-----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, TUyJcE4u8kNEf37cl1/m+yAwQmM/9kSQKuu21g/kZylngv6Z7HW6G/Cx2pcLhlrU AvhKUz22xqw5huqNf6JBzw== 0000897101-96-000292.txt : 19960520 0000897101-96-000292.hdr.sgml : 19960520 ACCESSION NUMBER: 0000897101-96-000292 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960517 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: 96569181 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 NEW ULM TELECOM 10QSB FOR 3/31/96 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, 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 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 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, 1996 1995 ----------- ----------- CURRENT ASSETS: Cash & Temporary Cash Investments $ 2,450,040 $ 1,829,215 Receivables, Net of Allowance for Doubtful Accounts of $17,994 and $17,500 1,035,352 1,150,731 Inventories 367,075 370,462 Prepaid Expenses 63,353 91,589 ----------- ----------- Total Current Assets: 3,915,820 3,441,997 ----------- ----------- INVESTMENTS & OTHER ASSETS: Excess of Cost Over Net Assets Acquired 3,873,118 3,901,561 Notes Receivable, Less Current Portion of $10,261 and $11,512 13,461 15,734 Cellular Investments 2,148,016 2,089,167 Other 205,181 166,314 ----------- ----------- Total Investments and Other Assets 6,239,776 6,172,776 ----------- ----------- PROPERTY, PLANT & EQUIPMENT: Telecommunications Plant 23,567,412 23,248,747 Other Property & Equipment 1,278,407 1,276,946 Cable Television Plant 235,271 235,271 ----------- ----------- Total 25,081,090 24,760,964 Less Accumulated Depreciation 12,796,385 12,390,334 ----------- ----------- Net Property, Plant & Equipment 12,284,705 12,370,630 ----------- ----------- TOTAL ASSETS $22,440,301 $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 MARCH 31, DECEMBER 31, 1996 1995 ------------ ------------ CURRENT LIABILITIES: Current Portion of Long-Term Debt $ 366,666 $ 366,666 Accounts Payable 190,010 260,351 Accrued Income Taxes 280,495 (36,052) Other Accrued Taxes 66,049 57,372 Other Accrued Liabilities 253,249 265,143 ------------ ------------ Total Current Liabilities 1,156,469 913,480 ------------ ------------ LONG-TERM DEBT, LESS CURRENT PORTION 4,308,334 4,400,000 ------------ ------------ DEFERRED CREDITS: Income Taxes 1,469,790 1,469,790 Investment Tax Credits 79,787 88,405 ------------ ------------ Total Deferred Credits 1,549,577 1,558,195 ------------ ------------ 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 12,538,496 12,226,303 ------------ ------------ Total Stockholders' Equity 15,425,921 15,113,728 ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 22,440,301 $ 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 MARCH 31, 1996 AND 1995 1996 1995 ----------- ----------- OPERATING REVENUES: Local Network $ 499,613 $ 454,526 Network Access 1,180,992 1,342,949 Billing and Collection 144,798 135,505 Miscellaneous 76,582 89,275 Nonregulated 312,996 281,276 ----------- ----------- Total Operating Revenue 2,214,981 2,303,531 ----------- ----------- OPERATING EXPENSES: Plant Operations 251,503 283,545 Depreciation 407,984 393,433 Amortization 28,444 28,444 Customer 131,192 130,839 General and Administrative 275,207 270,895 Other Operating Expenses 209,067 190,901 ----------- ----------- Total Operating Expenses 1,303,397 1,298,057 ----------- ----------- OPERATING INCOME 911,584 1,005,474 ----------- ----------- OTHER EXPENSES (INCOME): Interest Expense 76,568 82,597 Interest Income (38,924) (34,364) Cellular Partnership (Income) Losses (101,824) (128,304) ----------- ----------- Total Other Expenses, Net (64,180) (80,071) ----------- ----------- INCOME BEFORE INCOME TAXES 975,764 1,085,545 ----------- ----------- INCOME TAXES 397,928 439,673 ----------- ----------- NET INCOME $ 577,836 $ 645,872 =========== =========== NET INCOME PER SHARE - NOTE 2 $ 1.00 $ 1.12 =========== =========== 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, 1996 AND 1995
