CT Communications 8-K CT Communications Announces Second Quarter 2007 Results

Exhibit 99.1

CT COMMUNICATIONS PRESS RELEASE

For Immediate Release
August 2, 2007
Concord, NC
Contact:
Jim Hausman
704.722.2410
Ron Marino
704.722.2212

CT Communications Announces Second Quarter 2007 Results

Second Quarter 2007 Highlights

• CT Communications, Inc. announces plan to merge with Windstream Corporation and schedules a special meeting on August 23, 2007 for its shareholders to vote on the proposal to approve the merger agreement

• Operating revenue increased 5% to $46.3 million vs. year ago quarter

• 25% increase in broadband customers from second quarter last year

Second Quarter 2007 Results

CT Communications, Inc. (NASDAQ: CTCI) announces operating revenue of $46.3 million for the second quarter of 2007, an increase of 5.2% compared to the second quarter of 2006. The increase in operating revenue was driven by a $0.7 million increase in customer recurring revenue due to strong customer growth in several of the Company’s businesses. Broadband customers increased 25%, Wireless subscribers increased 5% and Greenfield access lines increased 6% compared to the end of the second quarter of 2006. In addition, universal service revenue increased $1.2 million compared to the second quarter last year due to a true-up of the 2006 cost study and higher 2007 recoveries based on current cost study projections.

Operating income was $4.7 million in the second quarter of 2007 compared to $4.8 million in the second quarter of 2006. Operating expense in the second quarter of 2007 increased $2.4 million, or 6.0%, to $41.6 million compared to the same period last year. The increase in operating expense was primarily attributable to $1.7 million in expenses related to the proposed Windstream merger and a loss of $0.3 million related to the replacement of certain wireless cell site equipment. Included in the second quarter

2007 merger expenses was $0.8 million in stock compensation expense related to market value adjustments for stock units held in the Company’s deferred compensation plan.

Other income was $1.5 million for the second quarter of 2007 compared to $1.4 million for the same period in 2006. The second quarters of 2007 and 2006 include an approximate $1.0 million and $0.8 million gain on the sale of an investment security, respectively. Net income for the second quarter of 2007 and 2006 was $4.0 million and $3.9 million, respectively. Diluted earnings per share were $0.20 in the second quarter of 2007 and 2006. Expenses related to the proposed Windstream merger transaction were $0.05 per diluted share in the second quarter of 2007.

Consolidated operating revenue for the six months ended June 30, 2007 increased to $91.7 million compared to $87.1 million for the prior year. The increase in revenue was largely attributable to a $2.0 million increase in customer recurring revenue, a $1.5 million increase in universal service revenue and a $0.6 million increase in other revenue. The increase in customer recurring revenue was driven by customer growth in the Company’s broadband and Wireless operations, as well as an increase in the average revenue per Wireless subscriber. Operating expense for the six months ended June 30, 2007 increased $3.6 million, or 4.7%, to $80.9 million compared to the six months ended June 30, 2006. The increase in operating expense was attributable to $1.8 million in Windstream merger related expenses, a $1.1 million increase in cost of service, a $0.4 million increase in benefits expense and a $0.3 million increase in selling expense. Operating income for the six months ended June 30, 2007 increased 9.7% to $10.9 million compared to $9.9 million in the same period last year.

Other income in the six months ended June 30, 2006 included the Company’s income from the operations of Palmetto MobileNet (“PMN”) and an $89.2 million gain from the sale of PMN’s interests in ten wireless partnerships. Excluding the effect of these items, other income increased approximately $1.3 million from the same period last year mainly due to an increase in investment income and a decrease in interest expense. Net income for the six months ended June 30, 2007 was $8.6 million, or $0.42 per diluted share, compared to $61.3 million, or $3.17 per diluted share. The six months ended June 30, 2007 and 2006 includes merger transaction related expenses of $1.8 million or approximately $0.06 per diluted share and $54.2 million, or $2.80 per diluted share, related to the PMN sale, respectively.

