Alltel reported record wireless revenues and customer growth in the fourth quarter and for the full year, ending 2006 with nearly 12 million customers on the nation’s largest wireless network. Alltel reported fully diluted earnings per share under Generally Accepted Accounting Principles (GAAP) of 58 cents for the fourth quarter and $2.93 for the year. Fully diluted earnings per share from current businesses was 63 cents for the quarter and $2.19 for the year, an increase from the corresponding periods in 2005 of 58 percent and 20 percent, respectively.

In 2006, Alltel became a pure wireless company as it completed the spin-off and merger of its wireline business to form Windstream Corp. The company’s board of directors declared dividends of more than $500 million and approved $3 billion in share repurchases. By the end of 2006, Alltel had repurchased 28.5 million shares of common stock, representing more than 50 percent of the $3 billion authorization and almost 7.5 percent of total shares outstanding.

“Our company’s growth in revenues and earnings, for both the fourth quarter and for the full year, was driven by record-level customer additions as Alltel became a wireless-only business,” said President and Chief Executive Officer Scott Ford. “This was another year where Alltel demonstrated our commitment to providing value for our shareholders while improving customer service at all levels. In total, Alltel returned more than $6.7 billion in cash and Windstream stock to our shareholders. We ended the year with only $2.7 billion in outstanding debt and $1.8 billion in outstanding net debt, maintaining one of the strongest balance sheets in our industry. And, once completed, our share buyback will be one of the largest relative share repurchases over the past decade.”

Among the highlights for the fourth quarter:

* Revenues were $2.1 billion, a 14 percent increase from a year ago. Net income under GAAP was $216 million. Net income from current businesses was $235 million, a 51 percent increase from a year ago.
* Alltel added 228,000 net customers through internal growth, a 55 percent increase from a year ago. Post-pay churn was 1.47 percent and total churn was 1.92 percent, year-over-year improvements for the fourth consecutive quarter.
* Average revenue per wireless customer (ARPU) was $52.84, up 1 percent from last year. Data revenue per customer was $4.14, a 60 percent increase year-over-year.

“This was an outstanding strategic and operational year for our company as we continued to win more customers by offering innovative pricing plans, and an expanding selection of information and entertainment services,” Ford said. “Alltel offered a ground-breaking calling plan with My Circle and focused on improving customer service, both of which contributed to our success in growing a profitable customer base and reducing churn for both the quarter and over the entire year.”

Among the highlights for the year:

* Revenues were $7.9 billion, a 20 percent increase from 2005. Net income under GAAP was $1.1 billion. Net income from current businesses was $842 million, a 34 percent increase from the previous year.
* Alltel added 640,000 net customers through internal growth, an 87 percent increase. Post-pay churn was 1.57 percent and total churn was 2 percent, both improved from the previous year. The company also acquired more than 500,000 customers through the purchases of Midwest Wireless, First Cellular of Southern Illinois, Virginia Cellular and Cellular One in Amarillo, Texas.
* ARPU was $52.68, up 2 percent from last year. Data revenue per customer was $3.52, a 62 percent increase from 2005.
* Equity free cash flow from current businesses was $709 million, a 35 percent increase. Net cash provided from operations was $1.5 billion.

Alltel operates America’s largest wireless network, which delivers voice and advanced data services nationwide to nearly 12 million customers. Headquartered in Little Rock, Ark., Alltel is a Forbes 500 company with annual revenues of nearly $8 billion.