-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Hk0wjzibWbkFh6UPmZXJbdKwrD8Y03cJGqJB+De19z+32Lw/FCi2rfxT8Au+/NDR xmy5aIEFBhxPlbqlEXxWOg== 0000018926-03-000002.txt : 20030131 0000018926-03-000002.hdr.sgml : 20030131 20030131094812 ACCESSION NUMBER: 0000018926-03-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021231 ITEM INFORMATION: Other events FILED AS OF DATE: 20030131 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTURYTEL INC CENTRAL INDEX KEY: 0000018926 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 720651161 STATE OF INCORPORATION: LA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07784 FILM NUMBER: 03533303 BUSINESS ADDRESS: STREET 1: P O BOX 4065 STREET 2: 100 CENTURYTEL DR CITY: MONROE STATE: LA ZIP: 71203 BUSINESS PHONE: 3183889000 MAIL ADDRESS: STREET 1: 100 CENTURYTEL DR STREET 2: P O BOX 4065 CITY: MONROE STATE: LA ZIP: 71203 FORMER COMPANY: FORMER CONFORMED NAME: CENTRAL TELEPHONE & ELECTRONICS CORP DATE OF NAME CHANGE: 19720512 FORMER COMPANY: FORMER CONFORMED NAME: CENTURY TELEPHONE ENTERPRISES INC DATE OF NAME CHANGE: 19920703 8-K 1 earnings.txt FOURTH QTR. EARNINGS RELEASE 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, 2003 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, 2003, CenturyTel, Inc. issued a press release announcing its fourth quarter 2002 consolidated operating results and financial guidance for 2003. The entire text of the release is reproduced below: FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT: January 30, 2003 Media: Patricia Cameron 318.388.9674 patricia.cameron@centurytel.com Investors: Tony Davis 318.388.9525 tony.davis@centurytel.com CenturyTel Achieves Strong Fourth Quarter Results - ------------------------------------------------- Monroe, LA. . . CenturyTel, Inc. (NYSE Symbol: CTL) announces operating results for fourth quarter 2002. o Revenues from continuing operations increased 34.8% to $585.9 million. o Earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA), excluding nonrecurring items, rose 39.5% to $306.2 million. o Income from continuing operations, excluding nonrecurring items, climbed 67.2% to $84.0 million. o Diluted earnings per share, excluding nonrecurring items, increased 13.5% to $.59. o Free cash flow, excluding nonrecurring items, was $79.9 million.
- ---------------------------------------------------------------------------------------------- Fourth Quarter Highlights (Excluding nonrecurring items) (In thousands, except per share Quarter Ended Quarter Ended % Change and customer amounts) 12/31/02 12/31/01 - ---------------------------------------------------------------------------------------------- Revenues from continuing operations (1) $ 585,879 $ 434,679 34.8% EBITDA from continuing operations (2) $ 306,192 $ 219,485 39.5% Income from continuing operations (2) $ 83,964 $ 50,221 (3) 67.2% Net Income $ 85,074 $ 74,386 (3) 14.4% Diluted Earnings Per Share from continuing operations (2) $ .59 $ .35 (3) 68.6% Diluted Earnings Per Share $ .59 $ .52 (3) 13.5% Average Diluted Shares Outstanding 143,380 $ 142,427 .7% Telephone Revenues (1) $ 519,427 $ 388,853 33.6% Other Operations Revenues $ 66,452 $ 45,826 45.0% - ---------------------------------------------------------------------------------------------- Telephone Access Lines (1) 2,414,564 1,797,643 34.3% Long Distance Customers 648,797 465,872 39.3% - ----------------------------------------------------------------------------------------------
(1) Reflects the acquisition of access lines in 2002 that generated $130.0 million of telephone revenues during the fourth quarter. (2) Includes corporate overheads previously allocated to discontinued operations. (3) As adjusted to reflect the after-tax effect of eliminating goodwill amortization in accordance with SFAS 142. "The fourth quarter results include a full quarter's impact of the Alabama and Missouri properties acquired from Verizon during the third quarter," Glen F. Post, III, chairman and chief executive officer, said. "These markets are making strong contributions to revenue and operating cash flow and we are pleased with our early success in offering