CenturyTel Reports Second Quarter Earnings.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. -- 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 second quarter 2006. --Net income, excluding nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. items, declined 13.6% to $73.6 million compared to $85.1 million in second quarter 2005. Reported under GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , second quarter 2006 net income was $152.4 million. --Diluted earnings per share, excluding nonrecurring items, decreased 4.7% to $.61 from $.64 in second quarter 2005. Reported under GAAP, second quarter 2006 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 was $1.26. --Free cash flow (as defined in the attached financial schedules), excluding nonrecurring items, was $135.0 million in second quarter 2006 compared to $113.6 million in second quarter 2005.
----------------------------------------------------------------------
Second Quarter Highlights Quarter Ended Quarter Ended % Change
(Excluding nonrecurring items) 6/30/06 6/30/05
(In thousands, except per share
amounts and customer units)
----------------------------------------------------------------------
Operating Revenues
Operating Cash Flow (1) $ 609,131 $ 606,413 0.4%
Net Income $ 297,069 $ 316,334 (6.1)%
Diluted Earnings Per Share $ 73,562 $ 85,118 (13.6)%
Average Diluted Shares $ .61 $ .64 (4.7)%
Outstanding 121,636 135,345 (10.1)%
Capital Expenditures $ 70,367 $ 102,011 (31.0)%
----------------------------------------------------------------------
Telephone Access Lines 2,168,317 2,273,279 (4.6)%
High-speed Internet Customers 312,853 194,847 (2) 60.6%
----------------------------------------------------------------------
(1) Operating Cash Flow is a non-GAAP financial measure. A
reconciliation of this item to comparable GAAP measures is
included in the attached financial schedules.
(2) Includes approximately 2,000 access lines in our Arizona
telephone properties which were sold in second quarter 2006.
"CenturyTel delivered solid results as we experienced strong demand for broadband services See broadband and broadband service provider. and communications bundles during the quarter," Glen F. Post, III, chairman and chief executive officer, said. "The 60% growth in high-speed Internet See broadband. customers and 45% growth in related revenues over the past twelve months reflect CenturyTel's focus on being the broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). provider of choice in our markets." Operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. rose 0.4% to $609.1 million in second quarter 2006 from $606.4 million in second quarter 2005. This increase primarily resulted from revenues from metro fiber assets acquired in mid- mid- pref. Middle: midbrain. 2005 and data revenue growth from high-speed Internet subscribers. These increases more than offset revenue declines attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to access line losses and lower access revenues. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased 5.6% to $443.9 million from $420.5 million in second quarter 2005 primarily due to growth in our high-speed Internet connections and expenses related to the metro fiber assets acquired in mid-2005. Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. decreased to $297.1 million from $316.3 million. CenturyTel achieved an operating cash flow margin of 48.8% during the quarter versus 52.2% in second quarter 2005. This margin decline was principally driven by access line losses and lower USF USF University of South Florida USF Universal Service Fund (often part of phone bill in US) USF University of San Francisco USF University of Sioux Falls USF University of St. and access revenues, along with the growth in lower margin services such as high-speed Internet, fiber transport and CLEC (Competitive Local Exchange Carrier) An organization offering local telephone service that is not one of the traditional telephone companies. The Telecommunications Act of 1996 allowed competition to the incumbent telcos (ILECs), enabling new companies (CLECs) . Net income, excluding nonrecurring items, was $73.6 million in second quarter 2006 compared to $85.1 million in second quarter 2005. The decrease was primarily driven by the decline in operating cash flow discussed above. Diluted earnings per share, excluding nonrecurring items, was $.61 for second quarter 2006, a 4.7% decrease from the $.64 reported in second quarter 2005. This decrease was driven by lower net income, which was partially offset by the 10.1% decline in average diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. shares outstanding that was a result of share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. since second quarter 2005. As announced July July: see month. 