Edgar Filing: IOWA TELECOMMUNICATIONS SERVICES INC

425

Filed by Windstream Corporation

Pursuant to Rule 425 under the Securities Act of 1933

and deemed filed pursuant to Rule 14a-12 under the

Securities Exchange Act of 1934

Subject Company: Iowa Telecommunications Services, Inc.

Commission File No. 001-32354

The attached presentation may be deemed to be solicitation material in respect of the proposed merger of Iowa Telecommunications Services, Inc. (“Iowa”) and Windstream Corporation (“Windstream”). In connection with the proposed merger, Windstream will file a Registration Statement on Form S-4 with the SEC that will contain a proxy statement/prospectus. Iowa investors and security holders are advised to read the proxy statement/prospectus and any other relevant documents filed with the SEC when they become available because those documents will contain important information about Iowa, Windstream and the proposed merger. The final proxy statement/prospectus will be mailed to shareholders of Iowa. Investors and security holders may obtain a free copy of the proxy statement/prospectus when it becomes available at the SEC’s Web site at www.sec.gov. Free copies of the proxy statement/prospectus, when it becomes available, may also be obtained from Windstream upon written request to Windstream Investor Relations, 4001 Rodney Parham Road, Little Rock, AR 72212 or by calling (866) 320-7922, or from Iowa through its investor relations web site (www.iowatelecom.com) or by directing a request to Iowa at 403 W. Fourth Street North, Newton, Iowa 50208 or by calling (641) 787-2000.

Iowa, Windstream and their respective officers and directors may be deemed, under SEC rules, to be participants in the solicitation of proxies from Iowa’s shareholders with respect to the proposed merger. Information regarding the officers and directors of Iowa is included in its definitive proxy statement for its 2009 annual meeting filed with the SEC on April 29, 2009. Information regarding the officers and directors of Windstream is included in its Form 10-K for 2008 filed on February 19, 2009 and in its definitive proxy statement for its 2009 annual meeting filed with the SEC on March 23, 2009. More detailed information regarding the identity of potential participants in the solicitation, and their direct or indirect interests, by securities, holdings or otherwise, which interests may be different from those of Iowa’s shareholders generally, will be set forth in the proxy statement/prospectus and other materials to be filed with SEC in connection with the proposed transaction.

Windstream Communications

Tony Thomas, Chief Financial Officer

Mary Michaels, Director Investor Relations

Bank of America Merrill Lynch Marketing Trip

December 1, 2009

Safe Harbor”

Statement

Windstream claims the protection of the safe-harbor for forward-looking statements contained in the Private Securities

Litigation Reform Act of 1995. Forward-looking statements, including statements regarding the completion of the

acquisition and expected benefits of the acquisition, are subject to uncertainties that could cause actual future events and

results to differ materially from those expressed in the forward-looking statements. These forward-looking statements are

based on estimates, projections, beliefs and assumptions that Windstream believes are reasonable but are not guarantees

of future events and results. Actual future events and results of Windstream may differ materially from those expressed in

these

forward-looking

statements

result

number

important

factors.

Factors

that

could

cause

actual

results

differ materially from those contemplated above include, among others: receipt of required approvals of regulatory

agencies;

the

possibility

that

the

anticipated

benefits

from

the

acquisition

cannot

fully

realized

may

take

longer

realize than expected; the possibility that costs or difficulties related to the integration of Iowa Telecom operations into

Windstream will be greater than expected; the ability of the combined company to retain and hire key personnel; and those

additional

factors

under

the

caption

“Risk

Factors”

Windstream’s

Form

10-K

for

the

year

ended

Dec.

31,

2008

and

subsequent Securities and Exchange Commission filings. In addition to these factors, actual future performance, outcomes

and results may differ materially because of more general factors including, among others, general industry and market

conditions and growth rates, economic conditions, and governmental and public policy changes. Windstream undertakes

no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or

otherwise. The foregoing review of factors that could cause Windstream's actual results to differ materially from those

contemplated in the forward-looking statements should be considered in connection with information regarding risks and

uncertainties that may affect Windstream's future results included in Windstream’s filings with the Securities and Exchange

Commission at www.sec.gov.

“Safe Harbor”

Statement

Regulation G Disclaimer

This

presentation includes certain non-GAAP financial measures. On the Windstream investor relations web site, the

company has posted additional information regarding these non-GAAP financial measures, including a reconciliation of

each of such measure to the most directly comparable GAAP measure. The Investor Relations Web site is located at

www.windstream.com/investors.

