MONROE, La.--(BUSINESS WIRE)--Feb. 2, 2006--CenturyTel, Inc.
(NYSE: CTL) announces operating results for fourth quarter 2005 that
exceeded First Call consensus estimates.
-- Operating revenues increased to $620.5 million from $606.2
million in fourth quarter 2004.
-- Operating cash flow (as defined in the attached financial
schedules) was $308.2 million.
-- Net income, excluding nonrecurring items, was $82.2 million
compared to $85.1 million in fourth quarter 2004. Net income,
reported under GAAP, was $78.3 million compared to $84.5
million in fourth quarter 2004.
-- Diluted earnings per share, excluding nonrecurring items, was
$.61 in fourth quarter 2005 compared to $.62 in fourth quarter
2004, while GAAP diluted earnings per share was $.59 in fourth
quarter 2005 and $.62 in fourth quarter 2004.
-- Free cash flow (as defined in the attached financial
schedules), excluding nonrecurring items, was $85.0 million in
fourth quarter 2005.
Fourth Quarter Highlights
(Excluding nonrecurring items)
(In thousands, except per share Quarter Ended Quarter Ended
amounts and customer data) 12/31/05 12/31/04 % Change
----------------------------------------------------------------------
Operating Revenues $ 620,472 $ 606,234 2.3%
Operating Cash Flow (1) $ 308,197 $ 318,920 (3.4)%
Net Income $ 82,184 $ 85,105 (3.4)%
Diluted Earnings Per Share $ .61 $ .62 (1.6)%
Average Diluted Shares Outstanding 135,917 138,368 (1.8)%
Capital Expenditures $ 132,914 $ 131,719 0.9%
----------------------------------------------------------------------
Telephone Access Lines 2,214,149 2,313,626 (4.3)%
DSL Customers 248,706 142,575 74.4%
(1) Operating Cash Flow is a non-GAAP financial measure. A
reconciliation of this item to comparable GAAP measures is included in
the attached financial schedules.
"CenturyTel
achieved strong cash flows during 2005, generating
more than $463 million of free cash flow for the year," Glen F. Post,
III, chairman and chief executive officer, said. "Our continued focus
on owning the broadband connection to our customers drove the addition
of nearly 29,000 high-speed Internet subscribers during the fourth
quarter and more than 106,000 for the full year 2005, an increase of
nearly 75% since year end 2004."
Operating revenues rose to $620.5 million in fourth quarter 2005
from $606.2 million in fourth quarter 2004. Revenue increases resulted
primarily from $13.9 million of revenues generated by the metro fiber
assets acquired June 30, 2005 and $15.3 million of aggregate revenues
related to increased DSL subscribers, continued growth in our fiber
transport business and increased enhanced calling feature penetration.
These increases more than offset anticipated revenue declines of $14.3
million attributable to lower access revenues, reduced universal
service funding, and access line losses.
Operating expenses increased 7.5% to $448.1 million from $416.6
million in fourth quarter 2004, due primarily to costs associated with
the metro fiber assets acquired June 30, 2005, DSL subscriber growth
and expenses associated with our new video and wireless reseller
initiatives.
"During 2005, we continued to position CenturyTel
for the future
by expanding and strengthening our broadband capabilities, acquiring
strategic metro fiber assets, launching satellite television service
to most of our markets and introducing wireless and switched digital
television services in select markets," Post said.
Operating cash flow for fourth quarter 2005 was $308.2 million.
CenturyTel
achieved an operating cash flow margin of 49.7% during the
quarter versus 52.6% in fourth quarter 2004. This margin decline was
expected due to the growth in lower margin revenues versus the
anticipated decline in higher margin revenues discussed above.
Net income, excluding nonrecurring items, was $82.2 million
compared to $85.1 million in fourth quarter 2004. Diluted earnings per
share, excluding nonrecurring items, was $.61 in fourth quarter 2005
and $.62 in fourth quarter 2004.
For the year 2005, operating revenues, excluding nonrecurring
items, increased to $2.479 billion from $2.411 billion in 2004, a 2.8%
increase. Operating cash flow, excluding nonrecurring items, was
$1.274 billion for 2005 compared to $1.258 billion a year ago. Net
income, excluding nonrecurring items, increased 4.0% to $346.3 million
from $332.8 million in 2004, while diluted earnings per share
increased to $2.58 from $2.38 in 2004.
