CHARLOTTE, N.C., March 30, 2012 /PRNewswire/ -- FairPoint Communications, Inc. (Nasdaq CM: FRP) continues to improve its operations.
"We're making good operational gains and we are proud of the 8.4 percent gain in broadband subscribers in 2011 – the highest percentage gain among our industry peers," said FairPoint CEO Paul Sunu.
Earlier this month, FairPoint offered employees, who are members of the Communications Workers of America, an opportunity to take advantage of early retirement incentives. Forty-six employees were accepted for this voluntary retirement program, which takes effect March 30. The company believes this effort will result in expected annualized operating expense savings of approximately $3.8 million, with the full benefit realized in 2013. The company expects to provide severance or incentive payments of approximately $2.3 million.
Additionally, FairPoint is expecting to realize further savings by consolidating operational functions. Thirty-two non-represented employees will be leaving the company as their positions are eliminated. The expected result is annualized operating expense savings of approximately $2.8 million and severance payments of approximately $400,000.
"The telecommunications industry is transforming rapidly and FairPoint is positioning itself to compete," Sunu said. "We continue to be optimistic about our business strategy, including progress being made on the regulatory front. As we continue to align for the future, FairPoint is focused on our customers and the exciting challenges in the telecommunications marketplace."
About FairPoint Communications, Inc.
FairPoint Communications, Inc. (NasdaqCM: FRP) 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 network, FairPoint delivers affordable data and voice networking communications solutions to residential, business and wholesale customers. FairPoint delivers VantagePoint(SM) services through its resilient IP-based network in northern New England. This state-of-the-art network provides Ethernet connections that support video conferencing, e-learning and other broadband based applications. Additional information about FairPoint products and services is available at www.FairPoint.com. You can also connect with FairPoint on Twitter (http://www.twitter.com/myfairpoint) and Facebook (http://www.facebook.com/myfairpoint).
Cautionary Note Regarding Forward-looking Statements
Some 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.
SOURCE FairPoint Communications, Inc.