CenturyTel Reports Strong Second Quarter Results.Business Editors & High Tech 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)--July 25, 2002 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 2002.
-- Revenues from continuing operations increased 7.2% to $438.7 million.
-- Earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA), excluding nonrecurring items, rose 9.6% to $221.0 million.
-- Income from continuing operations, excluding nonrecurring items, climbed 20.2% to $47.5 million.
-- Diluted earnings per share from continuing operations, excluding nonrecurring items, climbed 17.9% to $.33.
-- Free cash flow generated in second quarter 2002 was $53.0 million.
Second Quarter Highlights
(Excluding nonrecurring items)
(In thousands, except per share and customer amounts)
Quarter Ended Quarter Ended % Change
6/30/02 6/30/01
Revenues from continuing
operations $ 438,702 $ 409,250 7.2%
EBITDA from continuing
operations (1) $ 221,020 $ 201,582 9.6%
Income from continuing
operations (1) $ 47,547 $ 39,543 (2) 20.2%
Net Income $ 86,102 $ 67,673 (2) 27.2%
Diluted Earnings Per
Share from continuing
operations (1) $ .33 $ .28 (2) 17.9%
Diluted Earnings Per Share $ .60 $ .48 (2) 25.0%
Average Diluted Shares
Outstanding 142,705 142,059 0.5%
Telephone Revenues $ 380,499 $ 367,884 3.4%
Other Operations Revenues $ 58,203 $ 41,366 40.7%
----------------------------------------------------------------------
Telephone Access Lines 1,795,180 1,807,950 (0.7)%
Long Distance Customers 536,394 414,486 29.4%
----------------------------------------------------------------------
(1) Includes corporate overheads previously allocated to discontinued
operations.
(2) As adjusted to reflect the after-tax effect of eliminating
goodwill amortization in accordance with SFAS 142.
"We are pleased with the strong increase in CenturyTel's revenue and cash flow from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , excluding nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. items," Glen F. Post, III, president and chief executive officer, said. "We continue to experience strong demand for our long distance and 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 services, adding more than 120,000 long distance customers and more than doubling our DSL subscribers since second quarter 2001." 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 continuing operations for the second quarter rose 7.2% to $438.7 million from $409.3 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 continuing operations, excluding nonrecurring items, grew to $221.0 million from $201.6 million. The Company achieved a consolidated EBITDA margin of 50.4% during the quarter. Income from continuing operations for the quarter, excluding nonrecurring items, increased 20.2% to $47.5 million from $39.5 million in second quarter 2001(as adjusted). 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 continuing operations, excluding nonrecurring items, increased 17.9% to $.33 from $.28 (as adjusted). Diluted earnings per share, excluding nonrecurring items, increased 25.0% to $.60 from $.48 (as adjusted). Telephone revenues grew 3.4% to $380.5 million during the quarter, compared with $367.9 million in second quarter 2001. Revenues for the quarter were driven by an increase in Universal Service Fund payments and internal revenue growth of 2.3%, which was negatively impacted by a decline in intrastate in·tra·state adj. Relating to or existing within the boundaries of a state. Adj. 1. intrastate - relating to or existing within the boundaries of a state; "intrastate as well as interstate commerce" revenue. Telephone 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 due to acquisition integration, employee-related, network, and depreciation expenses partially offset by a decrease in retail bad debt and access charge expenses. 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 nonrecurring items, increased 4.1% to $118.7 million from $114.1 million (as adjusted), and telephone EBITDA, excluding nonrecurring items, rose 5.3% to $208.9 million from $198.3 million a year ago. CenturyTel's second quarter telephone EBITDA margin was 54.9% while the operating income margin was 31.2%. Other Operations revenues grew 40.7% to $58.2 million during second quarter 2002, compared with $41.4 million in second quarter 2001. CenturyTel's long distance revenues increased $5.9 million, or 20.9%, to $34.5 million. CenturyTel now serves more than 536,000 long distance customers, adding more than 21,000 during the quarter. 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 68.7% to $14.7 million in second quarter 2002 from $8.7 million in second quarter 2001. The Internet business generated positive 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. of $55,000 for the quarter compared to negative operating cash flow of $2.7 million for the second quarter 2001. CenturyTel 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) revenues increased by $4.7 million, of which $4.0 million resulted from the acquisition of CLEC assets in Monroe and Shreveport Shreveport (shrēv`pôrt), city (1990 pop. 198,525), seat of Caddo parish, NW La., on the Red River near the Tex. and Ark. lines; inc. 1839. , Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. , at the end of February February: see month. , 2002.
