Windstream 2012 Annual Report Download - page 100

F-2
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Unless the context requires otherwise, the use of the terms "Windstream," "we," "us" and "our" in this Management's
Discussion and Analysis refers to Windstream Corporation and its consolidated subsidiaries.
The following sections, to the extent practicable, provide an overview of our results of operations and highlight key trends and
uncertainties in our business. Certain statements constitute forward-looking statements. See "Forward-Looking Statements" at
the end of this discussion for additional factors relating to such statements, and see "Risk Factors" in Item 1A of Part I of this
annual report for a discussion of certain risk factors applicable to our business, financial condition and results of operations.
OVERVIEW
Our vision is to become the premier enterprise communications and services provider in the United States while maintaining
our strong, stable consumer business. Windstream provides advanced communications and technology solutions, including
managed services and cloud computing, to businesses nationwide. In addition to business services, we offer broadband, voice
and video services to consumers in primarily rural markets. We have operations in 48 states and the District of Columbia, a
local and long-haul fiber network spanning approximately 115,000 miles, a robust business sales division and 23 data centers.
EXECUTIVE SUMMARY
We made significant progress on our strategy to grow business and consumer broadband revenues to offset continuing pressure
on our consumer voice and long-distance revenues and wholesale revenues during 2012 and 2011. Revenues from businesses
and consumer broadband were 68.8 percent of total revenues for the year ended December 31, 2012, as compared to 61.2
percent in the same period in 2011.
Key strategic activities during 2012 included:
• the continued integration of PAETEC, which transformed us into a national provider of business services and included
an attractive customer base of medium and large businesses and significantly enhanced our capabilities in strategic
growth areas, including IP based services, cloud computing and managed services;
• continued focus on revenue growth opportunities in our business service areas;
• significant success-based capital investments in our fiber network, designed to accommodate network capacity
requirements for wireless carriers as a result of growing wireless data usage;
• the review of our management structure to increase the efficiency of decision-making and position ourselves for
continued success, where approximately 350 management positions were eliminated, resulting in annualized savings
of approximately $40.0 million;
• activities to improve our debt profile including pushing out maturities, lowering interest costs, and creating sufficient
availability under our revolver to repay 2013 debt maturities; and
• the opening of new state-of-the-art data centers in Little Rock, Arkansas, and McLean, Virginia, as well as expanded
our data centers in Charlotte, North Carolina, Boston, Massachusetts, and Raleigh, North Carolina, to meet the
growing business demand for cloud-based and dedicated managed services and underscore our commitment to our
growing business customer base nationwide.
These activities, in conjunction with the strategic acquisitions we completed in prior years, continue our focus on strategic
revenue growth and cost management.