Under generally accepted accounting principles (GAAP), net income
for fourth quarter 2005 was $78.3 million compared to $84.5 million
for fourth quarter 2004. Diluted earnings per share for fourth quarter
2005 was $.59 compared to $.62 for fourth quarter 2004. Fourth quarter
2005 and fourth quarter 2004 results reflect after-tax charges of $3.9
million and $.6 million, respectively, related to the impairment of
certain non-operating investments.
For the year 2005, prepared in accordance with GAAP, the Company
reported net income of $334.5 million, or $2.49 per diluted share,
compared to net income of $337.2 million, or $2.41 per diluted share,
for the year 2004. See the accompanying financial schedules for detail
of the Company's nonrecurring items for the years 2005 and 2004.
Outlook for 2006. As previously announced, CenturyTel
expects 2006
diluted earnings per share to be negatively impacted by $.14 to $.18
due to settlement revenues recognized in 2005 that are not expected to
occur in 2006 and positively impacted by $.03 to $.05 from lower 2006
interest expense. We also anticipate our satellite entertainment,
wireless and digital television service initiatives will negatively
impact 2006 diluted earnings per share an additional $.03 to $.05.
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
items, the anticipation of access line declines of 4.5% to 5.5% in
2006, the $.04 to $.06 negative impact of expected lower universal
service funding and the estimated $.02 to $.03 negative impact from
the change in accounting for stock options, CenturyTel
expects 2006
diluted earnings per share to be in the range of $2.20 to $2.35.
CenturyTel
expects first quarter 2006 total revenues of $605 to
$615 million and diluted earnings per share of $.52 to $.56. The
anticipated decline in revenues from fourth quarter 2005 is primarily
due to access line declines and anticipated lower universal service
funding.
The Company expects a reduction in its capital expenditures in
2006 to approximately $325 million, a $90 million decrease from 2005.
Subject to incremental investments related to new initiatives that
drive growth or efficiencies, CenturyTel
expects to maintain capital
expenditures at a similar level beyond 2006. CenturyTel
also
anticipates receiving approximately $120 million in cash on a pre-tax
basis in the first half of 2006 from the redemption of its Rural
Telephone Bank stock.
These 2006 outlook figures exclude nonrecurring items, future
share repurchase initiatives, 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 866.261.7147. The
call will be accessible for replay through February 8, 2006, by
calling 888.266.2081 and entering the conference ID number 836323.
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, 2006.
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; the Company's ability to successfully negotiate collective
bargaining agreements on reasonable terms without work stoppages; the
effect of adverse weather; 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 tax 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, 2004. You should be aware that new factors may
emerge from time to time and it is not possible for management to
identify all such factors, nor can it predict the impact of each such
factor on the business or the extent to which any one or more factors
may cause actual results to differ from those reflected in any
forward-looking statements. You are further 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 2, 2006. The Company undertakes no
obligation to update any of its forward-looking statements for any
reason.
CenturyTel
(NYSE: CTL) delivers advanced communications with a
personal touch. The Company, included in the S&P 500 Index, is a
leading provider of consumer and business communications solutions in
rural areas and small to mid-size cities in 26 states. Visit
CenturyTel
at www.centurytel.com.
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED DECEMBER 31, 2005 AND 2004
(UNAUDITED)
Three months ended December 31,
2005
----------------------------------
As
adjusted
Less excluding
non- non-
As recurring recurring
In thousands, except per share reported items items
amounts
--------- ---------- -----------
OPERATING
REVENUES
Local service $ 172,081 172,081
Network
access 232,570 232,570
Long distance 48,126 48,126
Data 80,904 80,904
Fiber
transport
and CLEC 37,214 37,214
Other 49,577 49,577