19, 2006, all repurchases under the Company's February February: see month. 2006 accelerated share repurchase agreements entered into with investment banks The following is a list of investment banks Financial conglomerates Large financial-services conglomerates combine commercial banking and investment banking, and sometimes insurance. for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 14.36 million shares were recently completed and CenturyTel paid the banks $28.4 million cash as final settlement of the agreements. The Company has $500 million remaining under its $1 billion share repurchase program authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: in February of this year. "We are pleased that the accelerated share repurchase program was completed in less than five months. We currently expect to continue purchasing shares under the remaining $500 million in the open market," Post said. For the first six months of 2006, operating revenues, excluding nonrecurring items, increased to $1.219 billion from $1.202 billion for the same period in 2005. Operating cash flow, excluding nonrecurring items, was $594.7 million for the first half of 2006 compared to $625.4 million a year ago. Net income, excluding nonrecurring items, was $146.0 million in the first six months of 2006 compared to $165.1 million during the same period in 2005. Diluted earnings per share, excluding nonrecurring items, was $1.19 during the first half of 2006 compared to $1.23 in the first half of 2005. 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), net income for second quarter 2006 was $152.4 million compared to $85.1 million for second quarter 2005 and diluted earnings per share for second quarter 2006 was $1.26 compared to $.64 for second quarter 2005. Second quarter 2006 net income and diluted earnings per share include a $72.4 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. benefit related to the dissolution Act or process of dissolving; termination; winding up. In this sense it is frequently used in the phrase dissolution of a partnership. The dissolution of a contract is its Rescission by the parties themselves or by a court that nullifies its binding force and reinstates each of the Rural Telephone Bank and a $6.4 million positive impact from the resolution of various income tax audit issues. Net income under GAAP for the first six months of 2006 was $221.8 million compared to $164.7 million for the first six months of 2005 and diluted earnings per share for the first six months of 2006 was $1.80 compared to $1.23 for the first six months of 2005. See the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. financial schedules for detail of the Company's nonrecurring items for the six months ended June June: see month. 30, 2006 and 2005. For the third quarter 2006, CenturyTel expects total revenues of $605 to $615 million and diluted earnings per share of $.57 to $.61. For the full year 2006, diluted earnings per share is expected to be in the range of $2.35 to $2.45, an increase over the $2.30 to $2.40 range previously provided. This increase in 2006 diluted earnings per share guidance is primarily due to the better than anticipated results during second quarter 2006 and the expectation of operating costs operating costs npl → gastos mpl operacionales being lower in the second half of 2006 than previously anticipated. These outlook figures exclude nonrecurring items and the potential impact of any future mergers, acquisitions, divestitures, refinancing Refinancing An extension and/or increase in amount of existing debt. , share repurchases or other similar business transactions. Reconciliation to GAAP. This release includes certain non-GAAP financial measures, including but not limited to operating cash flow, free cash flow and