-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IP4ybbEXVW5akCjFNc8tIxUjzEWb+7jyXlRISYTj1RXXkuVJBZ/lr1EWYTQDAtoM zDrysHq5a7+tUyN2Gxy1MA== 0000020520-07-000005.txt : 20070227 0000020520-07-000005.hdr.sgml : 20070227 20070227084554 ACCESSION NUMBER: 0000020520-07-000005 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061231 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070227 DATE AS OF CHANGE: 20070227 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CITIZENS COMMUNICATIONS CO CENTRAL INDEX KEY: 0000020520 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 060619596 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11001 FILM NUMBER: 07651342 BUSINESS ADDRESS: STREET 1: HIGH RIDGE PK BLDG 3 CITY: STAMFORD STATE: CT ZIP: 06905 BUSINESS PHONE: 2036145600 MAIL ADDRESS: STREET 1: THREE HIGH RIDGE PARK CITY: STAMFORD STATE: CT ZIP: 06905 FORMER COMPANY: FORMER CONFORMED NAME: CITIZENS UTILITIES CO DATE OF NAME CHANGE: 19920703 8-K 1 form8k4qtr06.txt PRESS RELEASE 4TH QUARTER 2006 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) Of the Securities Exchange Act of 1934 Date of Report (date of earliest event reported): February 27, 2007 Citizens Communications Company - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware - -------------------------------------------------------------------------------- (State or other jurisdiction of incorporation) 001-11001 06-0619596 - -------------------------------------------------------------------------------- (Commission File Number) (IRS Employer Identification No.) 3 High Ridge Park, Stamford, Connecticut 06905 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (203) 614-5600 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition --------------------------------------------- On February 27, 2007, the Company issued a press release. A copy of the press release is attached hereto as Exhibit 99.1. The information in this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing. Item 9.01. Financial Statements and Exhibits --------------------------------- (d) Exhibits 99.1 Press Release of Citizens Communications Company issued February 27, 2007. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CITIZENS COMMUNICATIONS COMPANY Date: February 27, 2007 By:/s/ Robert J. Larson --------------------------------- Robert J. Larson Senior Vice President and Chief Accounting Officer EX-99.1 2 analsche4qtr06.txt ANALYST SCHEDULES Exhibit 99.1 Citizens Communications 3 High Ridge Park Stamford, CT 06905 203.614.5600 Web site: www.czn.net Contact: Brigid Smith 203.614.5042 bsmith@czn.com Citizens Communications Reports 2006 Fourth-Quarter Results; Announces New Stock Buyback Program Stamford, Conn., February 27, 2007 -- Citizens Communications (NYSE:CZN) today reported fourth quarter 2006 revenues of $504.4 million, operating income of $157.0 million, and net income of $63.9 million. Fourth quarter 2006 revenue was $504.4 million, as compared to $517.4 million in the fourth quarter of 2005. We experienced 13.5 percent growth in data and internet services revenue in the fourth quarter of 2006, compared to the fourth quarter of 2005. Revenues were lower in the fourth quarter of 2006 as compared to 2005 due to declines in access service revenues (which include subsidy payments we receive from federal and state agencies) and local, long distance and equipment sales. The fourth quarter of 2005 included approximately $10.0 million of subsidy revenue recorded during that quarter in access service revenues, arising from a missed filing deadline with the Universal Service Fund (USF) in the third quarter of 2005. Other operating expenses for the fourth quarter of 2006 decreased by approximately $7.9 million or 4.3 percent, as compared to the fourth quarter of 2005 primarily driven by reductions in employees and improved expense control in benefit costs. Depreciation and amortization expense for the fourth quarter of 2006 decreased $6.8 million or 5.4 percent as compared to the fourth quarter of 2005. The decrease is primarily due to a declining net asset base. The company added approximately 19,700 high-speed internet customers during the quarter and had more than 393,000 high-speed data subscribers at December 31, 2006. The number of the company's high-speed internet subscribers has increased by more than 75,000 or 23.6 percent since the beginning of 2006. Operating income for the fourth quarter of 2006 was $157.0 million and operating income margin was 31.1 percent, compared to $165.3 million and 31.9 percent in the fourth quarter of 2005. Capital expenditures were $105.5 million for the fourth quarter of 2006 and $268.8 million for the year. Free cash flow for the fourth quarter was $91.7 million and $539.6 million for the full year. The company's dividend