"Revenue from Other Operations, which includes long distance, Internet and CLEC operations, rose 40.7 percent to more than $58 million during the quarter, reflecting solid revenue growth in all three areas. We believe CenturyTel's strong financial performance this quarter is a good indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. that rural telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. is one of the industry's brightest segments," Post said. For second quarter 2002, 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 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). ), the Company reported net income of $78.8 million, or $.55 per 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. share, compared to net income of $168.4 million (as adjusted), or $1.19 per diluted share in second quarter 2001. Nonrecurring items in second quarter 2002 include a $15 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge ($9.8 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. ) related to a reserve for uncollectible Adj. 1. uncollectible - not capable of being collected; "a bad (or uncollectible) debt" bad invalid - having no cogency or legal force; "invalid reasoning"; "an invalid driver's license" revenues primarily from WorldCom The former name of MCI. Based in Jackson, MS, WorldCom, Inc. was a major, international telecommunications carrier. It was founded in 1983 by Bernard Ebbers as Long Distance Discount Service (LDDS), a reseller of AT&T WATS lines to small businesses. and a nonrecurring $2.4 million after-tax gain on the sale of a PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. license. Net income in second quarter 2001 includes a net favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. $100.7 million impact from nonrecurring items which consisted of the gain on sale of PCS licenses to Leap Wireless Leap Wireless International Inc. is a public telecommunications company that provides customers with affordable wireless services through its subsidiaries, Cricket and Jump Mobile. ($107.5 million after-tax) and the write down of certain non-operating investments ($6.8 million after-tax). For the first six months of 2002, income from continuing operations, excluding nonrecurring items, increased 16.6% to $92.4 million from $79.2 million in 2001 (as adjusted) and diluted earnings per share increased 22.0% to $1.11 from $.91 (as adjusted). Consolidated revenues increased 5.0% to $861.6 million from $820.9 million while EBITDA was $433.0 million compared to $409.2 million a year ago, a 5.8% increase. The Company continues to reflect its wireless business as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. due to its pending divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). . As a result of this treatment, depreciation expense for the wireless operations was discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: effective March 19, 2002, the date of the definitive agreement. This reduction in wireless depreciation contributed approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $.05 to earnings per share for second quarter 2002. Income from continuing operations includes total interest expense and $5.1 million of corporate overheads previously absorbed Absorbed 1. In a general business sense, when a cost is treated as an expense instead of being passed on to the customer in the form of higher prices. 2. In underwriting, when an issue has been completely sold to the public. 3. by the Company's wireless operations. For the third quarter 2002, the Company expects revenue from continuing operations to be $515 to $530 million. Operating cash flow from continuing operations is expected to be $260 to $270 million. Diluted earnings per share from continuing operations is anticipated to be $.40 to $.44, while total diluted earnings per share is expected to be $.49 to $.54 for third quarter 2002. These estimates exclude nonrecurring items and one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. integration costs of $4.0 to $6.0 million related to the pending Verizon Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. acquisition. These
