On April 27, Alltel (NYSE:AT) released first-quarter earnings for the period ended March 31.
- While gaining a record 237,000 customers created revenue growth, operating costs increased 11%, eating away at margins.
- New packages offering bundled data and voice services, and the My Circle calling plan helped generate favorable operating metrics.
- In continuation of its $3 billion repurchase plan, Alltel bought back 15.3 million shares in the first quarter and has returned almost $2.7 billion in cash to shareholders since the inception of the program.
- Alltel seems to be holding its own against the leading industry competitors as it rates three stars in comparison to Verizon's (NYSE:VZ) three-star and Sprint's (NYSE:S) two-star status in the Motley Fool CAPS community.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Sales |
$2,078.5 |
$1,843.2 |
12.8% |
|
Net Profit* |
$230.3 |
$297.4 |
(22.6%) |
|
EPS |
$0.64 |
$0.77 |
(16.9%) |
|
Diluted Shares |
359.8 |
389.7 |
(7.7%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* | |
|---|---|---|---|
|
Operating Margin |
17.1% |
15.8% |
1.2 |
|
Net Margin |
11.1% |
16.1% |
(5.1) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$576.8 |
$886.5 |
(34.9%) |
|
Accounts Rec. |
$765.2 |
$1,015.0 |
(24.6%) |
|
Inventory |
$214.4 |
$193.9 |
10.6% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Long-Term Debt |
$2,661.3 |
$5,661.9 |
(53.0%) |
|
Accounts Payable |
$487.9 |
$517.2 |
(5.7%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$561.2 |
$384.8 |
45.8% |
|
Capital Expenditures |
$169.6 |
$158.4 |
7.1% |
|
Free Cash Flow |
$391.5 |
$226.5 |
72.9% |
Free cash flow is a Fool's best friend.
Operating Highlights
|
Q1 2007 |
Q1 2006 |
Change | |
|---|---|---|---|
|
Subscribers |
12 |
11 |
11.3% |
|
Average Revenue per User* |
$52.49 |
$51.23 |
2.5% |
|
Cost per Gross Addition |
$644 |
$626 |
2.9% |
|
Churn Rate* |
1.8% |
2.0% |
(0.2) |
Find out more about service provider metrics.
Related Foolishness:
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