MONROE, La.--(BUSINESS WIRE)--Oct. 28, 2004--CenturyTel, Inc.
(NYSE:CTL) announces operating results for third quarter 2004 that met
or exceeded First Call consensus estimates.
-- Operating revenues, excluding nonrecurring items, increased
1.2% to $607.4 million from $600.3 million. Reported under
GAAP, operating revenues increased 0.6% to $603.9 million from
$600.3 million.
-- Operating cash flow (as defined in the attached financial
schedules), excluding nonrecurring items, was $308.2 million.
-- Net income, excluding nonrecurring items, was $81.1 million
compared to $88.5 million in third quarter 2003. Net income,
reported under GAAP, was $86.2 million compared to $91.0
million in third quarter 2003.
-- Diluted earnings per share, excluding nonrecurring items, was
$.60 in third quarter 2004 and $.61 in third quarter 2003,
while GAAP diluted earnings per share was $.63 in both third
quarter 2004 and third quarter 2003.
-- Free cash flow (as defined in the attached financial
schedules), excluding nonrecurring items, was $110.6 million
in third quarter 2004.
-- Through the third quarter, the Company had repurchased nearly
10.9 million shares of common stock for a total investment of
$318.4 million.
Third Quarter Highlights(1)
(Excluding nonrecurring items)
(In thousands, except per share
amounts and customer units) Quarter Ended Quarter Ended
9/30/04 9/30/03 % Change
----------------------------------------------------------------------
Operating Revenues $ 607,392 $ 600,264 1.2 %
Operating Cash Flow $ 308,239 $ 315,510 (2.3)%
Net Income $ 81,135 $ 88,452 (8.3)%
Diluted Earnings Per Share $ .60 $ .61 (1.6)%
Average Diluted Shares
Outstanding 135,737 145,171 (6.5)%
Capital Expenditures $ 97,583 $ 102,201 (4.5)%
----------------------------------------------------------------------
Telephone Access Lines 2,336,517 2,394,623 (2.4)%
Long Distance Lines(2) 1,037,293 903,939 14.8 %
DSL Connections 120,869 76,328 58.4 %
----------------------------------------------------------------------
(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) In first quarter 2004, the Company began reporting long distance
units on a line basis instead of a customer basis. Third quarter
2003 has been restated on a line basis to ensure period-to-period
comparability. All periods have also been adjusted to reflect the
removal of 10,090 long distance lines due to zero-usage account
clean-up during the billing system conversion.
"CenturyTel
achieved revenue growth of 1.2% and generated strong
free cash flow of $110.6 million during the third quarter in a very
challenging environment," Glen F. Post, III, chairman and chief
executive officer, said. "Through the first nine months of 2004,
CenturyTel
generated nearly $379 million of free cash flow and
returned more than $342 million to shareholders through our cash
dividends and share repurchase program."
Operating revenues, excluding nonrecurring items, rose 1.2% to
$607.4 million in third quarter 2004 from $600.3 million in third
quarter 2003. Revenue increases resulted primarily from approximately
$20.0 million of revenues generated by the fiber assets acquired
during 2003, data revenue growth from DSL subscribers, continued long
distance subscriber growth and increased enhanced calling feature
penetration. These increases more than offset revenue declines of
$13.6 million attributable to anticipated lower intrastate toll
revenues, universal service funding, interstate access revenues
related to prior periods and the effect of access line losses.
Operating expenses, excluding nonrecurring items, increased 4.1%
to $426.2 million from $409.5 million in third quarter 2003 due
primarily to the fiber assets acquired during 2003 and increases in
operating taxes, customer service expenses and marketing expenses.
Operating cash flow, excluding nonrecurring items, decreased 2.3%
to $308.2 million from $315.5 million. CenturyTel
achieved an
operating cash flow margin of 50.7% during the quarter versus 52.6% in
third quarter 2003.
Net income, excluding nonrecurring items, was $81.1 million
compared to $88.5 million in third quarter 2003. Diluted earnings per
share, excluding nonrecurring items, was $.60 in third quarter 2004
and $.61 in third quarter 2003.
"Strong growth in long distance and data revenues as well as the
continued penetration of enhanced calling features reflect
CenturyTel's
continued success in delivering needed products and
services to our customers in rural areas and smaller cities across the
country," Post said.
For the first nine months of 2004, operating revenues, excluding
nonrecurring items, increased to $1.805 billion from $1.765 billion
for the same period in 2003, a 2.2% increase. Operating cash flow,
excluding nonrecurring items, was $939.5 million for 2004 compared to
$935.1 million a year ago. Operating income, excluding nonrecurring
items, decreased to $554.6 million from $559.0 million in 2003.