estimates also include Alabama Alabama, indigenous people of North AmericaAlabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). telephone properties acquired July July: see month. 1, 2002, and assume that the sale of the Company's wireless business and the acquisition of Missouri telephone properties occur as scheduled on August 1, 2002, and August 31, 2002, respectively. For the full year 2002, the Company expects its total diluted earnings per share, excluding nonrecurring items and one-time acquisition integration costs of $8 - $10 million, to be $2.08 to $2.20, an increase from prior full year 2002 earnings per share guidance of $2.06 to $2.18. This guidance is based upon several financing, operational and other assumptions, including the timely close of our pending wireless divestiture and Verizon acquisition in Missouri discussed above. The Company continues to believe the net effect of its wireless divestiture and its Verizon acquisitions will be breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations to $.03 accretive to earnings per share during the first full year of operations, based upon current financing, operational and other assumptions. The Company's financing plans are now substantially complete. We successfully completed a $500 million equity units offering in May and recently completed a new $800 million credit facility. We anticipate using a portion of the proceeds from the divestiture of the Company's wireless business to complete the Missouri acquisition. We believe the Company's existing facilities, together with internally generated cash, may be sufficient to fund the December December: see month. 2002 tax payment related to the wireless sale. The Company also has $400 million in remarketable debt securities coming due in October October: see month. 2002. We believe a number of financing options are available to fund these requirements if necessary. In addition to historical information, this release includes 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 CenturyTel. 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:
ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" changes in the regulation of the Company or the communications industry communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. generally; the effects of greater than anticipated competition in the Company's markets; possible changes in the demand for, or pricing of, 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; higher than anticipated interest rates; 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 31, 2001. The information contained in this release is as of July 25, 2002. The Company undertakes no obligation to update or revise any of this information whether as a result of new information, future events or developments, or otherwise. CenturyTel's management will host a conference call at 10:30 A.M. Central time today. Interested parties can access the call by dialing 800.729.6845 and the call will be accessible for replay by calling 800.642.1687 and entering the conference-id number: 12475. Investors can also listen to CenturyTel's earnings conference call and replay by accessing the Company's Web site at www.centurytel.com. CenturyTel, Inc. provides communications services including local exchange, wireless, long distance, Internet access See how to access the Internet. and data services to more than three million customers in 22 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, 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 Web site at <www.centurytel.com)
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(UNAUDITED)
AS REPORTED
---------------------------------------------
In thousands, except per INCREASE
share amounts 2002 2001 (DECREASE)
---------------------------------------------
TELEPHONE OPERATIONS
Operating revenues
Local service $ 125,357 123,293 1.7%
Network access 220,702 212,570 3.8%
Other 34,440 32,021 7.6%
--------- ---------
380,499 367,884 3.4%
--------- ---------
Operating expenses
Plant operations 96,147 93,490 2.8%
Customer operations 32,385 28,814 12.4%
Corporate and other 58,099 47,271 22.9%
Depreciation and
amortization 90,159 98,927 (8.9%)
--------- ---------
276,790 268,502 3.1%
--------- ---------
Telephone operating income 103,709 99,382 4.4%
--------- ---------
OTHER OPERATIONS
Operating revenues
Long distance 34,462 28,514 20.9%
Internet 14,706 8,718 68.7%
Other 9,035 4,134 118.6%
--------- ---------
58,203 41,366 40.7%
--------- ---------
Operating expenses
Cost of sales and other 43,402 34,897 24.4%
