CenturyLink 2008 Annual Report Download - page 7

15-year period ending December 31, 2008, CenturyTel delivered
total shareholder returns of 183.5 percent, three times higher than
the S&P Telecom Index and higher than the S&P 500.
Our strong balance sheet has enabled us to invest strategically
and withstand competitive and economic challenges. We main-
tain a strong liquidity position, an investment-grade credit rating
and a low debt-to-operating cash ow ratio compared to most of
our peers.
With no pressing need to access credit markets, we are well posi-
tioned to deal with current market conditions. We have minimal
2009 debt maturities of approximately $20 million and reasonable
maturities of approximately $520 million in 2010. Additionally,
we have arranged all nancing necessary to complete the
EMBARQ transaction.
In June 2008, CenturyTel’s Board of Directors increased the
annual cash dividend to $2.80 per share from $0.27 per share.
The increase represents an approximately 50 percent payout
of free cash ow. We also continued to return cash to sharehold-
ers through share repurchases under the current $750 million
share repurchase program. In 2008, we returned more than
$567 million to shareholders through share repurchases and
common dividends.
Concurrent with the announcement of the proposed merger with
EMBARQ, we suspended share repurchases under the existing
program. Following the anticipated close of the transaction in
second quarter 2009, we expect to reconsider our share repur-
chase strategy in light of market conditions and other factors at
that time.
A Stronger Competitor
I believe we enter 2009 as a stronger and more procient pro-
vider of advanced communications services. Our experienced
management team has worked well together for many years,
and built a track record of superior shareholder returns. With
our planned network investments and increasingly sophisticated
marketing and customer care capabilities, we look forward to
continued industry-leading performance.
We expect to apply our proven leadership experience and busi-
ness model to the operations of the combined CenturyTel/
EMBARQ company. Upon the successful close of the EMBARQ
transaction, we will be a stronger, larger company, dedicated to
delivering high-quality communications services to both rural
and urban markets throughout the country, creating one of the
leading communications companies in the United States.
We are excited about the opportunities we believe the EMBARQ
merger will create for our customers, employees, shareholders
and the communities we serve. We will work diligently in the
years ahead to realize those opportunities, and create a clear
industry leader in providing advanced communications services.
Glen F. Post, III
Chairman of the Board and
Chief Executive Ocer