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 21, 1999
ALLTEL CORPORATION
- - --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 1-4996 34-0868285
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(State or other (Commission File Number) (I.R.S. Employer
jurisdiction of Identification No.)
incorporation or
organization)
One Allied Drive, Little Rock, Arkansas 72202
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (501) 905-8000
----------------------------
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
Item 5. Other Events
On April 21, 1999, ALLTEL Corporation issued a Press Release
announcing the first quarter results for ALLTEL Corporation and its
subsidiaries. A copy of the Press Release is attached hereto as Exhibit
99.1 and made a part hereof.
Item 7. Financial Statements and Exhibits
(a) Not applicable.
(b) Not applicable.
(c) Exhibits.
Exhibit 99.1 Press Release, dated April 21, 1999 of
ALLTEL Corporation
2
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this amendment to be signed on its
behalf by the undersigned, thereunto duly authorized.
ALLTEL CORPORATION
-----------------------------------------
(Registrant)
By: /s/ Dennis J. Ferra
-----------------------------------------
Dennis J. Ferra
Senior Vice President and Chief
Administrative Officer
April 21, 1999
3
<PAGE>
EXHIBIT INDEX
-------------
Exhibit
Number Description of Exhibits
------- -----------------------
99.1 Press Release of ALLTEL Corporation, dated April 21, 1999.
4
For additional information contact: George S. Smith, (501) 905-8117
Vice President - Media Services
Daniel A. Powell, (501) 905-8991
Vice President - Investor Relations
Release date: April 21, 1999
ALLTEL REPORTS FIRST QUARTER EARNINGS PER SHARE
FROM CURRENT BUSINESSES OF 59 CENTS, UP 26 Percent
FOR IMMEDIATE RELEASE
- - ---------------------
LITTLE ROCK, Ark. - ALLTEL today announced record first quarter results
from current businesses. Revenues grew 16 percent to $1.4 billion from the
previous year; net income was up 31 percent to $167 million; and earnings per
share grew 26 percent to 59 cents per share from the previous year.
Among the highlights from businesses in the first quarter:
o Revenues and operating income for ALLTEL's wireless business
increased 21 percent and 49 percent, respectively, from last year.
This was driven by an increase in average revenue per customer
(ARPU) of 5 percent year over year, to $47.35.
o ALLTEL added 174,000 net wireless customers during the first
quarter, including 85,000 from the acquisition of the Richmond,
Va., market.
o Revenues and operating income for ALLTEL's wireline business
increased 12 percent and 10 percent, respectively, from last year,
which include the acquisition of Standard Group Inc. in Georgia.
o Revenues from emerging businesses more than doubled in the quarter
over the same period last year. This was due to growth in
long-distance, competitive local exchange access, Internet access,
network management and PCS (personal communications service)
operations.
o Revenues and operating income for ALLTEL's information services
business increased 14 percent and 10 percent, respectively, from
last year.
"I am extremely pleased with ALLTEL's double-digit earnings growth for
the quarter. Strong performance by the operating units combined to produce
impressive results," said Joe Ford, ALLTEL chairman and chief executive officer.
-more-
<PAGE>
ALLTEL Reports First Quarter Earnings
Page 2
"Our communications business continued to produce industry-leading
operating and cash flow margins. Additionally, ALLTEL expanded its bundled
service offering in key markets with the addition of new services, including
digital wireless service. ALLTEL launched digital wireless service in three
markets in the first quarter with additional markets planned for later this
year.
"To date, ALLTEL has introduced digital wireless service to 16 markets
representing nearly 45 percent of the company's wireless POPs (potential
customers.) ALLTEL now has the largest digital wireless network in the
Carolinas.
"In addition, the company launched digital PCS in the
Birmingham/Tuscaloosa and Mobile/Pensacola markets," Ford said.
"As the company introduced new services, we also expanded ALLTEL's
geographic footprint through the acquisition of wireline and wireless properties
in Georgia, Colorado and Alabama. Our geographically focused communications
operations are now in 23 states," Ford said.
