1 / 20

Scott Ford President and Chief Executive Officer 13th Annual Salomon Smith Barney Global Entertainment, Media & Te

Scott Ford President and Chief Executive Officer 13th Annual Salomon Smith Barney Global Entertainment, Media & Telecommunications Conference La Quinta Resort & Club, La Quinta, CA January 8, 2003 .

reegan
Download Presentation

Scott Ford President and Chief Executive Officer 13th Annual Salomon Smith Barney Global Entertainment, Media & Te

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Scott Ford President and Chief Executive Officer 13th Annual Salomon Smith Barney Global Entertainment, Media &Telecommunications Conference La Quinta Resort & Club, La Quinta, CA January 8, 2003

  2. This presentation includes certain estimates and other forward-looking statements, including statements with respect to anticipated operating and financial performance, growth opportunities and growth rates, acquisition and divestiture opportunities, and other statements of expectation. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and “should,” and variations of these words and similar expressions, are intended to identify these forward-looking statements. Forward-looking statements are subject to uncertainties that could cause actual future performance, outcomes and results to differ materially. These statements by the Company and its management are based on estimates, projections, beliefs and assumptions of management and are not guarantees of future performance. The company disclaims any obligation to update or revise any forward-looking statement based on the occurrence of future events, the receipt of new information, or otherwise. “Safe Harbor” Statement

  3. ALLTEL has performed better than the S&P 500 over the last 5 years • Assumes that $100 was invested on the last trading day of 1997 and that all dividends were reinvested. • Note - ALLTEL has raised dividends for 42 consecutive years - new annual dividend is $1.40 per common share “pre-tax”.

  4. 3Q 2002 Highlights • Wireless revenue increased 12% year-over-year driven by the addition of 762,000 lines from CenturyTel • Wireline revenue increased 17% year-over-year driven by the addition of 589,000 lines in Kentucky from Verizon • Consolidated EBITDA increased 10% year-over-year to $818 million, a 39% margin • More than 50% of wireless gross adds signed up on our higher revenue Freedom plans • EPS increased 14% year-over-year to $.84* * Includes impact of SFAS 142

  5. Investment Highlights Proven Strategic Model Solid Financial Performance Strong Platform for Continued Growth Conservative Capital Structure Industry Leading Results

  6. Proven Strategic Model • Focus Operationally Focus Operationally • Retail Experience • Call Center Experience • Network Experience

  7. Proven Strategic Model • Focus Operationally • Finance Conservatively Focus Operationally • Retail Experience • Call Center Experience • Network Experience Finance Conservatively • Invest in Businesses Not Products • Best Customer/Best Price • Stay Relevant

  8. Proven Strategic Model • Focus Operationally • Finance Conservatively • Grow Opportunistically Focus Operationally • Retail Experience • Call Center Experience • Network Experience Finance Conservatively • Invest in Businesses Not Products • Best Customer/Best Price • Stay Relevant Grow Opportunistically • Focus on Free Cash Flow • Operational “Fit” • Think Long-Term

  9. Customers • Tier 2 & 3 • Fewer Competitors • Higher Revenue Growth • Lower Churn • Better EBITDA Margins Strong Platform for Continued GrowthWireless Markets – A Closer Look ALLTEL Wireless Verizon & Other Roaming Agreements • 7.6 mm customers* • 59mm POPs* * As of 9/30/02.

  10. % of Gross Adds on Total/National Freedom Rate Plans Strong Platform for Continued GrowthTotal/National Freedom Rate Plans ALLTEL Wireless Verizon & Other Roaming Agreements Total/National Freedom Plans • Net present values are significantly higher than other rate plans • ARPU is 20-25% higher • Leverage Verizon Roaming agreement

  11. Strong Platform for Continued GrowthLocal Network Coverage Matters PCS Competitor vs. ALLTEL Local Package

  12. * • Over 40% LD penetration – 1.4 million LD customers • 38%-42% vertical services penetration • DSL can be offered to 1/2 of our customer lines • 56,000 DSL customers - 3.5% penetration of addressable lines • Approximately 250,000 Internet customers (including DSL) • More than 80% of DSL customers have ALLTEL Internet Service • Less competitive pressure • Little exposure to UNEP • Bundling success * As of 9/30/02 Strong Platform for Continued GrowthWireline Markets – A Closer Look ALLTEL Wireline ALLTEL Wireless Verizon & Other Roaming Agreements • 2nd largest independent ILEC • 3.2 mm customer lines

  13. Industry Leading ResultsWireless EBITDA Margins • Direct Sales Channel is approximately 70%-75% of total sales • CDMA technology Service revenue margin. Source: Company reports.

  14. Industry Leading ResultsWireless 3Q 2002 Market Penetration Market Share Gain Churn Cash Flow Margins

  15. Industry Leading ResultsWireline EBITDA Margins • Focused on second and third tier cities and rural markets • Convergence drives better margins Source: Company reports. **Source: Wall Street Research.

  16. Industry Leading ResultsWireline 3Q 2002 Cash Flow Margin Customer Growth* (vs. 3Q01) * Excludes DSL

  17. Conservative Capital Structure • ALLTEL has one of the strongest credit profiles in the telecom industry • Well capitalized balance sheet • A1 / Prime-1 / F1 (S&P / Moody’s / Fitch) Commercial Paper ratings • A / A2 / A (S&P / Moody’s / Fitch) long-term credit ratings • Debt / EBITDA 1.9X (a) • Debt / Total Capitalization 45%(a) * TELECOM COMPANY CREDIT RATINGS STATISTICS 9.0 RCCC 8.0 7.0 6.0 Total Debt / 2002E EBITDA (x) CZN 5.0 Q T NXTL 4.0 AWE 3.0 FON/PCS CTL AT TDS 2.0 VZ BLS SBC 1.0 USM 0.0 B+ BB- BB BB+ BBB- BBB BBB+ A- A A+ AA- S&P Credit Rating Source: Wall Street equity research and company filings. *Debt/EBITDA as of 9/30/02 analyst estimates. S&P credit ratings as of 9/30/02. (a) Based on ALLTEL 9/30/02 LTM EBITDA. Assumes 80% equity credit for Equity Units.

  18. Solid Financial PerformanceDelivering Consistent Growth Revenue ($bn) EBITDA** ($bn) * * Dividends per Share Earnings per Share *Not restated for new reporting standard. **Excluding merger and integration expenses.

  19. Solid Financial PerformanceStrong and Growing Free Cash Flow Millions % of Revenues $ 5-Year CAGR = 27% * 15 * Defined as Net Income + Depreciation + Amortization - CAPEX.

More Related