Grew consumer revenue sequentially
Expanded enterprise contribution margin
Improved debt maturity profile
"Our first quarter achievements demonstrate solid progress on our 2016 priorities. We produced sequential revenue growth in our consumer business unit through our upgraded broadband network that now offers
"Our vision is to provide a best-in-class customer experience through our network and our people. This is centered on providing advanced, reliable services to our customers while making smart, targeted investments to increase the value of our extensive network and generate higher returns for our shareholders. Through our focused operational strategy, we have multiple paths to drive improving financial results," Thomas said.
Pro Forma Financial Results
Total revenues and sales were
Consumer and small business ILEC
service revenues were
Carrier service revenues were
Enterprise service revenues were
Small business CLEC service revenues were
Adjusted OIBDAR, which excludes the lease payment to Communications Sales & Leasing, Inc. (CS&L), was
Share Repurchase Program and Quarterly Dividend
During the quarter, Windstream completed the
Balance Sheet
During the quarter, Windstream issued a
GAAP Financial Results
In the first quarter under Generally Accepted Accounting Principles (GAAP), Windstream reported total revenues and sales of
GAAP results include a non-cash impairment charge of
Windstream plans to monetize the holdings in the future and use the proceeds to further reduce debt.
Financial Outlook for 2016
Windstream today affirmed its previously provided financial guidance for the year.
The company expects total service revenue of
Adjusted capital expenditures are expected to be between
The company expects cash interest expense of approximately
Conference Call
Windstream will hold a conference call at
To access the call:
Interested parties can access the call by dialing 1-877-374-3977, conference ID 86862448.
To access the call replay:
A replay of the call will be available beginning at
Webcast information:
The conference call also will be streamed live over the company's website at www.windstream.com/investors. Financial, statistical and other information related to the call will be posted on the site. A replay of the webcast will be available on the website beginning at
About Windstream
Pro forma results adjust results of operations under GAAP to exclude the impacts of the disposed data center and consumer CLEC businesses and directory publishing operations and all merger and integration costs related to strategic transactions. A reconciliation of pro forma results to the comparable GAAP measures is available on the company's Web site at www.windstream.com/investors. OIBDA is operating income before depreciation and amortization and merger and integration costs. Adjusted OIBDA adjusts OIBDA for the impact of restructuring charges, pension expense and stock-based compensation. Adjusted OIBDAR is adjusted OIBDA before the CS&L lease payment. Adjusted free cash flow is adjusted OIBDA, excluding merger and integration expense, minus cash interest, cash taxes and adjusted capital expenditures, plus dividends received from CS&L.
Windstream claims the protection of the safe-harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to uncertainties that could cause actual future events and results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include, but are not limited to, 2016 guidance for service revenue, adjusted OIBDAR and adjusted capital expenditures, along with statements regarding free cash flow, cash interest expense and cash taxes in 2016; expectations regarding the "network first" strategy to improve financial performance and increase market share and achievement of 2016 priorities; expectations regarding revenue trends and improving margins
in the business segments; growth in adjusted OIBDAR; the anticipated benefits of Project Excel designed to accelerate certain broadband deployments and improve network capabilities; the anticipated increase in availability of higher
Factors that could cause actual results to differ materially from those contemplated in Windstream's forward-looking statements include, among others:
In addition to these factors, actual future performance, outcomes and results may differ materially because of more general factors including, among others, general industry and market conditions and growth rates, economic conditions, and governmental and public policy changes.