Results by Business Unit

Effective for the quarter ending March 31, 2007 the following presentation was modified to reflect the Company’s change in its business unit reporting. The Company made these changes to report operating

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results based on the complete product and service relationship with customers in each business unit. As a result, the former Internet and Data Services business unit results have been included in the ILEC, CLEC and Greenfield business unit results for all periods presented.

• ILEC — (“Concord Telephone”)

Concord Telephone’s operating revenue increased $1.1 million to $27.2 million in the second quarter of 2007 compared to the same quarter in 2006. The increase in operating revenue was mainly due to a $1.2 million increase in universal service revenue, which was partially offset by a $0.2 million decrease in access and interconnection revenue and a $0.1 million decrease in customer recurring revenue. Broadband revenue increased $0.4 million driven by a 24% increase in customers, but was offset by a decrease in wireline customer revenue associated with a decline in access lines. Operating expense increased $1.1 million to $21.6 million primarily due to transaction related costs in the second quarter of 2007 compared to the same quarter in 2006. Operating income was flat at $5.6 million in the second quarter of 2007 compared to the same period last year. Operating margin for the second quarter of 2007 was 20.5% compared to 21.4% for the second quarter of 2006.

ILEC average monthly customer churn during the second quarter of 2007 was 1.6%, which was up from the 1.1% rate in the same quarter last year. Broadband accounts increased to 24,775, an increase of 24% from the second quarter of 2006. Concord Telephone ended the second quarter of 2007 with 102,641 access lines in service.

• Wireless

Wireless operating revenue increased 9.2% to $10.6 million in the second quarter of 2007 compared to the same period in 2006. Customer recurring revenue increased $0.7 million driven by a 5% growth in subscribers and an increase in average revenue per subscriber. Operating expense increased $0.4 million, or 4.6%, from the same period last year. The increase in operating expense was driven primarily by the increase in wireless subscribers. Included in the second quarter of 2007 operating expense was a $0.5 million credit from Cingular associated with the annual true-up of switching expenses, which was partially offset by a $0.3 million loss related to the replacement of certain wireless cell site equipment. Operating income in the second quarter of 2007 was $1.3 million compared to $0.8 million in the same period last year. Wireless ended the second quarter of 2007 with 50,297 subscribers, an increase of 5% compared to the end of the second quarter of 2006.

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• CLEC

CLEC operating revenue in the second quarter of 2007 was $5.4 million, which was relatively flat compared to the same quarter last year. Operating expense increased 1.2% to $5.8 million in the second quarter of 2007 compared to the same period last year. The increase in operating expense was due to an increase in cost of service primarily attributable to an increase in the number of CLEC access lines. Operating loss for the second quarter of 2007 was flat at $0.4 million compared to the second quarter of 2006. CLEC ended the second quarter of 2007 with 36,811 access lines, an increase of 7% compared to 34,372 access lines at the end of the second quarter last year. In addition, CLEC ended the second quarter with 817 broadband customers, an increase of 20% from the 679 at the end of the second quarter of 2006.

• Greenfield

Greenfield’s operating revenue increased 10.2% to $3.2 million in the second quarter of 2007 compared to the same period last year. The increase in operating revenue was driven by an increase in customer recurring revenue that related to a 35% increase in Greenfield broadband customers and a 6% increase in access lines. Operating expense was relatively flat at $3.6 million in the second quarter of 2007. Operating loss for the second quarter of 2007 improved to $0.5 million from a $0.7 million operating loss in the second quarter of 2006. Greenfield ended the second quarter of 2007 with 16,818 access lines and 3,955 broadband customers, which represent increases of 6% and 35%, respectively, from the end of the second quarter of 2006. As of June 30, 2007, the Company had 130 Greenfield projects, which in total represent approximately 58,000 marketable access lines at the completion of the projects.

The Company is not providing future period guidance due to the proposed transaction with Windstream Corporation.

CT Communications, Inc., headquartered in Concord, N.C., is a growing provider of integrated telecommunications and related services to residential and business customers located primarily in North Carolina. CT Communications, Inc. offers a comprehensive package of telecommunications services, including broadband high-speed Internet services, local and long distance telephone services, and digital wireless voice and data services.

