-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SoZ6gRT/rdEstlWF0TkgkAyU4kk1H1IKY8Ur8UOH+1fkPREMCgBaUCYlFBXJfeeJ XMO7A5XzUxBcMW4mp3ikkA== 0000897101-96-000881.txt : 19961024 0000897101-96-000881.hdr.sgml : 19961024 ACCESSION NUMBER: 0000897101-96-000881 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961023 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: NEW ULM TELECOM INC CENTRAL INDEX KEY: 0000071557 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 410440990 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-03024 FILM NUMBER: 96646566 BUSINESS ADDRESS: STREET 1: 400 2ND ST N CITY: NEW ULM STATE: MN ZIP: 56073 BUSINESS PHONE: 5073544111 MAIL ADDRESS: STREET 1: P O BOX 697 CITY: NEW ULM STATE: MN ZIP: 56073 FORMER COMPANY: FORMER CONFORMED NAME: NEW ULM RURAL TELEPHONE CO DATE OF NAME CHANGE: 19840816 10QSB 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-QSB [X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1996 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT For the transition period from _______ to _______. Commission File Number 0-3024 New Ulm Telecom, Inc. (Exact name of small business issuer as specified in its charter) Minnesota 41-0440990 (State or other jurisdiction (IRS Employer Identification Number) of incorporation) 400 2nd Street North, New Ulm, MN 56073-0697 (Address of Principal executive offices) 507-354-4111 (Issuer's telephone number) Check whether the issue (1) Filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 __X__ No _____ APPLICABLE ONLY TO CORPORATE ISSUERS State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 1,732,455. NEW ULM TELECOM, INC. CONTENTS Page ---- PART I. Financial Information Unaudited Consolidated Balance Sheets 3 - 4 Unaudited Consolidated Statements of Income 5 - 6 Unaudited Consolidated Statements of Cash Flows 7 Notes to Unaudited Consolidated Financial Statements 8 Management's Discussion and Analysis of Financial Condition and Results of Operations 9 PART II. Other Information 10 NEW ULM TELECOM AND SUBSIDIARIES UNAUDITED CONSOLIDATED BALANCE SHEETS
ASSETS September 30, December 31, 1996 1995 ------------- ------------ CURRENT ASSETS: Cash & Temporary Cash Investments $ 2,021,926 $ 1,829,215 Receivables, Net of Allowance for Doubtful Accounts of $17,457 and $17,500 1,096,070 1,150,731 Inventories 551,052 370,462 Prepaid Expenses 39,429 91,589 ----------- ----------- Total Current Assets: 3,708,477 3,441,997 ----------- ----------- INVESTMENTS & OTHER ASSETS: Excess of Cost Over Net Assets Acquired 3,816,229 3,901,561 Notes Receivable, Less Current Portion of $13,279 and $16,827 79,633 15,734 Cellular Investments 2,778,951 2,089,167 Other 158,665 166,314 ----------- ----------- Total Investments and Other Assets 6,833,478 6,172,776 ----------- ----------- PROPERTY, PLANT & EQUIPMENT: Telecommunications Plant 23,877,743 23,248,747 Other Property & Equipment 1,282,146 1,276,946 Cable Television Plant 731,767 235,271 ----------- ----------- Total 25,891,656 24,760,964 Less Accumulated Depreciation 13,568,689 12,390,334 ----------- ----------- Net Property, Plant & Equipment 12,322,967 12,370,630 ----------- ----------- TOTAL ASSETS $22,864,922 $21,985,403 =========== =========== The accompanying notes are an integral part of the Financial Statements.
NEW ULM TELECOM AND SUBSIDIARIES UNAUDITED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDER'S EQUITY September 30, December 31, 1996 1995 ------------- ------------ CURRENT LIABILITIES: Current Portion of Long-Term Debt $ 366,666 $ 366,666 Accounts Payable 297,534 260,351 Accrued Income Taxes 42,164 (36,052) Other Accrued Taxes 43,084 57,372 Other Accrued Liabilities 289,139 265,143 ------------ ------------ Total Current Liabilities 1,038,587 913,480 ------------ ------------ LONG-TERM DEBT, Less Current Portion 4,125,000 4,400,000 ------------ ------------ DEFERRED CREDITS: Income Taxes 1,469,790 1,469,790 Investment Tax Credits 62,550 88,405 ------------ ------------ Total Deferred Credits 1,532,340 1,558,195 ------------ ------------ STOCKHOLDERS' EQUITY: Common Stock - $5 Par Value, 6,400,000 Shares Authorized, 1,732,455 Shares Issued and Outstanding 8,662,275 2,887,425 Retained Earnings 7,506,720 12,226,303 ------------ ------------ Total Stockholders' Equity 16,168,995 15,113,728 ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 22,864,922 $ 21,985,403 ============ ============ The accompanying notes are an integral part of the Financial Statements.
