IBM Vermont plant in deal with Kodak

first_imgIBM Vermont plant in deal with KodakIBM and Kodak have announced a multi-year agreement under which the twoconpanies will jointly develop and produce image sensor chips for consumerproducts such as digital cameras and cell phones. Engineers at the IBMVermont facility will work with Kodak to develop a manufacturing processto help Kodak deliver image sensors for consumer products that offerhigher performance, improved image quality and more features than devicescurrently available. IBM will manufacture these image chips for Kodak atthe Vermont facility. This is a key foundry customer win for the Vermontfacility. The image sensor business is growing at a rapid rate and IBMviews this technology as a key opportunity in 2005 and beyond.last_img

Territory Design and Mapping Has Just Gotten Easier

first_imgMaponics, LLC ( is external)), a nationwide provider of custom mapping solutions, has announced the expansion of its sales territory design capabilities. This development enables managers to create territories that make as much sense in the field as they do on paper a key to maximizing profitability and employee satisfaction.Through a multi-phased process, Maponics works with managers to define the best sales territory design. The first objective is to understand the ideal size and number of territories, as a function of the clients business model. Taking these specifications into account, the cartographic team then maps relevant market data (customer/prospect lists, demographics) by geographic unit, such as postal area (ZIP Codes, carrier routes) or Census area (counties, tracts, etc.). Each individual geographic unit (with the relevant data attached) is then aggregated to form balanced territories. Maponics is unique in its ability to take into account on-the-ground obstacles, such as highways and major roads, a capability that eliminates costly territory overlaps and areas of missed opportunity. Maponics has automated parts of this process allowing for larger scale, more efficient implementation.Once individual territories are created, the client determines the tools they need for optimal implementation. In some cases a report listing each territorys definition suffices. Often custom territory maps provide the level of detail necessary to facilitate implementation. In these cases, the client decides the color scheme, map size and custom graphics used, as well as the map format, depending on whether a digital image, printed wall-map or interactive web-based solution will be most useful. For companies with personnel in-the-field, Maponics frequently delivers custom territory maps for each staff member, showing streets and outlining boundaries to minimize time spent navigating to and within individual territories.Tom Berry of Fuelman of Dallas-Forth Worth ( is external)) contacted Maponics for sales territory design to divide up the 23 counties his company serves. As Berry explains, Maponics was able to provide a list of prospect businesses determined by SIC code, map them by ZIP Code, and aggregate them into six balanced territories while including both urban and rural sections of the city in each. This map has increased our ability to manage time and driving expense in the field, by empowering each sales person to determine which areas of their territory hold the most potential business.More information about Maponics sales territory design and custom territory maps can be found at: is external)About MaponicsMaponics provides custom geographic targeting and mapping to sales and marketing organizations. Maponics is committed to serving businesses in a knowledgeable, fast and affordable manner, allowing its clients to concentrate on their core focus. The company is located in Norwich, VT and can be reached at 1-800-762-5158.last_img read more

Douglas urges financial security

first_imgVermont Jump$tart, inconjunction with the National Jump$tart Coalition for Personal FinancialLiteracy, is an all-volunteer coalition of individuals, businesses, andorganizations seeking to promote financial literacy among Vermont youththrough classroom instruction and co-curricular programs to give young people the financial knowledgeand tools they need to become successful adults. Vermont Jump$tart isalso committed to working with youth-oriented organizations. Contact: JasonGibbs (802) 828-3333 GOVERNOR “Learning how to earn, save and manage money is a veryimportant skill for young Vermonters to learn,” the Governor said.  “I am pleased to join with VermontJump$tart to urge young Vermonters to learn more about this important lifeskill.” prefix = o ns = “urn:schemas-microsoft-com:office:office”/>State of VermontOFFICE OF THE GOVERNORFor ImmediateRelease:Thursday, April 13,2006 To learn more about their resources, programs and initiatives, pleasevisit is external). JAMES H. DOUGLAS Governor Urges Young Vermonters to Hone FinancialSkills Montpelier, Vt.–Governor Jim Douglas today joinedthe Vermont Jump$tart for Personal Financial Literacy (the Vermont Jump$tartCoalition) to urge young Vermonters to develop strong financial literacyand management skills and declare Financial Literacy for Youth Month.   Governor Douglas said it is important for youngVermonters to learn the value of properly managing financial assets.  ###last_img read more

