FairPoint Communications 2004 Annual Report Download - page 44

$7.7 million during 2003. During the twelve months ended December 31, 2004 and 2003, we recorded a reduction to our liability associated
with the discontinuation of our competitive local exchange carrier operations of $0.7 million and $0.3 million, respectively. This was mainly
attributable to excise tax refunds received from the Internal Revenue Service as well as a reduction in liabilities associated with potential
property tax payments.
 Net loss attributable to common stockholders for the year ended December 31, 2004 was $23.7 million. Our 2003
net loss attributable to common shareholders was $4.3 million after giving effect to $8.9 million in dividends and accretion related to our
series A preferred stock and the repurchase of our series A preferred stock at a discount of $2.9 million. The difference between 2004 and
2003 is a result of the factors discussed above.
Year Ended December 31, 2003 Compared with Year Ended December 31, 2002
Revenues
 Revenues increased $0.6 million to $231.4 million in 2003 compared to $230.8 million in 2002. Of this increase,
$0.7 million was attributable to the Maine acquisition and $1.5 million in revenues from our existing operations. This was offset by a
decrease to revenues of $1.6 million from our wholesale long distance company. We derived our revenues from the following sources:
 Local calling service revenues increased $2.1 million from $54.0 million in 2002 to $56.1 million in 2003.
Despite a 0.5% decline in net voice access lines, revenues from our existing operations increased $1.8 million due to increases in local
calling features and local interconnection revenues. The remaining increase in local calling service revenues of $0.3 million was attributable
to the Maine acquisition.
 Universal Service Fund high cost loop payments decreased $3.5 million to
$18.9 million in 2003 from $22.4 million in 2002. Our existing operations accounted for all of this decrease. The support from the high cost
loop fund is associated with historical expense levels of our companies that exceed the national average cost per loop. The historical
expenses occur two years prior to the receipt of the Universal Service Fund revenues. Historical expenses related to a performance share
plan paid in 2000 by an acquired company resulted in Universal Service Fund payments in 2002 which did not recur in 2003. In addition to
this decrease, the Universal Service Fund payments declined due to increases in the national average cost per loop.
 Interstate access revenues increased $0.8 million from $65.8 million in 2002 to $66.6 million in 2003. Our
existing operations accounted for $0.5 million of this increase due to operating expense increases that resulted in higher interstate revenue
requirements and $0.3 million was attributable to the Maine acquisition.
 Intrastate access revenues increased slightly from $43.8 million in 2002 to $44.0 million in 2003. This slight
increase was attributable to the Maine acquisition. While consolidated access revenues were relatively flat, lower access rates in a few of the
states in which we operate were generally offset by higher minutes of use in other states in which we operate.
 Long distance services revenues decreased $1.4 million from $16.8 million in 2002 to $15.4 million in
2003. An approximately $0.2 million increase was attributable to our existing rural local exchange carrier operations. Carrier Services
revenues decreased by $1.6 million as a result of rate increases from its underlying toll carriers, which resulted in the loss of wholesale
customers by Carrier Services.
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