Lumos Networks (LMOS) 8-K Lumos Networks Corp. Reports First Quarter 2015 Results

Company Presentation

May 2015

Exhibit 99.2

1

Special Note Regarding Forward-Looking Statements 

Any statements contained in this presentation that are not statements of historical fact, including statements about our beliefs and

expectations, are forward-looking statements and should be evaluated as such. The words “anticipates,” “believes,” “expects,” “intends,”

“plans,” “estimates,” “targets,” “projects,” “should,” “may,” “will” and similar words and expressions are intended to identify forward-looking

statements. Such forward-looking statements reflect, among other things, our current expectations, plans and strategies, and anticipated

financial results, all of which are subject to known and unknown risks, uncertainties and factors that may cause our actual results to differ

materially from those expressed or implied by these forward-looking statements. Many of these risks are beyond our ability to control or

predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements.

Furthermore, forward-looking statements speak only as of the date they are made. We do not undertake any obligation to update or review

any forward-looking information, whether as a result of new information, future events or otherwise. Important factors with respect to any

such forward-looking statements, including certain risks and uncertainties that could cause actual results to differ from those contained in

the forward-looking statements, include, but are not limited to: rapid development and intense competition in the telecommunications and

high speed data transport industry; our ability to offset expected revenue declines in legacy voice and access products related to the recent

regulatory actions, wireless substitution, technology changes and other factors; our ability to effectively allocate capital and implement our

“edge-out” expansion plans in a timely manner; our ability to complete customer installations in a timely manner; adverse economic

conditions; operating and financial restrictions imposed by our senior credit facility; our cash and capital requirements; declining prices for

our services; our ability to maintain and enhance our network; the potential to experience a high rate of customer turnover; federal and state

regulatory fees, requirements and developments; our reliance on certain suppliers and vendors; and other unforeseen difficulties that may

occur. These risks and uncertainties are not intended to represent a complete list of all risks and uncertainties inherent in our business, and

should be read in conjunction with the more detailed cautionary statements and risk factors included in our SEC filings, including our Annual

Report filed on Form 10-K.

Use of Non-GAAP Financial Measures

Included in this presentation are certain non-GAAP financial measures that are not determined in accordance with US generally accepted

accounting principles.  These financial performance measures are not indicative of cash provided or used by operating activities and exclude

the effects of certain operating, capital and financing costs and may differ from comparable information provided by other companies, and

they should not be considered in isolation, as an alternative to, or more meaningful than measures of financial performance determined in

accordance with US generally accepted accounting principles.  These financial performance measures are commonly used in the industry and

are presented because Lumos Networks Corp. believes they provide relevant and useful information to investors.  The Company utilizes

these financial performance measures to assess its ability to meet future capital expenditure and working capital requirements, to incur

indebtedness if necessary, and to fund continued growth.  Lumos Networks Corp. also uses these financial performance measures to

evaluate the performance of its business, for budget planning purposes and as factors in its employee compensation programs.

Advanced Fiber Network Driving Value for Our Customers

2

Lumos at a Glance

Attractive Fundamentals

2016 Data Revenue target of ~$116m, up 9% yoy

Total data contract value: ~$350mm with avg.

length: ~ 52 months.  Target of $500mm by YE15

Targeted 15-20%+ ROI on fiber deals

4G LTE wireless deployments (FTTC)

On-net focus: 60% Data EBITDA margin target

Unique fiber assets in footprint

Enterprise growth of 6% expected in 2015

Favorable interest rate and tax environment

1

Current

¹

Market

Opportunity

²

FTTC Unique Sites

907

~7,400

On-Net Buildings

1,530

104,000

Total Connected

Data Centers

31

100+

7,955 Fiber Route Miles; 363,189 Total Fiber Miles

45+ Average Strand Count

3

Revenue Opportunities

Market Expansion Route

Fiber Network

Edge Out Markets

Internet Exchange Points

Data Centers

“Lit”

Markets

Norfolk

Washington DC

Chicago, IL

Columbus

Ashland

Bristol

Atlanta

Greensboro

Clarksburg

Lewisburg

Richmond

Charlottesville

Harrisonburg

Winchester

Ashburn

Hagerstown

Harrisburg

Altoona

Erie

Morgantown

Blacksburg

Pittsburgh

Cumberland

Culpeper

Waynesboro

Lynchburg

Danville

Bluefield

Huntington

Charleston

Covington

Parkersburg

Norfolk

As of 3/31/2015 

Based on Lumos Networks’ internal research and analysis of data from research, surveys and studies conducted by third parties, such as Tower Source (for FTTC sites), Equifax Telecom

and Stratsoft (for On-Net buildings) and public records databases (for data centers).   Market Opportunity denotes wireless cell sites within 3 miles and buildings within ½ mile of the