Coaching Center of Vermont Announces New Partner

first_imgFROM: Coaching Center of VermontOne Main StreetChamplain MillWinooski, VT 05404Contact: Charlotte is external) FOR IMMEDIATE RELEASE:Coaching Center of Vermont Announces New PartnerGrowth Driving Expansion Winooski, VT, March 26, 2008 The Coaching Center of Vermont, a collaborative of life and business coaches located in the Champlain Mill, Winooski, is pleased to welcome Lea Belair, PCC as a new partner. Belair brings over thirteen years experience and entrepreneurial expertise, including having owned and managed several successful businesses. She brings international credentials and know-how as an instructor in coaching skills, change management, and business development. Her book Walk on Water: How to Make Change Easier is the basis of an advanced coaching program approved by the International Coach Federation (ICF) and makes Belair a popular speaker on thriving in change.In her new position, Belair will focus on a holistic approach to growing the Coaching Center and its two new divisions: Vital Business and The Worldwide Coaching Center. Liz Dallas, President and founding partner, started the business in 2002 as a collective of six coaches, now grown to ten fulltime members and six affiliate members. In addition to providing professional coaching services to the Vermont community, the Coaching Center owes its success to supporting its coach members in starting and building their own independent businesses.”With her proven leadership and success Lea will propel us forward in our company growth and strategic objectives,” stated Dallas, President of the Coaching Center. “Were developing satellite groups in Southern Vermont and the Upper Valley and setting the groundwork for our coaching collaborative to go virtual and expand to a world wide stage this spring.About the Coaching Center of VermontBased in the heart of Winooskis downtown renovation, the Coaching Center of Vermont is a collaborative of diverse business and life coaches offering coaching services in the areas of career development, life balance, executive leadership, business start-ups and growth, retirement, health and wellness, parenting and relationships, and team development. Its Vital Business Division focuses on leadership development and creating coaching cultures within organizations. The Coaching Center provides coach training to managers and professionals through the University of Vermont, Vermont Business Centers Coaching Certificate Program. More information is available at is external)last_img read more

Route 2 Moretown/Middlesex Bridge Now Open

first_imgRoute 2 Moretown/Middlesex Bridge Now OpenMONTPELIER (August 28, 2008) The Vermont Agency of Transportation (VTrans) today opened a one-lane temporary bridge along Route 2 that spans the Winooski River and connects the towns of Middlesex and Moretown.The temporary bridge was installed following the May 30 closure of an 80-year-old truss bridge that was deemed unsafe after an inspection. Transportation crews removed the old bridge, and in its place erected a one-lane temporary bridge that will remain in place until a new, permanent bridge can be constructed.Because the temporary bridge is only one lane, a traffic light was installed to safely allow traffic flow in both directions. The bridge officially opened to traffic at 12:30 p.m.The temporary bridge, originally scheduled to open on Labor Day, was opened to traffic four days early.”We understood how important this bridge is to not only the local communities, but for east-west mobility for all Vermont motorists,” said VTrans Secretary David Dill. “Crews worked extremely hard and did a marvelous job so we could reopen Route 2 in time for the upcoming holiday weekend.”VTrams closed the bridge following an inspection which determined that a primary structural member along the bridge’s bottom deteriorated to the point that it is no longer safe for public use.last_img read more

Vermont Biosciences Alliance and Governor Douglas launch statewide network on June 23

