Qwest Communications International Inc., Koninklijke KPN N.V., and KPNQwest N.V. Enter into Definitive Settlement Agreement
Feb 21 14
On February 18, 2014, Qwest Communications International Inc. together with Koninklijke KPN N.V. and a number of individual affiliates of KPNQwest N.V., entered into a definitive settlement agreement with the trustees in the KPNQwest Dutch bankruptcy proceeding. In connection with Qwest's previously-announced preliminary oral settlement of this proceeding in October 2013, CenturyLink accrued a reserve that fully covers its payment under the definitive settlement agreement. Pursuant to the settlement agreement, Qwest paid approximately $235 million based on the exchange rate on December 31, 2013 to the KPNQwest bankruptcy estate on February 20, 2014. This settlement resolves all claims under the 2010 lawsuit filed by the Trustees against Qwest, KPN and others.
Qwest Communications International Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Provides Earnings Guidance for the Full Year of 2014
Feb 13 14
Qwest Communications International Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, total revenues were $1,379,185,000 against $1,278,588,000 a year ago. Income from operations was $127,012,000 against $94,427,000 a year ago. Income before income taxes and equity in earnings of unconsolidated affiliates was $100,042,000 against $55,085,000 a year ago. Income before equity in earnings of unconsolidated affiliates was $72,484,000 against $35,072,000 a year ago. Net income attributable to the company was $72,996,000 or $0.55 per diluted share against $34,974,000 or $0.30 per basic and diluted share a year ago. Adjusted EBITDA was $159,740,000 against $140,129,000 a year ago. Adjusted income from operations was $129,186,000 against $114,558,000 a year ago. Adjusted net income was $76,457,000 against $48,320,000 a year ago. Diluted adjusted earnings per share were $0.58 against $0.41 a year ago.
For the full year, total revenues were $5,099,545,000 against $4,865,513,000 a year ago. Income from operations was $462,333,000 against $396,435,000 a year ago. Income before income taxes and equity in earnings of unconsolidated affiliates was $323,116,000 against $267,428,000 a year ago. Income before equity in earnings of unconsolidated affiliates was $227,151,000 against $174,064,000 a year ago. Net income attributable to the company was $226,591,000 or $1.77 per diluted share against $177,546,000 or $1.51 per diluted share a year ago. Net cash provided by operating activities was $397,370,000 against $335,701,000 a year ago. Acquisition of property, equipment and software was $92,346,000 against $71,336,000 a year ago. Adjusted EBITDA was $611,602,000 against $543,718,000 a year ago. Adjusted income from operations was $504,098,000 against $445,430,000 a year ago. Adjusted net income was $268,940,000 against $208,931,000 a year ago. Diluted adjusted earnings per share were $2.10,000 against $1.77,000 a year ago.
For the full year of 2014, the company expects to achieve service revenues between $4.09 billion and $4.15 billion, representing a constant currency growth range of 7.4% to 9.0%, and diluted adjusted earnings per share of $2.33 to $2.46 per share, representing growth of 11.0% to 17.1% with diluted GAAP earnings per share between $2.26 and $2.40 per share, and an annual effective income tax rate estimated at approximately 30%.
CenturyLink, Inc. Announces Completion of Debt Tender Offer for Qwest Communications Notes Due 2018
Dec 13 13
CenturyLink Inc. and Qwest Communications International Inc. announced the completion of the previously announced debt tender offer commenced on November 14, 2013 by Qwest Communications for any and all of its 7.125% Notes due 2018. The Tender Offer expired at 12:00 midnight, New York City time, on December 12, 2013. As of the Expiration Time, $614,183,000 aggregate principal amount of the outstanding 2018 Notes (representing 76.77% of the outstanding 2018 Notes) had been validly tendered and not validly withdrawn. All $614,183,000 aggregate principal amount of such notes were validly tendered before the early tender deadline on November 26, 2013 and purchased by the company on November 27, 2013, and no additional 2018 Notes were tendered after such early tender deadline. Currently, $185,817,000 aggregate principal amount of 2018 Notes remain outstanding. On November 27, 2013, Qwest Communications called for redemption all of the 2018 Notes that remain outstanding following consummation of the Tender Offer at a price equal to 103.563% of the principal amount of notes to be redeemed plus accrued and unpaid interest relating to such redeemed notes up to, but not including, the redemption date. The redemption is expected to occur on December 27, 2013 in accordance with the terms of the indenture applicable to the 2018 Notes.