Filed pursuant to Rule 424(b)(3)
File No. 333-133343
Prospectus Supplement No. 5
to Prospectus Dated May 10, 2006
Embarq Corporation
Restricted Shares of Common Stock
Restricted Stock Units and
Shares of Common Stock Issuable in Connection with the
Restricted Stock Units
This prospectus supplement supplements information contained in the prospectus dated May 10, 2006 relating to the offer and sale of restricted shares of our common stock, restricted stock units, and shares of our common stock issuable in connection with the restricted stock units issued in connection with our spin-off from Sprint Nextel Corporation and effective as of May 17, 2006, the distribution date for the spin-off, to current and former Sprint Nextel Corporation employees who held Sprint Nextel Corporation restricted stock or restricted stock units at that time and who did not become Embarq employees at the time of the spin-off. This prospectus supplement should be read in conjunction with, and may not be delivered or utilized without, the prospectus and any prior prospectus supplements. This prospectus supplement is qualified by reference to the prospectus and any prior prospectus supplements, except to the extent that the information in this prospectus supplement supersedes the information contained in the prospectus and any prior prospectus supplements.
This prospectus supplement includes our attached Current Report on Form 8-K dated July 21, 2006.
The securities offered hereby involve risks and uncertainties. These risks are described under the caption “Risk Factors” beginning on page 11 of the prospectus, as the same may be updated in prospectus supplements.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus supplement is July 21, 2006.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date | of Report (Date of earliest event reported): July 21, 2006 |
Embarq Corporation
(Exact name of Registrant as specified in its charter)
| Delaware | 001-32732 | 20-2923630 | ||
| (State of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
| 5454 W. 110th Street Overland Park, Kansas |
66211 | |||
| (Address of principal executive offices) | (Zip Code) |
(913) 323-4637
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On July 21, 2006, Embarq Corporation issued a press release announcing details for its investors call scheduled for July 27, 2006, to discuss the financial results for the Company’s recently completed second fiscal quarter and containing certain as adjusted historical financial information. A copy of this press release is furnished as Exhibit 99.1 and is incorporated herein by reference.
The information contained in this report shall be deemed to be “furnished” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |
| 99.1 | Press Release issued July 21, 2006 | |
2
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dated: July 21, 2006 | Embarq Corporation | |||||||
| By: |
/s/ Claudia S. Toussaint | |||||||
| Name: Title: |
Claudia S. Toussaint Vice President and Corporate Secretary | |||||||
3
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Press Release issued July 21, 2006 | |
4
Exhibit 99.1
|
|
 | |||
| NEWS RELEASE | ||||
Investor Relations Contact:
Trevor Erxleben, 866-591-1964, #3
investorrelations@embarq.com
Media Contact:
Keith Mitchell, 913-345-6661
keith.j.mitchell@embarq.com
Embarq Corporation Provides Details for Second Quarter 2006 Earnings
Release and Conference Call
Overland Park, KS - July 21, 2006 - Embarq Corporation (NYSE: EQ) announced that it will report second quarter financial results before the markets open on Thursday, July 27, 2006. Following its pre-market earnings release, Embarq will hold an open-access conference call beginning at 8:00 a.m. EDT.
Embarq Conference Call Information
Date: July 27
Time: 8:00 a.m. EDT
Call-in Number: (866) 245-2310 (U.S. and Canada) or (706) 679-0843 (International)
Please plan to dial in five minutes before the scheduled start time.
The audio and accompanying presentation will be available via a simultaneous webcast at www.embarq.com/investors.
For those unable to participate live, a replay of the call will be available until August 27, 2006 by dialing (800) 642-1687 (toll free in the U.S.) or (706) 645-9291 (outside the U.S.) as well as at Embarq’s Investor Relations website, www.embarq.com/investors. The accompanying presentation will also be archived at this website.