represents a payout of 60 percent of free cash flow for the year. --MORE -- "We delivered a strong fourth quarter capping a year of solid results for 2006. Product revenue growth coupled with disciplined expense control generated a 54.5% operating cash flow margin for the quarter and a 55.3% operating cash flow margin for the year," said Maggie Wilderotter, Chairman and CEO of Citizens. "Our innovative Q4 promotions drove penetration levels for all voice, data and video product bundles." The company's Board of Directors has authorized a new share repurchase program. Under the new program, up to $250 million of common stock may be repurchased over the next 12 months. The new stock repurchase program could result in the repurchase of up to 5 percent of the company's common stock. The Company expects to spend between $270 million and $280 million in capital expenditures in 2007. Our free cash flow for 2007 is estimated to be between $425 million and $450 million. Both of these 2007 estimates exclude the impact of the pending acquisition of Commonwealth Telephone Enterprises. The company's next regular quarterly cash dividend of $0.25 per share will be paid on March 30, 2007 to shareholders of record on March 9, 2007. The company expects that dividends paid to stockholders in 2007 will be treated as dividends for federal income tax purposes. Shareholders are encouraged to consult with their tax advisors. The company uses certain non-GAAP financial measures in evaluating its performance. These include free cash flow and operating cash flow. A reconciliation of the differences between free cash flow and operating cash flow and the most comparable financial measure calculated and presented in accordance with GAAP is included in the tables that follow. The non-GAAP financial measures are by definition not measures of financial performance under generally accepted accounting principles and are not alternatives to operating income or net income reflected in the statement of operations or to cash flow as reflected in the statement of cash flows and are not necessarily indicative of cash available to fund all cash flow needs. The non-GAAP financial measures used by the company may not be comparable to similarly titled measures of other companies. The company believes that presentation of non-GAAP financial measures provides useful information to investors regarding the company's financial condition and results of operations because these measures, when used in conjunction with related GAAP financial measures, (i) together provide a more comprehensive view of the company's core operations and ability to generate cash flow, (ii) provide investors with the financial analytical framework upon which management bases financial, operational, compensation and planning decisions, and (iii) presents measurements that investors and rating agencies have indicated to management are useful to them in assessing the company and its results of operations. Management uses these non-GAAP financial measures to plan and measure the performance of its core operations and its divisions' measure performance and report to management based upon these measures. In addition, the company believes that free cash flow and operating cash flow, as the company defines them, can assist in comparing performance from period to period, without taking into account factors affecting cash flow reflected in the statement of cash flows, including changes in working capital and the timing of purchases and payments. --MORE -- Management uses these non-GAAP financial measures to (i) assist in analyzing the company's underlying financial performance from period to period, (ii) evaluate the financial performance of its business units, (iii) analyze and evaluate strategic and operational decisions, (iv) establish criteria for compensation decisions, and (v) assist management in understanding the company's ability to generate cash flow and, as a result, to plan for future capital and operational decisions. Management uses these non-GAAP financial measures in conjunction with related GAAP financial measures. The company believes that the non-GAAP financial measures are meaningful and useful for the reasons outlined above. While the company utilizes these non-GAAP financial measures in managing and analyzing its business and financial condition and believes they are useful to management and to investors for the reasons described above, these non-GAAP financial measures have certain shortcomings. In particular, free cash flow does not represent the residual cash flow available for discretionary expenditures, since items such as debt repayments and dividends are not deducted in determining such measure. Operating cash flow has similar shortcomings as interest, income taxes, capital