Lumos Networks fiber footprint and includes recently announced planned market expansion in Richmond and Norfolk

2

Exponential Growth in Bandwidth Demand

Bandwidth Demand Drivers

U.S. Mobile IP Traffic

Source: Cisco Visual Networking Index 2015

U.S. Business IP Traffic

4

Proliferation of network-connected devices and

locations

2014 to 2019 tablets, smartphones, and

M2M traffic growth rates of 83%, 60%, and

103%, respectively

Rapid growth in rich media applications

Of the 24.3 exabytes per month crossing

the mobile network by 2019, 17.4 exabytes

will be due to video

Spectrum constraints require increased efficiency

to manage mobile data traffic

Adoption of network-centric computing services,

e.g. Cloud

Increased outsourcing of IT infrastructure

0.0 EB

0.5 EB

1.0 EB

1.5 EB

2.0 EB

2014

2015

2016

2017

2018

Web & Data

Video

0.0 EB

1.0 EB

2.0 EB

3.0 EB

4.0 EB

5.0 EB

2014

2015

2016

2017

2018

Web & Data

Video

Data Products

1

Goals highlighted herein are long-term in nature and are subject to various risks and uncertainties, one or more of which could cause goals to be unattainable. You should not regard the inclusion

of a goal in this presentation as a representation by any personthat the results will be achieved

5

Enterprise Data

(~40% of 1Q15 Data

Revenue)

Revenue grew 4% yoy and maintain target of 6% in 2015

Targeting renewal of $17.5 million of worth of Enterprise

contracts in 1H15, up almost 55% vs 1H14

Carrier End User:  Sales grew 100%+ in ‘14 and ~70% growth tgt

in 2015.   Long-term target of ~50% of total Enterprise sales

Transport

(~37% of 1Q15 Data

Revenue)

IP-based Ethernet Transport and wavelength potential

Solid pipeline of long-term (3-7 year) Wavelength/TDM deals

Significant reduction in DS1/DS3 exposure in last 2 years

FTTC

(~23% of 1Q15 Data

Revenue)

FTTC backhaul supports 4G LTE growth

Long-term target of ~$85 million in FTTC revenue

Signed contracts for 54%+ of total connections in long-term plan

Targeted FTTC incremental gross margin of 85%+

1

1

1

6

Planned 665 Mile Fiber Network Expansion in Richmond and Norfolk

Underpinned by 257 unique FTTC site contract (269 total FTTC connections) with major wireless carrier

Vast majority of network expected to be completed by YE15 vs original target of 3Q16

Signed First Enterprise Customer in Norfolk in April 2015 ($4,000 monthly recurring revenue)

Significant expansion of Richmond, VA network with the addition of Norfolk, Petersburg and Hampton Roads markets

Increases total Enterprise addressable market by ~$135 million, up ~60% vs. existing markets

Increases tower addressable market to 7,400 within 3 miles of footprint

Dark Fiber Product Officially Launched May 2015

Targeting a Growing Number of RFPs in our Footprint:

Macro Fiber to the Cell Backhaul

Small Cell Fronthaul

Large Enterprises: Healthcare, Education/Gov’t, Financial

Data Centers

Relatively limited Dark Fiber deployments in our footprint (by any fiber

provider), but activity should increase in 2015 and beyond

Lumos Dark Fiber Product has standardized Monthly Recurring Charge

(MRC) and Non-Recurring Charge (NRC) pricing

Lumos provides Dark Fiber cable and customer supplies equipment and

resources to manage the services

Lumos has $1m+ in annual Dark Fiber revenue, mostly derived from

Alleghany Energy assets purchased in 2009

7

FTTC Opportunities Accelerate

Dramatic Growth in Mobile Data Traffic Driving Increased Backhaul Bandwidth Requirements

Compelling  Tower-Like Economics

Scalable bandwidth capability drives margin expansion

Increased

tenants

per

unique

site

combined

with

higher

bandwidth

per

site

magnifies

leverage

Long-term contracts (ranging from 5 to 12 years)

