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Windstream Holdings, Inc. (WIN)

  • Mon, Mar. 30, 12:17 PM
    | 1 Comment
  • Fri, Mar. 27, 6:33 PM
    • Realty Income (NYSE:O) is up 3.3% in after-hours trade as it's set to join the S&P 500, replacing Windstream Holdings (NASDAQ:WIN), itself down 5.1% today and -0.5% after hours.
    • Windstream -- spinning off assets into a REIT -- will head to the S&P MidCap 400 to replace International Game Technology (NYSE:IGT), which is being acquired by GTECH. Meanwhile, Douglas Emmett (DEI, up 2.1% after hours) will replace Realty Income in the MidCap 400 after trading on April 6.
    • In other moves, Gentherm (THRM, +1.8% late) replaces buyout target Aviv REIT (NYSE:AVIV) in the S&P SmallCap 600 after trading on April 1; and Echo Global Logistics (ECHO, +1.9% late) will replace C&J Energy Services (NYSE:CJES) in the SmallCap 600 after trading April 1, as C&J is merging with part of Nabors.
  • Thu, Mar. 26, 2:23 PM
    • Windstream (WIN +0.6%)  shareholders will receive 1 share of CS&L for every five shares held as of Apr 10 and cash in exchange of fractional shares. It will distribute 80.1% shares and intends to use the balance 19.9% to reduce debt.
    • The company also declared pro-rated quarterly dividend of $.0659/share to shareholders of record as on Apr 10 which is conditional to the closing of spin-off.
    • Following the distribution of CS&L shares, Windstream shareholders will have 1-for-6 reverse stock split and expects to pay annual dividend of $0.60/share.
    • CS&L expects to list its common stock on Nasdaq under the symbol (CSAL) and intends to pay an annual dividend of $2.40 per share.
    • Windstream re-affirmed its financial guidance for 2015.
  • Tue, Feb. 24, 9:16 AM
  • Tue, Feb. 24, 8:50 AM
    • Windstream (NASDAQ:WIN) traded 4.6% lower in premarket action as it posted Q4 revenue ($1.44B) that declined Y/Y was lower than expected, though the company pointed to strong cash flow and looked ahead to its REIT spinoff.
    • "We have to do many things faster and better, and we will," says CEO Tony Thomas.
    • Free cash flow was $101M for Q4 ($794M for the full year); capex of $234M in Q4 ($787M for the full year).
    • Revenue breakouts: Enterprise and small business service, $747M (flat Y/Y); consumer service, $316M (flat); carrier service, $181M (down 7%); wholesale revenues, $104M (down 11%).
    • Total customer locations dropped overall as a decline in small business (357.8K, down from 395.3K) was mitigated slightly by an increase in enterprise locations (up to 217.9K from 210.4K).
    • The company guided 2015 total service revenue to be anywhere from a 4% decline to flat, and expects adjusted OIBDA margins to slip to the range of 34%-34.5%, mainly due to the "loss of high-margin carrier, switched access and universal service fund revenues."
    • Press release
    • Previously: Windstream shareholders overwhelmingly OK REIT spinoff measures (Feb. 20 2015)
    • Previously: Windstream names Gunderman to lead REIT spinoff (Feb. 12 2015)
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  • Tue, Feb. 24, 7:04 AM
    • Windstream (NASDAQ:WIN): Q4 EPS of $0.03 in-line.
    • Revenue of $1.44B (-3.4% Y/Y) misses by $10M.
    • Press Release
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  • Mon, Feb. 23, 5:30 PM
  • Fri, Feb. 20, 2:09 PM
    • Windstream (NASDAQ:WIN) shareholders voted to approve two proposals that will enable the company's spinoff of fiber, copper and other assets into the REIT that will be called Communication Sales & Leasing.
    • A 1-for-6 reverse stock split was approved, to take place after the closing of the spinoff, and a new certificate of incorporation converting Windstream into an LLC was approved and will be filed in the coming weeks.
    • With the split, Windstream plans to retain 19.9% of CS&L's shares with the rest going to Windstream shareholders. Windstream then expects to sell its shares for debt reduction.
    • The votes, which came in a special meeting, keep the spinoff on track for the first half of this year.
