MONROE, La.--(BUSINESS WIRE)--Feb. 3, 2005--CenturyTel, Inc.
(NYSE: CTL) announces operating results for fourth quarter 2004 that
met or exceeded First Call consensus estimates.
-- Operating revenues, excluding nonrecurring items, increased to
$606.2 million from $601.1 million, while GAAP operating
revenues increased to $606.2 million from $602.6 million.
-- Operating cash flow (as defined in the attached financial
schedules) was $318.9 million.
-- Net income, excluding nonrecurring items, was $85.1 million
compared to $89.3 million in fourth quarter 2003. Net income,
reported under GAAP, was $84.5 million compared to $82.4
million in fourth quarter 2003.
-- Diluted earnings per share, excluding nonrecurring items, was
$.62 in fourth quarter 2004 and $.61 in fourth quarter 2003,
while GAAP diluted earnings per share was $.62 in fourth
quarter 2004 and $.56 in fourth quarter 2003.
-- Free cash flow (as defined in the attached financial
schedules), excluding nonrecurring items, was $82.7 million in
fourth quarter 2004.
-- CenturyTel
completed its previously announced $400 million
share repurchase program.
Fourth Quarter Highlights (1) Quarter Ended Quarter Ended
(Excluding nonrecurring items) 12/31/04 12/31/03
(In thousands, except per share
amounts and customer data) % Change
----------------------------------------------------------------------
Operating Revenues $ 606,234 $ 601,103 .9 %
Operating Cash Flow $ 318,920 $ 319,954 (.3)%
Net Income $ 85,105 $ 89,267 (4.7)%
Diluted Earnings Per Share (2) $ .62 $ .61 1.6 %
Average Diluted Shares
Outstanding (2) 138,368 149,433 (7.4)%
Capital Expenditures $ 131,719 $ 121,480 8.4 %
----------------------------------------------------------------------
Telephone Access Lines 2,313,626 2,376,118 (2.6)%
Long Distance Lines (3) 1,067,817 931,761 14.6 %
DSL Connections 142,575 83,465 70.8 %
----------------------------------------------------------------------
(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) Diluted earnings per share and average diluted shares
outstanding reflect the application of a change in
accounting related to the effect of contingent convertible
debt on the diluted earnings per share calculation. Prior
periods have been restated to reflect this change in
accounting.
(3) In first quarter 2004, the Company began reporting long
distance units on a line basis instead of a customer
basis. Fourth quarter 2003 has been restated on a line
basis to ensure period-to-period comparability.
"CenturyTel
achieved record broadband subscriber growth as we
added nearly 22,000 DSL connections in the fourth quarter," Glen F.
Post, III, chairman and chief executive officer, said. "Our focus on
bundled offerings and delivering quality broadband solutions that
provide our customers flexibility and choice resulted in full year DSL
subscriber growth of nearly 71% as we ended 2004 with more than
142,000 DSL connections."
Operating revenues, excluding nonrecurring items, rose to $606.2
million in fourth quarter 2004 from $601.1 million in fourth quarter
2003. Revenue increases resulted primarily from approximately $21
million of aggregate incremental revenues generated by the regional
fiber transport operations acquired during 2003, data revenue growth
primarily from DSL subscribers, continued long distance subscriber
growth and increased enhanced calling feature penetration. These
increases more than offset revenue declines of $17 million
attributable to lower intrastate toll revenues, universal service
funding, and the effect of access line losses.
Operating expenses, excluding nonrecurring items, increased 2.0%
to $416.6 million from $408.6 million in fourth quarter 2003, due
primarily to costs associated with the fiber assets acquired during
2003 and DSL subscriber growth.
Operating cash flow, excluding nonrecurring items, was $318.9
million. CenturyTel
achieved an operating cash flow margin, excluding
nonrecurring items, of 52.6% during the quarter versus 53.2% in fourth
quarter 2003.
Net income, excluding nonrecurring items, was $85.1 million
compared to $89.3 million in fourth quarter 2003. Diluted earnings per
share, excluding nonrecurring items, was $.62 in fourth quarter 2004,
a 1.6% increase over the $.61 in fourth quarter 2003.