first_imgAll are made by Vermonters who are launching the new Vermont Biosciences Alliance.  These products come from just a few of over 100 companies and researchers in this diverse, innovative and rapidly growing sector of Vermont s economy. Governor Douglas will participate in this first gathering of the Vermont Biosciences Alliance in June.  Leaders of bioscience businesses and research in Vermont will explain their Top Ten lists of do s and don ts for major challenges facing bioscience business and research ventures.What do these products all have in common?  ·        Antibodies for the diagnosis of cardiovascular and infectious diseases,·        Microscope imaging systems to help researchers find cures to devastating diseases such as Alzheimer s, Parkinson s and Autism,·        Diagnostic test devices for the prevention of heart attack, stroke and the complications of diabetes,·        Precision optics to help diagnose cancers and assist genetic research,·        Infusion syringe pumps for automated medication delivery. Governor Douglas will participate in this first gathering of the Vermont Biosciences Alliance in June.  Leaders of bioscience businesses and research in Vermont will explain their Top Ten lists of do s and don ts for major challenges facing bioscience business and research ventures:·        Developing angel funding for biotechnology and life science business ventures.·        Building industry relationships to support and fund research.·        Valuing and commercializing your intellectual capital.·        Growing the successful technology-based business.The event is free to anyone interested in the growth of biosciences. The gathering includes a reception with Governor Douglas plus leaders from the legislature and Vermont s Congressional delegation. This is a great opportunity to meet Vermont s leaders and get to know many people from Vermont s vibrant bioscience community.Attendance is limited to the first 100 people who register in advance. To register for this free kick off event go to the Vermont Biosciences website ( and click on Register. Much more information about the goals and activities of the Vermont Biosciences Alliance is also available at the website.    – 30 –last_img read more

Crews restore power to more than 11,000 CVPS customers over night

first_imgLine crews worked tirelessly through the night last night after a three-pronged wave of thunderstorms swept through the state yesterday, knocking out power to about 12,500 CVPS customers at the height of the storm around 10 pm. About 750 customers in Rutland, Orange, and Windsor counties remain without power this morning, with some scattered outages across the state.“We began mobilizing crews from our other districts in the early evening yesterday,” said Storm Manager Scott Massie. “But this storm really came in three waves. The first wave hit the St. Albans area yesterday afternoon, and then the next wave hit central Vermont, and then Rutland County took a beating last night. It was next to impossible to know where these storms cells were going to hit; they just popped up everywhere without notice.”Storm damage was localized to specific areas.“I didn’t have a limb down at my house,” said Rutland Operations Supervisor Chris Gandin, who lives nearby Sugar and Spice off Route 4 in Mendon, “but trees and limbs were down everywhere only a few miles away.”CVPS crews were assisted by crews from Green Mountain Power, Ludlow Electric and Bemis Line Construction.“Crews will be working through the day today to finish our restoration efforts,” CVPS spokeswoman Christine Rivers said.Up-to-date outage numbers (by town) can be found at: is external)Source: CVPS. 7.22.2010last_img read more

New Vermont R&D tax credit available in 2011

first_imgA new tax credit becomes available this year to eligible Vermont businesses for research and development investments made in Vermont starting Jan. 1, 2011.The tax credit was enacted by the Vermont General Assembly in 2009, but became effective for R&D expenditures made on or after Jan. 1, 2011. Availability of the tax credit relied on an extension the federal R&D tax credit, which occurred in December 2010 when President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. The federal R&D Tax Credit will be extended through December 2011.Vermont companies that make eligible research and development expenditures in Vermont can claim a tax credit equal to 30 percent of the federal tax credit allowed in the taxable year. Eligible research and development investments are the same as those defined by the federal R&D tax credit under Section 41(a) of the IRS Code, which are made in Vermont. If the tax credit cannot be applied in the year earned, the taxpayer can carry forward the credit for up to 10 years.‘Incentives like the Vermont R&D tax credit will encourage companies such as Bio Tek and Seldon Technologies to continue investing in R&D, add high paying jobs and help keep them competitive in the global marketplace,’ said Governor Shumlin.‘This is an exciting opportunity to help technology and innovation companies to grow here in Vermont,’ added Lawrence Miller, Secretary of the Vermont Agency of Commerce & Community Development. Source: Vermont Development Agency. 1.27.2011last_img read more

