FairPoint Communications 2007 Annual Report Download - page 44
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Table of Contents
Our peer group consists of the following companies: CenturyTel, Inc., Citizens Communications Company, Consolidated
Communications Holdings, Inc., Iowa Telecommunications Services, Inc. and Windstream Corporation.
Our board of directors has adopted a dividend policy which reflects an intention that a substantial portion of the cash generated by
our business in excess of operating needs, interest and principal payments on our indebtedness, dividends on our future senior classes of
capital stock, if any, capital expenditures, taxes and future reserves, if any, would in general be distributed as regular quarterly dividend
payments to the holders of our common stock, rather than retained by us and used for other purposes, including to finance growth
opportunities. This policy reflects our judgment that our stockholders would be better served if we distributed to them a substantial
portion of the excess cash generated by our business instead of retaining it in our business. However, our stockholders may not receive
any dividends as a result of the following factors:
• nothing requires us to pay dividends;
• while our current dividend policy contemplates the distribution of a substantial portion of our cash in excess of operating needs,
interest and principal payments on our indebtedness, dividends on our future senior classes of capital stock, if any, capital
expenditures, taxes and future reserves, if any, this policy could be modified or revoked by our board of directors at any time;
• the orders issued by the state regulatory authorities in Maine, New Hampshire and Vermont impose restrictions on our ability to
pay dividends following the merger;
• even if our dividend policy was not modified or revoked, the actual amount of dividends distributed under this policy and the
decision to make any distributions are entirely at the discretion of our board of directors;
• the amount of dividends distributed is subject to covenant restrictions under our existing credit facility and will be subject to
similar restrictions under our new credit facility and the indenture governing the notes;
• the amount of dividends distributed is subject to restrictions under Delaware law;
• our stockholders have no contractual or other legal right to receive dividends; and
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