Spreadsheet: 664f2ae1-3972-480d-a283-3957dbdbf0b5
Sheet: Sheet1

Unnamed: 0 | WINDSTREAM CORPORATION | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | Unnamed: 5 | Unnamed: 6 | Unnamed: 7 | Unnamed: 8 | Unnamed: 9 | Unnamed: 10 | Unnamed: 11 | Unnamed: 12 | Unnamed: 13 | Unnamed: 14 | Unnamed: 15
 | UNAUDITED CONSOLIDATED STATEMENTS OF INCOME-Page 1
 | (In millions, except per share amounts)
 |  |  | THREE MONTHS ENDED |  |  |  |  |  |  | TWELVE MONTHS ENDED
 |  |  |  |  | (G) |  | Increase |  |  |  |  | (G) |  | Increase
 |  |  | December 31, |  | December 31, |  | (Decrease) |  |  | December 31, |  | December 31, |  | (Decrease)
 |  |  | 2009 |  | 2008 |  | Amount | % |  | 2009 |  | 2008 |  | Amount | %
 | UNDER GAAP:
 | Revenues and sales:
 | Service revenues |  | 732.6 |  | 734.2 |  | -1.599999999999909 | 0 |  | 2872.8 |  | 2988.9 |  | -116.1 | -3.884372177055101
 | Product sales |  | 21.8 |  | 43.3 |  | -21.5 | -49.65357967667435 |  | 123.8 |  | 182.6 |  | -58.8 | -32.20153340635268
 | Total revenues and sales |  | 754.4 |  | 777.5 |  | -23.09999999999991 | -2.971061093247576 |  | 2996.6 |  | 3171.5 |  | -174.9 | -5.514740658994155
 | Costs and expenses:
 | Cost of services |  | 252.9 |  | 245.2 |  | 7.700000000000045 | 3.140293637846675 |  | 1006.8 |  | 1005.4 |  | 1.399999999999977 | 0
 | Cost of products sold |  | 17.6 |  | 41.8 |  | -24.2 | -57.89473684210529 |  | 107.5 |  | 169.8 |  | -62.3 | -36.6902237926973
 | Selling, general, administrative and other |  | 89 |  | 83.5 |  | 5.5 | 6.58682634730539 |  | 356 |  | 350 |  | 6 | 1.714285714285714
 | Depreciation and amortization |  | 138.7 |  | 124 |  | 14.69999999999993 | 11.85483870967736 |  | 537.8 |  | 492.7 |  | 45.1 | 9.153643190582498
 | Restructuring charges |  | 1.8 |  | 6.4 |  | -4.6 | -71.875 |  | 9.3 |  | 8.5 |  | 0.8000000000000007 | 9.41176470588236
 | Merger and integration costs |  | 19.9 |  | 0 |  | 19.9 | 100 |  | 22.3 |  | 6.2 |  | 16.1 | 259.6774193548387
 | Impairment loss on assets held for sale (A) |  | 0 |  | 0 |  | 0 | 0 |  | 0 |  | 6.5 |  | -6.5 | -100
 | Total costs and expenses |  | 519.9 |  | 500.9 |  | 19.00000000000006 | 3.793172289878231 |  | 2039.7 |  | 2039.1 |  | 0.5999999999996817 | 0
 |  |  |  |  |  |  | 0 |  |  |  |  |  |  | 0
 | Operating income |  | 234.5 |  | 276.6 |  | -42.1 | -15.22053506869122 |  | 956.9000000000005 |  | 1132.4 |  | -175.4999999999993 | -15.49805722359584
 |  |  |  |  |  |  | 0 |  |  |  |  |  |  | 0
 | Other income, net |  | -0.3 |  | -7 |  | 6.7 | 95.71428571428572 |  | -1.1 |  | 2.1 |  | -3.2 | -152.3809523809524
 | Interest expense |  | -115.2 |  | -104.5 |  | 10.7 | 10.23923444976075 |  | -410.2 |  | -416.4 |  | -6.199999999999989 | -1.488952929875118
 | Income from continuing operations before income taxes |  | 119 |  | 165.1 |  | -46.1 | -27.92247122955777 |  | 545.6000000000006 |  | 718.1 |  | -172.4999999999992 | -24.02172399387262
 | Income taxes |  | 43.5 |  | 74.2 |  | -30.7 | -41.37466307277627 |  | 211.1 |  | 283.2 |  | -72.1 | -25.4590395480226
 | Income from continuing operations |  | 75.50000000000034 |  | 90.90000000000032 |  | -15.4 | -16.94169416941686 |  | 334.5000000000006 |  | 434.9 |  | -100.3999999999992 | -23.08576684295224
 | Discontinued operations, net of tax  (B) |  | 0 |  | -9.8 |  | 9.8 | -100 |  | 0 |  | -22.2 |  | 22.2 | 100
 | Net Income |  | 75.50000000000034 |  | 81.10000000000032 |  | -5.599999999999978 | -6.905055487052966 |  | 334.5000000000006 |  | 412.7 |  | -78.19999999999924 | -18.94838866004344
 | Weighted average common shares |  | 430 |  | 436.1 |  | -6.100000000000023 | -1.398761751891773 |  | 432.9 |  | 440.7 |  | -7.800000000000011 | -1.769911504424782