"Data revenue growth of 12.8% for the fourth quarter and 12.7% for
full year 2004 reflects our customers' strong demand for broadband
solutions. Additionally, we continued to invest in our broadband
networks during the year to deliver advanced communications solutions.
At year end 2004, nearly 71% of our access lines were DSL-enabled.
Also, we upgraded our LightCore fiber optic network to offer IP
services to our wholesale and enterprise customers," Post said.
For the year 2004, operating revenues, excluding nonrecurring
items, increased to $2.411 billion from $2.366 billion in 2003, a 1.9%
increase. Operating cash flow, excluding nonrecurring items, was
$1.258 billion for 2004 compared to $1.255 billion a year ago. Net
income, excluding nonrecurring items, decreased 3.8% to $332.8 million
from $345.8 million in 2003, while diluted earnings per share
increased to $2.38 from $2.36 in 2003. Fourth quarter and full year
2004 diluted earnings per share reflect reductions of approximately
$.01 and $.035, respectively, due to the recently adopted accounting
change in the calculation of earnings per share for contingent
convertibles. Prior periods have been restated to reflect this
accounting change.
Under generally accepted accounting principles (GAAP), net income
for fourth quarter 2004 was $84.5 million compared to $82.4 million
for fourth quarter 2003. Diluted earnings per share for fourth quarter
2004 was $.62 compared to $.56 for fourth quarter 2003. Fourth quarter
2004 results reflect an after-tax $616,000 charge for the impairment
of a non-operating investment. Fourth quarter 2003 results were
negatively impacted by $6.8 million of aggregate after-tax adjustments
for operating taxes and interest associated with various operating tax
audits and the related revenue effect, as well as other nonrecurring
items detailed in the accompanying financial information.
For the year 2004, prepared in accordance with GAAP, the Company
reported net income of $337.2 million, or $2.41 per diluted share,
compared to net income of $344.7 million, or $2.35 per diluted share,
for the year 2003. The 2004 results included a favorable $4.4 million
net after-tax for an adjustment for over-depreciated assets and the
related revenue effect and for an adjustment for the impairment of a
non-operating investment. The 2003 results included adjustments for
operating taxes and interest costs associated with various operating
tax audits, as well as other nonrecurring items detailed in the
accompanying financial information.
Other Information. Earlier today the Company announced that its
Board had approved a $200 million share repurchase program and a
definitive agreement to purchase for $65 million in cash certain metro
fiber assets from KMC Telecom Holdings, Inc.
Guidance for 2005. As previously announced, CenturyTel
expects
2005 diluted earnings per share to be negatively impacted $.05 to $.07
due to lower universal service funding. We also expect our satellite
entertainment and wireless service initiatives to negatively impact
diluted earnings per share an additional $.04 to $.07. CenturyTel
believes the Company can continue to drive revenue growth primarily
from the further penetration of its bundled offerings and continued
expansion in its fiber business. Giving effect to these expectations,
the incremental amortization expense related to the new billing and
customer care system, the anticipation of continued access line
declines and the estimated $.03 impact from the change in accounting
for stock options, CenturyTel
expects 2005 diluted earnings per share
to be in the range of $2.20 to $2.35.
For first quarter 2005, CenturyTel
expects total revenues of $585
to $595 million and diluted earnings per share of $.53 to $.57. The
anticipated decline in revenues from fourth quarter 2004 is primarily
due to a network access revenue settlement during the fourth quarter
that increased revenue approximately $8 million.
These outlook figures assume the successful mitigation of the
dilutive effect of the $500 million in Equity Units currently
scheduled to settle in May 2005, and exclude nonrecurring items, any
costs associated with transactions related to the Equity Units, share
repurchases, future mergers, acquisitions, divestitures 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. Reconciliations 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 888.535.2555. The
call will be accessible for replay through February 9, 2005, by
calling 888.266.2081 and entering the conference ID number 624572.
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 February 23, 2005.
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 successfully take steps to mitigate the dilutive effect of the $500
million of Equity Units currently scheduled to settle in May 2005; 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 February 3, 2005. The Company undertakes no obligation to update
any of its forward-looking statements.
CenturyTel, Inc.
(NYSE: CTL) provides a full range of local, long
distance, Internet and broadband services to consumers in 22 states.