Attractive return on investments

Devices

Use Case

Backhaul Technology

Voice / Text / Email /

Rich Media / Streaming Video

Moving to Carrier Ethernet

2015+

Voice / Text / Email

T1 / SONET

2004 -

2007

Voice / Text

T1

1999 -

2003

8

9

Project Ark Underway: Premier FTTC Network in Footprint

New MEF-certified Carrier Ethernet MPLS/IP fiber network

Fully Redundant/Fast Re-route

A key selling point for a series of contract wins (total of 500+

FTTC sites) with a major US wireless carrier

Core network completed in Sept ’14 using Cisco routers

FTTC traffic already routed onto Ark

Expect 100% of FTTC traffic routed onto Ark by end of 3Q16

Cisco provides new testing tools, thousands of hours of

training, and 2 R&D centers

Ark planned to provide total bandwidth throughput up to ~1

Terabit (equivalent to 2,500 circuits at 400 Mbps each)

Allows for cost effective scalability for upgraded FTTC

connection target of 3,100

10

Long-Term Fiber to the Cell Targets

FTTC Targets (as updated in Nov 2014)

Key Drivers of FTTC Upgrade

Expansion of 4G/LTE coverage and capacity in

Lumos’

footprint by multiple wireless carriers

Continued migration of copper, microwave and

SONET FTTC sites to Carrier Ethernet

Planned 665 route-mile market expansion,

underpinned by 257 FTTC unique tower contract

Pro forma tower addressable market increase to

7,400 (within 3 miles) from 5,400

Added 541 fiber route miles since YE13, including

key routes from Richmond-Charlottesville and

Richmond-Ashburn, VA

Increased RFP activity for small cell and dark fiber

FTTC contracts in our footprint

Expectation for increased tenants per site and

higher bandwidth per site over time

Revised

Prior

Annual

Revenue

¹

~$85 million

~$70 million

Gross

Margin

¹

~$72 million

~$60 million

Total

Unique

Towers

¹

1,875

1,500

Total

FTTC

Connections

²

3,100

2,250

Tenants

(Connections/Tower)

²

1.65

1.50

Monthly Revenue/Connection

²

~$2,300

~$2,600

Addressable

Market

²

7,400

5,400

Goals highlighted herein are long-term in nature and are subject to various risks and uncertainties, one or more of which could cause goals to be unattainable.

You should not regard the inclusion of a goal in this presentation as a representation by any person that the results will be achieved 

Represents management’s long-term estimates prepared using data from industry publications and its market knowledge and experience.  Management’s

estimates have not been verified by any independent source and are subject to various risks and uncertainties, which could cause actual results to materially

deviate from estimates. You should not regard the inclusion of an estimate in this presentation as a representation by any person of future results

1

2

1Q15

Long-Term

Estimate

¹

FTTC Unique Towers

907

1,875

Tenants/Unique Tower

~1.3-1.4

1.65x

Monthly Revenue/Connection

~$1,750

~$2,300

Monthly Revenue/Unique  Tower

~$2,300

~7,400 towers within 3 miles of

Lumos Network fiber footprint

Early stages of 4G LTE rollout

Conversion from T-1,

microwave and SONET to

Carrier Ethernet

Significant new LTE site

builds/network densification

Continued FTTC share gains

expected

Carrier Ethernet more scalable

than SONET of other providers

FTTC operating leverage drives

margin expansion opportunity

Strong FTTC Growth Opportunity in Our Footprint

+250

+228

+274

Anticipated FTTC Trends

1,875

2

~$3,800

FTTC Opportunity

155

405

633

907

1Q12

1Q13

1Q14

1Q15

Long

Term Goal

11

-

1

2

  Represents management’s long-term estimates prepared using data from industry publications and its market knowledge and experience. Management’s estimates

have not been verified by any independent source and are subject to various risks and uncertainties, which could cause actual results to materially deviate from

estimates. You should not regard the inclusion of an estimate in this presentation as a representation by any person of future results

  Goals highlighted herein are long-term in nature and are subject to various risks and uncertainties, one or more of which could cause goals to be unattainable. You

should not regard the inclusion of a goal in this presentation as a representation by any person that the results will be achieved

FTTC as a percentage of total Lumos fiber Data revenue

2012: ~8%

2013: ~14%

2014: ~19% 

2015:

~25%

Annual FTTC Revenue

12

1

Goals highlighted herein are long-term in nature and are subject to various risks and uncertainties, one or more of which could cause goals to be unattainable. You should not regard the

inclusion of a goal in this presentation as a representation by any person that the results will be achieved

