-----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, BYA3OFX/HzomcWkNh2VVncskP3QI+CeLpF5Tyb65NiZNwJ9A1WKYJG7lliqiyCRD 6FA1RnPDhF4tOZgr1hxmhw== 0000897101-95-000391.txt : 19951027 0000897101-95-000391.hdr.sgml : 19951027 ACCESSION NUMBER: 0000897101-95-000391 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951026 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: 95584486 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, 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 (IRS Employer jurisdiction 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 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, 1995 1994 CURRENT ASSETS: Cash & Temporary Cash Investments $ 1,856,230 $ 1,433,772 Receivables, Net of Allowance for Doubtful Accounts of $31,551 and $12,000 928,712 825,973 Inventories 466,899 402,036 Prepaid Expenses 29,788 76,481 Total Current Assets: 3,281,629 2,738,262 INVESTMENTS & OTHER ASSETS: Excess of Cost Over Net Assets Acquired 3,930,004 4,015,337 Notes Receivable, Less Current Portion of $13,279 and $16,827 18,130 17,831 Cellular Investments 2,028,269 1,943,534 Other 180,683 142,800 Total Investments and Other Assets 6,157,086 6,119,502 PROPERTY, PLANT & EQUIPMENT: Telecommunications Plant 22,725,843 22,087,844 Other Property & Equipment 1,280,107 1,260,110 Cable Television Plant 235,271 235,271 Total 24,241,221 23,583,225 Less Accumulated Depreciation 12,016,399 11,474,927 Net Property, Plant & Equipment 12,224,822 12,108,298 TOTAL ASSETS $ 21,663,537 $ 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 SEPTEMBER 30, DECEMBER 31, 1995 1994 CURRENT LIABILITIES: Current Portion of Long-Term Debt $ 366,666 $ 366,666 Accounts Payable 168,684 195,820 Accrued Income Taxes 55,249 (10,133) Other Accrued Taxes 39,917 54,597 Other Accrued Liabilities 220,264 204,740 Total Current Liabilities 850,780 811,690 LONG-TERM DEBT, LESS CURRENT PORTION 4,491,666 4,766,667 DEFERRED CREDITS: Income Taxes 1,384,819 1,384,819 Investment Tax Credits 99,641 133,352 Total Deferred Credits 1,484,460 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 11,949,206 10,982,109 Total Stockholders' Equity 14,836,631 13,869,534 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 21,663,537 $ 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 SEPTEMBER 30, 1995 AND 1994 1995 1994 OPERATING REVENUES: Local Network $ 471,486 $ 422,483 Network Access 1,071,915 1,236,090 Billing and Collection 158,163 160,977 Miscellaneous 103,131 98,423 Nonregulated 393,947 257,558 Total Operating Revenue 2,198,642 2,175,531 OPERATING EXPENSES: Plant Operations 273,434 222,585 Depreciation 393,433 378,061 Amortization 28,444 31,701 Customer 127,351 128,840 General and Administrative 276,805 217,497 Other Operating Expenses 216,501 167,415 Total Operating Expenses 1,315,968 1,146,099 OPERATING INCOME 882,674 1,029,432 OTHER EXPENSES (INCOME): Interest Expense 79,498 89,179 Interest Income (35,966) (14,511) Cellular Partnership (Income) Losses (115,998) (141,922) Total Other Expenses, Net (72,466) (67,254) INCOME BEFORE INCOME TAXES 955,140 1,096,686 INCOME TAXES 387,501 470,186 NET INCOME $ 567,639 $ 626,500 NET INCOME PER SHARE - NOTE 2 $ 0.98 $ 1.08 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, 1995 AND 1994 1995 1994 OPERATING REVENUES: Local Network $ 1,391,715 $ 1,254,712 Network Access 3,582,003 3,503,080 Billing and Collection 442,714 488,267 Miscellaneous 279,503 300,625 Nonregulated 977,770 831,050 Total Operating Revenue 6,673,705 6,377,734 OPERATING EXPENSES: Plant Operations 843,245 733,404 Depreciation 1,180,299 1,134,183 Amortization 85,332 95,103 Customer 397,762 402,072 General and Administrative 835,152 737,779 Other Operating Expenses 627,882 542,043 Total Operating Expenses 3,969,672 3,644,584 OPERATING INCOME 2,704,033 2,733,150 OTHER EXPENSES (INCOME): Interest Expense 243,576 325,387 Interest Income (104,720) (42,837) Cellular Partnership (Income) Losses (311,547) (203,744) Total Other Expenses, Net (172,691) 78,806 INCOME