FairPoint Communications 2006 Annual Report Download - page 95
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The Company had entered into financial advisory agreements with certain equity investors, pursuant to which the equity investors provided certain
consulting and advisory services related, but not limited to, equity financings and strategic planning. In 2005, the Company paid approximately $0.1 million
related to these agreements. These agreements were cancelled on February 8, 2005. The Company paid $1.0 million for the year ended December 31, 2004 in
such fees to the equity investors and this expense was classified within operating expenses. The agreements also provided that the Company reimburse the
equity investors for travel relating to the Company’s board of directors meetings. The Company reimbursed the equity investors $123,000 for the year ended
December 31, 2004 for travel and related expenses. In connection with our initial public offering, we terminated these agreements and paid a transaction fee of
$8.4 million to one of these equity advisors.
A law firm, in which a partner of such law firm is the husband of an executive officer, was paid $88,000, $303,000 and $4,000 for the years ended
December 31, 2006, 2005, and 2004, respectively, for legal services and expenses.
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.
2006:
Revenue $64,791 64,196 70,700 70,382
Income from continuing operations 5,720 15,074 5,977 3,745
Net income 5,720 15,074 5,977 4,319
Earnings per from continuing operations
Basic and diluted earnings per share from continuing
operations 0.13 0.44 0.17 0.11
Basic and diluted earnings per share 0.13 0.44 0.17 0.12
2005:
Revenue $61,665 65,206 66,038 69,934
Income from continuing operations 11,042 5,603 4,189 7,716
Net income 11,042 5,603 4,189 8,096
Basic and diluted earnings per share from continuing
operations 0.46 0.16 0.12 0.22
Basic and diluted earnings per share 0.46 0.16 0.12 0.23
In the second quarter of 2006, the Company recorded gains on the sale of two non-core assets resulting in pre-tax gains of $16.4 million. In addition, in
the fourth quarter of 2006, the Company incurred $2.4 million in expenses related to the merger agreement with Verizon Communications Inc.
In connection with the Company’s initial public offering in February 2005, the Company recognized, in the first quarter of 2005, non-operating losses of
$86.2 million related to fees and penalties paid on the
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