New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Windstream Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 4, 2011 01:53PM

Windstream Corp. (WIN) filed Quarterly Report for the period ended 2011-09-30. Windstream Corp. has a market cap of $6.39 billion; its shares were traded at around $12.53 with a P/E ratio of 16.5 and P/S ratio of 1.7. The dividend yield of Windstream Corp. stocks is 7.9%. Windstream Corp. had an annual average earning growth of 0.6% over the past 5 years.



Highlight of Business Operations:

Revenues and sales increased $57.5 million, or 6.0 percent, and $345.8 million, or 12.7 percent during the three and nine month periods ended September 30, 2011, respectively, as compared to the same periods in 2010, primarily due to revenues generated from acquired business. Excluding revenues in markets acquired from NuVox Inc. (“NuVox”), Iowa Telecommunications Services, Inc. (“Iowa Telecom”), Q-Comm Corporation (“Q-Comm”) and Hosted Solutions Acquisitions, LLC (“Hosted Solutions”) of $68.1 million and $375.9 million for the three and nine month periods, respectively, revenues decreased $10.6 million, or 1.1 percent, and $30.1 million, or 1.1 percent, during the three and nine month periods ended September 30, 2011, respectively, as compared to the same periods in 2010. This decline was primarily due to the decline in access lines. These decreases were significantly offset by increases attributable to growth in data and integrated solutions and special access revenues.

Operating income decreased $3.7 million, or 1.4 percent, and increased $70.5 million, or 9.1 percent during the three and nine month periods ended September 30, 2011, respectively, as compared to the same periods in 2010. The decrease for the three month period ended September 30, 2011, as compared to the same period in 2010, was primarily due to increases in depreciation and amortization, cost of services and merger and integration expenses, and the increase for the nine month period ended September 30, 2011, as compared to the same period in 2010, was primarily due to operating income from acquired businesses and decreases in merger and integration expenses. Excluding operating income in markets acquired from Q-Comm and Hosted Solutions of $2.3 million, operating income decreased $6.0 million, or 2.2 percent during the three month period ended September 30, 2011, as compared to the same period in 2010. The decrease in operating income during the three month period ended September 30, 2011 is due to revenue declines associated with continued access line losses, as well as increases in depreciation and amortization and merger and integration expenses. Excluding operating income in markets acquired from NuVox, Iowa Telecom, Q-Comm and Hosted Solutions of $48.3 million, operating income increased $22.2 million, or 2.9 percent, during the nine month period ended September 30, 2011, as compared to the same period in 2010.The increase in operating income during the nine month period ended September 30, 2011 is attributable to decreases in merger and integration expenses and pension expense, partially offset by revenue declines associated with continued access line losses.

Operating income before depreciation and amortization (“OIBDA”) increased $20.4 million or 4.5 percent, and $173.9 million, or 13.6 percent, during the three and nine month periods ended September 30, 2011, respectively, as compared to the same periods in 2010 (see “Reconciliation of non-GAAP Financial Measures”). Excluding OIBDA in markets acquired of $25.0 million and $149.2 million during the three and nine month periods, respectively, OIBDA decreased $4.6 million, or 1.0 percent, and increased $24.7 million, or 1.9 percent, during the three and nine month periods ended September 30, 2011, respectively. The decrease for the three month period ended September 30, 2011 is due to increases in merger and integration expenses and revenue declines associated with continued access line losses, as previously discussed. The increase for the nine month period ended September 30, 2011 is primarily due to decreases in merger and integration and pension expenses, partially offset by revenue declines associated with continued access line losses, as previously discussed.

Operating income decreased $3.7 million, or 1.4 percent, and increased $70.5 million, or 9.1 percent during the three and nine month periods ended September 30, 2011, as compared to the same periods in 2010. The decrease for the three month period ended September 30, 2011, as compared to the same period in 2010, was primarily due to increases in depreciation and amortization, cost of services and merger and integration expenses, and the increase for the nine month period ended September 30, 2011, as compared to the same period in 2010, was primarily due to operating income from acquired businesses and decreases in merger and integration expenses. Excluding operating income in markets acquired of $2.3 million and $48.3 million during the three and nine month periods ended September 30, 2011, operating income decreased $6.0 million, or 2.2 percent, and increased $22.2 million, or 2.9 percent during the same periods ended September 30, 2011, as compared to the same period in 2010. The decrease in operating income during the three month period ended September 30, 2011 is due to revenue declines associated with continued access line losses, as well as increases in depreciation and amortization and merger and integration expenses. The increase in operating income during the nine month period ended September 30, 2011 is attributable to decreases in merger and integration expenses and pension expense, partially offset by revenue declines associated with continued access line losses.

Other expense, net decreased $1.5 million and $2.1 million in the three and nine month periods ended September 30, 2011, as compared to the same period of 2010. Decreases during the three months ended primarily resulted from the $5.0 million charge to earnings related to ineffectiveness of our cash flow hedges at September 30, 2011, primarily due to declines in the LIBOR rate. This loss was partially offset by the $0.9 million gain on sale of investments. Decreases during the nine months ended were primarily driven by the $3.8 million in interest expense and $1.2 million loss from the mark-to-market of the interest rate swap agreement recognized during 2010. During the fourth quarter 2010, the de-designated swaps were re-designated as part of the blend and extend (see Note 5).

Read the The complete Report



Stocks Discussed: WIN,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial