Windstream Holdings Inc. (fka WINMQ)

[MCArmel1]

Windstream EPS in-line, misses on revenue

Feb 24 2015, 07:04 ET | About: Windstream Holdings, Inc. (WIN) | By: Niloofer Shaikh, SA News Editor

Windstream (NASDAQ:WIN): Q4 EPS of $0.03 in-line.
Revenue of $1.44B (-3.4% Y/Y) misses by $10M.
Press Release

http://seekingalpha.com/news/2319316-windstream-eps-in-line-misses-on-revenue?auth_param=ano5b:1aeoqae:1150239d3a8152b7421aa124b6c82e11&uprof=45#email_link


Windstream Reports Fourth-Quarter, Full-Year 2014 Results
Tue February 24, 2015 7:00 AM|GlobeNewswire | About: WIN

LITTLE ROCK, Ark., Feb. 24, 2015 (GLOBE NEWSWIRE) -- Windstream (Nasdaq:WIN) generated substantial adjusted free cash flow in 2014 driven by enterprise customer growth and improved consumer trends.

"Windstream produced strong cash flow in 2014, although total revenues were lower than expected. We also made great progress toward completing the real estate investment trust spinoff within the next several months, which will make Windstream a stronger, more competitive company," said Tony Thomas, president and chief executive officer, who was appointed to the position on Dec. 11.

"Since my appointment as CEO, we have made a number of significant changes to the business to better serve customers and improve profitability. These changes, combined with planned initiatives, will advance our goals of improving the customer experience, operating a best-in-class network and delivering improved financial results and increased value for shareholders. Overall 2014 results fell short of our expectations, and we are taking the necessary actions to put us on the path for success. We will make significant progress this year on our goals. We have to do many things faster and better, and we will," Thomas said.

2014 Highlights

Creating Value Through REIT Spinoff

Windstream announced on July 29 plans to spin off certain telecommunications network assets into an independent publicly traded real estate investment trust. The transaction enhances Windstream's financial and strategic flexibility, accelerates network investments and creates shareholder value. The transaction is expected to close in the second quarter of this year.

Generating Substantial Free Cash Flow

Windstream generated strong adjusted free cash flow of $794 million for the year and paid $602 million in dividends to shareholders.

Growing Enterprise Customers & ARPU

Enterprise customer locations, which generate $750 or more in revenue per month, grew 3.6 percent and average revenue per business customer grew 9 percent year-over-year.

Improving Consumer Trends

The consumer channel continued to stabilize and delivered strong results with revenues declining less than 2 percent for the year. Consumer broadband revenue increased year-over-year due to continued demand for faster speeds and additional services.

Investing Capital for Growth

Windstream invested approximately $787 million in capital expenditures in 2014, with approximately two-thirds directed to growth initiatives, including fiber deployment and broadband expansion and enhancements.

Pro Forma Financial Results

Total revenues and sales were $1.4 billion in the fourth quarter, a decline of 3 percent from the same period a year ago, and $5.8 billion for the year, a decline of 3 percent year-over-year.

Enterprise and small business service revenues were $747 million in the fourth quarter and $3 billion for the full year, essentially flat year-over-year for both periods. Data and integrated services revenues grew approximately 4 percent in the fourth quarter from the same period a year ago to $427 million led by demand for IP-based solutions and next generation data. Data center and managed services revenues were $34 million in the fourth quarter, an increase of 21 percent year-over-year.

Consumer broadband service revenues in the fourth quarter were $121 million, up 1 percent from the same period in 2013, and $483 million for the year, up 1 percent year-over-year.

Overall consumer service revenues in the fourth quarter were $316 million, essentially unchanged from the same period a year ago, and $1.3 billion for the year, a decrease of 2 percent year-over-year.

Carrier service revenues in the fourth quarter were $181 million, a decline of 7 percent from the same period a year ago, primarily caused by wireless carrier migrations from legacy TDM circuits to newer Ethernet technology. For the year, carrier service revenues were $734 million, a decline of 6 percent year-over-year.

Wholesale revenues in the fourth quarter were $104 million, a decrease of 11 percent from the same period a year ago primarily caused by reductions from intercarrier compensation reform. For the year, wholesale revenues were $433 million, a decrease of 10 percent year-over-year.

Windstream updated its supplemental schedules this quarter to separate carrier service revenues from enterprise and small business service revenues to better align to the way it is now managing the business. In addition, certain resale wholesale service revenues are now included with carrier service revenues.

Adjusted OIBDA was $532 million in the fourth quarter, which was up $7 million sequentially, and $2.1 billion for the year.

Adjusted capital expenditures were $234 million in the fourth quarter. For the year, adjusted capital expenditures were $787 million.

Adjusted free cash flow was $101 million in the fourth quarter and $794 million for the year. The company paid shareholders $602 million in dividends for the year.

More...

http://seekingalpha.com/pr/12607266-windstream-reports-fourth-quarter-full-year-2014-results