FTTC Revenue Growth

($ in Millions)

Long-term goal of

$85 million

1

$6.8

$14.3

$19.9

$29.0

2012

2013

2014

2015E

Monthly Recurring FTTC Revenue

13

Continued Shift in FTTC Revenue Towards 100% Ethernet

($ in Thousands)

TDM billing is 2.5% of total

FTTC in billing and in

backlog (signed deals)

$231

$125

$124

$105

$75

$1,296

$1,534

$1,638

$1,868

$2,033

$415

$716

$984

$922

$792

$1,942

$2,375

$2,745

$2,895

$2,900

$0

$1,000

$2,000

$3,000

$4,000

Jan-14

Sept-14

Oct-14

Dec-14

Mar-15

TDM Billings

Ethernet Billings

Total Backlog

Key Enterprise Accounts

14

100% fiber fed portfolio of lit buildings (ALL success-based)

Added 53 buildings in 1Q15, well above avg of ~12 buildings/month since 1Q12

Increases on-net revenue and opens up opportunity for additional FTTC builds

Connected to 31 total data centers

1Q15 On-Net Building Growth Accelerated

On-Net Buildings

15

1,066

1,235

1,387

1,530

1Q12

1Q13

1Q14

1Q15

Enterprise Renewal Program Results Accelerating

New Contract Amounts (MRC)

Total Contract Renewed

16

($ in Thousands)

Renewal program locks-in revenue on increasingly longer term deals,  reducing churn

Target 1H15 total contract value renewed of $17.5 million up over 50% from 1H14

18% of Enterprise revenue renewed for an average of 38 months in

2014

Expecting total MRC of $725,000 to be renewed in 2015

($ in Thousands)

$619

$725

2014A

2015E

$11,500

$17,500

1H 2014

1H 2015E

Existing Richmond and Western PA Edge-Out Strategy

17

Richmond, VA

Western PA

110-mile 100G enabled fiber network, which will

expand significantly post completion of

announced market expansion

Anchor Enterprise and Carrier customers signed

Significant data center opportunities, recently

connected Peak 10 and QTS

~$4.8 million in annualized Enterprise and

Transport sales bookings

Pivot point for critical long-haul routes between

Ashburn, VA and Charlottesville, VA

Pittsburgh NOC /sales office opened in 2014

Washington PA PoP opened, with Tier 1 data

center services and adding customer redundancy

Expansion

of

fiber

assets

in

Western

PA

–

leverage

existing fiber by adding on / off ramps

Offer diverse routes in and out of Pittsburgh, PA

Completed key routes from Pittsburgh, PA to

Harrisburg, PA and Ashburn, VA

Requires increased Metro investment to extract full

market potential

Announced 665-mile market build will expand Richmond footprint and add Norfolk

as the 24

Lumos market and a key edge-out market

Contiguous market expansion to pursue new FTTC, Data Center, Transport and Enterprise targets

Leveraging existing customer base and assets with experienced in-market teams

th

Leverage Lumos Networks’

7,955 mile fiber footprint to target incremental Enterprise

customers with thousands of sales people from leading national service providers

Over 60+ MSAs signed or pending with major U.S. operators, MSOs and fiber companies

operating in our footprint

Pro forma “near-net”

list buildings within ½

mile of our footprint of 104,000 (67,000 pre-

expansion), including planned 665 fiber route-mile build in the Norfolk, Richmond,

Petersburg and Hampton Roads, VA metro markets

18

Carrier End User: Growth Momentum Continues

Strong Growth in 2014 and a Solid Pipeline in Place for 2015

2013: $77,000

2014: $294,000

2015 (target): ~$500,000

Carrier End User Sales Grew Over 100% in 2014

New Distribution Channel for Enterprise Data

19

31 total data center connections as of 1Q15

Includes: commercial, private and Lumos operated data centers

Key data center relationships:  Peak 10, Iron Mountain, QTS, DC Corp, Alpha Technologies

