MONROE, La., July 31 /PRNewswire-FirstCall/ -- CenturyTel, Inc.
(NYSE: CTL) announces operating results for second quarter 2008.
* Operating revenues, excluding nonrecurring items, increased 2.8% to
$657.1 million compared to $639.1 million in second quarter 2007.
Reported under GAAP, operating revenues decreased 4.6% to
$658.1 million, primarily due to a nonrecurring $49 million
favorable access dispute settlement in second quarter 2007.
* Operating cash flow (as defined in the attached financial
schedules), excluding nonrecurring items, rose 2.3% to
$318.3 million from $311.2 million in second quarter 2007.
* Net income, excluding nonrecurring items, increased 16.2% to
$91.2 million from $78.4 million in second quarter 2007. Net income,
reported under GAAP, was $92.2 million compared to $112.3 million in
second quarter 2007.
* Diluted earnings per share, excluding nonrecurring items, rose 24.3%
to $.87 in second quarter 2008 compared to $.70 in second quarter
2007, while GAAP diluted earnings per share was $.88 in second
quarter 2008 compared to $1.00 in second quarter 2007.
* Free cash flow (as defined in the attached financial schedules),
excluding nonrecurring items, rose to $162.5 million in second
quarter 2008 compared to $154.8 million in second quarter 2007.
Second Quarter Highlights
(Excluding nonrecurring items
reflected in the attached
financial schedules)
(In thousands, except per Quarter Quarter
share amounts and subscriber Ended Ended
data) 6/30/08 6/30/07 % Change
Operating Revenues $657,073 $639,122 2.8%
Operating Cash Flow (1) $318,266 $311,226 2.3%
Net Income $91,162 $78,434 16.2%
Diluted Earnings Per Share .87 .70 24.3%
Average Diluted Shares
Outstanding $104,273 $113,721 (8.3)%
Capital Expenditures $59,659 $57,976 2.9%
Access Lines 2,077,000 2,205,000 (5.8)%
High-Speed Internet
Customers 607,000 500,000 21.4%
(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 solid second quarter results as operating revenues
and diluted earnings per share exceeded our expectations for the quarter,"
Glen F. Post, III, chairman and chief executive officer, said. "We
generated free cash flow of more than $162 million for the quarter, a
nearly 5% increase over second quarter 2007. Our strong cash flows enable
us to return significant cash to shareholders through our recently
announced dividend increase and the acceleration of our current share
repurchase program."
Operating revenues, excluding nonrecurring items, increased 2.8% to
$657.1 million in second quarter 2008 compared to $639.1 million in second
quarter 2007. Revenue increases of approximately $41 million were driven
primarily by revenues contributed by the Madison River properties acquired
April 30, 2007 and growth in high-speed Internet customers, along with
selected price increases and favorable network access dispute settlements.
These increases more than offset revenue declines of approximately $23 million
primarily attributable to lower access revenues, lower universal service fund
receipts and access line losses.
Operating expenses, excluding nonrecurring items, increased 1.6% to
$469.8 million from $462.2 million in second quarter 2007, primarily due to
operating costs associated with the Madison River properties, growth in high-
speed Internet customers and increased marketing expenses. These increases
were partially offset by reduced personnel related costs and lower
depreciation expense.
"We completed the integration of the Madison River properties in late
June and expect to reach our $17 million annual synergy run rate target
by the end of the third quarter," Post said. "We expect these synergies,
along with continued broadband growth and cost containment efforts, to
enable CenturyTel to continue to generate solid cash flows in the months
ahead."
Operating cash flow, excluding nonrecurring items, for second quarter 2008
increased 2.3% to $318.3 million from $311.2 million in second quarter 2007.
CenturyTel achieved an operating cash flow margin of 48.4% during the quarter
versus 48.7% in second quarter 2007.