Under generally accepted accounting principles (GAAP), net income
for third quarter 2004 was $86.2 million compared to $91.0 million for
third quarter 2003. Diluted earnings per share for both third quarter
2004 and 2003 was $.63. For the first nine months of 2004 and 2003,
net income was $252.8 million and $262.3 million, respectively, while
diluted earnings per share was $1.81 and $1.82, respectively. Third
quarter 2004 results reflect an after-tax $6.0 million adjustment for
over depreciated assets and the related revenue effect, as well as
other nonrecurring items detailed in the accompanying financial
information that affected the third quarters and first nine months of
2004 and 2003.
Outlook. For the fourth quarter 2004, CenturyTel
expects total
revenues of $590 to $605 million and diluted earnings per share of
$.56 to $.60. For the full year 2004, diluted earnings per share is
expected to be in the range of $2.34 to $2.38. These outlook figures
are presented excluding the potential impact of any future mergers,
acquisitions, divestitures, share repurchases or other unusual events.
The Company expects to provide full year 2005 earnings per share
guidance in January 2005. The Company has, however, identified several
items that can be expected to affect 2005 results. Increased national
average loop costs are expected to negatively impact the Company's
2005 Universal Service Fund receipts and diluted earnings per share by
$.05 to $.07. Our anticipated roll-outs of satellite entertainment and
wireless services are expected to negatively impact 2005 diluted
earnings per share by approximately $.05 to $.09. The Company
currently anticipates, subject to market conditions and the
availability of other investment opportunities, to complete its
previously announced $400 million share repurchase program and to
undertake transactions to mitigate the dilutive effect of the $500
million in Equity Units that are currently scheduled to settle in May
2005. Giving effect to these items, we currently anticipate 2005
interest expense will be between $200 and $210 million. These and
other items that may affect 2005 results will be discussed in greater
detail during our January 2005 call.
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 in the Investor Relations 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 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 888.578.9505. The
call will be accessible for replay until 11:59 p.m. Central Time,
November 3, 2004, by calling 888.266.2081 and entering the conference
ID number 575262. 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 November 17,
2004.
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
and hiring adequate numbers of qualified staff; 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 October 28, 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 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 SEPTEMBER 30, 2004 AND 2003
(UNAUDITED)
Three months ended
September 30, 2004
--------------------------------
As
adjusted
Less excluding
non- non-
As recurring recurring
In thousands, except per share reported items items
amounts --------- ----------- ----------
OPERATING REVENUES
Local service $ 179,793 179,793
Network access 237,522 (3,091)(1) 240,613
Long distance 49,743 49,743
Data 69,570 (422)(1) 69,992
Fiber transport and CLEC 19,113 19,113
Other 48,138 48,138
--------- ----------
603,879 (3,513) 607,392
--------- ----------- ----------
OPERATING EXPENSES
Cost of services and products 191,000 191,000
Selling, general and administrative 108,153 108,153
Depreciation and amortization 113,857 (13,221)(1) 127,078
--------- ----------- ----------
413,010 (13,221) 426,231
--------- ----------- ----------
OPERATING INCOME 190,869 9,708 181,161
OTHER INCOME (EXPENSE)
Interest expense (52,174) (52,174)
Income from unconsolidated cellular
entity 1,929 1,929
Other income and expense (822) (1,500)(2) 678
Income tax expense (53,610) (3,151)(3) (50,459)
--------- ----------- ----------
NET INCOME $ 86,192 5,057 81,135
========= =========== ==========
BASIC EARNINGS PER SHARE $ 0.64 0.04 0.60
DILUTED EARNINGS PER SHARE $ 0.63 0.04 0.60
SHARES OUTSTANDING
Basic 134,885 134,885
Diluted 135,737 135,737
DIVIDENDS PER COMMON SHARE $ 0.0575 0.0575
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(4) (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
Increase
(decrease)
Increase excluding
(decrease) nonrecurring
In thousands, except per share amounts as reported items
------------ -------------
OPERATING REVENUES
Local service 0.4% 0.4%
Network access (6.0%) (4.8%)
Long distance 10.0% 10.0%
Data 12.2% 12.9%
Fiber transport and CLEC 41.3% 41.3%
Other 1.1% 1.1%
0.6% 1.2%
OPERATING EXPENSES
Cost of services and products 0.4% 0.4%
Selling, general and administrative 14.4% 14.4%
Depreciation and amortization (8.7%) 1.9%
0.9% 4.1%
OPERATING INCOME 0.0% (5.0%)
OTHER INCOME (EXPENSE)
Interest expense (4.0%) (4.0%)
Income from unconsolidated cellular
entity 11.1% 11.1%
Other income and expense (23.6%) (163.0%)
Income tax expense 16.3% 3.8%
NET INCOME (5.3%) (8.3%)
BASIC EARNINGS PER SHARE 1.6% (1.6%)
DILUTED EARNINGS PER SHARE 0.0% (1.6%)
SHARES OUTSTANDING
Basic (6.3%) (6.3%)
Diluted (6.5%) (6.5%)
DIVIDENDS PER COMMON SHARE 4.5% 4.5%
NONRECURRING ITEMS
(1) - Adjustment for overdepreciated assets, including related
revenue effect.