"Our information services business continued to sign new business and
expand its range of information technology solutions.
"In the first quarter, ALLTEL Information Services signed a wireline
billing contract with Centennial Communications for its Puerto Rico markets. In
addition, ALLTEL successfully delivered its Virtuoso customer care and billing
system to Hughes Ispat Limited's data center in Bombay, India," he said.
"As ALLTEL Information Services signed new business, it continued to
expand the range of services it provides through the acquisition of Corporate
Solutions, Inc. (CSI), a leading provider of consumer loan origination software.
The CSI acquisition further strengthens ALLTEL's efforts to become the worldwide
leader in providing consumer lending automation," Ford said.
In summary, he said, "We are extremely pleased with ALLTEL's first
quarter results, from both a financial and strategic standpoint. Throughout the
quarter, we maintained our focus on delivering value to our customers,
shareholders and employees."
ALLTEL is a customer-focused, information technology company that
provides wireline and wireless communications and information services.
*ALLTEL, NYSE: AT
*www.alltel.com
-more-
<PAGE>
<TABLE>
ALLTEL CORPORATION
CONSOLIDATED HIGHLIGHTS
(Dollars in thousands, except per share amounts)
<CAPTION>
THREE MONTHS ENDED MARCH 31, TWELVE MONTHS ENDED MARCH 31,
Increase Increase
(Decrease) (Decrease)
FROM CURRENT BUSINESSES 1999 1998 Amount % 1999 1998 Amount %
---- ---- ------ - ---- ---- ------ -
<S> <C> <C> <C> <C> <C> <C> <C> <C>
REVENUES AND SALES:
Wireless $ 582,822 $ 481,638 $101,184 21 $2,238,345 $1,900,428 $337,917 18
Wireline 357,531 319,876 37,655 12 1,346,719 1,257,107 89,612 7
Emerging businesses 39,049 19,094 19,955 105 119,902 62,868 57,034 91
---------- ---------- -------- ---------- ----------- --------
Total communications 979,402 820,608 158,794 19 3,704,966 3,220,403 484,563 15
Information services 305,398 266,861 38,537 14 1,200,305 1,023,317 176,988 17
Other operations 117,064 105,115 11,949 11 613,299 430,812 182,487 42
---------- ---------- -------- ---------- ----------- --------
Total business segments 1,401,864 1,192,584 209,280 18 5,518,570 4,674,532 844,038 18
Less: intercompany eliminations 33,502 8,266 25,236 305 140,518 32,036 108,482 339
---------- ---------- -------- ---------- ----------- --------
Total revenues and sales $1,368,362 $1,184,318 $184,044 16 $5,378,052 $4,642,496 $735,556 16
========== ========== ======== ========== ========== ========
OPERATING INCOME (LOSS):
Wireless $ 180,402 $ 121,215 $ 59,187 49 $ 662,800 $ 497,152 $165,648 33
Wireline 129,986 117,904 12,082 10 483,646 461,860 21,786 5
Emerging businesses (12,129) (5,729) (6,400) (112) (51,276) (23,074) (28,202) (122)
---------- ---------- -------- ---------- ---------- --------
Total communications 298,259 233,390 64,869 28 1,095,170 935,938 159,232 17
Information services 40,452 36,825 3,627 10 166,278 148,161 18,117 12
Other operations 4,250 5,137 (887) (17) 25,039 19,598 5,441 28
---------- ---------- -------- ---------- ---------- --------
Total business segments 342,961 275,352 67,609 25 1,286,487 1,103,697 182,790 17
Corporate expenses 5,737 3,447 2,290 66 25,142 18,310 6,832 37
---------- ---------- -------- ---------- ---------- --------
Total operating income 337,224 271,905 65,319 24 1,261,345 1,085,387 175,958 16
Other income, net 13,145 7,184 5,961 83 56,793 19,584 37,209 190
Interest expense (64,896) (66,758) (1,862) (3) (261,807) (265,336) (3,529) (1)
---------- ---------- -------- ---------- ---------- --------
Income before income taxes 285,473 212,331 73,142 34 1,056,331 839,635 216,696 26
Income taxes 118,791 85,008 33,783 40 436,667 333,195 103,472 31
---------- ---------- -------- ---------- ---------- --------
Net income 166,682 127,323 39,359 31 619,664 506,440 113,224 22
Preferred dividends 232 240 (8) (3) 930 990 (60) (6)
---------- ---------- -------- ---------- ---------- --------
Net income applicable to
common shares $ 166,450 $ 127,083 $ 39,367 31 $ 618,734 $ 505,450 $113,284 22
========== ========== ======== ========== ========== ========
EARNINGS PER SHARE:
Basic $.59 $.47 $.12 26 $2.24 $1.84 $.40 22
Diluted $.59 $.46 $.13 28 $2.22 $1.82 $.40 22
<FN>
Current businesses excludes the sold wire and cable operations, merger and integration expenses and provision to reduce carrying
value of certain assets, and gain on disposal of assets. Emerging businesses includes the long-distance, local competitive access,
internet access, network management and PCS operations.
