Windstream 2015 Annual Report Download - page 3

| 1
4001 North Rodney Parham Road
Little Rock, Arkansas 72212
Telephone: [phone]
www.windstream.com
NOTICE OF 2016 ANNUAL MEETING OF STOCKHOLDERS
To be Held May 12, 2016
11:00 a.m. (central time)
To the Stockholders of Windstream Holdings, Inc.:
Notice Is Hereby Given That the 2016 annual meeting of stockholders (the “Annual Meeting”) of Windstream
Holdings, Inc. (“Windstream”) will be held on Thursday, May 12, 2016, at 11:00 a.m. (central time). Consistent with
last year’s annual meeting, this year’s Annual Meeting will be a virtual meeting. Stockholders may join the Annual
Meeting via a live webcast by visiting www.virtualshareholdermeeting.com/WIN16.
You are cordially invited to join the Annual Meeting. Because the virtual Annual Meeting this year is
being conducted electronically, stockholders will not be able to attend the Annual Meeting in person.
The Annual Meeting is being held for the following purposes:
1. To elect the nine directors listed in the Proxy Statement to serve until the 2017 annual meeting of
stockholders or until successors are duly elected or until the earliest of their removal, resignation,
or death;
2. To vote on a non-binding advisory resolution on executive compensation;
3. To ratify Windstream’s rights plan designed to protect the substantial tax benefits of Windstream’s net
operating loss carryforwards;
4. To approve amendments to the Certificate of Incorporation and Bylaws of Windstream to enable
stockholders to call special meetings of stockholders under certain circumstances;
5. To approve amendments to the Certificate of Incorporation and Bylaws of Windstream to eliminate super-
majority voting provisions;
6. To ratify the appointment of PricewaterhouseCoopers LLP as Windstream’s independent registered
public accountant for 2016; and
7. To transact such other business as may properly come before the meeting or any postponement or
adjournment thereof.
Only holders of common stock of record at the close of business on March 17, 2016 are entitled to notice of the
Annual Meeting or at any adjournment or postponement thereof.
On April 1, 2016, we began mailing to many of our stockholders a notice of internet availability of proxy
materials. This notice contains instructions on how to access our Annual Meeting materials, including our Proxy
Statement and Annual Report on Form 10-K, and to vote online. The notice also includes instructions on obtaining a
paper copy of the Annual Meeting materials. Any stockholder who does not receive such a notice will receive a full
set of Annual Meeting materials in printed form by mail or electronically by e-mail.
To ensure that your vote is counted at the Annual Meeting, please vote as promptly as possible and preferably
in advance of the Annual Meeting.
2015 was a year of signicant progress for Windstream, and I am pleased to report that we are successfully
executing on a focused operational strategy.
It has been a little over a year since I became the President and CEO of Windstream, and I grow more
condent every day in our strategy. I am proud of all that the Windstream team accomplished during 2015,
and three achievements in particular positioned us to take a big step forward in 2016 and beyond.
First, we implemented a business unit structure with clear operational strategies for each segment. We
aligned the organization by customer type to increase visibility and accountability for the results, which led
to signicant improved nancial performance in 2015. For the year, we delivered steady, consistent results,
demonstrated progress in our core business units and achieved our nancial guidance.
Second, we made meaningful advancements in our network capabilities. Notably, we upgraded our consumer
and small business network to provide faster broadband speeds, which will allow us to gain market share
and grow Consumer and SMB ILEC revenue. We also expanded our carrier network in strategic areas and
improved the performance of the overall network.
Third, we completed key strategic transactions, including the formation and spino of Communication Sales
& Leasing Inc. (CSAL) and the sale of our data center business, using the proceeds from these transactions to
reduce debt by approximately $3.5 billion and to reinvest in the business. We also returned signicant value
to our shareholders through both our dividend and a $75 million share repurchase program.
As we look ahead, we are engaged in multiple initiatives to create value for our investors. We are executing
a comprehensive strategy to stabilize and grow operating cash ow, and the business is performing well
and generating improving results. We also are actively improving our debt prole to optimize our balance
sheet and will further reduce debt when we monetize our CSAL shares. Collectively, these initiatives position
Windstream well for the future and drive value for shareholders.
Sincerely,
Anthony W. Thomas
President and Chief Executive Ocer
March 31, 2016
• ~1.6M residential and small
businesses (within ILEC
territory)
• Addressability:~ 4M locations
Financial Prole:
• Total revenue: $1.6B
• Contribution margin: $935M
• Broadband network, Premium
Internet speeds, Expanding
Kinetic (IPTV)
• Telcos, content providers, cable
and other network operators
Financial Prole:
• Total revenue: $688M
• Contribution margin: $502M
• 100 Gig capable long-haul and
regional express network
• Fiber to ~5000 towers
• Expanded interconnection
locations
• Small business customers
residing outside of our ILEC
territory (<$1,500 per month in
recurring revenue)
Financial Prole:
• Total revenue: $559M
• Contribution margin: $181M
• Improve protability by
focusing on growing
customer relationships
and managing costs
• ~26k enterprise customers
nationwide
• Mid-size enterprise customer
focus
Financial Prole:
• Total revenue: $2.1B
• Contribution margin: $241M
• Continued revenue growth
• Margin expansion
• Broad portfolio of advanced,
customized solutions
fiber route miles
Completed the spino of CSAL
fiber route miles
Completed the spino of CSAL
fiber route miles
Completed the spino of CSAL
fiber route miles
Completed the spino of CSAL