Historical Results
For periods prior to and including May 17, 2006, the date of Embarq’s spin-off from Sprint Nextel, reported operating income reflects the combined performance of the specific legal entities that were spun off from Sprint Nextel in accordance with
Embarq Corporation (NYSE: EQ) Page 1 of 5
generally accepted accounting principles (GAAP). The reported information for these entities prior to and including the date of separation does not include certain items that will be reflected in Embarq’s reported operating income for periods subsequent to May 17, 2006. These items primarily consist of the following:
| • | In-territory consumer and business long distance customers transferred to Embarq by Sprint Nextel, as well as certain in-territory equipment and professional service customers transferred to Sprint Nextel by Embarq; and |
| • | Other assets and liabilities related to the ongoing operations of our business transferred to Embarq by Sprint Nextel. |
In order to facilitate a comparison of Embarq’s historical operating performance to performance subsequent to the spin-off, the attached tables provide an as adjusted view of Embarq’s quarterly operating income for 2005 and the first quarter of 2006. Management uses this information and believes it is important to investors because it recasts historical information to reflect the current composition of our business and enables a more appropriate comparison with current information. The as adjusted financial information assumes the spin-off from Sprint Nextel had occurred on January 1, 2005 and includes the items described above. The as adjusted financial information is a non-GAAP measure and should be considered in addition to, but not as a substitute for, the information contained in our financial reporting.
About Embarq:
Embarq (NYSE: EQ) provides a complete suite of communications services to customers in its local service territories. Embarq, which is expected to rank among the Fortune 500, brings common-sense ideas, reliable service and a renewed commitment to the communities it serves. Embarq focuses on offering its customers practical, innovative products and competitive pricing. The company has approximately 20,000 employees and operates in 18 states offering local and long distance voice, data, high-speed Internet, wireless, and entertainment services. For more information, visit www.embarq.com.
# # #
Embarq Corporation (NYSE: EQ) Page 2 of 5
Embarq Corporation
As Adjusted Statements of Operating Income (unaudited)
($ in millions)
| Quarter Ended March 31, 2005 |
GAAP | LD Customer Transfers |
Pension | Shared Assets / Liabilities |
Other | As Adjusted | |||||||||||||||
| Net Operating Revenues |
|||||||||||||||||||||
| Voice |
$ | 1,082 | $ | 129 | $ | — | $ | — | $ | — | $ | 1,211 | |||||||||
| Data |
234 | 4 | — | — | 2 | 240 | |||||||||||||||
| Other |
83 | (17 | ) | — | — | — | 66 | ||||||||||||||
| Service revenues |
$ | 1,399 | $ | 116 | $ | — | $ | — | $ | 2 | $ | 1,517 | |||||||||
| Product revenues |
128 | (7 | ) | — | — | — | 121 | ||||||||||||||
| Net Operating Revenues |
1,527 | 109 | — | — | 2 | 1,638 | |||||||||||||||
| Operating Expenses |
|||||||||||||||||||||
| Cost of services |
351 | 61 | — | — | 1 | 413 | |||||||||||||||
| Cost of products |
117 | (6 | ) | — | — | — | 111 | ||||||||||||||
| Selling, general and administrative |
415 | 21 | (4 | ) | (36 | ) | — | 396 | |||||||||||||
