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Monday, 11/16/2015 3:02:06 AM

Monday, November 16, 2015 3:02:06 AM

Post# of 9364
Windstream beats by $0.26, beats on revenue

Nov 5 2015, 07:10 ET | About: Windstream Holdings, Inc. (WIN) | By: Gaurav Batavia, SA News Editor

Windstream (NASDAQ:WIN): Q3 EPS of -$0.08 beats by $0.26.

Revenue of $1.5B (+3.4% Y/Y) beats by $30M.

Press Release


http://seekingalpha.com/news/2900086-windstream-beats-by-0_26-beats-on-revenue?uprof=45#email_link


Windstream Reports Third-Quarter Results
Thu November 5, 2015 6:59 AM|GlobeNewswire | About: WIN

• Total revenue of approximately $1.5 billion grew sequentially
• Enterprise service revenue of $501 million, up $15 million sequentially and 5 percent year-over-year
• Data center sale proceeds to accelerate network modernization and enable debt reduction
• Completed $20 million, or 25 percent, of share repurchase plan and repurchased $290 million of high-coupon bonds

LITTLE ROCK, Ark., Nov. 5, 2015 (GLOBE NEWSWIRE) -- Windstream (WIN) today reported its third-quarter results highlighted by continued improvements in financial trends, demonstrated by sequential revenue growth.

"The Windstream team is executing on all facets of our strategy and driving progress," said Tony Thomas, Windstream president and chief executive officer. "Total revenue grew sequentially, excluding the incremental CAF-2 revenues received. We continue to see steady results in our Consumer and ILEC SMB units, and Enterprise revenue growth accelerated."

Windstream announced on October 19, 2015 the sale of its data center business for $575 million. The net proceeds from this transaction will enable debt reduction of approximately $300 million and fund "Project Excel". Project Excel is a $250 million program that accelerates Windstream's plans to upgrade and modernize the company's broadband capabilities by year-end 2016, or two years ahead of the previous timeline.

"These network upgrades will provide a great customer experience, drive higher customer revenue and allow us to increase market share," Thomas said.

Share Repurchase Program and Quarterly Dividend

During the third quarter, Windstream repurchased 3.1 million shares for $20 million, or 25 percent of the $75 million share repurchase plan announced in August, which is expected to be completed by December 31, 2016. "Windstream is focused on returning value to our shareholders," Thomas said.

In addition, the board of directors declared the regular quarterly dividend of 15-cents per share to shareholders of record as of December 31, 2015.

Pro Forma Financial Results

Total revenue was $1.5 billion in the third quarter, up $80 million sequentially due to organic growth of $7 million and incremental CAF-2 revenue of $73 million. Consumer service revenue was up on a sequential basis with continued growth in high-speed Internet (HHH) bundled revenue.

ILEC small business revenues were $107 million in the third quarter, remaining steady as growth in integrated voice and data services helped mitigate customer disconnects.

Carrier service revenues were $169 million, aided by growth in new high-bandwidth WAVE sales and wireless Ethernet.

Enterprise service revenues were $501 million in the third quarter, up $15 million sequentially and 5 percent year-over-year. Data and integrated service revenues grew 8.6 percent year-over-year.

CLEC small business service revenues were $146 million, flat sequentially. This was a meaningful improvement from recent trends, aided by increased focus on customer retention and higher ARPU. In addition, Windstream is enhancing profitability with targeted cost reductions.

Adjusted OIBDAR, which excludes the lease payment to CSAL, was $550 million in the third quarter, up sequentially and year-over-year, with margins of 36.7 percent.

On a year-to-date basis, adjusted free cash flow was $192 million.

Balance Sheet

Windstream utilized secured debt capacity under its revolver to repurchase $290 million in high-cost debt in the open market, allowing a reduction of the 2017 maturities from $1.1 billion to $910 million outstanding and the repurchase of $100 million in longer dated bonds.

The data center sale will enable further debt reduction of $300 million. Following the spin-off of Communications Sales & Leasing, Inc. (CSAL), Windstream retained a 20 percent equity stake in CSAL, currently valued at approximately $595 million, which the company will monetize at the right time and use the proceeds to further reduce debt.

GAAP Financial Results

In the third quarter under Generally Accepted Accounting Principles (GAAP), Windstream reported total revenue of $1.50 billion and a net loss of $7 million, or $(0.08) per share. That compares to total revenue of $1.46 billion and net income of $8 million, or 7 cents per share, during the same period in 2014.

Financial Outlook for 2015

Windstream is updating its 2015 guidance to reflect the CAF-2 program. In addition, Windstream updated its cash tax guidance to $10 million, an improvement from its previous expectation of $20 million.

More...


http://seekingalpha.com/pr/15250066-windstream-reports-third-quarter-results

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