FairPoint Communications Inc. reported fourth quarter earnings of 60 cents per share, according to a filing with the Securities and Exchange Commission on Monday, which was below analyst estimates.

Revenue for the quarter was $203.9 million, down from $209.8 million the previous year fourth quarter. The full 2016 year revenue was $824.4 million.

Net income for the 2016 fourth quarter was $16.0 million, or 60 cents per share, down significantly from the fourth quarter 2015 net income of $42.3 million. Analysts were expecting earnings of 92 cents per share.

For the fourth quarter, operating expenses for the broadband communications operator increased $32.9 million to $107.2 million, up from $74.2 million in the third quarter 2016. The company attributed this increase to merger expenses, lower amortization of benefits, and higher severance costs.

For the 2016 year, FairPoint had 2,492 employees, down 226 from 2015.

Capital expenditures increased to $34.1 million for the quarter, up from $33.2 million the prior year same period. Net cash from operating expenditures for the quarter were $37.8 million, down from $44.5 million the prior year fourth quarter.

“Our continued focus on providing excellent customer service, investing strategically in the network and developing relevant new products and services resulted in a solid fourth quarter and fiscal 2016,” said Paul Sunu, CEO. “We managed expenses well, improved performance and increased average revenue per user to deliver adjusted EBITDA and unlevered free cashfFlow within our guidance ranges.”

Moving ahead, the company is focused on driving growth revenue. During the fourth quarter, the company generated 32.9 percent of its total revenue in growth revenue, or $67.0 million. This number is up almost 30 percent from the fourth quarter 2015.

Consolidated Communications Holdings Inc. agreed to acquire FairPoint for $1.5 billion on Dec. 3, 2016, and the regulatory approval process is currently undergoing. The meeting to approve the merger for stockholders is March 28.

“We are excited to take the next step in our evolution as we work with Consolidated to consummate the recently announced merger,” said Sunu. “We are confident in the benefits this combination brings to our customers and other stakeholders, and our commitment is to ensure the process is seamless as we remain focused on strengthening our local roots in the markets we serve.”

The companies are targeting a mid-2017 closing of the merger. FairPoint will not have an investors call this period because of the pending merger.

For the full 2017 year, the company expects to generate about $105 million to $115 million in unlevered free cash flow and adjusted EBITDA of $245 million to $250 million.

FairPoint stock closed Friday at $15.85, the same as the opening for the day.