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 2004
(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 17, 2004
TELUS sets 2005 financial and operating targets
2004 guidance increased
TELUS Corporation (TSX: T and T.NV / NYSE: TU) announced 2005 financial
and operating targets that reflect continued successful execution of the
Company's strategy focusing on growth in wireless, data and Internet. In
addition, TELUS revised upwards its 2004 operating earnings and earnings
per share guidance.
"We are clearly finishing 2004 in strong fashion as reflected by today's
announcement that we are making favourable guidance changes to five
different annual measures," said Robert McFarlane, executive vice
president and CFO. "Improved trends experienced in our Mobility wireless
segment and in our central Canadian Non-ILEC wireline operations are
contributing to improved EBITDA and to a five cent upward revision in
our consolidated EPS guidance range to $1.50 to $1.55 per share for
2004. Achievement of this updated 2004 guidance means that we will have
met or exceeded our consolidated original targets set a year ago for
revenue, EBITDA, EPS, free cash flow and net debt to EBITDA."
"The positive trend is expected to continue as reflected by the 2005
targets announced today. The 2005 targets reflect strong growth in both
revenue and profitability with the target range for consolidated EPS
representing an 8 to 21 per cent increase over that expected for 2004.
With capital expenditures remaining near 2004 levels, we expect another
strong year of free cash flow of over $1.2 billion in 2005. This bodes
well for our ability to successfully overcome competitive pressures and
continue to drive shareholder value."
The 2005 financial targets and updated 2004 guidance are as follows:
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2005 Targets Latest 2004 Guidance Change(1)
S>
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Consolidated
Revenues $7.9 to $8.0 billion $7.5 to $7.575 billion 5 to 6%
EBITDA (2) $3.2 to $3.3 billion $3.05 to $3.1 billion(4) 4 to 7%
Earnings per share $1.65 to $1.85 $1.50 to $1.55(4) 8 to 21%
Capital expenditures $1.3 to $1.4 billion approx. $1.3 billion 0 to 8%
Free cash flow (3) $1.2 to $1.3 billion $1.25 to $1.3 billion (6) to 2%
Communications segment
Revenue (external) $4.70 to $4.75 billion $4.725 to $4.775 billion (1) to 0%
Non-ILEC revenue $600 to $650 million $545 to 555 million(4) 9 to 18%
EBITDA (2) $1.85 to $1.90 billion $1.925 to $1.95 billion (5) to (2)%
Non-ILEC EBITDA $0 to $10 million $(20) to (25) million(4) -
Capital expenditures $950 to 1,000 million approx. $950 million 0 to 5%
High-speed Internet subscriber net adds approx. 100,000 approx. 125,000 (20)%
Mobility segment
Revenue (external) $3.2 to $3.25 billion $2.775 to $2.8 billion 15 to 17%
EBITDA (2) $1.35 to $1.40 billion $1.125 to $1.15 billion(4) 19 to 23%
Capital expenditures $350 to $400 million approx. $350 million 0 to 14%
Wireless subscriber net additions 425,000 to 475,000 425,000 to 475,000 no change
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(1) Annual change based on low and high-end 2005 targets compared to
midpoint of latest 2004 guidance.
(2) Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) is defined as Operating revenues less Operations expense less
Restructuring and workforce reduction costs. Restructuring and workforce
reduction costs are estimated to be approximately $50 million in 2004
and $100 million in 2005.
(3) Defined as EBITDA, adding (deducting) net non-cash share-based
compensation expense (payments), adding restructuring costs net of cash
payments, and deducting capital expenditures, net cash interest paid,
and net cash taxes.
(4) Items that have been updated since last guidance provided on October
29, 2004.
For TELUS Communications, the wireline reporting segment, EBITDA is
expected to decline 2 to 5% in 2005 resulting from slightly lower
wireline revenue and increased restructuring costs partially offset by
continued operating efficiencies. Excluding restructuring and workforce
reduction costs, Communications EBITDA is expected to be between $1.95
to $2.0 billion, which is approximately flat with that for 2004.
