Windstream Holdings Inc. (NASDAQ: WIN) reported its first-quarter results Thursday before the markets opened. The company had $0.05 in earnings per share (EPS) on $1.4 billion in revenue. That compared to Thomson Reuters consensus estimates of -$0.06 in EPS on $1.43 billion in revenue. In the first quarter of the previous year, it posted $0.24 in earnings per share on $1.46 billion in revenue.

Note that this quarter ended on March 31, and it will be the last quarter that Windstream and Communications Sales and Leasing Inc. (NASDAQ: CSAL) will have reported earnings as a combined entity. The companies split in April.

Windstream’s board of directors declared a prorated $0.15 per share quarterly dividend to Windstream shareholders. Shareholders of record on June 30, 2015, will receive a cash dividend of $0.1104 per share, which represents a prorated dividend for the period April 25, 2015 through June 30, 2015.

Adjusted free cash flow was $232 million in the first quarter, and the company paid shareholders $151 million in dividends. After giving effect to the REIT spin-off and reverse stock split, Windstream expects to pay an annual dividend of $0.60 per share.

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Tony Thomas, president and CEO of Windstream, said:

2015 has already seen significant progress, highlighted by the successful completion of the spinoff of Communications, Sales and Leasing (‘CS&L’) on April 24. This transaction has made Windstream a stronger company with less debt and increased capacity to invest in our network and create value for our shareholders.

Windstream reported cash and cash equivalents of $74 million at the end of the first quarter, compared to $27.8 million at the end of the fourth quarter in 2014.

Previously 24/7 Wall St. noted that, Merrill Lynch expected Windstream to reiterate 2015 guidance covering revenue and cash taxes. It was also looking for 2015 revenue of $5.69 billion, a drop of 2.4% year over year, versus guidance of $5.58 million to $5.80 million and cash taxes of $20 million. Windstream was expected to update its guidance for adjusted EBITDA to account for its lease payment to Communications Sales and Leasing and the brokerage firm estimates adjusted EBITDA to be $1.94 billion, or $1.4 billion adjusting for its lease payment, on margins of 34.1% compared to guidance of 34% to 34.5%.

Adjusted OIBDA of $495 million was ahead of Merrill Lynch’s $485 million estimate and the Street at $491 million, on margins of 34.9% versus the firm’s estimate of 34.0%. Free cash flow of $232 million was ahead of Merrill Lynch’s $189 and consensus of $214 million, and it equates to a payout ratio of 65%

Windstream did in fact affirm its annual guidance that it provided back in February.

Shares of Windstream closed Wednesday down 5.3% at $10.28. After the release of the earnings report, shares were initially down 0.8% at $10.20 in premarket trading Thursday.

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