2010 Annual Report 2010 Highlights Outlook for 2011 Board of Directors Corporate Officers In October, Hawaiian Telcom emerged Looking forward, I am confident we can Richard A. Jalkut Steven C. Oldham Eric K. Yeaman Bradley J. Fisher from chapter 11 bankruptcy. Upon emerging, continue to make progress transforming the Chairman President and President and Senior Vice President – the company’s capital structure was company and profitably growing the business. significantly improved, reflecting a reduction By keeping our customers at the center of Hawaiian Telcom Holdco, Inc. Chief Executive Officer Chief Executive Officer Strategy and Marketing in debt from approximately $1.15 billion everything we do and remaining focused on President and SureWest Communications prior to reorganization, to $300 million post- delivering superior service, we will differentiate Chief Executive Officer John T. Komeiji Craig T. Inouye reorganization. ourselves from our competition. U.S. TelePacific Corp. (dba Bernard R. Phillips III Senior Vice President Senior Vice President – Sales Emergence also provided us with an In the consumer channel, Hawaiian Telcom TV TelePacific Communications) President and and General Counsel opportunity to refresh our identity in the will be launched in specific target markets Chief Executive Officer, Retired Rose M. Hauser marketplace. In November, we rebranded on Oahu. The launch will bring Hawaii Hawaiian Telcom, introducing an energetic new families real choice, convenience, ease of Kurt M. Cellar National Rural Robert F. Reich Senior Vice President and look and feel, and a customer pledge to be use and a superior value for their home video President Telecommunications Senior Vice President and Chief Information Officer “Always on.” The campaign is supportive of our entertainment. With Hawaii’s most advanced Corner Pocket Investors, LLC Cooperative Chief Financial Officer vision to be the number one service provider TV service, our compelling triple-play bundle of innovative, always on communication, will improve customer acquisition, winbacks, Walter A. Dods, Jr. Eric K. Yeaman Michael F. Edl information, and entertainment solutions to the and retention, increasing our market share in Chairman President and Senior Vice President – To Our Shareholders, people and businesses of Hawaii. this segment. In further support of that vision, the In the business channel, we will continue Alexander & Baldwin, Inc. Chief Executive Officer Network Services Customers and Employees: completion of our reorganization allowed us to to migrate customers to our new IP-based Hawaiian Telcom Holdco, Inc. proceed with submitting an application for a services to improve retention and increase up- Warren H. Haruki video franchise for the island of Oahu. Our next sell opportunities. We will also continue to build Aloha, and welcome to our first annual President and report as a publicly traded company. 2010 was generation television service is critical to our and enhance our suite of IP-based services as an exciting and challenging year for Hawaiian strategy to win the home and capture a piece we transition to being a full-service, integrated Chief Executive Officer Telcom, and culminated with our successful of the significant TV and entertainment market solutions provider giving us greater customer Grove Farm Company, Inc. emergence from chapter 11 bankruptcy and opportunity that we currently do not address. acquisition and winback opportunities. our launch as a publicly traded company. Our Finally, due to the reach and reliability of our common stock began trading on the over-the- network, we are also able to address significant counter market and we hope to transition soon “We have opened growth opportunities in the wholesale Shareholders Information Transfer Agent to The NASDAQ Stock Market. Since we began channel. We are working with several of Corporate Headquarters For inquiries regarding registered shareholder accounts, trading, our stock has increased from a plan of the largest wireless carriers to meet their Hawaiian Telcom Holdco, Inc. please contact our transfer agent: reorganization value of $16 to $26 per share a new chapter in our demand for increased network capacity due at February 28, 2011, and we are pleased that to the explosion in wireless data usage from 1177 Bishop Street value has been created for our shareholders. company’s history smartphones and tablet devices. Honolulu, HI 96813 BNY Mellon Shareowner Services While our company is new to the public with a renewed With improved financial flexibility and a www.hawaiiantel.com P.O. Box 358035 equity markets, we are no stranger to the solid management team, along with our focus Pittsburgh, PA 15252-8035 communications industry and the marketplace on delivering superior customer service, sense of purpose.” Mailing Address Phone: 1-877-429-2835 in which we operate. Originally incorporated in we are well-positioned to grow market 1883 as Mutual Telephone Company, we are a share and capitalize on new opportunities P.O. Box 2200 (between 9 a.m. and 7 p.m. Eastern Time weekdays) customer-focused communications company Despite the challenging economic in the marketplace. At the same time, we Honolulu, Hawaii 96841 Email: [email protected] proudly serving the people and businesses of environment and the overhang of bankruptcy, are committed to delivering better financial (Please reference Hawaiian Telcom in the email.) Hawaii for more than 125 years. we produced stable revenue and adjusted performance and increasing shareholder value. Common Stock www.bnymellon.com/shareowner/equityaccess With our emergence from chapter 11, we EBITDA of $401 million and $114 million, Conclusion Symbol: HWLT have opened a new chapter in our company’s respectively. Our stable revenue performance As we move forward in writing a new Traded over the counter Investor Relations Contact history with a renewed sense of purpose. of approximately $100 million over the past chapter in our company’s proud history, I would As we embark on this new beginning, I want six quarters is notable given many companies Other inquiries about Hawaiian Telcom may be directed to: like to thank our employees again for their to welcome our new shareholders and also in our industry have experienced revenue Brian Tanner tireless contributions. The key to our future thank our employees, whose hard work and declines. Revenue stability was driven by success lies in our people. Director of Investor Relations dedication have enabled us to accomplish so growth from our new IP-based services While we are energized by the opportunities, Phone: (808) 546-3442 much over this past year. and higher demand for network capacity we recognize there are still significant Email: [email protected] I would also like to welcome our new from wireless carriers, and slower decline in challenges that lie ahead, so we are ready Board of Directors and thank them for their local services revenues as a result of a 29% to make tough decisions and take actions leadership. Their in-depth knowledge of the improvement in the rate of net access line loss. Independent Registered Public Accounting Firm throughout the year that will create shareholder company and the local community and their vast Throughout the year, we continued to make value and build a stronger company for our Deloitte & Touche LLP experience in the communications industry significant improvements to our network employees, our customers and our community. Honolulu, Hawaii are invaluable assets, and I look forward and systems, while maintaining a disciplined Thank you for your continued support and to working with them to build a successful approach to capital deployment. We spent confidence in Hawaiian Telcom. company. approximately $79 million in capital expendi- As you examine the report, I think you tures, a 10% decrease from the prior year, with will see why we believe our recent efforts three quarters of our capital investments being have stabilized the business and positioned directly for growth and expansion. the company for growth, and why we are These are some of the transformative mea- Eric K. Yeaman extremely excited at the future prospects for sures we took during 2010 to continue building President and CEO, Hawaiian Telcom. a platform for success over the long term. Hawaiian Telcom UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) ፤ ANNUAL REPORT PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2010 OR អ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 000-54196 HAWAIIAN TELCOM HOLDCO, INC. (Exact name of registrant as specified in its charter) Delaware 16-1710376 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1177 Bishop Street Honolulu, Hawaii 96813 (Address of principal executive offices) (Zip Code) 808-546-4511 (Registrant’s telephone number, including area code) Securities to be registered pursuant to Section 12(b) of the Act: None Securities to be registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.01 per share (Title of class) Indicate by check mark if the registrant is a well-known seasoned issuer as defined in Rule 405 of the Securities Act. Yes No ፤ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No ፤ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No អ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).