UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 30, 2001
CenturyTel, Inc.
(Exact name of registrant as specified in its charter)
Louisiana 1-7784 72-0651161
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
100 CenturyTel Drive, Monroe, Louisiana 71203
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (318) 388-9000
Item 5. Other Events
On January 30, 2001 the Company issued the following two press releases:
(i) Announcement of fourth quarter 2000 operating results and
(ii) Growth initiatives and financial guidance for 2001
Both press releases are included herein under Item 5-Other Events.
FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT:
January 30, 2001 Jeffrey S. Glover (318) 388-9648
jeff.glover@centurytel.com
CenturyTel Achieves Strong Fourth Quarter Revenue and Cash Flow Growth
Monroe, LA. . . CenturyTel, Inc. (NYSE Symbol: CTL) announces operating results
for fourth quarter 2000.
o Revenues from recurring operations climbed 24.9% to $527.2 million.
o Earnings before interest, taxes, depreciation and amortization from
recurring operations increased 25.4% to $269.4 million.
o Net income from recurring operations decreased 4.3% to $57.1 million.
o Cash earnings per share (earnings before goodwill amortization) from
recurring operations was $.49 in both periods.
o Diluted earnings per share from recurring operations fell 4.8% to $.40.
- --------------------------------------------------------------------------------
Fourth Quarter Highlights*
(In thousands, except Quarter Ended Quarter Ended
per share amounts) 12/31/00 12/31/99 % Change
- --------------------------------------------------------------------------------
Revenues (1) $ 527,180 $ 422,129 24.9%
EBITDA (2) $ 269,379 $ 214,809 25.4%
Net Income (3) $ 57,121 $ 59,697 (4.3%)
Cash Earnings Per Share (3) $ .49 $ .49 -
Diluted Earnings Per Share (3) $ .40 $ .42 (4.8%)
Average Diluted Shares Outstanding 142,149 141,756 .3%
Telephone Revenues (1) $ 376,347 $ 289,298 30.1%
Wireless Revenues $ 111,791 $ 100,545 11.2%
Other Operations Revenues $ 39,042 $ 32,286 20.9%
- --------------------------------------------------------------------------------
Telephone Access Lines 1,800,565 1,272,867 41.5%
Wireless Units in Majority-Owned Markets 751,200 696,641 7.8%
- --------------------------------------------------------------------------------
* Excluding the effects of asset divestitures and nonrecurring gains
and losses
(1) Includes $85.7 million revenue contribution from Verizon acquisitions
completed in third quarter 2000
(2) Earnings from recurring operations before interest, taxes, depreciation,
amortization and gain on sales of assets
(3) Excludes after-tax gain on asset sale of $7.6 million, or $.05 per share,
and non recurring charge of $4.1 million, or $.03 per share, in fourth
quarter 1999
"CenturyTel's fourth quarter results reflect excellent growth in revenue
and cash flow," Glen F. Post, III, President and Chief Executive Officer, said.
"Recent wireline acquisitions from Verizon are meeting our revenue expectations
with the exception of access rates in Wisconsin, and the integration of these
properties is on track. We are also pleased with the results in our wireless
operations this quarter as we added more than 26,000 contract wireless customers
and experienced solid growth in service revenues."
Consolidated revenues from recurring operations rose 24.9% to $527.2
million from $422.1 million. EBITDA from recurring operations grew to $269.4
million from $214.8 million, a 25.4% increase. CenturyTel achieved a
consolidated EBITDA margin of 51.1% during the quarter. Net income for the
quarter from recurring operations declined 4.3% to $57.1 million from $59.7
million in fourth quarter 1999, primarily due to the interest expense increase
related to the financing of approximately 500,000 telephone access lines
acquired from Verizon during third quarter 2000. Cash earnings per share from
recurring operations was $.49 in both periods. Diluted earnings per share from
recurring operations decreased 4.8% to $.40 from $.42.
