Frontier Communications 2005 Annual Report Download

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CITIZENS COMMUNICATIONS COMPANY
2005 ANNUAL REPORT

Table of contents

  • Page 1
    CITIZENS COMMUNICATIONS COMPANY 2005 ANNUAL REPORT

  • Page 2

  • Page 3
    ... Stamford, Connecticut (Address of principal executive offices) 06905 (Zip Code) Registrant's telephone number, including area code: (203) 614-5600 Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Common Stock, par value...

  • Page 4
    CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES TABLE OF CONTENTS Page PART I Item 1. Business ...Item 1A. Risk Factors ...Item 1B. Unresolved Staff Comments ...Item 2. Properties ...Item 3. Legal Proceedings ...Item 4. Submission of Matters to a Vote of Security Holders ...Executive Officers ......

  • Page 5
    ...customers buying a bundle or package of services. During 2005, we also began offering a television product in partnership with Echostar's DISH Network, and at the end of 2005 we had approximately 32,000 customers buying a "triple play" package of telephone, television and high-speed internet service...

  • Page 6
    ... calling features including call forwarding, conference calling, caller identification, voicemail and call waiting. We offer packages of communications services. These packages permit customers to bundle their basic telephone line with their choice of enhanced, long distance, television and internet...

  • Page 7
    ... related white or yellow pages book. Television services During 2005, we began offering a television product in partnership with Echostar's DISH Network. We provide access to all-digital television channels featuring movies, sports, news, music, and high-definition TV programming. We offer packages...

  • Page 8
    ... Synchronous Optical Network (SONET) architecture. ELI currently provides the full range of its services in the following cities and their surrounding areas: Boise, Idaho; Portland, Oregon; Salt Lake City, Utah; Seattle, Washington; Spokane, Washington; Phoenix, Arizona; and Sacramento, California...

  • Page 9
    CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES Distance Services, or CALLS plan, reduced prices for interstate-switched access services and phased out many of the implicit subsidies in interstate access rates. The CALLS program expired in 2005. The FCC may address future changes in interstate ...

  • Page 10
    ... lists and/or customer-specific contracts. ELI is not currently subject to rate-of-return or price regulation. However, ELI is subject to state-specific quality of service, universal service, periodic reporting and other regulatory requirements, although the extent of these requirements is generally...

  • Page 11
    ..., generally at similar prices. Competition is based on price, quality, network reliability, customer service, service features and responsiveness to the customer's needs. Many of our competitors have greater market presence and greater financial, technical, marketing and human resources, more...

  • Page 12
    ... between long distance, local, wireless, cable and internet services are becoming increasingly blurred. Through mergers and various service expansion strategies, services providers are striving to provide integrated solutions both within and across geographic markets. Our competitors include CLECs...

  • Page 13
    ... behavior (such as wireless displacement of wireline use, email use, instant messaging and increasing use of VOIP), technology changes and regulatory constraints. These factors are likely to cause our local network service, switched network access, long distance and subsidy revenues to continue to...

  • Page 14
    .... Increasing competition, offering new services, improving the capabilities or reducing the maintenance costs of our plant may cause our capital expenditures to increase in the future. In addition, our ongoing annual dividend of $1.00 per share under our current policy utilizes a significant portion...

  • Page 15
    .... As an incumbent, we are subject to significant regulation from federal, state and local authorities. This regulation restricts our ability to change our rates, especially on our basic services, and imposes substantial compliance costs on us. Regulation restricts our ability to compete and, in...

  • Page 16
    ... COMPANY AND SUBSIDIARIES ITEM 2. PROPERTIES Our principal corporate offices are located in leased premises at 3 High Ridge Park, Stamford, Connecticut. An operations support office is currently located in leased premises at 180 South Clinton Avenue, Rochester, New York. In addition, our Frontier...

  • Page 17
    ..., Microsoft Corp. and Senior Vice President - Worldwide Business Strategy, Microsoft Corp., 2002 to 2004. Before that she was President and Chief Executive Officer, Wink Communications, 1997 to 2002. JOHN H. CASEY, III has been associated with Citizens since November 1999. He is currently Executive...

