Alltel records fourth-quarter loss on one-time charge from buyout
Last updated Thursday, March 20, 2008 4:46 PM CDT in Business
By Arkansas News Bureau
LITTLE ROCK - A one-time $619 million charge associated with its sale to two private equity firms last year drove Alltel Corp.'s fourth-quarter earnings down to a $525 million loss, the company reported Thursday.
Excluding the charge, Alltel would have recorded a $94 million profit, compared to a $215.9 million profit in the same period a year earlier.
For the year, Alltel recorded a $183 million profit, which includes the impact of $653 million of pre-tax merger-related costs.
As a private company, Alltel is no longer required to report its earnings but did so to share information with institutional investors who have underwritten a major portion of the financing in its $24 billion sale to an affiliate of TPG Capital and GS Capital Partners.
Fourth-quarter revenues rose 9 percent since the same period a year earlier to $2.3 billion. On the year, revenues rose 12 percent over 2006 revenues to $8.8 billion.
Alltel added more than 1 million gross customers through internal growth in the fourth quarter, an increase of 14 percent. Customer additions totaled 3.6 million for the year, a 9 percent year-over-year rise.
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