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Alltel Corp.


Announces First Quarter Earnings

LITTLE ROCK, AR, April 17, 1991 -- Alltel Corp. announced today its financial results for the quarter ending March 31, 1991.

First quarter earnings were 58 cents per share, up 5 percent from 55 cents a year ago on 2 percent fewer average common shares outstanding. Net income advanced 3 percent to $46,801,000 from the $45,658,000 reported in the first quarter last year. Revenues and sales were $411,730,000, up 7 percent from $384,533,000 in the corresponding quarter of 1990.

Earnings per share for the 12 months ended March 31, 1991 were $2.37, up 10 percent from $2.15 a year ago. Net income was $193,952,000, an increase of 9 percent over $177,358,000 last year on revenues and sales of $1,600,982,000, up 6 percent from $1,507,760,000 in the corresponding period last year.

Joe T. Ford, Alltel president and chief executive officer, said, "General economic conditions were a contributing factor in Alltel's reduced growth this quarter. This impact of the recession was particularly evident in the distribution business segment, which experienced reduced sales growth and increased margin pressure. Telephone access line growth was below traditional levels again this quarter, and while telephone operating expenses are up over the quarter a year ago, expenses have been held flat the past three quarters.

"Systematics -- Alltel's information services subsidiary -- produced a sharp increase in revenues driven by its strong facilities management business. However, its profits were partially offset by start-up costs associated with its new telecommunications division and the cost infrastructure necessary to pursue new software markets, both domestically and internationally."

Cellular telephone operations continued to produce excellent growth in revenues and customers.

Alltel's stock buyback program also contributed to the quarter's results. Alltel has repurchased 2.1 million of its common shares on the open market.

Alltel Corp. (NYSE:AT) provides telephone service to nearly 1.2 million customers in 25 states and has subsidiaries or investments in companies that provide cellular telephone, long-distance and information services, communications, products and other related services.

Contact: Ronald D. Payne, Vice President, Investor Relations, Alltel Corp., One Allied Drive, Little Rock, AR 72202. (501) 661-8000.
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Title Annotation:Public Company Corporate Reports
Publication:Arkansas Business
Date:May 6, 1991
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