FairPoint Communications (FRP) Posts Q2 GAAP EPS of $1.49

FairPoint Communications (Nasdaq: FRP) reported Q2 EPS of $1.49, which may not compare with the analyst estimate of ($1.20). Revenue for the quarter came in at $214.1 million versus the consensus estimate of $214.63 million.

Adjusted EBITDA increased $2.0 million to $63.7 million in the second quarter of 2015 compared to Adjusted EBITDA minus Estimated Avoided Costs of $61.7 million in the first quarter of 2015. The increase was primarily driven by lower adjusted operating expenses.

The company commented, Net income was $40.3 million in the second quarter of 2015 compared to a net loss of $45.2 million in the first quarter of 2015. The change was primarily due to a decrease in operating expenses, excluding depreciation and amortization as described above, and, to a lesser degree, an income tax benefit in the second quarter compared to income tax expense in the first quarter. Net income is positive in the second quarter of 2015 largely due to the non-cash GAAP treatment for the change in the liability of the OPEB plan due to the elimination of post-employment health benefits for active employees. The impact of this treatment will continue for the remainder of 2015 and all of 2016, but we do not expect that it will impact our cash income taxes or change our accumulated federal net operating loss carryforwards.

For earnings history and earnings-related data on FairPoint Communications (FRP) click here.

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