FairPoint Communications 2006 Annual Report Download - page 35
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Please find page 35 of the 2006 FairPoint Communications annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
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December 31, 2006. This graph assumes that $100 was invested on January 1, 2006 in our common stock and in each of the market index and the peer group
index at the closing price for the Company and the other companies, and that all cash distributions were reinvested. Our common stock price performance
shown on the graph is not indicative of future price performance.
Our peer group consists of the following companies: CenturyTel, Inc., Citizens Communications Company, Consolidated Communications
Holdings, Inc., Iowa Telecommunications Services, Inc. and Windstream Corporation.
General
Our board of directors has adopted a dividend policy which reflects an intention that a substantial portion of the cash generated by our business in excess
of operating needs, interest and principal payments on our indebtedness, dividends on our future senior classes of capital stock, if any, capital expenditures,
taxes and future reserves, if any, would in general be distributed as regular quarterly dividend payments to the holders of our common stock, rather than
retained by us and used for other purposes, including to finance growth opportunities. This policy reflects our judgment that our stockholders would be better
served if we distributed to them such substantial portion of the excess cash generated by our business instead of retaining it in our business. However, our
stockholders may not receive any dividends as a result of the following factors:
· nothing requires us to pay dividends;
· while our current dividend policy contemplates the distribution of a substantial portion of our cash in excess of operating needs, interest and principal
payments on our indebtedness, dividends on our future senior classes of capital stock, if any, capital expenditures, taxes and future reserves, if any,
this policy could be modified or revoked by our board of directors at any time;
· even if our dividend policy was not modified or revoked, the actual amount of dividends distributed under this policy and the decision to make any
distributions are entirely at the discretion of our board of directors;
· the amount of dividends distributed is subject to covenant restrictions under our credit facility;
· the amount of dividends distributed is subject to restrictions under Delaware law;
· our stockholders have no contractual or other legal right to receive dividends; and
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