Welch announces new legislation to create jobs for veterans

first_imgGranite Industries of Vermont Inc,At Granite Industries of Vermont, a business recognized for its commitment to the Vermont National Guard, Representative Peter Welch on Monday unveiled new legislation to encourage Vermont businesses to hire veterans.The Veterans Employment Tax Credit Act, which Welch will introduce in the U.S. House this week, would provide a $2,400 tax credit to businesses that hire veterans who have been unemployed for at least four weeks. A similar tax credit was included in the American Recovery and Reinvestment Act, but lapsed at the close of 2010.‘As Vermont welcomes home the brave men and women of the Vermont Guard who served and sacrificed in Afghanistan last year, we must make sure they have everything they need to succeed in civilian life. Critical to that is ensuring they have good-paying jobs,’ Welch said. ‘Vermont business owners know that veterans often make the best employees. But in a tough economy, we should provide an extra incentive for businesses to employ those who have served our country.’Welch announced his new bill at Granite Industries in Barre, a business that received the Patriot Award from Vermont Employer Support of the Guard and Reserve (ESGR). Owner Jeff Martell and employee Robert McCallum, who served with the Guard in a previous deployment to Iraq, spoke about the importance of hiring Vermont Guardsmen and women. Vermont ESGR Chairman Shawn Bryan and Vermont Secretary of Commerce Lawrence Miller also spoke.The VET Credit Act would expand the Work Opportunity Tax Credit to apply to those who have served active duty in the armed services or the National Guard for more than 180 days in the past five years. The WOTC currently provides a $2,400 tax credit to businesses that hire veterans with a service-connected disability.In testimony delivered to the Vermont Legislature in January, Adjutant General Michael Dubie said that 30 percent of the those returning from the recent Vermont Guard deployment to Afghanistan were unemployed.In addition to unveiling his VET Credit Act, Welch said at the press conference that he would cosponsor the Veterans Act, a bill introduced by Rep. Peter King (R-N.Y.) to provide a tax credit to businesses that hire veterans of the Iraq and Afghanistan wars. Welch also used the opportunity to promote three upcoming career fairs the Vermont Guard is holding for veterans in conjunction with the Vermont Department of Labor and ESGR: · Wednesday, Feb. 9, 2011 ‘ Champlain Valley Fairgrounds, Essex Junction ‘ 8 a.m. to 2 p.m. · Wednesday, Feb. 23, 2011 ‘ Castleton State College, Castleton ‘ 9 a.m. to 2 p.m.· Friday, Feb. 25, 2011 ‘ Lebanon College, Lebanon, NH ‘ Time TBDlast_img read more

