-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, GSnKmU/Y28i03ZFmWpjpVeDta49H2/MxSnLYD/WHpKjF7j4aeihEMClZUkmLlXNN qXJYkyS3YFd330yp7pbzcg== 0000897101-95-000139.txt : 19950516 0000897101-95-000139.hdr.sgml : 19950516 ACCESSION NUMBER: 0000897101-95-000139 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 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: 95538843 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 March 31, 1995 [ ] 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 of incorporation) Identification Number) 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: 577,485 . 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 6 Notes to Unaudited Consolidated Financial Statements 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 8 PART II. OTHER INFORMATION 9 NEW ULM TELECOM AND SUBSIDIARIES UNAUDITED CONSOLIDATED BALANCE SHEETS ASSETS March 31, December 31, 1995 1994 CURRENT ASSETS: Cash & Temporary Cash Investments $ 2,286,387 $ 1,433,772 Receivables, Net of Allowance for Doubtful Accounts of $16,348 and $12,000 940,680 825,973 Inventories 400,695 402,036 Prepaid Expenses 56,641 76,481 Total Current Assets: 3,684,403 2,738,262 INVESTMENTS & OTHER ASSETS: Excess of Cost Over Net Assets Acquired 3,986,893 4,015,337 Notes Receivable, Less Current Portion of $16,659 and $16,827 20,304 17,831 Cellular Investments 1,946,928 1,943,534 Other 148,516 142,800 Total Investments and Other Assets 6,102,641 6,119,502 PROPERTY, PLANT & EQUIPMENT: Telecommunications Plant 21,582,042 22,087,844 Other Property & Equipment 1,275,812 1,260,110 Cable Television Plant 235,271 235,271 Total 23,093,125 23,583,225 Less Accumulated Depreciation 11,258,832 11,474,927 Net Property, Plant & Equipment 11,834,293 12,108,298 TOTAL ASSETS $21,621,337 $20,966,062 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 March 31, December 31, 1995 1994 CURRENT LIABILITIES: Current Portion of Long-Term Debt $ 366,666 $ 366,666 Accounts Payable 202,504 195,820 Accrued Income Taxes 340,777 (10,133) Other Accrued Taxes 61,137 54,597 Other Accrued Liabilities 195,457 204,740 Total Current Liabilities 1,166,541 811,690 LONG-TERM DEBT, LESS CURRENT PORTION 4,675,000 4,766,667 DEFERRED CREDITS: Income Taxes 1,384,819 1,384,819 Investment Tax Credits 122,115 133,352 Total Deferred Credits 1,506,934 1,518,171 STOCKHOLDERS' EQUITY: Common Stock - $5 Par Value, 640,000 Shares Authorized, 577,485 Shares Issued and Outstanding 2,887,425 2,887,425 Retained Earnings 11,385,437 10,982,109 Total Stockholders' Equity 14,272,862 13,869,534 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $21,621,337 $20,966,062 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 MARCH 31, 1995 AND 1994 1995 1994 OPERATING REVENUES: Local Network $ 454,526 $ 416,088 Network Access 1,342,949 1,161,892 Billing and Collection 135,505 158,552 Miscellaneous 89,275 100,394 Nonregulated 281,276 312,545 Total Operating Revenue 2,303,531 2,149,471 OPERATING EXPENSES: Plant Operations 283,545 240,956 Depreciation 393,433 378,061 Amortization 28,444 31,700 Customer 130,839 134,307 General and Administrative 270,895 258,465 Other Operating Expenses 190,901 209,039 Total Operating Expenses 1,298,057 1,252,528 OPERATING INCOME 1,005,474 896,943 OTHER EXPENSES (INCOME): Interest Expense 82,597 115,827 Interest Income (34,364) (15,880) Cellular Partnership (Income) Losses (128,304) (27,022) Total Other Expenses, Net (80,071) 72,925 INCOME BEFORE INCOME TAXES 1,085,545 824,018 INCOME TAXES 439,673 329,934 NET INCOME $ 645,872 $ 494,084 NET INCOME PER SHARE - NOTE 2 $ 1.12 $ 0.86 The accompanying notes are an integral part of the financial statements. NEW ULM TELECOM AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 1995 AND 1994 1995 1994 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 645,872 $ 494,084 