(2) - Impairment of nonoperating investment.
(3) - Tax effect of items (1) and (2).
(4) - Net out of period income tax adjustments.
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
(UNAUDITED)
Nine months ended
September 30, 2004
---------------------------------
As
adjusted
Less excluding
non- non-
As recurring recurring
In thousands, except per share reported items items
amounts ---------- ----------- ----------
OPERATING REVENUES
Local service $ 537,993 537,993
Network access 723,994 (3,091)(1) 727,085
Long distance 140,059 140,059
Data 203,367 (422)(1) 203,789
Fiber transport and CLEC 54,866 54,866
Other 140,859 140,859
---------- ----------- ----------
1,801,138 (3,513) 1,804,651
---------- ----------- ----------
OPERATING EXPENSES
Cost of services and products 562,775 562,775
Selling, general and administrative 302,426 302,426
Depreciation and amortization 371,600 (13,221)(1) 384,821
---------- ----------- ----------
1,236,801 (13,221) 1,250,022
---------- ----------- ----------
OPERATING INCOME 564,337 9,708 554,629
OTHER INCOME (EXPENSE)
Interest expense (157,806) (157,806)
Income from unconsolidated cellular
entity 6,114 6,114
Other income and expense (2,329) (1,500)(2) (829)
Income tax expense (157,561) (3,151)(3) (154,410)
---------- ----------- ----------
NET INCOME $ 252,755 5,057 247,698
========== =========== ==========
BASIC EARNINGS PER SHARE $ 1.82 0.04 1.79
DILUTED EARNINGS PER SHARE $ 1.81 0.04 1.78
SHARES OUTSTANDING
Basic 138,512 138,512
Diluted 139,324 139,324
DIVIDENDS PER COMMON SHARE $ 0.1725 0.1725
Nine 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 534,509 534,509
Network access 747,307 747,307
Long distance 130,968 130,968
Data 180,816 180,816
Fiber transport and CLEC 28,461 28,461
Other 142,946 142,946
---------- ---------- ----------
1,765,007 - 1,765,007
---------- ---------- ----------
OPERATING EXPENSES
Cost of services and products 552,013 552,013
Selling, general and administrative 272,900 (4,959)(4) 277,859
Depreciation and amortization 376,159 376,159
---------- ---------- ----------
1,201,072 (4,959) 1,206,031
---------- ---------- ----------
OPERATING INCOME 563,935 4,959 558,976
OTHER INCOME (EXPENSE)
Interest expense (165,909) (165,909)
Income from unconsolidated cellular
entity 4,895 4,895
Other income and expense (1,034) (1,034)
Income tax expense (139,622) 791(5) (140,413)
---------- ---------- ----------
NET INCOME 262,265 5,750 256,515
========== ========== ==========
BASIC EARNINGS PER SHARE 1.83 0.04 1.79
DILUTED EARNINGS PER SHARE 1.82 0.04 1.78
SHARES OUTSTANDING
Basic 143,370 143,370
Diluted 144,481 144,481
DIVIDENDS PER COMMON SHARE 0.165 0.165
Increase
(decrease)
Increase excluding
(decrease) nonrecurring
In thousands, except per share amounts as reported items
-------------------------
OPERATING REVENUES
Local service 0.7% 0.7%
Network access (3.1%) (2.7%)
Long distance 6.9% 6.9%
Data 12.5% 12.7%
Fiber transport and CLEC 92.8% 92.8%
Other (1.5%) (1.5%)
2.0% 2.2%
OPERATING EXPENSES
Cost of services and products 1.9% 1.9%
Selling, general and administrative 10.8% 8.8%
Depreciation and amortization (1.2%) 2.3%
3.0% 3.6%
OPERATING INCOME 0.1% (0.8%)
OTHER INCOME (EXPENSE)
Interest expense (4.9%) (4.9%)
Income from unconsolidated cellular entity 24.9% 24.9%
Other income and expense 125.2% (19.8%)
Income tax expense 12.8% 10.0%
NET INCOME (3.6%) (3.4%)
BASIC EARNINGS PER SHARE (0.5%) 0.0%
DILUTED EARNINGS PER SHARE (0.5%) 0.0%
SHARES OUTSTANDING
Basic (3.4%) (3.4%)
Diluted (3.6%) (3.6%)
DIVIDENDS PER COMMON SHARE 4.5% 4.5%
NONRECURRING ITEMS
(1) - Adjustment for overdepreciated assets, including related
revenue effect.