Windstream undertakes no obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. The foregoing review of factors that could cause Windstream's actual results to differ materially from those contemplated in the forward-looking statements should be considered in connection with information regarding risks and uncertainties that may affect Windstream's future results included in other filings by Windstream with the
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
(In millions, except per share amounts) | THREE MONTHS ENDED | ||||||||||||||||
Increase (Decrease) | |||||||||||||||||
2016 | 2015 | Amount | % | ||||||||||||||
UNDER GAAP: | |||||||||||||||||
Revenues and sales: | |||||||||||||||||
Service revenues | $ | 1,340.6 | $ | 1,381.8 | $ | (41.2 | ) | (3 | ) | ||||||||
Product sales | 32.8 | 36.8 | (4.0 | ) | (11 | ) | |||||||||||
Total revenues and sales | 1,373.4 | 1,418.6 | (45.2 | ) | (3 | ) | |||||||||||
Costs and expenses: | |||||||||||||||||
Cost of services (exclusive of depreciation and amortization included below) | 668.8 | 680.0 | (11.2 | ) | (2 | ) | |||||||||||
Cost of products sold | 28.9 | 31.9 | (3.0 | ) | (9 | ) | |||||||||||
Selling, general and administrative | 203.8 | 225.0 | (21.2 | ) | (9 | ) | |||||||||||
Depreciation and amortization | 304.8 | 340.7 | (35.9 | ) | (11 | ) | |||||||||||
Merger and integration costs | 5.0 | 14.1 | (9.1 | ) | (65 | ) | |||||||||||
Restructuring charges | 4.4 | 7.0 | (2.6 | ) | (37 | ) | |||||||||||
Total costs and expenses | 1,215.7 | 1,298.7 | (83.0 | ) | (6 | ) | |||||||||||
Operating income | 157.7 | 119.9 | 37.8 | 32 | |||||||||||||
Dividend income on CS&L common stock | 17.6 | — | 17.6 | * | |||||||||||||
Other expense, net | (1.2 | ) | (1.2 | ) | — | — | |||||||||||
Net loss on early extinguishment of debt | (35.4 | ) | — | (35.4 | ) | * | |||||||||||
Other-than-temporary impairment loss on investment in CS&L common stock | (181.9 | ) | — | (181.9 | ) | * | |||||||||||
Interest expense (A) | (219.7 | ) | (141.1 | ) | (78.6 | ) | 56 | ||||||||||
Loss before income taxes | (262.9 | ) | (22.4 | ) | (240.5 | ) | * | ||||||||||
Income tax benefit | (31.0 | ) | (27.7 | ) | (3.3 | ) | 12 | ||||||||||
Net (loss) income | $ | (231.9 | ) | $ | 5.3 | $ | (237.2 | ) | * | ||||||||
Weighted average common shares | 92.2 | 99.9 | (7.7 | ) | (8 | ) | |||||||||||
Common shares outstanding | 96.3 | 100.8 | (4.5 | ) | (4 | ) | |||||||||||
Basic and diluted (loss) earnings per share: | |||||||||||||||||
Net (loss) income | $ | (2.52 | ) | $ | .05 | $ | (2.57 | ) | * | ||||||||
PRO FORMA RESULTS OF OPERATIONS (B): | |||||||||||||||||
Pro forma service revenues | $ | 1,340.6 | $ | 1,343.1 | $ | (2.5 | ) | — | |||||||||
Pro forma revenues and sales | $ | 1,373.4 | $ | 1,379.9 | $ | (6.5 | ) | — | |||||||||
Pro forma adjusted OIBDAR (C) | $ | 485.3 | $ | 481.3 | $ | 4.0 | 1 | ||||||||||
Pro forma adjusted OIBDA (D) | $ | 321.8 | $ | 318.8 | $ | 3.0 | 1 | ||||||||||
Adjusted capital expenditures (E) | $ | 230.1 | $ | 189.3 | $ | 40.8 | 22 | ||||||||||
* Not meaningful | |||||||||||||||||
(A) | Includes additional interest expense associated with the master lease agreement with CS&L of | ||||||||||||||||
(B) | Pro forma results adjust operating results under GAAP to exclude the impacts of the disposed data center and consumer CLEC businesses and directory publishing operations and all merger and integration costs related to strategic transactions. See Notes to Reconciliation of Non-GAAP Financial Measures. | ||||||||||||||||
(C) | Pro forma adjusted OIBDAR is pro forma adjusted OIBDA before the annual cash rent payment due under the
master lease agreement with CS&L assuming the lease payments began on | ||||||||||||||||
(D) | Pro forma adjusted OIBDA is operating income before depreciation and amortization adjusted for the impact of restructuring charges, pension income, share-based compensation and the annual cash rent payment due under the master lease agreement with CS&L. | ||||||||||||||||
