Earthlink 2005 Annual Report Download - page 31

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Item 6.
Selected Financial Data.
The following selected consolidated financial data should be read in conjunction with “Management’s Discussion and Analysis of
Financial Condition and Results of Operation” and the consolidated financial statements and notes thereto included elsewhere in this Annual
Report on Form 10-K.
(1)
Reflects the accretion of liquidation dividends on Series A and Series B convertible preferred stock at a 3% annual rate, compounded
quarterly, and the accretion of a dividend related to the beneficial conversion feature in accordance with Emerging Issues Task Force
(“EITF”) Issue No. 98-5. During 2003, Sprint converted all remaining shares of Series A and Series B convertible preferred stock into
common stock. Consequently, there are currently no shares of Series A or Series B convertible preferred stock outstanding and no
associated dividend obligations.
30
Year Ended December 31,
2001
2002
2003
2004
2005
(in thousands, except per share amounts)
Statement of operations data:
Revenues
$
1,244,928
$
1,357,421
$
1,401,930
$
1,382,202
$
1,290,072
Operating costs and expenses
1,601,458
1,517,442
1,468,894
1,271,444
1,125,576
Income (loss) from operations
(356,530
)
(160,021
)
(66,964
)
110,758
164,496
Net income (loss)
(341,061
)
(148,033
)
(62,194
)
111,009
142,780
Deductions for accretion dividends(1)
(29,880
)
(19,987
)
(4,586
)
—
—
Net income (loss) attributable to
common stockholders
$
(370,941
)
$
(168,020
)
$
(66,780
)
$
111,009
$
142,780
Basic net income (loss) per share
$
(2.73
)
$
(1.11
)
$
(0.42
)
$
0.72
$
1.04
Diluted net income (loss) per share
$
(2.73
)
$
(1.11
)
$
(0.42
)
$
0.70
$
1.02
Basic weighted average common
shares outstanding
135,738
151,355
157,321
154,233
137,080
Diluted weighted average common
shares outstanding
135,738
151,355
157,321
157,815
139,950
Cash flow data:
Cash provided by operating activities
$
47,388
$
18,958
$
101,728
$
188,152
$
188,704
Cash (used in) provided by investing
activities
(538,723
)
3,126
25,003
(69,070
)
(65,081
)
Cash used in financing activities
(10,119
)
(24,485
)
(88,882
)
(108,912
)
(169,239
)
As of December 31,
2001
2002
2003
2004
2005
(in thousands)
Balance sheet data:
Cash and cash equivalents
$
173,292
$
170,891
$
208,740
$
218,910
$
173,294
Investments in marketable securities(2)
420,732
344,546
279,125
312,060
248,825
Cash and marketable securities
594,024
515,437
487,865
530,970
422,119
Total assets
1,182,781
1,023,553
827,020
805,450
749,149
Long-term debt, including long-
term portion of capital leases
2,423
937
342
287
1,067
Total liabilities
331,727
331,253
283,357
257,843
227,285
Accumulated deficit
(1,068,971
)
(1,236,991
)
(1,303,771
)
(1,192,762
)
(1,049,982
)
Stockholders
’
equity
851,054
692,300
543,663
547,607
521,864