FRP » Topics » Operational Highlights

This excerpt taken from the FRP 8-K filed May 8, 2009.

Operational Highlights

·                 Operational trends continue to improve following the early February systems cutover for the northern New England operations. Bill cycles are current and processing on a normal schedule; provisioning of new orders has increased steadily, although a sizable backlog remains; and call center volumes are nearly at pre-cutover levels.

 

·                 The rate of decline in access line equivalents in the northern New England operations continued to improve as access lines declined by 1.3% in the first quarter of 2009 (or 1.8% normalizing for a one-time adjustment to access lines identified during the systems cutover) compared with a decline of 2.7% in the fourth quarter of 2008.

 

·                 Total high-speed data (HSD) subscribers increased by 1.9% (or 1.3% normalizing for a one-time cutover related adjustment) in the first quarter compared with a 0.4% increase in the final quarter of 2008. HSD subscribers reached nearly 301,000 and penetration increased to 21.5% on a consolidated basis as of March 31, 2009.

 

·                 Revenue totaled $311.6 million for the first quarter of 2009, a decline of 2.4% compared with $319.3 million in the fourth quarter of 2008.

 

·                 Adjusted EBITDA (a non-GAAP financial measure as defined herein) totaled $123.2 million for the first quarter of 2009, compared with $137.5 million in the fourth quarter of 2008. For purposes of the covenants contained in the Company’s credit facility, Adjusted EBITDA totaled $125.1 million in the first quarter of 2009.

 

1



 

“During the first quarter of 2009, we completed an unprecedented cutover to our new systems for the northern New England operations,” stated Gene Johnson, Chairman and CEO of FairPoint. “While the systems cutover has resulted in a disruption to our operations and has negatively impacted or inconvenienced many of our customers, over the past several months, measurable progress has been achieved in key areas and we expect to largely return to a normal level of operations by the end of the second quarter. After some initial delay, billing cycles are up to date and are now being processed on a normal schedule, provisioning of new orders has increased steadily and we are making progress in reducing the initial cutover driven backlog. Also, call volumes into our customer service centers have declined significantly and are nearly at pre-cutover levels,” Johnson continued.

 

“Our financial performance was negatively impacted during the first quarter as we continued to incur substantial cutover-related costs and assumed responsibility for all services previously performed by Verizon under the transition services agreement. Looking ahead, we expect to continue to incur cutover related costs, at a declining rate, during the second quarter as we strive to return to normal operating levels. We continue to expect improved results in the second half of the year as we turn our focus to growing revenue and improving our cost structure,” concluded Johnson.

 

This excerpt taken from the FRP 8-K filed Mar 4, 2008.

Operational highlights

 

·                  HSD penetration increased to 28.4% of voice access lines at December 31, 2007 compared to 23.6% at December 31, 2006.

 

·                  Interstate long distance penetration at December 31, 2007 increased to 54.4% of voice access lines compared to 45.2% at December 31, 2006.

 

·                  Total access line equivalents were 305,777 as of December 31, 2007.  Total access line equivalents as of December 31, 2007 decreased 1.7% compared with December 31, 2006 and decreased 1.6% compared with December 31, 2006 including only lines owned for the full year.

 

·                  Voice access lines, excluding lines acquired or disposed of in the last twelve months, as of December 31, 2007 decreased 5.2% compared to December 31, 2006.

 

 



 

This excerpt taken from the FRP 8-K filed Nov 6, 2007.

Operational highlights

                  HSD penetration increased to 27.6% of voice access lines at September 30, 2007 compared to 22.7% at September 30, 2006.

                  HSD average revenue per subscriber (“ARPU”) was $41.57 for the third quarter of 2007, consistent with previous quarters.

                  Total HSD subscribers increased by 1,846 in the third quarter of 2007 to 66,978 at September 30, 2007.

                  Interstate long distance penetration at September 30, 2007 increased to 53.7% of voice access lines compared to 45.6% at September 30, 2006, primarily as a result of the Company’s continuing efforts to sell a voice bundled offering consisting of local voice, long distance and enhanced calling services.

                  Total access line equivalents were 309,857 as of September 30, 2007.  Total access line equivalents as of September 30, 2007 increased 0.3% compared with September 30, 2006 and decreased 0.9% compared with September 30, 2006 including only lines owned for the full year.

                  Voice access lines, excluding lines acquired or disposed of in the last twelve months, as of September 30, 2007 decreased 4.8% compared to September 30, 2006.

 

 

Page 3 of 8



 

This excerpt taken from the FRP 8-K filed Aug 16, 2007.

Operational highlights

·                  Total HSD subscribers increased by 3,318 in the second quarter of 2007 to 65,132 at June 30, 2007.

