely consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of pending acquisitions, and integrating newly-acquired properties into the Company's operations; the success and expense of the remediation efforts of the Company and its vendors in achieving year 2000 compliance; 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, 1998. 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 21 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 8th largest local exchange telephone company, based on access lines, and the 10th 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. -0-
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(UNAUDITED)
--------- ---------- INCREASE
In thousands, except per share amounts 1999 1998 (DECREASE)
--------- ---------- ---------
TELEPHONE OPERATIONS
Operating revenues
Local service $ 86,010 84,082 2.3%
Network access 159,682 159,422 0.2%
Other 31,660 31,893 (0.7%)
--------- ---------
277,352 275,397 0.7%
--------- ---------
Operating expenses
Plant operations 66,446 62,402 6.5%
Customer operations 22,073 22,107 (0.2%)
Corporate and other 40,584 37,436 8.4%
Depreciation and amortization 66,397 65,242 1.8%
--------- ---------
195,500 187,187 4.4%
--------- ---------
Telephone operating income 81,852 88,210 (7.2%)
--------- ---------
WIRELESS OPERATIONS
Operating revenues
Service revenues 109,318 104,529 4.6%
Equipment sales 2,334 2,135 9.3%
--------- ---------
111,652 106,664 4.7%
--------- ---------
Operating expenses
Cost of equipment sold 4,200 3,784 11.0%
System operations 13,864 15,359 (9.7%)
General, administrative and
customer service 22,128 22,115 0.1%
Sales and marketing 13,588 13,585 -
Depreciation and amortization 17,167 15,558 10.3%
--------- ---------
70,947 70,401 0.8%
--------- ---------
Wireless operating income 40,705 36,263 12.2%
--------- ---------
OTHER OPERATIONS
Operating revenues 30,201 19,888 51.9%
--------- ---------
Operating expenses
Cost of sales and other 21,963 15,367 42.9%
Depreciation and amortization 736 810 (9.1%)
--------- ---------
22,699 16,177 40.3%
--------- ---------
Other operating income 7,502 3,711 102.2%
--------- ---------
TOTAL OPERATING INCOME 130,059 128,184 1.5%
OTHER INCOME (EXPENSE)
Interest expense (34,997) (41,904) (16.5%)
Income from unconsolidated
cellular entities 10,801 9,162 17.9%
Minority interest (3,460) (3,619) (4.4%)
Gain on sales of assets 1,201 - -
Other income and expense 1,108 1,159 (4.4%)
Income tax expense (40,183) (38,304) 4.9%
--------- ---------
NET INCOME $ 64,529 54,678 18.0%
========= =========
EARNINGS PER SHARE (1)
Basic $ 0.46 0.40 15.0%
Diluted (2) $ 0.46 0.39 17.9%
SHARES OUTSTANDING (1)
Basic 139,085 137,207 1.4%
Diluted 141,504 140,322 0.8%
DIVIDENDS PER COMMON SHARE (1) $ 0.0450 0.0433 3.9%
(1) Reflects a three-for-two stock split effected as a stock
dividend distributed March 31, 1999
(2) Excluding the effect of asset sales, diluted earnings per share
were $.45 for 1999
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(UNAUDITED)
--------- --------- INCREASE
In thousands, except per share amounts 1999 1998 (DECREASE)
--------- --------- ---------
TELEPHONE OPERATIONS
Operating revenues
Local service $ 266,119 243,664 9.2%
Network access 482,626 462,576 4.3%
Other 100,681 94,292 6.8%
--------- ---------
849,426 800,532 6.1%
--------- ---------
Operating expenses
Plant operations 196,960 176,609 11.5%
Customer operations 67,968 67,956 -
Corporate and other 116,419 116,444 -
Depreciation and amortization 207,163 194,516 6.5%
--------- ---------
588,510 555,525 5.9%
--------- ---------
Telephone operating income 260,916 245,007 6.5%
--------- ---------
WIRELESS OPERATIONS
Operating revenues
Service revenues 312,873 299,396 4.5%
Equipment sales 7,372 6,308 16.9%
--------- ---------
320,245 305,704 4.8%