Net income, excluding nonrecurring items, was $91.2 million, a 16.2%
increase over the $78.4 million in second quarter 2007. Diluted earnings per
share, excluding nonrecurring items, increased 24.3% to $.87 in second quarter
2008 compared to $.70 in second quarter 2007, primarily due to increased
operating income, lower interest expense, a lower effective tax rate for 2008
and the reduction in diluted shares outstanding as a result of share
repurchases.
For the first six months of 2008, operating revenues, excluding
nonrecurring items, were $1.31 billion compared to $1.24 billion in 2007, a
5.3% increase. Operating cash flow, excluding nonrecurring items, was
$637.4 million for 2008, a 5.0% increase over the $607.1 million a year ago.
Net income, excluding nonrecurring items, increased 13.5% to $177.3 million
from $156.3 million in 2007, while diluted earnings per share, excluding
nonrecurring items, increased 21.7% to $1.68 from $1.38 in 2007.
Under generally accepted accounting principles (GAAP), net income for
second quarter 2008 was $92.2 million compared to $112.3 million for second
quarter 2007. Diluted earnings per share was $.88 in second quarter 2008
compared to $1.00 in second quarter 2007. Second quarter 2008 results include
a net $1.3 million after-tax charge related to the freeze of our supplemental
executive pension plan and a net $2.3 million benefit related to the
resolution of certain income tax audit issues. Second quarter 2007 results
include a $30.2 million after-tax positive revenue settlement related to the
resolution of network access disputes and a $3.6 million after-tax benefit
related to the amended satellite television agreement with EchoStar.
For the first six months of 2008, under GAAP, the Company reported net
income of $180.9 million, or $1.71 per diluted share, compared to net income
of $190.1 million, or $1.67 per diluted share, for the six months ended June
30, 2007. See the accompanying financial schedules for detail of the Company's
nonrecurring items for the years 2008 and 2007.
For third quarter 2008, CenturyTel expects total revenues of $640 to
$650 million and diluted earnings per share of $.79 to $.83. This decrease in
revenues and diluted earnings per share compared to second quarter 2008 is
primarily due to approximately $6 million in favorable revenue adjustments
recognized in the second quarter, including the network access dispute
settlements management discussed during the Company's first quarter earnings
call, that are not expected to reoccur in the third quarter.
For the full year 2008, diluted earnings per share is expected to be in
the range of $3.20 to $3.30, an increase over the $3.05 to $3.20 range
previously provided. This increase in 2008 diluted earnings per share guidance
is primarily due to the better than anticipated results during second quarter
2008 and share repurchases since April 30.
These outlook figures for second quarter and full year 2008 exclude
nonrecurring items, any share repurchases settled after July 31, 2008, and any
future mergers, acquisitions, divestitures, or other similar business
transactions.
"We are pleased with the operational performance and continued share
buybacks that are driving an increase in our full year 2008 outlook,"
said Post. "We continue to evaluate deployment and technology
alternatives for our 700 MHz spectrum and are currently leaning toward
the same type of LTE-based deployment that has been discussed by the
larger carriers. We do not foresee material 700 MHz related effects on
our capital or operating budgets in either 2008 or 2009 since LTE-based
network elements and end-user devices are not expected to be commercially
available until early 2010 or later."
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 investors 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 schedules. 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
http://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 866.206.5917. The call will be accessible for
replay through August 6, 2008, by calling 888.258.7854 and entering the
conference ID number 1253493. 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 http://www.centurytel.com through
August 20, 2008.
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 adjust to changes in the communications industry; the Company's
ability to effectively manage its expansion opportunities, including
successfully integrating newly-acquired properties into the Company's
operations and retaining and hiring key personnel; possible changes in the
demand for, or pricing of, the Company's products and services; the Company's
continued access to credit markets on favorable terms; 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 pay a
$2.80 per share common dividend annually, which may be affected by changes in
its cash requirements, capital spending plans, cash flow or financial
position; 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 (the "SEC"); 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 and plans are described in greater detail in
the Company's Annual Report on Form 10-K for the year ended December 31, 2007,
as updated and supplemented by the Company's subsequent SEC reports. 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 July 31,
2008. The Company undertakes no obligation to update any of its forward-
looking statements for any reason.
