FairPoint Communications, Inc.NASDAQ
FairPoint Communications: Worst-Run Telco I've Ever Seen
John Zhang • 14 Comments
John Zhang • 14 Comments
Mon, Dec. 5, 3:02 PM
Mon, Dec. 5, 7:17 AM
- Consolidated Communications (NASDAQ:CNSL) announces that it acquired FairPoint Communications (NASDAQ:FRP) for ~$1.5B, including debt.
- “This transaction combines two companies with extensive fiber networks and complementary strategies focusing on being the leading business and broadband solutions provider,” says Consolidated CEO Bob Udell.
- Under the terms of the deal, FairPoint shareholders will receive a fixed exchange ratio of 0.7300 shares of Consolidated Communications stock for each share of FairPoint held. After closing, Consolidated’s shareholders will own approximately 71.3% of the pro forma combined company and FairPoint’s shareholders will own 28.7%.
- The company says the transaction is expected to generate annual operating synergies of ~$55M, which are expected to be achieved within two years after completion of the merger.
- Source: Press Release
Thu, Nov. 10, 4:02 PM
- FairPoint Communications (FRP +0.6%) today said it's wrapped an expansion in Vermont that upgrades broadband networks in 50 towns.
- The company stretched out a fiber network of about 17,000 route miles, bringing higher speeds to 18,300 locations in rural Vermont, it says. Those areas will qualify for download speeds of up to 15 Mbps, depending on distance from FairPoint's servicing equipment.
- The company took acceptance of FCC Connect America Fund Phase II monies last year, designed to support the spread of broadband in high-cost rural areas.
- FairPoint has invested more than $900M in its New England infrastructure since April 2008, it says.
Wed, Nov. 2, 6:03 AM
Tue, Sep. 6, 1:33 PM
- FairPoint Communications (NASDAQ:FRP) has named Bruce Metge its executive VP and chief legal officer.
- Most recently, Metge has served as general counsel for Hillcrest Laboratories.
- He had previously worked in that role and as chief compliance officer for Catalyst Health Solutions, part of a 35-year legal career including private practice.
Wed, Aug. 3, 6:03 AM
Wed, Jul. 13, 4:47 PM
- FairPoint Communications (FRP +2.5%) says its chief financial officer, Ajay Sabherwal, has resigned, and the company is promoting Karen Turner in his place.
- Sabherwal's resignation will be effective after the company files its 10-Q, which it expects during the first week of August.
- Turner has acted as executive VP, Operational Support, after coming to FairPoint in 2014. She has more than 20 years of experience in finance, accounting, operational support and administration after starting her career with Ernst & Young.
- Turner will maintain responsibility leading Human Resources and Risk Management in the new role.
- After hours: FRP -0.4%.
Wed, May 4, 6:08 AM
- FairPoint Communications (NASDAQ:FRP): Q1 EPS of $0.68 may not be comparable to consensus of $1.06.
- Revenue of $206.81M (-3.3% Y/Y) beats by $3.11M.
Thu, Apr. 14, 4:33 PM
- FairPoint Communications (FRP +1.6%) says its executive VP and general counsel, Shirley Linn, is retiring.
- The move is effective May 9, the company notes in a filing. Her functions will be performed by other members in the legal department, as no replacement has been set for her yet.
- Now read FairPoint Communications: Worst-Run Telco I've Ever Seen »
Tue, Mar. 29, 8:35 PM
- Consumer group AARP is now backing a deregulation bill that ends a requirement for price-controlled landline service in Maine from FairPoint Communications (NASDAQ:FRP), after it was amended with stronger consumer protection.
- That means the bill is moving forward. AARP had opposed the bill over concerns that the company could abandon customers dependent on their landlines, or charge higher rates.
- The amended bill removes a requirement that FairPoint provide wireline service to seven cities, and could do the same for five additional communities every six months, up to a cap of 22. Where FairPoint still provides service, rates would be capped at $20/month and rate increases limited to 5%/year.
Wed, Mar. 2, 10:49 AM
- FairPoint Communications (NASDAQ:FRP) is off 5% after its Q4 results came with a miss on revenues as voice service sales dropped 11%.
- Net income of $42.3M was a swing from a year-ago loss of $43.6M. EBITDA of $63.9M beat an expected $60.6M.
- Revenue breakout: Voice services, $77.4M (down 11.2%); Access, $62.1M (down 1.8%); Data and Internet services, $44.9M (up 1.5%); Regulatory funding, $13.1M (up 16.3%); Other services, $12.3M (up 9.8%).
- In the company's strategic characterization of revenues: Growth revenue down $0.9% (1.4%); convertible revenue down $2.4M; legacy revenue down $3.4M; regulatory funding revenue down $4.8M; miscellaneous revenue down $0.4M.
- It's guiding to $105M-$120M in unlevered free cash flow for 2016, and full-year EBITDA of $245M-$255M, in line with expectations. Annual capex is expected to come in at $115M-$120M.
- Conference call link
Wed, Mar. 2, 6:03 AM
- FairPoint Communications (NASDAQ:FRP): Q4 EPS of $1.56 beats by $0.28.
- Revenue of $209.82M (-3.4% Y/Y) misses by $3.03M.
Wed, Jan. 20, 10:08 PM
- A restructuring means that FairPoint Communications (FRP -1.6%) Chief Revenue Officer Anthony Tomae is leaving the company Jan. 29.
- Peter Nixon, the executive VP for Revenue and External Affairs is taking on added responsibility for the company's sales, marketing and product development to pick up Tomae's duties. He'll continue reporting to CEO Paul Sunu.
- The company's expected to report its Q4 earnings on March 3.
Nov. 3, 2015, 6:21 AM
- FairPoint Communications (NASDAQ:FRP): Q3 EPS of $1.96 beats by $1.04.
- Revenue of $221.57M (-2.9% Y/Y) beats by $6.53M.
Oct. 2, 2015, 6:05 PM
- The leader of Maine's Unemployment Insurance Commission has reversed a decision giving unemployment benefits to workers involved in a strike against FairPoint Communications (NASDAQ:FRP), prompting anger from two unions.
- The commission's chairwoman, acted alone in reversing the move because of a vacancy on the panel. The IBEW's Pete McLaughlin said the move was "in violation of Maine's decades-old law protecting the rights of workers on strike."
- More than 1,700 workers in Vermont, New Hampshire and Maine went on strike against FairPoint last fall until a resolution in late February. About 900 workers represented by the unions were striking in Maine and eligible to apply for compensation.
- Vermont had granted unemployment benefits to strikers, but New Hampshire didn't.
Aug. 20, 2015, 6:46 PM
- Small and mid-sized providers including CenturyLink (NYSE:CTL), Consolidated Communications (NASDAQ:CNSL), FairPoint (NASDAQ:FRP), Mediacom and Telephone and Data Systems (NYSE:TDS) are pressing the FCC to rework its rules on retransmission consent, to address a "lack of transparency" in negotiations.
- Retrans negotiations are tough headwinds for IPTV providers who are looking to enter new markets where cable providers have a dominant position.
- They note FCC Chairman Tom Wheeler has estimated that retrans consent fees rose by nearly 8,600% between 2005 and 2012, and are calling for broadcasters to show more info to back up bargaining claims -- such as documenting "market prices" -- to satisfy the "good faith" requirement in negotiations.
- The companies are pushing expansion into new areas even as established cablecos like Comcast and Time Warner Cable hold near-monopoly positions there.