FairPoint Communications 2004 Annual Report Download - page 27

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Net cash provided by operating activities of continuing operations $45,975
Adjustments:
Depreciation and amortization (50,287)
Other non-cash items (20,618)
Impairment of investments (349)
Changes in assets and liabilities arising from continuing operations net of acquisitions 926
Loss from continuing operations (24,353)
Adjustments:
Interest expense 104,315
Provision for income tax expense 516
Depreciation and amortization 50,287
Net gain on sale of investments and other assets (104)
Impairment of investments 349
Equity in earnings of investee (10,899)
Distributions from investments(8) 15,017
Realized and unrealized losses on interest rate swaps 112
Non-cash stock based compensation 49
Write-off of cost associated with an abandoned offering of Income Deposit Securities and related
transactions 5,951
Deferred patronage dividends (84)
Adjusted EBITDA 141,156
Cash interest expense on credit facility(3) (33,738)
Cash interest expense on other debt (453)
Capital expenditures(4)(9) (36,492)
Income tax expense(5) (650)
Additional public company costs(2) (1,000)
Cash that would have been available to pay dividends 68,823
Cash required to pay dividends on common stock in accordance with our dividend policy 54,821
(1) To pay the targeted dividends on our common stock, our average Adjusted EBITDA with respect to each quarter must be at least
$30.2 million.
(2) Takes into account estimated incremental ongoing expenses of $1.0 million associated with being a public common stock issuer,
including estimated audit fees, director and officer liability insurance premiums, expenses relating to stockholders' meetings, printing
expenses, investor relations expenses, registrar and transfer agent fees, directors' fees, additional legal fees and listing fees.
(3) Represents interest of approximately 5.75% per annum on $589.0 million of outstanding borrowings under our credit facility and a
commitment fee of 0.5% per annum on the average unused balance of $98.6 million under our credit facility's revolving facility. This
assumed rate is based on indicative LIBOR rates as of February 28, 2005, assumes the redemption of the
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