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Table of Contents
EARTHLINK HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
17. Quarterly Financial Data (Unaudited)
The following table sets forth certain unaudited quarterly consolidated financial data for the eight quarters in the period ended December 31, 2015 . In the opinion
of the Company's management, this unaudited information has been prepared on the same basis as the audited consolidated financial statements and includes all
material adjustments (consisting of normal recurring accruals and adjustments) necessary to present fairly the quarterly unaudited financial information. The
operating results for any quarter are not necessarily indicative of results for any future period.
Three Months Ended
Mar. 31,
2014
June 30,
2014
Sept. 30,
2014
Dec. 31,
2014
Mar. 31,
2015
June 30,
2015
Sept. 30,
2015
Dec. 31,
2015
(unaudited)
(in thousands, except per share data)
Revenues
$ 297,320
$ 297,358
$ 297,745
$ 284,472
$ 282,447
$ 283,664
$ 270,904
$ 260,237
Cost of revenues
145,876
144,188
135,695
131,677
129,462
127,048
122,391
121,727
Income (loss) from
operations
(12,206)
(7,388)
7,689
(8,949)
5,091
10,566
5,750
(1,181)
Gain (loss) from
discontinued operations, net
of tax (1)
55
6
—
(442)
—
—
—
—
Net loss (1)(2)
(26,470)
(21,838)
(1,952)
(22,492)
(10,483)
(9,922)
(10,523)
(12,282)
Net loss per share (3):
Basic
$ (0.26)
$ (0.21)
$ (0.02)
$ (0.22)
$ (0.10)
$ (0.10)
$ (0.10)
$ (0.12)
Diluted
$ (0.26)
$ (0.21)
$ (0.02)
$ (0.22)
$ (0.10)
$ (0.10)
$ (0.10)
$ (0.12)
_______________________________________________________________________________
(1) The operating results of the Company's telecom systems business acquired as part of ITC^DeltaCom have been separately presented as discontinued
operations for all periods presented. On August 2, 2013, the Company sold its telecom systems business.
(2) The Company recognized $1.3 million , $6.0 million and $2.5 million of losses of extinguishment of debt during the three months ended March 31, 2015,
three months ended June 30, 2015 and three months ended September 30, 2015, respectively.
(3) The quarterly net income per share amounts will not necessarily add to the net income per share computed for the year because of the method used in
calculating per share data.
18. Subsequent Event
On February 1, 2016, the Company sold certain assets related to its IT services product offerings. The primary purpose of the sale was to simplify operations and
provide more flexibility to invest in new capabilities and services to drive growth in the Company's core business. The purchase price in the transaction was $29.0
million , subject to post-closing contingencies. The Company received $26.0 million of cash upon completion of the sale. The other $3.0 million of consideration
was deposited into an escrow account to fund potential indemnification obligations. As of December 31, 2015, the carrying amount of the IT services assets was
approximately $17.0 million , which includes working capital, fixed assets, goodwill and other intangible assets.
95