adjustments to GAAP measures to exclude the effect of nonrecurring items. In addition to providing key metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. for management to evaluate the Company's performance, we believe these measurements assist investors in their understanding of period-to-period operating performance and in identifying historical and prospective trends. Reconciliations of non-GAAP financial measures to the most comparable GAAP measures are included in the attached financial statements. Reconciliation of additional non-GAAP financial measures that may be discussed during the earnings call described below will be available in the Investor Relations Investor relations The process by which the corporation communicates with its investors. portion of the Company's Web site at www.centurytel.com. Investors are urged to consider these non-GAAP measures in addition to, and not in substitution Substitution Arsinoë put her own son in place of Orestes; her son was killed and Orestes was saved. [Gk. Myth.: Zimmerman, 32] Barabbas robber freed in Christ’s stead. [N.T.: Matthew 27:15–18; Swed. Lit. for, measures prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP. Investor Call. As previously announced, CenturyTel's management will host a conference call at 10:30 a.m. Central Time today. Interested parties can access the call by dialing 866.814.1912. The call will be accessible for replay through August 2, 2006, by calling 888.266.2081 and entering the access code: 930453. Investors can also listen to CenturyTel's earnings conference call and replay by accessing the Investor Relations portion of the Company's Web site at www.centurytel.com prior to August 17, 2006. 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. , estimates and projections that are based on current expectations only, and are subject to a number of risks, uncertainties and assumptions, many of which are beyond the control of the Company. Actual events and results may differ materially from those anticipated, estimated or projected if one or more of these risks or uncertainties materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , or if underlying assumptions prove incorrect Incorrect means to not be correct and may also refer to:
n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. basis; the Company's ability to collect its receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed from financially troubled communications companies Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D. ; the Company's ability to successfully negotiate collective bargaining agreements The contractual agreement between an employer and a Labor Union that governs wages, hours, and working conditions for employees and which can be enforced against both the employer and the union for failure to comply with its terms. on reasonable terms without work stoppages; the effect of adverse weather; other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission (the "SEC"); and the effects of more general factors such as changes in interest rates, in tax rates, in accounting policies or practices, in operating, medical or administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. , in general market, labor 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, 2005, as updated by the Company's subsequent SEC reports. You should be aware that new factors may emerge from time to time and it is not possible for management to identify all such factors, nor can it predict the impact of each such factor on the business or the extent to which any one or more factors may cause actual results to differ from those reflected in any forward-looking statements. You are further cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The information contained in this release is as of July 27, 2006. The Company undertakes no obligation to update any of its forward-looking statements for any reason. CenturyTel (NYSE:CTL) is a leading provider of communications, high-speed Internet and entertainment services in small-to-mid-size cities through our broadband and fiber transport networks. Included in the S&P 500 Index, CenturyTel delivers advanced communications with a personal touch to customers in 25 states. Visit us at www.centurytel.com.
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED JUNE 30, 2006 AND 2005
