(RTTNews) - Telecommunications provider Windstream Corp. (WIN: News ) reported Monday a 24% decline in profit for the third quarter, reflecting lower revenues as well as one-time costs. Total lines dropped about 5.2% in the quarter, however, the company noted that the line loss in the quarter was the lowest since its formation in 2006.

The Little Rock, Arkansas-based high-speed Internet services provider's third-quarter net income was $80 million, down from prior year's net income of $105.9 million. On a per share basis, earnings fell 25% to $0.18 from $0.24 per share last year.

The company noted that certain one time items reduced the latest quarter's earnings by about $0.06 per share. The items comprised of $15 million in non-cash pension expense, $5 million in restructuring charges related to a workforce reduction announced on September 30, $5 million in non-cash amortization of wireline franchise rights, and $1 million in merger and integration costs.

In September, Windstream had said that it plans to eliminate approximately 350 positions by the year end, to offset revenue pressure in the residential voice business and to better align the company to focus on broadband and business enterprise opportunities.

On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.21 per share for the quarter. Analysts' estimates typically exclude special items.

Total quarterly revenues and sales declined 8% to $734.3 million from $794.1 million in the same quarter last year, and missed thirteen Wall Street analysts' consensus estimate of $747.03 million.
On a pro forma basis, excluding the disposed out of territory product distribution operations, merger and integration costs related to the pending acquisitions, and the non-cash impairment charge for acquired assets held for sale, revenues and sales for the quarter was $726.1 million, down 6% from $772.3 million in the previous year.

In the quarter, service revenues, on a reported basis, dropped 5% to $704.9 million from last year's $741.9 million, and product sales plunged 44% to $29.4 million from $52.2 million a year ago.

Operating income was $225.4 million, down 17% from prior year's $270.6 million. Operating income before depreciation and amortization, or OIBDA, fell 10% to $360.3 million from $399.7 million in the year ago quarter. Excluding the incremental non-cash pension expense and restructuring expense, OIBDA was approximately $391 million, down 2.5% from a year ago, resulting in an OIBDA margin of about 54%.

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