  • Page 18
    ..., Inc. (formerly e-Steel Corporation), a privately-held software company. PETER B. HAYES has been associated with Citizens since February 2005. He is currently Executive Vice President, Sales, Marketing and Business Development. Previously, he was Senior Vice President, Sales, Marketing and...

  • Page 19
    ...OF EQUITY SECURITIES PRICE RANGE OF COMMON STOCK Our common stock is traded on the New York Stock Exchange under the symbol CZN. The following table indicates the high and low prices per share during the periods indicated. 2005 High Low High 2004 Low First Quarter ...Second Quarter ...Third Quarter...

  • Page 20
    CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES ISSUER PURCHASES OF EQUITY SECURITIES The following tables display issuer purchases of equity securities for the years ended December 31, 2005 and 2004. (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (d) Maximum ...

  • Page 21
    CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (d) Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs Period (a) Total Number of Shares Purchased (b) Average Price ...

  • Page 22
    CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (d) Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs Period (a) Total Number of Shares Purchased (b) Average Price ...

  • Page 23
    CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES (2) Includes restricted shares withheld (under the terms of grants under employee stock compensation plans) to offset minimum tax withholding obligations that occur upon the vesting of restricted shares. The Company's stock compensation plans provide...

  • Page 24
    ... the communications industry as a result of federal and state legislation and regulation, including potential changes in access charges and subsidy payments, and regulatory network upgrade and reliability requirements; Our ability to comply with federal and state regulation (including state rate of...

  • Page 25
    CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES The effects of increased medical, retiree and pension expenses and related funding requirements; Changes in income tax rates, tax laws, regulations or rulings, and/or federal or state tax assessments; The effect of changes in the communications ...

  • Page 26
    ..., offering new services such as wireless and VOIP, and improving the capabilities or reducing the maintenance costs of our plant may cause our capital expenditures to increase in the future. For 2006, we expect our capital expenditures to increase in order to build wireless data networks and...

  • Page 27
    ...as of the date of execution for certain future rate-setting dates. At December 31, 2005, the rates obtained under these forward rate agreements were below market rates. Changes in the fair value of these forward rate agreements, which do not qualify for hedge accounting, are recorded in other income...

  • Page 28
    ... Chief Executive Officer, and his wife, a former director. The cash surrender value of the policies purchased by Dr. Tow totaled approximately $24.2 million, and we recognized a pre-tax gain of approximately $457,000 that is included in other income (loss), net. During 2005, we sold shares of Global...

  • Page 29
    ... per Citizens common share. The conversion price was reduced from $13.30 to $11.46 during the third quarter of 2004 as a result of our $2.00 per share special, non-recurring dividend paid on our common stock. The proceeds from the issuance of the Trust Convertible Preferred Securities and a Company...

  • Page 30
    ... On August 24, 1999, our Board of Directors approved a plan of divestiture for our public utilities services businesses, which included gas, electric and water and wastewater businesses. We have sold all of these properties. All of the agreements relating to the sales provide that we will indemnify...

  • Page 31
    ... include the following: discount rates, expected long-term rate of return on plan assets, future compensation increases, employee turnover, healthcare cost trend rates, expected retirement age, optional form of benefit and mortality. We review these assumptions for changes annually with its outside...

  • Page 32
    ... to be made by us to the pension plan in 2006. No contribution was made to our pension plan during 2005. Income Taxes Our effective tax rate is below statutory rate levels as a result of the completion of audits with federal and state taxing authorities and changes in the structure of certain of our...

  • Page 33
    ... 148. In December 2004, the FASB issued SFAS No. 123 (revised 2004), "Share-Based Payment," (SFAS No. 123R). SFAS No. 123R requires that stock-based employee compensation be recorded as a charge to earnings. In April 2005, the Securities and Exchange Commission required adoption of SFAS No. 123R for...

