MONROE, La.--(BUSINESS WIRE)--April 29, 2004--CenturyTel, Inc.
(NYSE:CTL) announces operating results for first quarter 2004.
-- Operating revenues increased 2.7% to $593.7 million from
$578.0 million.
-- Operating cash flow (as defined in the attached financial
schedules), excluding nonrecurring items, rose to $310.5
million.
-- Net income, excluding nonrecurring items, grew 3.2% to $83.3
million. Reported under GAAP, net income was $83.3 million
compared to $83.9 million in first quarter 2003.
-- Diluted earnings per share, excluding nonrecurring items,
increased 3.6% to $.58 from $.56 in first quarter 2003.
Reported under GAAP, diluted earnings per share for both first
quarter 2004 and first quarter 2003 were $.58.
-- Free cash flow (as defined in the attached financial
schedules) was $148.5 million in first quarter 2004.
-- During the first quarter, the Company repurchased 4,942,000
shares of common stock under its share repurchase program.
First Quarter Highlights(1) Quarter Quarter
(In thousands, except per share Ended Ended
amounts and customer units 3/31/04 3/31/03 % Change
---------------------------------- ------------ ------------ ---------
Operating Revenues $ 593,704 $ 578,014 2.7%
Operating Cash Flow $ 310,549 $ 306,579 1.3%
Net Income $ 83,279 $ 80,696 3.2%
Diluted Earnings Per Share $ .58 $ .56 3.6%
Average Diluted Shares Outstanding 143,347 143,797 (0.3)%
Capital Expenditures $ 61,745 $ 59,669 3.5%
---------------------------------- ------------ ------------ ---------
Telephone Access Lines 2,366,420 2,407,152 (1.7)%
Long Distance Lines(2) 971,922 848,810 14.5%
DSL Connections 97,092 60,615 60.2%
---------------------------------- ------------ ------------ ---------
(1) These results include adjustments for nonrecurring items and other
non-GAAP financial measures. A reconciliation of these items to
comparable GAAP measures is included in the attached financial
schedules.
(2) Effective first quarter 2004, long distance units are reported on
a line basis instead of a customer basis. First quarter 2003 has
been restated on a line basis to ensure period-to-period
comparability.
"CenturyTel
achieved both revenue and earnings growth in the first
quarter while continuing to generate strong free cash flow," Glen F.
Post, III, chairman and chief executive officer, said. "We also made
excellent progress with our share repurchase program announced in
February, investing over $139 million to acquire more than 4.9 million
shares of common stock."
As previously announced, CenturyTel
is presenting its results of
operations in a single segment format beginning first quarter 2004.
The Company is also reporting separate revenue components that align
with its major products and services. However, CenturyTel
is providing
operating cash flow and operating income information on a consolidated
basis only. Quarterly and full year 2003 financial results have been
restated to conform to the single segment format and are included in
the attached schedules.
Operating revenues rose 2.7% to $593.7 million in first quarter
2004 from $578.0 million in first quarter 2003. This $15.7 million
revenue increase was driven primarily by the fiber assets acquired
during 2003, data revenue growth from DSL subscriber and data circuit
additions and increased enhanced calling feature penetration. These
increases more than offset revenue declines attributable to lower
intrastate toll revenues and universal service funding, along with
access line losses.
Operating expenses, excluding nonrecurring items, increased 3.0%
to $410.1 million, or $11.9 million over first quarter 2003. Cost of
services and products increased $3.7 million primarily due to the
fiber assets acquired during 2003. Selling, general and administrative
expenses, excluding nonrecurring items, increased $8.0 million
primarily due to the 2003 fiber asset acquisitions, increases in
employee costs and increased marketing expenses.
Operating cash flow, excluding nonrecurring items, increased 1.3%
to $310.5 million from $306.6 million. CenturyTel
achieved an
operating cash flow margin, excluding nonrecurring items, of 52.3%
during the quarter versus 53.0% in first quarter 2003.
Net income, excluding nonrecurring items, increased 3.2% to $83.3
million from $80.7 million in first quarter 2003 due to a $3.7 million
increase in operating income and lower interest expense, which were
partially offset by the previously announced increase in state income
taxes. Diluted earnings per share, excluding nonrecurring items,
increased 3.6% to $.58 from $.56.