</FN>
</TABLE>
<PAGE>
ALLTEL CORPORATION
HIGHLIGHTS-Page 2
(Dollars in thousands, except per share amounts)
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31, TWELVE MONTHS ENDED MARCH 31,
---------------------------- -----------------------------
AS REPORTED 1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues and sales $1,368,362 $1,184,318 $5,378,052 $4,653,813
Costs and expenses:
Operations 1,031,138 912,413 4,116,707 3,568,106
Merger and integration expenses and provision
to reduce carrying value of certain assets - - 307,000 16,874
---------- ---------- ---------- ----------
Total costs and expenses 1,031,138 912,413 4,423,707 3,584,980
---------- ---------- ---------- ----------
Operating income 337,224 271,905 954,345 1,068,833
Other income, net 13,145 7,184 56,793 19,596
Interest expense (64,896) (66,758) (261,807) (265,336)
Gain on disposal of assets and other - 67,090 229,060 257,496
---------- ---------- ---------- ----------
Income before income taxes 285,473 279,421 978,391 1,080,589
Income taxes 118,791 111,750 453,905 434,690
---------- ---------- ---------- ----------
Net income 166,682 167,671 524,486 645,899
Preferred dividends 232 240 930 990
---------- ---------- ---------- ----------
Net income applicable to common shares $ 166,450 $ 167,431 $ 523,556 $ 644,909
========== ========== ========== ==========
EARNINGS PER SHARE:
Basic $.59 $.61 $1.90 $2.34
Diluted $.59 $.61 $1.88 $2.32
</TABLE>
<PAGE>
ALLTEL CORPORATION
SUPPLEMENTAL OPERATING INFORMATION FROM CURRENT BUSINESSES
<TABLE>
<CAPTION>
THREE MONTHS TWELVE MONTHS
ENDED MARCH 31, ENDED MARCH 31,
---------------------------- ---------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Wireless:
Controlled POPs 34,996,207 33,292,927 34,996,207 33,292,927
Customers 4,182,601 3,620,842 4,182,601 3,620,842
Gross customer additions 385,520 322,852 1,527,677 1,353,561
Net customer additions 88,590 96,963 456,141 512,765
Average customers 4,112,837 3,562,652 3,884,878 3,375,686
Churn 2.34% 2.07% 2.20% 2.04%
Penetration rate 12.0% 10.9% 12.0% 10.9%
Average revenue per customer per month $47.35 $45.07 $48.07 $46.92
Cost to acquire a new customer $291 $295 $276 $282
Operating margin 31.0% 25.2% 29.6% 26.2%
EBITDA dollars (in thousands) $259,041 $193,076 $961,683 $770,966
Cash flow (EBITDA) margin 44.4% 40.1% 43.0% 40.6%
Wireline:
Customers 2,034,750 1,821,170 2,034,750 1,821,170
Operating margin 36.4% 36.9% 35.9% 36.7%
EBITDA dollars (in thousands) $200,531 $184,330 $742,048 $711,806
Cash flow (EBITDA) margin 56.1% 57.6% 55.1% 56.6%
Emerging businesses:
Long-distance customers 581,703 389,465 581,703 389,465
EBITDA dollars (in thousands) $(8,837) $(4,212) $(40,015) $(20,298)
Information services:
Operating margin 13.2% 13.8% 13.9% 14.5%
EBITDA dollars (in thousands) $74,563 $69,018 $306,928 $267,420
Cash flow (EBITDA) margin 24.4% 25.9% 25.6% 26.1%
Consolidated:
EBITDA dollars (in thousands) $527,545 $446,881 $1,983,819 $1,743,489