(UNAUDITED)
Three months ended June 30, 2006
---------------------------------
As
adjusted
Less excluding
non- non-
In thousands, except per share As recurring recurring
amounts reported items items
--------- ---------- ----------
OPERATING REVENUES
Voice(a) $ 216,786 216,786
Network access 221,586 221,586
Data 84,447 84,447
Fiber transport and CLEC 36,051 36,051
Other 50,261 50,261
--------- ---------- ----------
609,131 - 609,131
--------- ---------- ----------
OPERATING EXPENSES
Cost of services and products 216,466 216,466
Selling, general and
administrative 95,596 95,596
Depreciation and amortization 131,820 131,820
--------- ---------- ----------
443,882 - 443,882
--------- ---------- ----------
OPERATING INCOME 165,249 - 165,249
OTHER INCOME (EXPENSE)
Interest expense (50,639) (50,639)
Income from unconsolidated
cellular entity 2,076 2,076
Nonrecurring gains 118,649 118,649 (1) -
Other income (expense) 2,734 2,734
Income tax expense (85,701) (39,843)(2) (45,858)
--------- ---------- ----------
NET INCOME $ 152,368 78,806 73,562
========= ========== ==========
BASIC EARNINGS PER SHARE $ 1.32 0.68 0.64
DILUTED EARNINGS PER SHARE $ 1.26 0.65 0.61
AVERAGE SHARES OUTSTANDING
Basic 115,441 115,441
Diluted 121,636 121,636
DIVIDENDS PER COMMON SHARE $ 0.0625 0.0625
Three months ended June 30, 2005
-------------------------------
As
adjusted
Less excluding
non- non-
As recurring recurring
In thousands, except per share reported items items
amounts
--------- ---------- ----------
OPERATING REVENUES
Voice(a) 221,708 221,708
Network access 239,404 239,404
Data 76,049 76,049
Fiber transport and CLEC 21,636 21,636
Other 47,616 47,616
--------- ---------- ----------
606,413 - 606,413
--------- ---------- ----------
OPERATING EXPENSES
Cost of services and products 194,873 194,873
Selling, general and administrative 95,206 95,206
Depreciation and amortization 130,452 130,452
--------- ---------- ----------
420,531 - 420,531
--------- ---------- ----------
OPERATING INCOME 185,882 - 185,882
OTHER INCOME (EXPENSE)
Interest expense (49,647) (49,647)
Income from unconsolidated cellular
entity 724 724
Nonrecurring gains - -
Other income (expense) 1,220 1,220
Income tax expense (53,061) (53,061)
--------- ---------- ----------
NET INCOME 85,118 - 85,118
========= ========== ==========
BASIC EARNINGS PER SHARE 0.65 0.65
DILUTED EARNINGS PER SHARE 0.64 0.64
AVERAGE SHARES OUTSTANDING
Basic 130,299 130,299
Diluted 135,345 135,345
DIVIDENDS PER COMMON SHARE 0.0600 0.0600
Increase
(decrease)
Increase excluding
(decrease) nonrecurring
In thousands, except per share amounts as reported items
---------- -------------
OPERATING REVENUES
Voice(a) (2.2%) (2.2%)
Network access (7.4%) (7.4%)
Data 11.0% 11.0%
Fiber transport and CLEC 66.6% 66.6%
Other 5.6% 5.6%
0.4% 0.4%
OPERATING EXPENSES
Cost of services and products 11.1% 11.1%
Selling, general and administrative 0.4% 0.4%
Depreciation and amortization 1.0% 1.0%
5.6% 5.6%
OPERATING INCOME (11.1%) (11.1%)
OTHER INCOME (EXPENSE)
Interest expense 2.0% 2.0%
Income from unconsolidated cellular entity 186.7% 186.7%
Nonrecurring gains - -
Other income (expense) 124.1% 124.1%
Income tax expense 61.5% (13.6%)
NET INCOME 79.0% (13.6%)
BASIC EARNINGS PER SHARE 103.1% (1.5%)
DILUTED EARNINGS PER SHARE 96.9% (4.7%)
AVERAGE SHARES OUTSTANDING
Basic (11.4%) (11.4%)
Diluted (10.1%) (10.1%)
DIVIDENDS PER COMMON SHARE 4.2% 4.2%
NONRECURRING ITEMS
(1) - Includes gain recorded upon redemption of Rural Telephone
Bank stock ($117.8 million) and gain recorded upon sale of
Arizona properties ($.9 million).
(2) - Includes $46.3 million aggregate tax expense related to Item
(1), net of $6.4 million net tax benefit due to the
resolution of various income tax audit issues.
(a) Revenues previously reported as "Local service" and "Long
distance" have been combined into this "Voice" category for
all periods presented.
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(UNAUDITED)
Six months ended June 30, 2006
----------------------------------
As
adjusted
Less excluding
non- non-
As recurring recurring
In thousands, except per share reported items items
amounts ---------- ---------- ----------
OPERATING REVENUES
Voice(a) $ 434,235 434,235
Network access 446,832 1,128 (1) 445,704
Data 167,685 184 (1) 167,501
