Fully diluted earnings per share from current businesses was 84 cents, a 12 percent increase from a year ago.
For the year, fully diluted earnings per share under GAAP was $2.96, while fully diluted earnings per share from current businesses was $3.24, a 14 percent increase from 2001.
"This was another solid year for ALLTEL as our company continued to produce strong financial results while growing our communications business in what was a very challenging year for the industry," said Scott Ford, ALLTEL president and chief executive officer.
Fourth-quarter highlights from current businesses (compared with the fourth quarter of last year) include:
- Total revenues were $2.1 billion, a 13 percent increase.
- Net income was $262.4 million, a 12 percent increase.
- Wireless revenues were $1.1 billion, a 15 percent increase.
- Wireline revenues were $607.8 million, a 22 percent increase.
- Equity free cash flow was $281 million, a 112 percent increase.
Highlights from current businesses for the year (compared with 2001) include:
- Total revenues were nearly $8 billion, a 6 percent increase.
- Net income was $1 billion, a 14 percent increase.
- Wireless revenues were $4.2 billion, a 9 percent increase.
- Wireline revenues were $2.2 billion, an 11 percent increase.
- Equity free cash flow was $996 million, a 21 percent increase.
ALLTEL also has agreed to sell the financial services division of its Information Services subsidiary to Fidelity National Financial Inc. of Irvine, Calif., for $1.05 billion, payable as $775 million cash and $275 million in Fidelity National common stock. The telecom division of ALLTEL Information Services will be retained by ALLTEL and will not be part of the transaction.
Fidelity National is acquiring ALLTEL's mortgage servicing operations; the retail banking operations; the commercial lending/wholesale banking business; and the community/regional bank division. About 5,500 employees will transition to Fidelity National as part of the transaction.
Assuming the Information Services transaction closes on March 31, the sale will dilute 2003 earnings by approximately 22 cents per share. First-quarter 2003 results will show the financial services division of the Information Services business as a discontinued operation.
"The decision to sell the financial services division of ALLTEL Information Services improves ALLTEL's financial flexibility and allows our company to focus on expanding the communications business," Ford said. "We also believe Fidelity National will provide opportunities for both our Information Services customers and employees, and we look forward to our continued relationship with Fidelity National as one of their sizeable shareholders."
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) 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; material changes in communications technology; the risks associated with the integration of acquired businesses; the potential for adverse changes in the ratings given to our debt securities by nationally accredited ratings organizations; the availability and cost of financing in the corporate debt markets; the uncertainties related to ALLTEL's strategic investments; the effects of litigation; ongoing deregulation (and the resulting likelihood of significantly increased price and product/service competition) in the communications business as a result of federal and state legislation, rules, and regulations; the final outcome of federal, state and local regulatory initiatives and proceedings related to the terms and conditions of interconnection, access charges, universal service and unbundled network elements and resale rates; and the final outcome of pending litigation challenging the Federal Communications Commission's wireless number portability rules. 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.
ALLTEL, with more than 12 million communications customers and nearly $8 billion in revenues, is a leader in the communications and information services industries. ALLTEL has communications customers in 26 states and provides information services to telecommunications, financial and mortgage clients in more than 50 countries.