  • Page 34
    ... or cash flows. (b) RESULTS OF OPERATIONS REVENUE Frontier revenue is generated primarily through the provision of local, network access, long distance and data services. Such services are provided under either a monthly recurring fee or based on usage at agreed upon rates and are not dependent upon...

  • Page 35
    ...changing technology, and by some customers disconnecting second lines when they add high-speed internet or cable modem service. We lost approximately 102,000 access lines during 2005 but added approximately 99,000 high-speed internet subscribers during this same period. The loss of lines during 2005...

  • Page 36
    ... Services Local services revenue for the year ended December 31, 2005 decreased $21.4 million or 3% as compared with the prior year. This decline is comprised of $18.8 million related to the continued loss of access lines and $4.0 million related to a reserve associated with state rate of return...

  • Page 37
    ...internet customers and greater long distance minutes of use in the Frontier sector, and higher costs at ELI due to increased demand. As we continue to increase our sales of data products such as high-speed internet and expand the availability of our unlimited long distance calling plans, our network...

  • Page 38
    ... and facilities to achieve greater efficiencies. These reviews may result in reductions in personnel and an increase in severance costs. As a result of early retirement being offered to certain of our employees during the first quarter of 2006 we expect to recognize $3.5 million to $4.0 million...

  • Page 39
    ... quarter of 2003, we reserved approximately $2.3 million of trade receivables with Touch America as a result of Touch America's filing for bankruptcy. These receivables were generated as a result of providing ordinary course telecommunication services. If other telecommunications companies file...

  • Page 40
    CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES During the third and fourth quarters of 2003, we recognized additional pre-tax impairment losses of $4.0 million and $11.3 million related to our Vermont property to write down assets to be sold to our best estimate of their net realizable value upon ...

  • Page 41
    ... business operations due to ongoing investing and funding activities, including those associated with our pension assets. Market risk refers to the potential change in fair value of a financial instrument as a result of fluctuations in interest rates and equity and commodity prices. We do not hold...

  • Page 42
    ... the agreements, which qualify for hedge accounting, we make semi-annual, floating rate interest payments based on six month LIBOR and receive a fixed rate on the notional amount. The underlying variable rate for these interest rate swaps is set in arrears. For the years ended December 31, 2005 and...

  • Page 43
    ... accounting firm, on management's assessment of the effectiveness of our internal control over financial reporting appears on page F-3 and is incorporated by reference. Changes in internal control over financial reporting We reviewed our internal control over financial reporting at December 31, 2005...

  • Page 44
    ... 10-Q for the six months ended June 30, 2000, File No. 001-11001). By-laws of Citizens Communications Company, as amended (incorporated by reference to Exhibit 3.200.5 to the Registrant's Quarterly Report on Form 10-Q for the nine months ended September 30, 2004, File No. 001-11001). Certificate of...

  • Page 45
    ... by reference to Exhibit 4.200.9 to the Registrant's Form 8-K Current Report filed May 28, 1996, File No. 001-11001). Letter of Representations dated January 18, 1996, from Citizens Communications Company (f/k/a Citizens Utilities Company) and JPMorgan Chase Bank, N.A. (as successor to Chemical...

  • Page 46
    ...001-11001). Amendment No. 1 to the Citizens Communications Company (f/k/a Citizens Utilities Company) NonEmployee Directors' Deferred Fee Equity Plan (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K, filed on December 20, 2005, File No. 001-11001). Separation...

  • Page 47
    ... Agreement between Citizens Communications Company and Integra Telecom Holdings, Inc. dated February 6, 2006 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on February 9, 2006, File No. 001-11001). Stock Redemption Agreement between Citizens Utilities...

  • Page 48
    CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES 31.1 31.2 32.1 32.2 Certification of Principal Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. Certification of Principal Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. ...

  • Page 49
    ... thereunto duly authorized. CITIZENS COMMUNICATIONS COMPANY (Registrant) By: /s/ MARY AGNES WILDEROTTER MARY AGNES WILDEROTTER Chairman of the Board and Chief Executive Officer March 1, 2006 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the...

