FOR IMMEDIATE RELEASE: FOR MORE INFORMATION CONTACT:
September 29, 2000 Media: Patricia Cameron (318) 388-9674
[email protected]
Investors: Jeffrey S. Glover (318) 388-9648
[email protected]
CenturyTel Completes Purchase of 133,000 Wisconsin Access Lines;
Expects Strong Third Quarter Earnings
MONROE, La. ...CenturyTel, Inc. (NYSE Symbol: CTL) has completed the purchase of
approximately 133,000 telephone lines from Verizon Communications (formerly GTE)
in Wisconsin for approximately $364 million in cash in two separate
transactions. CenturyTel paid Verizon about $194 million in cash for 70,500
access lines in 42 Wisconsin exchanges. In a separate transaction, CenturyTel,
as part of a joint venture with Telephone USA Investments, Inc., purchased an
additional 62,900 access lines in 35 Wisconsin exchanges from Verizon at a cost
of approximately $170 million. CenturyTel will own 89 percent of the venture.
"We are pleased to close the last remaining acquisition of access lines
from Verizon. These growing markets represent excellent assets and provide a
good strategic fit with our existing Wisconsin operations," said Glen F. Post,
III, CenturyTel President and Chief Executive Officer.
Of the newly-acquired properties, 83 percent are covered by
CenturyTel's cellular operations while the remaining 17 percent fall under
CenturyTel's PCS licenses. Together these two transactions include plant that is
100 percent digitally switched with more than 1,000 route miles of fiber.
CenturyTel Anticipates Solid Third Quarter Earnings
Separately, CenturyTel expects third quarter 2000 earnings per share,
excluding one time items, to equal or exceed FirstCall consensus estimates of
$.42 per share. Revenues will likely range from $470 million to $480 million for
the quarter.
"CenturyTel is on track to achieve solid third quarter results. We have
successfully integrated the Arkansas and Missouri access lines, achieved strong
wireless performance and have experienced continued growth in our long distance
operations," Post said.
CenturyTel's results have been driven by the integration of the 360,000
telephone access lines purchased from Verizon in Arkansas and Missouri on July
31. The company continued its aggressive rollout of DSL access during the
quarter and expects strong demand for high-speed Internet access.
Contract customer growth, strong roaming revenues and improving average
revenue per user (ARPU) have driven CenturyTel's wireless revenue growth. The
company projects adding between 20,000 and 22,000 net contract customers during
the quarter fueled by demand for the company's new digital rate plans.
CenturyTel continues to lessen its focus on prepaid customers and anticipates
disconnecting approximately 30,000 non-revenue-generating prepaid subscribers
during the third quarter.
CenturyTel expects to add between 20,000 to 23,000 long distance
customers during the quarter.
In addition to historical information, this release includes certain
forward-looking statements, estimates and projections that 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 obtaining adequate financing
on attractive terms, integrating newly acquired businesses into the Company's
operations, hiring adequate numbers of qualified staff and successfully
upgrading its billing and other information systems; the risks inherent in rapid
technological change; the effects of ongoing changes in the regulation of the
communications industry; 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 product or service offerings on a timely and cost-effective basis; and the
effects of more general factors such as changes in general 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, Inc. provides integrated communications services including
local exchange, wireless, long distance, Internet access and security monitoring
services to nearly 3 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)