"The launch of tiered DSL service during the first quarter across
CenturyTel's
more than 1.5 million DSL-enabled lines was well received
as we added more than 13,600 DSL customers, a 90% increase over net
additions in fourth quarter 2003. Additionally, a majority of these
customers selected bundles with higher speed service offerings," Post
said.
For first quarter 2004, CenturyTel
reported, under generally
accepted accounting principles (GAAP), operating revenues of $593.7
million, a 2.7% increase from $578.0 million in first quarter 2003.
The Company reported net income of $83.3 million and diluted earnings
per share of $.58, compared to $83.9 million and $.58 per diluted
share, respectively, in first quarter 2003. Net income in first
quarter 2003 included a nonrecurring $5.0 million pre-tax partial
recovery of amounts previously written off in connection with the
WorldCom bankruptcy.
For the second quarter 2004, CenturyTel
expects total revenues of
$590 to $605 million and diluted earnings per share of $.52 to $.56,
which reflects $4.6 million of expenses in connection with the planned
prepayment in early May of the Company's $100 million aggregate
principal amount of Series B senior notes. For the full year 2004,
diluted earnings per share is expected to be in the range of $2.20 to
$2.35, an increase of $.15 over previously provided guidance. This
increase in full year 2004 EPS guidance is primarily due to stronger
first quarter revenues than expected, lower 2004 expenses than
originally forecast and fewer fully diluted shares as a result of
share repurchases during the first quarter.
These outlook figures are presented on a GAAP basis, excluding
non-recurring items and the potential impact of any future mergers,
acquisitions, divestitures, 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 for
management to evaluate the Company's performance, we believe these
measurements assist readers 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 on 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 for, measures prepared in accordance 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 800.346.2923. The
call will be accessible for replay until 1:00 p.m. Central Time, May
6, 2004, by calling 800.332.6854 and entering the conference ID number
3383. Investors can also listen to CenturyTel's
earnings conference
call and replay by accessing the Company's Web site at
www.centurytel.com.
In addition to historical information, this release includes
certain forward-looking statements, 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, or if underlying
assumptions prove incorrect. Factors that could affect actual results
include but are not limited to: the timing, success and overall
effects of competition from a wide variety of competitive providers;
the risks inherent in rapid technological change; the effects of
ongoing changes in the regulation of the communications industry; the
Company's ability to effectively manage its growth, including
integrating newly-acquired businesses into the Company's operations,
hiring adequate numbers of qualified staff, and successfully upgrading
its billing and other information systems; possible changes in the
demand for, or pricing of, the Company's products and services; the
Company's ability to successfully introduce new product or service
offerings on a timely and cost-effective basis; the Company's ability
to collect its receivables from financially troubled communications
companies; other risks referenced from time to time in the Company's
filings with the Securities and Exchange Commission; and the effects
of more general factors such as changes in interest rates, in
accounting policies or practices, in operating, medical or
administrative costs, 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 for the
year ended December 31, 2003. You are 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 April 29, 2004. The Company undertakes no obligation to update
any of its forward-looking statements.
CenturyTel, Inc.
provides communications services including local,
long distance, Internet access and data services to more than 3
million customers in 22 states. The company, headquartered in Monroe,
Louisiana, is publicly traded on the New York Stock Exchange under the
symbol CTL, and is included in the S&P 500 Index. CenturyTel
is the
8th largest local exchange telephone company, based on access lines,
in the United States. Visit CenturyTel
at www.centurytel.com.