NEW ULM TELECOM AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995 1996 1995 ----------- ----------- OPERATING REVENUES: Local Network $ 515,507 $ 471,486 Network Access 1,163,024 1,071,915 Billing and Collection 131,478 158,163 Miscellaneous 93,514 103,131 Nonregulated 337,284 393,947 ----------- ----------- Total Operating Revenue 2,240,807 2,198,642 ----------- ----------- OPERATING EXPENSES: Plant Operations 277,827 273,434 Depreciation 407,983 393,433 Amortization 28,444 28,444 Customer 123,578 127,351 General and Administrative 279,153 276,805 Other Operating Expenses 198,611 216,501 ----------- ----------- Total Operating Expenses 1,315,596 1,315,968 ----------- ----------- OPERATING INCOME 925,211 882,674 ----------- ----------- OTHER EXPENSES (INCOME): Interest Expense 73,827 79,498 Interest Income (28,130) (35,966) Cellular Partnership (Income) Losses (141,646) (115,998) ----------- ----------- Total Other Expenses, Net (95,949) (72,466) ----------- ----------- INCOME BEFORE INCOME TAXES 1,021,160 955,140 ----------- ----------- INCOME TAXES 415,625 387,501 ----------- ----------- NET INCOME $ 605,535 $ 567,639 =========== =========== NET INCOME PER SHARE - NOTE 2 $ 0.35 $ 0.33 =========== =========== The accompanying notes are an integral part of the financial statements. NEW ULM TELECOM AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995 1996 1995 ----------- ----------- OPERATING REVENUES: Local Network $ 1,528,628 $ 1,391,715 Network Access 3,608,476 3,582,003 Billing and Collection 428,228 442,714 Miscellaneous 261,734 279,503 Nonregulated 986,039 977,770 ----------- ----------- Total Operating Revenue 6,813,105 6,673,705 ----------- ----------- OPERATING EXPENSES: Plant Operations 764,514 843,245 Depreciation 1,223,950 1,180,299 Amortization 85,332 85,332 Customer 389,189 397,762 General and Administrative 804,024 835,152 Other Operating Expenses 571,631 627,882 ----------- ----------- Total Operating Expenses 3,838,640 3,969,672 ----------- ----------- OPERATING INCOME 2,974,465 2,704,033 ----------- ----------- OTHER EXPENSES (INCOME): Interest Expense 225,976 243,576 Interest Income (98,266) (104,720) Cellular Partnership (Income) Losses (317,300) (311,547) ----------- ----------- Total Other Expenses, Net (189,590) (172,691) ----------- ----------- INCOME BEFORE INCOME TAXES 3,164,055 2,876,724 ----------- ----------- INCOME TAXES 1,288,759 1,164,672 ----------- ----------- NET INCOME $ 1,875,296 $ 1,712,052 =========== =========== NET INCOME PER SHARE - NOTE 2 $ 1.08 $ 0.99 =========== =========== The accompanying notes are an integral part of the financial statements. NEW ULM TELECOM AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995 1996 1995 ----------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 1,875,296 $ 1,712,052 Adjustments to Reconcile Net Income to Net Net Cash Provided by Operating Activities: Depreciation and Amortization 1,309,282 1,265,631 Cellular Partnerships (Income) Losses (317,300) (311,547) (Increase) Decrease in: Receivables 49,792 (106,286) Inventories (180,590) (64,863) Prepaid Expenses 52,160 46,693 Increase (Decrease) in: Accounts Payable 37,183 (27,136) Accrued Income Taxes 78,216 65,382 Other Accrued Taxes (14,288) (14,680) Other Accrued Liabilities 23,996 15,524 Deferred Investment Tax Credits (25,855) (33,711) ----------- ----------- Net Cash Provided by Operating Activities 2,887,892 2,547,059 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Additions to Property, Plant & Equipment, Net (1,176,287) (1,296,823) Change in Notes Receivable (59,030) 3,249 Cellular Investments (372,484) 226,812 Other, Net 7,649 (37,883) ----------- ----------- Net Cash Used in Investing Activities (1,600,152) (1,104,645) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Principal Payments of Long-Term Debt (275,000) (275,001) Dividends Paid (820,029) (744,955) ----------- ----------- Net Cash Used in Financing Activities (1,095,029) (1,019,956) ----------- ----------- NET INCREASE (DECREASE) IN CASH AND TEMPORARY CASH INVESTMENTS 192,711 422,458 ----------- ----------- CASH AND TEMPORARY CASH INVESTMENTS at Beginning of Period 1,829,215 1,433,772 ----------- ----------- CASH AND TEMPORARY CASH INVESTMENTS at End of Period $ 2,021,926 $ 1,856,230 =========== =========== The accompanying notes are an integral part of the financial statements.