·                  HSD penetration increased to 26.3% of voice access lines at June 30, 2007 compared to 21.2% at June 30, 2006.

·                  HSD average revenue per subscriber (“ARPU”) was $40.28 for the second quarter of 2007, consistent with previous quarters.

·                  Interstate long distance penetration at June 30, 2007 increased to 52.4% of voice access lines compared to 46.8% at June 30, 2006, primarily as a result of the Company’s continuing efforts to sell a voice bundled offering consisting of local voice, long distance and enhanced calling services.

·                  Total access line equivalents were 312,494 as of June 30, 2007, representing an increase of more than 2,314 lines or 0.8% from March 31, 2007.  Total access line equivalents as of June 30, 2007 increased 6.4% compared with June 30, 2006 and decreased 0.2% compared with June 30, 2006 including only lines owned for the full year.

·                  Voice access lines, excluding lines acquired in the last twelve months, as of June 30, 2007 decreased 4.1% compared to June 30, 2006.

This excerpt taken from the FRP 8-K filed Aug 13, 2007.

Operational highlights

·                  Total HSD subscribers increased by 3,318 in the second quarter of 2007 to 65,132 at June 30, 2007.

·                  HSD penetration increased to 26.3% of voice access lines at June 30, 2007 compared to 21.2% at June 30, 2006.

·                  HSD average revenue per subscriber (“ARPU”) was $40.28 for the second quarter of 2007, consistent with previous quarters.

·                  Interstate long distance penetration at June 30, 2007 increased to 52.4% of voice access lines compared to 46.8% at June 30, 2006, primarily as a result of the Company’s continuing efforts to sell a voice bundled offering consisting of local voice, long distance and enhanced calling services.

·                  Total access line equivalents were 312,494 as of June 30, 2007, representing an increase of more than 2,314 lines or 0.8% from March 31, 2007.  Total access line equivalents as of June 30, 2007 increased 6.4% compared with June 30, 2006 and decreased 0.2% compared with June 30, 2006 including only lines owned for the full year.

·                  Voice access lines, excluding lines acquired in the last twelve months, as of June 30, 2007 decreased 4.1% compared to June 30, 2006.

This excerpt taken from the FRP 8-K filed May 7, 2007.
Operational highlights

Total HSD subscribers increased by 2,370 in the first quarter of 2007 to 61,814 at March 31, 2007.

HSD penetration increased to 24.9% of voice access lines at March 31, 2007 compared to 20.3% at March 31, 2006.

HSD average revenue per subscriber (“ARPU”) was $39.71 for the first quarter of 2007.

Interstate long distance penetration at March 31, 2007 increased to 50.4% of voice access lines compared to 45.2% at March 31, 2006, primarily as a result of the Company’s continuing efforts to sell a voice bundled offering consisting of local voice, long distance and enhanced calling services.

Total access line equivalents were 310,180 as of March 31, 2007, representing a decrease of less than 1,000 lines or 0.3% from December 31, 2006. Total access line equivalents as of March 31, 2007 increased 6.4% compared with March 31, 2006 and increased 0.1% compared with March 31, 2006 including only lines owned for the full year.

Voice access lines, excluding lines acquired in the last twelve months, as of March 31, 2007 decreased 3.8% compared to March 31, 2006.

This excerpt taken from the FRP 8-K filed Feb 23, 2007.
Operational highlights

Total HSD subscribers increased by 2,349 in the fourth quarter of 2006 to 59,444 at December 31, 2006. Excluding acquired lines, HSD subscribers increased by 1,635 in the fourth quarter of 2006.

HSD penetration increased to 23.6% of voice access lines compared to 18.6% at December 31, 2005.

HSD average revenue per subscriber (“ARPU”) was $42.02 for the fourth quarter of 2006. The Company’s quarterly HSD ARPU has remained consistent over the past year.

Interstate long distance penetration as of December 31, 2006 increased to 45.2% of voice access lines compared to 44.5% at the end of the fourth quarter of 2005, primarily as a result of the Company’s continuing efforts to sell a voice bundled offering consisting of local voice, long distance and enhanced calling services.

Total access line equivalents were 311,150 as of December 31, 2006, representing an increase of 2,292 or 0.7% from September 30, 2006. Total access line equivalents as of December 31, 2006

 

 

 


 

increased 7.4% compared to December 31, 2005 and increased 1.0% over the prior year including only lines owned for the full year.

Voice access lines, excluding lines acquired in the last twelve months, as of December 31, 2006 decreased 3.4% compared to December 31, 2005.

This excerpt taken from the FRP 8-K filed Nov 3, 2006.
Operational highlights

Total HSD subscribers increased by 5,668 in the third quarter of 2006 to 57,095 at September 30, 2006. Excluding acquired lines, HSD subscribers increased by 2,524 in the third quarter of 2006.

