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Alltel Corp.


Second-Quarter Earnings Up 7 Percent

LITTLE ROCK -- For the period ending June 30, Alltel Corp.'s second-quarter earnings were 58 cents per share, up 7 percent from 54 cents a year ago on 1 percent fewer average common shares outstanding.

Net income advanced 5 percent to $46,875,000 from the $44,620,000 reported in the second quarter last year, while revenues and sales were $439,929,000, up 13 percent from $388,585,000 in the corresponding quarter of 1990.

Earnings per share for the six months ended June 30 were $1.16, up 5 percent from $1.10 a year ago.

Net income was $93,676,000, an increase of 4 percent over $90,268,000 last year on revenues and sales of $851,659,000, up 10 percent from $773,118,000 in the corresponding period last year.

For the 12 months ended June 30, earnings per share rose 11 percent to $2.41, up from $2.18 a year ago.

Net income was $196,208,000, an increase of 10 percent over $178,876,000 last year on revenues and sales of $1,652,326,000, up 8 percent from $1,528,580,000 in the corresponding period last year.

Joe Ford, Alltel's chairman and president, said, "Alltel achieved an improvement in earnings again this quarter despite a continued soft economy.

"Alltel's product distribution business reflected the most dramatic impact of the recession with reduced sales growth and declining margins.

"The core telephone business also experienced slower than historical growth in customer lines. Increases were further tempered by a $4.75-million annual rate reduction ordered at the company's Pennsylvania subsidiary.

"Systematics [Alltel's Little Rock-based information services subsidiary] showed sharp revenue growth, with a 55 percent increase over the second quarter last year. Results were particularly strong in the facilities management portion of the business, with Systematics' current contract backlog exceeding $1.2 billion, up more than 85 percent in the past year.

"Systematics' operating income, however, continues to be impacted by costs associated with new contracts, starting up its new telecommunications division and pursuing new software markets, both domestically and internationally.

"The company's cellular subsidiary continued strong customer growth and posted another sharp increase in revenues and operating income over the the same period last year."

Alltel provides telephone service to almost 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, Alltel Corp., One Allied Drive, Little Rock, 72202, 661-8000.
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Title Annotation:Public company coporate reports
Publication:Arkansas Business
Article Type:company profile
Date:Aug 12, 1991
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