--------- ---------- -----------
620,472 - 620,472
--------- ---------- -----------
OPERATING
EXPENSES
Cost of
services and
products 212,339 212,339
Selling, general and
administrative 99,936 99,936
Depreciation
and
amortization 135,778 135,778
--------- ---------- -----------
448,053 - 448,053
--------- ---------- -----------
OPERATING
INCOME 172,419 - 172,419
OTHER INCOME
(EXPENSE)
Interest
expense (49,625) (49,625)
Income from unconsolidated
cellular entity 1,603 1,603
Other income
(expense) (283) (6,250)(1) 5,967
Income tax
expense (45,780) 2,400 (2) (48,180)
--------- ---------- -----------
NET INCOME $ 78,334 (3,850) 82,184
========= ========== ===========
BASIC EARNINGS
PER SHARE $ 0.60 (0.03) 0.63
DILUTED
EARNINGS PER
SHARE $ 0.59 (0.03) 0.61
AVERAGE SHARES OUTSTANDING
Basic 130,730 130,730
Diluted 135,917 135,917
DIVIDENDS PER
COMMON SHARE $ 0.06 0.06
Three months ended December 31,
2004
--------------------------------
As Increase
Less non- adjusted (decrease)
recurring excluding Increase excluding
As items non- (decrease) non-
In thousands, reported recurring as recurring
except per items reported items
share amounts
------------------- --------------------------------
OPERATING
REVENUES
Local service $ 178,035 178,035 (3.3%) (3.3%)
Network
access 242,017 242,017 (3.9%) (3.9%)
Long distance 46,938 46,938 2.5% 2.5%
Data 72,410 72,410 11.7% 11.7%
Fiber
transport
and CLEC 19,543 19,543 90.4% 90.4%
Other 47,291 47,291 4.8% 4.8%
------------------- ----------
606,234 - 606,234 2.3% 2.3%
------------------- ----------
OPERATING
EXPENSES
Cost of
services and
products 192,638 192,638 10.2% 10.2%
Selling,
general and
administrative 94,676 94,676 5.6% 5.6%
Depreciation
and
amortization 129,304 129,304 5.0% 5.0%
------------------- ----------
416,618 - 416,618 7.5% 7.5%
------------------- ----------
OPERATING
INCOME 189,616 - 189,616 (9.1%) (9.1%)
OTHER INCOME
(EXPENSE)
Interest
expense (53,245) (53,245) (6.8%) (6.8%)
Income from
unconsolidated
cellular
entity 953 953 68.2% 68.2%
Other income
(expense) (268) (1,000)(3) 732 5.6% 715.2%
Income tax
expense (52,567) 384 (4) (52,951) (12.9%) (9.0%)
------------------- ----------
NET INCOME $ 84,489 (616) 85,105 (7.3%) (3.4%)
=================== ==========
BASIC EARNINGS
PER SHARE $ 0.63 - 0.64 (4.8%) (1.6%)
DILUTED
EARNINGS PER
SHARE $ 0.62 - 0.62 (4.8%) (1.6%)
AVERAGE SHARES
OUTSTANDING
Basic 133,324 133,324 (1.9%) (1.9%)
Diluted 138,368 138,368 (1.8%) (1.8%)
DIVIDENDS PER
COMMON SHARE $ 0.0575 0.0575 4.3% 4.3%
NONRECURRING
ITEMS
(1) - Impairment of nonoperating investment.
(2) - Tax effect of item (1).
(3) - Impairment of separate nonoperating investment.
(4) - Tax effect of item (3).
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
TWELVE MONTHS ENDED DECEMBER 31, 2005 AND 2004
(UNAUDITED)
Twelve months ended December 31,
2005
-----------------------------------
As
adjusted
Less excluding
non- non-
As recurring recurring
In thousands, except per share reported items items
amounts
---------- ---------- ----------
OPERATING REVENUES
Local service $ 702,400 702,400
Network access 959,838 959,838
Long distance 189,872 189,872
Data 318,770 318,770
Fiber transport and CLEC 115,454 115,454
Other 192,918 192,918
---------- ---------- ----------
2,479,252 - 2,479,252
---------- ---------- ----------
OPERATING EXPENSES
Cost of services and products 821,929 5,853 (1) 816,076
Selling, general and
administrative 388,989 388,989
Depreciation and amortization 531,931 531,931
---------- ---------- ----------
1,742,849 5,853 1,736,996
---------- ---------- ----------
OPERATING INCOME 736,403 (5,853) 742,256
OTHER INCOME (EXPENSE)
Interest expense (201,801) (1,196)(2) (200,605)
Income from unconsolidated
cellular entity 4,910 4,910
Other income (expense) (1,742) (14,253)(3) 12,511
Income tax expense (203,291) 9,511 (4) (212,802)
---------- ---------- ----------
NET INCOME $ 334,479 (11,791) 346,270
========== ========== ==========
BASIC EARNINGS PER SHARE $ 2.55 (0.09) 2.64
DILUTED EARNINGS PER SHARE $ 2.49 (0.09) 2.58
AVERAGE SHARES OUTSTANDING
Basic 130,841 130,841
Diluted 136,087 136,087
DIVIDENDS PER COMMON SHARE $ 0.24 0.24
Twelve months ended December 31,
2004
---------------------------------
As Increase
Less non- adjusted (decrease)
recurring excluding Increase excluding
As items non- (decrease) non-
reported recurring as recurring
In thousands, items reported items
except per
share amounts ------------------- --------------------------------