  • Page 50
    CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES Index to Consolidated Financial Statements Item Page Management's Report on Internal Control Over Financial Reporting ...Report of Independent Registered Public Accounting Firm ...Report of Independent Registered Public Accounting Firm ......

  • Page 51
    ... Board of Directors and Shareholders Citizens Communications Company: The management of Citizens Communications Company and subsidiaries is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a15(f) and 15d...

  • Page 52
    ... inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, management's assessment that Citizens Communications Company and subsidiaries maintained effective internal control over financial reporting as of December...

  • Page 53
    ... for Asset Retirement Obligations" as of January 1, 2003. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of Citizens Communications Company and subsidiaries internal control over financial reporting as of...

  • Page 54
    ...Total current assets ...Property, plant and equipment, net...Goodwill, net ...Other intangibles, net ...Investments ...Other assets ...Total assets ...LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Long-term debt due within one year...Accounts payable ...Advanced billings ...Income taxes...

  • Page 55
    ... income tax benefit of $(3,853)* ...Income from continuing operations before cumulative effect of change in accounting principle ...Discontinued operations (see Note 8): Income from operations of discontinued conferencing business (including gain on disposal of $14,061 in 2005) ...Income tax expense...

  • Page 56
    ... Stock plans ...Conversion of EPPICS ...Conversion of Equity Units . Dividends on common stock of $2.50 per share ...Net income ...Tax benefit on equity forward contracts ...Other comprehensive loss, net of tax and reclassifications adjustments ...Balance December 31, 2004. Stock plans ...Conversion...

  • Page 57
    ...: Repayment of customer advances for construction and contributions in aid of construction ...Long-term debt borrowings ...Debt issuance costs ...Long-term debt payments ...Premium to retire debt ...Issuance of common stock ...Shares repurchased ...Dividends paid...Net cash used by financing...

  • Page 58
    ... local exchange carrier, or ILEC. We offer our ILEC services under the "Frontier" name. In addition, we provide competitive local exchange carrier, or CLEC, services to business customers and to other communications carriers in certain metropolitan areas in the western United States through Electric...

  • Page 59
    ... at December 31, 2005 are associated with the Frontier segment, which is the reporting unit. SFAS No. 142 also requires that intangible assets with estimated useful lives be amortized over those lives and be reviewed for impairment in accordance with SFAS No. 144, "Accounting for Impairment or...

  • Page 60
    ...plans are granted to eligible officers, management, non-management employees and non-employee directors. Awards may be made in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock or other stock based awards. As permitted by current accounting...

  • Page 61
    ... 44," there is no accounting consequence for changes made to the exercise price and the number of shares of a fixed stock option or award as a direct result of the special, non-recurring dividend. (l) Net Income Per Common Share Available for Common Shareholders: Basic net income per common share...

  • Page 62
    ...." SFAS No. 148 provides alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based compensation and amends the disclosure requirements of SFAS No. 123 to require prominent disclosures in both annual and interim financial statements. This...

  • Page 63
    ... No. 3. SFAS No. 154 changes the accounting for, and reporting of, a change in accounting principle. SFAS No. 154 requires retrospective application to prior period's financial statements of voluntary changes in accounting principle, and changes required by new accounting standards when the standard...

  • Page 64
    ... PROPERTY, PLANT AND EQUIPMENT: The components of property, plant and equipment at December 31, 2005 and 2004 are as follows: ($ in thousands) Estimated Useful Lives 2005 2004 Land ...Buildings and leasehold improvements ...General support ...Central office/electronic circuit equipment ...Cable and...

  • Page 65
    CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements 2003 On April 1, 2003, we completed the sale of approximately 11,000 telephone access lines in North Dakota for approximately $25,700,000 in cash. The pre-tax gain on the sale was $2,274,000. On April 4, 2003...

  • Page 66
    ...completed the divestiture of our public utilities services business pursuant to plans announced in 1999. Losses on the sales of our Vermont properties were included in the impairment charges recorded in 2003. (9) INVESTMENTS: The components of investments at December 31, 2005 and 2004 are as follows...