NEW ULM TELECOM, INC. AND SUBSIDIARIES NOTES TO UNAUDITED FINANCIAL STATEMENTS NOTE 1 - CONSOLIDATED FINANCIAL STATEMENTS In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position as of September 30, 1996 and December 31, 1995 and the results of operations and changes in cash flows for the three months and nine months ended September 30, 1996 and 1995. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been omitted. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 1995 Annual Report to Shareholders. The results of operations for the period ending September 30, 1996 are not necessarily indicative of the operating results of the entire year. NOTE 2 - NET INCOME PER COMMON STOCK Net income per common share for 1996 and 1995 was computed by dividing the weighted average number of shares of common stock outstanding into the net income as adjusted for the three-for-one stock split on March 4, 1996. NOTE 3 - STATEMENTS OF CASH FLOW Supplemental Disclosures of Cash Flow Information: Cash paid during the period for: 1996 1995 ---------- ---------- Interest $ 227,454 $ 245,054 Income Taxes 1,236,000 1,133,000 NOTE 4 - THREE-FOR-ONE STOCK SPLIT On March 4, 1996, the Company's Board of Directors declared a three-for-one stock split, effected in the form of a stock dividend, to stockholders of record on March 4, 1996, payable on April 1, 1996. An amount equal to the par value of the additional 1,154,970 shares issued has been transferred from retained earnings to the common stock account. All per share amounts and references to the Company's common stock, except shares authorized, have been retroactively restated to reflect the stock split. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS NINE MONTHS ENDED SEPTEMBER 30, 1996 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER 30,1995 The increase in total operating revenues was $139,400 or 2.1%. The increase in operating revenues was primarily the result of an increase in the number of access lines causing an increase in local network revenues. Total operating expenses decreased by $131,032 or 3.3%. Operating income increased by $270,432 or 10.0%. Interest expense decreased by $17,600 due to a decrease in long-term debt outstanding. Interest income decreased by $6,454 because fewer funds available for investment. Cellular partnership income increased by %5,753 or 1.9%. Net income increased by $163,244 or 9.5%. LIQUIDITY AND CAPITAL RESOURCES The Company had an increase in cash and temporary cash investments of $192,711 for the quarter resulting in a balance of $2,021,926 as of September 30, 1996. The Company is budgeting approximately $1,800,000 for 1996 plant additions. The Company intends to use internal funds for all of the 1996 expenditures. Management believes the Company will be able to generate sufficient cash internally from operations to meet its operating needs and sustain its historical dividend levels. The Minnesota Department of Public Service has been reviewing rate of return levels for all independent telephone companies operating in Minnesota. The Company's wholly owned subsidiary, Western Telephone Company, reduced rates in 1992 as a result of return investigation. Management cannot predict if any future review process will have a significant impact on operating results. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K There were no reports on Form 8-K for the Quarter ended June 30, 1996. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. NEW ULM TELECOM, INC. (Registrant) Dated: October 23, 1996 By /s/ James P. Jensen ------------------------------------ JAMES P. JENSEN, PRESIDENT Dated: October 23, 1996 By /s/ Bill Otis ------------------------------------ BILL OTIS, EXECUTIVE VICE PRESIDENT EX-27 2 FINANCIAL DATA SCHEDULE
5 3-MOS DEC-31-1996 SEP-30-1996 2,021,926 0 1,096,070 17,457 551,052 3,708,477 25,891,656 13,568,689 22,864,922 1,038,587 4,125,000 0 0 8,662,275 7,506,720 22,864,922 0 6,813,105 0 3,838,640 (415,566) 0 225,976 3,164,055 1,288,759 1,875,296 0 0 0 1,875,296 1.08 1.08
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