Communications revenue growth in the non-incumbent territory in Central
Canada is expected to increase 9 to 18% while targeting positive EBITDA
in 2005.
For TELUS Mobility, the wireless reporting segment, EBITDA growth is
expected to increase 19 to 23% driven by a 15 to 17% increase in
revenues, continued economies of scale, cost containment and expansion
in wireless subscribers.
The double-digit earnings per share increase is not only being driven by
higher operating profitability but also by reduced depreciation due to
improved capital efficiency in recent years and by lower financing costs
as a consequence of lower debt levels. This significant growth in EPS is
despite the 2004 estimate including 17 cents of positive impacts from
the settlement of tax matters in the first nine months, which are not
projected to reoccur in 2005.
As previously announced, TELUS continues to have certain long-term
policy guidelines such as net debt to EBITDA of 2.2 times or less, net
debt to total capital of 45 to 50%, and a dividend payout ratio
guideline of 45 to 55% of net earnings. The latest 2004 guidance and
2005 targets announced today are in compliance with these policy
guidelines.
Key Assumptions & Sensitivities
For 2005 projection purposes, a number of assumptions were made
including: economic growth consistent with recent provincial and
national estimates by the Conference Board of Canada; continued softness
in wireline demand; an approximate four point wireless market
penetration gain; $100 million restructuring and workforce reduction
expenses ($50 million in 2004); effective tax rate of approximately 36%
plus Large Corporations Tax. EPS, cash balances, net debt and common
equity may be affected by the potential purchases of up to 25.5 million
TELUS shares under the normal course issuer bid accepted by the Toronto
Stock Exchange that can commence on December 20, 2004. No impact has
been assumed for the possibility of a work stoppage resulting from
collective bargaining with unionized employees, if arbitration is not
required.
We also encourage investors to read the forward looking statements
below, and in related disclosure, 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.NV; NYSE: TU) is the largest telecommunications company
in Western Canada and the second largest in the country, with $7.5
billion of annual revenue, 4.8 million network access lines and 3.75
million wireless customers. The company provides customers with a full
range of telecommunications products and services including data, voice
and wireless services across Canada, utilizing next generation
Internet-based technologies. TELUS was a premier founding supporter of
the successful bid to bring the 2010 Olympic and Paralympic Winter Games
to Canada. For more information about TELUS, please visit www.telus.com.
For more information, please contact:
Media Relations:
Nick Culo, (780) 493-7236, nick.culo(at)telus.com
Investor Relations:
John Wheeler, (780) 493-7310, ir(at)telus.com
Forward-looking statements
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This document contains statements about expected future events and
financial and operating results of TELUS Corporation (TELUS or the
Company) that are forward-looking. By their nature, forward-looking
statements require the Company to make assumptions and are subject to
inherent risks and uncertainties. There is significant risk that
predictions and other forward-looking statements will not prove to be
accurate. Readers are cautioned not to place undue reliance on
forward-looking statements as a number of factors could cause actual
future results, conditions, actions or events to differ materially from
the targets, expectations, estimates or intentions expressed in the
forward-looking statements.
Factors that could cause actual results to differ materially include but
are not limited to: competition; economic fluctuations; financing and
debt requirements; tax matters; dividends; share repurchase
implementation; human resources (including the outcome of outstanding
labour relations issues); technology (including reliance on systems and
information technology); regulatory developments; process risks; health
and safety; strategic partners; litigation; business continuity events
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 (filed on SEDAR at www.sedar.com) and the United
States (filed on EDGAR at www.sec.gov).
For further information, see the Risks and uncertainties section in
TELUS' 2003 annual Management's discussion and analysis, and significant
updates in interim reports for the first, second and third quarters of
2004.
The Company disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise.
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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 17, 2004
TELUS Corporation
"James W. Peters"
_____________________________
Name: James W. Peters
Title: Corporate Secretary