Windstream 2007 Annual Report Download - page 168

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
16. Quarterly Financial Information - (Unaudited):
For the year ended December 31, 2007
(Millions, except per share amounts) Total 4th 3rd 2nd 1st
Revenues and sales $3,260.8 $827.8 $822.6 $826.7 $783.7
Operating income $1,151.1 $300.1 $288.6 $292.8 $269.6
Net income $ 917.1 $583.6 $117.7 $115.9 $ 99.9
Basic earnings per share:
Net income $1.94 $1.25 $.25 $.24 $.21
Diluted earnings per share:
Net income $1.94 $1.25 $.25 $.24 $.21
For the year ended December 31, 2006
(Millions, except per share amounts) Total 4th 3rd 2nd 1st
Revenues and sales $3,033.3 $827.6 $771.4 $731.3 $703.0
Operating income $ 898.8 $285.6 $254.1 $185.2 $173.9
Income before extraordinary item $ 445.6 $117.7 $ 96.4 $118.7 $112.8
Extraordinary item, net of tax $ 99.7 $ - $ 99.7 $ - $ -
Net income $ 545.3 $117.7 $196.1 $118.7 $112.8
Basic earnings per share:
Income before extraordinary item $1.02 $.25 $.21 $.29 $.28
Extraordinary item .23 - .22 - -
Net income $1.25 $.25 $.43 $.29 $.28
Diluted earnings per share:
Income before extraordinary item $1.02 $.25 $.21 $.29 $.28
Extraordinary item .23 - .22 - -
Net income $1.25 $.25 $.43 $.29 $.28
Notes to Quarterly Financial Information:
Significant events affecting Windstream’s historical operating trends in the quarterly periods are provided in
Management’s Discussion and Analysis of Results of Operations and Financial Condition for the interim periods
2006 through 2007.
On November 30, 2007, Windstream completed the split off of its directory publishing business in a tax-free
transaction (See Note 3). As a result of completing this transaction, Windstream recorded a gain on the sale of its
publishing business of $451.3 million in the fourth quarter of 2007.
During the third quarter of 2006, the Company discontinued of the application of SFAS No. 71 which resulted in
an extraordinary gain of $99.7 million, net of $74.5 million in income taxes (See Note 2). The Company also
incurred $7.9 million in debt pre-payment penalties resulting from the early retirement of subsidiary debt pursuant
to the new Windstream debt structure, which is reflected in income before extraordinary item (See Note 5).
F-82