Windstream

is. . . . A COMMUNICATIONS AND

ENTERTAINMENT COMPANY SERVING RURAL AMERICA

Access Lines: 3M

Long-distance customers: 1.9M

High-speed Internet customers: 1.1M

Digital TV customers: 323K

(1)

Last 12 months ended 9/30/09

(2)

Revenue is pro forma to exclude the results of the divested wireless and external supply businesses

(3)

OIBDA is defined as Operating Income Before Depreciation and Amortization. Pro forma to exclude the results of the divested wireless

and supply businesses as well as merger and integration costs and non cash pension expense

(4)

Free cash flow is defined as net cash from operations less capital expenditures

(5)

As of 9/30/09

Financial Overview

(1)

Favorable Rural Markets

Geographically Diverse Serving 16 States

Operational Overview

(5)

Revenue

(2)

: $3.0B

OIBDA

(3)

: $1.6B

Free Cash Flow

(4)

: $787M

FCF / Share: $1.81 per share

Dividend: $1.00 per share

Dividend Payout Ratio: 56%

Net Leverage: 3.2x

Focus on free cash flow accretive activities

Transform company to broadband and business model

Windstream Business Model

Driving Shareholder Value

Increase competitiveness and improve service levels

Drive 3 core products (high-speed Internet, digital TV and voice)

Aggressively manage expenses and capex

Sustain free cash flow

Financial Objectives

Strategic Objectives

Operating Objectives

Returning Capital to Shareholders

Windstream Strategic Objectives

Driving Shareholder Value

Pursuing FCF Accretive Deals. . .

$400

million

repurchase

plan

–

repurchased

~$320M

through

October

To date, we have repurchased 29M shares, yielding annual dividend

savings of $29M

Including dividends, returned ~$560M of capital to shareholders in 2009

Valor (2006)

CT Communications (2007)

D&E Communications (2009)

Lexcom (2009)

NuVox (2009 –

pending)

Iowa Telecommunications

(2009-

pending)

. . .That are Good Strategic Fits

Free cash flow accretive deals

Opportunity to generate meaningful

synergies

Focusing on properties in attractive markets

(rural / away from major metropolitan areas)

Favorable competitive environment

Well-positioned network

Maintaining leverage in same range

Acquisition of Iowa Telecommunications

Wireless spectrum covers 75% of Iowa’s access lines

Potential for additional expansion in data services and wholesale segments

Strong EBITDA margins and high free cash flow conversion

Additional upside via synergy realization from recently completed acquisitions

Limited exposure to subsidies with only ~3% of revenues from USF

Solid Financial and

Operating

Performance

Other Potential

Opportunities

Very Rural LEC

Vast majority of communities served are under 2,000 in population

Strong local brand

Extensive

fiber

footprint

Midwest

with

over

4,800

owned

route

miles

Estimated present value of tax assets of ~$130M (~$3.90/share)

Federal NOL of $157 as of 12/31/08, expiring in 2021-2024

Goodwill amortization of ~$41M annually through June 2015

Significant Tax Assets

(1)

LTM revenue and OIBDA results shown pro forma for the acquisition of Sherburne Telecommunications. LTM capex

and free cash flow results shown as actual.

(2)

Defined as net cash from operating activities less capital expenditures.

Iowa Highlights

IOWA Telecommunications Overview

Financial

Overview

(LTM

Sept.

2009

(1)

Revenue: $275M

Adjusted OIBDA $130M

Capex: $24M

Free

Cash

Flow

(2)

$69M

Operating Overview

(Sept. 2009):

ILEC Lines: 214,100

CLEC Lines: 41,500

Broadband Subs: 94,500

Video Subs: 26,400

Acquisition of NuVox

Provides full service solutions from basic voice to VoIP and managed

services including webhosting, network security and data center services

Over 60% of sales from IP and managed services

Attractive top line revenue growth

Improving OIBDA and free cash flow margins

Solid free cash flow generation

Strong Performance

and Track Record

Advanced IP Centric

Services and Full

Product Offering

Leading

Communications

Service Provider

Regional CLEC with strong franchise, operating history and mgmt team

Leading provider to SMEs in underserved, less competitive markets

Well balanced, aggressive sales distribution

Fully deployed IP-centric network plus traditional TDM network

Company owned switching gateways & points of presence in all

markets serviced

Well-positioned

Network

(1) Excludes merger and integration costs

NuVox Overview

NuVox Highlights

Financial Overview

Revenue

$565M

Pro forma OIBDA(2)