Telephone revenues grew 30.1% to $376.3 million during the quarter,
compared with $289.3 million in fourth quarter 1999. The Verizon acquisition
properties contributed $85.7 million in telephone revenues during the quarter.
Telephone operating income increased 19.6%, reaching $109.2 million from $91.3
million, and EBITDA rose 31.9% to $209.7 million from $159.0 million a year ago.
CenturyTel's fourth quarter telephone EBITDA margin was 55.7% while the
operating income margin was 29.0%.
"We are making solid progress in our efforts to upgrade the acquired
markets and bring new services to customers. We also achieved our goal of making
high-speed Internet access via DSL available to more than 40% of our pre-Verizon
access lines," Post said.
Wireless revenues from recurring operations grew 11.2% to $111.8 million in
fourth quarter 2000, compared with $100.5 million in fourth quarter 1999.
Wireless operating income from recurring operations was $25.9 million compared
to $22.0 million, a 17.9% increase, and EBITDA from recurring operations
increased 6.5% to $41.9 million compared to $39.3 million a year ago.
CenturyTel's fourth quarter wireless EBITDA margin was 38.8% based on service
revenues, and operating income margin was 24.0% based on service revenues.
Average monthly cellular service revenue per user was $49 during fourth quarter
2000, reflecting no decline from fourth quarter 1999. The average monthly churn
rate was 2.1% for contract customers.
"CenturyTel achieved a 56% increase in contract customer net additions as
compared with fourth quarter 1999. More than 19% of our wireless customers are
now on digital rate plans, nearly quadruple the digital penetration at year-end
1999," Post said.
Other operations revenues from recurring operations grew 20.9% to $39.0
million during fourth quarter 2000, compared with $32.3 million in fourth
quarter 1999. CenturyTel's long distance business generated $3.4 million of the
increase in other operations revenues. CenturyTel now serves more than 363,000
long distance customers, adding more than 16,000 during the quarter.
For the full year of 2000, consolidated revenues rose 14.7% to $1.8 billion
from $1.6 billion. EBITDA grew to $953.2 million from $861.3 million, a 10.7%
increase. Net income from recurring operations declined 3.5% to $231.1 million
from $239.6 million in 1999, primarily due to increased interest expense related
to acquisition financing. Cash earnings per share from recurring operations
decreased 1.0% to $1.98 from $2.00, and diluted earnings per share decreased
4.1% to $1.63 from $1.70.
In addition to historical information, this release includes certain
forward-looking statements that are subject to uncertainties that could cause
the Company's actual results to differ materially from such statements. Such
uncertainties include but are not limited to: the Company's ability to
effectively manage its growth; including integrating newly acquired businesses
into our operations; hiring adequate numbers of qualified staff and successfully
upgrading our billing and other information systems; the inherent risk of rapid
technological change; the effects of regulatory decisions affecting the Company
or the telecommunications industry generally; the effects of greater than
anticipated competition in the Company's markets; possible changes in the demand
for the Company's products and services; the Company's ability to successfully
introduce new offerings on a timely and cost-effective basis; and the effects of
more general factors such as changes in overall market 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, 1999.
CenturyTel's management will be hosting a conference call at 4:00 P.M.
Central time to discuss fourth quarter earnings and the outlook for 2001.
Investors can access CenturyTel's earnings conference call and replay by
accessing the company's website at (www.centurytel.com)
CenturyTel, Inc. provides communications services including local exchange,
wireless, long distance, Internet access and data services to nearly three
million customers in 21 states. The company, headquartered in Monroe, Louisiana,
is publicly traded on the New York Stock Exchange under the symbol CTL.
CenturyTel is the 8th largest local exchange telephone company, based on access
lines, and the 8th largest cellular company, based on population equivalents
owned, in the United States.