BEFORE INCOME TAXES 2,876,724 2,654,344 INCOME TAXES 1,164,672 1,096,620 NET INCOME $ 1,712,052 $ 1,557,724 NET INCOME PER SHARE - NOTE 2 $ 2.96 $ 2.70 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, 1995 AND 1994 1995 1994 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 1,712,052 $ 1,557,724 Adjustments to Reconcile Net Income to Net Net Cash Provided by Operating Activities: Depreciation and Amortization 1,265,631 1,229,286 Cellular Partnerships (Income) Losses (311,547) (203,744) (Increase) Decrease in: Receivables (106,286) 224,161 Inventories (64,863) (133,023) Prepaid Expenses 46,693 35,569 Increase (Decrease) in: Accounts Payable (27,136) (339,985) Accrued Income Taxes 65,382 293,169 Other Accrued Taxes (14,680) (12,762) Other Accrued Liabilities 15,524 19,667 Deferred Investment Tax Credits (33,711) (40,736) Net Cash Provided by Operating Activities 2,547,059 2,629,326 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to Property, Plant & Equipment, Net (1,296,823) (744,981) Change in Notes Receivable 3,249 9,177 Cellular Investments 226,812 21,565 Other, Net (37,883) (41,064) Net Cash Used in Investing Activities (1,104,645) (755,303) CASH FLOWS FROM FINANCING ACTIVITIES: Principal Payments of Long-Term Debt (275,001) (1,040,833) Dividends Paid (744,955) (692,982) Net Cash Used in Financing Activities (1,019,956) (1,733,815) NET INCREASE (DECREASE) IN CASH AND TEMPORARY CASH INVESTMENTS 422,458 140,208 CASH AND TEMPORARY CASH INVESTMENTS AT BEGINNING OF PERIOD 1,433,772 1,517,469 CASH AND TEMPORARY CASH INVESTMENTS AT END OF PERIOD $ 1,856,230 $ 1,657,677 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, 1995 and December 31, 1994 and the results of operations and changes in cash flows for the three months and nine months ended September 30, 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 September 30, 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 $ 245,054 $320,534 Income Taxes 1,133,000 549,417 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS NINE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER 30,1994 The increase in total operating revenues was $295,971 or 4.6%. The increase in operating revenues was the result of increased local network revenues and network access revenues. Local access revenues increased 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 $325,088 or 8.9%. the increase in operating expenses was due mainly to an increase in expenses for training Centrex and Equal Access and costs associated with long-term planning. Operating income decreased by $29,117 or 1.1%. Interest income increased by $61,883 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 $107,803 or 52.9% as the cellular partnerships continue to show strong performances. Net income increased by $154,328 or 9.9%. LIQUIDITY AND CAPITAL RESOURCES The Company had an increase in cash and temporary cash investments of $422,458 for the quarter resulting in a balance of $1,856,230 as of September 30, 1995. The Company is budgeting approximately $1,800,000 for 1995 plant additions. The Company intends to use internal funds for all 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 There were no reports on Form 8-K for the Quarter ended September 30, 1995. 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 _______________________________________ JAMES P. JENSEN, PRESIDENT Dated: By _______________________________________ BILL OTIS, EXECUTIVE VICE PRESIDENT 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, 1994. 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: August 8, 1994 By: /s/ James P. Jensen JAMES P. JENSEN, PRESIDENT Dated: August 8, 1994 By: /s/ Lavern Biebl LAVERN BIEBL, TREASURER EX-27 2
5 3-MOS DEC-31-1995 SEP-30-1995 1,856,230 0 928,712 31,551 466,899 3,281,629 24,241,221 12,016,399 21,663,537 850,780 4,491,666 2,887,425 0 0 11,949,206 21,663,537 0 2,198,642 0 1,315,968 (151,964) 0 79,498 955,140 387,501 567,639 0 0 0 567,639 0.98 0.98
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