2. CenturyLink Is … CenturyLink is a leading provider of high-quality broadband, entertainment and voice services over its advanced communications networks to consumers and businesses in 33 states. CenturyLink, headquartered in Monroe, Louisiana, is an S&P 500 Company and is included in the Fortune 500 list of America’s largest corporations.
7. Stronger Connected On July 1, 2009, CenturyTel completed its acquisition of Embarq Corporation in a tax free, stock-for-stock transaction, creating one of the leading communications companies in the United States. “ In addition to bringing together the complementary assets, geographic coverage and outstanding employees of both companies, this combination unites two corporate cultures that share a strong commitment to their customers, employees and communities. I look forward to working with our team to continue providing outstanding service and enhanced offerings to our customers.” Glen F. Post, III CEO and President
17. Our Leadership Team Bill Cheek President, Wholesale Operations Glen Post Chief Executive Officer and President Karen Puckett Chief Operating Officer David Cole Senior Vice President, Operations Support Stewart Ewing Executive Vice President, Chief Financial Officer and Assistant Secretary Stacey Goff Executive Vice President, General Counsel and Secretary Tom Gerke Executive Vice Chairman CenturyLink Senior Leadership Team
CenturyLink is a leading provider of high-quality broadband, entertainment and voice services over its advanced communications networks to consumers and businesses in 33 states. CenturyLink, headquartered in Monroe, Louisiana, is an S&P 500 Company and is included in the Fortune 500 list of America’s largest corporations.
We trace our roots to the 1930s as a small telephone company in Oak Ridge, Louisiana, that served fewer than 100 customers. Clarke Williams, our founder, ran the company as he lived his life … with concern for others, a positive attitude and integrity above all else.
If appropriate to the audience, additional information about the values is provided below: Fairness (in reality, following the Golden Rule) – Treat others as you would want to be treated. This was particularly important to our company’s founder, Clarke Williams, and we continue to make it a top priority today. Honesty and Integrity – There’s no compromise here, even if it may cost us a sale or business opportunity. This is more important than ever as we fight to win against our competition. Commitment to Excellence – We must do the very best job we can do at every opportunity; go the extra mile to serve customers. Positive Attitude – Don’t underestimate the power of attitude. We all have the choice to be either negative or positive – we ask our team to choose the positive. It can be contagious. Respect – We respect each other, our customers and our communities. Faith – Believing in the best of ourselves and our co-workers – confidence in our ability to succeed – is crucial. Perseverance – We know we will face challenges, but we can’t take our eyes and our wills off our ultimate goal. We must persevere to overcome challenges, take advantage of opportunities and be successful.
Always knowing that we are, indeed, stronger connected, our company – once known as Century Telephone Enterprises and later CenturyTel – grew through acquisition, expanding from three states in 1968 to 22 states in 2008, including Wisconsin, Missouri, Washington, Alabama and other states in the heartland. In 2003 we acquired a regional fiber network that became the backbone of our wholesale business, and an integral piece of our advanced communications network.
On July 1, 2009, CenturyTel completed its acquisition of Embarq Corporation in a tax free, stock-for-stock transaction, creating one of the leading communications companies in the United States.
The benefits of consolidating these two successful companies include: the creation of an industry-leading communications provider an expanded suite of products and solutions for our communities enhanced employee opportunities over time from a larger company greater financial strength and stability the uniting of an experienced, capable leadership team. In addition, we expect to generate significant annual operating efficiencies of approximately $475 million within the first three years.
On July 1, 2009, we also began operating under the name CenturyLink, with Admiral William A. Owens as Chairman of the Board and Glen F. Post III as Chief Executive Officer and President.
Looking at this map and considering the scale and scope of our network assets, you can begin to imagine the potential opportunities ahead of us to offer our customers expanded products and services across the country. During 2009, we expanded our high-speed optical network by approximately 10,000 miles. It now connects 90 percent of our service areas, giving us greater control over operating costs and creating new revenue opportunities. At year’s end, 89 percent of our access lines were broadband-enabled, and 53 percent of these are capable of speeds of 6 Mbps or higher.