Fiber transport and CLEC 71,831 71,831
Other 100,197 100,197
---------- ---------- ----------
1,220,780 1,312 1,219,468
---------- ---------- ----------
OPERATING EXPENSES
Cost of services and products 439,418 5,493 (1) 433,925
Selling, general and
administrative 191,536 682 (1) 190,854
Depreciation and amortization 266,385 266,385
---------- ---------- ----------
897,339 6,175 891,164
---------- ---------- ----------
OPERATING INCOME 323,441 (4,863) 328,304
OTHER INCOME (EXPENSE)
Interest expense (100,725) (100,725)
Income from unconsolidated
cellular entity 4,149 4,149
Nonrecurring gains 118,649 118,649 (2) -
Other income (expense) 5,258 5,258
Income tax expense (128,979) (37,976)(3) (91,003)
---------- ---------- ----------
NET INCOME $ 221,793 75,810 145,983
========== ========== ==========
BASIC EARNINGS PER SHARE $ 1.86 0.64 1.23
DILUTED EARNINGS PER SHARE $ 1.80 0.61 1.19
AVERAGE SHARES OUTSTANDING
Basic 118,917 118,917
Diluted 124,798 124,798
DIVIDENDS PER COMMON SHARE $ 0.1250 0.1250
Six months ended June 30, 2005
----------------------------------
As
adjusted
Less excluding
non- non-
As recurring recurring
In thousands, except per share reported items items
amounts
---------- ---------- ----------
OPERATING REVENUES
Voice(a) 446,208 446,208
Network access 469,682 469,682
Data 148,955 148,955
Fiber transport and
CLEC 41,879 41,879
Other 94,971 94,971
---------- ---------- ----------
1,201,695 - 1,201,695
---------- ---------- ----------
OPERATING EXPENSES
Cost of services and
products 386,866 386,866
Selling, general and
administrative 189,460 189,460
Depreciation and
amortization 262,627 262,627
---------- ---------- ----------
838,953 - 838,953
---------- ---------- ----------
OPERATING INCOME 362,742 - 362,742
OTHER INCOME (EXPENSE)
Interest expense (102,272) (1,196)(4) (101,076)
Income from unconsolidated
cellular entity 2,037 2,037
Nonrecurring gains - -
Other income (expense) 2,755 (1,574)(5) 4,329
Income tax expense (100,528) 2,395 (6) (102,923)
---------- ---------- ----------
NET INCOME 164,734 (375) 165,109
========== ========== ==========
BASIC EARNINGS PER SHARE 1.25 1.26
DILUTED EARNINGS PER
SHARE 1.23 1.23
AVERAGE SHARES OUTSTANDING
Basic 131,241 131,241
Diluted 136,257 136,257
DIVIDENDS PER COMMON
SHARE 0.1200 0.1200
Increase
(decrease)
Increase excluding
(decrease) nonrecurring
In thousands, except per share amounts as reported items
------------ -------------
OPERATING REVENUES
Voice(a) (2.7%) (2.7%)
Network access (4.9%) (5.1%)
Data 12.6% 12.5%
Fiber transport and CLEC 71.5% 71.5%
Other 5.5% 5.5%
1.6% 1.5%
OPERATING EXPENSES
Cost of services and products 13.6% 12.2%
Selling, general and administrative 1.1% 0.7%
Depreciation and amortization 1.4% 1.4%
7.0% 6.2%
OPERATING INCOME (10.8%) (9.5%)
OTHER INCOME (EXPENSE)
Interest expense (1.5%) (0.3%)
Income from unconsolidated cellular
entity 103.7% 103.7%
Nonrecurring gains - -
Other income (expense) 90.9% 21.5%
Income tax expense 28.3% (11.6%)
NET INCOME 34.6% (11.6%)
BASIC EARNINGS PER SHARE 48.8% (2.4%)
DILUTED EARNINGS PER SHARE 46.3% (3.3%)
AVERAGE SHARES OUTSTANDING
Basic (9.4%) (9.4%)
Diluted (8.4%) (8.4%)
DIVIDENDS PER COMMON SHARE 4.2% 4.2%
NONRECURRING ITEMS
(1) - Severance and related costs due to workforce reduction,
including revenue impact.
(2) - Includes gain recorded upon redemption of Rural Telephone
Bank stock ($117.8 million) and gain recorded upon sale of
Arizona properties ($.9 million).
(3) - Includes $44.4 million net tax expense related to Items (1)
and (2), net of $6.4 million net tax benefit due to the
resolution of various income tax audit issues.
(4) - Write-off of unamortized deferred debt costs associated with
purchasing and retiring approximately $400 million of Series
J notes.
(5) - Includes (i) $4.8 million debt extinguishment charge related
to purchasing and retiring approximately $400 million of
Series J notes, net of (ii) $3.2 million of interest income
related to the settlement of various income tax audits.
(6) - Includes (i) $1.1 million net tax benefit of Items (4) and
(5) and (ii) $1.3 million tax benefit related to the
settlement of various income tax audits.
(a) Revenues previously reported as "Local service" and "Long
distance" have been combined into this "Voice" category for
all periods presented.
CenturyTel, Inc.