Depreciation and
amortization 3,845 1,663 131.2%
--------- ---------
47,247 36,560 29.2%
--------- ---------
Other operating income 10,956 4,806 128.0%
--------- ---------
Corporate overhead costs
allocable to discontinued
operations (5,134) (4,979) 3.1%
--------- ---------
TOTAL OPERATING INCOME 109,531 99,209 10.4%
OTHER INCOME (EXPENSE)
Nonrecurring gains and
losses 3,709 (10,500) (135.3%)
Interest expense (54,157) (57,358) (5.6%)
Other income and
expense 2,485 1,783 39.4%
Income tax expense (21,360) (12,066) 77.0%
--------- ---------
INCOME FROM CONTINUING
OPERATIONS 40,208 21,068 90.8%
DISCONTINUED OPERATIONS,
NET OF TAX 38,555 133,173 (71.0%)
--------- ---------
NET INCOME $ 78,763 154,241 (48.9%)
Add: After tax effect of
goodwill amortization - 14,135 -
--------- ---------
NET INCOME, AS ADJUSTED $ 78,763 168,376 (53.2%)
========= =========
BASIC EARNINGS PER SHARE
From continuing
operations $ 0.28 0.15 86.7%
From continuing
operations, as
adjusted (1) $ 0.28 0.23 21.7%
From discontinued
operations $ 0.27 0.95 (71.6%)
From discontinued
operations, as
adjusted (1) $ 0.27 0.96 (71.9%)
Basic earnings per
share $ 0.56 1.10 (49.1%)
Basic earnings per
share, as
adjusted (1) $ 0.56 1.20 (53.3%)
DILUTED EARNINGS PER SHARE
From continuing
operations $ 0.28 0.15 86.7%
From continuing
operations, as
adjusted (1) $ 0.28 0.23 21.7%
From discontinued
operations $ 0.27 0.94 (71.3%)
From discontinued
operations, as
adjusted (1) $ 0.27 0.95 (71.6%)
Diluted earnings per
share $ 0.55 1.09 (49.5%)
Diluted earnings per
share, as
adjusted (1) $ 0.55 1.19 (53.8%)
SHARES OUTSTANDING
Basic 141,243 140,720 0.4%
Diluted 142,705 142,059 0.5%
DIVIDENDS PER COMMON
SHARE $ 0.0525 0.0500 5.0%
EXCLUDING NONRECURRING ITEMS
--------------------------------------------
INCREASE
2002 2001 (DECREASE)
--------------------------------------------
TELEPHONE OPERATIONS
Operating revenues
Local service $ 125,357 123,293 1.7%
Network access 220,702 212,570 3.8%
Other 34,440 32,021 7.6%
--------- ---------
380,499 367,884 3.4%
--------- ---------
Operating expenses
Plant operations 96,147 93,490 2.8%
Customer operations 32,385 28,814 12.4%
Corporate and other 43,099 47,271 (8.8%)
Depreciation and
amortization 90,159 98,927 (8.9%)
--------- ---------
261,790 268,502 (2.5%)
--------- ---------
Telephone operating income 118,709 99,382 19.4%
--------- ---------
OTHER OPERATIONS
Operating revenues
Long distance 34,462 28,514 20.9%
Internet 14,706 8,718 68.7%
Other 9,035 4,134 118.6%
--------- ---------
58,203 41,366 40.7%
--------- ---------
Operating expenses
Cost of sales and other 43,402 34,897 24.4%
Depreciation and
amortization 3,845 1,663 131.2%
--------- ---------
47,247 36,560 29.2%
--------- ---------
Other operating income 10,956 4,806 128.0%
--------- ---------
Corporate overhead costs
allocable to discontinued
operations (5,134) (4,979) 3.1%
--------- ---------
TOTAL OPERATING INCOME 124,531 99,209 25.5%
OTHER INCOME (EXPENSE)
Nonrecurring gains and
losses - - -
Interest expense (54,157) (57,358) (5.6%)
Other income and
expense 2,485 1,783 39.4%
Income tax expense (25,312) (15,741) 60.8%
--------- ---------
INCOME FROM CONTINUING
OPERATIONS 47,547 27,893 70.5%
DISCONTINUED OPERATIONS,
NET OF TAX 38,555 25,645 50.3%
--------- ---------
NET INCOME $ 86,102 53,538 60.8%
Add: After tax effect of
goodwill amortization - 14,135 -
--------- ---------
NET INCOME, AS ADJUSTED $ 86,102 67,673 27.2%
========= =========
BASIC EARNINGS PER SHARE
From continuing
operations $ 0.34 0.20 70.0%
From continuing
operations, as
adjusted (1) $ 0.34 0.28 21.4%
From discontinued
operations $ 0.27 0.18 50.0%
From discontinued
operations, as
adjusted (1) $ 0.27 0.20 35.0%
Basic earnings per
share $ 0.61 0.38 60.5%
Basic earnings per
share, as
adjusted (1) $ 0.61 0.48 27.1%
DILUTED EARNINGS PER SHARE
From continuing
operations $ 0.33 0.20 65.0%
From continuing
operations, as
adjusted (1) $ 0.33 0.28 17.9%
From discontinued
operations $ 0.27 0.18 50.0%
From discontinued
operations, as
adjusted (1) $ 0.27 0.20 35.0%
Diluted earnings per
share $ 0.60 0.38 57.9%
Diluted earnings per
share, as
adjusted (1) $ 0.60 0.48 25.0%
SHARES OUTSTANDING
Basic 141,243 140,720 0.4%
Diluted 142,705 142,059 0.5%
DIVIDENDS PER COMMON
SHARE $ 0.0525 0.0500 5.0%
(1) As adjusted to reflect the after-tax effect of eliminating
goodwill amortization in accordance with SFAS 142.
