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Q: Revenue losses due to natural disasters. Examples and case studies. ( Answered,   0 Comments )
Question  
Subject: Revenue losses due to natural disasters. Examples and case studies.
Category: Business and Money
Asked by: broadwave-ga
List Price: $100.00
Posted: 25 Jun 2006 20:15 PDT
Expires: 25 Jul 2006 20:15 PDT
Question ID: 741039
I am looking for at least 5 examples or case studies of companies that
had significant (>$1million) revenue losses due to the impact of
natural disasters over the last few years.  Please include examples
that both include and DO NOT include losses related to Hurricane
Katrina.

I want to know what specific companies suffered the losses and how
much the losses were for each company.

I am only looking for cases where the loss was caused by lack of
communication (telephone, data, internet) capability.

Ideally, all cases should be the result of hurricane events.  But
other events may also prove useful.
Answer  
Subject: Re: Revenue losses due to natural disasters. Examples and case studies.
Answered By: pafalafa-ga on 20 Jul 2006 07:54 PDT
 
broadwave-ga,


Here you go, based on company reports to the SEC:



http://www.sec.gov/Archives/edgar/data/732713/000110465906032040/a06-11356_1425.htm
05/08/2006
AT&T/BellSouth Merger Benefits in Mississippi

...BellSouth will spend an estimated $700 million to $900 million in
the Gulf Coast region to restore the wireline network damaged by
Hurricane Katrina.



http://www.sec.gov/Archives/edgar/data/1091667/000109166705000184/body.htm#mda
Charter Communications, Inc. 
September 30, 2005 

...Certain of the Company's cable systems in Louisiana suffered
significant plant damage as a result of hurricanes Katrina and Rita.
Based on preliminary evaluations, the Company wrote off $19 million of
its plants' net book value.



http://www.sec.gov/Archives/edgar/data/783005/000095013405018952/c98947e10vq.htm#107
EMMIS COMMUNICATIONS CORPORATION
August 31, 2005

...Our television station in New Orleans, Louisiana, WVUE, was
significantly affected by Hurricane Katrina and the subsequent
flooding of New Orleans. The flooding of New Orleans caused
significant property damage at WVUE. Although the extent of the damage
is still undetermined, Emmis believes that it is fully insured for all
property losses resulting from Katrina and subsequent flooding. Since
Emmis believes recovery of insurance proceeds under its relevant
policies is probable, no adjustments to the carrying values of WVUE
property were made as of August 31, 2005. Additionally, the Company
recorded a $1.3 million reserve against WVUE accounts receivable due
to the impact of the flooding on the local economy.



http://www.sec.gov/Archives/edgar/data/1098659/000095012304013249/y68373e10vq.htm#108
Mediacom Communications Corporation 
September 30, 2004 

Hurricane Losses 

...On September 16, 2004, Hurricane Ivan impacted the Company's
systems in Alabama, Florida and Mississippi. As a result, for the
three month period ended September 30, 2004, the Company: (i) incurred
additional service costs of approximately $0.8 million; (ii) incurred
additional selling, general and administrative costs of approximately
$0.2 million, and (iii) recorded an increase in depreciation expense
of $2.1 million due to the impairment of cable plant and equipment.
The Company is insured against certain losses related to the
hurricane, subject to varying deductible amounts. The Company cannot
estimate at this time the amounts that will be ultimately recoverable
under its insurance policies.


...On September 16, 2004, as a result of Hurricane Ivan, our cable
systems in areas of Alabama, Florida and Mississippi experienced, to
varying degrees, damage to cable plant and other property and
equipment, business interruption and loss of customers. The hurricane
initially disrupted cable service to over 100,000 of our basic
subscribers in these three states. Our results of operations for the
three and nine months ended September 30, 2004 take into account lost
revenues and incremental costs caused by the hurricane. In addition,
we estimate that, as of September 30, 2004, the hurricane caused
losses of 8,000 basic subscribers, 2,000 digital customers and 1,000
data customers. These losses are reflected in our subscriber and
customer counts as of September 30, 2004.

...The revenue impact and the costs incurred during the third quarter
are reflected in our consolidated financial statements, and are
detailed as follows: (a) revenues were recorded net of $2.9 million of
service interruption credits issued to customers; (b) service costs
included $0.8 million of incremental costs to cover the repair of our
facilities, the use of outside contractors to help repair cable plant
and increased employee costs; (c) selling, general and administrative
expenses included incremental costs of $0.2 million related to
additional customer service employee costs required to support
customers' needs; and (d) depreciation expense included $2.1 million
due to an impairment of cable plant and other property and equipment.
In addition, we estimate that we will spend about $6.0 million of
capital expenditures to replace or rebuild property, plant and
equipment damaged by Hurricane Ivan.




http://www.sec.gov/Archives/edgar/data/1098659/000095012305013359/y14307e10vq.htm#108
Mediacom Communications Corporation 
September 30, 2005 

 Hurricane Losses 

...In July and August 2005, Hurricanes Dennis and Katrina impacted the
Company's systems in Alabama, Florida, and Mississippi, initially
affecting about 45,000 and 55,000 basic subscribers, respectively. As
of September 30, 2005, the Company estimated that these hurricanes
resulted in the loss of approximately 9,000 basic subscribers, 2,000
digital customers and 1,000 data customers. As a result, for the three
month period ended September 30, 2005, the Company: (i) recorded
revenues that reflected $0.6 million of service interruption credits
issued to customers, $0.7 million of lost revenues from customers
whose homes were destroyed or otherwise rendered uninhabitable and
$0.2 million of lost revenues in the advertising sales business; (ii)
incurred additional service costs of approximately $0.5 million to
cover the repair of the Company's facilities, including increased
employee and outside contractor costs; (iii) incurred additional
selling, general and administrative costs of approximately $0.3
million related to additional customer service employee costs required
to support customers' needs; and (iv) recorded an increase in
depreciation expense of $0.6 million due to the impairment of cable
plant and equipment. Subsequent impairment charges may result when the
Company completes its assessment of the damage. In addition, the
Company spent $4.1 million of capital expenditures to replace or
rebuild property, plant and equipment damaged by these hurricanes
during the three months ended September 30, 2005.