HSD penetration increased to 22.7% of voice access lines compared to 17.3% at September 30, 2005.

HSD average revenue per subscriber (“ARPU”) was $40.42 for the third quarter of 2006. The Company’s quarterly HSD ARPU has remained consistent over the past year.

Interstate long distance penetration as of September 30, 2006 increased to 45.6% of voice access lines compared to 42.3% at the end of the third quarter of 2005, primarily as a result of the Company’s continuing efforts to sell a voice bundled offering consisting of local voice, long distance and enhanced calling services.

Total access line equivalents were 308,858 as of September 30, 2006, representing an increase of 15,255 or 5.2% from June 30, 2006. Total access line equivalents as of September 30, 2006 increased 5.8% compared to September 30, 2005 and increased 1.0% including only lines owned for the full year.

Voice access lines, excluding lines acquired in the last twelve months, as of September 30, 2006 decreased 3.5% compared to September 30, 2005.

During the third quarter of 2006, the Company completed the conversion of all of its access lines billed on the ICMS platform to the MACC Customer Master platform (approximately 65% of the Company’s total access line equivalents). The conversion of the remaining companies is expected to be completed by early 2007. As previously announced, the total cost of the conversion is estimated to be approximately $4.5 million.

 

Page 3 of 6

 


 

This excerpt taken from the FRP 8-K filed Aug 3, 2006.

Operational highlights

·                  Total HSD subscribers increased by 2,186 in the second quarter of 2006 to 51,331 at June 30, 2006.  HSD penetration increased to 21.2% of voice access lines compared to 16.6% at June 30, 2005 and 18.6% at December 31, 2005.  Excluding the sale of certain wireless broadband subscribers in the second quarter, the Company added over 3,300 HSD subscribers in the second quarter of 2006.

·                  DSL average revenue per subscriber (“ARPU”) was $40.21 for the second quarter of 2006.  The Company’s quarterly DSL ARPU has remained fairly consistent over the past year.

·                  At the end of the second quarter of 2006, DSL penetration was 19.5% of voice access lines, compared to 15.2% at the end of the second quarter of last year.

·                  Interstate long distance penetration as of June 30, 2006 increased to 46.8% of voice access lines compared to 41.7% at the end of the second quarter of 2005 and 44.5% at December 31, 2005, primarily as a result of the Company’s continuing efforts to sell a voice bundled offering consisting of local voice, long distance and enhanced calling services.

·                  Total access line equivalents were 292,910 as of June 30, 2006, representing an increase of 2,228 or 0.8% from March 31, 2006.  Total access line equivalents as of June 30, 2006 increased 1.8% compared to June 30, 2005 and increased 0.9% including only lines owned for the full year.

·                  Voice access lines, excluding acquired lines in 2005, increased during the second quarter of 2006 by 105 to 232,301 compared to March 31, 2006.  Voice access lines, excluding acquired lines, as of June 30, 2006 decreased 3.3% compared to June 30, 2005.  The increase in access line losses compared to last year is primarily due to the previously disclosed non-pay disconnect issue in 2005.  As a result of this issue, the Company was not timely disconnecting customers for non-pay during the second quarter of last year.  This problem has been corrected and in 2006 the Company is disconnecting customers under normal operating procedures.

·                  The on-going MACC billing conversion is on plan.  The Company has completed the conversion of approximately 36% of the access lines billed on the ICMS platform to the MACC Customer Master platform.  The conversion of the remaining companies currently on the ICMS platform is expected to be completed by September 9, 2006 with the remainder of the companies expected to be converted by early 2007.  The total cost of the conversion is now estimated to be approximately $4.5 million, significantly below the original estimate of $5.5 million.

4




 

·                  In April 2006, the Company received proceeds of $26.9 million from the liquidation of the Rural Telephone Bank.  The Company recorded a gain of approximately $4.1 million in the second quarter of 2006.  The gain on this transaction increased the Company’s Cash Available for Dividends by $4.1 million in the second quarter.

·                  On May 1, 2006, the Company received total proceeds of $16.9 million from the sale of its investment in Southern Illinois Cellular Corp.  The Company received a portion of the sale proceeds, approximately $2.1 million, immediately prior to closing in the form of a dividend which was recorded as dividend income on the Consolidated Statement of Operations.  The Company also recorded a gain on the sale of the investment in the amount of $10.2 million.  In total, the sale of this investment increased the Company’s Cash Available for Dividends balance by $12.3 million in the second quarter.  In addition to the amounts discussed above, approximately $2.6 million will be held in escrow and the Company will not record the gain on this portion of the transaction until the proceeds are received.

This excerpt taken from the FRP 8-K filed May 9, 2006.