(E) | Adjusted capital expenditures exclude the impacts of capital expenditures related to Project Excel, a | ||||||||||||||||
UNAUDITED BUSINESS SEGMENT RESULTS | |||||||||||||||||
(In millions) | THREE MONTHS ENDED | ||||||||||||||||
Increase (Decrease) | |||||||||||||||||
2016 | 2015 | Amount | % | ||||||||||||||
Consumer and Small Business - ILEC | |||||||||||||||||
Revenues and sales: | |||||||||||||||||
Service revenues | $ | 311.7 | $ | 312.2 | $ | (0.5 | ) | — | |||||||||
Product sales | 0.4 | 1.1 | (0.7 | ) | (64 | ) | |||||||||||
Total consumer | 312.1 | 313.3 | (1.2 | ) | — | ||||||||||||
Small business - ILEC | 85.1 | 89.5 | (4.4 | ) | (5 | ) | |||||||||||
Total revenue and sales | 397.2 | 402.8 | (5.6 | ) | (1 | ) | |||||||||||
Costs and expenses | 169.1 | 163.2 | 5.9 | 4 | |||||||||||||
Segment income | 228.1 | 239.6 | (11.5 | ) | (5 | ) | |||||||||||
Carrier | |||||||||||||||||
Service revenues | 163.2 | 176.3 | (13.1 | ) | (7 | ) | |||||||||||
Costs and expenses | 45.5 | 46.1 | (0.6 | ) | (1 | ) | |||||||||||
Segment income | 117.7 | 130.2 | (12.5 | ) | (10 | ) | |||||||||||
Enterprise | |||||||||||||||||
Revenues and sales: | |||||||||||||||||
Service revenues | 491.4 | 475.7 | 15.7 | 3 | |||||||||||||
Product sales | 21.7 | 27.6 | (5.9 | ) | (21 | ) | |||||||||||
Total revenue and sales | 513.1 | 503.3 | 9.8 | 2 | |||||||||||||
Costs and expenses | 442.6 | 451.4 | (8.8 | ) | (2 | ) | |||||||||||
Segment income | 70.5 | 51.9 | 18.6 | 36 | |||||||||||||
Small Business - CLEC | |||||||||||||||||
Service revenues | 128.7 | 146.6 | (17.9 | ) | (12 | ) | |||||||||||
Costs and expenses | 87.4 | 98.0 | (10.6 | ) | (11 | ) | |||||||||||
Segment income | 41.3 | 48.6 | (7.3 | ) | (15 | ) | |||||||||||
Total segment revenues and sales: | |||||||||||||||||
Service revenues | 1,180.1 | 1,200.3 | (20.2 | ) | (2 | ) | |||||||||||
Product sales | 22.1 | 28.7 | (6.6 | ) | (23 | ) | |||||||||||
Total segment revenues and sales | 1,202.2 | 1,229.0 | (26.8 | ) | (2 | ) | |||||||||||
Total segment costs and expenses | 744.6 | 758.7 | (14.1 | ) | (2 | ) | |||||||||||
Total segment income | 457.6 | 470.3 | (12.7 | ) | (3 | ) | |||||||||||
Regulatory and other operating revenues and sales (A) | 171.2 | 150.9 | 20.3 | 13 | |||||||||||||
Revenues and sales related to disposed businesses (B) | — | 38.7 | (38.7 | ) | (100 | ) | |||||||||||
Other unassigned operating expenses (C) | (166.3 | ) | (173.7 | ) | 7.4 | (4 | ) | ||||||||||
Operating expenses related to disposed businesses (B) | — | (25.6 | ) | 25.6 | (100 | ) | |||||||||||
Depreciation and amortization | (304.8 | ) | (340.7 | ) | 35.9 | (11 | ) | ||||||||||
Operating income | $ | 157.7 | $ | 119.9 | $ | 37.8 | 32 | ||||||||||
(A) | Other operating revenues are not allocated to the business segments. These revenues include revenue from federal and state universal service funds, CAF Phase II support, and funds received from federal access recovery mechanisms, revenues from providing switched access services, and certain surcharges assessed to our customers, including billings for our required contributions to federal and state USF programs. | ||||||||||||||||
(B) | Represents revenues and operating expenses associated with the disposed data center and consumer CLEC businesses and directory publishing operations that are not assigned to the business segments. | ||||||||||||||||
(C) | These expenses are not allocated to the business segments. Unallocated expenses include merger and integration costs, restructuring charges, stock-based compensation, pension costs, and shared services, such as accounting and finance, legal, human resources, investor relations, etc. These expenses are centrally managed and are not monitored by management at a segment level. | ||||||||||||||||
UNAUDITED SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||
(In thousands) | ||||||||||||
THREE MONTHS ENDED | ||||||||||||
Increase (Decrease) | ||||||||||||
2016 | 2015 | Amount | % | |||||||||
Consumer operating metrics | ||||||||||||
Households served | 1,430.7 | 1,516.5 | (85.8 | ) | (6 | ) | ||||||