| Depreciation and amortization |
245 | — | — | 22 | — | 267 | |||||||||||||||
| Total Operating Expenses |
1,128 | 76 | (4 | ) | (14 | ) | 1 | 1,187 | |||||||||||||
| Operating Income |
$ | 399 | $ | 33 | $ | 4 | $ | 14 | $ | 1 | $ | 451 | |||||||||
| Quarter Ended June 30, 2005 |
GAAP | LD Customer Transfers |
Pension | Shared Assets / Liabilities |
Other | As Adjusted | |||||||||||||||
| Net Operating Revenues |
|||||||||||||||||||||
| Voice |
$ | 1,062 | $ | 128 | $ | — | $ | — | $ | 1 | $ | 1,191 | |||||||||
| Data |
239 | 4 | — | — | 3 | 246 | |||||||||||||||
| Other |
83 | (16 | ) | — | — | — | 67 | ||||||||||||||
| Service revenues |
$ | 1,384 | $ | 116 | $ | — | $ | — | $ | 4 | $ | 1,504 | |||||||||
| Product revenues |
137 | (7 | ) | — | — | — | 130 | ||||||||||||||
| Net Operating Revenues |
1,521 | 109 | — | — | 4 | 1,634 | |||||||||||||||
| Operating Expenses |
|||||||||||||||||||||
| Cost of services |
349 | 59 | — | — | 2 | 410 | |||||||||||||||
| Cost of products |
120 | (6 | ) | — | — | — | 114 | ||||||||||||||
| Selling, general and administrative |
379 | 22 | (4 | ) | (37 | ) | 1 | 361 | |||||||||||||
| Depreciation and amortization |
246 | — | — | 23 | — | 269 | |||||||||||||||
| Total Operating Expenses |
1,094 | 75 | (4 | ) | (14 | ) | 3 | 1,154 | |||||||||||||
| Operating Income |
$ | 427 | $ | 34 | $ | 4 | $ | 14 | $ | 1 | $ | 480 | |||||||||
Embarq Corporation (NYSE: EQ) Page 3 of 5
| Quarter Ended September 30, 2005 |
GAAP | LD Customer Transfers |
Pension | Shared Assets / Liabilities |
Other | As Adjusted | |||||||||||||||
| Net Operating Revenues |
|||||||||||||||||||||
| Voice |
$ | 1,060 | $ | 129 | $ | — | $ | — | $ | — | $ | 1,189 | |||||||||
| Data |
249 | 4 | — | — | 3 | 256 | |||||||||||||||
| Other |
85 | (17 | ) | — | — | — | 68 | ||||||||||||||
| Service revenues |
$ | 1,394 | $ | 116 | $ | — | $ | — | $ | 3 | $ | 1,513 | |||||||||
| Product revenues |
209 | (7 | ) | — | — | — | 202 | ||||||||||||||
| Net Operating Revenues |
1,603 | 109 | — | — | 3 | 1,715 | |||||||||||||||
| Operating Expenses |
|||||||||||||||||||||
| Cost of services |
360 | 60 | — | — | 1 | 421 | |||||||||||||||
| Cost of products |
189 | (6 | ) | — | — | — | 183 | ||||||||||||||
| Selling, general and administrative |
390 | 21 | (4 | ) | (37 | ) | 1 | 371 | |||||||||||||
| Depreciation and amortization |
243 | — | — | 23 | — | 266 | |||||||||||||||
| Total Operating Expenses |
1,182 | 75 | (4 | ) | (14 | ) | 2 | 1,241 | |||||||||||||
| Operating Income |
$ | 421 | $ | 34 | $ | 4 | $ | 14 | $ | 1 | $ | 474 | |||||||||
| Quarter Ended December 31, 2005 |
GAAP | LD Customer Transfers |
Pension | Shared Assets / Liabilities |
Other | As Adjusted | |||||||||||||||
| Net Operating Revenues |
|||||||||||||||||||||
| Voice |
$ | 1,045 | $ | 126 | $ | — | $ | — | $ | 1 | $ | 1,172 | |||||||||
| Data |
261 | 4 | — | — | 3 | 268 | |||||||||||||||
| Other |
83 | (16 | ) | — | — | — | 67 | ||||||||||||||
| Service revenues |
$ | 1,389 | $ | 114 | $ | — | $ | — | $ | 4 | $ | 1,507 | |||||||||
| Product revenues |
214 | (7 | ) | — | — | — | 207 | ||||||||||||||
| Net Operating Revenues |
1,603 | 107 | — | — | 4 | 1,714 | |||||||||||||||
| Operating Expenses |
|||||||||||||||||||||
| Cost of services |
357 | 59 | — | — | 1 | 417 | |||||||||||||||
| Cost of products |
206 | (6 | ) | — | — | — | 200 | ||||||||||||||
| Selling, general and administrative |