$112M

Estimated Synergies

$30M

Business Overview

Footprint

16 States

Customer Locations

88k

Positioning Company as a Leading Rural Provider

Acquisitions add complementary rural markets to Windstream’s footprint

On a pro-forma basis, Windstream will operate in 23 states

Note: Windstream and NuVoX shared markets: Little Rock, AR, Lexington, KY, Charlotte, Greensboro and Raliegh, NC

Integration Strategy Staged and Manageable

The integration plans are staged in a manageable way, with D&E expected to be

fully integrated in the next few months

We expect to maintain NuVox’s billing platform and convert existing Windstream

CLEC

operations

that

platform,

making

the

integration

process

fairly

straightforward

Windstream has the experience and a solid track record of successfully integrating

acquisitions

Combined Financial Overview

Pursuing an Opportunistic Growth Strategy

(Dollars in Millions)

Total

Expected

Combined

LTM 9/30/09

Windstream

D&E

Lexcom

NuVox

Iowa

(3)

Pre-Synergies

Synergies

(4)

Company

Revenue

2,963

145

565

275

3,991

Adjusted OIBDA

(1)

1,591

112

130

1,920

2,006

Margin

54%

44%

54%

20%

47%

50%

Capex

305

426

(8)

418

Operating Cash Flow

(2)

1,286

106

1,494

1,588

(1)

Excludes pension expense and merger and integration expense

(2)

Defined as Adjusted OIBDA less capex

(3)

LTM results shown pro forma for the acquisition of Sherburne Telecommunications where available

(4)

Includes expected synergies for all pending transactions

Improving Windstream’s

Financial Profile with Free Cash Flow

Accretive Acquisitions while Maintaining a Solid Balance Sheet

Focusing on Growth Areas of the Business

Transforming Company to Broadband and Business

Model

Pro Forma for all Pending Transactions, Over 50% of Windstream’s

Revenue will be From Broadband and Business Customers

Monetizing the Broadband Connection

Network positioned to drive incremental revenue

Increasing Broadband ARPU with

Faster Internet Speeds

20%

40%

60%

80%

100%

1.5 Mbps

3.0 Mbps

6.0 Mbps

10-12 Mbps

Upgraded our core network to increase

capacity, speed and reliability

Selling add-on services to drive

incremental revenue and improve

retention

Internet security suite

Home networking

Video on demand

Tech help –

PC support

Online back-up –

secure on-line

storage

Leveraging Existing Infrastructure

to Increase Sales Opportunities

Approximately 84% of 3Q09 gross adds

subscribed to 3Mb or faster Internet speeds

vs. 66% in 3Q08

Internet Speed Availability

(% of Total Addressable Lines)

Positioning the Company to Capitalize on Business

Opportunities

CLEC Business

•

~ 133k CLEC lines

•

NuVox transaction

adds ~ 90k customers

and advances our

strategy of expanding

service to business

customers

•

Focusing on less

competitive tier 2 and 3

markets

The business channel represents just over one third of Windstream’s total

revenue

We have re-aligned the organization to shift resources to the business

organization in order to improve focus, execution and customer service

Additionally, we have invested in our network over the past several years to

deliver next generation data services and expand IP product availability

Small / Med Business

•

Targeting 1 -10 line

business customers

•

Providing local, long-

distance, Internet, and

digital TV services

•

Bundling key products

while selling value-

added services to

increase ARPU and

improve retention

Enterprise Business

•

Targeting 11+ line

business customers

•

Offering full suite of

voice, Internet and

next generation data

networking solutions

•

Providing special

access services to

business and

wholesale customers

Growth Opportunities for the Business and

Enterprise Channel

Increasing penetration of

next generation data

services

•

Virtual Private Networks (VPN) and Virtual

LAN services (VLS) enable customers to

connect multiple branch offices and

remote locations

Improved Internet offering

with Ethernet Internet

Access

Selling value-added

services

Increasing special access

opportunities as data

needs grow

•

Dedicated Internet connection provides higher

performance and reliability

•

3 Mbps to 10Mbps speeds in most markets

•

Offers symmetrical upload / download speeds

•

Network security

•

Data back-up

•

PC Support

•

With the increasing demand for bandwidth,

business and wireless providers have

growing needs for additional network

transport capabilities

•

Webhosting

•

Web conferencing

•

Faster Internet speeds

Marketing at the local level

Door-to-door sales strategy

Partnering relationships

DISH / DirecTV

Agents

E-commerce

New mover services (Moveroo)

