FairPoint Communications 2007 Annual Report Download - page 107

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Table of Contents


 
   
   

2007:
Revenue $69,672 69,897 75,707 68,186
Income (loss) from continuing operations (33) 30,779 (5,191) (19,838)
Net income (loss) (33) 30,779 (5,191) (19,541)
Earnings (loss) per share from continuing operations
Basic — 0.89 (0.15) (0.57)
Diluted — 0.89 (0.15) (0.57)
Earnings (loss) per share
Basic — 0.88 (0.15) (0.56)
Diluted — 0.88 (0.15) (0.56)
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
Earning per share from continuing operations
Basic 0.13 0.44 0.17 0.11
Diluted 0.13 0.44 0.17 0.11
Earnings per share
Basic 0.13 0.44 0.17 0.12
Diluted 0.13 0.44 0.17 0.12
Operating expenses include $7.6 million, $8.3 million, $12.5 million and $23.7 million in the first quarter, second quarter, third
quarter and fourth quarter of 2007, respectively, of expenses related to the merger. In the second quarter of 2007, the Company recorded a
gain on the sale of its investment in Orange County-Poughkeepsie Limited Partnership of $46.4 million. In the third quarter and fourth
quarter of 2007, we recognized a loss on derivative instruments of $5.7 million and $11.5 million, respectively.
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.
 
 
The carrying amount approximates fair value because of the short maturity of these instruments.

Investments classified as trading securities are carried at their fair value, which was approximately $1.0 million and $0.7 million at
December 31, 2007 and 2006, respectively (see note 7 and note 10).
At December 31, 2007, the Company had cost method investments with a carrying value of $3.7 million. The Company did not
estimate the fair value of these investments as to do so would involve significant judgment and a value could not be determined with any
degree of accuracy.
105