Windstream Reports Q3

Revenues were $823M, a 7% increase from a year ago

November 8, 2007

2 Min Read

LITTLE ROCK, Ark. -- Windstream Corporation (NYSE: WIN - News) generated solid financial results in the third quarter through higher revenue from sales of broadband and data services.

“Windstream delivered a solid financial performance in the third quarter, while continuing to drive broadband and digital TV sales,” said Jeff Gardner, president and CEO. “We also completed our acquisition of CT Communications and are very pleased with the progress we have made integrating the new operations. We expect to complete the integration process by the end of the first quarter of 2008.” Windstream completed its acquisition of CT Communications, Inc. (CTC) on Aug. 31. The transaction nearly doubled Windstream’s presence in North Carolina by adding 132,000 access lines and 31,000 broadband customers.

Windstream achieved diluted earnings per share under Generally Accepted Accounting Principles (GAAP) of 25 cents for the third quarter. The GAAP results include results for the company’s directory publishing business and CTC for the month of September in addition to one-time transaction expenses associated with the CTC acquisition and the split-off of the publishing business scheduled to close during the fourth quarter.

Among the highlights for the third quarter on a GAAP basis:

  • Revenues were $823 million, a 7 percent increase from a year ago.

  • Operating income was $289 million, a 14 percent increase year-over-year.

  • Net income was $118 million, a 40 percent decline from a year ago due to an extraordinary item in the third quarter of 2006 resulting in a non-cash after-tax gain of approximately $100 million related to the discontinuance of Statement of Financial Accounting Standard (SFAS) No. 71.

Among the pro forma highlights for the third quarter from current businesses:

  • Revenues were $823 million, a 2 percent increase year-over-year.

  • Operating income was $280 million, an increase of 5 percent from a year ago.

  • Operating income before depreciation and amortization was $420 million, a 3 percent increase from a year ago.

  • Average revenue per customer per month was $81.61, an 8 percent increase from a year ago.

Windstream’s pro forma results from current businesses include CTC results for the entire third quarter and exclude results for Windstream’s directory publishing business and transaction expenses associated with the publishing split-off and the CTC acquisition.

On a pro forma basis from current businesses, which include CTC results solely for the month of September, Windstream generated $792 million in revenues and $411 million in operating income before depreciation and amortization during the third quarter.

Windstream Communications Inc. (Nasdaq: WIN)

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