Windstream 2013 Annual Report Download - page 13

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| 7
2013 Company Performance
Revenue Performance
During 2013, Windstream delivered $6.0 billion in total annual revenue, representing a decline of 2.5% year over
year. As we continue to increase the proportion of our revenues coming from strategic growth areas, we expect to
improve revenue trends.
fl
1
Growing Strategic Revenue
Our strategy is to transition our r evenue mix towards business
and broadband services, our growth drivers. At the same
time, we are maintaining a stable and gradual decline in our
consumer business.
73%
Business &
Broadband Revenue
as a proportion of total revenue
2013
Business
Service Revenue
Growth Y/Y
2013
Broadband
Service Revenue
Growth Y/Y
1.4% 4.3%
Adjusted OIBDA Performance
During 2013, Windstream generated $2.3 billion in Adjusted OIBDA. Disciplined cost management has enabled us
to maintain steady margins as we have realigned our business in growth segments of the market.
fl
Windstream’s culture of disciplined expense management
has led to consistent OIBDA margins, even as we have
realigned our business in growth segments.
2
Maintaining Consistent
Margins
Notes: Adjusted OIBDA excludes the impact of restructuring charges, pension expense and
stock-based compensation. Pro forma for all transactions.
30%
32%
34%
36%
38%
40%
42%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
38.6%
Adjusted OIBDA Margin
2010 2011 2013 2012
Free Cash Flow Payout
During 2013, Windstream generated $891 million in adjusted free cash flow, equating to a payout ratio of 67%.
Returning Capital to Shareholders
We generate strong free cash fl ow and pay an attractive dividend to
shareholders. On February 12th, 2014, we declared our quarterly dividend of
$.25 per share, which we have paid consistently since our formation in 2006.
3
Strong
Track
Record
Consistent
dividend since
formed in
2006