Windstream 2007 Annual Report Download - page 170

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Windstream Corporation
Unaudited Pro Forma Results From Current Businesses
Reconciliations of Non-GAAP Financial Measures
Operating Income TWELVE MONTHS ENDED
for the twelve months ended December 31:
(Dollars in millions)
December 31,
2007
December 31,
2006
Increase
(Decrease)
Amount %
Operating income under GAAP $1,151.1 $ 898.8
Pro forma adjustments:
Valor operating income prior to merger — 80.9
CTC operating income prior to acquisition 13.8 24.3
Valor merger and integration costs prior to merger — 15.6
CTC merger and integration costs prior to acquisition 2.2 —
Valor customer list amortization — (24.1)
CTC customer list amortization (6.1) (9.2)
Discontinuance of SFAS No. 71 — 0.4
Merger and integration costs 9.3 38.8
Royalty expense to Alltel — 129.6
Operating income adjustment for split off of directory publishing:
Wireline (42.2) (53.9)
Other (5.4) (10.6)
Adjusted operating income 1,122.7 1,090.6
Depreciation and amortization (A) 534.7 557.0
Pro forma OIBDA from current businesses $1,657.4 $1,647.6 $ 9.8 1%
(A) Includes depreciation and amortization expense under GAAP, Valor depreciation expense incurred prior to the merger, CTC depreciation and
amortization expense incurred prior to the acquisition, depreciation expense for directory publishing prior to the sale, and other pro forma
adjustments to depreciation and amortization expense.
Reconciliation of Pro Forma Revenues and Sales from
Current Businesses TWELVE MONTHS ENDED
for the twelve months ended December 31:
(Dollars in millions)
December 31,
2007
December 31,
2006
Consolidated revenues and sales under GAAP $3,260.8 $3,033.3
Pro forma adjustments:
Valor revenues and sales prior to merger — 275.2
CTC revenues and sales prior to acquisition 129.3 186.5
Elimination of billings to Valor — (8.8)
Elimination of billings to/from CTC (7.5) (10.5)
Discontinuance of SFAS No. 71 — (106.5)
Directory publishing revenues (120.9) (152.8)
Consolidated pro forma revenues and sales from current businesses $3,261.7 $3,216.4 $45.3 1%
Free Cash Flow
for the twelve months ended December 31, 2007
(Dollars in millions)
Net cash provided from operations $1,033.7
Additions to property, plant and equipment (365.7)
Free cash flow (B) $ 668.0
Dividends paid on common shares (C) $ 476.8
Dividend payout ratio (C)/(B) 71%
Share repurchase plan
(Dollars in millions, except per share amounts)
Board of Directors approved common stock repurchase plan $ 400.0
Windstream stock price at close of market February 7, 2008 $ 10.99
Approximate number of shares to be purchased (D) 36.4
Common stock shares outstanding as of December 31, 2007 (E) 454.5
Approximate percent of repurchased shares to total shares
outstanding (D)/(E) 8%