Windstream 2010 Annual Report Download - page 180

WINDSTREAM CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED RESULTS (NON-GAAP) (A)
QUARTERLY SUPPLEMENTAL INFORMATION
for the years 2010 and 2009
(In millions)
2010 2009
Reconciliation of Revenues under GAAP to Pro forma Revenues:
Revenues and sales under GAAP $3,712.0 $2,996.6
Pro forma adjustments:
D&E revenues and sales prior to acquisition — 123.3
Lexcom revenues and sales prior to acquisition — 39.8
Out-of-territory product distribution operations revenues and sales — (38.5)
NuVox revenues and sales prior to acquisition 57.3 564.8
Iowa Telecom revenues and sales prior to acquisition 109.2 270.7
Hosted Solutions revenues and sales prior to acquisition 48.3 49.0
Q-Comm revenues and sales prior to acquisition 213.7 227.7
Elimination of Windstream revenues from Q-Comm prior to acquisition (1.6) (2.0)
Pro forma revenues and sales $4,138.9 $4,231.4
Reconciliation of Operating Income under GAAP to Pro forma adjusted OIBDA
Operating income from continuing operations under GAAP $1,030.3 $ 956.9
Pro forma adjustments:
D&E pre-acquisition operating income, excluding M&I costs — 23.2
D&E intangible asset impairment — 5.5
D&E intangible asset amortization adjustment — (3.5)
Lexcom pre-acquisition operating income, excluding M&I costs — 13.7
Lexcom intangible asset amortization adjustment — (1.5)
Operating income from disposed out-of-territory product distribution operations — (0.9)
NuVox pre-acquisition operating income, excluding M&I costs 4.1 35.8
NuVox intangible asset amortization adjustment (1.5) (14.7)
Iowa Telecom pre-acquisition operating income, excluding M&I costs 23.9 59.0
Iowa Telecom intangible asset amortization adjustment (11.2) (28.4)
Hosted Solutions pre-acquisition operating income, excluding M&I costs 10.9 10.1
Hosted Solutions intangible asset amortization adjustment (9.0) (10.0)
Q-Comm pre-acquisition operating income, excluding M&I costs 50.1 49.5
Q-Comm intangible asset amortization adjustment (39.1) (43.4)
M&I costs 77.3 22.3
Pro forma operating income 1,135.8 1,073.6
Depreciation and amortization expense 693.6 537.8
D&E pre-acquisition depreciation and amortization expense — 28.4
Lexcom pre-acquisition depreciation and amortization expense — 9.4
NuVox pre-acquisition depreciation and amortization expense 9.5 92.6
Iowa Telecom pre-acquisition depreciation and amortization expense 39.1 94.8
Hosted Solutions pre-acquisition depreciation and amortization expense 21.1 22.7
Q-Comm pre-acquisition depreciation and amortization expense 76.1 81.5
Pro forma OIBDA (B) 1,975.2 1,940.8
Other adjustments:
Pension expense 61.9 91.8
Pension expense of D&E prior to acquisition — 0.1
Pension expense of Iowa Telecom prior to acquisition 0.2 0.6
Restructuring charges 7.7 9.1
Stock-based compensation 17.0 17.4
D&E stock-based compensation prior to acquisition — 1.0
NuVox stock-based compensation prior to acquisition 0.1 2.3
Iowa Telecom stock-based compensation prior to acquisition 1.8 4.8
Hosted Solutions stock-based compensation prior to acquisition 0.2 0.7
Pro forma adjusted OIBDA (C) $2,064.1 $2,068.6
(A) Pro forma results adjusts results of operations under GAAP to include the acquisitions of D&E Communications, Inc. (“D&E”), Lexcom Inc.
(“Lexcom”), NuVox, Inc. (“NuVox”), Iowa Telecommunications Services, Inc. (“Iowa Telecom”), Hosted Solutions Acquisition, LLC (“Hosted
Solutions”) and Q-Comm Corporation (“Q-Comm”), and to exclude the results of the disposed out-of-territory product distribution operations
and all merger and integration costs related to strategic transactions. Q-Comm results of operations only include those entities acquired
from Q-Comm.
(B) OIBDA is operating income before depreciation and amortization.
(C) Pro forma adjusted OIBDA adjusts pro forma OIBDA for the impact of restructuring charges, pension expense and stock-based compensation.