Earthlink 2006 Annual Report Download - page 68

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EARTHLINK, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
The accompanying notes are an integral part of these consolidated financial statements.
67
Year Ended December 31,
2004
2005
2006
(in thousands, except per share data)
Revenues
$
1,382,202
$
1,290,072
$
1,301,267
Operating costs and expenses:
Telecommunications service and equipment costs
431,162
366,654
424,425
Sales incentives
10,040
8,973
10,916
Total cost of revenues
441,202
375,627
435,341
Sales and marketing
417,250
389,522
389,079
Operations and customer support
255,192
233,907
260,941
General and administrative
105,043
112,173
128,479
Amortization of intangible assets
24,363
12,267
11,902
Facility exit and restructuring costs
28,394
2,080
(117
)
Total operating costs and expenses
1,271,444
1,125,576
1,225,625
Income from operations
110,758
164,496
75,642
Net losses of equity affiliate
—
(
15,608
)
(84,782
)
Gain (loss) on investments in other companies, net
(1,420
)
2,877
377
Interest income and other, net
6,131
13,491
14,636
Income before income taxes
115,469
165,256
5,873
Provision for income taxes
4,460
22,476
886
Net income
$
111,009
$
142,780
$
4,987
Basic net income per share
$
0.72
$
1.04
$
0.04
Diluted net income per share
$
0.70
$
1.02
$
0.04
Basic weighted average common shares outstanding
154,233
137,080
128,790
Diluted weighted average common shares outstanding
157,815
139,950
130,583