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FairPoint Communications (FairPoint Communications) Interest Coverage : 0 (At Loss) (As of Mar. 2017)


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What is FairPoint Communications Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. FairPoint Communications's Operating Income for the three months ended in Mar. 2017 was $-3.6 Mil. FairPoint Communications's Interest Expense for the three months ended in Mar. 2017 was $-20.4 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for FairPoint Communications's Interest Coverage or its related term are showing as below:


FRP's Interest Coverage is not ranked *
in the Telecommunication Services industry.
Industry Median: 4.47
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


FairPoint Communications Interest Coverage Historical Data

The historical data trend for FairPoint Communications's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

FairPoint Communications Interest Coverage Chart

FairPoint Communications Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - 2.10 2.77

FairPoint Communications Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.28 3.02 3.77 2.03 -

Competitive Comparison of FairPoint Communications's Interest Coverage

For the Telecom Services subindustry, FairPoint Communications's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


FairPoint Communications's Interest Coverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, FairPoint Communications's Interest Coverage distribution charts can be found below:

* The bar in red indicates where FairPoint Communications's Interest Coverage falls into.



FairPoint Communications Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

FairPoint Communications's Interest Coverage for the fiscal year that ended in Dec. 2016 is calculated as

Here, for the fiscal year that ended in Dec. 2016, FairPoint Communications's Interest Expense was $-82.7 Mil. Its Operating Income was $229.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $899.7 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2016 )/Interest Expense (A: Dec. 2016 )
=-1*229.345/-82.697
=2.77

FairPoint Communications's Interest Coverage for the quarter that ended in Mar. 2017 is calculated as

Here, for the three months ended in Mar. 2017, FairPoint Communications's Interest Expense was $-20.4 Mil. Its Operating Income was $-3.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $899.1 Mil.

FairPoint Communications did not have earnings to cover the interest expense.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


FairPoint Communications  (NAS:FRP) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


FairPoint Communications Interest Coverage Related Terms

Thank you for viewing the detailed overview of FairPoint Communications's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


FairPoint Communications (FairPoint Communications) Business Description

Traded in Other Exchanges
N/A
Address
521 East Morehead Street, Suite 500, Charlotte, NC, USA, 28202
FairPoint is the seventh- largest local telephone firm in the United States, following its acquisition of Verizon's northern New England assets. It operates in 18 states serving 1.4 million access lines, though nearly 90% of these are in Maine, New Hampshire, and Vermont. The firm was founded in 1991 and has its headquarters in Charlotte, N.C.
Executives
Peter D Aquino director MOTIENT CORP, 300 KNIGHTBRIDGE PARKWAY, LINCOLNSHIRE IL 60069
David L Treadwell director 222 S 15TH STREET, SUITE 600 N, OMAHA NE 68102
Edward D Horowitz director C/O EDSLINK LLC, 670 WEST END AVE, NEW YORK NY 10025
Wayne Wilson director 29 LAKE AVE., SUNAPEE NH 03782
Ajay Sabherwal officer: EVP & CFO C/O FAIRPOINT COMMUNICATIONS, INC., 521 E. MOREHEAD STREET, SUITE 500, CHARLOTTE NC 28202
Angelo Gordon & Co Lp/ny 10 percent owner 245 PARK AVENUE, 26TH FLOOR, NEW YORK NY 10167
Michael L Gordon 10 percent owner C/O ANGELO GORDON & CO, 245 PARK AVE 26TH FL, NEW YORK NY 10167
John M Angelo 10 percent owner C/O ANGELO GORDON & CO, 245 PARK AVE 26TH FL, NEW YORK NY 10167
Marathon Asset Management Lp 10 percent owner ONE BRYANT PARK, 38TH FLOOR, NEW YORK NY 10036
David L Hauser other: Former Officer and Director 704-731-1522, CHARLOTTE NC 28209-4674
Lehman Brothers Holdings Inc 10 percent owner 1271 AVENUE OF THE AMERICAS, NEW YORK NY 10020
Thl Equity Advisors Iv Llc 10 percent owner C/O THOMAS H. LEE PARTNERS, 100 FEDERAL STREET, 35TH FLOOR, BOSTON MA 02110
Thomas H. Lee Advisors, Llc 10 percent owner C/O THOMAS H. LEE PARTNERS, L.P., 100 FEDERAL STREET, 35TH FLOOR, BOSTON MA 02110
Frank K Bynum director, 10 percent owner C/O KELSO & CO, 320 PARK AVENUE 24TH FLOOR, NEW YORK NY 10022
Michael B Goldberg 10 percent owner

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