OPERATING
REVENUES
Local service $ 716,028 716,028 (1.9%) (1.9%)
Network access 966,011 (3,091)(5) 969,102 (0.6%) (1.0%)
Long distance 186,997 186,997 1.5% 1.5%
Data 275,777 (422)(5) 276,199 15.6% 15.4%
Fiber
transport and
CLEC 74,409 74,409 55.2% 55.2%
Other 188,150 188,150 2.5% 2.5%
-------------------- ----------
2,407,372 (3,513) 2,410,885 3.0% 2.8%
-------------------- ----------
OPERATING
EXPENSES
Cost of
services and
products 755,413 755,413 8.8% 8.0%
Selling,
general and
administrative 397,102 397,102 (2.0%) (2.0%)
Depreciation
and
amortization 500,904 (13,221)(5) 514,125 6.2% 3.5%
------------------- ----------
1,653,419 (13,221) 1,666,640 5.4% 4.2%
-------------------- ----------
OPERATING
INCOME 753,953 9,708 744,245 (2.3%) (0.3%)
OTHER INCOME
(EXPENSE)
Interest
expense (211,051) (211,051) (4.4%) (4.9%)
Income from
unconsolidated
cellular
entity 7,067 7,067 (30.5%) (30.5%)
Other income
(expense) (2,597) (2,500)(6) (97) (32.9%)(12,997.9%)
Income tax
expense (210,128) (2,767)(7) (207,361) (3.3%) 2.6%
-------------------- ----------
NET INCOME $ 337,244 4,441 332,803 (0.8%) 4.0%
==================== ==========
BASIC EARNINGS
PER SHARE $ 2.45 0.03 2.42 4.1% 9.1%
DILUTED
EARNINGS PER
SHARE $ 2.41 0.03 2.38 3.3% 8.4%
AVERAGE SHARES
OUTSTANDING
Basic 137,215 137,215 (4.6%) (4.6%)
Diluted 142,144 142,144 (4.3%) (4.3%)
DIVIDENDS PER
COMMON SHARE $ 0.23 0.23 4.3% 4.3%
NONRECURRING
ITEMS
(1) - Expenses associated with Hurricanes Katrina and Rita.
(2) - Write-off of unamortized deferred debt costs associated with
purchasing and retiring approximately $400 million of Series J
notes.
(3) - Includes (i) a $16.2 million impairment of nonoperating
investment and a $4.8 million debt extinguishment charge related to
purchasing and retiring approximately $400 million of Series J
notes, net of (ii) a $3.5 million gain on sale of nonoperating
investment and $3.2 million of interest income related to the
settlement of various income tax audits.
(4) - Includes (i) $1.3 million tax benefit related to the
settlement of various income tax audits and (ii) $8.2 million net
tax benefit of items (1), (2) and (3).
(5) - Adjustment for overdepreciated assets, including related
revenue effect.
(6) - Impairment of separate nonoperating investment.
(7) - Tax effect of items (5) and (6).
CenturyTel, Inc.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2005 AND DECEMBER 31, 2004
(UNAUDITED)
December 31, December 31,
2005 2004
-------------- --------------
(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 158,846 167,215
Other current assets 264,170 252,632
-------------- --------------
Total current assets 423,016 419,847
-------------- --------------
NET PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment 7,801,377 7,431,017
Accumulated depreciation (4,496,891) (4,089,616)
-------------- --------------
Net property, plant and equipment 3,304,486 3,341,401
-------------- --------------
GOODWILL AND OTHER ASSETS
Goodwill 3,432,649 3,433,864
Other 602,556 601,841
-------------- --------------
Total goodwill and other assets 4,035,205 4,035,705
-------------- --------------
TOTAL ASSETS $ 7,762,707 7,796,953
============== ==============
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 276,736 249,617
Other current liabilities 469,494 442,001
-------------- --------------
Total current liabilities 746,230 691,618
LONG-TERM DEBT 2,376,070 2,762,019
DEFERRED CREDITS AND OTHER LIABILITIES 1,023,134 933,551
STOCKHOLDERS' EQUITY 3,617,273 3,409,765
-------------- --------------
TOTAL LIABILITIES AND EQUITY $ 7,762,707 7,796,953
============== ==============
CenturyTel, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Three months ended December 31,
2005
-----------------------------------
As
adjusted
Less excluding
non- non-
In thousands As recurring recurring
reported items items
-------------------- -----------
Operating cash flow and cash flow
margin
Operating income $ 172,419 - 172,419
Add: Depreciation and
amortization 135,778 - 135,778
--------- ---------- -----------
Operating cash flow $ 308,197 - 308,197
========= ========== ===========
Revenues $ 620,472 - 620,472
========= ========== ===========
Operating income margin (operating
income divided by revenues) 27.8% 27.8%
========= ===========
Operating cash flow margin
(operating cash flow divided by
revenues) 49.7% 49.7%
========= ===========
Free cash flow (prior to debt
service requirements and
