Press Releases

PAETEC Holding Corp. (NASDAQ GS: PAET) today announced fourth quarter 2008 and full year 2008 financial and operating results.

PAETEC Holding Corp. (NASDAQ GS: PAET) today announced fourth quarter 2008 and full year 2008 financial and operating results. "Despite broad economic turbulence we are pleased that our company generated strong free cash flow for fiscal year 2008 and for the 24th consecutive quarter," said PAETEC Chairman and CEO, Arunas A. Chesonis. "We expect to drive solid free cash flow again for fiscal year 2009 as we continue to leverage our national footprint and superior customer service model." Highlights of the 2008 fourth quarter and full year included the following:

• Fourth quarter revenue of $400.2 million, which represented a 38.7% increase over fourth quarter 2007 revenue of $288.6 million;
• Fourth quarter adjusted EBITDA* of $60.3 million, which represented a 8.2% increase over fourth quarter 2007 adjusted EBITDA of $55.7 million;
• Fourth quarter free cash flow* of $28.2 million, which represented the 24th consecutive quarter in which PAETEC or its predecessor generated positive free cash flow;
• Fourth quarter net loss of $114.4 million, which includes a $15.0 million non-cash adjustment to PAETEC's third quarter goodwill impairment charge estimate and the establishment of a non-cash tax reserve of approximately $104.3 million against PAETEC's deferred tax assets, compared to fourth quarter 2007 net income of $15.5 million;
• Fourth quarter net cash provided by operating activities of $80.6 million compared to fourth quarter 2007 net cash provided by operating activities of $62.6 million;
• The repurchase of 3.4 million shares of common stock for approximately $4.5 million in the fourth quarter; and
• A year-end cash balance of $164.5 million.