FairPoint Communications 2004 Annual Report Download - page 96

entire amount of goodwill will be deductible for income tax purposes. Acquisition costs were $0.3 million in 2003. This acquisition has
been accounted for using the purchase method and, accordingly, the results of operations have been included in the Company's
consolidated financial statements from the date of acquisition. The excess of the purchase price and acquisition costs over the fair
value of the net identifiable assets acquired was $25.1 million and has been recognized as goodwill.
The allocation of the total net purchase price is shown in the table below (dollars in thousands):
Current assets $1,027
Property, plant, and equipment 8,301
Excess cost over fair value of net assets acquired 25,064
Other assets —
Current liabilities (1,182)
Other liabilities (268)
Total net purchase price $32,942
The following unaudited pro forma information presents the combined results of operations of the Company as though the acquisition
was made as of January 1, 2002. These results include certain adjustments, including increased interest expense on debt related to the
acquisition, certain preacquisition transaction costs, and related income tax effects. The pro forma financial information does not necessarily
reflect the results of operations as if the acquisition had been in effect at the beginning of the period or that may be attained in the future
(dollars in thousands).
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Revenues $238,663 238,466
Loss from continuing operations (8,190)(8,321)
Net income 1,731 13,612
Basic and diluted loss from continuing operations per share (1.49)(2.13)
Basic and diluted earnings (loss) per share (0.45)0.18
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Changes in the carrying amount of goodwill were as follows (dollars in thousands):
Balance, December 31, 2002 $454,306
Disposal of South Dakota Divestiture (10,525)
Balance, December 31, 2002, adjusted for discontinued operations 443,781
Acquisition of CST and Commtel 25,064
Balance, December 31, 2003 468,845
Acquisition adjustments of CST and Commtel (337)
Balance, December 31, 2004 $468,508
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