A look at CTL.
P/E (ttm): 10.49
EPS (ttm): 3.46
Div & Yield: 2.80 (7.70%)
52wk Range: 23.27 - 36.59
Market Cap: 10.80B
From the last CC.
Diluted earnings per share excluding non-recurring items was $0.90 for the quarter, $0.08 ahead of the $0.82 upper end of our previous guidance
Operating revenues for the quarter were $1.874 billion or slightly above the midpoint of our previous revenue guidance to $1.85 billion to $1.89 billion. We experienced strong demand for broadband services during the quarter as we added more than 43,500 high speed Internet customers.
Now turning our attention to normalized results for the third quarter 2009 excluding these one-time items compared to normalized third quarter 2008 results; for third quarter 2009 operating revenues increased $1.224 billion to $1.874 billion from $650.1 million in the third quarter of 2008.
Our next question comes from Batya Levi.
Batya Levi
Two questions. One follow-up on the revenue side. It looks like pro forma revenue declined improved a little bit in the third quarter on an annual basis, but you are looking for a worsening trend in 4Q. Can you talk a little about the drivers for that expectation, does that embed maybe higher line losses or maybe more pressure on the regulatory side?
Another question on margins; looking at the pro forma margins, I believe margins were down about 100 basis points on a sequential basis. This excludes integration costs, but has the synergy helped. So can you just talk about where the pressure came from? Was there more branding expense that was not included on the integration side?
Glen Post
Batya, on the revenue side, basically I think the largest item there is the $7 million of one time revenue that we had in the third quarter related to some of the prior period settlements with other carriers, which again wouldn't reoccur. We wouldn't expect to reoccur in the fourth quarter. So that I think is contributing to the revenue decline in 4Q.
In terms of margins, down about 100 basis points. First of all, we excluding as integration cost the branding costs that we are incurring, as we are the other integration cost. It's not really that. I think it's just the declining revenue contributing to a decline in margin from quarter-to-quarter. I have to look more to details to just see if I can explain to you better, and see if there are any one time items that we expect in the fourth quarter, but I'll get back to you on that.
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The EMBARQ acquisition created the huge revenue jump. I have VZ so no point in CTL. The Levi question was not answered really well which might be a red flag.
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