High-speed | 1,092.0 | 1,132.4 | (40.4 | ) | (4 | ) | ||||||
Digital television customers | 350.1 | 378.8 | (28.7 | ) | (8 | ) | ||||||
Net household losses | 15.1 | 12.2 | 2.9 | 24 | ||||||||
Net high-speed | (3.1 | ) | 0.8 | (3.9 | ) | * | ||||||
Small Business - ILEC customers (A) | 144.3 | 155.9 | (11.6 | ) | (7 | ) | ||||||
Enterprise business customers (B) | 26.4 | 26.2 | 0.2 | 1 | ||||||||
Small Business - CLEC customers (C) | 86.4 | 107.3 | (20.9 | ) | (19 | ) | ||||||
* Not meaningful | ||||||||||||
(A) | Small business customer relationships that generate less than | |||||||||||
(B) | Enterprise customers represent customers that generate | |||||||||||
(C) | Small business customer relationships that generate less than | |||||||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS UNDER GAAP | |||||||||||
(In millions) | |||||||||||
2016 | 2015 | ||||||||||
Assets | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 74.6 | $ | 31.3 | |||||||
Accounts receivable, net | 636.1 | 643.9 | |||||||||
Inventories | 79.4 | 79.5 | |||||||||
Prepaid expenses and other | 149.9 | 120.6 | |||||||||
Total current assets | 940.0 | 875.3 | |||||||||
4,213.6 | 4,213.6 | ||||||||||
Other intangibles, net | 1,457.2 | 1,504.7 | |||||||||
Net property, plant and equipment | 5,255.7 | 5,279.8 | |||||||||
Investment in CS&L common stock | 653.8 | 549.2 | |||||||||
Other assets | 90.9 | 95.5 | |||||||||
Total Assets | $ | 12,611.2 | $ | 12,518.1 | |||||||
Liabilities and Shareholders' Equity | |||||||||||
Current Liabilities: | |||||||||||
Current maturities of long-term debt | $ | 11.9 | $ | 5.9 | |||||||
Current portion of long-term lease obligations | 156.6 | 152.7 | |||||||||
Accounts payable | 323.6 | 430.1 | |||||||||
Advance payments and customer deposits | 193.9 | 193.9 | |||||||||
Accrued taxes | 71.6 | 84.1 | |||||||||
Accrued interest | 118.1 | 78.4 | |||||||||
Other current liabilities | 273.9 | 322.0 | |||||||||
Total current liabilities | 1,149.6 | 1,267.1 | |||||||||
Long-term debt | 5,433.1 | 5,164.6 | |||||||||
Long-term lease obligations | 4,959.8 | 5,000.4 | |||||||||
Deferred income taxes | 254.9 | 287.4 | |||||||||
Other liabilities | 476.1 | 492.2 | |||||||||
Total liabilities | 12,273.5 | 12,211.7 | |||||||||
Shareholders' Equity: | |||||||||||
Common stock | — | — | |||||||||
Additional paid-in capital | 587.6 | 602.9 | |||||||||
Accumulated other comprehensive loss | (5.9 | ) | (284.4 | ) | |||||||
Accumulated deficit | (244.0 | ) | (12.1 | ) | |||||||
Total shareholders' equity | 337.7 | 306.4 | |||||||||
Total Liabilities and Shareholders' Equity | $ | 12,611.2 | $ | 12,518.1 | |||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS UNDER GAAP | ||||||||||||||
(In millions) | ||||||||||||||
THREE MONTHS ENDED | ||||||||||||||
2016 | 2015 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||
Net (loss) income | $ | (231.9 | ) | $ | 5.3 | |||||||||
Adjustments to reconcile net (loss) income to net cash provided from operations: | ||||||||||||||
Depreciation and amortization | 304.8 | 340.7 | ||||||||||||
Provision for doubtful accounts | 9.7 | 10.3 | ||||||||||||
Share-based compensation expense | 13.7 | 14.8 | ||||||||||||
Deferred income taxes | (27.5 | ) | (33.8 | ) | ||||||||||
Other-than-temporary impairment loss on investment in CS&L common stock | 181.9 | — | ||||||||||||
Noncash portion of net loss on early extinguishment of debt | (7.4 | ) | — | |||||||||||
Amortization of unrealized losses on de-designated interest rate swaps | 1.2 | 3.4 | ||||||||||||
Plan curtailment | (5.5 | ) | — | |||||||||||
Other, net | (15.3 | ) | 6.9 | |||||||||||
Changes in operating assets and liabilities, net: | ||||||||||||||
Accounts receivable | (2.0 | ) | (33.3 | ) | ||||||||||
Prepaid income taxes | (5.8 | ) | 7.8 | |||||||||||
Prepaid expenses and other | (6.0 | ) | (24.8 | ) | ||||||||||
Accounts payable | (100.2 | ) | (64.2 | ) | ||||||||||
Accrued interest | 39.8 | 67.4 | ||||||||||||
Accrued taxes | (12.5 | ) | (10.9 | ) | ||||||||||
