Windstream Holdings Inc. (fka WINMQ)

[MCArmel1]

Windstream EPS of -$1.13

Aug 6 2015, 07:02 ET | About: Windstream Holdings, Inc. (WIN) | By: Jignesh Mehta, SA News Editor

Windstream (NASDAQ:WIN): Q2 EPS of -$1.13 may not be comparable to consensus of -$0.61.
Revenue of $1.42B (-3.4% Y/Y) in-line.
Press Release

http://seekingalpha.com/news/2701566-windstream-eps-of-1_13?uprof=45#email_link


Windstream Reports Second-Quarter Results and Implements a $75 Million Share Repurchase Program
Thu August 6, 2015 6:59 AM|GlobeNewswire | About: WIN

LITTLE ROCK, Ark., Aug. 6, 2015 (GLOBE NEWSWIRE) -- Windstream (NASDAQ:WIN) today reported second-quarter results highlighted by improving financial trends and the announcement of a share repurchase program.

"We are on the right track strategically and financially. The new business unit structure has sharpened our focus and is driving operational excellence," said Tony Thomas, president and chief executive officer. "The board and management team are confident in the future and remain focused on enhancing profitability and creating value for our shareholders."

Share Repurchase Program

Today Windstream announced a share repurchase program of up to $75 million, which is expected to be completed by December 31, 2016. Windstream will buy back shares opportunistically through open market purchases funded primarily by cash from operations.

"In order to create value for our shareholders, the board of directors has authorized a share repurchase program of up to $75 million," Thomas added. "Windstream stock is significantly undervalued and a share buyback is an attractive investment and an efficient way to return capital to shareholders."

In addition, the board of directors declared the regular quarterly dividend of 15-cents per share to shareholders of record as of Sept 30, 2015.

Pro Forma Financial Results

Total revenues were $1.4 billion and grew sequentially by $10 million in the second quarter.

Consumer service revenues in the second quarter were $314 million, which grew $2 million relative to the first quarter, and were essentially unchanged from the same period a year ago.

"We again continue to see positive momentum in our consumer channel and we are making targeted investments to generate revenue growth in these attractive high margin businesses," Thomas said.

ILEC small business revenues in the second quarter were $108 million as we continue to invest in high-speed Internet capabilities to drive additional broadband revenue growth.

Carrier service revenues were $156 million, excluding legacy wireless TDM, in the second quarter, which was up year over year due to growth in Ethernet sales, wholesale revenues and improving sales of our expanded long-haul express network.

Enterprise service revenues were $485 million in the second quarter, up 3.5 percent from the same period a year ago, led by demand for IP-based solutions and next generation data. Data and integrated solution service revenues within Enterprise also grew approximately 7.3 percent.

CLEC Small Business service revenues were $146 million in the second quarter as we continue to focus on retention, selling incremental services to existing customers and cost reductions to deliver profitable revenue opportunities.

Adjusted OIBDAR was $489 million in the second quarter and was flat sequentially, with margins of 34.5 percent.

Adjusted OIBDA was $327 million in the second quarter and capital expenditures were $255 million in the second quarter.

On a year-to-date basis, adjusted free cash flow was $141 million.

Balance Sheet

In connection with the REIT spinoff, Windstream paid down $3.2 billion in debt which will provide approximately $170 million in annual interest savings. In addition, Windstream retained just under 20% of CS&L, currently valued at $624 million, and are committed to using the proceeds to reduce debt.

Windstream also amended its credit facility to extend the maturity of its $1.25 billion revolver for 5 years and improved the interest rate on the company's borrowings.

More...

http://seekingalpha.com/pr/14330106-windstream-reports-second-quarter-results-and-implements-a-75-million-share-repurchase-program