expenditures, debt repayments and dividends are not deducted in determining this measure. Management compensates for the shortcomings of these measures by utilizing them in conjunction with their comparable GAAP financial measures. The information in this press release should be read in conjunction with the financial statements and footnotes contained in our documents filed with the U.S. Securities and Exchange Commission. About Citizens Communications More information about Citizens can be found at www.czn.net. This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management's views and assumptions regarding future events and business performance. Words such as "believe," "anticipate," "expect," and similar expressions are intended to identify forward-looking statements. Forward-looking statements (including oral representations) involve risks and uncertainties that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. These risks and uncertainties are based on a number of factors, including but not limited to: our ability to complete the acquisition of Commonwealth Telephone Enterprises, Inc., to successfully integrate their operations and to realize the synergies from the acquisition; our ability to refinance the bridge loan that will be used to finance the cash portion of the merger consideration with long-term debt; our ability to effectively manage our operations, costs and capital spending; our ability to successfully introduce new product offerings, including bundled service packages; our ability to sell enhanced services; our ability to comply with federal and state regulations; changes in the number of our revenue generating units; general and local economic and employment conditions; the effects of ongoing changes in the regulation of the communications industry; overall changes in the telecommunications market; and greater than anticipated competition from wireless or wireline carriers. These and other uncertainties related to our business are described in greater detail in our filings with the Securities and Exchange Commission, including our reports on Forms 10-K and 10-Q and the foregoing information should be read in conjunction with these filings. We do not intend to update or revise these forward-looking statements to reflect the occurrence of future events or circumstances. ### TABLES TO FOLLOW
Citizens Communications Company Consolidated Financial Data (1) (unaudited) For the quarter ended For the year ended December 31, December 31, -------------------------- % -------------------------- % (Amounts in thousands - except per-share amounts) 2006 2005 Change 2006 2005 Change ------------------------------------ ------------------------------------ Income Statement Data Revenue $ 504,396 $ 517,363 -3% $2,025,367 $2,017,041 0% Cost of services (exclusive of depreciation and amortization) 49,836 40,224 24% 171,247 156,822 9% Other operating expenses 177,284 185,154 -4% 722,803 742,620 -3% Stock based compensation 2,380 1,994 19% 10,340 8,427 23% Depreciation and amortization 117,923 124,705 -5% 476,487 520,204 -8% Operating income 156,973 165,286 -5% 644,490 588,968 9% Investment and other income (loss), net 14,070 2,419 482% 82,443 12,979 535% Interest expense (includes interest on convertible debt) 83,526 85,726 -3% 336,446 338,735 -1% Income tax expense 23,576 10,215 131% 136,479 75,270 81% Income (loss) from discontinued operations, net of tax(2) (30) 5,017 -101% 90,547 14,433 527% Net income attributable to common shareholders 63,911 76,781 -17% 344,555 202,375 70% Weighted average shares outstanding 320,774 331,180 -3% 322,641 337,065 -4% Basic net income per share attributable to common shareholders (3) $ 0.20 $ 0.23 -13% $ 1.07 $ 0.60 78% Other Financial Data Capital expenditures $ 105,450 $ 93,081 13% $ 268,806 $ 259,448 4% Free cash flow (4) 91,679 115,719 -21% 539,612 527,971 2% Dividends paid 80,556 83,037 -3% 323,671 338,364 -4% Dividends payout ratio (5) 88% 72% 22% 60% 64% -6%
(1) In February 2006, we entered into a definitive agreement to sell Electric Lightwave, LLC (ELI), our competitive local exchange carrier business. ELI was sold on July 31, 2006. Additionally, our conferencing business was sold on March 15, 2005. Prior periods have been restated to present ELI and our conferencing business as discontinued operations and to reflect the consolidation of Mohave Cellular Limited Partnership in accordance with EITF No. 04-5. (2) For the year ended December 31, 2006, income from discontinued operations includes ELI's after-tax gain of approximately $71.6 million. (3) Calculated based on weighted average shares outstanding. (4) A reconciliation to the most comparable GAAP measure is presented at the end of these tables. (5) Represents dividends paid divided by free cash flow.