Focusing on multi-dwelling units

Targeted

Greenstreak

(1)

offering

Operating Objectives

Increasing Competitiveness with Sales and Marketing Initiatives

~63% of lines have voice competition

~75-80% of lines have broadband

competition

Improving Gross Adds with

Additional Distribution

Channels

Fragmented Competitive

Environment

Cable Overlap (% of access lines)

Time Warner

29%

Other

30%

Charter

Comcast

12%

Cox

Mediacom

Insight

(1) Our “Greenstreak” service offering packages Internet service with a metered voice line

Improving Service Levels

Churn Reduction and Retention Strategies

•

Increase bundle penetration

•

Proactively reaching out to

customers to address issues:

-Resolving technical issues

(i.e. service provisioned

but not active)

-Customers with contract or

promotional expirations

nearing

Increasing Retention with Focus on a Reliable

Network and Solid Customer Service

Network

Reliability and

Customer Service

•

Improve the service

provisioning process

•

Focusing on network

reliability across all

products

•

First call resolution

Save Team

Trained to Help

Resolve Issues

Retention and

Customer

Relationships

•

Team dedicated to

saving at risk

customers

•

Target wireless

replacers with

Greenstreak

•

Save team follow-ups

to ensure customer

remains satisfied

Marketing Activities Driving Industry Leading

Operational Results

Video Penetration of Total Access Lines

-5.2%

-5.7%

-6.3%

-6.8%

-7.4%

-8.5%

-9.1%

-10.0%

-11.0%

WIN

IWA

FTR

CBB

CNSL

ALSK

CTL

Source: Public filings and Analyst Reports

Note: Data as of 9/30/09

(1) IWA access line results exclude impact of Sherburne acquisition

11%

10%

WIN

CTL

IWA

CNSL

FTR

39%

36%

34%

32%

30%

29%

28%

27%

24%

CNSL

WIN

IWA

CBB

CTL

FTR

ALSK

Added 26k new Internet customers and

now have 1,050,000 subscribers

–

Residential broadband penetration is

53% of primary residential lines

Video subs grew by 11k or 28% YoY

Delivered the best access line trends

since the company was formed due to

solid execution and “price for life”

promotion

HSI Penetration of Total Access Lines

Year-over-Year Change in Access Lines

(1)

3Q09 Operational Highlights

$360

$400

3Q09

3Q08

$366

$373

3Q09

3Q08

$726

$772

3Q09

3Q08

3Q09 Revenue

Financial Objectives

Delivering Solid Financial Results

(1) Expenses exclude depreciation and amortization.

Notes: Windstream financial information is presented on a pro forma basis which excludes the wireless and supply business

All dollars in millions

3Q09 Expenses

(1)

Despite an incremental $23M

in pension expense and

$7.5M in restructuring, 3Q09

expenses declined $7M

Expense reductions driven by

aggressive expense

management were partially

offset by higher seasonal

expenses

Revenue declined due

primarily to fewer access

lines, usage declines and

lower product sales

Growth in HSI and next

generation data revenues

helped offset a portion of

the revenue declines

Normalized for pension

and restructuring expense,

OIBDA decline was 2.5%

and our OIBDA margin

was ~53.8%

OIBDA of $391M,

excluding Pension and

restructuring

$31M in

pension

and rest.

3Q09 OIBDA

Generating Strong and Sustainable Cash Flows

Free Cash Flow

Note: Windstream financial information is presented on a pro forma basis which excludes the wireless and supply business

Capital Expenditures

Net Cash from Ops

Despite top line pressure,

generated $242M in net

cash from operations –

increase of $19M or 9%

YoY

Capital expenditures

were $67M, or ~9% of

total revenue in 3Q09

Generating strong FCF,

driven by cost structure

improvements, lower

capex and lower taxes

YTD, generated $535M

in FCF, representing a

payout ratio of 61%

$242

$223

3Q09

3Q08

$67

$86

3Q09

3Q08

$175

$137

3Q09

3Q08

Solid Balance Sheet and Liquidity Position

Total cash of $290M at 9/30/09 and ~ $500M in revolver capacity

Net leverage ratio of 3.2x

Solid BB credit rating

Moody’s: Ba2; S&P: BB; Fitch: BB+

Will likely maintain leverage around current levels should additional strategic opportunities arise

Further strengthened our financial position by:

Opportunistically raising $400M during the 3Q09 to fund the D&E and Lexcom transactions

