FairPoint Communications 2006 Annual Report Download - page 43

of Germantown, Ohio, serving approximately 4,400 access line equivalents, as of the date of acquisition.
· On August 17, 2006, we completed the purchase of Unite Communications Systems, Inc., or Unite, for approximately $11.5 million (or $11.4
million net of cash acquired). Unite owns ExOp of Missouri, Inc., which is a facilities-based voice, data and video service provider located outside of
Kansas City, Missouri. Unite served approximately 4,200 access lines in Kearney and Platte City, Missouri, approximately 50 miles north of the
Cass County service territory, as of the date of acquisition.
· On July 26, 2006, we completed the purchase of the assets of Cass County Telephone Company Limited Partnership and LEC Long Distance, Inc.,
or Cass County, for approximately $33.0 million (or $28.7 million net of liabilities assumed), subject to adjustment. Cass County served
approximately 8,600 access line equivalents, as of the date of acquisition, in Missouri and Kansas.
· On May 2, 2005, we completed the acquisition of Berkshire Telephone Corporation, or Berkshire, for a purchase price of approximately
$20.3 million (or $16.4 million net of cash acquired). Berkshire is an independent local exchange carrier that provides voice communication, cable
and internet services to over 7,200 access line equivalents, as of the date of acquisition, serving five communities in New York State. Berkshire’s
communities of service are adjacent to those of Taconic Telephone Corp., one of the Company’s subsidiaries.
· On September 1, 2005, we completed the acquisition of Bentleyville Communications Corporation, or Bentleyville, for a purchase price of
approximately $11.0 million (or $9.3 million net of cash acquired). Bentleyville, which had approximately 3,600 access line equivalents as of the date
of acquisition, provides telecommunications, cable and internet services to rural areas of Southwestern Pennsylvania that are adjacent to our existing
operations in Pennsylvania.
· During 2004, we did not complete any acquisitions.
In the normal course of business, we evaluate selective acquisitions and may enter into non-binding letters of intent with respect to such acquisitions,
subject to customary conditions. Management currently intends to fund future acquisitions through the use of the revolving facility of our credit facility or
additional debt financing or the issuance of additional shares of our common stock. However, our substantial amount of indebtedness and our dividend
payments could restrict our ability to obtain such financing on acceptable terms or at all.
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In November 2001, we decided to discontinue the competitive local exchange carrier operations of Carrier Services. This decision was a proactive
response to the deterioration in the capital markets, the general slow-down of the economy and the slower-than-expected growth in Carrier Services’ competitive
local exchange carrier operations. Carrier Services now provides wholesale long distance services and support to our rural local exchange carriers and
communications providers not affiliated with us. These services allow such companies to operate their own long distance communication services and sell
such services to their respective customers. Our long distance business is included as part of continuing operations in the accompanying financial statements.
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