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Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACT: Timothy W. Henry
Phone: (704) 344-8150
E-mail: [email protected]
FAIRPOINT COMMUNICATIONS SOLUTIONS CORP.
ANNOUNCES CONSOLIDATION OF OPERATIONS
CUSTOMERS WILL NOT BE IMPACTED
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CHARLOTTE, N.C. (Dec. 18, 2000) - FairPoint Communications
Solutions Corp. (Solutions), a subsidiary of FairPoint Communications, Inc.
(FairPoint), today announced organizational changes to its operations and sales
offices, including closing facilities in several states.
Operation centers in Birmingham, Ala., and Dallas, Texas, will be
closed and consolidated to Solutions' central facility in Albany, N.Y. Solutions
will also close 15 of 41 district sales offices, including all those in the
Southeast and Southwest. Approximately 365 employee positions are being
eliminated by the consolidation.
The changes announced will have no effect on the customers in the
17 states served by Solutions, which offers a wide array of communications
services, including local, long distance, Internet and data services to
businesses and organizations in smaller markets.
Citing current market and financial trends, Jack Thomas, Chairman
and CEO of FairPoint Communications, Inc., said, "This consolidation is a
prudent response to recent significant changes in financial market conditions.
Our focus is on redirecting our energies from rapid market growth to high
quality revenue growth from existing markets. We believe this will allow us to
reach profitability sooner, preserve capital resources and enhance our presence
in existing markets. This new direction is intended to put Solutions in a much
stronger position to achieve its long-term goals of being the provider of choice
in the markets we serve."
Mr. Thomas added that Solutions is continuing to evaluate the
efficiency of its structure at the Albany operation center and at Solutions'
headquarters in Charlotte, N.C.
The costs associated with the consolidation of facilities will be
reflected in FairPoint's fourth quarter financial statements.
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FairPoint Communications Solutions Corp. is a subsidiary of
FairPoint Communications, Inc., an integrated communications provider offering
bundled services, such as local dial tone, intrastate and interstate access,
long distance, enhanced services, Internet services, data and other related
communications services to customers in rural communities. FairPoint was founded
in 1993 to take advantage of consolidation opportunities in the highly
fragmented rural market of the telecommunications industry. FairPoint currently
serves more than 335,000 access lines.
Solutions was created in 1998 as a competitive communications
business to serve business customers primarily in small urban markets adjacent
to FairPoint's existing rural telephone properties. To complement its
traditional telephone company business and to take advantage of growing market
opportunities, FairPoint initiated its Solutions business to compete with
incumbent carriers in its target markets.
The statements in this news release that are not historical facts
are forward-looking statements that are subject to material risks and
uncertainties. Investors are cautioned that any such forward-looking statements
are not guarantees of future performance or results and involve risks and
uncertainties, and that actual results or developments may differ materially
from those in the forward-looking statements as a result of various factors
which are discussed in previous FairPoint Communications, Inc., filings with the
Securities and Exchange Commission. These risks and uncertainties include, but
are not limited to, uncertainties relating to economic conditions, acquisitions
and divestitures, growth and expansion risks, the availability of equipment,
materials, inventories and programming, product acceptance, and the ability to
construct, expand and upgrade its services and facilities. FairPoint does not
undertake to update any forward-looking statements in this news release or with
respect to matters described herein.
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