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2006 AND DECEMBER 31, 2005
(UNAUDITED)
June 30, Dec. 31,
2006 2005
----------- -----------
(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,769 158,846
Other current assets 238,483 264,170
----------- -----------
Total current assets 240,252 423,016
----------- -----------
NET PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment 7,844,529 7,801,377
Accumulated depreciation (4,672,522) (4,496,891)
----------- -----------
Net property, plant and equipment 3,172,007 3,304,486
----------- -----------
GOODWILL AND OTHER ASSETS
Goodwill 3,431,136 3,432,649
Other 590,589 602,556
----------- -----------
Total goodwill and other assets 4,021,725 4,035,205
----------- -----------
TOTAL ASSETS $ 7,433,984 7,762,707
=========== ===========
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 381,455 276,736
Other current liabilities 438,641 469,494
----------- -----------
Total current liabilities 820,096 746,230
LONG-TERM DEBT 2,239,263 2,376,070
DEFERRED CREDITS AND OTHER LIABILITIES 1,073,065 1,023,134
STOCKHOLDERS' EQUITY 3,301,560 3,617,273
----------- -----------
TOTAL LIABILITIES AND EQUITY $ 7,433,984 7,762,707
=========== ===========
CenturyTel, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Three months ended June 30, 2006
---------------------------------
As
adjusted
Less excluding
non- non-
In thousands As recurring recurring
reported items items
-------------------- ----------
Operating cash flow and cash flow
margin
Operating income $ 165,249 - 165,249
Add: Depreciation and
amortization 131,820 131,820
--------- ---------- ----------
Operating cash flow $ 297,069 - 297,069
========= ========== ==========
Revenues $ 609,131 - 609,131
========= ========== ==========
Operating income margin (operating
income divided by revenues) 27.1% 27.1%
========= ==========
Operating cash flow margin
(operating cash flow divided by
revenues) 48.8% 48.8%
========= ==========
Free cash flow (prior to debt
service requirements and
dividends)
Net income $ 152,368 78,806 (1) 73,562
Add: Depreciation and
amortization 131,820 - 131,820
Less: Capital expenditures (70,367) - (70,367)
--------- ---------- ----------
Free cash flow $ 213,821 78,806 135,015
========= ========== ==========
Free cash flow $ 213,821
Nonrecurring gains (118,649)
Income from unconsolidated
cellular entity (2,076)
Deferred income taxes 12,830
Changes in current assets and
current liabilities 31,674
(Increase) decrease in other
noncurrent assets 3,162
Increase in other noncurrent
liabilities 593
Retirement benefits 7,548
Excess tax benefits from share-
based compensation (761)
Other, net 3,778
Add: Capital expenditures 70,367
---------
Net cash provided by operating
activities $ 222,287
=========
Three months ended June 30, 2005
--------------------------------
As
adjusted
Less excluding
non- non-
In thousands As recurring recurring
reported items items
-------------------- ----------
Operating cash flow and cash
flow margin
Operating income 185,882 - 185,882
Add: Depreciation and
amortization 130,452 130,452
--------- ---------- ----------
Operating cash flow 316,334 - 316,334
========= ========== ==========
Revenues 606,413 - 606,413
========= ========== ==========
Operating income margin (operating
income divided by revenues) 30.7% 30.7%
========= ==========
Operating cash flow margin
(operating cash flow divided by
revenues) 52.2% 52.2%
========= ==========
Free cash flow (prior to
debt service requirements
and dividends)
Net income 85,118 - 85,118
Add: Depreciation and
amortization 130,452 - 130,452
Less: Capital expenditures (102,011) - (102,011)
--------- ---------- ----------
Free cash flow 113,559 - 113,559
========= ========== ==========
Free cash flow 113,559
Nonrecurring gains -
Income from unconsolidated
cellular entity (724)
Deferred income taxes 3,806
Changes in current assets
and current liabilities (8,669)
(Increase) decrease in
other noncurrent assets (119)
Increase in other
noncurrent liabilities 145
Retirement benefits 6,513
Excess tax benefits from
share-based compensation -
Other, net 5,572
Add: Capital expenditures 102,011
---------
Net cash provided by
operating activities 222,094
=========
NONRECURRING ITEMS
(1) - Includes (i) $72.4 million after-tax gains recorded upon
redemption of Rural Telephone Bank stock and sale of Arizona
properties and (ii) $6.4 million net tax benefit due to the
resolution of various income tax audit issues.