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(UNAUDITED)
Three months ended
March 31, 2004
--------------------------------
As
adjusted
Less excluding
non- non-
As recurring recurring
In thousands, except per share reported items items
amounts ---------- ---------- ----------
OPERATING REVENUES
Local service $ 178,058 178,058
Network access 240,957 240,957
Long distance 44,589 44,589
Data 65,628 65,628
Fiber transport and CLEC 17,432 17,432
Other 47,040 47,040
---------- ---------- ----------
593,704 - 593,704
---------- ---------- ----------
OPERATING EXPENSES
Cost of services and products 181,549 181,549
Selling, general and administrative 101,606 101,606
Depreciation and amortization 126,992 126,992
---------- ---------- ----------
410,147 - 410,147
---------- ---------- ----------
OPERATING INCOME 183,557 - 183,557
OTHER INCOME (EXPENSE)
Interest expense (52,543) (52,543)
Income from unconsolidated cellular
entity 2,059 2,059
Other income and expense 2,304 2,304
Income tax expense (52,098) (52,098)
---------- ---------- ----------
NET INCOME $ 83,279 - 83,279
========== ========== ==========
BASIC EARNINGS PER SHARE $ 0.58 0.58
DILUTED EARNINGS PER SHARE $ 0.58 0.58
SHARES OUTSTANDING
Basic 142,585 142,585
Diluted 143,347 143,347
DIVIDENDS PER COMMON SHARE $ 0.0575 0.0575
Three months ended
March 31, 2003
--------------------------------
As
adjusted
Less excluding
non- non-
As recurring recurring
In thousands, except per share reported items items
amounts ---------- ---------- ----------
OPERATING REVENUES
Local service 177,013 177,013
Network access 246,330 246,330
Long distance 42,560 42,560
Data 58,136 58,136
Fiber transport and CLEC 5,895 5,895
Other 48,080 48,080
---------- ---------- ----------
578,014 - 578,014
---------- ---------- ----------
OPERATING EXPENSES
Cost of services and products 177,860 177,860
Selling, general and administrative 88,616 (4,959)(1) 93,575
Depreciation and amortization 126,765 126,765
---------- ---------- ----------
393,241 (4,959) 398,200
---------- ---------- ----------
OPERATING INCOME 184,773 4,959 179,814
OTHER INCOME (EXPENSE)
Interest expense (55,592) (55,592)
Income from unconsolidated cellular
entity 1,569 1,569
Other income and expense (932) (932)
Income tax expense (45,899) (1,736)(2) (44,163)
---------- ---------- ----------
NET INCOME 83,919 3,223 80,696
========== ========== ==========
BASIC EARNINGS PER SHARE 0.59 0.02 0.56
DILUTED EARNINGS PER SHARE 0.58 0.02 0.56
SHARES OUTSTANDING
Basic 142,901 142,901
Diluted 143,797 143,797
DIVIDENDS PER COMMON SHARE 0.055 0.055
Increase
(decrease)
Increase excluding
(decrease) nonrecurring
In thousands, except per share amounts as reported items
------------ ------------
OPERATING REVENUES
Local service 0.6% 0.6%
Network access (2.2%) (2.2%)
Long distance 4.8% 4.8%
Data 12.9% 12.9%
Fiber transport and CLEC 195.7% 195.7%
Other (2.2%) (2.2%)
2.7% 2.7%
OPERATING EXPENSES
Cost of services and products 2.1% 2.1%
Selling, general and administrative 14.7% 8.6%
Depreciation and amortization 0.2% 0.2%
4.3% 3.0%
OPERATING INCOME (0.7%) 2.1%
OTHER INCOME (EXPENSE)
Interest expense (5.5%) (5.5%)
Income from unconsolidated cellular entity 31.2% 31.2%
Other income and expense (347.2%) (347.2%)
Income tax expense 13.5% 18.0%
NET INCOME (0.8%) 3.2%
BASIC EARNINGS PER SHARE (1.7%) 3.6%
DILUTED EARNINGS PER SHARE -% 3.6%
SHARES OUTSTANDING
Basic (0.2%) (0.2%)
Diluted (0.3%) (0.3%)
DIVIDENDS PER COMMON SHARE 4.5% 4.5%
NONRECURRING ITEMS
(1) - Partial recovery of amounts previously written off in connection
with WorldCom bankruptcy.
(2) - Tax effect of item (1).
CenturyTel, Inc.