1996 1995 ----------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 577,836 $ 645,872 Adjustments to Reconcile Net Income to Net Net Cash Provided by Operating Activities: Depreciation and Amortization 436,428 421,877 Cellular Partnerships (Income) Losses (101,824) (128,304) (Increase) Decrease in: Receivables 114,128 (114,875) Inventories 3,387 1,341 Prepaid Expenses 28,236 19,840 Increase (Decrease) in: Accounts Payable (70,341) 6,684 Accrued Income Taxes 316,547 350,910 Other Accrued Taxes 8,677 6,540 Other Accrued Liabilities (11,894) (9,283) Deferred Investment Tax Credits (8,618) (11,237) ----------- ----------- Net Cash Provided by Operating Activities 1,292,562 1,189,365 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Additions to Property, Plant & Equipment, Net (322,059) (119,428) Change in Notes Receivable 3,524 (2,305) Cellular Investments 42,975 124,910 Other, Net (38,867) (5,716) ----------- ----------- Net Cash Used in Investing Activities (314,427) (2,539) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Principal Payments of Long-Term Debt (91,667) (91,667) Dividends Paid (265,643) (242,544) ----------- ----------- Net Cash Used in Financing Activities (357,310) (334,211) ----------- ----------- NET INCREASE (DECREASE) IN CASH AND TEMPORARY CASH INVESTMENTS 620,825 852,615 ----------- ----------- CASH AND TEMPORARY CASH INVESTMENTS AT BEGINNING OF PERIOD 1,829,215 1,433,772 ----------- ----------- CASH AND TEMPORARY CASH INVESTMENTS AT END OF PERIOD $ 2,450,040 $ 2,286,387 =========== ===========
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, 1996 and December 31, 1995 and the results of operations and changes in cash flows for the three months and three months ended March 31, 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 March 31, 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. NOTE 3 - STATEMENTS OF CASH FLOW Supplemental Disclosures of Cash Flow Information: Cash paid during the period for: 1996 1995 -------- -------- Interest $ 77,062 $ 83,090 Income Taxes 90,000 100,000 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS THREE MONTHS ENDED MARCH 31, 1996 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 1995 The decrease in total operating revenues was $88,550 or 3.4%. The decrease in operating revenues was primarily the result of prior year adjustments to network access revenues. Total operating expenses increased by $5,340 or 0.4%. Operating income decreased by $93,890 or 9.3%. Interest expense decreased by $6,029 due to a decrease in long-term debt outstanding. Interest income increased by $4,560 as a result of increased funds available for investment. Cellular partnership income decreased by $26,480 or 20.6%. This decrease was caused by a $42,176 adjustment to income to true up the 1995 estimated income per the 1995 K-1's. Net income decreased by $68,036 or 10.5%. LIQUIDITY AND CAPITAL RESOURCES The Company had an increase in cash and temporary cash investments of $620,825 for the quarter resulting in a balance of $2,450,040 as of March 31, 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 processes 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 March 31, 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 21, 1994 By __________________________________ JAMES P. JENSEN, PRESIDENT Dated: October 21, 1994 By __________________________________ BILL OTIS, EXECUTIVE VICE PRESIDENT EX-27 2 FINANCIAL DATA SCHEDULE
5 3-MOS DEC-31-1996 MAR-31-1996 2,450,040 0 1,035,352 17,994 367,075 3,915,820 25,081,090 12,796,385 22,440,301 1,156,469 4,308,334 0 0 2,887,425 12,538,496 22,440,301 0 2,214,981 0 1,303,397 (140,748) 0 76,568 975,764 397,928 577,836 0 0 0 577,836 1.00 1.00
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