Adjustments to Reconcile Net Income to Net Net Cash Provided by Operating Activities: Depreciation and Amortization 421,877 409,761 Cellular Partnerships (Income) Losses (128,304) (27,022) (Increase) Decrease in: Receivables (114,875) (151,247) Inventories 1,341 (223,935) Prepaid Expenses 19,840 8,734 Increase (Decrease) in: Accounts Payable 6,684 127,345 Accrued Income Taxes 350,910 311,096 Other Accrued Taxes 6,540 8,516 Other Accrued Liabilities (9,283) 20,265 Deferred Investment Tax Credits (11,237) (13,579) Net Cash Provided by Operating Activities 1,189,365 964,018 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to Property, Plant & Equipment, Net (119,428) (61,011) Change in Notes Receivable (2,305) (601) Cellular Investments 124,910 - Other, Net (5,716) (1,131) Net Cash Used in Investing Activities (2,539) (62,743) CASH FLOWS FROM FINANCING ACTIVITIES: Principal Payments of Long-Term Debt (91,667) (257,501) Dividends Paid (242,544) (230,994) Net Cash Used in Financing Activities (334,211) (488,495) NET INCREASE (DECREASE) IN CASH AND TEMPORARY CASH INVESTMENTS 852,615 412,780 CASH AND TEMPORARY CASH INVESTMENTS AT BEGINNING OF PERIOD 1,433,772 1,517,469 CASH AND TEMPORARY CASH INVESTMENTS AT END OF PERIOD $ 2,286,387 $ 1,930,249 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 March 31, 1995 and December 31, 1994 and the results of operations and changes in cash flows for the three months and three months ended March 31, 1995 and 1994. 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, 1994 Annual Report to Shareholders. The results of operations for the period ending March 31, 1995 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 1995 and 1994 was computed by dividing the weighted average number of shares of common stock outstanding into the net income. NOTE 3 - STATEMENTS OF CASH FLOW Supplemental Disclosures of Cash Flow Information: Cash paid during the period for: 1995 1994 Interest $ 83,090 $73,488 Income Taxes 100,000 32,417 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS THREE MONTHS ENDED MARCH 31, 1995 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 1994 The increase in total operating revenues was $154,060 or 7.2%. The increase in operating revenues was the result of increased local network due to a larger customer base. Network access revenues increased due to higher volumes of usage and increased interstate settlements. Total operating expenses increased by $45,529 or 3.6%. operating income increased by $108,531 or 12.1%. Interest expense decreased by $33,230 due to a decrease in long-term debt outstanding. Interest income increased by $18,484 as a result of higher interest rates in 1995 as compared to 1994 and an increase in funds available for investment. Cellular partnership income increased by $101,282 or 374.81% as the cellular partnerships continue to show strong performances. Net income increased by $151,788 or 30.7%. LIQUIDITY AND CAPITAL RESOURCES The Company had an increase in cash and temporary cash investments of $852,615 for the quarter resulting in a balance of $2,286,387 as of March 31, 1995. The Company is budgeting approximately $1,800,000 for 1995 plant additions. The Company intends to use internal funds for all of the 1995 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 Exhibit 27 - Financial Data Schedule (For SEC use only) 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: By /s/ JAMES P. JENSEN JAMES P. JENSEN, PRESIDENT Dated: By /s/ BILL OTIS BILL OTIS, EXECUTIVE VICE PRESIDENT EX-27 2
5 3-MOS DEC-31-1995 MAR-31-1995 2,286,387 0 957,028 16,348 400,695 3,684,403 23,093,125 11,258,832 21,621,337 1,166,541 4,675,000 2,887,425 0 0 11,385,437 21,621,337 0 2,303,531 0 1,298,057 (162,668) 0 82,597 1,085,545 439,673 645,872 0 0 0 645,872 1.12 1.12
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