dividends)
Net income $ 78,334 (3,850)(1) 82,184
Add: Depreciation and
amortization 135,778 - 135,778
Less: Capital expenditures (132,914) - (132,914)
--------- ---------- -----------
Free cash flow $ 81,198 (3,850) 85,048
========= ========== ===========
Free cash flow $ 81,198
Income from unconsolidated
cellular entity (1,603)
Deferred income taxes 36,112
Changes in current assets and
current liabilities (2,366)
Increase in other noncurrent
assets (1,177)
Increase (decrease) in other
noncurrent liabilities 142
Retirement benefits (30,804)
Other, net (1,467)
Add: Capital expenditures 132,914
---------
Net cash provided by operating
activities $ 212,949
=========
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)(2) 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 (8,185)
Increase (decrease) in other
noncurrent liabilities (1,524)
Retirement benefits 3,954
Other, net 1,556
Add: Capital expenditures 131,719
---------
Net cash provided by operating
activities $ 220,037
=========
NONRECURRING ITEMS
(1) - Impairment of nonoperating investment (presented on an
after-tax basis).
(2) - Impairment of separate nonoperating investment (presented on
an after-tax basis).
CenturyTel, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Twelve months ended December 31,
2005
-----------------------------------
As
adjusted
Less excluding
non- non-
In thousands As recurring recurring
reported items items
--------------------- -----------
Operating cash flow and cash flow
margin
Operating income $ 736,403 (5,853)(1) 742,256
Add: Depreciation and
amortization 531,931 - 531,931
---------- ---------- -----------
Operating cash flow $1,268,334 (5,853) 1,274,187
========== ========== ===========
Revenues $2,479,252 - 2,479,252
========== ========== ===========
Operating income margin
(operating income divided by
revenues) 29.7% 29.9%
========== ===========
Operating cash flow margin
(operating cash flow divided by
revenues) 51.2% 51.4%
========== ===========
Free cash flow (prior to debt
service requirements and
dividends)
Net income $ 334,479 (11,791)(2) 346,270
Add: Depreciation and
amortization 531,931 - 531,931
Less: Capital expenditures (414,872) - (414,872)
---------- ---------- -----------
$ 451,538 (11,791) 463,329
========== ========== ===========
Free cash flow $ 451,538
Income from unconsolidated
cellular entity (4,910)
Deferred income taxes 69,530
Changes in current assets and
current liabilities 27,001
Increase in other noncurrent
assets (5,384)
Increase (decrease) in other
noncurrent liabilities 2,638
Retirement benefits (16,815)
Other, net 7,848
Add: Capital expenditures 414,872
----------
Net cash provided by operating
activities $ 946,318
==========
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 (3) 744,245
Add: Depreciation and
amortization 500,904 (13,221)(3) 514,125
---------- ---------- -----------
Operating cash flow 1,254,857 (3,513) 1,258,370
========== ========== ===========
Revenues 2,407,372 (3,513)(3) 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 (4) 332,803
Add: Depreciation and
amortization 500,904 (13,221)(3) 514,125
Less: Capital expenditures (385,316) - (385,316)
---------- ---------- -----------
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 (34,740)
Increase (decrease) in other
noncurrent liabilities (6,220)
Retirement benefits 26,954
Other, net 6,060
Add: Capital expenditures 385,316
----------
Net cash provided by operating
activities 955,831
==========
NONRECURRING ITEMS
(1) - Expenses associated with Hurricanes Katrina and Rita
(presented on a pre-tax basis).
(2) - Includes (i) a $10.0 million after-tax impairment of
nonoperating investment, a $3.7 million after-tax expense related
to purchasing and retiring approximately $400 million of Series J
notes and a $3.6 million after-tax expense associated with
Hurricanes Katrina and Rita, net of (ii) a $3.3 million net benefit
related to the settlement of various income tax audits and a $2.2
million after-tax gain on sale of nonoperating investment.
(3) - Adjustment for overdepreciated assets, including related
revenue effect (presented on a pre-tax basis).
(4) - Adjustment for overdepreciated assets, including related
revenue effect, and impairment of separate nonoperating investment
(presented on an after-tax basis).
MULTIMEDIA AVAILABLE:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5070715
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.