Spreadsheet: 99f6054e-f9f7-4e5f-9a6d-ba13ea5b6b7f
Sheet: Sheet1

Windstream Corporation | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | Unnamed: 5 | Unnamed: 6 | Unnamed: 7 | Unnamed: 8 | Unnamed: 9 | Unnamed: 10 | Unnamed: 11 | Unnamed: 12 | Unnamed: 13
Reconciliations of Non-GAAP Financial Measures
Net Debt to OIBDA (net leverage ratio)
as of December 31, 2008
(Dollars in millions) |  |  |  |  |  | 2008
Long-term debt, including current maturities |  |  |  |  |  | 5382.5
Cash and short-term investments |  |  |  |  |  | -296.6
Net debt |  |  |  |  | (A) | 5085.9
Operating Income
for the twelve months ended December 31, 2008
(Dollars in millions)
Operating income under GAAP |  |  |  |  |  | 1132.4
Pro forma adjustments:
Impairment loss on assets held for sale |  |  |  |  |  | 6.5
Merger and integration costs |  |  |  |  |  | 6.2
Depreciation and amortization |  |  |  |  |  | 492.7
Pro forma OIBDA from current businesses |  |  |  |  | (B) | 1637.8
Net debt to OIBDA from current businesses |  |  |  |  | (A)/(B) | 3.105324215410917
Free Cash Flow |  |  |  |  |  | TWELVE MONTHS ENDED |  |  |  | Increase
(Dollars in millions) |  |  |  |  |  | December 31, |  | December 31, |  | (Decrease)
 |  |  |  |  |  | 2008 |  | 2007 |  | Amount |  | %
Net cash provided from operations |  |  |  |  |  | 1080.4 |  | 1033.7
Additions to property, plant and equipment |  |  |  |  |  | -317.5 |  | -365.7
Free cash flow |  |  |  |  | (C) | 762.9 |  | 668 |  | 94.90000000000009 |  | 0.1420658682634732
Dividends paid on common shares |  |  |  |  | (D) | 445.2
Dividend payout ratio |  |  |  |  | (D)/(C) | 0.5835627211954384
Board of Directors approved common stock repurchased as of December 31, 2008 |  |  |  |  | (E) | 200.3
Amount of free cash flow returned to shareholders |  |  |  |  | (D)+(E)=(G) | 645.5
Percentage of free cash flow returned to shareholders |  |  |  |  | (G)/(C) | 0.8461135142220474
Windstream Corporation
Reconciliations of Non-GAAP Financial Measures
 |  |  |  |  |  | 2008 |  | 2009 |  |  |  | Percent
Windstream financial guidance for 2009: |  |  |  |  |  | Results |  | Guidance Range |  |  |  | Change
(Dollars in millions)
Revenues and sales under GAAP |  |  |  |  |  | 3171 |  | 3045 | - | 3170 |  | -0.03973509933774831 | -0.0003153579312519363
Pro forma OIBDA from current businesses |  |  |  |  |  | 1638 |  | 1485 | - | 1550 |  | -0.09229828850855734 | -0.0525672371638141
 | Incremental non-cash pension expense |  |  |  |  |  |  | 90 |  | 90
Pro forma OIBDA from current businesses adjusted for non-cash pension expense |  |  |  |  |  |  |  | 1575 | - | 1640 |  | -0.03728606356968198 | 0.002444987775061263
(millions) |  |  |  |  |  | 317.5 |  | 290 | - | 320
Expected Dividend [NAME] |  |  |  |  |  |  |  | 2009
(Dollars in millions) |  |  |  |  |  |  |  | Guidance Range
Consolidated operating income under GAAP |  |  |  |  |  |  |  | 991 | - | 1056
Depreciation and amortization |  |  |  |  |  |  |  | 494 | - | 494
Pro forma OIBDA from current businesses |  |  |  |  |  |  |  | 1485 | - | 1550
Add:
 | Expected stock based compensation |  |  |  |  |  |  | 18 | - | 18
 | Incremental non-cash pension expense |  |  |  |  |  |  | 90 |  | 90
Pro forma OIBDA from current businesses adjusted for non-cash pension expense
 | and expected restricted stock compensation |  |  |  |  |  |  | 1593 |  | 1658
Subtract:
 | Expected cash paid for interest expense |  |  |  |  |  |  | 393 | - | 393
 | Expected cash taxes |  |  |  |  |  |  | 195 | - | 220
 | Expected capital expenditures |  |  |  |  |  |  | 320 | - | 290
Expected free cash flow |  |  |  |  |  |  |  | 685 | - | 755
Expected dividends paid on common shares |  |  |  |  |  |  |  | 441 | - | 441
Expected dividend payout ratio |  |  |  |  |  |  |  | 0.6437956204379562 | - | 0.5841059602649007
Notes:
OIBDA is operating income before depreciation and amortization.