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(UNAUDITED)
In thousands, AS REPORTED EXCLUDING NONRECURRING ITEMS
except per --------------------------- ----------------------------
share INCREASE INCREASE
amounts 2002 2001 (DECREASE) 2002 2001 (DECREASE)
--------------------------- ----------------------------
TELEPHONE OPERATIONS
Operating revenues
Local
service $249,234 244,454 2.0% 249,234 244,454 2.0%
Network
access 437,278 426,437 2.5% 437,278 426,437 2.5%
Other 66,718 68,242 (2.2%) 66,718 68,242 (2.2%)
-------- ------- ------- -------
753,230 739,133 1.9% 753,230 739,133 1.9%
-------- ------- ------- -------
Operating
expenses
Plant
operations 187,233 187,375 (0.1%) 187,233 185,375 1.0%
Customer
operations 62,323 58,071 7.3% 62,323 58,071 7.3%
Corporate
and
other 102,495 94,036 9.0% 87,495 94,036 (7.0%)
Depreciation
and
amortization 179,502 196,288 (8.6%) 179,502 196,288 (8.6%)
-------- ------- ------- -------
531,553 535,770 (0.8%) 516,553 533,770 (3.2%)
-------- ------- ------- -------
Telephone
operating
income 221,677 203,363 9.0% 236,677 205,363 15.2%
-------- ------- ------- -------
OTHER OPERATIONS
Operating
revenues
Long
distance 66,279 56,114 18.1% 66,279 56,114 18.1%
Internet 27,267 17,117 59.3% 27,267 17,117 59.3%
Other 14,844 8,488 74.9% 14,844 8,488 74.9%
-------- ------- ------- -------
108,390 81,719 32.6% 108,390 81,719 32.6%
-------- ------- ------- -------
Operating
expenses
Cost of
sales
and
other 84,826 68,486 23.9% 84,826 68,486 23.9%
Depreciation
and
amortization 6,729 3,120 115.7% 6,729 3,120 115.7%
-------- ------- ------- -------
91,555 71,606 27.9% 91,555 71,606 27.9%
-------- ------- ------- -------
Other
operating
income 16,835 10,113 66.5% 16,835 10,113 66.5%
-------- ------- ------- -------
Corporate
overhead
costs
allocable
to
discontinued
operations (9,932) (9,958) (0.3%) (9,932) (9,958) (0.3%)
-------- ------- ------- -------
TOTAL OPERATING
INCOME 228,580 203,518 12.3% 243,580 205,518 18.5%
OTHER INCOME (EXPENSE)
Nonrecurring
gains
and
losses 3,709 (10,500) (135.3%) -- -- --
Interest
expense (104,805) (119,061) (12.0%)(104,805)(119,061) (12.0%)
Other
income
and
expense 217 4,250 (94.9%) 3,217 4,250 (24.3%)
Income
tax
expense (44,636) (30,288) 47.4% (49,638) (34,763) 42.8%
-------- ------- ------- -------
INCOME FROM
CONTINUING
OPERATIONS 83,065 47,919 73.3% 92,354 55,944 65.1%
DISCONTINUED
OPERATIONS,
NET OF TAX 66,465 153,044 (56.6%) 66,465 45,516 46.0%
-------- ------- ------- -------
NET INCOME $149,530 200,963 (25.6%) 158,819 101,460 56.5%
Add: After
tax effect
of goodwill
amortization -- 28,218 -- -- 28,218 --
-------- ------- ------- -------
NET INCOME,
AS ADJUSTED $149,530 229,181 (34.8%) 158,819 129,678 22.5%
======== ======= ======= =======
BASIC EARNINGS
PER SHARE
From
continuing
operations $0.59 0.34 73.5% 0.65 0.40 62.5%
From
continuing
operations,
as
adjusted (1) $0.59 0.51 15.7% 0.65 0.56 16.1%
From
discontinued
operations $0.47 1.09 (56.9%) 0.47 0.32 46.9%
From
discontinued
operations,
as
adjusted (1) $0.47 1.12 (58.0%) 0.47 0.36 30.6%
Basic
earnings
per share $1.06 1.43 (25.9%) 1.12 0.72 55.6%
Basic
earnings
per share,