Operational highlights

·                  Total HSD subscribers increased by 3,862 in the first quarter of 2006 to 49,145 at March 31, 2006. HSD penetration increased to 20.3% of voice access lines compared to 15.4% at March 31, 2005 and 18.6% at December 31, 2005.

·                  DSL average revenue per subscriber (“ARPU”) was $40.57 for the first quarter of 2006. The Company’s quarterly DSL ARPU has remained fairly consistent over the past year.

·                  At the end of the first quarter of 2006, DSL penetration was 18.3% of voice access lines, compared to 14.2% at the end of the first quarter of last year.

·                  Interstate long distance penetration as of March 31, 2006 increased to 45.2% of voice access lines compared to 40.9% at the end of the first quarter of 2005 and 44.5% at December 31, 2005, primarily as a result of the Company’s continuing efforts to sell a voice bundled offering consisting of local voice, long distance and enhanced calling services.

·                  Total access line equivalents were 290,682 as of March 31, 2006, representing an increase of 1,783 or 0.6% from December 31, 2005. Total access line equivalents as of March 31, 2006 increased 5.3% compared to March 31, 2005 and increased 1.3% excluding lines acquired in 2005.

·                  Voice access lines, excluding acquired lines, decreased during the first quarter of 2006 by 0.8% to 241,537 compared to December 31, 2005.   Voice access lines, excluding acquired lines, as of March 31, 2006 decreased 2.9% compared to March 31, 2005.

·                  Preparation for the upcoming MACC billing conversion is on plan. The conversion of all companies currently on the CSG platform, 17 of our 28 operating companies, is expected to be completed by the middle of 2006 with the remainder of the companies expected to be converted by early 2007 at a total cost estimated to be approximately $5.5 million.

·                  In April 2006, the Company received proceeds of $26.9 million from the liquidation of the Rural Telephone Bank. The Company will record a gain of approximately $4.1 million in the second quarter of 2006. This $4.1 million will be included in the Company’s Cash Available for Dividends calculation in the second quarter.

·                  On May 1, 2006, the Company received proceeds of $16.9 million from the sale of its investment in Southern Illinois Cellular Corp. The Company will record a gain of approximately $12.4 million in the second quarter of 2006. This $12.4 million will be included in the Company’s Cash Available for Dividends calculation in the second quarter.

3




 

This excerpt taken from the FRP 8-K filed Feb 23, 2006.

Operational highlights

Total HSD subscribers increased by 2,263 in the fourth quarter of 2005 to 45,283 at December 31, 2005. Penetration increased to 18.6% of voice access lines compared to 14.5% at the end of 2004.

DSL average revenue per subscriber (“ARPU”) was $40.60 for the fourth quarter of 2005. The Company’s DSL ARPU has remained fairly consistent throughout 2005.

At the end of the fourth quarter of 2005, DSL penetration was 16.8% of voice access lines, compared to 13.3% at the end of the fourth quarter of last year.

In November 2005, the Company announced that it had reached a settlement with its current billing service provider (CSG) pursuant to which the Company will receive total compensation of $5.1 million from CSG. The settlement called for CSG to pay $4.0 million in cash and the Company no longer has to pay a $1.1 million liability owed to CSG.

As a result of the settlement with CSG, the Company also announced that it had selected a new billing service provider. The Company will convert all of its companies to the Customer Master platform offered by the Mid America Computer Corporation. The conversion of all companies currently on the CSG platform, approximately 17 of our 28 operating companies, is expected to be complete by the middle of 2006 with the remainder of the companies expected to be converted by early 2007 at a total cost estimated to be approximately $5.5 million.

Interstate long distance penetration as of December 31, 2005 increased to 44.5% of voice access lines compared to 38.3% at the end of the fourth quarter of 2004 and 42.3% at September 30, 2005, primarily as a result of the Company’s continuing efforts to sell a voice bundled offering consisting of local voice, long distance and enhanced calling services.

Total access line equivalents were 288,899 as of December 31, 2005, representing a decrease of 2,173 or 0.7% from September 30, 2005. Total access line equivalents as of December 31, 2005 increased 5.1% compared to December 31, 2004 and increased 1.2% excluding lines acquired in 2005. Historically, in the fourth quarter access line losses are greater as the Company loses certain access lines in its northern territories for seasonal reasons.

Voice access lines, excluding acquired lines, decreased during the fourth quarter of 2005 by 1.9% to 233,990 compared to September 30, 2005 and decreased 2.5% for the full year. This decline was partially the result of an increase in non-pay disconnects in the fourth quarter of 2005. The Company disconnected approximately 2,000 voice access lines, net of reconnects, as a result of non-pay in the fourth quarter. In addition, historically, the Company experiences access line losses in the fourth quarter in its northern territories for seasonal reasons.

 

Page 4 of 8

 



 

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki