Windstream (WIN) Reports Narrower-than-Expected Q2 Loss
Zacks Investment Research | Aug 05, 2016 07:17AM ET
Windstream Holdings Inc. (NASDAQ:WIN) reported mixed financial results in the second quarter of 2016. The company incurred a narrower-than-expected loss in the quarter, while revenues lagged the Zacks Consensus Estimate.
On a GAAP basis, the company generated net income of $1.5 million or 1 cent per share, as against a net loss of $111.2 million or $1.13 per share in the year-ago quarter. On an adjusted basis, the company reported loss per share of 29 cents, considerably narrower than the Zacks Consensus Estimate of a loss of 43 cents.
Total revenue declined 4.3% year over year to $1,359.6 million in the second quarter, missing the Zacks Consensus Estimate of $1,375.4 million. Service revenues declined 3.3% to $1,331.3 million while Product revenues plunged 35.5% to $28.3 million.
In the reported quarter, total operating expenses were $1,205 million, up 10.2% year over year. Operating income was $1546 million, up a whopping 95% year over year. Adjusted OIBDA (operating income before depreciation and amortization) was $318.8 million, up 0.6% year over year.
Cash Flow
In the second quarter of 2016, Windstream generated $297.3 million of cash from operations compared with $136.2 million in the prior-year quarter. In the reported quarter, adjusted free cash flow was a negative $13.4 million compared with a negative $91.4 million in the year-ago quarter.
Liquidity
Windstream exited the second quarter of 2016 with $41.6 million of cash and cash equivalents and $4,743.5 million of total debt.
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