Citizens posts operating loss; Graf to leave

Citizens Communications today reported a consolidated net loss of $89.7 million for fiscal 2001. The loss was affected in part by the write down of Global Crossing receivables of $21.2 million and the recognition of a $79 million decline in value of the company's investment in Adelphia Communications.

Operating income from continuing operations in 2001 was $233.0 million, an increase of $111.2 million or 91% above 2000 operating income of $121.8 million.

In announcing its year-end results, the company also said its vice chairman, president and COO Rudy Graf will leave the company at the completion of his three-year contract on July 1, though he will remain on the board of directors. Scott Schneider, vice chairman and executive vice president will take over the president and COO roles at that time.

“When Rudy first joined with me, his commitment to me was three years,” Leonard Tow, chairman and CEO of Citizens told analysts today. “At that time, which was the middle of 1999, three years seemed a long way away. When we patched together the new management team, Rudy and I determined at that time how the leadership would function when Rudy ceased his activities with the company.”

Before coming to Citizens, Graf was president and COO of Centennial Cellular.

“We all owe him a great debt as both employees and shareholders of this company,” Tow said of Graf.