-----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, SZcgmAqaO2JGKyVBTlAm9eiPHavmm1bAaQw62N4fODTkZ0wSM6d9AKxHQUKmkGX6 nUwu2O9YAlUdNZfDfZeYQg== 0000018926-99-000004.txt : 19990503 0000018926-99-000004.hdr.sgml : 19990503 ACCESSION NUMBER: 0000018926-99-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990331 ITEM INFORMATION: FILED AS OF DATE: 19990430 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTURY TELEPHONE ENTERPRISES 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: SEC FILE NUMBER: 001-07784 FILM NUMBER: 99606522 BUSINESS ADDRESS: STREET 1: P O BOX 4065 STREET 2: 100 CENTURY PARK DR CITY: MONROE STATE: LA ZIP: 71203 BUSINESS PHONE: 3188889600 MAIL ADDRESS: STREET 1: 100 CENTURY PARK 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 8-K 1 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) April 27, 1999 CENTURY TELEPHONE ENTERPRISES, 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 Century Park Drive, Monroe, Louisiana 71203 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (318) 388-9500 Item 5. Other Events The following press release was issued by Century Telephone Enterprises. Inc. on April 27, 1999: FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT: April 27, 1999 Jeffrey S. Glover (318) 388-9648 jeff.glover@centurytel.com CenturyTel's First Quarter Earnings from Operations Rise 30 Percent ------------------------------------------------------------------- Monroe, LA. . . CenturyTel (Century Telephone Enterprises, Inc., NYSE Symbol: CTL) announces operating results for first quarter 1999. o Revenues climbed 11.4% to $414.3 million. o Net income, excluding gain on asset sales, jumped 29.9% to $54.4 million. o Diluted earnings per share, excluding gain on asset sales, rose 30.0% to $.39. o Earnings before interest, taxes, depreciation, amortization and gain on asset sales advanced 16.6% to $226.3 million. First Quarter Highlights (Dollars, except per share data, and shares in thousands) - ------------------------------------------------------------------------------- Quarter Ended Quarter Ended % Change 3/31/99 3/31/98 - ------------------------------------------------------------------------------- Revenues $ 414,256 $ 371,720 11.4% EBITDA (1) $ 226,319 $ 194,164 16.6% Net Income (2) $ 54,372 $ 41,871 29.9% Diluted Earnings Per Share (2)(3) $ .39 $ .30 30.0% Average Diluted Shares Outstanding (3) 141,028 139,376 1.2% Telephone Revenues $ 292,961 $ 259,813 12.8% Cellular Revenues $ 98,471 $ 94,166 4.6% Other Operations Revenues $ 22,824 $ 17,741 28.7% - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- Telephone Access Lines 1,365,205 1,220,683 11.8% Cellular Units in Majority-Owned Markets 638,992 576,397 10.9% - ------------------------------------------------------------------------------- (1) Earnings before interest, taxes, depreciation, amortization and gain on asset sales (2) Excludes after-tax gain on asset sales of $6.7 million, or $.04 per share, in first quarter 1999 and $15.8 million, or $.11 per share, in first quarter 1998 (3) Reflects a three-for-two stock split effected as a stock dividend distributed March 31, 1999 ------------------------------------------------------------ "We are pleased with the strong customer growth achieved in CenturyTel's core businesses during the first quarter," Glen F. Post, III, President and Chief Executive Officer, said. "Annualized internal access line growth was 5.5% during the quarter, and cellular net additions more than doubled from first quarter 1998, surpassing 14,800 units. CenturyTel's financial results reflect excellent cash flow growth fueled by margin expansion in both our wireline and wireless operations." ------------------------------------------------------------ Net income excluding gain on asset sales for the quarter climbed 29.9% to ---------- $54.4 million from $41.9 million in first quarter 1998. Diluted earnings per share, excluding gain on asset sales, increased 30.0% to $.39 from $.30, and consolidated