Windstream reports fourth-quarter, full-year 2013 results
Release date: Feb. 27, 2014
LITTLE ROCK, Ark. - Windstream (Nasdaq: WIN) grew strategic revenues 2 percent in 2013 as the company continued to execute on its strategy to become the nation’s premier enterprise communications and services provider.
“2013 was a solid year for Windstream. Our business team finished the year strong, generating sequential revenue growth again, and our consumer team continued to grow broadband revenue and deliver steady results, all of which better position us to achieve our goals and deliver value to shareholders,” said Jeff Gardner, president and CEO.
Growing Strategic Revenue
Windstream grew strategic revenue 2 percent year-over-year in 2013. Total business and consumer broadband revenues represented 73 percent of the company’s total revenues at the end of the fourth quarter.
Maintaining Healthy Margins
Through disciplined expense management, Windstream delivered $2.32 billion in Adjusted OIBDA and maintained stable margins of 39 percent for 2013, while continuing to reposition the business in growth areas and navigating regulatory reform.
Investing Capital for Growth
Windstream continued to invest in its network to provide a platform for continued success. The company deployed fiber to approximately 2,000 wireless towers, opened three data centers and expanded and enhanced its broadband network throughout the year.
Improving the Balance Sheet
During the year, Windstream reduced its debt by more than $200 million. The company also refinanced almost $4 billion in debt in 2013, which extended debt maturities and lowered cash interest expense.
Returning Capital to Shareholders
Windstream generated strong adjusted free cash flow of $891 million for the year and paid $594 million in dividends to shareholders, representing a dividend payout ratio of 67 percent of adjusted free cash flow.
Pro Forma Financial Results
Total revenues and sales were $1.5 billion in the fourth quarter, a decline of 3 percent from the same period a year ago, and $6.0 billion for the year, a decline of 2 percent year-over-year. Strategic revenue was $4.3 billion for the year, an increase of 2 percent year-over-year.
Business service revenues were $920 million in the fourth quarter, up $4 million sequentially and $3 million year-over-year. Data and integrated services grew more than 3 percent in the fourth quarter from the same period a year ago to $412 million due to growth in integrated voice and data services and data center services. For the full year, Windstream generated $3.7 billion in business service revenues, an increase of 1 percent year-over-year.
Consumer broadband service revenues in the fourth quarter were $119 million, up 3 percent from the same period in 2012, and $476 million for the year, up 4 percent year-over-year.
Overall consumer service revenues in the fourth quarter were $318 million, a decrease of 5 percent from the same period a year ago, and $1.3 billion for the year, a decrease of 3 percent year-over-year.
The following information was filed by Windstream Holdings, Inc. (WIN) on Thursday, February 27, 2014 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.