Windstream 2011 Annual Report Download - page 197

WINDSTREAM CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED RESULTS (NON-GAAP) (A)
QUARTERLY SUPPLEMENTAL INFORMATION
for the years 2011 and 2010
(In millions)
2011 2010
Reconciliation of Revenues under GAAP to Pro forma Revenues:
Revenues and sales under GAAP ................................................... $4,285.7 $3,710.7
Pro forma adjustments:
NuVox revenues and sales prior to acquisition .................................... — 57.3
Iowa Telecom revenues and sales prior to acquisition ............................... — 109.2
Hosted Solutions revenues and sales prior to acquisition ............................. — 48.3
Q-Comm revenues and sales prior to acquisition ................................... — 213.7
Elimination of Windstream revenues from Q-Comm prior to acquisition ................ — (1.6)
PAETEC revenues and sales prior to acquisition ................................... 1,962.5 2,127.3
Elimination of Windstream revenues from PAETEC prior to acquisition ................ (4.6) (5.6)
Pro forma revenues and sales ...................................................... $6,243.6 $6,259.3
Reconciliation of Operating Income under GAAP to Pro forma adjusted OIBDA
Operating income from continuing operations under GAAP .............................. $ 968.0 $1,033.5
Pro forma adjustments:
NuVox pre-acquisition operating income, excluding M&I costs ....................... — 4.1
NuVox intangible asset amortization adjustment ................................... — (1.5)
Iowa Telecom pre-acquisition operating income, excluding M&I costs ................. — 23.9
Iowa Telecom intangible asset amortization adjustment ............................. — (11.2)
Hosted Solutions pre-acquisition operating income, excluding M&I costs ............... — 10.9
Hosted Solutions intangible asset amortization adjustment ........................... — (9.0)
Q-Comm pre-acquisition operating income, excluding M&I costs ..................... — 50.1
Q-Comm intangible asset amortization adjustment ................................. — (39.1)
PAETEC pre-acquisition operating income, excluding M&I costs ..................... 100.2 94.7
PAETEC intangible asset amortization adjustment ................................. (60.4) (123.3)
M&I costs ................................................................. 69.8 77.3
Pro forma operating income ....................................................... 1,077.6 1,110.4
Depreciation and amortization expense .......................................... 847.5 693.7
NuVox pre-acquisition depreciation and amortization expense ........................ — 9.5
Iowa Telecom pre-acquisition depreciation and amortization expense .................. — 39.1
Hosted Solutions pre-acquisition depreciation and amortization expense ................ — 21.1
Q-Comm pre-acquisition depreciation and amortization expense ...................... — 76.1
PAETEC pre-acquisition depreciation and amortization expense ...................... 301.7 366.7
Pro forma OIBDA (B) ........................................................... 2,226.8 2,316.6
Other adjustments:
Pension expense ............................................................ 166.3 52.5
Pension expense of Iowa Telecom prior to acquisition .............................. — 0.2
Restructuring charges ........................................................ 1.3 7.7
Stock-based compensation .................................................... 24.1 17.0
NuVox stock-based compensation prior to acquisition .............................. — 0.1
Iowa Telecom stock-based compensation prior to acquisition ......................... — 1.8
Hosted Solutions stock-based compensation prior to acquisition ...................... — 0.2
PAETEC stock-based compensation prior to acquisition ............................. 15.8 9.9
Pro forma adjusted OIBDA (C) .................................................... $2,434.3 $2,406.0
(A) Pro forma results adjusts results of operations under GAAP to include the acquisitions of NuVox, Iowa Telecom,
Hosted Solutions, Q-Comm and PAETEC, and to exclude all merger and integration costs related to strategic
transactions. Q-Comm includes only those entities acquired from Q-Comm. PAETEC results include results from
companies acquired by PAETEC for periods prior to those acquisitions and excludes the results of operations of the
energy business acquired as part of PAETEC.
(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.