Other current liabilities | 4.2 | (43.2 | ) | |||||||||||
Other liabilities | (10.0 | ) | (2.6 | ) | ||||||||||
Other, net | (4.0 | ) | — | |||||||||||
Net cash provided from operating activities | 127.2 | 243.8 | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||
Additions to property, plant and equipment | (263.8 | ) | (189.3 | ) | ||||||||||
Proceeds from the sale of property | 6.2 | — | ||||||||||||
Grant funds received for broadband stimulus projects | — | 7.4 | ||||||||||||
Network expansion funded by | — | (8.3 | ) | |||||||||||
Change in restricted cash | — | (0.4 | ) | |||||||||||
Other, net | — | (2.1 | ) | |||||||||||
Net cash used in investing activities | (257.6 | ) | (192.7 | ) | ||||||||||
Cash Flows from Financing Activities: | ||||||||||||||
Dividends paid to shareholders | (14.9 | ) | (151.5 | ) | ||||||||||
Repayments of debt and swaps | (985.3 | ) | (325.4 | ) | ||||||||||
Proceeds of debt issuance | 1,278.0 | 490.0 | ||||||||||||
Debt issuance costs | (10.7 | ) | — | |||||||||||
Stock repurchases | (28.9 | ) | — | |||||||||||
Payments under long-term lease obligations | (36.8 | ) | — | |||||||||||
Payments under capital lease obligations | (19.8 | ) | (11.2 | ) | ||||||||||
Other, net | (7.9 | ) | (6.8 | ) | ||||||||||
Net cash provided from (used in) financing activities | 173.7 | (4.9 | ) | |||||||||||
Increase in cash and cash equivalents | 43.3 | 46.2 | ||||||||||||
Cash and Cash Equivalents: | ||||||||||||||
Beginning of period | 31.3 | 27.8 | ||||||||||||
End of period | $ | 74.6 | $ | 74.0 | ||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (A) | ||||||||||
(In millions) | ||||||||||
THREE MONTHS ENDED | ||||||||||
2016 | 2015 | |||||||||
Reconciliation of Revenues and Sales under GAAP to Pro forma | ||||||||||
Revenues and Sales: | ||||||||||
Service revenues under GAAP | $ | 1,340.6 | $ | 1,381.8 | ||||||
Pro forma adjustments: | ||||||||||
Data center revenues | (B) | — | (29.2 | ) | ||||||
Consumer CLEC revenues | (B) | — | (7.9 | ) | ||||||
Directory publishing revenues | (B) | — | (1.6 | ) | ||||||
Pro forma service revenues | 1,340.6 | 1,343.1 | ||||||||
Product sales under GAAP | 32.8 | 36.8 | ||||||||
Pro forma revenues and sales | $ | 1,373.4 | $ | 1,379.9 | ||||||
Reconciliation of Operating Income under GAAP to Pro forma | ||||||||||
Adjusted OIBDA: | ||||||||||
Operating income under GAAP | $ | 157.7 | $ | 119.9 | ||||||
Depreciation and amortization expense | (C) | 304.8 | 340.7 | |||||||
Pro forma adjustments: | ||||||||||
Data center business operating loss | (B) | — | 1.5 | |||||||
Data center business depreciation and amortization expense | (B) | — | (10.3 | ) | ||||||
Consumer CLEC business operating income | (B) | — | (2.5 | ) | ||||||
Consumer CLEC business amortization expense | (B) | — | (1.0 | ) | ||||||
Directory publishing operating income | (B) | — | (0.8 | ) | ||||||
Merger and integration costs | (C) | 5.0 | 14.1 | |||||||
Pension income | (C) | (0.3 | ) | (1.8 | ) | |||||
Restructuring charges | (C) | 4.4 | 7.0 | |||||||
Share-based compensation | (C) | 13.7 | 14.5 | |||||||
Pro forma adjusted OIBDAR | 485.3 | 481.3 | ||||||||
Master lease rent payment | (D) | (163.5 | ) | (162.5 | ) | |||||
Pro forma adjusted OIBDA | $ | 321.8 | $ | 318.8 | ||||||
(A) | Pro forma results adjust operating results under GAAP to exclude the impacts of the disposed consumer CLEC business and directory publishing operations and all merger and integration costs related to strategic transactions. See Notes to Reconciliation of Non-GAAP Financial Measures. | |||||||||
(B) | Represents applicable amount related to the disposed business as reported under GAAP. | |||||||||
(C) | Represents applicable expense as reported under GAAP. | |||||||||
(D) | Represents the impact of the annual cash rent payment due under the master lease agreement with CS&L assuming the lease payments began on | |||||||||
UNAUDITED RECONCILIATION OF OPERATING INCOME UNDER GAAP TO ADJUSTED FREE CASH FLOW | |||||||||
(In millions) | |||||||||