...In July and August 2005, as a result of Hurricanes Dennis and
Katrina, our cable systems in areas of Alabama, Florida, and
Mississippi experienced, to varying degrees, damage to their cable
plant and other property and equipment, service interruption and loss
of customers. Some of our customers' homes in these areas also
sustained varying levels of damage, including certain homes in the
Mississippi area that were totally destroyed. Hurricanes Dennis and
Katrina initially disrupted cable service to about 45,000 and 55,000
of our basic subscribers, respectively, in these states. We estimate
that, as of September 30, 2005, the hurricanes caused losses of
approximately 9,000 basic subscribers, 2,000 digital customers and
1,000 data customers, which were reflected in our subscriber and
customer counts as of September 30, 2005. We are currently providing
service to substantially all of the surviving households in the
affected communities, and we expect to recover a portion of these lost
customers as they return to the region to rebuild or repair their
homes. We anticipate that some customers will move back into their
homes or into temporary housing on their properties while repairs or
rebuilding are under way, and potentially reconnect or reactivate our
service at that time.

...Our results of operations for the three and nine months ended
September 30, 2005 take into account service interruption credits,
lost revenues and incremental costs caused by these hurricanes.
Revenues for the three and nine months ended September 30, 2005
reflected approximately $0.6 million of service interruption credits
issued to customers, $0.7 million of lost revenues from customers
whose homes were destroyed or otherwise rendered uninhabitable and
$0.2 million of lost revenue in the advertising sales business. We
also incurred incremental service costs of approximately $0.5 million
to cover the repair of our facilities, including increased employee
and outside contractor costs; incremental selling, general and
administrative costs of approximately $0.3 million related to
additional customer service employee costs required to support
customers' needs; and $0.6 million of additional depreciation expense
due to the impairment of the cable plant and other property and
equipment. Subsequent impairment charges may result as we complete our
assessment of the damage. Capital expenditures to rebuild our cable
plant and facilities and restore our service were approximately $4.1
million for the three and nine months ended September 30, 2005.



http://www.sec.gov/Archives/edgar/data/1111590/000111159004000048/f10q0904.txt
MADISON RIVER CAPITAL, LLC
September 30, 2004

...The Company's rural local exchange company located in Foley,
Alabama provides service to the Gulf Coast area of Alabama from the
western border of the Florida panhandle to the East side of Mobile
Bay, including the coastal communities of Gulf Shores, Orange Beach
and Fort Morgan where a hurricane came ashore in September 2004. 
Although the Company's central office, remote switch locations,
business offices and administrative facilities incurred only minimal
damage from the hurricane, more substantial damage was incurred in
certain outside plant facilities, primarily its transmission and
distribution plant in the coastal areas.  The Company has evaluated
the extent of the damage to its properties and is repairing or
rebuilding, where necessary, its damaged facilities.  Accordingly, the
Company has accrued approximately $1.7 million in the third quarter of
2004 for estimated building and equipment repairs, restoration of
services to customers and other hurricane-related expenses.  In
addition, the Company anticipates making capital expenditures of
approximately $2.5 million, the majority of which will replace damaged
transmission and distribution facilities.



http://www.sec.gov/Archives/edgar/data/65873/000006587305000108/form10q11805.htm#Item2
ALLTEL CORPORATION 
September 30, 2005

...The increases in both 2005 periods attributable to the wireless
operations were partially offset by a reduction in wireline segment
income, reflecting the decline in wireline access lines discussed
above and incremental operating expenses associated with Hurricane
Katrina. During the third quarter of 2005, Alltel incurred $10.2
million of incremental costs related to Hurricane Katrina consisting
of increased long-distance and roaming expenses due to providing these
services to affected customers at no charge, system maintenance costs
to restore network facilities and additional losses from bad debts.
These incremental costs, which are included in corporate expenses,
also included Company donations to support the hurricane relief
efforts. Operating income comparisons for the three and nine month
periods of 2005 were also affected by the effects of restructuring and
other charges, as further discussed below. The changes in wireless and
wireline in 2005 are further discussed below under ?Results of
Operations by Business Segment?.

...The increase of $11.6 million in other income, net for the three
month period of 2005 included $5.0 million of insurance proceeds
received to offset expenses incurred by the Company related to
Hurricane Katrina, as previously discussed.



====================

I trust the examples above will fully meet your needs.  But if there
is anything else I can do for you, please let me know by posting a
Request for Clarification, and I'm at your service.

All the best,

pafalafa-ga


search strategy -- Searched the SEC EDGAR database for combinations of terms:

hurricane

communications

telephone service

damage

interruption

wireless

wireline

internet
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