Exhibit 99.1
Reclassification of Revenue and Expense
($000's)
During the fourth quarter of 2007, the Company reflected a reclassification of
revenue related to our CTE acquisition from local services to data and internet
services. Also, expenses reflected a reclassification of expenses related to our
CTE acquisition from other operating expenses to network access expenses. This
schedule presents those reclassifications for each quarter in 2007.
For the quarter ended
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2007 March 31, June 30, September 30, December 31, Total Year
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Data and Internet Services:
As previously reported $ 116,426 $ 131,984 $ 133,945 $ 147,292 $ 529,647
Reclassification from local
services 1,598 6,259 6,260 - 14,117
---------------- ---------------- ---------------- ------------------ -----------------
As revised $ 118,024 $ 138,243 $ 140,205 $ 147,292 $ 543,764
================ ================ ================ ================== =================
Local Services:
As previously reported $ 206,042 $ 232,622 $ 231,238 $ 219,977 $ 889,879
Reclassification to data and
internet services (1,598) (6,259) (6,260) - (14,117)
---------------- ---------------- ---------------- ------------------ -----------------
As revised $ 204,444 $ 226,363 $ 224,978 $ 219,977 $ 875,762
================ ================ ================ ================== =================
2007
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Network Access Expenses:
As previously reported $ 50,793 $ 51,878 $ 56,566 $ 66,601 $ 225,838
Reclassification from other
operating expenses 604 1,800 - - 2,404
---------------- ---------------- ---------------- ------------------ -----------------
As revised $ 51,397 $ 53,678 $ 56,566 $ 66,601 $ 228,242
================ ================ ================ ================== =================
Other Operating Expenses:
As previously reported $ 189,871 $ 215,188 $ 215,266 $ 190,580 $ 810,905
Reclassification to network
access expenses (604) (1,800) - - (2,404)
---------------- ---------------- ---------------- ------------------ -----------------
As revised $ 189,267 $ 213,388 $ 215,266 $ 190,580 $ 808,501
================ ================ ================ ================== =================
Other Financial and Operating Data
Customer Segmentation
The Company added disclosures on revenue and access lines in its second quarter
2008 earnings release and Form 10-Q. This schedule presents those additional
disclosures on a quarterly basis dating back to first quarter 2007.
1Q '07 2Q '07 3Q '07 4Q '07 1Q '08 2Q '08
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Revenue ($000's):
Residential $ 221,778 $ 248,550 $ 247,890 $ 240,235 $ 241,362 $ 239,633
Business 195,345 216,847 214,797 223,111 220,025 221,914
-------------- -------------- --------------- --------------- --------------- ---------------
Total customer revenue 417,123 465,397 462,687 463,346 461,387 461,547
Regulatory (Access services) 139,024 113,429 113,127 113,882 107,818 101,003
-------------- -------------- --------------- --------------- --------------- ---------------
Total reported revenue $ 556,147 $ 578,826 $ 575,814 $ 577,228 $ 569,205 $ 562,550
============== ============== =============== =============== =============== ===============
Access lines:
Residential 1,686,841 1,654,854 1,617,916 1,587,930 1,553,094 1,516,402
Business 851,630 848,864 843,701 842,247 834,014 825,345
-------------- -------------- --------------- --------------- --------------- ---------------
Total reported access lines 2,538,471 2,503,718 2,461,617 2,430,177 2,387,108 2,341,747
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