Alltel announced a great 3rd quarter, adding 205,000 subscribers and surpassing $2 billion in quarterly wireless service revenues for the first time.
Highlights of their wireless gains include:
- Average revenue per wireless customer (ARPU) was $55.96, a 4
percent increase from last year. Data revenue per customer was $6.36,
up 70 percent from last year and 13 percent sequentially. - Wireless service revenue was $2.1 billion, an increase of 15 percent from a year ago.
Alltel is in the processing of being acquired for $25 billion by TPG
Capital and Goldman Sachs.
Alltel posts record growth in third quarter; expects to close merger with TPG Capital, Goldman Sachs before year end
LITTLE ROCK, Ark. - Alltel achieved record growth in the third
quarter as the company reached new milestones in wireless revenues and
post-pay net additions. Alltel reported fully diluted earnings per
share under Generally Accepted Accounting Principles (GAAP) of 81 cents
and fully diluted earnings per share of 80 cents from current
businesses, a 33 percent increase from a year ago.
“The Alltel team produced another record quarter as we surpassed $2
billion in quarterly wireless service revenues for the first time and
achieved post-pay net adds of 213,000, more than doubling post-pay
growth over the same period last year,” said Alltel President and CEO
Scott Ford. “As to our pending merger with TPG Capital and Goldman
Sachs, we are very pleased with the progress we have made on this
transaction and expect it to close before year-end.”
Among the highlights for the third quarter:
- Revenues were $2.3 billion, a 14 percent increase from a year ago.
Net income under GAAP was $283 million, a 51 percent increase. Net
income from current businesses was $279 million, a 21 percent increase
from a year ago. - Total net additions were 205,000, up 103 percent. Post-pay net adds were 213,000, a 182 percent increase from a year ago.
- Wireless service revenue was $2.1 billion, an increase of 15 percent from a year ago.
- Post-pay churn was 1.31 percent and total churn was 1.90 percent.
This is the seventh consecutive quarter that both metrics have improved
year-over-year. - Average revenue per wireless customer (ARPU) was $55.96, a 4
percent increase from last year. Data revenue per customer was $6.36,
up 70 percent from last year and 13 percent sequentially. - Equity free cash flow from current businesses was $347 million, a
62 percent increase. Net cash provided from operations was $726
million, a 105 percent increase from last year.
Upon closing of the pending merger with TPG Capital and Goldman
Sachs, Alltel shareholders will receive $71.50 per share in cash.
Alltel is awaiting Federal Communications Commission approval and the
company expects a favorable FCC vote soon.
Alltel operates America’s largest wireless network, which delivers
voice and advanced data services nationwide to 12 million customers.
Headquartered in Little Rock, Ark., Alltel is a Forbes 500 company with
annual revenues of nearly $8 billion.
Alltel claims the protection of the safe-harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of
1995. Forward-looking statements are subject to uncertainties that
could cause actual future events and results to differ materially from
those expressed in the forward-looking statements. These
forward-looking statements are based on estimates, projections,
beliefs, and assumptions and are not guarantees of future events and
results. Actual future events and results may differ materially from
those expressed in these forward-looking statements as a result of a
number of important factors. Representative examples of these factors
include (without limitation) occurrence of any event, change or other
circumstances that could give rise to the termination of the merger
agreement with TPG and GS Capital; the inability to complete the merger
due to the failure to satisfy certain conditions, including the receipt
of all regulatory approvals related to the merger; risks that the
proposed transaction disrupts current plans and operations; adverse
changes in economic conditions in the markets served by Alltel; the
extent, timing, and overall effects of competition in the
communications business; material changes in the communications
industry generally that could adversely affect vendor relationships
with equipment and network suppliers and customer relationships with
wholesale customers; changes in communications technology; the risks
associated with the integration of acquired businesses; adverse changes
in the terms and conditions of the wireless roaming agreements of
Alltel; the potential for adverse changes in the ratings given to
Alltel’s debt securities by nationally accredited ratings
organizations; the uncertainties related to Alltel’s strategic
investments; the effects of litigation; and the effects of federal and
state legislation, rules, and regulations governing the communications
industry. In addition to these factors, actual future performance,
outcomes, and results may differ materially because of more general
factors including (without limitation) general industry and market
conditions and growth rates, economic conditions, and governmental and
public policy changes.