Windstream 2015 Annual Report Download - page 135

F-5
REVERSE STOCK SPLIT
At a special meeting held on February 20, 2015, Windstream shareholders approved a proposal regarding an amendment to our
restated certificate of incorporation to effect a reclassification (reverse stock split) of Windstream Holdings common stock, whereby
(i) each outstanding six (6) shares of common stock would be combined into and become one (1) share of common stock and (ii)
to decrease the number of authorized shares of common stock proportionately.
On April 24, 2015, Windstream Holdings filed a certificate of amendment to its restated certificate of incorporation with the
secretary of state of the State of Delaware. The certificate of amendment effected the previously approved reverse stock split of
Windstream Holdings outstanding common stock at a ratio of one-for-six (the “reverse stock split”). As a result of the reverse
stock split, effective April 26, 2015, Windstream Holdings’ authorized share capital was reduced to 200.0 million shares, consisting
of 33.3 million shares of preferred stock, par value $.0001 per share, and 166.7 million shares of common stock, par value $.0001
per share and the number of issued and outstanding shares of common stock of Windstream Holdings was reduced to approximately
100.9 million shares.
CONSOLIDATED RESULTS OF OPERATIONS
The following table reflects the consolidated operating results of Windstream Holdings as of December 31:
2015 to 2014 2014 to 2013
(Millions) 2015 2014 2013
Increase
(Decrease) %
Increase
(Decrease) %
Revenues and sales:
Service revenues $ 5,598.6 $ 5,647.6 $ 5,775.5 $ (49.0)(1) $ (127.9)(2)
Product sales 166.7 181.9 212.6 (15.2)(8)(30.7)(14)
Total revenues and sales 5,765.3 5,829.5 5,988.1 (64.2)(1)(158.6)(3)
Costs and expenses:
Cost of services (a) (b) 2,762.0 2,773.3 2,541.2 (11.3) — 232.1 9
Cost of products sold 145.2 156.6 183.9 (11.4)(7)(27.3)(15)
Selling, general, and administrative (a) 866.5 929.8 874.3 (63.3)(7) 55.5 6
Depreciation and amortization 1,366.5 1,386.4 1,340.9 (19.9)(1) 45.5 3
Merger and integration costs 95.0 40.4 30.2 54.6 135 10.2 34
Restructuring charges 20.7 35.9 8.6 (15.2)(42) 27.3 317
Total costs and expenses 5,255.9 5,322.4 4,979.1 (66.5)(1) 343.3 7
Operating income 509.4 507.1 1,009.0 2.3 — (501.9)(50)
Other income (expense), net 57.5 0.1 (12.5) 57.4 * 12.6 (101)
Gain on sale of data center business 326.1 — — 326.1 — — —
Loss on early extinguishment of debt (36.4) — (28.5)(36.4) — 28.5 (100)
Interest expense (813.2) (571.8)(627.7)(241.4) 42 55.9 (9)
Income (loss) from continuing operations
before income taxes 43.4 (64.6) 340.3 108.0 167 (404.9)(119)
Income tax (benefit) expense 16.0 (25.1) 105.3 41.1 164 (130.4)(124)
Income (loss) income from continuing
operations 27.4 (39.5) 235.0 66.9 169 (274.5)(117)
Discontinued operations, net of tax — — 6.0 — — (6.0)(100)
Net income (loss) $ 27.4 $ (39.5) $ 241.0 $ 66.9 169 $ (280.5)(116)
* Not meaningful
(a) Prior year amounts for cost of services and selling, general and administrative have been adjusted to reflect the proper
classification of certain operating expenses. See Note 1 for additional information.
(b) Excludes depreciation and amortization included below.
A detailed discussion and analysis of our consolidated operating results is presented below.