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2004 AND DECEMBER 31, 2003
(UNAUDITED)
Mar. 31, Dec. 31,
2004 2003
----------- -----------
(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 273,293 203,181
Other current assets 239,807 259,758
----------- -----------
Total current assets 513,100 462,939
----------- -----------
NET PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment 7,227,139 7,184,155
Accumulated depreciation (3,838,323) (3,728,674)
----------- -----------
Net property, plant and equipment 3,388,816 3,455,481
----------- -----------
INVESTMENTS AND OTHER ASSETS
Goodwill 3,426,714 3,425,001
Other 567,875 552,431
----------- -----------
Total investments and other assets 3,994,589 3,977,432
----------- -----------
TOTAL ASSETS $ 7,896,505 7,895,852
=========== ===========
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 172,258 72,453
Other current liabilities 438,179 398,930
----------- -----------
Total current liabilities 610,437 471,383
LONG-TERM DEBT 3,016,992 3,109,302
DEFERRED CREDITS AND OTHER LIABILITIES 854,432 836,651
STOCKHOLDERS' EQUITY 3,414,644 3,478,516
----------- -----------
TOTAL LIABILITIES AND EQUITY $ 7,896,505 7,895,852
=========== ===========
CenturyTel, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Three months ended
March 31, 2004
--------------------------------
As
adjusted
Less excluding
non- non-
As recurring recurring
In thousands reported items items
---------- ---------- ----------
Consolidated operating cash flow
and cash flow margin
Operating income $ 183,557 - 183,557
Add: Depreciation and
amortization 126,992 126,992
---------- ---------- ----------
Consolidated operating cash flow $ 310,549 - 310,549
========== ========== ==========
Revenues $ 593,704 - 593,704
========== ========== ==========
Consolidated operating income margin
(operating income divided by
revenues) 30.9% 30.9%
========== ==========
Consolidated cash flow margin
(operating cash flow divided by
revenues) 52.3% 52.3%
========== ==========
Free cash flow (prior to debt
service requirements and
dividends)
Net income $ 83,279 - 83,279
Add: Depreciation and
amortization 126,992 - 126,992
Less: Capital expenditures (61,745) - (61,745)
---------- ---------- ----------
Free cash flow $ 148,526 - 148,526
========== ========== ==========
Free cash flow $ 148,526
Income from unconsolidated
cellular entity (2,059)
Deferred income taxes 26,673
Changes in current assets and
current liabilities 57,695
Increase in other noncurrent
assets (11,032)
Decrease in other noncurrent
liabilities (3,949)
Retirement benefits 10,830
Other, net (4,989)
Add: Capital expenditures 61,745
----------
Net cash provided by operating
activities $ 283,440
==========
Three months ended
March 31, 2003
---------------------------------
As
adjusted
Less excluding
non- non-
As recurring recurring
In thousands reported items items
----------- ---------- ----------
Consolidated operating cash flow and
cash flow margin
Operating income 184,773 4,959(1) 179,814
Add: Depreciation and amortization 126,765 126,765
----------- ---------- ----------
Consolidated operating cash flow 311,538 4,959 306,579
=========== ========== ==========
Revenues 578,014 - 578,014
=========== ========== ==========
Consolidated operating income
margin (operating income divided
by revenues) 32.0% 31.1%
=========== ==========
Consolidated cash flow margin
(operating cash flow divided by
revenues) 53.9% 53.0%
=========== ==========
Free cash flow (prior to debt
service requirements and dividends)
Net income 83,919 3,223(1) 80,696
Add: Depreciation and amortization 126,765 - 126,765
Less: Capital expenditures (59,669) - (59,669)
----------- ---------- ----------
Free cash flow 151,015 3,223 147,792
=========== ========== ==========
Free cash flow 151,015
Income from unconsolidated cellular
entity (1,569)
Deferred income taxes 9,502
Changes in current assets and
current liabilities 104,810
Increase in other noncurrent assets (6,751)
Decrease in other noncurrent
liabilities (588)
Retirement benefits 5,139
Other, net (1,926)
Add: Capital expenditures 59,669
-----------
Net cash provided by operating
activities 319,301
===========
(1) Partial recovery of amounts previously written off in connection
with WorldCom bankruptcy (presented on both a pre-tax and
after-tax basis).