revenues rose 11.4% to $414.3 million from $371.7 million. Earnings before interest, taxes, depreciation, amortization and gain on asset sales (EBITDA) grew to $226.3 million from $194.2 million, a 16.6% increase. CenturyTel achieved a consolidated EBITDA margin of 54.6% during the quarter. Telephone revenues grew 12.8% to $293.0 million during the quarter,compared ------------------ with $259.8 million in first quarter 1998. Telephone operating income increased 24.0%, reaching $95.3 million from $76.8 million, and operating cash flow rose 18.9% to $167.1 million from $140.6 million a year ago. The fourth quarter 1998 purchase of telephone access lines in Wisconsin from Ameritech contributed $11.2 million to telephone revenues during the quarter. CenturyTel's first quarter telephone operating cash flow margin was 57.0% while the operating income margin was 32.5%. Internet operations continued to show strong growth as Internet revenues increased by 60.0% over the prior year. "Demand for second lines, call management features and data services continues to aid the strong financial performance in our wireline operations," Post said. Cellular revenues grew 4.6% to $98.5 million in first quarter 1999, ------------------ compared with $94.2 million in first quarter 1998. Cellular operating income advanced 2.5%, reaching $30.4 million from $29.7 million, and operating cash flow climbed 7.7% to $47.6 million from $44.2 million a year ago. CenturyTel's first quarter cellular operating cash flow margin was 48.4% (49.6% based on service revenues), and operating income margin was 30.9% (31.7% based on service revenues). Average monthly cellular service revenue per user (ARPU) was $51 during first quarter 1999, a 5.6% decrease from $54 a year ago. Cellular net additions were more than 14,800 for the quarter, while the average monthly churn rate was 2.0%. "CenturyTel's wireless customer growth for the quarter was enhanced by the successful expansion of our prepaid and digital products combined with low customer churn levels," Post said. Revenues from other operations grew 28.7% to $22.8 million during first ------------------------------ quarter 1999, compared with $17.7 million in first quarter 1998. CenturyTel now serves more than 240,000 long distance customers, adding more than 15,000 during the quarter. "We are pleased with the increase in long distance customers as we continue to experience strong customer demand for a bundled product offering," Post said. 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 effects of ongoing deregulation in the telecommunications industry; 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; the risks inherent in rapid technological change; the Company's ability to effectively manage its growth, including integrating newly-acquired properties into the Company's operations; the success and expense of the remediation efforts of the Company and its vendors in achieving year 2000 compliance; 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, 1998. CenturyTel (Century Telephone Enterprises, Inc.) provides integrated communications services including local exchange, wireless, long distance, Internet access and security services to more than two 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 9th largest local exchange telephone company, based on access lines, and the 10th largest cellular company, based on population equivalents owned, in the United States. Visit CenturyTel's corporate website at (www.centurytel.com CENTURY TELEPHONE ENTERPRISES, INC. CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS ENDED MARCH 31, 1999 AND 1998 (UNAUDITED) INCREASE In thousands,except per share amounts 1999 1998 (DECREASE) ------------------------- -------- TELEPHONE OPERATIONS Operating revenues Local service $ 90,657 78,126 16.0% Network access 167,155 151,178 10.6% Other 35,149 30,509 15.2% ------------------------- 292,961 259,813 12.8% ------------------------- Operating expenses Plant operations 67,022 