Windstream 2008 Annual Report Download - page 177

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Windstream Corporation
Unaudited Pro Forma Results From Current Businesses
Reconciliations of Non-GAAP Financial Measures
Operating Income
for the twelve months ended December 31:
(Dollars in millions) 2008 2007
Increase
(Decrease)
Amount %
Operating income from continuing operations under GAAP $1,132.4 $1,149.9
Pro forma adjustments:
CTC operating income prior to acquisition — 11.5
CTC merger and integration costs prior to acquisition — 2.2
CTC customer list amortization — (5.3)
Impairment loss on acquired assets held for sale 6.5 —
Merger and integration costs 6.2 8.2
Operating income adjustment for split off of directory publishing:
Wireline — (42.0)
Other — (5.4)
Pro forma operating income from current businesses 1,145.1 1,119.1
Depreciation and amortization (A) 492.7 530.2
Pro forma OIBDA from current businesses $1,637.8 $1,649.3 $(11.5) -0.7%
Operating income from discontinued wireless operations under
GAAP 9.7
Merger and integration costs from discontinued wireless operations 0.8
Depreciation and amortization from discontinued wireless
operations 2.2
Pro forma OIBDA from current businesses and discontinued wireless
operations $1,650.5
(A) Includes depreciation and amortization expense under GAAP, 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
for the twelve months ended December 31:
(Dollars in millions) 2008 2007
Consolidated revenues and sales under GAAP $3,171.5 $3,245.9
Pro forma adjustments:
CTC revenues and sales prior to acquisition — 93.9
Directory publishing revenues — (120.9)
Consolidated pro forma revenues and sales from current businesses $3,171.5 $3,218.9 $(47.4) -1.5%
Free Cash Flow
for the twelve months ended December 31:
(Dollars in millions) 2008 2007
Net cash provided from operations $1,080.4 $1,033.7
Additions to property, plant and equipment (317.5) (365.7)
Free cash flow (B) $ 762.9 $ 668.0 $ 94.9 14%
Dividends paid on common shares (C) $ 445.2 $ 476.8
Dividend payout ratio (C)/(B) 58% 71%
Common stock repurchased as of December 31, 2008 $ 200.3
Amount of free cash flow returned to shareholders (D) $ 645.5
Percentage of free cash flow returned to shareholders (D)/(B) 85%