CenturyTel's bundled services in these markets." Consolidated revenues from continuing operations for the fourth quarter rose 34.8% to $585.9 million from $434.7 million. EBITDA from continuing operations, excluding nonrecurring items, grew to $306.2 million from $219.5 million, representing a consolidated EBITDA margin of 52.3% during the quarter. Income from continuing operations for the quarter, excluding nonrecurring items, increased 67.2% to $84.0 million from $50.2 million (as adjusted) in fourth quarter 2001. Diluted earnings per share from continuing operations, excluding nonrecurring items, increased 68.6% to $.59 from $.35 (as adjusted). Diluted earnings per share, excluding nonrecurring items, increased 13.5% to $.59 from $.52 (as adjusted). Telephone revenues grew 33.6% to $519.4 million during the quarter, compared with $388.9 million in fourth quarter 2001. Increases in telephone revenues and telephone operating expenses were primarily due to the Verizon acquisitions. In our legacy markets, growth in vertical services and interstate revenues were offset by declines in intrastate access and toll revenues. Telephone operating income increased 35.8% to $176.8 million from $130.2 million (as adjusted), and telephone EBITDA rose 33.3% to $289.8 million from $217.4 million a year ago. CenturyTel's fourth quarter telephone EBITDA margin was 55.8% while the operating income margin was 34.0%. Other Operations revenues grew 45.0% to $66.5 million during fourth quarter 2002, compared with $45.8 million in fourth quarter 2001. CenturyTel's long distance revenues increased $10.5 million, or 34.7%, to $40.7 million. CenturyTel now serves 648,800 long distance customers. Internet revenues increased 44.1% to $16.4 million in fourth quarter 2002 from $11.4 million in fourth quarter 2001. The Internet business generated operating cash flow of $800,000 for the quarter compared to negative operating cash flow of $1.4 million for the fourth quarter 2001. CenturyTel CLEC revenues increased $4.2 million, principally as a result of the acquisition of CLEC operations in February 2002. "The deployment of long distance service to our newly acquired customers in Alabama and Missouri has been very successful as reflected in our 15.9% long distance penetration rate for those properties in less than six months," Post said. "Across all our markets, we added almost 64,000 long distance customers during the quarter, a record number for CenturyTel." For fourth quarter 2002, in accordance with generally accepted accounting principles (GAAP), the Company reported net income of $44.3 million, or $.31 per diluted share, compared to net income of $63.8 million (as adjusted), or $.45 per diluted share in fourth quarter 2001. Fourth quarter 2002 reflects a $39.0 million after-tax charge associated with the redemption on October 15, 2002, of the Company's $400 million Series I remarketable senior notes. See the accompanying financial information for additional nonrecurring items that affected the periods ending December 31, 2002 and 2001. For the full year 2002, income from continuing operations, excluding nonrecurring items, increased 40.7% to $244.9 million from $174.1 million in 2001 (as adjusted) and diluted earnings per share from continuing operations, excluding nonrecurring items, increased 40.2% to $1.71 from $1.22 (as adjusted). Consolidated revenues from continuing operations, excluding nonrecurring items, increased 17.9% to $1.980 billion from $1.680 billion while EBITDA, excluding non-recurring items, was $1.012 billion compared to $840.4 million a year ago, a 20.4% increase. Diluted earnings per share, excluding non-recurring items, was $2.27 for 2002 compared to $1.98 for 2001 (as adjusted). Included in the $2.27 for 2002 is a contribution of approximately $.08 related to the discontinuation of wireless depreciation due to the accounting treatment of the Company's wireless business as discontinued operations effective March 19, 2002. For the year 2002, prepared in accordance with GAAP, the Company reported net income of $801.6 million, or $5.61 per diluted share, compared to net income of $399.3 million, or $2.81 per diluted share for the year 2001 (as adjusted). Guidance for 2003. Giving effect to a full year's operations of the Verizon properties, anticipated increases in pension expense and pre- and post-retirement medical costs, and anticipated amortization expense and operating costs as we convert to our new billing and customer care system, CenturyTel expects diluted earnings per share to be in the range of $2.05 to $2.15 for the full year 2003. This compares to diluted earnings per share from continuing operations (which excludes our discontinued wireless operations) for the full year 2002 of $1.71 per share. For first quarter 2003, CenturyTel expects total revenues of $568 million to $583 million, operating cash flow of $285 million to $295 million, and diluted earnings per share of $.49 to $.53. All these figures exclude nonrecurring items. 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 successfully integrating newly acquired businesses into its operations, hiring adequate numbers of qualified staff and successfully upgrading its 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; the Company's ability to collect its receivables from financially troubled communications companies; 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, 2001. The information contained in this release is as of January 30, 2003. The Company undertakes no obligation to update or revise any of this information whether as a result of new information, future events or developments, or otherwise. CenturyTel's management will host a conference call at 10:30 A.M. Central time today. Interested parties can access the call by dialing 800.729.6845 and the call will be accessible for replay by calling 800.642.1687 and entering the conference-id number: 7493017. Investors can also listen to 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, long distance, Internet access and data services to more than 3 million customers in 22 states. The company, headquartered in Monroe, Louisiana, is publicly traded on the New York Stock Exchange under the symbol CTL, and is included in the S&P 500 Index. CenturyTel is the 8th largest local exchange telephone company, based on access lines, 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, 2002 AND 2001 (UNAUDITED)
Three months ended December 31, 2002 Three months ended December 31, 2001 ------------------------------------ ------------------------------------ As adjusted As adjusted Increase Less excluding Less excluding (decrease) non- non- non- non- Increase excluding In thousands, except As recurring recurring As recurring recurring (decrease) nonrecurring per share amounts reported items items reported items items as reported items ----------------------------------- ------------------------------------ --------------------------- TELEPHONE OPERATIONS Operating revenues Local service $ 186,248 - 186,248 124,246 - 124,246 49.9% 49.9% Network access 285,978 - 285,978 228,589 - 228,589 25.1% 25.1% Other 47,201 - 47,201 36,018 - 36,018 31.0% 31.0% -------------------------------------------------------------------------- 519,427 - 519,427 388,853 - 388,853 33.6% 33.6% -------------------------------------------------------------------------- Operating expenses Plant operations 127,957 - 127,957 94,486 - 94,486 35.4% 35.4% Customer operations 45,018 - 45,018 30,861 - 30,861 45.9% 45.9% Corporate and other 56,655 - 56,655 46,154 - 46,154 22.8% 22.8% Depreciation and amortization 112,980 - 112,980 101,660 - 101,660 11.1% 11.1% -------------------------------------------------------------------------- 342,610 - 342,610 273,161 - 273,161 25.4% 25.4% -------------------------------------------------------------------------- Telephone operating income 176,817 - 176,817 115,692 - 115,692 52.8% 52.8% -------------------------------------------------------------------------- OTHER OPERATIONS Operating revenues Long distance 40,665 - 40,665 30,199 - 30,199 34.7% 34.7% Internet 16,402 - 16,402 11,379 - 11,379 44.1% 44.1% Other 9,385 - 9,385 4,248 - 4,248 120.9% 120.9% -------------------------------------------------------------------------- 66,452 - 66,452 45,826 - 45,826 45.0% 45.0% -------------------------------------------------------------------------- Operating expenses Cost of sales and other 49,258 1,929 (1) 47,329 37,870 - 37,870 30.1% 25.0% Depreciation and amortization 4,901 - 4,901 2,515 - 2,515 94.9% 94.9% -------------------------------------------------------------------------- 54,159 1,929 52,230 40,385 - 40,385 34.1% 29.3% -------------------------------------------------------------------------- Other operating income 12,293 (1,929) 14,222 5,441 - 5,441 125.9% 161.4% -------------------------------------------------------------------------- Corporate overhead costs allocable to discontinued operations - - - (5,337) - (5,337) (100.0%) (100.0%) -------------------------------------------------------------------------- TOTAL OPERATING INCOME 189,110 (1,929) 191,039 115,796 - 115,796 63.3% 65.0% OTHER INCOME (EXPENSE) Interest expense (57,019) - (57,019) (52,024) - (52,024) 9.6% 9.6% Other income and expense (63,458) (60,730)(2) (2,728) (3,486) (3,000)(4) (486) 1,720.4% 461.3% Income tax expense (25,398) 21,930 (3) (47,328) (23,629) 1,050 (5) (24,679) 7.5% 91.8% -------------------------------------------------------------------------- INCOME FROM CONTINUING OPERATIONS 43,235 (40,729) 83,964 36,657 (1,950) 38,607 17.9% 117.5% DISCONTINUED OPERATIONS, NET OF TAX 1,110 - 1,110 13,106 (8,615)(6) 21,721 (91.5%) (94.9%) -------------------------------------------------------------------------- NET INCOME $ 44,345 (40,729) 85,074 49,763 (10,565) 60,328 (10.9%) 41.0% Add: After tax effect of goodwill amorti- zation - - - 14,058 - 14,058 (100.0%) (100.0%) -------------------------------------------------------------------------- NET INCOME, as adjusted $ 44,345 (40,729) 85,074 63,821 (10,565) 74,386 (30.5%) 14.4% ========================================================================== BASIC EARNINGS PER SHARE From continuing operations $ 0.30 (0.29) 0.59 0.26 (0.01) 0.27 15.4% 118.5% From continuing operations, as adjusted $ 0.30 (0.29) 0.59 0.34 (0.01) 0.36 (11.8%) 63.9% From discontinued operations $ 0.01 - 0.01 0.09 (0.06) 0.15 (88.9%) (93.3%) From discontinued operations, as adjusted $ 0.01 - 0.01 0.11 (0.06) 0.17 (90.9%) (94.1%) Basic earnings per share $ 0.31 (0.29) 0.60 0.35 (0.07) 0.43 (11.4%) 39.5% Basic earnings per share, as adjusted $ 0.31 (0.29) 0.60 0.45 (0.07) 0.53 (31.1%) 13.2% DILUTED EARNINGS PER SHARE From continuing operations $ 0.30 (0.28) 0.59 0.26 (0.01) 0.27 15.4% 118.5% From continuing operations, as adjusted $ 0.30 (0.28) 0.59 0.34 (0.01) 0.35 (11.8%) 68.6% From discontinued operations $ 0.01 - 0.01 0.09 (0.06) 0.15 (88.9%) (93.3%) From discontinued operations, as adjusted $ 0.01 - 0.01 0.11 (0.06) 0.17 (90.9%) (94.1%) Diluted earnings per share $ 0.31 (0.28) 0.59 0.35 (0.07) 0.42 (11.4%) 40.5% Diluted earnings per share, as adjusted $ 0.31 (0.28) 0.59 0.45 (0.07) 0.52 (31.1%) 13.5% SHARES OUTSTANDING Basic 142,465 142,465 140,909 140,909 1.1% 1.1% Diluted 143,380 143,380 142,427 142,427 0.7% 0.7% DIVIDENDS PER COMMON SHARE $ 0.0525 0.0525 0.0500 0.0500 5.0% 5.0%
NONRECURRING ITEMS (1) - Write off costs associated with abandoned project (2) - Redemption premium on remarketable notes, net of unamortized premium ($59.9 million), and write-off of nonoperating investment ($781,000) (3) - Tax effect of items (1) and (2) (4) - Costs to defend unsolicited takeover proposal (5) - Tax effect of item (4) (6) - Unfavorable nonrecurring charge in cellular partnership in which the Company owned a minority interest, net of tax CenturyTel, Inc. CONSOLIDATED STATEMENTS OF INCOME YEAR ENDED DECEMBER 31, 2002 AND 2001 (UNAUDITED)