Certain statements contained in this press release are “forward-looking statements,” within the meaning of federal securities laws. We intend these forward-looking statements to be covered by the safe harbor

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provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and assumptions made by management about us, including, among other things, changes in industry conditions created by the Telecommunications Act of 1996 and related state and federal legislation and regulations, the ability to obtain necessary regulatory and shareholder approvals for the proposed transaction with Windstream, the impact of economic conditions related to financial performance of customers, business partners, competitors and peers within the telecommunications industry, the recovery of the substantial costs incurred over the past few years in connection with our expansion into new businesses, retention of our existing customer base and our ability to attract new customers, our ability to control pricing and product offerings in a highly competitive industry, our ability to attract and retain key personnel, the performance of our investments, rapid changes in technology, our ability to manage capital expenditures related to changes in technology, actions of our competitors, the impact of economic and political events on our business, operating regions and customers, including terrorist attacks. In some cases, these forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “intend” or “potential” or the negative of those words or other comparable words. These forward-looking statements may differ materially from actual events or results because they involve estimates, assumptions and uncertainties and should be viewed with caution. We undertake no obligation to update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. Readers are also directed to consider the risks, uncertainties and other factors discussed in documents filed by us with the Securities and Exchange Commission, including those matters summarized under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2006.

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CT Communications, Inc.
Consolidated Statements of Income
(Unaudited, in thousands, except per share amounts)

	Three Months Ended June 30,						%
	2007			2006			Change
Operating Revenue
ILEC Services	$	27,182		$	26,105			4.1	%
Wireless Services		10,572			9,683			9.2	%
CLEC Services		5,377			5,354			0.4	%
Greenfield Services		3,175			2,882			10.2	%
Total Operating Revenue		46,306			44,024			5.2	%
Operating Expenses
ILEC Services		21,607			20,521			5.3	%
Wireless Services		9,276			8,870			4.6	%
CLEC Services		5,783			5,716			1.2	%
Greenfield Services		3,640			3,575			1.8	%
Other		1,258			511			146.2	%
Total Operating Expense		41,564			39,193			6.0	%
Operating Income		4,742			4,831			(1.8	%)
Other Income (Expense)
Investment, Equity Method		2			263
Gains, Interest, Dividends		2,178			1,945
Impairment on Investments		—			—
Other Expenses, Principally Interest		(664	)		(838	)
Total Other Income (Expense)		1,516			1,370
Pre-Tax Income		6,258			6,201
Income Tax Expense		2,286			2,258
Net Income	$	3,972		$	3,943
Diluted Weighted Average Shares		20,251			19,452
Diluted Earnings Per Share	$	0.20		$	0.20

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CT Communications, Inc.
Consolidated Statements of Income
(Unaudited, in thousands, except per share amounts)

	Six Months Ended June 30,						%
	2007			2006			Change
Operating Revenue
ILEC Services	$	54,304		$	52,028			4.4	%
Wireless Services		20,333			18,840			7.9	%
CLEC Services		10,742			10,573			1.6	%
Greenfield Services		6,339			5,678			11.6	%
Total Operating Revenue		91,718			87,119			5.3	%
Operating Expense
ILEC Services		42,331			39,884			6.1	%
Wireless Services		18,371			17,476			5.1	%
CLEC Services		11,433			11,577			(1.2	%)
Greenfield Services		7,117			7,081			0.5	%
Other		1,601			1,195			34.0	%
Total Operating Expense		80,853			77,213			4.7	%
Operating Income		10,865			9,906			9.7	%
Other Income (Expense)
Investment, Equity Method		13			90,103
Gains, Interest, Dividends		3,529			2,758
Impairment on Investments		—			(876	)
Other Expenses, Principally Interest		(1,317	)		(1,872	)
Total Other Income (Expense)		2,225			90,113
Pre-Tax Income		13,090			100,019
Income Tax Expense		4,492			38,710
Net Income	$	8,598		$	61,309
Diluted Weighted Average Shares		20,240			19,359
Diluted Earnings Per Share	$	0.42		$	3.17