We served 2.2 million broadband customers at the end of 2009, up nearly 9 percent over the combined CenturyTel and Embarq totals at year-end 2008. Our advanced broadband solutions include Internet service for both the value-conscious and speed-conscious consumer. Our Internet Protocol Television (IPTV) service delivers 250 all-digital, high-definition channels over a high-speed Internet connection in select markets. Business customers can choose from a range of secure, reliable, high-speed data solutions – including nationwide Ethernet – with 24/7 customer service support. Our Multiprotocol Label Switching (MPLS) service provides traffic management capabilities across multiple network protocols, enabling business customers to more effectively manage their networks.
If you look at our company’s financial performance in the 15 year period from 1993-2008, the numbers are pretty impressive. Excluding non-recurring items and adjusting for goodwill amortization accounting rule changes: Revenues and Operating Cash Flow have grown at a compounded annual growth rate of 12.3% and 12.5% respectively. Operating Income and Earnings Per Share (EPS) grew at a Compounded Annual Growth Rate of approximately 12%, while Net Income grew at a Compounded Annual Growth Rate of nearly 11%. Free Cash Flow reached an annual record of more than $584 million in 2008 compared to a negative $50 million in 1993.
We have a great team at CenturyLink. Our employees are hardworking, skilled and dedicated, and we recognize that their talents, experience and commitment are our greatest assets. We are committed to providing a positive work environment where each employee can grow and reach their potential.
With our robust fiber network, we can more effectively provide advanced broadband services – such as nationwide Ethernet, Internet Protocol Television (IPTV) and Multiprotocol Label Switching (MPLS) service (a technology for speeding up network traffic flow and making it easier to manage) – to our much larger customer base.
At CenturyLink, our regional operating model puts sales and service decision making close to our customers. Our high-quality, integrated customer care system provides the support needed to execute customer-driven decisions. CenturyLink’s Wholesale Operations was recognized by ATLANTIC ACM with four 2010 “Best in Class” awards for Provisioning, Customer Service, Sales Representatives and Billing. Customer Service and the Neighborhood Queue In an effort to enhance the experience that customers receive when calling CenturyLink for service, our Customer Service Representatives are organized along a “neighborhood” model. Under this model, customers call us the way they always have. The behind-the-scenes call delivery strategy is what’s different. Calls are assigned to neighborhoods (or queues), so the customer can work with a CSR familiar with their local area. This call handling approach fosters greater customer and employee satisfaction, operational quality and service effectiveness.
This map reflects our five regions or market clusters across the U.S., which are led by a region president. The Western Region is headquartered in Las Vegas, NV and includes the states of WA, OR, CA, MT, ID, NV, CO, WY, NE and NM. The Northeast Region is headquartered in La Crosse, WI and includes the states of MN, IA, IN, IL, WI, OH, MI, NJ and PA. The Mid-Atlantic Region is headquartered in Wake Forest, NC and includes the states of VA, NC, SC, GA and TN. The Southern Region is headquartered in Apopka, FL and includes the states of AL and FL. The South Central Region is headquartered in Wentzville, MO and includes the states of KS, OK, TX, MO, AR, LA and MS. These regions include a total of 22 markets or service area clusters that are led by general managers and their local team of employees that bring sales and service decision-making closer to the customer. In ____, CenturyLink has ____ employees with an estimated annual payroll of ____. CenturyLink has invested more than in this state where it serves approximately _____ access lines.
Our leadership team has spent a combined total of 200 years in the communications industry, many of which were spent making acquisitions and managing integrations. With such a stable base of knowledge, experience and leadership, CenturyLink is well positioned to succeed in an industry that continues to transition to a broadband-driven model.
CenturyLink is committed to delivering the latest technologies to the communities we serve – large or small – giving people the freedom to live and work where they choose. We also support causes important to these communities through corporate giving, sponsorships and employee volunteerism. We celebrated the combining of CenturyTel and Embarq with a company-wide food drive, which resulted in 484,000 pounds of food donated to local food pantries across our communities.