Increasingly, Enterprise traffic moving to data centers with customers requesting secure, fiber

bandwidth access to those locations

~100+ data center market opportunity within existing footprint

Lumos is under-penetrated in data center connections relative to fiber peers.  Data center

connections represent significant fiber bandwidth revenue upside

Data Center Fiber Connection Strategy

31 Total Data Center Connections

Key Virginia 100G Long-Haul Fiber Routes

20

Charlottesville, VA to Richmond, VA

Richmond, VA to Ashburn, VA

Completed in June 2014

53 Mile 100G DWDM all-IP Long-Haul Fiber

Route

Reduces Significant Type 2 Leased Access

Costs

Expanded Fiber Breadth to Reach

Incremental Data Centers, Enterprises and

FTTC Opportunities

Lit for Commercial use in January 2015

Creates Fully-Redundant all-IP 100G Route

Between all 3 Virginia Cities

Straight-Shot Fiber Access into Ashburn, the

“Data Center Capital of the World”

Critical Element in Creating the Densest

Fiber Network in the Mid-Atlantic

Richmond, VA to Norfolk, VA

150 Mile Fiber Route-Mile Build Planned

with Announced Market Expansion

Selected Financial Highlights

Data Revenue

Data as a % of Total Revenue

Data

Gross

Margin

1

Overall

Adjusted

EBITDA

Margin

2

($ in Millions)

21

$26.1

$26.7

$26.5

$27.3

$27.8

1Q14

2Q14

3Q14

4Q14

1Q15

52.2%

53.2%

52.4%

53.9%

55.0%

1Q14

2Q14

3Q14

4Q14

1Q15

84.0%

85.3%

85.1%

85.5%

86.9%

1Q14

2Q14

3Q14

4Q14

1Q15

45.3%

44.9%

43.2%

44.6%

45.5%

2Q14

3Q14

4Q14

1Q15

2015 Target

Defined as operating revenues less network access costs divided by operating revenues for Data segment

Defined as Adjusted EBITDA divided by operating revenues on a consolidated basis, excluding the impact of one time cutrailment gain on benefit plans in Q314 and Q414

1

2

Liquidity and Debt Maturities

Debt refinancing completed in April 2013; closed

new Term Loan C in January 2015 for $28 million

Liquidity to support growth capital requirements

~$42 million in cash

$50 million undrawn revolver capacity

As of March 2015, the $0.14 quarterly dividend

suspended in favor of FTTC and network

expansion opportunities with an annual impact of

$12-$13 million

Debt Maturity Profile

Capitalization

($ in Millions)

Note: Excludes capital leases

22

($ in Millions)

As of

3/31/2015

Cash and Marketable Securities

$42.1

Revolving Credit Facility ($50MM)

$0.0

Term Loan A

96.3

Term Loan B

270.2

Term Loan C

28.0

Capital Leases

5.0

Total Debt

$399.4

$6

$8

$13

$81

$287

2015

2016

2017

2018

2019

1Q15 Snapshot

1Q15 Balance Sheet & Valuation

1Q15 Metrics

Data revenue up 6%+ yoy and comprises

55% of total revenue

FTTC and Enterprise revenue grew 35%

and 4% yoy, respectively

Completed installation of 49

FTTC sites

and 83 total FTTC Connections

Maintained 75% ratio for success-

based/growth capital projects

Connected 53

on-net buildings

Added 133

miles of fiber route miles

Key 1Q15 Accomplishments

1

Based on closing share price of $15.46 as of 4/28/2015 and 22,747,205 shares outstanding as of 3/31/2015

23

($ in Millions)

Cash and Marketable Securities

$42.1

Total Long-Term Debt

$399.4

Net Long-Term Debt

$357.3

Market Capitalization¹

$351.7

Enterprise Value

$709.0

($ in Millions)

3Q14

4Q14

1Q15

Revenue

$50.5

$50.7

$50.5

Adjusted EBITDA

$32.9

$22.4

$22.5

% Margin

65.1%

44.3%

44.6%

Capital Expenditures

$26.9

$19.9

$29.2

% of Revenue

53.2%

39.4%

57.9%

Historical Financial Metrics by Segment

24

($ in Thousands)

FYE 2012

FYE 2013

FYE 2014

FYE 2015

% of 1Q15

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

Total

Revenue

Data

$21,322

$21,883

$22,664

$24,424

$25,369

$25,706

$26,094

$26,943

$26,137

$26,707

$26,488

$27,310

$27,767

55.0%

Residential and Small Business

24,004

23,379

23,173

21,905

21,057

20,453

20,055

19,094

18,647

18,290

17,668

17,423

17,265

34.2%

RLEC Access

6,086

5,541

6,140

6,350

6,108

6,152

5,478

4,966

5,306

5,168

6,360

5,952

5,463

10.8%

Total Revenue

$51,412

$50,803

$51,977

$52,679

$52,534

$52,311

$51,627

$51,003

$50,090

$50,165

$50,516

$50,685

$50,495

100.0%

% Sequential Growth

(1.2%)