Amending and extending the credit facility, enabling us to extend a substantial portion of our

bank debt maturities by two years

Manageable

Debt

Maturity

Profile

–

with

significant

maturities

until

2013

Key Highlights

Note: Maturity profile excludes $25.3M discount on long-term debt

Debt maturity profile

reflects new issuance

of $400M and the

extension of our senior

bank debt

$433

$11

$1,021

$810

$400

$1,746

$400

$500

$32

$137

$14

$100

$10

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Thereafter

Senior Unsecured Notes

Senior Secured Debt

Windstream Highlights

Well-positioned to succeed going forward

Significant scale and profitability

Favorable rural markets

Sound capital structure

Strategic flexibility

Delivering “best in class”

operational results

Delivering solid financial results

Generating strong sustainable free cash flow

Returning capital to shareholders

Ranked 4th in 2009

BusinessWeek 50 list of

best performing U.S.

companies

Appendix

Reconciliations of Non-GAAP Financial Measures

Supplemental Financial Information

D&E Communications

Lexcom

NuVox

Iowa Telecommunications

Reconciliations of Non-GAAP Financial Measures

Windstream

Corporation

Reconciliations of Non-GAAP Financial Measures

Net Debt to OIBDA (net leverage ratio):

As of

(Dollars in millions)

September 30, 2009

Long-term debt, including current maturities

5,223.1

Cash and cash equivalents

(290.0)

Net debt

(A)

4,933.1

Operating Income:

Twelve

Months Ended

(Dollars in millions)

September 30, 2009

Operating income under GAAP

999.0

Pro forma adjustments:

Operating income adjustment for the disposition of Windstream

Supply LLC

(1.8)

Merger and integration costs

2.4

Depreciation and amortization

523.1

Pro forma OIBDA from current businesses

(B)

1,522.7

Net debt to OIBDA from current businesses

(A)/(B)

3.2

Three

Increase

Months Ended

(Decrease)

(Dollars in millions)

September 30, 2009

September 30, 2008

Amount

Operating income under GAAP

225.4

270.6

Pro forma adjustments:

Operating income adjustment for the disposition of Windstream

Supply LLC

0.1

(1.2)

Merger and integration costs

1.0

Impairment loss on assets held for sale

6.5

Depreciation and amortization

133.8

123.8

Pro forma OIBDA from current businesses

360.3

399.7

Restructuring charges

7.5

1.0

Pension expense

22.8

(0.2)

Pro forma OIBDA from current businesses adjusted

(C)

390.6

400.5

(9.9)

-2.5%

Revenues and sales under GAAP

734.3

794.1

Pro forma adjustments:

Windstream

Supply LLC revenue and sales

(8.2)

(21.8)

Pro forma revenue and sales from current businesses

(D)

726.1

772.3

Pro forma OIBDA margin

(C)/(D)

53.8%

51.9%

Pro forma OIBDA from current businesses

Pro forma OIBDA adjustments:

Pension expense

Pro forma OIBDA from current businesses adjusted

1,522.7

68.1

1,590.8

Dividends announced on August 5, 2009 to shareholders of record as of September 30,

2009, paid October 15, 2009

Weighted average common stock outstanding year to date September 30, 2009 and 2008, respectively

Reconciliations of Non-GAAP Financial

Measures

Free Cash Flow:

Three

Nine

Increase

Months Ended

(Decrease)

(Millions, except per share amounts)

September 30, 2009

September 30, 2008

Amount

Net cash provided from operations

242.2

741.4

729.8

Additions to property, plant and equipment

(67.3)

(206.8)

(219.5)

Free cash flow

174.9

534.6

510.3

24.3

4.8%

433.8

442.3

Free cash flow per share

1.23

1.15

0.08

6.8%

Free Cash Flow Return to Shareholders:

as of November 9, 2009

(Dollars in millions)

Dividends paid on common shares as of September 30, 2009

328.6

108.8

Common stock repurchased as of September 30, 2009

43.5

Common stock repurchased in October 2009

77.8

Free

cash

flow

returned

shareholders

558.7

OIBDA is operating income before depreciation and amortization.

D&E Communications –

Supplemental Financial

Information

D&E COMMUNICATIONS

UNAUDITED PRO FORMA CONSOLIDATED RESULTS (NON-GAAP)

QUARTERLY SUPPLEMENTAL INFORMATION

for the quarterly periods in the years 2009 and 2008

(Dollars in millions, units in thousands and per customer amounts in whole dollars)

Total

3rd Qtr.

2nd Qtr.

1st Qtr.

Total

4th Qtr.

3rd Qtr.

2nd Qtr.

1st Qtr.