Visit CenturyTel's corporate Web site at (www.centurytel.com)
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED DECEMBER 31, 2000 AND 1999
(UNAUDITED)
INCREASE
In thousands, except per share amounts 2000 1999 (DECREASE)
- -------------------------------------------------------------------------------
TELEPHONE OPERATIONS
Operating revenues
Local service $ 123,642 87,415 41.4%
Network access 217,357 171,377 26.8%
Other 35,348 30,506 15.9%
- ----------------------------------------------------------------
376,347 289,298 30.1%
- ----------------------------------------------------------------
Operating expenses
Plant operations 91,437 63,478 44.0%
Customer operations 29,057 22,513 29.1%
Corporate and other 46,127 44,326 4.1%
Depreciation and amortization 100,535 67,697 48.5%
- ----------------------------------------------------------------
267,156 198,014 34.9%
- ----------------------------------------------------------------
Telephone operating income 109,191 91,284 19.6%
- ----------------------------------------------------------------
WIRELESS OPERATIONS
Operating revenues
Service revenues 107,911 98,619 9.4%
Equipment sales 3,880 3,405 14.0%
- ----------------------------------------------------------------
111,791 102,024 9.6%
- ----------------------------------------------------------------
Operating expenses
Cost of equipment sold 8,336 7,560 10.3%
System operations 17,859 14,472 23.4%
General, administrative and
customer service 21,664 19,456 11.3%
Sales and marketing 22,036 20,773 6.1%
Depreciation and amortization 16,014 17,630 (9.2%)
- ----------------------------------------------------------------
85,909 79,891 7.5%
- ----------------------------------------------------------------
Wireless operating income 25,882 22,133 16.9%
- ----------------------------------------------------------------
OTHER OPERATIONS
Operating revenues 39,042 35,136 11.1%
- ----------------------------------------------------------------
Operating expenses
Cost of sales and other 30,888 28,595 8.0%
Depreciation and amortization 1,187 3,196 (62.9%)
- ----------------------------------------------------------------
32,075 31,791 0.9%
- ----------------------------------------------------------------
Other operating income 6,967 3,345 108.3%
- ----------------------------------------------------------------
TOTAL OPERATING INCOME 142,040 116,762 21.6%
OTHER INCOME (EXPENSE)
Gain on sales of assets - 11,648 (100.0%)
Interest expense (63,089) (35,832) 76.1%
Income from unconsolidated
cellular entities 7,604 762 897.9%
Minority interest (2,149) (2,353) (8.7%)
Other income and expense 4,148 2,468 68.1%
Income tax expense (31,433) (32,782) (4.1%)
- ----------------------------------------------------------------
NET INCOME $ 57,121 60,673 (5.9%)
================================================================
EARNINGS PER SHARE
Basic (1) $ 0.41 0.43 (4.7%)
Diluted (2) $ 0.40 0.43 (7.0%)
SHARES OUTSTANDING
Basic 140,325 139,372 0.7%
Diluted 142,149 141,756 0.3%
DIVIDENDS PER COMMON SHARE $ 0.0475 0.0450 5.6%
(1) Excluding the effect of asset divestitures and nonrecurring gains and
losses, basic earnings per share were $.41 and $.43 for 2000 and 1999,
respectively
(2) Excluding the effect of asset divestitures and nonrecurring gains and
losses, diluted earnings per share were $.40 and $.42 for 2000 and 1999,
respectively
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED DECEMBER 31, 2000 AND 1999
(UNAUDITED)
Excludes the effect of asset divestitures
and nonrecurring gains and losses INCREASE
In thousands, except per share amounts 2000 1999 (DECREASE)
- -------------------------------------------------------------------------------
TELEPHONE OPERATIONS
Operating revenues
Local service $ 123,642 87,415 41.4%
Network access 217,357 171,377 26.8%
Other 35,348 30,506 15.9%
- ----------------------------------------------------------------
376,347 289,298 30.1%
- ----------------------------------------------------------------
Operating expenses
Plant operations 91,437 63,478 44.0%
Customer operations 29,057 22,513 29.1%
Corporate and other 46,127 44,326 4.1%
Depreciation and amortization 100,535 67,697 48.5%