FairPoint Q1 revenues down, broadband subscribers increase

first_imgQuarter ended Other assets and liabilities, net Deferred income taxes (Unaudited) 1,948 897,313(15,552)(10,352)1,375(16,591) 1Q11  Reported4Q10  Reported3Q10  Restated2Q10  Restated1Q10  Restated Proceeds from issuance of long-term debt Revenue: (41,245) ‘ 3493772,20710526 (12,477) (7,752) –1,3978,30710,436 (264,534)(6,413)7,33010,245(3,501) 34 $ 562,484$ (74,987)$ (66,084)$ (54,178)$ (86,330) 84,29474,60672,36471,47271,382 Post-retirement accruals All other allowed adjustments, net (2e) Non-cash reorganization costs (income) (1,141) Days Ended (5,901) Net change Supplemental Financial Information (201) (722) Claims payable and estimated claims accrual Depreciation and amortization ($ in thousands, except units) $ 562,484$ (74,987)$ (66,084)$ (54,178)$ (86,330) Months Ended (3,423) 109,355 (21,463)(34,810)(33,151)(35,616)(34,604) 5,103 (1,100) (48,832)(18,212)(29,911)(30,182)(31,634) 3 2,182 827,018(68,574)(73,414)(64,423)(82,829) Net cash provided by (used in) operating activities 1,236 Total adjustments Condensed Consolidated Statements of Cash Flows ‘ payable, estimated claims accrual or liabilities subject Income tax benefit (expense) Interest expense 986 91,35892,12895,92396,18296,856 105,497 (95,235) 30,258 33,583 Reorganization items (1) Other non-cash items, net (2b) Voice services 5,513 Prepaid and other assets (Restated) 28,49527,50426,69128,96127,067 Other income (expense): 219732(999)959859 Consolidated EBITDAR (1,667) Consolidated EBITDAR margin (82,764) 2,068 Reorganization adjustments: 276,204 (40,407) $586,907$(86,330) 2,418 Successor Company Predecessor Company Sixty-Six Twenty-Four 17,32614,94811,39518,78814,739 Days Ended (866) 177 (912,270)16,0961,066(8,509)1,327 (298) $   49,085$   83,987$   59,203$   72,294$   60,784 (26,485) Operating expenses, excluding depreciation, amortization and reorganization 21,515 2,736—- Capital additions included in accounts payable, claims ‘ 779 (11,996) Accrued interest payable Other non cash items Consolidated Communications,FairPoint Communications, Inc. (Nasdaq: FRP) (FairPoint or the Company), a leading provider of communications services, today announced its financial results for the first quarter ended March 31, 2011. Revenue was $254.8 million in the first quarter of 2011 as compared to $270.8 million a year earlier. Revenue was $254.8 million in the first quarter of 2011 as compared to $268.0 million in the fourth quarter of 2010. Consolidated EBITDAR was $49.1 million in the first quarter of 2011 as compared to $60.8 million a year earlier.  First quarter 2010 Consolidated EBITDAR was favorably impacted by the add-back of $10.4 million related to the net effect of a financial restatement. (see table below)As previously announced, the Company will host a conference call and simultaneous webcast to discuss its results at 2:00 p.m. (EDT) on Tuesday, May 17, 2011.High-speed Internet subscribers increased over 13,600, or 4.8% year-over-year, with over 56% of the increase coming during the first quarterVoice access line loss continued to improve to 9.6% annually from 10.3% reported in the prior quarterNet Income, including Cancellation of Debt Income of $1,351.1 million, increased to $562.5 millionversus a Net Loss of $86.3 million a year earlierRevenue was flat sequentially from fourth quarter 2010, after adjusting for one-time items”We are encouraged by the operational improvements taking hold,” said Paul H. Sunu, CEO of FairPoint.  “We believe the recently announced fiber-to-the-tower project, along with the increase in high-speed Internet subscribers and the reduction in the rate of voice access line loss are all leading indicators of expected future revenue growth.  As we’ve said before, this is a transition year for FairPoint and we’re excited about the organic revenue growth opportunities in our markets.”High-speed Internet penetration increased to 27% of voice access lines at March 31, 2011, which represents the highest level since FairPoint acquired the northern New England assets on March 31, 2008.  The addition of over 7,700 high-speed Internet subscribers was also the largest quarterly increase since FairPoint took over the northern New England properties.  Company-wide, year-over-year voice access line loss slowed for the fourth consecutive quarter to 9.6%.  In addition, continued service quality improvements led to a decline in penalties of $5.1 million versus a year earlier.  FairPoint ended the quarter with revenue of $254.8 million and Consolidated EBITDAR(1) of $49.1 million.  Included in the first quarter Consolidated EBITDAR was the impact of a $13.5 million expense related to the annual vacation award for northern New England employees.  This annual vacation expense is recorded by the Company in the first quarter of each year.  Adjusting for this item, Consolidated EBITDAR would have been approximately $62.6 million in the first quarter of 2011.Operating and Regulatory HighlightsOperating metrics continue to improve.  For example, sustained improvements in retail service quality indicators such as faster call center answer times and shorter installation and repair intervals resulted in lower retail penalties of $0.4 million in the quarter versus $4.3 million a year earlier, an improvement of$3.9 million.  