CenturyTel, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Six months ended June 30, 2006
----------------------------------
As
adjusted
Less excluding
non- non-
In thousands As recurring recurring
reported items items
--------------------- ----------
Operating cash flow and cash flow
margin
Operating income $ 323,441 (4,863)(1) 328,304
Add: Depreciation and
amortization 266,385 266,385
---------- ---------- ----------
Operating cash flow $ 589,826 (4,863) 594,689
========== ========== ==========
Revenues $1,220,780 1,312 (1)1,219,468
========== ========== ==========
Operating income margin
(operating income divided by
revenues) 26.5% 26.9%
========== ==========
Operating cash flow margin
(operating cash flow divided by
revenues) 48.3% 48.8%
========== ==========
Free cash flow (prior to debt
service requirements and
dividends)
Net income $ 221,793 75,810 (2) 145,983
Add: Depreciation and
amortization 266,385 - 266,385
Less: Capital expenditures (130,455) - (130,455)
---------- ---------- ----------
Free cash flow $ 357,723 75,810 281,913
========== ========== ==========
Free cash flow $ 357,723
Nonrecurring gains (118,649)
Income from unconsolidated
cellular entity (4,149)
Deferred income taxes 22,352
Changes in current assets and
current liabilities (306)
(Increase) decrease in other
noncurrent assets 969
Increase (decrease) in other
noncurrent liabilities 1,550
Retirement benefits 14,926
Excess tax benefits from share-
based compensation (4,947)
Other, net 6,393
Add: Capital expenditures 130,455
----------
Net cash provided by operating
activities $ 406,317
==========
Six months ended June 30, 2005
----------------------------------
As
adjusted
Less excluding
non- non-
In thousands As recurring recurring
reported items items
--------------------- ----------
Operating cash flow and cash flow
margin
Operating income 362,742 - 362,742
Add: Depreciation and
amortization 262,627 262,627
---------- ---------- ----------
Operating cash flow 625,369 - 625,369
========== ========== ==========
Revenues 1,201,695 - 1,201,695
========== ========== ==========
Operating income margin
(operating income divided by
revenues) 30.2% 30.2%
========== ==========
Operating cash flow margin
(operating cash flow divided by
revenues) 52.0% 52.0%
========== ==========
Free cash flow (prior to debt
service requirements and
dividends)
Net income 164,734 (375)(3) 165,109
Add: Depreciation and
amortization 262,627 - 262,627
Less: Capital expenditures (176,914) - (176,914)
---------- ---------- ----------
Free cash flow 250,447 (375) 250,822
========== ========== ==========
Free cash flow 250,447
Nonrecurring gains -
Income from unconsolidated
cellular entity (2,037)
Deferred income taxes 25,947
Changes in current assets and
current liabilities 18,954
(Increase) decrease in other
noncurrent assets (1,477)
Increase (decrease) in other
noncurrent liabilities (584)
Retirement benefits 12,517
Excess tax benefits from share-
based compensation -
Other, net (1,768)
Add: Capital expenditures 176,914
----------
Net cash provided by operating
activities 478,913
==========
NONRECURRING ITEMS
(1) - Severance and related costs due to workforce reduction,
including revenue impact.
(2) - Includes (i) $72.4 million after-tax gains recorded upon
redemption of Rural Telephone Bank stock and sale of Arizona
properties, (ii) $3.0 million severance and related costs
due to workforce reduction, including revenue impact, net of
tax, and (iii) $6.4 million net tax benefit due to the
resolution of various income tax audit issues.
(3) - Includes (i) $3.7 million after-tax expense related to
purchasing and retiring approximately $400 million of Series
J notes, net of (ii) $3.3 million net benefit related to the
settlement of various income tax audits.
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