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED JUNE 30, 2003, SEPTEMBER 30, 2003
AND DECEMBER 31, 2003
RESTATED FOR SINGLE SEGMENT PRESENTATION (a)
(UNAUDITED)
Three months ended
June 30, 2003
--------------------------------
As
adjusted
Less excluding
non- non-
As recurring recurring
In thousands, except per share reported items items
amounts ---------- ---------- ----------
OPERATING REVENUES
Local service $ 178,360 178,360
Network access 248,220 248,220
Long distance 43,201 43,201
Data 60,672 60,672
Fiber transport and CLEC 9,036 9,036
Other 47,240 47,240
---------- ---------- ----------
586,729 - 586,729
---------- ---------- ----------
OPERATING EXPENSES
Cost of services and products 183,960 183,960
Selling, general and administrative 89,723 89,723
Depreciation and amortization 124,665 124,665
---------- ---------- ----------
398,348 - 398,348
---------- ---------- ----------
OPERATING INCOME 188,381 - 188,381
OTHER INCOME (EXPENSE)
Interest expense (55,957) (55,957)
Income from unconsolidated cellular
entity 1,590 1,590
Other income and expense 974 974
Income tax expense (47,621) (47,621)
---------- ---------- ----------
NET INCOME $ 87,367 - 87,367
========== ========== ==========
BASIC EARNINGS PER SHARE $ 0.61 0.61
DILUTED EARNINGS PER SHARE $ 0.60 0.60
SHARES OUTSTANDING
Basic 143,329 143,329
Diluted 144,475 144,475
DIVIDENDS PER COMMON SHARE $ 0.055 0.055
Three months ended
September 30, 2003
--------------------------------
As
adjusted
Less excluding
non- non-
As recurring recurring
In thousands, except per share reported items items
amounts ---------- ---------- ----------
OPERATING REVENUES
Local service 179,136 179,136
Network access 252,757 252,757
Long distance 45,207 45,207
Data 62,008 62,008
Fiber transport and CLEC 13,530 13,530
Other 47,626 47,626
---------- ---------- ----------
600,264 - 600,264
---------- ---------- ----------
OPERATING EXPENSES
Cost of services and products 190,193 190,193
Selling, general and administrative 94,561 94,561
Depreciation and amortization 124,729 124,729
---------- ---------- ----------
409,483 - 409,483
---------- ---------- ----------
OPERATING INCOME 190,781 - 190,781
OTHER INCOME (EXPENSE)
Interest expense (54,360) (54,360)
Income from unconsolidated cellular
entity 1,736 1,736
Other income and expense (1,076) (1,076)
Income tax expense (46,102) 2,527(1) (48,629)
---------- ---------- ----------
NET INCOME 90,979 2,527 88,452
========== ========== ==========
BASIC EARNINGS PER SHARE 0.63 0.02 0.61
DILUTED EARNINGS PER SHARE 0.63 0.02 0.61
SHARES OUTSTANDING
Basic 143,897 143,897
Diluted 145,171 145,171
DIVIDENDS PER COMMON SHARE 0.055 0.055
Three months ended
December 31, 2003
--------------------------------
As
adjusted
Less excluding
non- non-
As recurring recurring
In thousands, except per share reported items items
amounts ---------- ---------- ----------
OPERATING REVENUES
Local service 178,056 178,056
Network access 254,155 1,500(2) 252,655
Long distance 42,916 42,916
Data 64,182 64,182
Fiber transport and CLEC 14,580 14,580
Other 48,714 48,714
---------- ---------- ----------
602,603 1,500 601,103
---------- ---------- ----------
OPERATING EXPENSES
Cost of services and products 187,197 187,197
Selling, general and administrative 101,452 7,500(2) 93,952
Depreciation and amortization 127,493 127,493
---------- ---------- ----------
416,142 7,500 408,642
---------- ---------- ----------
OPERATING INCOME 186,461 (6,000) 192,461
OTHER INCOME (EXPENSE)
Interest expense (60,842) (7,500)(2) (53,342)
Income from unconsolidated cellular
entity 1,265 1,265
Other income and expense 3,188 3,000(3) 188
Income tax expense (47,630) 3,675(4) (51,305)
---------- ---------- ----------
NET INCOME 82,442 (6,825) 89,267
========== ========== ==========
BASIC EARNINGS PER SHARE 0.57 (0.05) 0.62
DILUTED EARNINGS PER SHARE 0.57 (0.05) 0.61
SHARES OUTSTANDING
Basic 144,204 144,204
Diluted 145,354 145,354
DIVIDENDS PER COMMON SHARE 0.055 0.055
(a) Results of operations for 2003 have been restated to conform to
the Company's 2004 presentation of a single reportable segment. In
connection with this restatement, the Company has, among other
things, (i) eliminated certain 2003 revenues arising out of
previously-reported intersegment transactions (which reduced
operating expenses by a like amount and therefore had no impact on
operating income), and (ii) reclassified depreciation expense
related to certain service subsidiaries of the Company to
depreciation expense from operating expenses. Previously with
multiple segment presentation, such costs were allocated to the
Company's regulated telephone operations as an operating expense.