56,659 18.3% Customer operations 21,894 22,816 (4.0%) Corporate and other 36,919 39,783 (7.2%) Depreciation and amortization 71,828 63,712 12.7% ------------------------- 197,663 182,970 8.0% ------------------------- Telephone operating income 95,298 76,843 24.0% ------------------------- CELLULAR OPERATIONS Operating revenues Service revenues 95,976 92,098 4.2% Equipment sales 2,495 2,068 20.6% ------------------------- 98,471 94,166 4.6% ------------------------- Operating expenses Cost of equipment sold 4,381 3,696 18.5% System operations 13,303 14,252 (6.7%) General, administrative and customer service 19,160 18,381 4.2% Sales and marketing 14,013 13,642 2.7% Depreciation and amortization 17,231 14,540 18.5% ------------------------- 68,088 64,511 5.5% ------------------------- Cellular operating income 30,383 29,655 2.5% ------------------------- OTHER OPERATIONS Operating revenues 22,824 17,741 28.7% ------------------------- Operating expenses Cost of sales and other 16,960 13,165 28.8% Depreciation and amortization 922 942 (2.1%) ------------------------- 17,882 14,107 26.8% ------------------------- Other operating income 4,942 3,634 36.0% ------------------------- TOTAL OPERATING INCOME 130,623 110,132 18.6% OTHER INCOME (EXPENSE) Gain on sales of assets 10,358 24,343 (57.4%) Interest expense (42,241) (42,809) (1.3%) Income from unconsolidated cellular entities 6,845 6,877 (0.5%) Minority interest (3,310) (2,643) 25.2% Other income and expense 2,180 604 260.9% Income tax expense (43,350) (38,810) 11.7% ------------------------- NET INCOME $ 61,105 57,694 5.9% ========================= EARNINGS PER SHARE (1) Basic $ 0.44 0.42 4.8% Diluted (2) $ 0.43 0.41 4.9% SHARES OUTSTANDING (1) Basic 138,086 136,442 1.2% Diluted 141,028 139,376 1.2% DIVIDENDS PER COMMON SHARE (1) $ 0.045 0.0433 3.9% (1) Reflects a three-for-two stock split effected as a stock dividend distributed March 31,1999 (2) Includes $.04 and $.11 in 1999 and 1998, respectively, resulting from gain on asset sales CENTURY TELEPHONE ENTERPRISES, INC. CONSOLIDATED BALANCE SHEETS MARCH 31, 1999 AND DECEMBER 31, 1998 (UNAUDITED) March 31, December 31, 1999 1998 ----------------------------- (in thousands) ASSETS CURRENT ASSETS Cash and cash equivalents $ 4,085 5,742 Other current assets 228,660 220,496 ----------------------------- Total current assets 232,745 226,238 ----------------------------- PROPERTY, PLANT AND EQUIPMENT Telephone 3,692,537 3,660,252 Cellular 435,379 428,984 Other 214,724 200,422 Accumulated depreciation (2,010,400) (1,938,205) ----------------------------- Net property, plant and equipment 2,332,240 2,351,453 ----------------------------- INVESTMENTS AND OTHER ASSETS Excess cost of net assets acquired 1,941,127 1,956,701 Other 391,057 401,063 ----------------------------- Total investments and other assets 2,332,184 2,357,764 ----------------------------- TOTAL ASSETS $ 4,897,169 4,935,455 ============================= LIABILITIES AND EQUITY CURRENT LIABILITIES Current maturities of long-term debt $ 54,611 53,010 Other current liabilities 280,311 251,834 ----------------------------- Total current liabilities 334,922 304,844 ----------------------------- LONG-TERM DEBT 2,426,028 2,558,000 DEFERRED CREDITS AND OTHER LIABILITIES 539,798 541,129 STOCKHOLDERS' EQUITY 1,596,421 1,531,482 ----------------------------- TOTAL LIABILITIES AND EQUITY $ 4,897,169 4,935,455 ============================= CAPITAL EXPENDITURES THREE MONTHS ENDED MARCH 31, 1999 AND 1998 INC 1999 1998 (DEC) ----------------------------- (in thousands) Telephone $ 38,304 35,287 8.5% Cellular 7,163 18,132 (60.5%) Corporate and other 17,534 9,185 90.9% -------------------- Total capital expenditures $ 63,001 62,604 0.6% ==================== 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. CENTURY TELEPHONE ENTERPRISES, INC. By: /s/ R. Stewart Ewing ------------------------- R. Stewart Ewing Senior Vice President and Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----