Year ended December 31, 2002 Year ended December 31, 2001 ---------------------------------- ---------------------------------- As adjusted As adjusted Increase Less excluding Less excluding (decrease) non- non- non- non- Increase excluding In thousands, except As recurring recurring As recurring recurring (decrease) nonrecurring per share amounts reported items items reported items items as reported items ---------------------------------- ---------------------------------- --------------------------- TELEPHONE OPERATIONS Operating revenues Local service $ 604,580 - 604,580 491,529 - 491,529 23.0% 23.0% Network access 972,303 (7,645)(1) 979,948 874,458 - 874,458 11.2% 12.1% Other 156,709 - 156,709 139,746 - 139,746 12.1% 12.1% -------------------------------------------------------------------------- 1,733,592 (7,645) 1,741,237 1,505,733 - 1,505,733 15.1% 15.6% -------------------------------------------------------------------------- Operating expenses Plant operations 433,187 - 433,187 380,466 2,000 (8) 378,466 13.9% 14.5% Customer operations 148,502 - 148,502 117,080 - 117,080 26.8% 26.8% Corporate and other 211,924 15,000 (2) 196,924 186,483 - 186,483 13.6% 5.6% Depreciation and amortization 396,866 - 396,866 398,284 - 398,284 (0.4%) (0.4%) -------------------------------------------------------------------------- 1,190,479 15,000 1,175,479 1,082,313 2,000 1,080,313 10.0% 8.8% -------------------------------------------------------------------------- Telephone operating income 543,113 (22,645) 565,758 423,420 (2,000) 425,420 28.3% 33.0% -------------------------------------------------------------------------- OTHER OPERATIONS Operating revenues Long distance 146,536 - 146,536 117,363 - 117,363 24.9% 24.9% Internet 58,665 - 58,665 39,057 - 39,057 50.2% 50.2% Other 33,203 - 33,203 17,351 - 17,351 91.4% 91.4% -------------------------------------------------------------------------- 238,404 - 238,404 173,771 - 173,771 37.2% 37.2% -------------------------------------------------------------------------- Operating expenses Cost of sales and other 180,076 1,929 (3) 178,147 142,919 - 142,919 26.0% 24.6% Depreciation and amortization 14,760 - 14,760 8,754 - 8,754 68.6% 68.6% -------------------------------------------------------------------------- 194,836 1,929 192,907 151,673 - 151,673 28.5% 27.2% -------------------------------------------------------------------------- Other operating income 43,568 (1,929) 45,497 22,098 - 22,098 97.2% 105.9% -------------------------------------------------------------------------- Corporate overhead costs allocable to discontinued operations (11,275) - (11,275) (20,213) - (20,213) (44.2%) (44.2%) -------------------------------------------------------------------------- TOTAL OPERATING INCOME 575,406 (24,574) 599,980 425,305 (2,000) 427,305 35.3% 40.4% OTHER INCOME (EXPENSE) Nonrecurring gains and losses 3,709 3,709 (4) - 33,043 33,043 (9) - (88.8%) - Interest expense (221,845) - (221,845) (225,523) - (225,523) (1.6%) (1.6%) Other income and expense (63,814) (63,730)(5) (84) 31 (6,000)(10) 6,031 (205,951.6%) (101.4%) Income tax expense (103,537) 29,608 (6) (133,145) (88,710) (8,666)(11) (80,044) 16.7% 66.3% -------------------------------------------------------------------------- INCOME FROM CONTINUING OPERATIONS 189,919 (54,987) 244,906 144,146 16,377 127,769 31.8% 91.7% DISCONTINUED OPERATIONS, NET OF TAX 611,705 531,625 (7) 80,080 198,885 100,993 (12) 97,892 207.6% (18.2%) ------------------------------------------------------------------------- NET INCOME $ 801,624 476,638 324,986 343,031 117,370 225,661 133.7% 44.0% Add: After tax effect of goodwill amorti- zation - - - 56,266 - 56,266 (100.0%) (100.0%) ------------------------------------------------------------------------- NET INCOME, as adjusted $ 801,624 476,638 324,986 399,297 117,370 281,927 100.8% 15.3% ========================================================================= BASIC EARNINGS PER SHARE From continuing operations $ 1.34 (0.39) 1.73 1.02 0.12 0.90 31.4% 92.2% From continuing operations, as adjusted $ 1.34 (0.39) 1.73 1.35 0.12 1.23 (0.7%) 40.7% From discontinued operations $ 4.32 3.75 0.57 1.41 0.72 0.70 206.4% (18.6%) From discontinued operations, as adjusted $ 4.32 3.75 0.57 1.48 0.72 0.77 191.9% (26.0%) Basic earnings per share $ 5.66 3.37 2.29 2.43 0.83 1.60 132.9% 43.1% Basic earnings per share, as adjusted $ 5.66 3.37 2.29 2.83 0.83 2.00 100.0% 14.5% DILUTED EARNINGS PER SHARE From continuing operations $ 1.33 (0.38) 1.71 1.01 0.12 0.90 31.7% 90.0% From continuing operations, as adjusted $ 1.33 (0.38) 1.71 1.34 0.12 1.22 (0.7%) 40.2% From discontinued operations $ 4.28 3.72 0.56 1.40 0.71 0.69 205.7% (18.8%) From discontinued operations, as adjusted $ 4.28 3.72 0.56 1.47 0.71 0.76 191.2% (26.3%) Diluted earnings per share $ 5.61 3.34 2.27 2.41 0.82 1.59 132.8% 42.8% Diluted earnings per share, as adjusted $ 5.61 3.34 2.27 2.81 0.82 1.98 99.6% 14.6% SHARES OUTSTANDING Basic 141,613 141,613 140,743 140,743 0.6% 0.6% Diluted 142,879 142,879 142,307 142,307 0.4% 0.4% DIVIDENDS PER COMMON SHARE $ 0.2100 0.2100 0.2000 0.2000 5.0% 5.0%
