FairPoint Communications 2004 Annual Report Download - page 41

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The following table sets forth the percentages of revenues represented by selected items reflected in our consolidated statements of
operations. The year to year comparison of financial results are not necessarily indicative of future results:
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Revenues 100.0%100.0%100.0%
Operating expenses 50.9 48.0 47.8
Depreciation and amortization 19.9 20.8 20.1
Stock based compensation 0.1 — 0.4
Total operating expenses 70.9 68.8 68.3
Income from operations 29.1 31.2 31.7
Net gain on sale of investments and other assets — 0.3 —
Interest and dividend income 0.9 0.8 0.8
Interest expense (41.3)(39.0)(30.1)
Impairment of investments 0.1 — (5.4)
Equity in net earnings of investees 4.3 4.4 3.4
Realized and unrealized losses on interest rate swaps — (0.6)(4.1)
Other non-operating, net (2.5)(0.7)0.2
Total other expense (38.5)(34.8)(35.2)
Loss from continuing operations before income taxes (9.4)(3.6)(3.5)
Income tax benefit (expense) (0.2)0.1 (0.3)
Loss from continuing operations (9.6)% (3.5)% (3.8)%
Year Ended December 31, 2004 Compared with Year Ended December 31, 2003
Revenues
 Revenues increased $21.2 million to $252.6 million in 2004 compared to $231.4 million in 2003. Of this increase,
$8.2 million was attributable to the Maine acquisition and $13.0 million was attributable to our existing operations. We derived our revenues
from the following sources:
 Local calling service revenues increased $7.1 million from $56.1 million in 2003 to $63.2 million in 2004.
Revenue from our existing operations increased $4.2 million. Of this increase, $3.6 million is attributable to the implementation of Basic
Service Calling Areas in the state of Maine, which changes and expands basic service calling areas and has the effect of shifting revenues
from intrastate access to local services. The remaining increase of $0.6 million in local revenues from existing operations is due to increases
in local calling features and local interconnection revenues, despite a 2.9% decline in net voice access lines. The remaining increase in local
calling service revenues was attributable to the Maine acquisition.
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