FairPoint Communications 2004 Annual Report Download - page 119

A law firm, in which a partner of such law firm is the husband of an executive officer, was paid $4,000, $127,000, and $21,000
for the years ended December 31, 2004, 2003, and 2002, respectively, for legal services and expenses.
All payments made by the Company for general counsel services and unsuccessful acquisition bids are classified within
operating expenses on the consolidated statements of operations. All payments made for services related to financings have been
recorded as debt or equity issue costs. All payments made for services related to successful acquisition bids have been capitalized as
direct costs of the acquisitions. All services related to the restructure and discontinuance of the competitive communications operations
have been classified in discontinued operations.
On July 31, 2003, the Company loaned $1.0 million to two employees that are the former owners of Fremont. These loans were
settled on January 2, 2005.
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2004:
Revenue $60,985 62,416 65,437 63,807
Loss from continuing operations (4,608)(4,765)(4,225)(10,755)
Net loss (4,608)(4,094)(4,225)(10,755)
Basic and diluted loss from continuing operations per
share (0.49)(0.50)(0.45)(1.13)
Basic and diluted loss per share (0.49)(0.43)(0.45)(1.13)
2003:
Revenue $55,812 57,285 58,566 59,769
Income (loss) from continuing operations 668 (1,112)(4,209)(3,597)
Net income (loss) 1,294 (504)4,283 (3,402)
Basic and diluted loss from continuing operations per
share (0.12)(0.56)(0.44)(0.38)
Basic and diluted earnings (loss) per share (0.05)(0.50)0.45 (0.36)
In the fourth quarter of 2004, the Company recognized a $6.0 million nonoperating loss related to the write-off of debt issuance
and offering costs associated with an abandoned offering of income deposit securities.
In the first quarter of 2003, the Company recognized a $3.5 million nonoperating gain on the extinguishment of the senior
subordinated notes and the Carrier Services loans, offset by a loss of $5.0 million for the write-off of debt issue costs related to this
extinguishment of debt. In the third quarter of 2003, the Company recognized a gain of $7.7 million on the South Dakota divestiture.
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(a) Cash, Accounts Receivable, Accounts Payable, and Demand Notes Payable
The carrying amount approximates fair value because of the short maturity of these instruments.
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