FairPoint Communications 2005 Annual Report Download - page 36

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The following financial information should be read in conjunction with “Item 7. Management’s Discussion and Analysis of Financial Condition and
Results of Operations” and our consolidated financial statements and notes thereto contained elsewhere in this Annual Report. Amounts are in thousands,
except access lines and per share data.
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    
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Revenues $262,843 $252,645 $231,432 $230,819 $230,176
Operating expenses:
Operating expenses 141,075 128,755 111,188 110,265 115,763
Depreciation and amortization(1) 52,390 50,287 48,089 46,310 55,081
Stock based compensation expense 2,350 49 15 924 1,337
Total operating expenses 195,815 179,091 159,292 157,499 172,181
Income from operations 67,028 73,554 72,140 73,320 57,995
Interest expense(2) (46,416)(104,315)(90,224)(69,520)(76,314)
Other income (expense), net(3) (75,156)6,926 9,600 (11,974)(6,670)
Loss from continuing operations before income taxes (54,544)(23,835)(8,484)(8,174)(24,989)
Income tax (expense) benefit(4) 83,096 (516)236 (518)(431)
Minority interest in income of subsidiaries (2)(2)(2)(2)(2)
Income (loss) from continuing operations 28,550 (24,353)(8,250)(8,694)(25,422)
Income (loss) from discontinued operations 380 671 9,921 21,933 (186,178)
Net income (loss) 28,930 (23,682)1,671 13,239 (211,600)
Redeemable preferred stock dividends and accretion(2) — — (8,892)(11,918)—
Gain on repurchase of redeemable preferred stock — — 2,905 — —
Net income (loss) attributable to common shareholders $28,930 $(23,682)$(4,316)$1,321 $(211,600)
Basic shares outstanding(5) 31,927 9,468 9,483 9,498 9,499
Diluted shares outstanding(5) 31,957 9,468 9,483 9,498 9,499
Basic and diluted earnings (loss) from continuing operations per share(5) $0.89 $(2.57)$(1.50)$(2.17)$(2.68)
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Capital expenditures $28,099 $36,492 $33,595 $38,803 $43,175
Access line equivalents(6) 288,899 271,150 264,308 248,581 247,862
Residential access lines 188,206 189,668 196,145 189,803 191,570
Business access lines 55,410 49,606 50,226 51,810 53,056
High Speed Data subscribers 45,283 31,876 17,937 6,968 3,236
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Net cash provided by operating activities of continuing operations $ 61,682 $45,975 $32,834 $55,632 $35,717
Net cash used in investing activities of continuing operations (42,807)(20,986)(54,010)(30,258)(57,161)
Net cash provided by (used in) financing activities of continuing
operations (16,647)(23,966)(1,976)(12,546)101,234
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Cash $ 5,083 $3,595 $5,603 $5,394 $2,919
Property, plant and equipment, net 242,617 252,262 266,706 271,690 278,277
Total assets 908,139 819,136 843,068 829,253 875,015
Total long term debt 607,425 810,432 825,560 804,190 907,602
Preferred shares subject to mandatory redemption(7) —116,880 96,699 90,307 —
Total stockholders’ equity (deficit) 246,848 (172,952)(147,953)(146,150)(149,510)
(1) On January 1, 2002, we adopted SFAS No. 142, “Goodwill and Other Intangible Assets.” Pursuant to the requirements of SFAS No. 142, we ceased amortizing goodwill beginning
January 1, 2002, and instead test for goodwill impairment annually. Amortization expense for goodwill and equity method goodwill was $11,962 in 2001. Depreciation and
amortization excludes amortization of debt issue costs.
(2) Interest expense includes amortization of debt issue costs aggregating $1,859, $4,603, $4,171, $3,664 and $4,018 for the fiscal years ended December 31, 2005, 2004, 2003,
2002 and 2001. We prospectively adopted the provisions of SFAS No. 150, “Accounting for Certain Financial Instruments with Characteristics of Liabilities and Equity,” effective
July 1, 2003. SFAS No. 150 requires us to classify as a long-term liability our series A preferred stock and to reclassify dividends and accretion from
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