Exhibit 99.2
FOR IMMEDIATE RELEASE: FOR MORE INFORMATION CONTACT:
February 3, 2005 Media: Annmarie Sartor 318.388.9671
annmarie.sartor@centurytel.com
Investors: Tony Davis 318.388.9525
tony.davis@centurytel.com
CenturyTel announces $200 million stock repurchase program; signs definitive
agreement to buy metro fiber networks
MONROE, La. . . CenturyTel, Inc. (NYSE: CTL) announced today that it has entered
into a definitive agreement to purchase metro fiber networks in 16 markets,
primarily in the central United States, from KMC Telecom Holdings, Inc. (KMC)
for $65 million cash, subject to purchase price adjustments.
CenturyTel anticipates completing this transaction by third quarter 2005,
subject to regulatory approval. The transition of these markets is expected to
be seamless to KMC's existing customers. The transaction is anticipated to be
breakeven, or slightly dilutive including transition costs, for the first 12
months of operation and accretive to earnings per share thereafter.
CenturyTel will operate these networks and related assets through its LightCore
subsidiary, which provides fiber optic services to national and regional
communications carriers. The KMC networks being acquired include almost 1,000
lit route miles of metro fiber and more than 100 points of presence (POPs), and
will bring LightCore's total network to more than 9,700 lit route miles of fiber
and 618 total POPs.
"This acquisition advances CenturyTel's strategic goal of continuing to grow and
diversify our revenue streams by becoming a dominant fiber transport provider to
smaller cities and rural areas in and near our local exchange and LightCore
markets," Glen F. Post, III, CenturyTel chairman and CEO, said. "It also
positions LightCore to grow the enterprise and government segments of its
customer base."
With this purchase, CenturyTel will add key markets to its LightCore footprint
across Alabama, Indiana, Kansas, Louisiana, Michigan, Minnesota, Mississippi,
Ohio, Tennessee, Texas and Wisconsin.
Stock Repurchase Program
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CenturyTel also announced today that its board of directors approved a stock
repurchase program authorizing it to repurchase up to an aggregate of $200
million of either its common stock or convertible equity units.
Repurchases under the program may be made in the open market or in privately
negotiated transactions at such times and in such amounts as management deems
appropriate, depending on market conditions and other factors. The program will
expire in December 2005, unless extended by CenturyTel's board of directors. The
new program follows CenturyTel's $400 million repurchase program, which was
completed during 2004.
"CenturyTel's free cash flow generation and strong balance sheet enable us to
return value to shareholders through another stock repurchase program while
continuing to grow our business through this strategic acquisition," Post said.
As of December 31, 2004, CenturyTel had outstanding approximately 132.4 million
common shares and $500 million stated value of convertible equity units.
Wednesday's closing prices of CenturyTel's common stock and convertible equity
units (CUSIP 156700403) were $34.05 and $25.45 per share, respectively.
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: Company's ability to obtain governmental approvals and
third-party consents in a timely manner; the possibility of unforeseen near-term
cash requirements; the ability to manage and maintain key customer
relationships; 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, hiring
adequate numbers of qualified staff, and successfully upgrading its billing and
other information systems; 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;
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 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.
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