Form 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the month of December 2003
(Commission File No. 000-24876)
TELUS Corporation
(Translation of registrant's name into English)
21st Floor, 3777 Kingsway
Burnaby, British Columbia V5H 3Z7
Canada
(Address of principal registered offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
X
Form 20-F _____ Form 40-F _____
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
X
Yes _____ No _____
This Form 6-K consists of the following:
TELUS News Release
December 18, 2003
TELUS Reaffirms 2003 Guidance and Sets 2004 Financial and Operating Targets
VANCOUVER,B.C. - TELUS Corporation (TSX: T and T.A / NYSE: TU) today
reaffirmed guidance for 2003, which was last updated on October 31, and
announced 2004 financial and operating targets that reflect continued
execution of the Company's strategy focusing on wireless, data and IP growth.
Robert McFarlane, executive vice president and CFO said, "TELUS remains on
track to achieve previous guidance for its 2003 financial and operating
targets, which reflect significantly improved profitability and cash flow, and
material debt deleveraging. In fact, it appears TELUS will report 2003 results
that represent some of the best growth rates in the global telecom industry."
"The 2004 financial targets announced today reflect a continuation in the
trend for material improvements in profitability, cash flow growth and lower
debt levels," said Robert McFarlane. "We are targeting to achieve a 28%
increase in earnings per share based on consolidated revenue growth of five
per cent and EBITDA growth of seven per cent driven by strong wireless growth.
Combining this with slightly lower capital expenditures is expected to allow
TELUS to generate between $950 million to $1.05 billion of free cash flow and
continue to materially reduce debt levels consistent with new long-term
leverage policy objectives."
The 2004 outlook for free cash flow represents a 56% increase over similarly
defined free cash flow for 2003. This is expected to provide $750 to $850
million available for the reduction of debt and significant reduction in the
accounts receivable securitization program. TELUS has set new debt leverage
targets, including further reducing its net debt to EBITDA ratio to 2.5 times
or less by December 2004 and in the longer term, reducing net debt to EBITDA
ratio to 2.2 times or less and net debt to capital to 45 to 50% (previously
50%).
The 2004 financial targets and 2003 guidance are as follows:
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2004 Targets 2003 Guidance(1) Change
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Consolidated
Revenues $7.45 to $7.55 billion $7.1 to $7.2 billion 5%
EBITDA(2)(excluding restructuring) - $2.8 to $2.85 billion -
EBITDA (3) $2.95 to $3.05 billion $2.775 to $2.825 billion 7%
Earnings per share $1.05 to $1.25 $0.85 to $0.95 28%
Capital expenditures approx.$1.225 billion approx. $1.25 billion (2)%
Free cash flow (2003 method) (4) $1.0 to $1.1 billion $915 to $965 million 12%
Free cash flow (2004 method) (5) $950 million to $1.05 billion $615 to $665 million 56%
Net debt to EBITDA 2.5 times or less 2.7 times or less -
Communications segment
Revenue(external) $4.8 to $4.85 billion $4.8 to $4.85 billion -
Non-ILEC revenue approx. $610 million approx. $555 million 10%
EBITDA (2)(excluding restructuring) - $2.025 to $2.05 billion -
EBITDA (3) $1.975 to $2.025 billion $2.0 to $2.025 billion (1)%
Non-ILEC EBITDA approx. $5 million approx. $(30) million $35M
Capital expenditures approx. $875 million approx. $875 million -
High-speed Internet subscriber
net adds approx. 125,000 approx. 150,000 (17)%
Mobility segment
Revenue(external) $2.65 to $2.7 billion $2.3 to $2.35 billion 15%
EBITDA (2) $975 million to $1.025 billion $775 to $800 million 27%
Capital expenditures approx. $350 million approx. $375 million (7)%
Wireless subscriber net additions 375,000 to 425,000 approx. 400,000 -
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(1) 2003 guidance unchanged from updated guidance of October 31, 2003
other than Consolidated, Communications and Mobility Capital
expenditures, and Non-ILEC revenue.
(2) Earnings Before Interest, Taxes, Depreciation and Amortization is
defined as Operating revenues less Operations expense. Guidance for
2003 excludes estimated Restructuring and workforce reduction costs
of $25 million.
(3) EBITDA guidance for 2003 and 2004 includes estimated Restructuring
and workforce reduction costs of $25 million and $30 million,
respectively.
(4) Defined as EBITDA less Capital expenditures, cash interest, cash
taxes and cash dividends. Guidance for 2003 excludes Restructuring
and workforce reduction costs. Guidance for 2004 reflects adoption of
CICA Handbook section 3870 for Stock-based compensation and other
stock-based payments.