NONRECURRING ITEMS
(1) - Net out of period income tax adjustments.
(2) - Operating taxes, including related revenue effect, and interest
associated with various operating tax audits.
(3) - Reversal of costs previously accrued to defend unsolicited
takeover proposal.
(4) - Tax effect of items (2) and (3).
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
TWELVE MONTHS ENDED DECEMBER 31, 2003
RESTATED FOR SINGLE SEGMENT PRESENTATION (a)
(UNAUDITED)
Twelve months ended
December 31, 2003
--------------------------------
As
adjusted
Less excluding
non- non-
As recurring recurring
In thousands, except per share reported items items
amounts ---------- ---------- ----------
OPERATING REVENUES
Local service 712,565 - 712,565
Network access 1,001,462 1,500(2) 999,962
Long distance 173,884 - 173,884
Data 244,998 - 244,998
Fiber transport and CLEC 43,041 - 43,041
Other 191,660 - 191,660
---------- ---------- ----------
2,367,610 1,500 2,366,110
---------- ---------- ----------
OPERATING EXPENSES
Cost of services and products 739,210 - 739,210
Selling, general and administrative 374,352 2,541(1) 371,811
Depreciation and amortization 503,652 - 503,652
---------- ---------- ----------
1,617,214 2,541 1,614,673
---------- ---------- ----------
OPERATING INCOME 750,396 (1,041) 751,437
OTHER INCOME (EXPENSE)
Interest expense (226,751) (7,500)(2) (219,251)
Income from unconsolidated cellular
entity 6,160 - 6,160
Other income and expense 2,154 3,000(3) (846)
Income tax expense (187,252) 4,466(4) (191,718)
---------- ---------- ----------
NET INCOME 344,707 (1,075) 345,782
========== ========== ==========
BASIC EARNINGS PER SHARE 2.40 (0.01) 2.41
DILUTED EARNINGS PER SHARE 2.38 (0.01) 2.39
SHARES OUTSTANDING
Basic 143,583 143,583
Diluted 144,700 144,700
DIVIDENDS PER COMMON SHARE 0.22 0.22
(a) Results of operations for 2003 have been restated to conform to
the Company's 2004 presentation of a single reportable segment. In
connection with this restatement, the Company has, among other
things, (i) eliminated certain 2003 revenues arising out of
previously-reported intersegment transactions (which reduced
operating expenses by a like amount and therefore had no impact on
operating income), and (ii) reclassified depreciation expense
related to certain service subsidiaries of the Company to
depreciation expense from operating expenses. Previously with
multiple segment presentation, such costs were allocated to the
Company's regulated telephone operations as an operating expense.
NONRECURRING ITEMS
(1) - Includes operating taxes associated with various audits ($7.5
million), net of partial recovery of amounts previously written
off in connection with WorldCom bankruptcy ($5.0 million).
(2) - Includes interest cost ($7.5 million) associated with various
operating tax audits and revenue effect of operating taxes in
(1) above ($1.5 million).
(3) - Reversal of costs previously accrued to defend unsolicited
takeover proposal.
(4) - Net out of period income tax adjustments ($2.5 million credit),
net of tax effect of items (1) through (3).
MULTIMEDIA AVAILABLE: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=4628461
CONTACT: CenturyTel Inc.
, Monroe
Media: Patricia Cameron, 318-388-9674
patricia.cameron@centurytel.com
or
Investors: Tony Davis, 318-388-9525
tony.davis@centurytel.com
www.centurytel.com
SOURCE: CenturyTel, Inc.