FairPoint Communications 2007 Annual Report Download - page 50

Table of Contents
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    
Net cash used in financing activities of continuing
operations (40,505) (54,668) (16,647) (23,966) (1,976)

Cash $ 2,942 $ 3,805 $ 5,083 $ 3,595 $ 5,603
Property, plant and equipment, net 268,890 246,264 242,617 252,262 266,706
Total assets 896,467 885,230 908,139 819,136 843,068
Total long term debt 624,972 607,986 607,425 810,432 825,560
Preferred shares subject to mandatory redemption(6) — — — 116,880 96,699
Total stockholders’ equity (deficit) 161,898 224,719 246,848 (172,952) (147,953)
(1) Operating expenses for 2007 and 2006 include $52.1 million and $2.4 million, respectively, of expenses related to the merger.
(2) Interest expense includes amortization of debt issue costs aggregating $1.5 million, $1.6 million, $1.9 million, $4.6 million and
$4.2 million for the fiscal years ended December 31, 2007, 2006, 2005, 2004 and 2003. We prospectively adopted the provisions
of Statement of Financial Accounting Standards (SFAS) No. 150, “Accounting for Certain Financial Instruments with
Characteristics of Liabilities and Equity,” effective July 1, 2003. SFAS No. 150 required us to classify as a long-term liability our
series A preferred stock and to reclassify dividends and accretion from the series A preferred stock as interest expense. Such stock
was described as “Preferred Shares Subject to Mandatory Redemption” in the consolidated balance sheet and dividends and
accretion on these shares are included in pre-tax income prior to repurchase in 2005 whereas previously they were presented as a
reduction to equity (a dividend), and, therefore, a reduction of net income available to common stockholders. For the years ended
December 31, 2005, 2004 and 2003, interest expense includes $2.4 million, $20.2 million and $9.0 million, respectively, related to
dividends and accretion on preferred shares subject to mandatory redemption.
(3) In 2007, other income (expense) includes a gain on sale of investments of $49.5 million resulting primarily from the sale of our
interests in the Orange County Poughkeepsie Limited Partnership and loss on derivative instruments of $17.2 million. In 2006,
other income (expense) includes gains on sales of investments and other assets of $14.7 million. In 2005, other income (expense)
includes an $87.7 million loss on early retirement of debt and loss on repurchase of series A preferred stock. In 2004, other income
(expense) includes a $6.0 million loss for the write-off of debt issuance and offering costs associated with an abandoned offering
of Income Deposit Securities. In 2003, other income (expense) includes a $3.5 million gain on the extinguishment of debt and a
$5.0 million loss for the write-off of debt issue costs related to this extinguishment of debt.
(4) In 2005, we recorded an income tax benefit of $83.1 million which is primarily the result of the recognition of deferred tax benefits
of $66.0 million from the reversal of the deferred tax valuation allowance that resulted from our expectation of generating future
taxable income following the recapitalization that occurred as part of our initial public offering in February 2005.
(5) Total access line equivalents includes voice access lines and high speed data lines, which include DSL lines, wireless broadband
and cable modem.
(6) In connection with our initial public offering, we repurchased all of our series A preferred stock from the holders thereof.
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The following discussion should be read in conjunction with our financial statements and the notes thereto included elsewhere in this
Annual Report. The following discussion includes certain forward-looking statements. For a discussion of important factors, including
the continuing development of our business,
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