CenturyTel (NYSE: CTL) is a leading provider of communications, high-speed
Internet and entertainment services in small-to-mid-size cities through our
broadband and fiber transport networks. Included in the S&P 500 Index,
CenturyTel delivers advanced communications with a personal touch to customers
in 25 states. Visit us at http://www.centurytel.com.
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED JUNE 30, 2008 AND 2007
(UNAUDITED)
Three months ended June 30, 2008
As adjusted
Less excluding
non- non-
In thousands, except per share As recurring recurring
amounts reported items items
OPERATING REVENUES
Voice $219,901 219,901
Network access 207,904 1,012 (1) 206,892
Data 131,060 21 (1) 131,039
Fiber transport and CLEC 43,166 43,166
Other 56,075 56,075
658,106 1,033 657,073
OPERATING EXPENSES
Cost of services and products 239,626 239,626
Selling, general and
administrative 106,836 7,655 (1) 99,181
Depreciation and amortization 130,954 130,954
477,416 7,655 469,761
OPERATING INCOME 180,690 (6,622) 187,312
OTHER INCOME (EXPENSE)
Interest expense (49,166) (49,166)
Other income (expense) 12,907 5,425 (2) 7,482
Income tax expense (52,264) 2,202 (3) (54,466)
NET INCOME $92,167 1,005 91,162
BASIC EARNINGS PER SHARE $0.89 0.01 0.88
DILUTED EARNINGS PER SHARE $0.88 0.01 0.87
AVERAGE SHARES OUTSTANDING
Basic 103,644 103,644
Diluted 104,273 104,273
DIVIDENDS PER COMMON SHARE $0.0675 0.0675
Three months ended June 30, 2007
As Increase
adjusted (decrease)
Less excluding Increase excluding
non- non- (decrease) non-
In thousands, except per As recurring recurring as recurring
share amounts reported items items reported items
OPERATING REVENUES
Voice 222,677 222,677 (1.2%) (1.2%)
Network access 266,202 48,987 (4) 217,215 (21.9%) (4.8%)
Data 108,206 108,206 21.1% 21.1%
Fiber transport and
CLEC 40,714 13 (4) 40,701 6.0% 6.1%
Other 52,192 1,869 (5) 50,323 7.4% 11.4%
689,991 50,869 639,122 (4.6%) 2.8%
OPERATING EXPENSES
Cost of services and
products 226,388 (4,052)(5) 230,440 5.8% 4.0%
Selling, general and
administrative 97,456 97,456 9.6% 1.8%
Depreciation and
amortization 134,311 134,311 (2.5%) (2.5%)
458,155 (4,052) 462,207 4.2% 1.6%
OPERATING INCOME 231,836 54,921 176,915 (22.1%) 5.9%
OTHER INCOME (EXPENSE)
Interest expense (57,667) (57,667) (14.7%) (14.7%)
Other income (expense) 8,080 8,080 59.7% (7.4%)
Income tax expense (69,984) (21,090)(6) (48,894) (25.3%) 11.4%
NET INCOME 112,265 33,831 78,434 (17.9%) 16.2%
BASIC EARNINGS PER
SHARE 1.03 0.31 0.72 (13.6%) 22.2%
DILUTED EARNINGS PER
SHARE 1.00 0.30 0.70 (12.0%) 24.3%
AVERAGE SHARES
OUTSTANDING
Basic 108,405 108,405 (4.4%) (4.4%)
Diluted 113,721 113,721 (8.3%) (8.3%)
DIVIDENDS PER COMMON SHARE 0.0650 0.0650 3.8% 3.8%
NONRECURRING ITEMS
(1) - Curtailment loss related to freezing Supplemental Executive
Retirement Plan, including revenue impact.
