CenturyLink 2005 Annual Report Download - page 5

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Our new tagline,
“personal touch ---
advanced communica-
tions” is more than a
marketing campaign.
It is a statement of
who we are, of the
way we do business,
and of how we treat
one another and our
customers.
CenturyTel’s
Unifying Principles:
Fairness -
The Golden Rule
Honesty and Integrity
Commitment
to Excellence
Positive Attitude
Respect
Faith
Perseverance
results and further strengthened our
financial position.
During the year we:
■Generated nearly $965 million in net
cash from operations;
■Returned over $580 million of cash to
shareholders through share repurchases
and cash dividends;
■Invested $384 million in network
enhancements;
■Improved our financial strength and
liquidity through the repayment of
$349 million in debt, decreasing debt
as a percentage of total capitalization
to 42.3 percent;
■Increased operating revenues 3.0
percent and diluted earnings per share
3.3 percent;
■Grew high-speed Internet connections
by more than 106,000, ending 2005
with over 248,700 broadband
subscribers, an increase of 74.4 percent
over 2004; and
■Further secured our customer base by
increasing bundle penetration from
12.2 percent to 15.5 percent of total
access lines, driving further penetration
of our enhanced calling features and
long distance services.
CenturyTel’s strong cash flows and solid
capital structure provide us the financial
strength and flexibility to invest in growth
initiatives, to meet the challenges that
lay ahead and to return capital to
shareholders through share repurchases
and dividends. I am pleased with our
2005 financial results, and we are
committed to leveraging our financial
position to continue driving shareholder
value in 2006 and beyond.
We Continue to Position Our Business
to Succeed in a Changing Environment
As our environment grows more
competitive, we know we must improve
the way we serve our customers to
ensure that our customer experience is
unparalleled and that the costs we incur
to deliver services are competitive. We
believe that excellent customer care will
be a key differentiator in markets where
multiple competitors sell the same
product sets at similar prices. We must
challenge ourselves to provide this high
level of service while being the low-cost
provider in our markets. We expect
this effort to deliver improved market
penetration and provide additional
pricing flexibility.
In late 2005 we introduced a new
branding initiative that emphasizes the
qualities that distinguish us from other
service providers. Our new tagline,
“personal touch --- advanced communi-
cations” is more than a marketing
campaign. It is a statement of who we
are, of the way we do business, and of
how we treat one another and our
customers. Together with our Unifying
Principles, our brand is a critical tool in
helping our customers understand who
we are and in helping our employees
understand what is expected of them.
Our Broadband Network Is
the Foundation for Our Future
CenturyTel’s network is positioned to
support the continued evolution that IP
technology brings. Over the last five
years, we have invested more than
$1.5 billion to enable broadband, extend
fiber deeper into our network, start
an “on-net” competitive local exchange
business and create a regional fiber