US LEC, a competitive carrier based in Charlotte, N.C., and serving the business community throughout 15 states, provided its fourth-quarter and year-end earnings this week and boasted a $45 million increase from 2003.

With 5500 new business class customers throughout the year, mostly through organic growth rather than acquisition, US LEC raised its yearly earnings by 15% to $356.2 million. Data revenue for the year reached $92 million and accounted for 26% overall. “2004 was a year of strong execution and results for US LEC, said Aaron Cowell, president and CEO of US LEC.

The company sustained an average monthly churn rate of 0.7% and ended the year with cash reserves of $48 million despite the acquisition of StarNet, a nationwide provider of dial-up Internet access and telephony services to ISPs. US LEC also acquired broadband and dial-up Internet access, co-location and managed hosting provider FASTNET at the close of 2003.

The company also added several new services throughout the year, which helped drive its customer base up 33% over last year to approximately 22,000.

US LEC launched a VoIP product known as Dynamic T as well as a managed router service, data center collocation services, Multi-Link FAST Pipe and other data products.

Cowell said that the recent Triennial Review Remand Order regarding UNE-P will not affect the business.

“The new rules affect dark fiber, UNE-P and the availability of transport and loops on an unbundled basis,” Cowell said. “As a result, the order does not directly pose a significant obstacle for our business model.”

He said that US LEC does not use dark fiber or UNE-P anywhere in the network and the UNE-P loops represent only 12% of the company’s deployed loops. He clarified that where UNE-P loops remain a viable option, US LEC will continue to invest.

The company’s net loss attributable to common shareholders was $35.7 million, or $1.19 per share (basic and diluted.) Revenues for the fourth quarter (ended Dec. 31, 2004) totaled $92.1 million, compared with $79.7 million for the quarter ended Dec. 31, 2003, and $87.3 million for the quarter ended Sept. 30, 2004. Michael Robinson, executive vice president and chief financial officer of US LEC, announced his resignation. He will take over as CEO of Broadview Networks.