FairPoint Communications 2005 Annual Report Download - page 97

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Company reimbursed the equity investors $123,000 and $21,000 for the years ended December 31, 2004 and 2003, respectively, for travel and related
expenses. In connection with our initial public offering, we terminated these agreements and paid a transaction fee of $8.4 million to one of these equity
advisors.
In 2004, a law firm in which a partner of such law firm was a director of the Company through February 8, 2005. In 2005, no fees were paid by the
Company to this law firm prior to February 8, 2005. Total fees paid to this law firm in 2005 were $1.4 million. In 2004, the law firm was paid $3.5 million,
of which $0.1 million was for general counsel services and $3.4 million was for services related to financing and equity offering costs. In 2003, this same law
firm was paid $1.3 million, of which $0.4 million was for general counsel services and $0.9 million was for services related to financings.
A law firm, in which a partner of such law firm is the husband of an executive officer, was paid $303,000, $4,000 and $127,000 for the years ended
December 31, 2005, 2004, and 2003, respectively, for legal services and expenses.
All payments made by the Company for general services and unsuccessful acquisition bids are classified within operating expenses on the consolidated
statements of operations. All payments made for services related to financings have been recorded as debt or equity issue costs. All payments made for services
related to successful acquisition bids have been capitalized as direct costs of the acquisitions. All services related to the restructure and discontinuance of the
competitive communications operations have been classified in discontinued operations.
On July 31, 2003, the Company loaned $1.0 million to two employees that are the former owners of Fremont. These loans were settled on January 2,
2005.
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   
   
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2005:
Revenue $61,665 65,206 66,038 69,934
Income from continuing operations 11,042 5,603 4,189 7,716
Net income 11,042 5,603 4,189 8,096
Basic and diluted earnings per share from continuing operations 0.46 0.16 0.12 0.22
Basic and diluted earnings per share 0.46 0.16 0.12 0.23
2004:
Revenue $60,985 62,416 65,437 63,807
Loss from continuing operations (4,608)(4,765) (4,225) (10,755)
Net loss (4,608)(4,094) (4,225) (10,755)
Basic and diluted loss from continuing operations per share (0.49)(0.50)(0.45)(1.13)
Basic and diluted loss per share (0.49)(0.43)(0.45)(1.13)
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