Citizens Communications Company Financial and Operating Data (1) (unaudited) For the quarter ended For the year ended December 31, December 31, --------------------------- % -------------------------- % (Amounts in thousands, except operating data) 2006 2005 Change 2006 2005 Change -------------------------------------- ------------------------------------ TELECOMMUNICATIONS Select Income Statement Data Revenue Local services $ 199,729 $ 205,405 -3% $ 809,584 $ 829,685 -2% Data and internet services (3) 111,378 98,127 14% 424,209 365,613 16% Access services (2) (3) 107,147 118,123 -9% 427,959 431,339 -1% Long distance services 36,493 40,406 -10% 153,272 169,496 -10% Directory services 28,423 28,225 1% 114,138 113,092 1% Other 21,226 27,077 -22% 96,205 107,816 -11% Total revenue 504,396 517,363 -3% 2,025,367 2,017,041 0% Expenses Network access expense 49,836 40,224 24% 171,247 156,822 9% Other operating expenses 177,284 185,154 -4% 722,803 742,620 -3% Stock based compensation 2,380 1,994 19% 10,340 8,427 23% Depreciation and amortization 117,923 124,705 -5% 476,487 520,204 -8% Total expenses 347,423 352,077 -1% 1,380,877 1,428,073 -3% Operating Income $ 156,973 $ 165,286 -5% $ 644,490 $ 588,968 9% Other Financial and Operating Data Access lines (4) 2,126,574 2,237,539 -5% 2,126,574 2,237,539 -5% High-speed internet subscribers (4) 393,184 318,096 24% 393,184 318,096 24% Switched access minutes of use (in millions) 2,434 2,705 -10% 10,227 11,225 -9% Average monthly revenue per average access line (4) $ 78.49 $ 76.61 2% $ 77.25 $ 73.40 5% (1) See footnote (1) on the first page. (2) For the quarter ended December 31, 2005, access services included approximately $10.0 million of USF subsidy revenue received in that period due to a late filing. (3) See attached schedule for reconciliation of the revenue reclassification of special access revenue from Access services to Data and internet services. (4) Prior year data has been restated to conform to current period presentation.
Citizens Communications Company Condensed Consolidated Balance Sheet Data (1) (Amounts in thousands) December 31, 2006 December 31, 2005 --------------------- -------------------- ASSETS ------ Current assets: Cash and cash equivalents $ 1,041,106 $ 263,749 Accounts receivable and other current assets 231,887 243,270 Assets of discontinued operations - 162,716 --------------------- -------------------- Total current assets 1,272,993 669,735 Property, plant and equipment, net 2,983,504 3,058,312 Other long-term assets 2,534,708 2,699,520 --------------------- -------------------- Total assets $ 6,791,205 $ 6,427,567 ===================== ==================== LIABILITIES AND EQUITY ---------------------- Current liabilities: Long-term debt due within one year $ 39,271 $ 227,693 Accounts payable and other current liabilities 386,372 367,800 Liabilities of discontinued operations - 46,266 --------------------- -------------------- Total current liabilities 425,643 641,759 Deferred income taxes and other liabilities 846,775 748,869 Long-term debt 4,460,755 3,995,130 Stockholders' equity 1,058,032 1,041,809 --------------------- -------------------- Total liabilities and equity $ 6,791,205 $ 6,427,567 ===================== ==================== (1) See footnote (1) on the first page.