  • Page 67
    ... entities that are accounted for under the equity method of accounting consist of the following: (1) a 33% interest in the Mohave Cellular Limited Partnership which is engaged in cellular mobile telephone service in the Arizona area; (2) a 16.8% interest in the Fairmount Cellular Limited Partnership...

  • Page 68
    ... Interest Rate Swap Other December 31, 2005 Rural Utilities Service Loan Contracts ...Senior Unsecured Debt ...EPPICS** (reclassified as a result of adopting FIN 46R) ...ELI Capital Leases ...Industrial Development Revenue Bonds ...TOTAL LONG TERM DEBT ...Less: Debt Discount ...Less: Current...

  • Page 69
    ... Associated facility fees vary depending on our leverage ratio and were 0.375% as of December 31, 2005. During the term of the credit facility we may borrow, repay and reborrow funds. The credit facility is available for general corporate purposes but may not be used to fund dividend payments. There...

  • Page 70
    ... at the market rate as of the date of execution for certain future rate-setting dates. At December 31, 2005, the rates obtained under these forward rate agreements were below market rates. The fair value of these derivatives is reflected in other current assets as of December 31, 2005, in the amount...

  • Page 71
    ... the sale of our corporate aircraft during the third quarter. In 2003, the amount represents the sales of The Gas Company in Hawaii and our Arizona gas and electric divisions, access lines in North Dakota and our wireless partnership interest in Wisconsin, and our Plano, Texas office building. F-22

  • Page 72
    ... 31, 2005, we have four stock based compensation plans, which are described below. We apply APB Opinion No. 25 and related interpretations in accounting for the employee stock plans resulting in the use of the intrinsic value to value the stock option. Compensation cost has not generally been...

  • Page 73
    ... and EITF 00-23, "Issues Related to the Accounting for Stock Compensation under APB No. 25 and FIN 44," there is no accounting consequence for changes made to the exercise price and the number of shares of a fixed stock option or award as a direct result of the special, non-recurring dividend. F-24

  • Page 74
    ...calculation, the fair value of each option grant is estimated on the date of grant using the Black Scholes optionpricing model with the following weighted average assumptions used for grants in 2005 and 2003: 2005 2003 Dividend yield...Expected volatility ...Risk-free interest rate ...Expected life...

  • Page 75
    ... the non-employee directors in 2005 were paid quarterly (except for the retainer which was paid at the beginning of the year. If the director elects stock units, the number of units credited to the director's account is determined as follows: the total cash value of the fees payable to the director...

  • Page 76
    ... beneficiaries, starting at the director's retirement, death or termination of directorship. In 1999, we terminated this Plan. The vested benefit of each non-employee director, as of May 31, 1999, was credited to the director's account in the form of stock units. Such benefit will be payable to each...

  • Page 77
    CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements The components of the net deferred income tax liability (asset) at December 31 are as follows: Deferred income tax liabilities: Property, plant and equipment basis differences ...Intangibles ...Other, net ......

  • Page 78
    CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements The provision (benefit) for federal and state income taxes, as well as the taxes charged or credited to shareholders' equity, includes amounts both payable currently and deferred for payment in future periods...

  • Page 79
    ... and EITF 00-23, "Issues Related to the Accounting for Stock Compensation under APB No. 25 and FIN 44," there is no accounting consequence for changes made to the exercise price and the number of shares of a fixed stock option or award as a direct result of the special, non-recurring dividend. F-30

  • Page 80
    ... for the period ended December 31, 2003. Stock Units At December 31, 2005, 2004 and 2003, we had 206,630, 464,879 and 427,475 stock units, respectively, issuable under our Directors' Deferred Fee Equity Plan and Non-Employee Directors' Retirement Plan. These securities have not been included in the...

  • Page 81
    ... telecommunications services, principally to businesses. ELI frequently obtains the "last mile" access to customers through arrangements with the applicable ILEC. As permitted by SFAS No. 131, we have utilized the aggregation criteria in combining our markets because all of our Frontier properties...