(2) - Gain upon liquidation of Supplemental Executive Retirement
Plan trust assets ($4.5 million) and interest income recorded
upon the resolution of certain income tax audit issues
($919,000).
(3) - Includes $448,000 net income tax benefit related to items
(1) and (2) and $1.8 million income tax benefit recorded upon
resolution of certain income tax audit issues.
(4) - Revenue recorded upon settlement of a dispute with a
carrier.
(5) - Reimbursement of amounts upon a change in our satellite
television arrangement.
(6) - Tax effects of items (4) and (5).
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
SIX MONTHS ENDED JUNE 30, 2008 AND 2007
(UNAUDITED)
Six months ended June 30, 2008
As adjusted
Less excluding
non- non-
In thousands, except per share As recurring recurring
amounts reported items items
OPERATING REVENUES
Voice $440,381 440,381
Network access 416,602 1,012 (1) 415,590
Data 257,832 21 (1) 257,811
Fiber transport and CLEC 82,799 82,799
Other 109,106 109,106
1,306,720 1,033 1,305,687
OPERATING EXPENSES
Cost of services and products 477,438 477,438
Selling, general and administrative 198,461 7,655 (1) 190,806
Depreciation and amortization 266,638 266,638
942,537 7,655 934,882
OPERATING INCOME 364,183 (6,622) 370,805
OTHER INCOME (EXPENSE)
Interest expense (99,288) (99,288)
Other income (expense) 21,324 9,561 (2) 11,763
Income tax expense (105,292) 655 (3) (105,947)
NET INCOME $180,927 3,594 177,333
BASIC EARNINGS PER SHARE $1.72 0.03 1.69
DILUTED EARNINGS PER SHARE $1.71 0.03 1.68
AVERAGE SHARES OUTSTANDING
Basic 104,893 104,893
Diluted 105,635 105,635
DIVIDENDS PER COMMON SHARE $0.1350 0.1350
Six months ended June 30, 2007
As Increase
adjusted (decrease)
Less excluding Increase excluding
non- non- (decrease) non-
In thousands, except per As recurring recurring as recurring
share amounts reported items items reported items
OPERATING REVENUES
Voice 434,573 434,573 1.3% 1.3%
Network access 477,601 48,987 (4) 428,614 (12.8%) (3.0%)
Data 204,070 204,070 26.3% 26.3%
Fiber transport and
CLEC 79,040 13 (4) 79,027 4.8% 4.8%
Other 95,562 1,869 (5) 93,693 14.2% 16.5%
1,290,846 50,869 1,239,977 1.2% 5.3%
OPERATING EXPENSES
Cost of services and
products 439,919 (4,052)(5) 443,971 8.5% 7.5%
Selling, general and
administrative 188,913 188,913 5.1% 1.0%
Depreciation and
amortization 262,095 262,095 1.7% 1.7%
890,927 (4,052) 894,979 5.8% 4.5%
OPERATING INCOME 399,919 54,921 344,998 (8.9%) 7.5%
OTHER INCOME (EXPENSE)
Interest expense (104,628) (104,628) (5.1%) (5.1%)
Other income
(expense) 13,370 13,370 59.5% (12.0%)
Income tax expense (118,526) (21,090)(6) (97,436) (11.2%) 8.7%
NET INCOME 190,135 33,831 156,304 (4.8%) 13.5%
BASIC EARNINGS PER
SHARE 1.73 0.31 1.42 (0.6%) 19.0%
DILUTED EARNINGS PER
SHARE 1.67 0.29 1.38 2.4% 21.7%
AVERAGE SHARES
OUTSTANDING
Basic 109,718 109,718 (4.4%) (4.4%)
Diluted 115,015 115,015 (8.2%) (8.2%)
DIVIDENDS PER COMMON
SHARE 0.130 0.130 3.8% 3.8%
NONRECURRING ITEMS
(1) - Curtailment loss related to freezing Supplemental Executive
Retirement Plan, including revenue impact.
