Earthlink 2003 Annual Report Download - page 42

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The accompanying notes are an integral part of these consolidated financial statements.
F-3
EARTHLINK, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Common stock, $0.01 par value, 300,000 shares authorized, 157,263 and 176,410 shares issued as of December 31, 2002 and
2003, respectively, and 154,712 and 159,042 shares outstanding at December 31, 2002 and 2003, respectively
1,573
1,764
Additional paid-in capital
1,939,960
1,949,105
Warrants to purchase common stock
1,223
1,223
Accumulated deficit
(1,236,991
)
(1,303,771
)
Treasury stock, at cost, 2,551 and 17,368 shares, respectively, at December 31, 2002 and 2003
(14,176
)
(104,344
)
Unrealized gains (losses) on investments
531
(117
)
Deferred compensation — (
197
)
Total stockholders' equity
692,300
543,663
Total liabilities and stockholders' equity $
1,023,553
$
827,020
Year Ended December 31,
2001
2002
2003
(in thousands, except per share data)
Revenues:
Narrowband access
$
999,251
$
1,037,829
$
965,025
Broadband access
167,935
250,591
361,124
Web hosting
59,263
53,210
49,902
Content, commerce and advertising
18,479
15,791
25,879
Total revenues
1,244,928
1,357,421
1,401,930
Operating costs and expenses:
Telecommunications service and equipment costs
509,514
543,981
519,149
Sales incentives
67,919
37,669
21,176
Total cost of revenues
577,433
581,650
540,325
Sales and marketing
327,951
373,481
382,965
Operations and customer support
339,490
324,555
297,045
General and administrative
127,849
123,379
127,664
Acquisition-related amortization
217,483
110,885
84,299
Facility exit costs
—
3,492
36,596
Intangible asset write-off
11,252
—
—
Total operating costs and expenses
1,601,458
1,517,442
1,468,894
Loss from operations
(356,530
)
(160,021
)
(66,964
)
Write-off of equity investments in other companies
(10,000
)
(650
)
(202
)
Interest income and other, net
25,469
12,638
4,972
Net loss
(341,061
)
(148,033
)
(62,194
)
Deductions for accretion dividends
(29,880
)
(19,987
)
(4,586
)
Net loss attributable to common stockholders
$
(370,941
) $
(168,020
) $
(66,780
)