Included in the S&P 500 Index, CenturyTel
is a leading provider of
integrated communications services to rural areas and smaller cities
in the United States. Visit CenturyTel
at www.centurytel.com.
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED DECEMBER 31, 2004 AND 2003
(UNAUDITED)
Three months ended December 31, 2004
------------------------------------
As adjusted
Less excluding
non- non-
As recurring recurring
In thousands, except per reported items items
share amounts ----------- ---------- ----------
OPERATING REVENUES
Local service $ 178,035 178,035
Network access 242,017 242,017
Long distance 46,938 46,938
Data 72,410 72,410
Fiber transport and CLEC 19,543 19,543
Other 47,291 47,291
----------- ---------- ----------
606,234 - 606,234
----------- ---------- ----------
OPERATING EXPENSES
Cost of services and
products 192,638 192,638
Selling, general and
administrative 94,676 94,676
Depreciation and
amortization 129,304 129,304
----------- ---------- ----------
416,618 - 416,618
----------- ---------- ----------
OPERATING INCOME 189,616 - 189,616
OTHER INCOME (EXPENSE)
Interest expense (53,245) (53,245)
Income from unconsolidated
cellular entity 953 953
Other income (expense) (268) (1,000)(1) 732
Income tax expense (52,567) 384 (2) (52,951)
----------- ---------- ----------
NET INCOME $ 84,489 (616) 85,105
=========== ========== ==========
BASIC EARNINGS PER SHARE $ 0.63 0.00 0.64
DILUTED EARNINGS PER SHARE $ 0.62 0.00 0.62
SHARES OUTSTANDING
Basic 133,324 133,324
Diluted 138,368 138,368
DIVIDENDS PER COMMON SHARE $ 0.0575 0.0575
Three months ended December 31, 2003
------------------------------------
As adjusted
Less excluding
non- non-
As recurring recurring
In thousands, except per reported items items
share amounts ----------- ---------- ----------
OPERATING REVENUES
Local service $ 178,056 178,056
Network access 254,155 1,500 (3) 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 (3) 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)(3) (53,342)
Income from unconsolidated
cellular entity 1,265 1,265
Other income (expense) 3,188 3,000 (4) 188
Income tax expense (47,630) 3,675 (5) (51,305)
---------- ---------- ----------
NET INCOME $ 82,442 (6,825) 89,267
========== ========== ==========
BASIC EARNINGS PER SHARE $ 0.57 (0.05) 0.62
DILUTED EARNINGS PER SHARE $ 0.56 (0.05) 0.61
SHARES OUTSTANDING
Basic 144,204 144,204
Diluted 149,433 149,433
DIVIDENDS PER COMMON SHARE $ 0.055 0.055
Increase
Increase (decrease)
(decrease) excluding
In thousands, except per as nonrecurring
share amounts reported items
----------- -------------
OPERATING REVENUES
Local service (0.0%) (0.0%)
Network access (4.8%) (4.2%)
Long distance 9.4% 9.4%
Data 12.8% 12.8%
Fiber transport and CLEC 34.0% 34.0%
Other (2.9%) (2.9%)
0.6% 0.9%
OPERATING EXPENSES
Cost of services and
products 2.9% 2.9%
Selling, general and
administrative (6.7%) 0.8%
Depreciation and
amortization 1.4% 1.4%
0.1% 2.0%
OPERATING INCOME 1.7% (1.5%)
OTHER INCOME (EXPENSE)
Interest expense (12.5%) (0.2%)
Income from unconsolidated
cellular entity (24.7%) (24.7%)
Other income (expense) (108.4%) 289.4%
Income tax expense 10.4% 3.2%
NET INCOME 2.5% (4.7%)
BASIC EARNINGS PER SHARE 10.5% 3.2%
DILUTED EARNINGS PER SHARE 10.7% 1.6%
SHARES OUTSTANDING
Basic (7.5%) (7.5%)
Diluted (7.4%) (7.4%)
DIVIDENDS PER COMMON SHARE 4.5% 4.5%
NONRECURRING ITEMS
(1) - Impairment of nonoperating investment.
(2) - Tax effect of item (1).
(3) - Operating taxes, including related revenue effect, and
interest associated with various operating tax audits.