Financial Results:

Revenues and sales

Service revenues

106.3

35.2

35.5

35.6

148.0

37.0

36.3

37.2

37.5

Product sales

0.9

0.3

1.4

0.5

0.3

Total revenues and sales

107.2

35.5

35.8

35.9

149.4

37.5

36.6

37.5

37.8

Costs and expenses:

Cost of services

36.4

12.3

12.1

12.0

49.3

12.0

12.5

12.7

12.1

Cost of products sold

0.7

0.3

0.2

1.4

0.4

0.3

Selling, general, administrative and other

23.4

7.4

8.1

7.9

34.3

8.0

8.2

8.6

9.5

Total expenses excluding depreciation and amortization

60.5

20.0

20.4

20.1

85.0

20.4

21.1

21.6

21.9

OIBDA (A)

46.7

15.5

15.4

15.8

64.4

17.1

15.5

15.9

Depreciation and amortization

22.2

7.7

7.4

7.1

29.5

7.0

6.9

7.8

Operating income

24.5

7.8

8.0

8.7

34.9

10.1

8.6

8.1

Operating Income Margin (B)

22.9%

22.0%

22.3%

24.2%

23.4%

26.9%

23.5%

21.6%

21.4%

OIBDA Margin (C)

43.6%

43.7%

43.0%

44.0%

43.1%

45.6%

42.3%

42.4%

42.1%

SUPPLEMENTAL OPERATING INFORMATION:

Access lines

160.9

163.0

164.6

165.5

167.5

168.9

169.6

YOY change in access lines

-3.9%

-3.5%

-2.9%

-3.0%

-2.6%

-1.9%

Net access line losses

(4.6)

(2.1)

(1.6)

(0.9)

(5.1)

(2.0)

(1.4)

(0.7)

(1.0)

Average access lines

163.2

162.0

163.8

165.1

168.1

166.5

168.2

169.3

170.1

Average service revenue per customer per month

$72.37

$72.43

$72.24

$71.88

$73.37

$74.07

$71.94

$73.24

$73.49

High-speed Internet customers

47.4

45.8

46.2

45.2

44.4

42.6

43.0

Net high-speed Internet additions (losses)

2.2

1.6

(0.4)

1.0

3.6

0.8

1.8

(0.4)

1.4

YOY change in high-speed Internet customers

6.8%

7.5%

7.4%

8.7%

9.4%

10.6%

11.4%

Digital satellite television customers

8.9

7.9

8.5

8.4

7.4

8.1

Capital expenditures

$15.3

$4.4

$5.9

$5.0

$24.7

$5.8

$5.3

$6.0

$7.6

RECONCILIATION OF OPERATING INCOME UNDER GAAP TO PRO FORMA OIBDA:

Operating income (loss) from continuing operations under GAAP

18.0

7.6

1.7

8.7

(10.9)

(9.5)

8.6

(18.1)

8.1

Pro forma adjustments:

Merger and integration costs

1.0

0.2

0.8

Goodwill and intangible asset impairment

5.5

45.8

19.6

26.2

Adjusted operating income

24.5

7.8

8.0

8.7

34.9

10.1

8.6

8.1

Depreciation and amortization expense

22.2

7.7

7.4

7.1

29.5

7.0

6.9

7.8

Pro forma OIBDA

46.7

15.5

15.4

15.8

64.4

17.1

15.5

15.9

(A)

OIBDA is operating income before depreciation and amortization.

(B)

Operating income margin is calculated by dividing operating income by total revenue and sales.

(C)

OIBDA margin is calculated by dividing operating income before depreciation and amortization by total revenues and sales.

2009

2008

Lexcom –

Supplemental Financial Information

LEXCOM, INC.

UNAUDITED PRO FORMA CONSOLIDATED RESULTS (NON-GAAP)

QUARTERLY SUPPLEMENTAL INFORMATION

for the quarterly periods in the years 2009 and 2008

(Dollars in millions, units in thousands and per customer amounts in whole dollars)

Total

3rd Qtr.

2nd Qtr.

1st Qtr.

Total

4th Qtr.

3rd Qtr.

2nd Qtr.

1st Qtr.

