Earthlink 2005 Annual Report Download - page 40

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Results of Operations
The following table sets forth statement of operations data, cash flow data and employee data for the periods indicated:
*
denotes percentage is not meaningful or is not calculable
#
Represents full-time equivalents
39
Year Ended December 31,
2004 vs. 2003
2005 vs. 2004
2003
2004
2005
$ Change
% Change
$ Change
% Change
(dollars in thousands)
Statement of operations data:
Revenues:
Narrowband access
$
965,025
$
874,010
$
742,757
$
(91,015
)
-
9
%
$
(131,253
)
-
15
%
Broadband access
361,124
419,411
441,736
58,287
16
%
22,325
5
%
Web hosting
49,902
47,547
40,670
(2,355
)
-
5
%
(6,877
)
-
14
%
Advertising and other value-added services
25,879
41,234
64,909
15,355
59
%
23,675
57
%
Total revenues
1,401,930
1,382,202
1,290,072
(19,728
)
-
1
%
(92,130
)
-
7
%
Operating costs and expenses:
Telecommunications service and equipment
costs
519,149
431,162
366,654
(87,987
)
-
17
%
(64,508
)
-
15
%
Sales incentives
21,176
10,040
8,323
(11,136
)
-
53
%
(1,717
)
-
17
%
Total cost of revenues
540,325
441,202
374,977
(99,123
)
-
18
%
(66,225
)
-
15
%
Sales and marketing
382,965
417,250
390,172
34,285
9
%
(27,078
)
-
6
%
Operations and customer support
297,045
255,192
233,907
(41,853
)
-
14
%
(21,285
)
-
8
%
General and administrative
127,664
105,043
112,173
(22,621
)
-
18
%
7,130
7
%
Acquisition
-
related amortization
84,299
24,363
12,267
(59,936
)
-
71
%
(12,096
)
-
50
%
Facility exit and restructuring costs
36,596
28,394
2,080
(8,202
)
-
22
%
(26,314
)
-
93
%
Total operating costs and expenses
1,468,894
1,271,444
1,125,576
(197,450
)
-
13
%
(145,868
)
-
11
%
Income (loss) from operations
(66,964
)
110,758
164,496
177,722
*
53,738
49
%
Net losses of equity affiliate (HELIO)
—
—
(
15,608
)
—
*
(
15,608
)
*
Gain (loss) on investments in other companies,
net
(202
)
(1,420
)
2,877
(1,218
)
*
4,297
*
Interest income and other, net
4,972
6,131
13,491
1,159
23
%
7,360
120
%
Income (loss) before income taxes
(62,194
)
115,469
165,256
177,663
*
49,787
43
%
Provision for income taxes
—
4,460
22,476
4,460
*
18,016
*
Net income (loss)
(62,194
)
111,009
142,780
173,203
*
31,771
29
%
Deductions for accretion dividends
(4,586
)
—
—
4,586
-
100
%
—
*
Net income (loss) attributable to common
stockholders
$
(66,780
)
$
111,009
$
142,780
$
177,789
*
$
31,771
29
%
Cash flow data:
Cash provided by operating activities
$
101,728
$
188,152
$
188,704
Cash provided by (used in) investing activities
$
25,003
$
(69,070
)
$
(65,081
)
Cash used in financing activities
$
(88,882
)
$
(108,912
)
$
(169,239
)
Employee data:
Number of employees at year end (#)
3,335
2,067
1,732