- ----------------------------------------------------------------
267,156 198,014 34.9%
- ----------------------------------------------------------------
Telephone operating income 109,191 91,284 19.6%
- ----------------------------------------------------------------
WIRELESS OPERATIONS
Operating revenues
Service revenues 107,911 97,242 11.0%
Equipment sales 3,880 3,303 17.5%
- ----------------------------------------------------------------
111,791 100,545 11.2%
- ----------------------------------------------------------------
Operating expenses
Cost of equipment sold 8,336 7,113 17.2%
System operations 17,859 14,197 25.8%
General, administrative and
customer service 21,664 19,140 13.2%
Sales and marketing 22,036 20,747 6.2%
Depreciation and amortization 16,014 17,387 (7.9%)
- ----------------------------------------------------------------
85,909 78,584 9.3%
- ----------------------------------------------------------------
Wireless operating income 25,882 21,961 17.9%
- ----------------------------------------------------------------
OTHER OPERATIONS
Operating revenues 39,042 32,286 20.9%
- ----------------------------------------------------------------
Operating expenses
Cost of sales and other 30,888 23,649 30.6%
Depreciation and amortization 1,187 1,444 (17.8%)
- ----------------------------------------------------------------
32,075 25,093 27.8%
- ----------------------------------------------------------------
Other operating income 6,967 7,193 (3.1%)
- ----------------------------------------------------------------
TOTAL OPERATING INCOME 142,040 120,438 17.9%
OTHER INCOME (EXPENSE)
Interest expense (63,089) (35,816) 76.1%
Income from unconsolidated
cellular entities 7,604 7,622 (0.2%)
Minority interest (2,149) (2,353) (8.7%)
Other income and expense 4,148 2,574 61.1%
Income tax expense (31,433) (32,768) (4.1%)
- ----------------------------------------------------------------
NET INCOME $ 57,121 59,697 (4.3%)
================================================================
EARNINGS PER SHARE
Basic $ 0.41 0.43 (4.7%)
Diluted $ 0.40 0.42 (4.8%)
SHARES OUTSTANDING
Basic 140,325 139,372 0.7%
Diluted 142,149 141,756 0.3%
DIVIDENDS PER COMMON SHARE $ 0.0475 0.0450 5.6%
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
TWELVE MONTHS ENDED DECEMBER 31, 2000 AND 1999
(UNAUDITED)
INCREASE
In thousands, except per share amounts 2000 1999 (DECREASE)
- -------------------------------------------------------------------------------
TELEPHONE OPERATIONS
Operating revenues
Local service $ 408,538 353,534 15.6%
Network access 727,797 654,003 11.3%
Other 117,634 118,575 (0.8%)
- ----------------------------------------------------------------
1,253,969 1,126,112 11.4%
- ----------------------------------------------------------------
Operating expenses
Plant operations 290,062 251,704 15.2%
Customer operations 105,950 88,552 19.6%
Corporate and other 163,761 160,631 1.9%
Depreciation and amortization 317,906 273,666 16.2%
- ----------------------------------------------------------------
877,679 774,553 13.3%
- ----------------------------------------------------------------
Telephone operating income 376,290 351,559 7.0%
- ----------------------------------------------------------------
WIRELESS OPERATIONS
Operating revenues
Service revenues 428,747 411,492 4.2%
Equipment sales 14,822 10,777 37.5%
- ----------------------------------------------------------------
443,569 422,269 5.0%
- ----------------------------------------------------------------
Operating expenses
Cost of equipment sold 30,064 21,408 40.4%
System operations 69,641 56,866 22.5%
General, administrative and
customer service 78,087 79,569 (1.9%)
Sales and marketing 82,673 61,903 33.6%
Depreciation and amortization 65,239 68,593 (4.9%)
- ----------------------------------------------------------------
325,704 288,339 13.0%
- ----------------------------------------------------------------
Wireless operating income 117,865 133,930 (12.0%)
- ----------------------------------------------------------------
OTHER OPERATIONS
Operating revenues 148,388 128,288 15.7%
- ----------------------------------------------------------------