Citizens Communications Company Condensed Consolidated Cash Flow Data (1) (unaudited) (Amounts in thousands) For the year ended December 31, --------------------------------------- 2006 2005 ----------------- ------------------ Cash flows provided by (used in) operating activities: Net income $ 344,555 $ 202,375 Deduct: Gain on sale of discontinued operations (71,635) (1,167) Income from discontinued operations (18,912) (13,266) Adjustments to reconcile income to net cash provided by operating activities: Depreciation and amortization expense 476,487 520,204 Gain on expiration/settlement of customer advances (3,539) (681) Loss on debt exchange 2,420 3,175 Stock based compensation 10,340 8,427 Other 89,467 100,101 ----------------- ------------------ Net cash provided by continuing operating activities 829,183 819,168 Cash flows from investing activities: Proceeds from sales of assets, net of selling expenses - 24,195 Proceeds from sale of discontinued operations 255,305 43,565 Securities sold - 1,112 Capital expenditures (268,806) (259,448) Other assets (purchased) distributions received, net 67,050 (139) ----------------- ------------------ Net cash provided (used) by investing activities 53,549 (190,715) Cash flows from financing activities: Long-term debt borrowings 550,000 - Debt issuance costs (6,948) - Long-term debt payments (227,693) (6,299) Issuance of common stock 27,200 47,550 Dividends paid (323,671) (338,364) Shares repurchased (135,239) (250,000) Other (264) (1,662) ----------------- ------------------ Net cash used by financing activities (116,615) (548,775) Cash flows of discontinued operations: Operating activities 17,833 27,500 Investing activities (6,593) (11,388) Financing activities - (134) ----------------- ------------------ Net cash provided by discontinued operations 11,240 15,978 Increase in cash and cash equivalents 777,357 95,656 Cash and cash equivalents at January 1, 263,749 168,093 ----------------- ------------------ Cash and cash equivalents at December 31, $ 1,041,106 $ 263,749 ================= ================== Cash paid during the period for: Interest $ 332,204 $ 318,638 Income taxes $ 5,365 $ 4,711 (1) See footnote (1) on the first page.
Schedule A Reconciliation of Non-GAAP Financial Measures (1) For the quarter ended December 31, For the year ended December 31, ---------------------------------------- -------------------------------------- (Amounts in thousands) 2006 2005 2006 2005 ----------------- --------------------- ------------------- ----------------- Net Income to Free Cash Flow; ----------------------------- Net Cash Provided by Operating Activities ----------------------------------------- Net income $ 63,911 $ 76,781 $ 344,555 $ 202,375 Add back: Depreciation and amortization 117,923 124,705 476,487 520,204 Income tax expense 23,576 10,215 136,479 75,270 Stock based compensation 2,380 1,994 10,340 8,427 Subtract: Cash paid (refunded) for income taxes (2,965) 2,476 5,365 4,711 Investment and other income (loss), net 14,070 2,419 82,443 12,979 Capital expenditures 105,450 93,081 268,806 259,448 Gain (loss) on sale of discontinued operations (444) - 71,635 1,167 ----------------- --------------------- ------------------ ------------------ Free cash flow 91,679 115,719 539,612 527,971 Add back: Deferred income taxes 28,138 45,535 132,031 100,636 Noncash (gains)/losses, net 2,057 9,690 (948) 20,282 Investment and other income (loss), net 14,070 2,419 21,015 12,979 Cash paid (refunded) for income taxes (2,965) 2,476 5,365 4,711 Capital expenditures 105,450 93,081 268,806 259,448 Subtract: Changes in current assets and liabilities (42,912) 20,820 (10,121) 23,162 Income tax expense 23,576 10,215 136,479 75,270 Stock based compensation 2,380 1,994 10,340 8,427 ----------------- --------------------- ------------------ ------------------ Net cash provided by operating activities $ 255,385 $ 235,891 $ 829,183 $ 819,168 ================= ===================== ================== ================== (1) See footnote (1) on the first page.
Schedule B Reconciliation of Non-GAAP Financial Measures (1) For the quarter ended December 31, For the year ended December 31, ------------------------------------- --------------------------------------- (Amounts in thousands) 2006 2005 2006 2005 ----------------- ------------------ ------------------ ------------------- Operating Cash Flow and ----------------------- Operating Cash Flow Margin -------------------------- Operating Income $ 156,973 $ 165,286 $ 644,490 $ 588,968 Add back: Depreciation and amortization 117,923 124,705 476,487 520,204 ----------------- ------------------ ------------------ ------------------- Operating cash flow $ 274,896 $ 289,991 $ 1,120,977 $ 1,109,172 ================= ================== ================== =================== Revenue(2) $ 504,396 $ 517,363 $ 2,025,367 $ 2,017,041 ================= ================== ================== =================== Operating income margin (Operating income divided by revenue) 31.1% 31.9% 31.8% 29.2% ================= ================== ================== =================== Operating cash flow margin (Operating cash flow divided by revenue) 54.5% 56.1% 55.3% 55.0% ================= ================== ================== ===================
(1) See footnote (1) on the first page. (2) For the quarter ended December 31, 2005, revenue included approximately $10.0 million of USF subsidy revenue received in that period due to a late filing.
