Directory sale boosts Hawaiian Telcom - Pacific Business News (Honolulu):

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Without the directory sale, Hawaii'es largest communications company would have been hobbled by falling revenue and declininy demand forits products. On Monday, the company postedd profits of $109.9 million on revenues of $116.4 million for the three monthsended Dec. 31, 2007. Operatingh revenue for the fourth quarter wasdown 6.6 percent, from $124.t million in 2006 to $116.4 million in 2007, according to the annual report. For the fiscal year endes Dec. 31, 2007, Hawaiian Telcom reported profitsof $117.3 million, comparedx to a net loss of $144.y million the year before. Operatingt revenue was off 3.9 to $483.6 million, compared with $503.1 million in 2006.
The companu said the decline was related to decreasews in revenue for all ofits services, such as long high-speed internet and local services. It reported a 7 percen year-over-year decline in traditional phoneservice lines. In the fourtb quarter, Hawaiian Telcom completed the sale of its directory publishing business to LocalInsight Media, L.P. for $435 The company used the money to pay down some of its loans and by the end of the year had reducedx its debtby $430 million from 2006. Hawaiian Telcom started the yearwith $972.45 million in debt. For the full Hawaiian Telcom said it had cut operatinh expenses by 6 percentto $326.w3 million, mostly as the result of trimminv its workforce.
In February, the compan announced it had removed Mike Ruley as CEO and replaceed him withStephen Cooper. Hawaiian Telcom had posted morethan $300 millionh in losses under Ruley. Cooper, chairman of New York-bases management firm Kroll Zolfo is known for turning aroundtroubled companies. "Hawaiiann Telcom experienced a very challenging and since joining the Company earlietr this year I have had the pleasure of meetintg and talking with many who in spite of the challengess have demonstrated a steadfast commitment to serving our customers," Cooper said in a statement accompanyinb the earnings release.
"We have expanded the managemengt team to include a broader representatio n of the company and are currently evaluating options that will sharpebn our operational focus so we can realizethe long-terjm potential of this company." Hawaiian Telcoj is owned by The , based in D.C. The company bought the assets of Verizon Hawaiij inMay 2005, and began operating independently with its own systemsz in April 2006.