Operating expenses
Cost of sales and other 112,219 99,151 13.2%
Depreciation and amortization 4,911 6,557 (25.1%)
- ----------------------------------------------------------------
117,130 105,708 10.8%
- ----------------------------------------------------------------
Other operating income 31,258 22,580 38.4%
TOTAL OPERATING INCOME 525,413 508,069 3.4%
OTHER INCOME (EXPENSE)
Gain on sales of assets 20,593 62,808 (67.2%)
Interest expense (183,302) (150,557) 21.7%
Income from unconsolidated
cellular entities 26,986 27,675 (2.5%)
Minority interest (10,201) (27,913) (63.5%)
Other income and expense 6,696 9,190 (27.1%)
Income tax expense (154,711) (189,503) (18.4%)
- ----------------------------------------------------------------
NET INCOME $ 231,474 239,769 (3.5%)
================================================================
EARNINGS PER SHARE
Basic (1) $ 1.65 1.72 (4.1%)
Diluted (2) $ 1.63 1.70 (4.1%)
SHARES OUTSTANDING
Basic 140,069 138,848 0.9%
Diluted 141,864 141,432 0.3%
DIVIDENDS PER COMMON SHARE $ 0.1900 0.1800 5.6%
(1) Excluding the effects of asset divestitures and nonrecurring gains and
losses, basic earnings per share were $1.65 and $1.72 for 2000 and 1999,
respectively
(2) Excluding the effects of asset divestitures and nonrecurring gains and
losses, basic earnings per share were $1.63 and $1.70 for 2000 and 1999,
respectively
CenturyTel, Inc.
CONSOLIDATED STATEMENTS OF INCOME
TWELVE MONTHS ENDED DECEMBER 31, 2000 AND 1999
(UNAUDITED)
Excludes the effect of asset divestitures and
nonrecurring gains and losses INCREASE
In thousands, except per share amounts 2000 1999 (DECREASE)
- -------------------------------------------------------------------------------
TELEPHONE OPERATIONS
Operating revenues
Local service $ 408,538 339,123 20.5%
Network access 727,797 631,819 15.2%
Other 117,634 112,254 4.8%
- ----------------------------------------------------------------
1,253,969 1,083,196 15.8%
- ----------------------------------------------------------------
Operating expenses
Plant operations 290,062 239,691 21.0%
Customer operations 105,950 84,743 25.0%
Corporate and other 163,761 157,104 4.2%
Depreciation and amortization 317,906 263,169 20.8%
- ----------------------------------------------------------------
877,679 744,707 17.9%
- ----------------------------------------------------------------
Telephone operating income 376,290 338,489 11.2%
- ----------------------------------------------------------------
WIRELESS OPERATIONS
Operating revenues
Service revenues 428,735 398,676 7.5%
Equipment sales 14,740 10,242 43.9%
- ----------------------------------------------------------------
443,475 408,918 8.5%
- ----------------------------------------------------------------
Operating expenses
Cost of equipment sold 29,987 20,575 45.7%
System operations 69,541 54,518 27.6%
General, administrative and
customer service 78,087 77,409 0.9%
Sales and marketing 82,664 61,224 35.0%
Depreciation and amortization 65,155 65,982 (1.3%)
- ----------------------------------------------------------------
325,434 279,708 16.3%
- ----------------------------------------------------------------
Wireless operating income 118,041 129,210 (8.6%)
- ----------------------------------------------------------------
OTHER OPERATIONS
Operating revenues 144,623 114,222 26.6%
- ----------------------------------------------------------------
Operating expenses
Cost of sales and other 105,515 80,827 30.5%
Depreciation and amortization 4,387 3,911 12.2%
- ----------------------------------------------------------------
109,902 84,738 29.7%
- ----------------------------------------------------------------
Other operating income 34,721 29,484 17.8%
- ----------------------------------------------------------------
TOTAL OPERATING INCOME 529,052 497,183 6.4%
OTHER INCOME (EXPENSE)
Interest expense (182,890) (136,933) 33.6%
Income from unconsolidated
cellular entities 32,316 34,535 (6.4%)
Minority interest (10,201) (12,283) (17.0%)
Other income and expense 14,616 8,772 66.6%
Income tax expense (151,788) (151,676) 0.1%
- ----------------------------------------------------------------