--------- ---------
Operating expenses
Cost of equipment sold 13,848 11,211 23.5%
System operations 42,394 44,285 (4.3%)
General, administrative and
customer service 60,113 60,785 (1.1%)
Sales and marketing 41,130 41,018 0.3%
Depreciation and amortization 50,963 45,274 12.6%
--------- ---------
208,448 202,573 2.9%
--------- ---------
Wireless operating income 111,797 103,131 8.4%
--------- ---------
OTHER OPERATIONS
Operating revenues 80,540 55,811 44.3%
--------- ---------
Operating expenses
Cost of sales and other 59,779 41,647 43.5%
Depreciation and amortization 2,167 2,498 (13.3%)
--------- ---------
61,946 44,145 40.3%
--------- ---------
Other operating income 18,594 11,666 59.4%
--------- ---------
TOTAL OPERATING INCOME 391,307 359,804 8.8%
OTHER INCOME (EXPENSE)
Interest expense (114,725) (126,785) (9.5%)
Income from unconsolidated
cellular entities 26,913 25,105 7.2%
Minority interest (25,560) (10,264) 149.0%
Gain on sales of assets 51,160 49,859 2.6%
Other income and expense 6,722 2,454 173.9%
Income tax expense (156,721) (123,610) 26.8%
--------- ---------
NET INCOME $ 179,096 176,563 1.4%
========= =========
EARNINGS PER SHARE (1)
Basic (2) $ 1.29 1.29 -
Diluted (3) $ 1.27 1.26 0.8%
SHARES OUTSTANDING (1)
Basic 138,668 136,857 1.3%
Diluted 141,331 139,908 1.0%
DIVIDENDS PER COMMON SHARE (1) $ 0.1350 0.1299 3.9%
(1) Reflects a three-for-two stock split effected as a stock
dividend distributed March 31, 1999
(2) Excluding the effect of asset sales, basic earnings per share
were $1.29 and $1.06 for 1999 and 1998, respectively
(3) Excluding the effect of asset sales, diluted earnings per share
were $1.27 and $1.05 for 1999 and 1998, respectively
CenturyTel, Inc.
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
(UNAUDITED)
-------------- --------------
September 30, December 31,
1999 1998
-------------- --------------
( in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 37,233 5,742
Other current assets 248,079 220,496
----------- -----------
Total current assets 285,312 226,238
----------- -----------
PROPERTY, PLANT AND EQUIPMENT
Telephone 3,366,882 3,660,252
Wireless 458,197 436,897
Other 238,418 192,509
Accumulated depreciation (1,868,553) (1,938,205)
----------- -----------
Net property, plant and
equipment 2,194,944 2,351,453
----------- -----------
INVESTMENTS AND OTHER ASSETS
Excess cost of net assets
acquired 1,629,636 1,956,701
Other 431,264 401,063
----------- -----------
Total investments and other
assets 2,060,900 2,357,764
----------- -----------
TOTAL ASSETS $ 4,541,156 4,935,455
=========== ===========
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Current maturities of long-term
debt $ 53,306 53,010
Other current liabilities 263,134 251,834
---------- ------------
Total current liabilities 316,440 304,844
LONG-TERM DEBT 2,042,235 2,558,000
DEFERRED CREDITS AND OTHER LIABILITIES 468,241 541,129
STOCKHOLDERS' EQUITY 1,714,240 1,531,482
---------- ------------
TOTAL LIABILITIES AND EQUITY $4,541,156 4,935,455
========== ============
CAPITAL EXPENDITURES
NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
---------- ----------- INC
1999 1998 (DEC)
---------- ----------- ------
(in thousands)
Telephone $ 145,178 141,963 2.3%
Wireless 44,262 42,836 3.3%
Corporate and other 47,558 24,230 96.3%
-------- ---------
Total capital expenditures $ 236,998 209,029 13.4%
======== =========
CAPITAL EXPENDITURES
THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
--------- ---------- INC
1999 1998 (DEC)
--------- ---------- -----
(in thousands)
Telephone $ 58,554 63,908 (8.4%)
Wireless 11,071 8,536 29.7%
Corporate and other 18,245 10,165 79.5%
--------- -------
Total capital expenditures $ 87,870 82,609 6.4%
========= =======
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