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Table of Contents
EARTHLINK, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
The accompanying notes are an integral part of these consolidated financial statements.
65
Year Ended December 31,
2007
2008
2009
(in thousands, except per share data)
Revenues
$
1,215,994
$
955,577
$
723,729
Operating costs and expenses:
Cost of revenues
442,697
360,920
273,755
Sales and marketing
291,105
98,212
59,474
Operations and customer support
221,443
136,797
98,435
General and administrative
128,412
93,878
72,398
Amortization of intangible assets
14,672
13,349
7,749
Impairment of goodwill and intangible assets
4,250
78,672
24,145
Facility exit and restructuring costs
65,381
9,142
5,615
Total operating costs and expenses
1,167,960
790,970
541,571
Income from operations
48,034
164,607
182,158
Net losses of equity affiliate
(111,295
)
—
—
Gain (loss) on investments, net
(5,585
)
2,708
(1,321
)
Interest income (expense) and other, net
2,824
(12,409
)
(19,804
)
Income (loss) from continuing operations before income
taxes
(66,022
)
154,906
161,033
Income tax benefit
1,227
32,184
126,085
Income (loss) from continuing operations
(64,795
)
187,090
287,118
Loss from discontinued operations, net of tax
(80,302
)
(8,506
)
—
Net income (loss)
$
(145,097
)
$
178,584
$
287,118
Basic net income (loss) per share
Continuing operations
$
(0.53
)
$
1.71
$
2.69
Discontinued operations
(0.66
)
(0.08
)
—
Basic net income (loss) per share
$
(1.19
)
$
1.63
$
2.69
Basic weighted average common shares outstanding
121,633
109,531
106,909
Diluted net income (loss) per share
Continuing operations
$
(0.53
)
$
1.68
$
2.66
Discontinued operations
(0.66
)
(0.08
)
—
Diluted net income (loss) per share
$
(1.19
)
$
1.61
$
2.66
Diluted weighted average common shares outstanding
121,633
111,051
108,084
Dividends declared per common share
$
—
$
—
$
0.28