NONRECURRING ITEMS (1) - Refunds of access charges to interexchange carriers (2) - Reserve for uncollectible receivables, primarily WorldCom (3) - Write off costs associated with abandoned project (4) - Gain on sale of PCS license (5) - Redemption premium on remarketable notes, net of unamortized premium ($59.9 million); costs to defend unsolicited takeover proposal ($3.0 million); and write-off of nonoperating investment ($781,000) (6) - Tax effect of items (1) through (5) (7) - Gain on sale of wireless operations ($551.4 million after-tax), net of write down of wireless portion of billing system ($19.8 million after-tax) (8) - Expenses related to ice storm (9) - Gain on sale of assets ($58.5 million), net of write down of nonoperating investments ($25.5 million) (10) - Costs to defend unsolicited takeover proposal (11) - Tax effect of items (8) through (10) (12) - Gain on sale of PCS licences ($107.5 million after-tax), net of unfavorable nonrecurring charge in cellular partnership in which the Company owned a minority interest ($6.5 million after-tax) CenturyTel, Inc. CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2002 AND DECEMBER 31, 2001 (UNAUDITED)
DEC. 31, DEC. 31, 2002 2001 ---------------------------- (in thousands) ASSETS CURRENT ASSETS Cash and cash equivalents $ 3,661 3,496 Other current assets 292,241 226,417 ---------------------------- Total current assets 295,902 229,913 ---------------------------- PROPERTY, PLANT AND EQUIPMENT Telephone 6,145,283 5,292,255 Other 521,292 446,920 Accumulated depreciation (3,337,547) (3,003,033) ---------------------------- Net property, plant and equipment 3,329,028 2,736,142 ---------------------------- INVESTMENTS AND OTHER ASSETS Excess cost of net assets acquired 3,629,898 2,087,158 Other 503,775 420,043 ---------------------------- Total investments and other assets 4,133,673 2,507,201 ---------------------------- ASSETS HELD FOR SALE 11,805 845,428 ---------------------------- TOTAL ASSETS $ 7,770,408 6,318,684 ============================ LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term debt and current maturities of long-term debt $ 70,737 1,008,834 Other current liabilities 317,367 230,048 ---------------------------- Total current liabilities 388,104 1,238,882 LONG-TERM DEBT 3,578,132 2,087,500 DEFERRED CREDITS AND OTHER LIABILITIES 716,168 506,052 LIABILITIES RELATED TO ASSETS HELD FOR SALE - 148,870 STOCKHOLDERS' EQUITY 3,088,004 2,337,380 ---------------------------- TOTAL LIABILITIES AND EQUITY $ 7,770,408 6,318,684 ============================
CAPITAL EXPENDITURES YEAR ENDED DECEMBER 31, 2002 AND 2001
Year Ended December 31, Increase 2002 2001 (Decrease) ------------------------------------------ (in thousands) CAPITAL EXPENDITURES Telephone $ 319,536 351,010 (9.0%) Wireless (discontinued operations) 27,242 71,212 (61.7%) Other 66,731 84,505 (21.0%) ----------------------------- Total capital expenditures $ 413,509 506,727 (18.4%) ============================= CAPITAL EXPENDITURES THREE MONTHS ENDED DECEMBER 31, 2002 AND 2001 Three Months Ended December 31, Increase 2002 2001 (Decrease) ------------------------------------------ (in thousands) CAPITAL EXPENDITURES Telephone $ 98,209 102,179 (3.9%) Wireless (discontinued operations) - 18,690 (100.0%) Other 17,284 1,603 978.2% ------------------------------------------ Total capital expenditures $ 115,493 122,472 (5.7%) ==========================================
--------------------------- 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. January 31, 2003 By: /s/ Neil A. Sweasy ---------------------- Neil A. Sweasy Vice President and Controller -----END PRIVACY-ENHANCED MESSAGE-----