(5) Defined as EBITDA less Capital expenditures, cash interest, cash
taxes, cash dividends, cash restructuring and cash stock
compensation. Guidance for 2003 adjusted here to align with revised
definition of cash flow which includes Stock-based compensation
expenses and Restructuring and workforce reduction costs.
For TELUS Communications, the wireline reporting segment, EBITDA is expected
to be flat year-over-year due to operating efficiencies being offset by the
impact of items such as price cap regulation and expensing of stock
compensation in accordance with the recommendations in section 3870 of the
CICA Handbook, Stock-based compensation and other stock-based payments,
effective January 1, 2004 on a prospective basis.
For TELUS Mobility, the wireless reporting segment, EBITDA growth is expected
to increase approximately 27% driven by a 15% increase in revenues and
continued expansion of economies of scale.
Key Assumptions & Sensitivities
For projection purposes, the following assumptions have been made: economic
growth consistent with recent provincial and national estimates by the
Conference Board of Canada; continued softness in wireline demand; no material
change in pension expense; 3.5 to 4.0% wireless market penetration gain; and
approximately 15% industry growth in high speed Internet subscribers in TELUS
incumbent territories in B.C., Alberta and Quebec. Commencing in 2004, TELUS
is adopting recently confirmed recommendations in CICA Handbook section 3870
for Stock-based compensation and other stock-based payments, estimated to be a
$45 million expense. No impact has been assumed for the possibility of a work
stoppage resulting from ongoing collective bargaining negotiations in Alberta
and B.C.
We also encourage investors to read the forward looking statements below for
the various economic, competitive, regulatory and company factors that could
cause actual future financial and operating results to differ from those
currently expected.
About TELUS
TELUS (TSX: T, T.A; NYSE: TU) is the largest telecommunications company in
Western Canada and the second largest in the country, with over $7 billion of
annual revenue, 4.9 million network access lines and 3.3 million wireless
subscribers. The company provides subscribers with a full range of
telecommunications products and services including data, voice and TELUS
Mobility wireless services across Canada, utilizing next generation internet-
protocol-based network technologies. TELUS was a premier founding supporter of
the successful bid to bring the 2010 Winter Olympic and Paralympic Games to
Canada. For more information about TELUS, please visit www.telus.com.
For more information, please contact:
Investor relations:
John Wheeler, (780) 493-7310 or Robert Mitchell, (416) 279-3219
Media relations:
Nick Culo, (780) 493-7236
Forward-Looking Statements
==============================================================================
This news release contains statements about expected future events and
financial and operating results of TELUS Corporation ("TELUS" or the
"Company") that are forward-looking and subject to risks and uncertainties.
TELUS' actual results, performance or achievement could differ materially from
those expressed or implied by such statements. Such statements are qualified
in their entirety by the inherent risks and uncertainties surrounding future
expectations and may not reflect the potential impact of any future
acquisitions, mergers or divestitures. Factors that could cause actual results
to differ materially include but are not limited to: general business and
economic conditions in TELUS' service territories across Canada and future
demand for services; competition in wireline and wireless services, including
voice, data and Internet services and within the Canadian telecommunications
industry generally; re-emergence from receivership of restructured
competitors; levels of capital expenditures; corporate restructurings; success
of operational and capital efficiency programs including maintenance of
customer service levels; amount and variability of stock-based compensation
expense; success of integrating acquisitions; network upgrades, billing system
conversions, and reliance on legacy systems; implementation of new customer
relationship management software; development and introduction of new products
and services; supplier/vendor reliability and viability; realization of tax
savings; the impact of credit rating changes; availability and cost of capital
including renewal of credit facilities; financial condition and credit risk of
customers affecting collectibility of receivables; legal and regulatory
compliance of employees and key stakeholders; adverse regulatory action;
attraction and retention of key personnel; collective labour agreement
negotiations and outcome of conciliation efforts; future costs of retirement
and pension obligations and returns on invested pension assets; technological
advances; the final outcome of pending or future litigation; the effect of
environmental, health and safety concerns; man-made and natural disasters; and
other risk factors discussed herein and listed from time to time in TELUS'
reports, comprehensive public disclosure documents, including the Annual
Information Form, and in other filings with securities commissions in Canada
and the U.S.
The forward-looking statements contained in this news release represent TELUS'
expectations as of December 18, 2003 and accordingly, are subject to change
after such date. TELUS disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.
==============================================================================
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: December 18, 2003
TELUS Corporation
"James W. Peters"
_____________________________
Name: James W. Peters
Title: Corporate Secretary