In addition, continued improvements in wholesale service quality metrics resulted in lower wholesale penalties of $1.4 million in the quarter versus $2.6 million a year earlier, an improvement of $1.2 million.High-speed Internet subscribers increased 4.8% year-over-year, compared to a 0.4% increase in the fourth quarter of 2010 and a 5.5% decline in the first quarter of 2010.  The rate of voice access line loss slowed to 9.6% annually versus 10.3% in the fourth quarter of 2010 and 12.4% a year earlier.FairPoint continued its northern New England broadband expansion efforts by announcing it has brought high-speed Internet access to hundreds more communities and neighborhoods in Maine, New Hampshireand Vermont.  As of March 31, 2011, FairPoint offers broadband service to more than 83% of customers in Maine, more than 85% of customers in New Hampshire and more than 80% of customers in Vermont.  The Company is on track to meet its 2011 regulatory broadband commitments.On April 14, 2011 the Company announced an initial network build which will bring fiber to more than half of the approximately 1,600 wireless communications towers it serves in its northern New England service footprint.  With this strategic investment, FairPoint will further enhance its next-generation IP/MPLS network, branded as VantagePoint(sm), and will be uniquely positioned to capture the growth in mobile data usage by providing Ethernet backhaul to wireless carriers.Financial HighlightsFirst Quarter 2011 as compared to First Quarter 2010Revenue was $254.8 million in the first quarter of 2011 as compared to $270.8 million a year earlier.  The$16.0 million decrease was primarily the result of the 9.6% decline in voice access lines year-over-year, which led to decreases in voice services and access revenue. Partially offsetting the decline was the improvement in service quality penalties discussed above and a 5.3% increase in data and Internet services revenue.Operating expenses, excluding depreciation, amortization and reorganization, were $216.6 million in the first quarter of 2011 as compared to $231.1 million a year earlier.  The favorable variance of $14.5 million, or 6.3%, was primarily the result of reductions in contracted services, data and voice transport and bad debt expense.Consolidated EBITDAR was $49.1 million in the first quarter of 2011 as compared to $60.8 million a year earlier.  First quarter 2010 Consolidated EBITDAR was favorably impacted by the add-back of $10.4 million related to the net effect of a financial restatement. Excluding the benefit from this financial restatement add-back, Consolidated EBITDAR for the first quarter of 2010 would have been $50.4 million.  The $1.3 million decrease year-over-year is primarily explained by the decrease in revenue mostly offset by operating expense reductions as discussed above.Net income was $562.5 million in the first quarter of 2011 as compared to a net loss of $86.3 million a year earlier, First quarter 2011 net income benefited from a one-time pre-tax gain of $911.3 million related to the reorganization, which included $1,351.1 million of Cancellation of Debt Income.Capital expenditures were $53.7 million in the first quarter of 2011 as compared to $40.4 million a year earlier.  Major capital initiatives in 2011 include the continued expansion of the VantagePoint(sm) network, the fiber-to-the-tower build, regulatory broadband commitments in northern New England, information technology improvements and enhancements, success-based capital projects for targeted revenue opportunities and network and facilities maintenance.First Quarter 2011 as compared to Fourth Quarter 2010Revenue was $254.8 million in the first quarter of 2011 as compared to $268.0 million in the fourth quarter of 2010.  Revenue was essentially flat quarter-over-quarter after adjusting fourth quarter 2010 revenue for the one-time benefit of a $12.7 million service quality penalty reversal.Operating expenses, excluding depreciation, amortization and reorganization, increased $5.0 million to $216.6 million as compared to $211.6 million in the fourth quarter of 2010.  As previously reported, the majority of the Company’s employees are entitled to their annual vacation allowance on January 1st of each year.  Accordingly, the Company recognized $13.5 million of vacation expense on January 1, 2011, which will be amortized over the balance of the year as vacation is used.  In addition, fourth quarter 2010 operating expenses included certain one-time non-cash charges related to project abandonment, inventory obsolescence and other non-recurring items which totaled approximately $14.8 million.  Adjusting for these items, first quarter 2011 expenses would have been $203.1 million compared to $196.8 million for the fourth quarter of 2010.  The increase of $6.3 million was primarily driven by a $12.5 million change in bad debt expense, which was partially offset by expense reductions in other areas such as contracted services.  First quarter 2011 bad debt expense was approximately 2.2% of revenue, while in the fourth quarter of 2010 the Company benefited from a reduction in the bad debt allowance as a result of improved collections activity.Consolidated EBITDAR declined $34.9 million to $49.1 million as compared to $84.0 million in the fourth quarter of 2010.  The first quarter of 2011 was unfavorably impacted by the $13.5 million annual vacation expense.  In addition, the fourth quarter of 2010 was favorably impacted by the one-time revenue benefit of the $12.7 million service quality penalty reversal.  