(2) - Gain on the sale of a nonoperating investment
($4.1 million), gain upon liquidation of Supplemental Executive
Retirement Plan trust assets ($4.5 million), and
interest income recorded upon the resolution of certain
income tax audit issues ($919,000).
(3) - Includes $1.1 million net income tax expense related to
items (1) and (2) and $1.8 million income tax benefit recorded
upon resolution of certain income tax audit issues.
(4) - Revenue recorded upon settlement of a dispute with a
carrier.
(5) - Reimbursement of amounts upon a change in our satellite
television arrangement.
(6) - Tax effects of items (4) and (5).
CenturyTel, Inc.
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2008 AND DECEMBER 31, 2007
(UNAUDITED)
June 30, Dec. 31,
2008 2007
(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $63,900 34,402
Other current assets 267,416 257,997
Total current assets 331,316 292,399
NET PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment 8,751,414 8,666,106
Accumulated depreciation (5,783,574) (5,557,730)
Net property, plant and equipment 2,967,840 3,108,376
GOODWILL AND OTHER ASSETS
Goodwill 4,010,027 4,010,916
Other 858,881 772,862
Total goodwill and other assets 4,868,908 4,783,778
TOTAL ASSETS $8,168,064 8,184,553
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $45,344 279,898
Other current liabilities 444,774 456,637
Total current liabilities 490,118 736,535
LONG-TERM DEBT 3,016,243 2,734,357
DEFERRED CREDITS AND OTHER LIABILITIES 1,286,666 1,304,456
STOCKHOLDERS' EQUITY 3,375,037 3,409,205
TOTAL LIABILITIES AND EQUITY $8,168,064 8,184,553
CenturyTel, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Three months ended Three months ended
June 30, 2008 June 30, 2007
As
As adjusted adjusted
Less excluding Less excluding
non- non- non- non-
In thousands As recurring recurring As recurring recurring
reported items items reported items items
Operating cash
flow and cash
flow margin
Operating
income $180,690 (6,622)(1) 187,312 231,836 54,921 (3) 176,915
Add:
Depreciation
and
amortization 130,954 130,954 134,311 134,311
Operating cash
flow $311,644 (6,622) 318,266 366,147 54,921 311,226
Revenues $658,106 1,033 (1) 657,073 689,991 50,869 (3) 639,122
Operating
income margin
(operating
income divided
by revenues) 27.5% 28.5% 33.6% 27.7%
Operating cash
flow margin
(operating
cash flow
divided by
revenues) 47.4% 48.4% 53.1% 48.7%
Free cash flow
(prior to debt
service
requirements
and dividends)
Net income $92,167 1,005 (2) 91,162 112,265 33,831 (3) 78,434
Add:
Depreciation
and
amortization 130,954 130,954 134,311 134,311
Less: Capital
expenditures (59,659) (59,659) (57,976) (57,976)
Free cash flow $163,462 1,005 162,457 188,600 33,831 154,769
Free cash flow $163,462 188,600
Gain on
liquidation of
marketable
securities (4,506) -
Deferred income
taxes 5,068 16,634
Changes in
current assets
and current
liabilities (44,749) 36,943
Decrease in
other
noncurrent
assets 3,043 2,621
Decrease in
other
noncurrent
liabilities (2,689) (11,266)
Retirement
benefits 12,728 9,011
Excess tax
benefits from
share-based
compensation (55) (3,280)
Other, net 4,816 2,076
Add: Capital
expenditures 59,659 57,976
Net cash
provided by
operating
activities $196,777 299,315
NONRECURRING ITEMS
(1) - Curtailment loss related to freezing Supplemental Executive
Retirement Plan, including revenue impact.