(2) - Impairment of nonoperating investment.
(3) - Tax effect of items (1) and (2).
(4) - Partial recovery of amounts previously written off in
connection with WorldCom bankruptcy.
(5) - Net out of period income tax adjustments ($2.5 million
credit), net of tax expense effect of item (4).
CenturyTel, Inc.
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2004 AND DECEMBER 31, 2003
(UNAUDITED)
September 30, December 31,
2004 2003
------------- -------------
(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 168,975 203,181
Other current assets 261,861 259,758
------------- -------------
Total current assets 430,836 462,939
------------- -------------
NET PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment 7,333,871 7,184,155
Accumulated depreciation (3,998,332) (3,728,674)
------------- -------------
Net property, plant and equipment 3,335,539 3,455,481
------------- -------------
INVESTMENTS AND OTHER ASSETS
Goodwill 3,430,302 3,425,001
Other 593,657 552,431
------------- -------------
Total investments and other assets 4,023,959 3,977,432
------------- -------------
TOTAL ASSETS $ 7,790,334 7,895,852
============= =============
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 121,156 72,453
Other current liabilities 418,930 398,930
------------- -------------
Total current liabilities 540,086 471,383
LONG-TERM DEBT 2,900,964 3,109,302
DEFERRED CREDITS AND OTHER LIABILITIES 941,539 836,651
STOCKHOLDERS' EQUITY 3,407,745 3,478,516
------------- -------------
TOTAL LIABILITIES AND EQUITY $ 7,790,334 7,895,852
============= =============
CenturyTel, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Three months ended
September 30, 2004
--------------------------------
As
adjusted
Less excluding
non- non-
In thousands As recurring recurring
reported items items
--------- ----------- ----------
Operating cash flow and cash flow
margin
Operating income $ 190,869 9,708(1) 181,161
Add: Depreciation and
amortization 113,857 (13,221)(1) 127,078
--------- ----------- ----------
Operating cash flow $ 304,726 (3,513) 308,239
========= =========== ==========
Revenues $ 603,879 (3,513)(1) 607,392
========= =========== ==========
Operating income margin (operating
income divided by revenues) 31.6% 29.8%
========= ==========
Operating cash flow margin
(operating cash flow divided by
revenues) 50.5% 50.7%
========= ==========
Free cash flow (prior to debt
service requirements and
dividends)
Net income $ 86,192 5,057(2) 81,135
Add: Depreciation and
amortization 113,857 (13,221)(1) 127,078
Less: Capital expenditures (97,583) - (97,583)
--------- ----------- ----------
Free cash flow $ 102,466 (8,164) 110,630
========= =========== ==========
Free cash flow $ 102,466
Income from unconsolidated
cellular entity (1,929)
Deferred income taxes 18,370
Changes in current assets and
current liabilities 13,622
Increase in other noncurrent
assets (8,565)
Decrease in other noncurrent
liabilities (1,152)
Retirement benefits 5,137
Other, net 6,904
Add: Capital expenditures 97,583
---------
Net cash provided by operating
activities $ 232,436
=========
Three months ended
September 30, 2003
-------------------------------
As
adjusted
Less excluding
non- non-
In thousands As recurring recurring
reported items items
--------- ---------- ----------
Operating cash flow and cash flow
margin
Operating income 190,781 - 190,781
Add: Depreciation and amortization 124,729 124,729
--------- ---------- ----------
Operating cash flow 315,510 - 315,510
========= ========== ==========
Revenues 600,264 - 600,264
========= ========== ==========
Operating income margin (operating
income divided by revenues) 31.8% 31.8%
========= ==========
Operating cash flow margin
(operating cash flow divided by
revenues) 52.6% 52.6%
========= ==========
Free cash flow (prior to debt service
requirements and dividends)
Net income 90,979 2,527(3) 88,452
Add: Depreciation and amortization 124,729 - 124,729
Less: Capital expenditures (102,201) - (102,201)
--------- ---------- ----------
Free cash flow 113,507 2,527 110,980
========= ========== ==========
Free cash flow 113,507
Income from unconsolidated cellular
entity (1,736)
Deferred income taxes 24,181
Changes in current assets and
current liabilities 12,604
Increase in other noncurrent assets (6,779)
Decrease in other noncurrent
liabilities (5,483)
Retirement benefits 13,721
Other, net (2,867)
Add: Capital expenditures 102,201
---------
Net cash provided by operating
activities 249,349
=========
NONRECURRING ITEMS
(1) - Adjustment for overdepreciated assets, including related
revenue effect (presented on a pre-tax basis).
(2) - Adjustment for overdepreciated assets, including related
revenue effect, and impairment of nonoperating investment
(presented on an after-tax basis).
(3) - Net out of period income tax adjustments.
CenturyTel, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Nine months ended
September 30, 2004
---------------------------------
As
adjusted
Less excluding
non- non-
In thousands As recurring recurring
reported items items
---------------------- ----------
Operating cash flow and cash flow
margin
Operating income $ 564,337 9,708(1) 554,629
Add: Depreciation and
amortization 371,600 (13,221)(1) 384,821
---------- ----------- ----------
Operating cash flow $ 935,937 (3,513) 939,450
========== =========== ==========
Revenues $1,801,138 (3,513)(1) 1,804,651
========== =========== ==========
Operating income margin (operating
income divided by revenues) 31.3% 30.7%
========== ==========
Operating cash flow margin
(operating cash flow divided by
revenues) 52.0% 52.1%
========== ==========
Free cash flow (prior to debt
service requirements and
dividends)
Net income $ 252,755 5,057(2) 247,698
Add: Depreciation and
amortization 371,600 (13,221)(1) 384,821
Less: Capital expenditures (253,597) - (253,597)
---------- ----------- ----------
Free cash flow $ 370,758 (8,164) 378,922
========== =========== ==========
Free cash flow $ 370,758
Income from unconsolidated
cellular entity (6,114)
Deferred income taxes 75,408
Changes in current assets and
current liabilities 45,892
Increase in other noncurrent
assets (26,474)
Decrease in other noncurrent
liabilities (4,696)
Retirement benefits 23,000
Other, net 4,423
Add: Capital expenditures 253,597
----------
Net cash provided by operating
activities $ 735,794
==========
Nine months ended
September 30, 2003
--------------------------------
As
adjusted
Less excluding
non- non-
In thousands As recurring recurring
reported items items
--------------------- ----------
Operating cash flow and cash flow
margin
Operating income 563,935 4,959(3) 558,976
Add: Depreciation and amortization 376,159 376,159
---------- ---------- ----------
Operating cash flow 940,094 4,959 935,135
========== ========== ==========
Revenues 1,765,007 - 1,765,007
========== ========== ==========
Operating income margin (operating
income divided by revenues) 32.0% 31.7%
========== ==========
Operating cash flow margin
(operating cash flow divided by
revenues) 53.3% 53.0%
========== ==========
Free cash flow (prior to debt
service requirements and dividends)
Net income 262,265 5,750(4) 256,515
Add: Depreciation and amortization 376,159 - 376,159
Less: Capital expenditures (256,459) - (256,459)
---------- ---------- ----------
Free cash flow 381,965 5,750 376,215
========== ========== ==========
Free cash flow 381,965
Income from unconsolidated cellular
entity (4,895)
Deferred income taxes 68,022
Changes in current assets and
current liabilities 128,431
Increase in other noncurrent assets (18,280)
Decrease in other noncurrent
liabilities (4,790)
Retirement benefits 25,597
Other, net (4,087)
Add: Capital expenditures 256,459
----------
Net cash provided by operating
activities 828,422
==========
NONRECURRING ITEMS
(1) - Adjustment for overdepreciated assets, including related
revenue effect (presented on a pre-tax basis).
(2) - Adjustment for overdepreciated assets, including related
revenue effect, and impairment of nonoperating investment
(presented on an after-tax basis).
(3) - Partial recovery of amounts previously written off in
connection with WorldCom bankruptcy (presented on a pre-tax
basis).
(4) - Partial recovery of amounts previously written off in
connection with WorldCom bankruptcy (presented on an
after-tax basis) and net out of period income tax adjustments
of $2.5 million.
MULTIMEDIA AVAILABLE:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=4753071
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
SOURCE: CenturyTel, Inc.