NET INCOME $ 231,105 239,598 (3.5%)
================================================================
EARNINGS PER SHARE
Basic $ 1.65 1.72 (4.1%)
Diluted $ 1.63 1.70 (4.1%)
SHARES OUTSTANDING
Basic 140,069 138,848 0.9%
Diluted 141,864 141,432 0.3%
DIVIDENDS PER COMMON SHARE $ 0.1900 0.1800 5.6%
CenturyTel, Inc.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2000 AND DECEMBER 31, 1999
(UNAUDITED)
December 31, December 31,
2000 1999
- --------------------------------------------------------------------------------
(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 19,039 56,640
Other current assets 357,465 229,433
- --------------------------------------------------------------------------------
Total current assets 376,504 286,073
- --------------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT
Telephone 4,999,808 3,439,469
Wireless 522,684 472,725
Other 392,024 281,713
Accumulated depreciation (2,955,223) (1,937,449)
- --------------------------------------------------------------------------------
Net property, plant and equipment 2,959,293 2,256,458
- --------------------------------------------------------------------------------
INVESTMENTS AND OTHER ASSETS
Excess cost of net assets acquired 2,509,033 1,644,884
Other 548,460 517,992
- --------------------------------------------------------------------------------
Total investments and other assets 3,057,493 2,162,876
- --------------------------------------------------------------------------------
TOTAL ASSETS $ 6,393,290 4,705,407
================================================================================
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term debt and current maturities
of long-term debt $ 324,986 62,098
Other current liabilities 317,408 247,079
- --------------------------------------------------------------------------------
Total current liabilities 642,394 309,177
LONG-TERM DEBT 3,151,268 2,078,311
DEFERRED CREDITS AND OTHER LIABILITIES 567,549 469,927
STOCKHOLDERS' EQUITY 2,032,079 1,847,992
- --------------------------------------------------------------------------------
TOTAL LIABILITIES AND EQUITY $ 6,393,290 4,705,407
================================================================================
CAPITAL EXPENDITURES
TWELVE MONTHS ENDED DECEMBER 31, 2000 AND 1999
INC
2000 1999 (DEC)
- --------------------------------------------------------------------------------
(in thousands)
Telephone $ 275,523 233,512 18.0%
Wireless 58,468 58,760 (0.5%)
Other 115,546 97,708 18.3%
- ------------------------------------------------------------------
Total capital expenditures $ 449,537 389,980 15.3%
==================================================================
CAPITAL EXPENDITURES
THREE MONTHS ENDED DECEMBER 31, 2000 AND 1999
INC
2000 1999 (DEC)
- --------------------------------------------------------------------------------
(in thousands)
Telephone $ 117,682 88,334 33.2%
Wireless 19,504 14,498 34.5%
Other 29,670 50,150 (40.8%)
- ------------------------------------------------------------------
Total capital expenditures $ 166,856 152,982 9.1%
==================================================================
- --------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT:
January 30, 2001 Jeffrey S. Glover (318) 388-9648
jeff.glover@centurytel.com
CenturyTel Outlines Growth Initiatives and Financial Guidance for 2001
Monroe, LA. . . CenturyTel, Inc. (NYSE Symbol: CTL) announces its growth
initiatives and financial guidance for 2001.
CenturyTel expects total company revenues to increase approximately 16% to
19% and will likely range from $2.15 billion to $2.20 billion for 2001. It is
anticipated that operating cash flow will rise 14% to 18% and range from $1.04
billion to $1.08 billion. This anticipated increase represents an acceleration
in cash flow growth from the low teens range experienced in 2000 into the upper
teens range for 2001. CenturyTel believes total operating income will rise to
between $550 million and $600 million. The company anticipates fully diluted
earnings per share will range from $1.65 to $1.75 for the year. Cash earnings
per share will likely range from $2.07 to $2.17.