 | Earnings per share:
 | Basic and diluted earnings per share (C):
 | Income from continuing operations |  | 0.17 |  | 0.21 |  | -0.04 | -19.04761904761904 |  | 0.76 |  | 0.98 |  | -0.22 | -22.44897959183673
 | Loss from discontinued operations |  | 0 |  | (.02) |  | .02 | 100 |  | 0 |  | (.05) |  | .05 | 100
 | Net Income |  | 0.17 |  | 0.19 |  | -0.02 | -10.52631578947368 |  | 0.76 |  | 0.93 |  | -0.17 | -18.17956989247312
 | PRO FORMA RESULTS OF OPERATIONS FROM CURRENT BUSINESSES (D):
 | Revenues and sales |  | 777.8 |  | 808 |  | -30.2 | -3.737623762376243 |  | 3121.3 |  | 3289.2 |  | -167.9 | -5.104584701447163
 | OIBDA (E) |  | 404.1 |  | 422.4 |  | -18.30000000000018 | -4.332386363636406 |  | 1591.3 |  | 1722.3 |  | -130.9999999999991 | -7.606108111246537
 | Adjusted OIBDA (F) |  | 433.3 |  | 433.7 |  | -0.4000000000002046 | -0.09222965183311148 |  | 1710.7 |  | 1751.2 |  | -40.49999999999909 | -2.312699862951068
(A) During 2008, the Company recognized a non-cash impairment charge to adjust the carrying value of its wireless spectrum holdings classified as acquired assets held for sale to its fair market value.
(B) | In the fourth quarter of 2008, Windstream completed the sale of its wireless business to AT&T Mobility II, LLC.  Accordingly, we have presented the operating results of the wireless business as discontinued operations.
(C) | Effective January 1, 2009, the Company adopted the revised authoritative guidance regarding participating shares for calculating earnings per share, and commensurate therewith, has retrospectively adjusted prior period earnings per share data, the impact of which was immaterial.
(D) | Pro forma results from current businesses adjusts results of operations under GAAP to include the acquisitions of D&E Communications, Inc. ("D&E") and Lexcom Inc. ("Lexcom"), and to exclude the results of the disposed out of territory product distribution operations, all merger and integration costs related to strategic transactions and the impairment charge recognized on assets held for sale.  For further details on these adjustments, see the Notes to Unaudited Reconciliation of Revenues and Sales and Operating Income Under GAAP to Pro Forma Revenues and Sales and Pro Forma Adjusted OIBDA from Current Businesses.
(E) | OIBDA is operating income before depreciation and amortization.
(F) | Adjusted OIBDA is OIBDA, adjusted to remove the impacts of restructuring charges, pension and restricted stock expense.  For further details on these adjustments, see the Notes to Unaudited Reconciliation of Revenues and Sales and Operating Income Under GAAP to Pro Forma Revenues and Sales and Pro Forma Adjusted OIBDA from Current Businesses.
(G) | In the first quarter of 2009, the Company reorganized its operations to integrate the sales and administrative functions of the product distribution segment into its wireline operations.  As a result of this change, the chief operating decision maker no longer reviews the financial statements of the product distribution operations on a stand alone basis, and the Company operates as a single reporting segment.  Segment results of operations have been retrospectively adjusted to reflect a single segment presentation for all periods presented.  Additionally, certain amounts previously reported have been reclassified to conform to the current year presentation of the consolidated financial statements.  These changes and reclassifications did not impact operating or net income.
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