Adelphia posts $282.83 million 2005 operating income

By Caroline Salls

Pittsburgh, March 29 - Adelphia Communications Corp. reported $282.83 million in operating income for 2005 on revenues of $4.36 billion, according to a 10-K filing with the Securities and Exchange Commission.

The number show a significant improvement over 2004, when the company posted a $165 million operating loss on revenues of $4.14 billion.

Adelphia said increased revenue can be attributed to a $250 million cable revenue increase as a result of higher rates for basic and expanded basic service tiers, new product offerings and media services.

However, the filing said the positive impact of higher rates for basic and expanded basic service tiers was partially offset by a decrease in basic subscriber base.

The net income for 2005 was $34.66 million, compared with a $1.91 billion 2004 net loss.

Cash and cash equivalents for 2005 were $389.84 million, up from $338.91 million the previous year.

Adelphia said it is attempting to improve its operating results by increasing revenue while containing, and wherever possible, reducing expenses and capital expenditures.

According to the filing, the company recognized a $457.73 million net benefit from its settlement with the Rigas family in June 2005, which was recorded as other income (expense).

As a result, other income (expense) was recorded at $494.98 million in 2005, compared with $11,000 in 2004.

Adelphia, a Greenwood Village, Colo.-based cable operator, filed for bankruptcy on June 25, 2002 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 02-41729.

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