Adjusting for these items, Consolidated EBITDAR would have been approximately $62.6 million in the first quarter of 2011 compared to $71.3 million in the fourth quarter of 2010.  The $8.7 million unfavorable variance quarter-over-quarter is primarily the result of the$12.5 million change in bad debt expense discussed above, partially offset by operating expense reductions in other areas such as contracted services.Capital expenditures were $53.7 million in the first quarter of 2011 as compared to $40.9 million in the fourth quarter of 2010.2011 GuidanceWhile the Company is encouraged by the fact that revenue in the first quarter of 2011 was essentially flat versus the fourth quarter of 2010 on an adjusted basis, the full year 2011 revenue guidance of $1,060 to $1,090 million is unlikely to be achieved. The Company does not intend to provide new revenue guidance.  However, the Company continues to believe that it can achieve the low end of its Consolidated EBITDAR guidance of $260 to $280 million through cost reduction initiatives, many of which are already underway, and revenue growth.Fresh Start AccountingOn January 24, 2011, the Company emerged from Chapter 11 bankruptcy protection and its Plan of Reorganization became effective. For purposes of generally accepted accounting principles, the Company adopted fresh start accounting as of January 24, 2011, whereby the Company’s assets and liabilities were marked to their fair value as of the date of emergence.  Accordingly, the Company’s condensed consolidated statements of financial position and operations for periods after January 24, 2011, will not be comparable in many respects to periods prior to the adoption of fresh start accounting.Conference Call InformationAs previously announced, FairPoint will host a conference call and simultaneous webcast to discuss its first quarter 2011 results at 2:00 p.m. (EDT) on Tuesday, May 17, 2011.Participants should call (800) 706-7741 (US/Canada) or (617) 614-3471 (international) at 1:50 p.m. (EDT)and enter the passcode 31415391 when prompted.  The title of the call is the Q1 2011 FairPoint Communications, Inc. Earnings Conference Call.A telephonic replay will be available for anyone unable to participate in the live call. To access the replay, call (888) 286-8010 (US/Canada) or (617) 801-6888 (international) and enter the passcode 61310099 when prompted.  The recording will be available from Tuesday, May 17, 2011, at 5:00 p.m. (EDT) throughTuesday, May 31, 2011, at 11:59 p.m. (EDT).A live broadcast of the earnings conference call will be available via the Internet is external). An online replay will be available shortly thereafter.Use of Non-GAAP Financial MeasuresThis press release includes certain non-GAAP financial measures, including but not limited to Consolidated EBITDAR and adjustments to GAAP measures to exclude the effect of special items. Management believes that Consolidated EBITDAR may be useful to investors in assessing the Company’s operating performance and its ability to meet its debt service requirements, and the maintenance covenants contained in the Company’s credit facility are based on Consolidated EBITDAR. In addition, management believes that the adjustments to GAAP measures to exclude the effect of special items may be useful to investors in understanding period-to-period operating performance and in identifying historical and prospective trends. However, the non-GAAP financial measures, as used herein, are not necessarily comparable to similarly titled measures of other companies. Furthermore, Consolidated EBITDAR has limitations as an analytical tool and should not be considered in isolation from, or as an alternative to, net income or loss, operating income, cash flow or other combined income or cash flow data prepared in accordance with GAAP. Because of these limitations, Consolidated EBITDAR and related ratios should not be considered as measures of discretionary cash available to invest in business growth or reduce indebtedness. The Company compensates for these limitations by relying primarily on its GAAP results and using Consolidated EBITDAR only supplementally. A reconciliation of Consolidated EBITDAR to Net Income is contained in the attachments to this press release.About FairPointFairPoint Communications, Inc. (Nasdaq: FRP) ( is external)) is a leading communications provider of high-speed Internet access, local and long-distance phone, television and other broadband services to customers in communities across 18 states. Through its fast, reliable data network, FairPoint delivers data and voice networking communications solutions to residential, business and wholesale customers. VantagePoint(sm), FairPoint’s resilient IP-based network in northern New England, provides business customers a fast, flexible, affordable Ethernet connection.  VantagePoint(sm) supports applications like video conferencing and e-learning. Additional information about FairPoint products and services is available at is external).Cautionary Note Regarding Forward-looking StatementsSome statements herein are known as “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  These forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions and other statements contained herein that are not historical facts. When used herein, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions are generally intended to identify forward looking statements. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements, including the Company’s plans, objectives, expectations and intentions and other factors. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of the date hereof. The Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.  However, your attention is directed to any further disclosures made on related subjects in the Company’s subsequent reports filed with the SEC.Certain information contained herein may constitute guidance as to projected financial results and the Company’s future performance that represents management’s estimates as of the date hereof. This guidance, which consists of forward-looking statements, is prepared by the Company’s management and is qualified by, and subject to, certain assumptions. Guidance is not prepared with a view toward compliance with published guidelines of the American Institute of Certified Public Accountants, and neither the Company’s independent registered public accounting firm nor any other independent expert or outside party compiles or examines the guidance and, accordingly, no such person expresses any opinion or any other form of assurance with respect thereto. Guidance is based upon a number of assumptions and estimates that, while presented with numerical specificity, are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control and are based upon specific assumptions with respect to future business decisions, some of which will change. Management generally states possible outcomes as high and low ranges which are intended to provide a sensitivity analysis as variables are changed but are not intended to represent actual results, which could fall outside of the suggested ranges. The principal reason that the Company releases this data is to provide a basis for management to discuss the Company’s business outlook with analysts and investors. The Company does not accept any responsibility for any projections or reports published by any such outside analysts or investors. Guidance is necessarily speculative in nature, and it can be expected that some or all of the assumptions of the guidance furnished by us will not materialize or will vary significantly from actual results. Accordingly, the Company’s guidance is only an estimate of what management believes is realizable as of the date hereof. Actual results will vary from the guidance and the variations may be material. Investors should also recognize that the reliability of any forecasted financial data diminishes the farther in the future that the data is forecast. In light of the foregoing, investors are urged to put the guidance in context and not to place undue reliance on it.(1)  Consolidated EBITDAR means earnings before interest, taxes, depreciation, amortization and restructuring items as defined in the Company’s new credit facility.  Consolidated EBITDAR is a non-GAAP financial measure.  A reconciliation of Consolidated EBITDAR to Net Income is contained in the attachments to this press release.  Cash flows from investing activities: 3,454 458 Reorganization costs paid 10,68610,99212,0369,97910,240 Changes in assets and liabilities arising from operations: 71,382 19.3%31.3%22.7%26.6%22.4% Loss before reorganization items and income taxes 10,70211,69612,41811,47712,460 Provision for uncollectible revenue Reorganization expense (post-emergence) (1) Cash, beginning of period Net income (loss) 2,654 Income (loss) before income taxes (48) 130 3,170 (709) Net capital additions (667,998) Data and Internet services (in thousands) (1,096) 1,818 Access Non-cash pension and OPEB expense (2a) Net cash (used in) provided by financing activities March 31, 2011 Total revenue FAIRPOINT COMMUNICATIONS, INC. AND SUBSIDIARIES 8,058 FAIRPOINT COMMUNICATIONS, INC. 9,017 (8,517) 180 Loss from operations Other services 84,29474,60672,36471,47271,382 Repayment of capital lease obligations Three (41,248) (917,358) 977 (211) Distributions from investments 303,612286,204290,541301,745302,435 10,262 (1,500) 23,888 Accounts payable and accrued liabilities 160,184 Three months ended March 31, 2010 71,120 Pension accruals 264,5346,413(7,330)(10,245)3,501 Adjustments to reconcile net income to net cash provided by 216,582211,598218,177230,273231,053 Total other income (expense) (81,091) Restructuring costs (2c) Accounts receivable $ 124,225$ 136,664$ 125,598$ 134,943$ 134,418 13,918 Depreciation and amortization (70,295)(53,022)(63,062)(65,798)(66,238) (Unaudited) operating activities: Loan origination costs Net cash used in investing activities 254,780267,992260,630271,563270,801 Operating expenses: $10,262$145,980 Cash flows from financing activities: 8,133 Restricted cash Supplemental disclosure of cash flow information: 46,697 Summary Income Statement: Cash flows from operating activities: Restricted cash – cash claims reserve (12,477) March 31, 2010 Other income (expense), net Cash, end of period$15,416 3,207 62,779 32,687 subject to compromise at period-end (521) 73,854 33,810 (40,399) 36,625 12,812 5,154 ‘ Depreciation and amortization Net income (loss) Sixty-Six Days ended March 31, 2011, Twenty-Four Days ended January 24, 2011 and Interest expense Total operating expenses Consolidated EBITDAR Reconciliation: Income tax (benefit) expense 8 14,381 (21,812)(35,187)(35,358)(35,721)(34,630) CHARLOTTE, N.C., May 16, 2011 /PRNewswire/ — January 24, 2011 379 Restatement impact, net (2d) 8,064 ‘ 11,110 21,81235,18735,35835,72134,630 Net (loss) income$(24,423)last_img read more