(4) - Reversal of costs previously accrued to defend unsolicited
takeover proposal.
(5) - Tax effect of items (3) and (4).
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
TWELVE MONTHS ENDED DECEMBER 31, 2004 AND 2003
(UNAUDITED)
Twelve months ended December 31, 2004
---------------------------------------
As
adjusted
Less excluding
non- non-
As recurring recurring
In thousands, except per share reported items items
amounts ---------- ---------- ----------
OPERATING REVENUES
Local service $ 716,028 716,028
Network access 966,011 (3,091)(1) 969,102
Long distance 186,997 186,997
Data 275,777 (422)(1) 276,199
Fiber transport and CLEC 74,409 74,409
Other 188,150 188,150
---------- ---------- ----------
2,407,372 (3,513) 2,410,885
---------- ---------- ----------
OPERATING EXPENSES
Cost of services and products 755,413 755,413
Selling, general and
administrative 397,102 397,102
Depreciation and amortization 500,904 (13,221)(1) 514,125
---------- ---------- ----------
1,653,419 (13,221) 1,666,640
---------- ---------- ----------
OPERATING INCOME 753,953 9,708 744,245
OTHER INCOME (EXPENSE)
Interest expense (211,051) (211,051)
Income from unconsolidated
cellular entity 7,067 7,067
Other income (expense) (2,597) (2,500)(2) (97)
Income tax expense (210,128) (2,767)(3) (207,361)
---------- ---------- ----------
NET INCOME $ 337,244 4,441 332,803
========== ========== ==========
BASIC EARNINGS PER SHARE $ 2.45 0.03 2.42
DILUTED EARNINGS PER SHARE $ 2.41 0.03 2.38
SHARES OUTSTANDING
Basic 137,215 137,215
Diluted 142,144 142,144
DIVIDENDS PER COMMON SHARE $ 0.2300 0.2300
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 (4) 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 (4) 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)(4) (219,251)
Income from unconsolidated
cellular entity 6,160 6,160
Other income (expense) 2,154 3,000 (5) (846)
Income tax expense (187,252) 4,466 (6) (191,718)
---------- ---------- ----------
NET INCOME $ 344,707 (1,075) 345,782
========== ========== ==========
BASIC EARNINGS PER SHARE $ 2.40 (0.01) 2.41
DILUTED EARNINGS PER
SHARE $ 2.35 (0.01) 2.36
SHARES OUTSTANDING
Basic 143,583 143,583
Diluted 148,779 148,779
DIVIDENDS PER COMMON
SHARE $ 0.220 0.220
Increase
Increase (decrease)
(decrease) excluding
In thousands, except per as nonrecurring
share amounts reported items
---------- ------------
OPERATING REVENUES
Local service 0.5% 0.5%
Network access (3.5%) (3.1%)
Long distance 7.5% 7.5%
Data 12.6% 12.7%
Fiber transport and CLEC 72.9% 72.9%
Other (1.8%) (1.8%)
1.7% 1.9%
OPERATING EXPENSES
Cost of services and products 2.2% 2.2%
Selling, general and administrative 6.1% 6.8%
Depreciation and amortization (0.5%) 2.1%
2.2% 3.2%
OPERATING INCOME 0.5% (1.0%)
OTHER INCOME (EXPENSE)
Interest expense (6.9%) (3.7%)
Income from unconsolidated cellular entity 14.7% 14.7%
Other income (expense) (220.6%) (88.5%)
Income tax expense 12.2% 8.2%
NET INCOME (2.2%) (3.8%)
BASIC EARNINGS PER SHARE 2.1% 0.4%
DILUTED EARNINGS PER SHARE 2.6% 0.8%
SHARES OUTSTANDING
Basic (4.4%) (4.4%)
Diluted (4.5%) (4.5%)
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) - Includes (i) operating taxes ($7.5 million), net of related
revenue effect ($1.5 million), and interest cost
($7.5 million) associated with various operating tax
audits and (ii) partial recovery of amounts previously
written off in connection with WorldCom bankruptcy ($4.9
million).
(5) - Reversal of costs previously accrued to defend unsolicited
takeover proposal.
(6) - Net out of period income tax adjustments ($2.5 million
credit), net of tax effect of items (4) and (5).
CenturyTel, Inc.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2004 AND DECEMBER 31, 2003
(UNAUDITED)
December December
31, 31,
2004 2003
----------- -----------
(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 167,215 203,181
Other current assets 252,632 259,758
----------- -----------
Total current assets 419,847 462,939
----------- -----------
NET PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment 7,431,017 7,184,155
Accumulated depreciation (4,089,616) (3,728,674)
----------- -----------
Net property, plant and equipment 3,341,401 3,455,481
----------- -----------
INVESTMENTS AND OTHER ASSETS
Goodwill 3,433,864 3,425,001
Other 601,841 552,431
----------- -----------
Total investments and other assets 4,035,705 3,977,432
----------- -----------
TOTAL ASSETS $ 7,796,953 7,895,852
=========== ===========
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 249,617 72,453
Other current liabilities 442,001 398,930
----------- ----------
Total current liabilities 691,618 471,383
LONG-TERM DEBT 2,762,019 3,109,302
DEFERRED CREDITS AND OTHER LIABILITIES 933,551 836,651
STOCKHOLDERS' EQUITY 3,409,765 3,478,516
----------- ----------
TOTAL LIABILITIES AND EQUITY $ 7,796,953 7,895,852
=======================
CenturyTel, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Three months ended December 31, 2004
------------------------------------
As
adjusted
Less excluding
non- non-
In thousands As recurring recurring
reported items items
------------------- ----------
Operating cash flow and cash flow
margin
Operating income $ 189,616 - 189,616
Add: Depreciation and amortization 129,304 - 129,304
-------- ----------- ---------
Operating cash flow $ 318,920 - 318,920
======== =========== =========
Revenues $ 606,234 - 606,234
======== =========== =========
Operating income margin
(operating income divided
by revenues) 31.3% 31.3%
========= ==========
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 $ 84,489 (616)(1) 85,105
Add: Depreciation and amortization 129,304 - 129,304
Less: Capital expenditures (131,719) - (131,719)
-------- ----------- ---------
Free cash flow $ 82,074 (616) 82,690
======== =========== =========
Free cash flow $ 82,074
Income from unconsolidated cellular
entity (953)
Deferred income taxes (1,034)
Changes in current assets and
current liabilities 12,430
Increase in other noncurrent assets (5,240)
Decrease in other noncurrent
liabilities (1,524)
Retirement benefits 3,954
Other, net (1,389)
Add: Capital expenditures 131,719
---------
Net cash provided by operating
activities $ 220,037
=========
Three months ended December 31, 2003
------------------------------------
As adjusted
In thousands Less excluding
non- non-
As recurring recurring
reported items items
----------------------------------
Operating cash flow and cash flow
margin
Operating income $ 186,461 (6,000)(2) 192,461
Add: Depreciation and
amortization 127,493 127,493
--------- ---------- ----------
Operating cash flow $ 313,954 (6,000) 319,954
========= ========== ==========
Revenues $ 602,603 1,500 (2) 601,103
========= ========== ==========
Operating income margin
(operating income divided
by revenues) 30.9% 32.0%
========= ==========
Operating cash flow margin
(operating cash flow divided
by revenues) 52.1% 53.2%
========= ==========
Free cash flow (prior to debt
service requirements and dividends)
Net income $ 82,442 (6,825)(3) 89,267
Add: Depreciation and
amortization 127,493 - 127,493
Less: Capital expenditures (121,480) - (121,480)
--------- ----------- ---------
Free cash flow $ 88,455 (6,825) 95,280
======== =========== =========
Free cash flow $ 88,455
Income from unconsolidated cellular
entity (1,265)
Deferred income taxes 60,684
Changes in current assets and
current liabilities 32,553
Increase in other noncurrent assets (5,248)
Decrease in other noncurrent
liabilities (1,361)
Retirement benefits (40,336)
Other, net (15,420)
Add: Capital expenditures 121,480
----------
Net cash provided by operating
activities $ 239,542
==========
NONRECURRING ITEMS
(1) - Impairment of nonoperating investment (presented on an
after-tax basis).
(2) - Operating taxes ($7.5 million), net of revenue effect
($1.5 million), associated with various operating tax
audits.
(3) - Includes (i) interest cost ($4.9 million after-tax) related
to operating tax audits; (ii) benefit from reversal of
costs previously accrued to defend unsolicited takeover
proposal ($2.0 million after-tax); and (iii) after tax
effect of item (2).
CenturyTel, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Twelve months ended December 31, 2004
-------------------------------------
As
adjusted
Less excluding
non- non-
In thousands As recurring recurring
reported items items
--------------------- ----------
Operating cash flow and cash flow
margin
Operating income $ 753,953 9,708 (1) 744,245
Add: Depreciation and
amortization 500,904 (13,221)(1) 514,125
---------- ---------- ----------
Operating cash flow $1,254,857 (3,513) 1,258,370
========== ========== ==========
Revenues $2,407,372 (3,513)(1)2,410,885
========== ========== ==========
Operating income margin
(operating income divided by
revenues) 31.3% 30.9%
========== ==========
Operating cash flow margin
(operating cash flow divided by
revenues) 52.1% 52.2%
========== ==========
Free cash flow (prior to debt
service requirements and
dividends)
Net income $ 337,244 4,441 (2) 332,803
Add: Depreciation and
amortization 500,904 (13,221)(1) 514,125
Less: Capital expenditures (385,316) - (385,316)
---------- ---------- ----------
Free cash flow $ 452,832 (8,780) 461,612
========== ========== ==========
Free cash flow $ 452,832
Income from unconsolidated
cellular entity (7,067)
Deferred income taxes 74,374
Changes in current assets and
current liabilities 58,322
Increase in other noncurrent
assets (31,714)
Decrease in other noncurrent
liabilities (6,220)
Retirement benefits 26,954
Other, net 3,034
Add: Capital expenditures 385,316
----------
Net cash provided by operating
activities $ 955,831
==========
Twelve months ended December 31, 2003
-------------------------------------
As
adjusted
Less excluding
non- non-
In thousands As recurring recurring
reported items items
--------------------- ----------
Operating cash flow and cash flow
margin
Operating income 750,396 (1,041)(3) 751,437
Add: Depreciation and
amortization 503,652 503,652
---------- ---------- ----------
Operating cash flow 1,254,048 (1,041) 1,255,089
========== ========== ==========
Revenues 2,367,610 1,500 (3)2,366,110
========== ========== ==========
Operating income margin (operating
income divided by revenues) 31.7% 31.8%
========== ==========
Operating cash flow margin (operating
cash flow divided by revenues) 53.0% 53.0%
========== ==========
Free cash flow (prior to debt
service requirements and
dividends)
Net income 344,707 (1,075)(4) 345,782
Add: Depreciation and
amortization 503,652 - 503,652
Less: Capital expenditures (377,939) - (377,939)
---------- ---------- ----------
Free cash flow 470,420 (1,075) 471,495
========== ========== ==========
Free cash flow 470,420
Income from unconsolidated
cellular entity (6,160)
Deferred income taxes 128,706
Changes in current assets and
current liabilities 160,984
Increase in other noncurrent
assets (23,528)
Decrease in other noncurrent
liabilities (6,151)
Retirement benefits (14,739)
Other, net (19,507)
Add: Capital expenditures 377,939
----------
Net cash provided by operating
activities 1,067,964
==========
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) - Operating taxes ($7.5 million), net of related revenue
effect ($1.5 million), associated with various operating
tax audits, net of partial recovery of amounts previously
written off in connection with WorldCom bankruptcy
($4.9 million).
(4) - Includes (i) interest cost ($4.9 million after-tax) related
to operating tax audits; (ii) benefit from reversal of
costs previously accrued to defend unsolicited takeover
proposal ($2.0 million after-tax); (iii) net out of period
income tax adjustments ($2.5 million credit); and (iv)
after-tax effect of item (3).
MULTIMEDIA AVAILABLE:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=4814409
CONTACT: CenturyTel, Inc.
Media:
Patricia Cameron, 318-388-9674
patricia.cameron@centurytel.com
or
Investors:
Tony Davis, 318-388-9525
tony.davis@centurytel.com
SOURCE: CenturyTel, Inc.