    • Previously: Windstream names Gunderman to lead REIT spinoff (Feb. 12 2015)
  • Thu, Feb. 12, 6:25 PM
  • Wed, Feb. 11, 1:33 PM
    • Windstream (NASDAQ:WIN) declares $0.25/share quarterly dividend, in line with previous.
    • Forward yield 11.33%
    • Payable April 15; for shareholders of record March 31; ex-div March 27.
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  • Thu, Feb. 5, 10:51 AM
    • Windstream (NASDAQ:WIN) has named Joseph Harding as its enterprise chief marketing officer and executive VP.
    • Harding takes responsibility for all marketing in the enterprise unit, including "go-to-market strategy, lead generation, product roadmap, pricing and customer insight and brand management."
    • Harding has served as CMO at Integra as well as having experience at Level 3 and MCI Communications.
    • The company has made moving upmarket via enterprise a strategic priority: "We continue to see positive trends supporting our efforts to move up-market, evidenced by a 70-basis-point acceleration in enterprise customer growth, 10% increase in average revenue per customer," said CEO Jeff Gardner in the company's November earnings call.
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  • Mon, Jan. 12, 10:48 AM
    • Citing an improved risk/reward, BofA/Merrill has upgraded Windstream (WIN +2.6%) to Buy. The telco's shares are rising in spite of a 0.7% drop for the S&P.
    • The upgrade comes with Windstream having fallen 38% from a 52-week high of $13.30. With the company's annual dividend payments about to be slashed to $0.70/share (following its REIT spinoff), its forward dividend yield is at 8.4%.
    • Windstream's Q4 results are due on Feb. 24. BofA also upgraded Frontier this morning.
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  • Dec. 18, 2014, 10:58 AM
    • Windstream (WIN -1.9%) plans to retain a 19.9% stake in its network asset REIT spinoff (set for 1H15), and distribute the other 80.1% to shareholders. The retained shares "will be sold opportunistically during a 12-month period following the spinoff, subject to market conditions, with the net proceeds used to retire debt."
    • In tandem with the spinoff, Windstream plans to carry out 1:6 reverse split, and (to avoid a $600M-$800M tax liability) convert into an LLC. Shareholders will vote on the split at a Feb. 20 meeting.
    • Windstream expects to cut its debt load by $4B through the spinoff. As previously announced, the telco's total dividend (covering both Windstream proper and the REIT) will be cut by $0.30 to $0.70/share (8% yield at current levels).
    • The announcement follows last week's surprise resignation of CEO Jeff Gardner, and his replacement by REIT spinoff chief Tony Thomas. There has been speculation Gardner's resignation stemmed from REIT plan disagreements.
    • Shares are lower on a day the S&P is up 1.3%.
  • Dec. 12, 2014, 11:06 AM
    • Windstream (NASDAQ:WIN) is falling hard after announcing yesterday afternoon long-time CEO Jeff Gardner has stepped down, and is being replaced by REIT spinoff chief/ex-CFO Tony Thomas.
    • This morning, the telco has announced Bob Gunderman, who has been serving as interim CFO since September (when Thomas was named the REIT chief), is now its permanent CFO.
    • Windstream's dividend yield is at 11.5% based on current annual dividend payments of $1.00/share, and 8.1% based on planned post-spinoff payments of $0.70/share.
  • Dec. 11, 2014, 5:17 PM
    • Jeff Gardner, Windstream's (NASDAQ:WIN) CEO since Dec. 2005, has stepped down. He's being replaced by Tony Thomas, the president of Windstream's REIT spinoff.
    • Thomas, 43, was Windstream's CFO from Aug. 2009 to Sep. 2014 (previous). Director Skip Frantz will lead the search for a new REIT CEO. The spinoff is still set to occur in 1H15.
    • WIN +0.6% AH.
  • Nov. 20, 2014, 6:04 PM
    • Windstream's (NASDAQ:WIN) job cuts impact over 2% of its 13K-strong workforce. The telco expects record a $7.5M Q4 charge, and reap $20M/year in cost savings.
    • The announcement comes two weeks after Windstream forecast its 2014 revenue growth would be at the low end of a prior guidance range of -2.5% to +1%.
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Company Description
Windstream Holdings, Inc. is a provider of communications and technology solutions, including managed services and cloud computing, to businesses nationwide. It offers broadband, voice and video services to consumers in rural markets.