Earthlink 2006 Annual Report Download - page 43

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(e)
Average subscribers or accounts is calculated by averaging the ending monthly subscribers or accounts for the thirteen months preceding
and including the end of the year.
(f)
ARPU represents the average monthly revenue per user (subscriber). ARPU is computed by dividing average monthly revenue for the
period by the average number of subscribers for the period. Average monthly revenue used to calculate ARPU includes recurring service
revenue as well as nonrecurring revenues associated with equipment and other charges associated with initiating or discontinuing services.
Results of Operations
The following table sets forth statement of operations data, cash flow data and employee data for the periods indicated:
*
denotes percentage is not meaningful or is not calculable
#
Represents full-time equivalents
42
Year Ended December 31,
2005 vs. 2004
2006 vs. 2005
2004
2005
2006
$ Change
% Change
$ Change
% Change
(dollars in thousands)
Statement of operations data:
Revenues:
Narrowband access
$
874,010
$
742,757
$
617,963
$
(131,253
)
-
15
%
$
(124,794
)
-
17
%
Broadband access
419,411
441,736
559,681
22,325
5
%
117,945
27
%
Advertising and other value
-
added services
41,234
64,909
88,140
23,675
57
%
23,231
36
%
Web hosting
47,547
40,670
35,483
(6,877
)
-
14
%
(5,187
)
-
13
%
Total revenues
1,382,202
1,290,072
1,301,267
(92,130
)
-
7
%
11,195
1
%
Operating costs and expenses:
Telecommunications service and quipment
costs
431,162
366,654
424,425
(64,508
)
-
15
%
57,771
16
%
Sales incentives
10,040
8,973
10,916
(1,067
)
-
11
%
1,943
22
%
Total cost of revenues
441,202
375,627
435,341
(65,575
)
-
15
%
59,714
16
%
Sales and marketing
417,250
389,522
389,079
(27,728
)
-
7
%
(443
)
0
%
Operations and customer support
255,192
233,907
260,941
(21,285
)
-
8
%
27,034
12
%
General and administrative
105,043
112,173
128,479
7,130
7
%
16,306
15
%
Amortization of intangible assets
24,363
12,267
11,902
(12,096
)
-
50
%
(365
)
-
3
%
Facility exit and restructuring costs
28,394
2,080
(117
)
(26,314
)
-
93
%
(2,197
)
-
106
%
Total operating costs and expenses
1,271,444
1,125,576
1,225,625
(145,868
)
-
11
%
100,049
9
%
Income from operations
110,758
164,496
75,642
53,738
49
%
(88,854
)
-
54
%
Net losses of equity affiliate
—
(
15,608
)
(84,782
)
(15,608
)
*
(69,174
)
*
Gain (loss) on investments in other companies,
net
(1,420
)
2,877
377
4,297
*
(2,500
)
-
87
%
Interest income and other, net
6,131
13,491
14,636
7,360
120
%
1,145
8
%
Income before income taxes
115,469
165,256
5,873
49,787
43
%
(159,383
)
-
96
%
Provision for income taxes
4,460
22,476
886
18,016
*
(21,590
)
-
96
%
Net income
$
111,009
$
142,780
$
4,987
$
31,771
29
%
$
(137,793
)
-
97
%
Cash flow data:
Cash provided by operating activities
$
188,152
$
188,704
$
115,249
Cash used in investing activities
$
(69,070
)
$
(65,081
)
$
(283,064
)
Cash (used in) provided by financing activities
$
(108,912
)
$
(169,239
)
$
152,890
Employee data:
Number of employees at year end (#)
2,067
1,732
2,210