2.3%

1.4%

(0.3%)

(0.4%)

(1.3%)

(1.2%)

(1.8%)

0.1%

0.7%

1.0%

(0.4%)

% YoY Growth by Segment

Data

19.0%

17.5%

15.1%

10.3%

3.0%

3.9%

1.5%

1.4%

6.2%

Residential and Small Business

(12.3%)

(12.5%)

(13.5%)

(12.8%)

(11.4%)

(10.6%)

(11.9%)

(8.8%)

(7.4%)

RLEC Access

0.4%

11.0%

(10.8%)

(21.8%)

(13.1%)

(16.0%)

16.1%

19.9%

3.0%

Gross Profit

Data

$17,724

$18,080

$18,818

$20,488

$21,338

$21,827

$22,206

$22,940

$21,963

$22,788

$22,551

$23,350

$24,122

59.1%

Residential and Small Business

15,838

15,005

15,490

14,466

13,934

13,831

13,601

12,677

12,107

12,019

11,355

11,670

11,198

27.5%

RLEC Access

6,086

5,541

6,140

6,350

6,108

6,152

5,478

4,966

5,306

5,168

6,360

5,952

5,463

13.4%

Total Gross Profit

$39,648

$38,626

$40,448

$41,304

$41,380

$41,810

$41,285

$40,583

$39,376

$39,975

$40,266

$40,972

$40,783

100.0%

Adjusted EBITDA

Data

$11,171

$11,350

$11,620

$12,822

$13,124

$13,355

$13,012

$14,011

$12,717

$13,395

$12,984

$12,629

$12,367

54.9%

Residential and Small Business

6,735

5,944

6,208

5,639

6,697

6,356

5,691

5,917

5,544

5,230

4,503

4,623

5,627

25.0%

RLEC Access

4,385

3,812

4,453

4,750

4,874

4,840

4,343

4,104

4,306

4,098

5,214

4,621

4,517

20.1%

Adjusted EBITDA, Before Curtailment Gain

$22,291

$21,106

$22,281

$23,211

$24,695

$24,551

$23,046

$24,032

$22,567

$22,723

$22,701

$21,873

$22,511

100.0%

Curtailment Gain

0

0

0

0

0

0

0

0

0

0

10,207

567

0

Total Adjusted EBITDA

$22,291

$21,106

$22,281

$23,211

$24,695

$24,551

$23,046

$24,032

$22,567

$22,723

$32,908

$22,440

$22,511

% Sequential Growth, Normalized

(5.3%)

5.6%

4.2%

6.4%

(0.6%)

(6.1%)

4.3%

(6.1%)

0.7%

(0.1%)

(3.6%)

2.9%

% Margin, Normalized

43.4%

41.5%

42.9%

44.1%

47.0%

46.9%

44.6%

47.1%

45.1%

45.3%

44.9%

43.2%

44.6%

1

1

2

3

1

Defined as operating revenues less network access costs

2

Defined as net income attributable to Lumos Networks before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, net income or

loss attributable to noncontrolling interests, other income or expenses, equity-based compensation charges, acquisition-related charges, amortization of actuarial losses on

retirement plans, employee separation charges, restructuring-related charges, gain or loss on settlements and gain or loss on interest rate swap derivatives. See note from the

Company on “Use of Non-GAAP Measures” on Slide 1

3

The Company recorded a $10.8 million curtailment gain in the second half of 2014 related to the elimination of certain medical benefits under the postretirement plan, which

was not allocated to the operating segments

Financial Guidance

1

Guidance as of date of 1Q15 earnings release dated May 5, 2015

2

Normalized Adjusted EBITDA excludes the impact of a $10.8 million curtailment gain for the elimination of other postretirement plan medical benefits recognized in the

second half of 2014

2014

1Q15

FY 2015

($ in Millions)

Actual

Actual

Guidance¹

Revenue

Data

$106.6

$27.8

~$116

% of Total

52.9%

55.0%

~57%

Residential & Small Business

$72.0

$17.3

~63

% of Total

35.8%

34.2%

~36%

Access

$22.8

$5.5

~$23

% of Total

11.3%

10.8%

~11%

Total

$201.5

$50.5

~$202

Adjusted

EBITDA,

Normalized

²

$89.9

$22.5

~$92

% Margin

44.6%

44.6%

~46%

Total Capex

$84.1

$29.2

~$112

% Success-Based/Growth Capex

75%

85%

75%

25

Reconciliation of Net Income Attributable to Lumos Networks

Corp. to Operating Income

26

($ in Millions)

3/31/2013

6/30/2013

9/30/2013

12/31/2013

3/31/2014

6/30/2014

9/30/2014

12/31/2014

3/31/2015

Net Income Attributable to Lumos

Networks Corp.