There are several factors which will affect 2001 earnings growth: (1)
estimated CLEC startup losses of $15 million; (2) additional interest expense
stemming from the Verizon acquisitions; (3) lower than anticipated telephone
revenues due in part to access rates in the state of Wisconsin; and (4) further
reductions in wireless roaming revenues.
"We are confident in our ability to drive incremental cash flows, reduce
debt, and enhance our earnings growth rate over time," Glen F. Post, III,
President and Chief Executive Officer, said. "We also expect to resolve the
access rate issues in Wisconsin by the end of the year as we are committed to
working with the Wisconsin Public Service Commission to obtain a fair solution."
CenturyTel anticipates first quarter 2001 revenues will likely range from
$510 to $525 million. Operating cash flow will likely range from $245 million to
$260 million. CenturyTel believes total operating income should be approximately
$130 million to $145 million. The company anticipates earnings per share will
range from $.34 to $.38 for the quarter. Cash earnings per share will likely
range from $.44 to $.48 for the first quarter 2001.
All amounts disclosed above exclude one time items.
Growth Initiatives:
o CenturyTel believes high-speed access will revolutionize the way people
communicate, conduct their business, and receive their entertainment. The
company's goal is to make DSL available in 70% to 80% of its local exchange
markets excluding the acquired Verizon lines. CenturyTel also plans to
deploy DSL in 50% to 60% of the Verizon markets.
o CenturyTel is focused on the continued integration of the Verizon access
lines and the deployment of new services such as caller ID, Voice Mail,
DSL, and dial-up Internet access in a number of the newly acquired markets.
o The company plans to continue to drive incremental revenue streams and grow
its customer base in existing markets.
o In its wireless markets, CenturyTel will continue to focus on offering
competitive rate plans with the goal of stimulating digital subscriber
growth.
o CenturyTel will continue to look for additional strategic acquisitions and
pursue nonstrategic asset sales where feasible to reduce debt, either of
which could impact our results.
"CenturyTel has an aggressive plan for driving strong long-term growth in
our markets," said Glen F. Post III, President and Chief Executive Officer. "Our
focus in 2001 is to continue to execute our growth initiatives and lay the
foundation for the future. We believe very strongly that the future for
CenturyTel lies in owning the high speed data relationship with our customers
and expanding into new markets."
In addition to historical information, this release includes 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 CenturyTel. 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 Company's ability to effectively manage its growth; including
integrating newly acquired businesses into our operations; hiring adequate
numbers of qualified staff and successfully upgrading our billing and other
information systems; the inherent risk of rapid technological change; the
effects of on-going changes in the regulation of the Company or the
communications industry generally; the effects of greater than anticipated
competition in the Company's markets; possible changes in the demand for, or
pricing of, the Company's products and services; the Company's ability to
successfully introduce new offerings on a timely and cost-effective basis;
higher than anticipated interest rates; and the effects of more general factors
such as changes in overall market 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, 1999. The information
contained in this release is as of January 30, 2001. The Company undertakes no
obligation to update or revise any of this information whether a result of new
information, future events or developments, or otherwise.
CenturyTel's management will be hosting a conference call at 4:00 P.M.
Central time to discuss fourth quarter earnings and the outlook for 2001.
Investors can access CenturyTel's earnings conference call and replay by
accessing the company's Web site at (www.centurytel.com).
CenturyTel, Inc. provides communications services including local exchange,
wireless, long distance, Internet access and data services to nearly three
million customers in 21 states. The company, headquartered in Monroe, Louisiana,
is publicly traded on the New York Stock Exchange under the symbol CTL.
CenturyTel is the 8th largest local exchange telephone company, based on access
lines, and the 8th largest cellular company, based on population equivalents
owned, in the United States.
Visit CenturyTel's corporate Web site at (www.centurytel.com).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CenturyTel, Inc.
By: /s/ Neil A. Sweasy
-------------------------
Neil A. Sweasy
Vice President and Controller