THREE MONTHS ENDED | |||||||||
2016 | 2015 | ||||||||
Adjusted Free Cash Flow: | |||||||||
Operating income under GAAP | $ | 157.7 | $ | 119.9 | |||||
Depreciation and amortization | 304.8 | 340.7 | |||||||
OIBDA | 462.5 | 460.6 | |||||||
Merger and integration costs | 5.0 | 14.1 | |||||||
Pension income | (0.3 | ) | (1.8 | ) | |||||
Restructuring charges | 4.4 | 7.0 | |||||||
Share-based compensation | 13.7 | 14.8 | |||||||
Adjusted OIBDAR (A) | 485.3 | 494.7 | |||||||
Master lease rent payment | (163.5 | ) | — | ||||||
Adjusted OIBDA (B) | 321.8 | 494.7 | |||||||
Adjustments: | |||||||||
Adjusted capital expenditures | (230.1 | ) | (189.3 | ) | |||||
Cash paid for interest | (55.5 | ) | (74.7 | ) | |||||
Cash (paid) refunded for taxes | (6.5 | ) | 1.2 | ||||||
CS&L dividends received | 17.6 | — | |||||||
Adjusted free cash flow | $ | 47.3 | $ | 231.9 | |||||
Capital expenditures under GAAP | $ | 263.8 | $ | 189.3 | |||||
Project Excel capital expenditures (C) | (33.7 | ) | — | ||||||
Adjusted capital expenditures | $ | 230.1 | $ | 189.3 | |||||
Note: | Adjusted OIBDAR and adjusted OIBDA include the results of the disposed data center and consumer CLEC businesses and directory publishing operations. | ||||||||
(A) | Adjusted OIBDAR is adjusted OIBDA before the annual cash rent payment due under the master lease agreement with CS&L. | ||||||||
(B) | Adjusted OIBDA is OIBDA before restructuring charges, pension income and share-based compensation. | ||||||||
(C) | Represents capital expenditures related to Project Excel, a | ||||||||
NOTES TO RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||
Our purpose for these adjustments is to improve the comparability of results of operations for all periods presented in order to focus on the true earnings capacity associated with providing telecommunication services. Additionally, management believes that presenting pro forma measures assists investors by providing more meaningful comparisons of results from current and prior periods, and by providing information that is a better reflection of the core earnings capacity of our current operations. We use pro forma results, including pro forma adjusted OIBDA, pro forma adjusted OIBDAR and adjusted free cash flow as key measures of the operational performance of our business. Our management, including the chief operating decision-maker, consistently uses these measures for internal reporting and the evaluation of business objectives, opportunities and performance. | |||||||
We claim the protection of the safe-harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward looking statements are subject to uncertainties that could cause actual future events and results to differ materially from those expressed in the forward-looking statements. Forward looking
statements include, but are not limited to, statements about our expectation to return a portion of our cash flow to shareholders through our dividend, expectations regarding our "network first" strategy to improve financial performance and increase market share, expectations regarding revenue trends and improving margins in our business segments, growth in adjusted OIBDA, the amount that | |||||||
In addition to these factors, actual future performance, outcomes and results may differ materially because of more general factors including, among others, general industry and market conditions and growth rates, economic conditions, and governmental and public policy changes. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing review of factors that could cause our actual results to differ materially from those
contemplated in the forward-looking statements should be considered in connection with information regarding risks and uncertainties that may affect our future results included in our other filings with the | |||||||
Media Contact:Source:David Avery , 501-748-5876 david.avery@windstream.com Investor Contact:Mary Michaels , 501-748-7578 mary.michaels@windstream.com
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