Cash flow (EBITDA) margin 38.6% 37.7% 36.9% 37.6%
Weighted average common shares 280,720,000 273,296,000 276,008,000 275,095,000
Current annual dividend rate per
common share $1.22 $1.16
Capital expenditures (in thousands) $172,044 $132,890 $907,732 $791,152
Total assets (in thousands) $9,861,079 $8,774,257 $9,861,079 $8,774,257
</TABLE>
<PAGE>
ALLTEL CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
<TABLE>
<CAPTION>
ASSETS
MARCH 31, DEC. 31, MARCH 31,
1999 1998 1998
---------- ---------- ----------
<S> <C> <C> <C>
CURRENT ASSETS:
Cash and short-term investments $ 29,277 $ 55,472 $ 43,366
Accounts receivable (less allowance for
doubtful accounts of $33,124, $29,121
and $25,488, respectively) 771,859 776,720 685,494
Materials and supplies 17,876 10,539 17,491
Inventories 92,091 88,467 71,608
Prepaid expenses and other 64,349 49,633 43,634
---------- ---------- ----------
Total current assets 975,452 980,831 861,593
---------- ---------- ----------
Investments 1,882,639 1,668,171 1,463,510
Goodwill and other intangibles 1,691,256 1,625,617 1,630,279
PROPERTY, PLANT AND EQUIPMENT:
Wireline 4,357,186 4,090,791 3,962,816
Wireless 2,871,786 2,658,822 2,364,449
Information services 695,724 678,244 628,538
Other 181,983 182,066 170,676
Under construction 562,441 623,415 393,643
---------- ---------- ----------
Total property, plant and equipment 8,669,120 8,233,338 7,520,122
Less accumulated depreciation 3,664,872 3,405,270 3,044,635
---------- ---------- ----------
Net property, plant and equipment 5,004,248 4,828,068 4,475,487
---------- ---------- ----------
Other assets 307,484 271,539 343,388
---------- ---------- ----------
TOTAL ASSETS $9,861,079 $9,374,226 $8,774,257
========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
MARCH 31, DEC. 31, MARCH 31,
1999 1998 1998
---------- ---------- ----------
CURRENT LIABILITIES:
Current maturities of long-term debt $ 56,224 $ 55,484 $ 64,588
Accounts and notes payable 407,599 486,047 376,985
Advance payments and customer deposits 112,390 129,092 135,129
Accrued taxes 182,013 130,675 167,629
Accrued dividends 86,374 84,388 55,155
Other current liabilities 275,643 320,822 164,233
---------- ---------- ----------
Total current liabilities 1,120,243 1,206,508 963,719
---------- ---------- ----------
Long-term debt 3,604,100 3,491,755 3,592,697
Deferred income taxes 1,050,357 933,485 816,652
Other liabilities 494,816 466,601 426,182
Preferred stock, redeemable 4,991 5,005 5,592
SHAREHOLDERS' EQUITY:
Preferred stock 9,114 9,121 9,142
Common stock 281,346 275,137 274,097
Additional capital 879,015 846,647 814,103
Unrealized holding gain on investments 667,506 551,615 425,498
Retained earnings 1,749,591 1,588,352 1,446,575
---------- ---------- ----------
Total shareholders' equity 3,586,572 3,270,872 2,969,415
---------- ---------- ----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $9,861,079 $9,374,226 $8,774,257
========== ========== ==========
</TABLE>