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CT Communications, Inc.
Consolidated Balance Sheets
(Unaudited, in thousands)

	June 30,		December 31,
	2007		2006
ASSETS
Cash and Cash Equivalents	$	7,459	$	14,063
Short-Term Investments		92,619		86,741
Accounts Receivable and Unbilled Revenue, Net		16,168		16,419
Other Assets		11,540		11,775
Current Assets		127,786		128,998
Investments		7,464		10,960
Property, Plant and Equipment, Net		214,852		209,908
Other Assets		37,906		37,492
TOTAL ASSETS	$	388,008	$	387,358
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Portion of Long-Term Debt	$	5,000	$	5,000
Accounts Payable		6,949		12,553
Customer Deposits and Advance Billings		4,754		4,618
Other Accrued Liabilities		15,235		12,714
Current Liabilities		31,938		34,885
Long-Term Debt		32,500		35,000
Deferred Credits and Other Liabilities		39,005		38,095
Stockholders’ Equity		284,565		279,378
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	388,008	$	387,358

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CT Communications, Inc.
Customer Information

	June 30,		June 30,		%
	2007		2006		Change
Wired Access Lines
ILEC Access Lines		102,641		109,356		(6.1	%)
CLEC Access Lines		36,811		34,372		7.1	%
Greenfield Access Lines		16,818		15,895		5.8	%
Total Wired Access Lines		156,270		159,623		(2.1	%)
Broadband Customers *		29,547		23,661		24.9	%
Wireless Subscribers		50,297		47,932		4.9	%
Revenue Generating Units
ILEC
Residential Access Lines		74,512		80,952		(8.0	%)
Business Access Lines		28,129		28,404		(1.0	%)
Broadband Customers		24,775		20,053		23.5	%
Total ILEC		127,416		129,409		(1.5	%)
CLEC
Business Access Lines		36,811		34,372		7.1	%
Broadband Customers		817		679		20.3	%
Total CLEC		37,628		35,051		7.4	%
Greenfield
Residential Access Lines		10,950		10,633		3.0	%
Business Access Lines		5,868		5,262		11.5	%
Broadband Customers		3,955		2,929		35.0	%
Total Greenfield		20,773		18,824		10.4	%
Wireless Subscribers		50,297		47,932		4.9	%
Total Revenue Generating Units		236,114		231,216		2.1	%

* -Broadband customers include DSL and High Speed customers previously reported separately.

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CT Communications, Inc.
Other Selected Financial Data
(Unaudited, in thousands, except per share amounts)

Capital Expenditures

	Three Months Ended June 30,				Six months Ended June 30,
	2007		2006		2007		2006
ILEC	$	5,858	$	3,298	$	13,410	$	7,041
Wireless		2,363		491		2,627		687
CLEC		423		493		768		1,773
Greenfield		1,222		1,376		2,357		2,995
Other		713		406		1,920		555
Total	$	10,579	$	6,064	$	21,082	$	13,051

Depreciation

	Three Months Ended June30,				Six months Ended June 30,
	2007		2006		2007		2006
ILEC	$	5,145	$	5,347	$	10,300	$	10,825
Wireless		693		641		1,386		1,276
CLEC		700		728		1,421		1,443
Greenfield		1,129		1,032		2,243		2,046
Other		226		225		451		503
Total	$	7,893	$	7,973	$	15,801	$	16,093

Reconciliation of Prior Period Reported Results to Normalized Results

For the six months ended June 30, 2006

			Palmetto
	GAAP		MobileNet *			Normalized
Operating Revenue	$	87,119	$	—		$	87,119
Operating Expense		77,213		—			77,213
Operating Income		9,906		—			9,906
Other Income (Expense)		90,113		(89,164	)		949
Pre-Tax Income		100,019		(89,164	)		10,855
Income Tax Expense		38,710		(34,943	)		3,767
Net Income	$	61,309	$	(54,221	)	$	7,088
Diluted EPS	$	3.17	$	(2.80	)	$	0.37

* Equity income related to the March 2006 sale of PMN’s ownership interests in ten wireless partnerships.

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