as
adjusted (1) $1.06 1.63 (35.0%) 1.12 0.92 21.7%
DILUTED
EARNINGS
PER SHARE
From
continuing
operations $0.58 0.34 70.6% 0.65 0.39 66.7%
From
continuing
operations,
as
adjusted (1) $0.58 0.50 16.0% 0.65 0.56 16.1%
From
discontinued
operations $0.47 1.08 (56.5%) 0.47 0.32 46.9%
From
discontinued
operations,
as
adjusted (1) $0.47 1.11 (57.7%) 0.47 0.35 34.3%
Diluted
earnings
per
share $1.05 1.41 (25.5%) 1.11 0.71 56.3%
Diluted
earnings
per
share,
as
adjusted (1) $1.05 1.61 (34.8%) 1.11 0.91 22.0%
SHARES OUTSTANDING
Basic 141,136 140,656 0.3% 141,136 140,656 0.3%
Diluted 142,679 142,271 0.3% 142,679 142,271 0.3%
DIVIDENDS
PER COMMON
SHARE $0.1050 0.1000 5.0% 0.1050 0.1000 5.0%
(1) As adjusted to reflect the after-tax effect of eliminating
goodwill amortization in accordance with SFAS 142.
CenturyTel, Inc.
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2002 AND DECEMBER 31, 2001
(UNAUDITED)
------------- -------------
June 30, December 31,
2002 2001
------------- -------------
(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 302,070 3,496
Other current assets 193,748 226,417
------------- -------------
Total current assets 495,818 229,913
------------- -------------
PROPERTY, PLANT AND EQUIPMENT
Telephone 5,385,714 5,292,255
Other 488,999 446,920
Accumulated depreciation (3,149,617) (3,003,033)
------------- -------------
Net property, plant and equipment 2,725,096 2,736,142
------------- -------------
INVESTMENTS AND OTHER ASSETS
Excess cost of net assets acquired 2,115,313 2,087,158
Other 439,855 420,043
------------- -------------
Total investments and other assets 2,555,168 2,507,201
------------- -------------
ASSETS HELD FOR SALE 861,226 845,428
------------- -------------
TOTAL ASSETS $ 6,637,308 6,318,684
============= =============
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term debt and current
maturities of long-term debt $ 605,772 1,008,834
Other current liabilities 264,157 230,048
------------- -------------
Total current liabilities 869,929 1,238,882
LONG-TERM DEBT 2,576,813 2,087,500
DEFERRED CREDITS AND OTHER
LIABILITIES 560,797 506,052
LIABILITIES RELATED TO ASSETS
HELD FOR SALE 171,680 148,870
STOCKHOLDERS' EQUITY 2,458,089 2,337,380
------------- -------------
TOTAL LIABILITIES AND EQUITY $ 6,637,308 6,318,684
============= =============
CAPITAL EXPENDITURES
SIX MONTHS ENDED JUNE 30, 2002 AND 2001
----------- ----------- INCREASE
2002 2001 (DECREASE)
----------- ----------- ----------
(in thousands)
Telephone $ 145,822 161,817 (9.9%)
Wireless (discontinued operations) 20,264 33,596 (39.7%)
Other 33,212 47,905 (30.7%)
----------- -----------
Total capital expenditures $ 199,298 243,318 (18.1%)
=========== ===========
CAPITAL EXPENDITURES
THREE MONTHS ENDED JUNE 30, 2002 AND 2001
----------- ----------- INCREASE
2002 2001 (DECREASE)
----------- ----------- ----------
(in thousands)
Telephone $ 78,284 89,137 (12.2%)
Wireless (discontinued operations) 14,127 15,264 (7.4%)
Other 27,218 18,332 48.5%
----------- -----------
Total capital expenditures $ 119,629 122,733 (2.5%)
=========== ===========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion