Alltel Corp (65873) SEC Filing 10-K Annual report for the fiscal year ending Sunday, December 31, 2006

Alltel Corp

CIK: 65873

                                                                                       Exhibit 99(a)
For additional information contact:        Andrew Moreau 501-905-7962
      Vice President - Corporate Communications
      Tim Hicks 501-905-8991
  Director - Investor Relations

Release Date: Feb. 20, 2007

Alltel reports record wireless revenues, customer growth
for fourth quarter and full year

LITTLE ROCK, Ark. - Alltel reported record wireless revenues and customer growth in the fourth quarter and for the full year, ending 2006 with nearly 12 million customers on the nation’s largest wireless network. Alltel reported fully diluted earnings per share under Generally Accepted Accounting Principles (GAAP) of 58 cents for the fourth quarter and $2.93 for the year. Fully diluted earnings per share from current businesses was 63 cents for the quarter and $2.19 for the year, an increase from the corresponding periods in 2005 of 58 percent and 20 percent, respectively.
In 2006, Alltel became a pure wireless company as it completed the spin-off and merger of its wireline business to form Windstream Corp. The company’s board of directors declared dividends of more than $500 million and approved $3 billion in share repurchases. By the end of 2006, Alltel had repurchased 28.5 million shares of common stock, representing more than 50 percent of the $3 billion authorization and almost 7.5 percent of total shares outstanding.
“Our company’s growth in revenues and earnings, for both the fourth quarter and for the full year, was driven by record-level customer additions as Alltel became a wireless-only business,” said President and Chief Executive Officer Scott Ford. “This was another year where Alltel demonstrated our commitment to providing value for our shareholders while improving customer service at all levels. In total, Alltel returned more than $6.7 billion in cash and Windstream stock to our shareholders. We ended the year with only $2.7 billion in outstanding debt and $1.8 billion in outstanding net debt, maintaining one of the strongest balance sheets in our industry. And, once completed, our share buyback will be one of the largest relative share repurchases over the past decade.”
Among the highlights for the fourth quarter:
Revenues were $2.1 billion, a 14 percent increase from a year ago. Net income under GAAP was $216 million. Net income from current businesses was $235 million, a 51 percent increase from a year ago.
Alltel added 228,000 net customers through internal growth, a 55 percent increase from a year ago. Post-pay churn was 1.47 percent and total churn was 1.92 percent, year-over-year improvements for the fourth consecutive quarter.
Average revenue per wireless customer (ARPU) was $52.84, up 1 percent from last year. Data revenue per customer was $4.14, a 60 percent increase year-over-year.
“This was an outstanding strategic and operational year for our company as we continued to win more customers by offering innovative pricing plans, and an expanding selection of information and entertainment services,” Ford said. “Alltel offered a ground-breaking calling plan with My Circle and focused on improving customer service, both of which contributed to our success in growing a profitable customer base and reducing churn for both the quarter and over the entire year.”
Among the highlights for the year:
Revenues were $7.9 billion, a 20 percent increase from 2005. Net income under GAAP was $1.1 billion. Net income from current businesses was $842 million, a 34 percent increase from the previous year.
Alltel added 640,000 net customers through internal growth, an 87 percent increase. Post-pay churn was 1.57 percent and total churn was 2 percent, both improved from the previous year. The company also acquired more than 500,000 customers through the purchases of Midwest Wireless, First Cellular of Southern Illinois, Virginia Cellular and Cellular One in Amarillo, Texas.
ARPU was $52.68, up 2 percent from last year. Data revenue per customer was $3.52, a 62 percent increase from 2005.
Equity free cash flow from current businesses was $709 million, a 35 percent increase. Net cash provided from operations was $1.5 billion.
   Alltel operates America’s largest wireless network, which delivers voice and advanced data services nationwide to nearly 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) 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.
Alltel, NYSE: AT

The following information was filed by Alltel Corp on Tuesday, February 20, 2007 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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SEC Filing Tools
CIK: 65873
Form Type: 10-K Annual Report
Accession Number: 0000065873-07-000049
Submitted to the SEC: Tue Feb 20 2007 11:01:41 AM EST
Accepted by the SEC: Tue Feb 20 2007
Period: Sunday, December 31, 2006
Industry: Radiotelephone Communications

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