Financial Results:

Total revenues and sales

32.6

10.5

11.1

11.0

44.5

11.0

11.6

10.8

11.1

Total operating expenses excluding depreciation and amortization

15.3

5.0

5.1

5.2

20.5

5.3

5.2

5.1

4.9

OIBDA (A)

17.3

5.5

6.0

5.8

24.0

5.7

6.4

5.7

6.2

Depreciation and amortization

6.2

2.1

2.0

2.1

8.3

1.8

2.2

2.1

2.2

Operating income

11.1

3.4

4.0

3.7

15.7

3.9

4.2

3.6

4.0

Operating Income Margin (B)

34.0%

32.4%

36.0%

33.6%

35.3%

35.5%

36.2%

33.3%

36.0%

OIBDA Margin (C)

53.1%

52.4%

54.1%

52.7%

53.9%

51.8%

55.2%

52.8%

55.9%

SUPPLEMENTAL OPERATING INFORMATION:

Access lines

34.6

35.1

35.3

35.5

36.1

36.6

37.2

YOY change in access lines

-4.2%

-4.1%

-5.1%

-5.6%

-5.5%

-6.2%

-6.5%

Net access line losses

(0.9)

(0.5)

(0.2)

(2.1)

(0.6)

(0.5)

(0.6)

(0.4)

Average access lines

36.1

34.9

35.2

35.4

36.6

35.8

36.4

36.9

37.4

Average service revenue per customer per month

$100.34

$100.43

$105.11

$103.58

$101.32

$102.42

$106.23

$97.56

$98.93

High-speed Internet customers

9.1

8.8

8.6

8.2

7.9

7.7

7.5

Net high-speed Internet additions

0.9

0.3

0.2

0.4

1.1

0.3

0.2

0.4

Long distance customers

17.3

17.6

17.8

17.9

18.1

18.3

18.5

Capital expenditures

$2.5

$0.9

$0.8

$6.1

$1.6

$1.5

RECONCILIATION OF OPERATING INCOME UNDER GAAP TO PRO FORMA OIBDA:

Operating income (loss) from continuing operations under GAAP

11.1

3.4

4.0

3.7

15.7

3.9

4.2

3.6

4.0

Depreciation and amortization expense

6.2

2.1

2.0

2.1

8.3

1.8

2.2

2.1

2.2

Pro forma OIBDA

17.3

5.5

6.0

5.8

24.0

5.7

6.4

5.7

6.2

(A)

OIBDA is operating income before depreciation and amortization.

(B)

Operating income margin is calculated by dividing operating income by total revenue and sales.

(C)

OIBDA margin is calculated by dividing operating income before depreciation and amortization by total revenues and sales.

2009

2008

NuVox –

Supplemental Financial Information

NUVOX, INC.

UNAUDITED PRO FORMA CONSOLIDATED RESULTS (NON-GAAP)

QUARTERLY SUPPLEMENTAL INFORMATION

for the quarterly periods in the year 2009 and 2008

(Dollars in millions, units in thousands)

Total

3rd Qtr.

2nd Qtr.

1st Qtr.

Total

4th Qtr.

3rd Qtr.

2nd Qtr.

1st Qtr.

Financial Results:

Revenues and sales

Core

346.5

116.0

115.5

115.0

431.1

113.4

107.2

105.7

104.8

Non-core

77.6

24.5

25.5

27.6

119.3

27.3

29.3

31.0

31.7

Total revenues and sales

424.1

140.5

141.0

142.6

550.4

140.7

136.5

136.7

136.5

Costs and expenses:

Cost of services

177.1

59.5

59.4

58.2

227.0

56.8

57.0

56.4

56.8

Selling, general, administrative and other

164.9

53.1

58.1

53.7

206.4

53.6

51.1

51.5

50.2

Total expenses excluding depreciation and amortization

342.0

112.6

117.5

111.9

433.4

110.4

108.1

107.9

107.0

OIBDA (A)

82.1

27.9

23.5

30.7

117.0

30.3

28.4

28.8

29.5

Depreciation and amortization

59.6

19.2

20.1

20.3

77.1

20.5

19.4

18.8

18.4

Operating income

22.5

8.7

3.4

10.4

39.9

9.8

9.0

10.0

11.1

Operating Income Margin (B)

5.3%

6.2%

2.4%

7.3%

7.2%

7.0%

6.6%

7.3%

8.1%

OIBDA Margin (C)

19.4%

19.9%

16.7%

21.5%

21.3%

21.5%

20.8%

21.1%

21.6%

SUPPLEMENTAL OPERATING INFORMATION:

Customers locations (in thousands)

88.3

88.5

89.5

89.0

89.5

90.6

91.0

Capital expenditures and NRCs

(D)

$54.6

$14.6

$12.9

$27.1

$58.5

$16.7

$11.5

$16.7

$13.6

RECONCILIATION OF OPERATING INCOME UNDER GAAP TO PRO FORMA OIBDA:

