Alltel Terrell Williams ACG2021 SECTION 003

1
AlltelTerrell Williams ACG2021 SECTION 003

•  

2
Executive Summary

• Alltel had a great year in 2005. They grew
  tremendously, due to the acquisition and merger
  of other major and minor wireless companies, such
  as US Cellular and Cingular wireless. Money was
  spent on replacing damaged networks and
  facilities after hurricane Katrina, but they
  helped their employees during the disaster.
• http//phx.corporate-ir.net/phoenix.zhtml?c74159
  pirol-reportsAnnual

3
Part A. Introduction

• Scott T. Ford is the CEO
• Little Rock, Arkansas is the location of the home
  office
• Ending date of latest fiscal year was 12-31-05
• Alltel provides multiple services (television,
  satellite, mobile phone, wireless headphones,
  etc.).
• The blue areas are Alltels main coverage areas.

4
Part A. Audit Report

• Thomson Financial is the independent auditor for
  Alltel.
• Alltel is in great financial standing. They have
  a lot of different resources that is providing
  the corporation with income. If they lose money
  in one area the other areas of business make up
  for that small portion of loss.

5
Part A. Stock Market Information

• 56.97 is the recent stock price
• 57.55 is the high for the year
• 47.48 is the low for the year
• Dividend per share
• The information was given on 10/ 7/06
• Alltel is in very good standing and seems that it
  will stay that way or get stronger.
• http//phx.corporate-ir.net/phoenix.zhtml?c74159
  pirol-whoIs
• http//www.alltel.com/corporate/media/history_deta
  il.html

6
Part B. Industry Situation and Company Plans

• Alltel is a very strong corporation. The business
  is only becoming stronger, due to the acquiring
  of US Cellular and the agreement between them
  and two of the most recognizable wireless
  companies in Sprint and Cingular.
• In the last few years, Alltel has more than
  tripled their revenues and operating income. Not
  to mention, their customer base has grown
  tremendously.
• http//phx.corporate-ir.net/phoenix.zhtml?c74159
  pirol-whoIs
• http//www.alltel.com/corporate/media/history_deta
  il.html

7
Part C. Income Statement

• The format is that of a multistep format.
• 2004
  2005
• charts in millions
• Gross profit it increasing which means that
  Alltel is growing and earning more revenue.

Gross Profit 4,796.40 5,427.90
Net Income Operations 2,466.80 2,697
Net Income 1,046.20 1,331.40
8
Part C. Balance Sheet
2004 2005
Total liabilities 10,998.6 9475.00
Stockholders equity 13,015.5 7,128.7
Total assets 24,013.10 16,603.7

• charts in millions
• The assets account has changed the most with the
  companies outstanding growth. The liabilities are
  decreasing.

9
Part C. Statement of Cash Flows

• Cash flows from operations are more than the net
  income for the past two years
• The Alltel corporation is growing through many
  long lived assets. The company is buying
  property and investing in itself.
• The primary source of the companies financing is
  through their stock sales.
• Overall, the cash has increased a great deal over
  the past two years.

10
Part D. Accounting Policies

• Alltels accounting policies are the general
  accepted policies.
• Alltel offers retirement plans, stock option
  plans, debt, supplemental cash flow information,
  income taxes, contingencies, preferred and common
  stock, employee stock ownership plans, quarterly
  financial data, and business segments.

11
Part E. Financial Analysis Liquidity Ratios

• 2004
  2005
• Working Capital 1560.5
  2960.6
• Current Ratio 1.82
  2.36
• Working capitol increased which allowed
  the
• current ratio to increase.

12
Part E. Financial AnalysisProfitability Ratios

• 2004
  2005
• Profit margin 12.69 14
• Asset turnover .50 .40
• Return on assets 6.30 7.62
• Return on equity 14.7 13.2
• The return on assets has increased, which means
  that income is on the rise.

13
Part E. Financial AnalysisSolvency Ratio

• Debt to equity
• 2004
  2005
• 1.32
  .84
• Debt to Equity ratio is greatly improving and
  Alltel is starting to be owned by its
  stockholders.

14
Part E. Financial AnalysisMarket Strength Ratios

• 
  2004 2005
• Price/earnings per share 17.5 15.9
• Dividend yield .85 .88
• The price/earnings ratio per share has increased
  for 2005. This is a good sign for the
  stockholders.