XO Communications 2009 Annual Report Download - page 40

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Results of Operations
The following tables contain certain data from our Consolidated Statements of Operations for the years ended
December 31, 2009, 2008 and 2007 (dollars in thousands):
2009
%of
Consolidated
Revenue 2008
%of
Consolidated
Revenue Dollars Percent
Change
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,521,288 100.0% $1,477,610 100.0% $ 43,678 3.0%
Cost and expenses
Cost of service* . . . . . . . . . . . . . . . . . . . . . . 879,979 57.8 871,445 58.9 8,534 1.0%
Selling, general and administrative . . . . . . . . . 489,427 32.2 497,616 33.7 (8,189) (1.6)%
Depreciation and amortization . . . . . . . . . . . . 180,144 11.8 189,228 12.8 (9,084) (4.8)%
Impairment of LMDS licenses . . . . . . . . . . . . 8,282 0.5 — 0.0 8,282 NM
Loss on disposal of assets . . . . . . . . . . . . . . . 10,688 0.7 4,134 0.3 6,554 158.5%
Total cost and expenses . . . . . . . . . . . . . . . 1,568,520 103.0 1,562,423 105.7 6,097 0.4%
Loss from operations . . . . . . . . . . . . . . . . . . . . (47,232) (3.1) (84,813) (5.7) 37,581 (44.3)%
Interest income . . . . . . . . . . . . . . . . . . . . . . . . 11,844 0.8 7,398 0.5 4,446 60.1%
Investment gain, net . . . . . . . . . . . . . . . . . . . . . 59,986 3.9 19,187 1.3 40,799 212.6%
Interest expense, net . . . . . . . . . . . . . . . . . . . . . (1,568) (0.1) (21,322) (1.5) 19,754 (92.6)%
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . — NM 257 NM (257) (100.0)%
Net income (loss) before income taxes . . . . . . . . 23,030 1.5 (79,293) (5.4) 102,323 (129.0)%
Income tax benefit (expense) . . . . . . . . . . . . . . . (1,195) (0.1) 4,012 0.3 (5,207) (129.8)%
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . 21,835 1.4 (75,281) (5.1) 97,116 (129.0)%
Preferred stock accretion . . . . . . . . . . . . . . . . . . (79,642) (5.2) (41,794) (2.8) (37,848) 90.6%
Net loss allocable to common shareholders . . . . . $ (57,807) (3.8)% $ (117,075) (7.9)% $ 59,268 (50.6)%
2008
%of
Consolidated
Revenue 2007
%of
Consolidated
Revenue Dollars Percent
Change
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,477,610 100.0% $1,428,665 100.0% $ 48,945 3.4%
Cost and expenses
Cost of service* . . . . . . . . . . . . . . . . . . . . . . . . 871,445 58.9 815,012 57.0 56,433 6.9%
Selling, general and administrative . . . . . . . . . . . 497,616 33.7 508,901 35.6 (11,285) (2.2)%
Depreciation and amortization . . . . . . . . . . . . . . 189,228 12.8 206,953 14.5 (17,725) (8.6)%
Loss on disposal of assets . . . . . . . . . . . . . . . . . 4,134 0.3 7,936 0.6 (3,802) (47.9)%
Total cost and expenses . . . . . . . . . . . . . . . . . 1,562,423 105.7 1,538,802 107.7 23,621 1.5%
Loss from operations . . . . . . . . . . . . . . . . . . . . . . (84,813) (5.7) (110,137) (7.7) 25,324 (23.0)%
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . 7,398 0.5 8,182 0.6 (784) (9.6)%
Investment gain, net . . . . . . . . . . . . . . . . . . . . . . . 19,187 1.3 20,863 1.4 (1,676) (8.0)%
Interest expense, net. . . . . . . . . . . . . . . . . . . . . . . (21,322) (1.5) (37,681) (2.6) 16,359 (43.4)%
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . 257 NM 2,205 0.2 (1,948) (88.3)%
Net loss before income taxes. . . . . . . . . . . . . . . . . (79,293) (5.4) (116,568) (8.1) 37,275 (32.0)%
Income tax benefit (expense). . . . . . . . . . . . . . . . . 4,012 0.3 (787) (0.1) 4,799 (609.8)%
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (75,281) (5.1) (117,355) (8.2) 42,074 (35.9)%
Preferred stock accretion . . . . . . . . . . . . . . . . . . . (41,794) (2.8) (14,269) (1.0) (27,525) 192.9%
Net loss allocable to common shareholders . . . . . . . $ (117,075) (7.9)% $ (131,624) (9.2)% $ 14,549 (11.1)%
* Exclusive of depreciation and amortization expense
NM — not meaningful
36