Operating income from continuing operations under GAAP

20.7

8.4

2.7

9.6

32.0

8.6

7.4

6.1

9.9

Pro forma adjustments:

Non-recurring fees

2.9

Integration costs

1.8

0.3

0.7

0.8

5.0

1.2

1.6

1.0

1.2

Adjusted operating income

22.5

8.7

3.4

10.4

39.9

9.8

9.0

10.0

11.1

Depreciation and amortization expense

59.6

19.2

20.1

20.3

77.1

20.5

19.4

18.8

18.4

Pro forma OIBDA

82.1

27.9

23.5

30.7

117.0

30.3

28.4

28.8

29.5

(A)

OIBDA is operating income before depreciation and amortization.

(B)

Operating income margin is calculated by dividing operating income by total revenue and sales.

(C)

OIBDA margin is calculated by dividing operating income before depreciation and amortization by total revenues and sales.

(D)

Non-recurring charges ("NRC") represent one-time charges incurred to initiate service to a customer location.

2009

2008

Iowa Telecommunications –

Supplemental

Financial Information

IOWA TELECOMMUNICATIONS, INC.

UNAUDITED CONSOLIDATED RESULTS

QUARTERLY SUPPLEMENTAL INFORMATION

for the quarterly periods in the years 2009 and 2008

(Dollars in millions and units in thousands)

Total

3rd Qtr.

2nd Qtr.

1st Qtr.

Total

4th Qtr.

3rd Qtr.

2nd Qtr.

1st Qtr.

(A)

Operating Income Margin (C)

22.4%

21.8%

21.1%

24.3%

28.5%

27.0%

26.7%

28.5%

32.1%

OIBDA Margin (D)

46.1%

45.8%

45.4%

47.1%

50.3%

49.6%

48.5%

50.3%

52.8%

SUPPLEMENTAL OPERATING INFORMATION

Access lines

255.6

235.5

238.5

242.1

245.8

233.3

237.0

High-speed Internet customers

94.5

79.1

78.2

75.7

74.5

67.6

65.8

Long distance customers

160.1

143.2

145.0

146.4

147.6

139.2

141.0

2009

2008

(A)

(B)

OIBDA is operating income before depreciation and amortization.

(C)

Operating income margin is calculated by dividing operating income by total revenue and sales.

(D)

OIBDA margin is calculated by dividing operating income before depreciation and amortization by total revenues and sales.

During the third quarters of 2009 and 2008, Iowa Telecommunications, Inc. completed the acquisitions of Sherburne and Bishop Communications, Inc., respectively.

The impact of these acquisitions is reflected in the financial and operational results noted above in periods subsequent to the completed acquistions.

Financial Results:

Total revenues and sales

188.4

68.3

58.8

61.3

247.0

65.1

62.9

58.2

60.8

Total operating expenses excluding depreciation and amortization

101.5

37.0

32.1

32.4

122.8

32.8

32.4

28.9

28.7

OIBDA (B)

86.9

31.3

26.7

28.9

124.2

32.3

30.5

29.3

32.1

Depreciation and amortization

44.7

16.4

14.3

14.0

53.7

14.7

13.7

12.7

12.6

Operating income

42.2

14.9

12.4

14.9

70.5

17.6

16.8

16.6

19.5

Capital expenditures

$16.2

$5.9

$6.7

$3.6

$28.2

$8.0

$7.2

$7.1

$5.9

RECONCILIATION OF OPERATING INCOME UNDER GAAP TO PRO FORMA OIBDA:

Operating income from continuing operations under GAAP

42.2

14.9

12.4

14.9

70.5

17.6

16.8

16.6

19.5

Depreciation and amortization expense

44.7

16.4

14.3

14.0

53.7

14.7

13.7

12.7

12.6

OIBDA

86.9

31.3

26.7

28.9

124.2

32.3

30.5

29.3

32.1

Operating income from continuing operations under GAAP

Pro forma adjustments:

Merger and integration costs

Depreciation and amortization expense

Pro forma OIBDA from current businesses

Adjustment for Sherburne Tele Systems

Pro forma OIBDA from current businesses adjusted

Total revenues and sales under GAAP

Pro forma adjustments:

Adjustment for Sherburne Tele Systems

Pro forma revenues and sales from current businesses

Twelve

Months Ended

Sept. 30, 2009

253.5

21.9

275.4

Twelve

Months Ended

Sept. 30, 2009

2.0

59.4

121.2

8.3

129.5

59.8