(2) - Includes after-tax impact of gain upon liquidation of
Supplemental Executive Retirement Plan trust assets
($2.8 million) and net benefit due to the resolution of certain
income tax audit issues ($2.3 million), net of the after-tax
impact of Item (1) ($4.1 million).
(3) - Includes $49.0 million revenue recorded upon settlement of a
dispute with a carrier and $5.9 million reimbursement of amounts
(of which $1.9 million increased revenues) upon a change
in our satellite television arrangement (presented on both a
pre-tax and after-tax basis).
CenturyTel, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Six months ended June 30, 2008
As adjusted
Less excluding
non- non-
In thousands As recurring recurring
reported items items
Operating cash flow and cash flow
margin
Operating income $364,183 (6,622)(1) 370,805
Add: Depreciation and
amortization 266,638 266,638
Operating cash flow $630,821 (6,622) 637,443
Revenues $1,306,720 1,033 (1) 1,305,687
Operating income margin (operating
income divided by revenues) 27.9% 28.4%
Operating cash flow margin
(operating cash flow divided by
revenues) 48.3% 48.8%
Free cash flow (prior to debt
service requirements and dividends)
Net income $180,927 3,594 (2) 177,333
Add: Depreciation and amortization 266,638 266,638
Less: Capital expenditures (114,398) (114,398)
Free cash flow $333,167 3,594 329,573
Free cash flow $333,167
Gain on asset dispositions and
liquidation of marketable securities (8,641)
Deferred income taxes 13,425
Changes in current assets and
current liabilities (57,026)
Decrease in other noncurrent
assets 2,254
Decrease in other noncurrent
liabilities (5,479)
Retirement benefits 18,202
Excess tax benefits from share-
based compensation (74)
Other, net 16,761
Add: Capital expenditures 114,398
Net cash provided by operating
activities $426,987
Six months ended June 30, 2007
As adjusted
Less excluding
non- non-
In thousands As recurring recurring
reported items items
Operating cash flow and cash flow
margin
Operating income 399,919 54,921 (3) 344,998
Add: Depreciation and amortization 262,095 262,095
Operating cash flow 662,014 54,921 607,093
Revenues 1,290,846 50,869 (3) 1,239,977
Operating income margin (operating
income divided by revenues) 31.0% 27.8%
Operating cash flow margin
(operating cash flow divided by
revenues) 51.3% 49.0%
Free cash flow (prior to debt service
requirements and dividends)
Net income 190,135 33,831 (3) 156,304
Add: Depreciation and amortization 262,095 262,095
Less: Capital expenditures (106,856) (106,856)
Free cash flow 345,374 33,831 311,543
Free cash flow 345,374
Gain on asset dispositions and
liquidation of marketable
securities -
Deferred income taxes 30,005
Changes in current assets and
current liabilities 70,835
Decrease in other noncurrent assets 3,653
Decrease in other noncurrent
liabilities (11,667)
Retirement benefits 14,647
Excess tax benefits from share-
based compensation (6,312)
Other, net 4,634
Add: Capital expenditures 106,856
Net cash provided by operating
activities 558,025
NONRECURRING ITEMS
(1) - Curtailment loss related to freezing Supplemental Executive
Retirement Plan, including revenue impact.
(2) - Includes (i) after-tax impact of gain upon liquidation of
Supplemental Executive Retirement Plan trust assets
($2.8 million), (ii) after-tax impact of gain on sale of
nonoperating investment ($2.6 million), and (iii) net benefit due
to the resolution of certain income tax audit issues
($2.3 million), all partially offset by the after-tax impact of
Item (1) ($4.1 million).
(3) - Includes $49.0 million revenue recorded upon settlement of a
dispute with a carrier and $5.9 million reimbursement of amounts
(of which $1.9 million increased revenues) upon a change
in our satellite television arrangement (presented on both a
pre-tax and after-tax basis).
SOURCE CenturyTel, Inc.
Contact: Tony Davis of CenturyTel, Inc., +1-318-388-9525, tony.davis@centurytel.com