Schedule C Revenue Reclassification During the fourth quarter of 2006, the Company changed its classification of certain revenues. Previously, non-switched or special access revenue (which is primarily comprised of DS-1s and DS-3s), was classified in Access Revenues. The Company has determined that this revenue is more appropriately classified in Data and Internet Services. Giving effect to this change, Access Revenues is now comprised of switched access and subsidies. Prior year data has been reclassified and is presented below for comparative purposes. For the quarter ended ------------------------------------------------------------------------------------ 2006 March 31, June 30, September 30, December 31, Total Year ---- -------------- --------------- ------------------ --------------- -------------- Access Services: As previously reported $ 160,968 $ 153,581 $ 154,838 Reclassification of special access to data and internet services (49,731) (48,971) (49,873) -------------- --------------- ------------------ As currently reported $ 111,237 $ 104,610 $ 104,965 $ 107,147 $ 427,959 ============== =============== ================== =============== ============== Data and Internet Services: As previously reported $ 50,358 $ 54,488 $ 59,410 Reclassification of special access from access services 49,731 48,971 49,873 -------------- --------------- ------------------ As currently reported $ 100,089 $ 103,459 $ 109,283 $ 111,378 $ 424,209 ============== =============== ================== =============== ============== 2005 ---- Access Services: As previously reported $ 156,824 $ 151,654 $ 145,417 $ 168,031 $ 621,926 Reclassification of special access to data and internet services (45,948) (47,612) (47,119) (49,908) (190,587) -------------- --------------- ------------------ --------------- -------------- As currently reported $ 110,876 $ 104,042 $ 98,298 $ 118,123 $ 431,339 ============== =============== ================== =============== ============== Data and Internet Services: As previously reported $ 38,609 $ 42,392 $ 45,806 $ 48,219 $ 175,026 Reclassification of special access from access services 45,948 47,612 47,119 49,908 190,587 -------------- --------------- ------------------ --------------- -------------- As currently reported $ 84,557 $ 90,004 $ 92,925 $ 98,127 $ 365,613 ============== =============== ================== =============== ==============
Schedule D Citizens Communications Company Operating Metrics In the fourth quarter of 2006 the Company revised its reporting of certain operating metrics to be consistent with those used by management to run the business. Prior year data being reported is consistent with that used by management internally on a daily basis and is presented below for comparative purposes. 2004 2005 ------------ ---------------------------------------------------------- December 31, March 31, June 30, September 30, December 31, ------------ ----------- ------------ -------------- ------------- Access Lines - ------------ Previously disclosed 2,320,772 2,298,510 2,275,465 2,245,088 2,218,570 Revised 2,336,423 2,316,535 2,295,267 2,265,247 2,237,539 ------------ ----------- ------------ -------------- ------------- Change 15,651 18,025 19,802 20,159 18,969 ============ =========== ============ ============== ============= High Speed Internet Customers - ----------------------------- Previously disclosed 212,277 242,768 267,270 290,228 311,416 Revised 220,313 250,477 274,333 297,751 318,096 ------------ ----------- ------------ -------------- ------------- Change 8,036 7,709 7,063 7,523 6,680 ============ =========== ============ ============== ============= 2006 --------------------------------------------------------- March 31, June 30, September 30, December 31, ----------- ------------ -------------- -------------- Access Lines - ------------ Previsouly disclosed 2,192,265 2,162,712 2,132,868 Revised 2,213,731 2,188,901 2,158,001 2,126,574 ----------- ------------ -------------- ============= Change 21,466 26,189 25,133 =========== ============ ============== High Speed Internet Customers - ----------------------------- Previously disclosed 330,832 350,411 362,698 Revised 341,452 358,851 373,489 393,184 ----------- ------------ -------------- ============= Change 10,620 8,440 10,791 =========== ============ ==============
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