410 | 21 | (3 | ) | (37 | ) | 1 | 392 | |||||||||||||
| Depreciation and amortization |
245 | — | — | 22 | 1 | 268 | |||||||||||||||
| Asset impairments |
80 | — | — | — | — | 80 | |||||||||||||||
| Total Operating Expenses |
1,298 | 74 | (3 | ) | (15 | ) | 3 | 1,357 | |||||||||||||
| Operating Income |
$ | 305 | $ | 33 | $ | 3 | $ | 15 | $ | 1 | $ | 357 | |||||||||
Embarq Corporation (NYSE: EQ) Page 4 of 5
| Year Ended December 31, 2005 |
GAAP | LD Customer Transfers |
Pension | Shared Assets / Liabilities |
Other | As Adjusted | |||||||||||||||
| Net Operating Revenues |
|||||||||||||||||||||
| Voice |
$ | 4,249 | $ | 512 | $ | — | $ | — | $ | 2 | $ | 4,763 | |||||||||
| Data |
983 | 16 | — | — | 11 | 1,010 | |||||||||||||||
| Other |
334 | (66 | ) | — | — | — | 268 | ||||||||||||||
| Service revenues |
$ | 5,566 | $ | 462 | $ | — | $ | — | $ | 13 | $ | 6,041 | |||||||||
| Product revenues |
688 | (28 | ) | — | — | — | 660 | ||||||||||||||
| Net Operating Revenues |
6,254 | 434 | — | — | 13 | 6,701 | |||||||||||||||
| Operating Expenses |
|||||||||||||||||||||
| Cost of services |
1,417 | 239 | — | — | 5 | 1,661 | |||||||||||||||
| Cost of products |
632 | (24 | ) | — | — | — | 608 | ||||||||||||||
| Selling, general and administrative |
1,594 | 85 | (15 | ) | (147 | ) | 3 | 1,520 | |||||||||||||
| Depreciation and amortization |
979 | — | — | 90 | 1 | 1,070 | |||||||||||||||
| Asset impairments |
80 | — | — | — | — | 80 | |||||||||||||||
| Total Operating Expenses |
4,702 | 300 | (15 | ) | (57 | ) | 9 | 4,939 | |||||||||||||
| Operating Income |
$ | 1,552 | $ | 134 | $ | 15 | $ | 57 | $ | 4 | $ | 1,762 | |||||||||
| Quarter Ended March 31, 2006 |
GAAP | LD Customer Transfers |
Pension | Shared Assets / Liabilities |
Other | As Adjusted | |||||||||||||||
| Net Operating Revenues |
|||||||||||||||||||||
| Voice |
$ | 1,038 | $ | 116 | $ | — | $ | — | $ | 1 | $ | 1,155 | |||||||||
| Data |
267 | 4 | — | — | 2 | 273 | |||||||||||||||
| Other |
81 | (15 | ) | — | — | — | 66 | ||||||||||||||
| Service revenues |
$ | 1,386 | $ | 105 | $ | — | $ | — | $ | 3 | $ | 1,494 | |||||||||
| Product revenues |
175 | (3 | ) | — | — | — | 172 | ||||||||||||||
| Net Operating Revenues |
1,561 | 102 | — | — | 3 | 1,666 | |||||||||||||||
| Operating Expenses |
|||||||||||||||||||||
| Cost of services |
378 | 50 | — | — | 1 | 429 | |||||||||||||||
| Cost of products |
160 | (3 | ) | — | — | — | 157 | ||||||||||||||
| Selling, general and administrative |
419 | 22 | — | (34 | ) | 1 | 408 | ||||||||||||||
| Depreciation and amortization |
238 | — | — | 25 | — | 263 | |||||||||||||||
| Total Operating Expenses |
1,195 | 69 | — | (9 | ) | 2 | 1,257 | ||||||||||||||
| Operating Income |
$ | 366 | $ | 33 | $ | — | $ | 9 | $ | 1 | $ | 409 | |||||||||
Note: Certain prior year amounts have been reclassified to conform to the current period presentation. Historical and pro forma Embarq results as presented in Embarq’s registration statements on Form 10 and Form S-1 filed with the SEC were presented consistent with the Sprint Nextel presentation of its local division results. In the 2006 first quarter, we modified the classifications of revenues and operating expenses consistent with Embarq management’s view of these activities. These reclassifications had no effect on total net operating revenues, total operating expenses or net income as previously reported.
Embarq Corporation (NYSE: EQ) Page 5 of 5