$6.4

$4.8

$2.5

$4.1

$4.1

$3.8

$10.2

$3.4

$2.7

Net Income Attributable to

Noncontrolling Interests

0.1

0.0

0.0

-

0.0

0.0

0.0

0.1

0.0

Net Income

6.5

4.8

2.6

4.1

4.1

3.9

10.2

3.5

2.8

Interest Expense

3.1

3.4

3.8

3.8

4.0

3.8

4.0

3.8

3.5

Loss (Gain) on Interest Rate Derivatives

(0.2)

(0.3)

0.6

0.0

(0.1)

0.0

(0.3)

(0.1)

(0.1)

Income Tax Expense

4.3

3.2

1.5

3.0

3.0

2.7

6.7

2.0

2.0

Other (Income) Expense, net

(0.0)

0.9

(0.1)

0.8

(0.2)

(0.2)

(0.2)

(0.1)

0.2

Operating Income

$13.7

$12.1

$8.3

$11.7

$10.8

$10.2

$20.4

$9.1

$8.4

($ in Millions)

FY2010

FY2011

FY2012

FY2013

FY2014

Net Income (Loss) Attributable to Lumos

Networks Corp.

$20.8

($43.9)

$16.3

$17.8

$21.5

Net Income Attributable to

Noncontrolling Interests

0.1

0.1

0.1

0.1

0.1

Net Income (Loss)

20.9

(43.9)

16.4

17.9

21.6

Interest Expense

5.8

12.0

11.9

14.2

15.6

Loss (Gain) on Interest Rate Derivatives

-

-

1.9

0.1

(0.5)

Income Tax Expense (Benefit)

14.5

(4.4)

11.0

12.0

14.4

Other (Income) Expense, net

(0.0)

(0.1)

(0.1)

1.6

(0.7)

Operating Income (Loss)

$41.1

($36.4)

$41.2

$45.8

$50.5

Adjusted EBITDA Reconciliation

27

1

Guidance as of date of 1Q15 earnings release dated May 5, 2015

($ in Millions)

Year Ended

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

¹

Operating Income (Loss)

$41.1

($36.4)

$41.2

$45.8

$50.5

~$32

Depreciation and Amortization

31.4

43.2

39.0

42.4

45.3

~53

Equity Based Compensation

1.5

2.4

3.9

6.8

4.3

~6

Asset Impairment Charge

-

86.3

-

-

-

-

Amortization of Actuarial Losses

-

-

1.8

1.2

0.2

~1

Business Separation Charges

-

1.4

-

-

-

-

Acquisition Related Charges

3.0

0.1

-

-

-

-

Employee Separation Charges

-

-

2.3

-

0.2

-

Restructuring Charges

-

-

3.0

0.1

-

-

Gain on Settlements, net

-

-

(2.3)

-

-

-

Adjusted EBITDA

$77.1

$96.9

$88.9

$96.3

$100.6

~$92

($ in Millions)

3/31/2013

6/30/2013

9/30/2013

12/31/2013

3/31/2014

6/30/2014

9/30/2014

12/31/2014

3/31/2015

Operating Income

$13.7

$12.1

$8.3

$11.7

$10.8

$10.2

$20.4

$9.1

$8.4

Depreciation and Amortization

9.6

10.8

11.2

10.8

10.7

11.2

11.3

12.1

11.9

Equity Based Compensation

1.0

1.3

3.2

1.2

0.8

1.2

1.1

1.2

1.2

Amortization of Actuarial Losses

0.3

0.3

0.3

0.3

0.1

0.1

0.1

0.1

0.3

Employee Separation Charges

-

-

-

-

0.2

0.0

-

-

-

Restructuring Charges

0.0

-

0.0

-

-

-

-

-

0.6

Adjusted EBITDA

$24.7

$24.6

$23.0

$24.0

$22.6

$22.7

$32.9

$22.4

$22.5