  • Page 82
    CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements ($ in thousands) Frontier For the year ended December 31, 2004 ELI Electric Total Segments Revenue...Depreciation and Amortization ...Management Succession and Strategic Alternatives Expenses...Operating ...

  • Page 83
    ...000. In June 2005, the Company sold for cash its interests in certain key man life insurance policies on the lives of Leonard Tow, our former Chairman and Chief Executive Officer, and his wife, a former director. The cash surrender value of the policies purchased by Dr. Tow totaled approximately $24...

  • Page 84
    ... include the following: discount rates, expected long-term rate of return on plan assets, future compensation increases, employee turnover, healthcare cost trend rates, expected retirement age, optional form of benefit and mortality. We review these assumptions for changes annually with its outside...

  • Page 85
    ... thousands) 2005 2004 Change in benefit obligation Benefit obligation at beginning of year ...Service cost ...Interest cost ...Actuarial loss ...Benefits paid ...Benefit obligation at end of year ...Change in plan assets Fair value of plan assets at beginning of year ...Actual return on plan assets...

  • Page 86
    ...,202,000 at December 31, 2005 and 2004, respectively. Assumptions used in the computation of pension and postretirement benefits other than pension costs/year-end benefit obligations were as follows: 2005 2004 Discount rate ...Expected long-term rate of return on plan assets...Rate of increase in...

  • Page 87
    ... which will be amortized as a reduction of retiree medical expense over the average remaining service life. ($ in thousands) 2005 2004 Change in benefit obligation Benefit obligation at beginning of year ...Service cost ...Interest cost ...Plan participants' contributions ...Actuarial (gain) loss...

  • Page 88
    ... benefit. The impact of the federal subsidy has been incorporated in the December 31, 2005 measurement date. 401(k) Savings Plans We sponsor an employee retirement savings plan under section 401(k) of the Internal Revenue Code. The Plan covers substantially all full-time employees. Under the Plan...

  • Page 89
    ... telephone companies. The complaint against Citibank, for which it seeks indemnification, alleges that the seller improperly used a portion of the proceeds from the Frontier transaction to pay off the Citibank credit agreement, thereby defrauding certain debt holders of Global Crossing North America...

  • Page 90
    ... payments for obligations under our noncancelable long distance contracts and service agreements are as follows: Year ($ in thousands) ILEC / ELI 2006 ...2007 ...2008 ...2009 ...2010 ...thereafter ...Total ... $ 30,619 18,337 11,017 10,244 1,052 5,115 $ 76,384 We sold all of our utility businesses...

  • Page 91
    ...) CNA ...State of New York ...ELI projects...Total... $ 19,404 2,993 50 $ 22,447 CNA serves as our agent with respect to general liability claims (auto, workers compensation and other insured perils of the Company). As our agent, they administer all claims and make payments for claims on our...

  • Page 92
    ... of Independent Registered Public Accounting Firm The Board of Directors and Shareholders Citizens Communications Company: Under date of March 1, 2006, we reported separately on the consolidated balance sheets of Citizens Communications Company and subsidiaries as of December 31, 2005 and 2004, and...

  • Page 93
    ... II CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES Valuation and Qualifying Accounts ($ In thousands) Additions Balance at beginning of period Charged to costs and expenses Charged to other accountsRevenue Accounts Deductions Balance at End of Period Allowance for doubtful accounts 2003...

  • Page 94
    ... AGENT Illinois Stock Transfer Company 209 West Jackson Boulevard, Suite 903 Chicago, IL 60606-6905 Tel: 800-757-5755 or 312-427-2953 Fax: 312-427-2879 AUDITORS KPMG LLP 3001 Summer Street Stamford, CT 06905 The common stock is listed on the New York Stock Exchange and trades under the symbol...

  • Page 95
    OUR MISSION To be the leader in providing communications services to residential and business customers in our markets OUR VALUES Put the customer first Treat one another with respect Keep our commitments; be accountable Be ethical in all of our dealings Take the initiative Be team players Be ...

  • Page 96
    Citizens Communications Company Three High Ridge Park Stamford, CT 06905-1390 203-614-5600