-----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, Q27E50m9vnkzlgVu+W7knQAfeB5Iqr1LXVDZa0wIQrZ+sSewLJOHYl5g8NJuHRYe yknRdfUgMDBVpfO+cB5XdA== 0000897101-98-000547.txt : 19980515 0000897101-98-000547.hdr.sgml : 19980515 ACCESSION NUMBER: 0000897101-98-000547 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980514 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: 10-Q SEC ACT: SEC FILE NUMBER: 000-03024 FILM NUMBER: 98619780 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 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1998 [ ] 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 Unaudited Consolidated Statements of Stockholders' Equity 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 PART I. FINANCIAL INFORMATION NEW ULM TELECOM, INC. AND SUBSIDIARIES ITEM I. FINANCIAL STATEMENTS UNAUDITED CONSOLIDATED BALANCE SHEETS ASSETS MARCH 31, DECEMBER 31, 1998 1997 ----------- ------------ CURRENT ASSETS: Cash $ 1,786,379 $ 906,716 Certificates of Deposit 1,702,486 2,000,000 Receivables, Net of Allowance for Doubtful Accounts of $19,551 and $31,000 1,149,287 933,109 Inventories 469,717 488,770 Prepaid Expenses 68,564 82,915 ----------- ----------- Total Current Assets 5,176,433 4,411,510 ----------- ----------- INVESTMENTS & OTHER ASSETS: Excess of Cost Over Net Assets Acquired 3,645,564 3,674,010 Notes Receivable, Less Current Portion of $5,507 and $4,745 77,968 79,965 Cellular Investments 3,671,016 3,547,686 Other 331,864 331,863 ----------- ----------- Total Investments and Other Assets 7,726,412 7,633,524 ----------- ----------- PROPERTY, PLANT & EQUIPMENT: Telecommunications Plant 25,271,366 25,039,400 Other Property & Equipment 1,487,824 1,462,575 Cable Television Plant 762,048 762,048 ----------- ----------- Total 27,521,238 27,264,023 Less Accumulated Depreciation 15,786,749 15,330,362 ----------- ----------- Net Property, Plant & Equipment 11,734,489 11,933,661 ----------- ----------- TOTAL ASSETS $24,637,334 $23,978,695 =========== =========== The accompanying notes are an integral part of the financial statements. NEW ULM TELECOM, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED BALANCE SHEETS LIABILITIES AND STOCKHOLDER'S EQUITY MARCH 31, DECEMBER 31, 1998 1997 ----------- ----------- CURRENT LIABILITIES: Current Portion of Long-Term Debt $ 366,666 $ 366,666 Accounts Payable 583,921 621,338 Accrued Income Taxes 366,085 772 Other Accrued Taxes 68,215 62,198 Other Accrued Liabilities 251,841 274,975 ----------- ----------- Total Current Liabilities 1,636,728 1,325,949 ----------- ----------- LONG-TERM DEBT, LESS CURRENT PORTION 3,575,000 3,666,666 ----------- ----------- DEFERRED CREDITS: Income Taxes 1,467,487 1,467,487 Investment Tax Credits 32,093 35,095 ----------- ----------- Total Deferred Credits 1,499,580 1,502,582 ----------- ----------- STOCKHOLDER'S EQUITY: Common Stock - $5 Par Value, 6,400,000 Shares Authorized, 1,732,455 Shares Issued and Outstanding 8,662,275 8,662,275 Retained Earnings 9,263,751 8,821,223 ----------- ----------- Total Stockholder's Equity 17,926,026 17,483,498 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $24,637,334 $23,978,695 =========== =========== The accompanying notes are an integral part of the financial statements. NEW ULM TELECOM, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 1998 1997 ----------- ----------- OPERATING REVENUES: Local Network $ 551,668 $ 528,417 Network Access 1,300,412 1,342,755 Billing and Collection 141,077 145,736 Miscellaneous 95,832 105,833 Nonregulated 496,111 368,607 ----------- ----------- Total Operating Revenue 2,585,100 2,491,348 ----------- ----------- OPERATING EXPENSES: Plant Operations 258,494 255,710 Depreciation 458,267 440,314 Amortization 28,444 28,444 Customer 135,265 144,855 General and Administrative 318,809 288,214 Other Operating Expenses 318,219 232,961 ----------- ----------- Total Operating Expenses 1,517,498 1,390,498 ----------- ----------- OPERATING INCOME 1,067,602 1,100,850 ----------- ----------- OTHER (EXPENSES) INCOME: Interest Expense (64,698) (71,006) Interest Income 45,331 42,944 Cellular Partnership Income 295,095 133,500 ----------- ----------- Total Other Income, Net 275,728 105,438 ----------- ----------- INCOME BEFORE INCOME TAXES 1,343,330 1,206,288 INCOME TAXES 554,311 495,986 ----------- ----------- NET INCOME $ 789,019 $ 710,302 =========== =========== NET INCOME PER SHARE - NOTE 2 $ 0.46 $ 0.41 =========== =========== The accompanying notes are an integral part of the financial statements. NEW ULM TELECOM, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY COMMON STOCK RETAINED SHARES AMOUNT EARNINGS ---------- ---------- ---------- BALANCE on December 31, 1996 1,732,455 $8,662,275 $7,723,098 Net Income 2,813,255 Dividends (1,715,130) ---------- ---------- ---------- BALANCE on December 31, 1997 1,732,455 $8,662,275 $8,821,223 Net Income 789,019 Dividends (346,491) ---------- ---------- ---------- BALANCE on March 31, 1998 1,732,455 $8,662,275 $9,263,751 ========== ========== ========== NEW ULM TELECOM, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 1998 AND 1997
1998 1997 ----------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 789,019 $ 710,302 Adjustments to Reconcile Net Income to Net Net Cash Provided by Operating Activities: Depreciation and Amortization 486,711 468,758 Cellular Partnerships Income (295,095) (133,500) (Increase) Decrease in: Receivables (215,416) 29,909 Inventories 19,053 (39,614) Prepaid Expenses 14,351 23,773 Increase (Decrease) in: Accounts Payable (37,417) (69,930) Accrued Income Taxes 365,313 330,696 Other Accrued Taxes 6,017 (8,225) Other Accrued Liabilities (23,134) (7,601) Deferred Investment Tax Credits (3,002) (4,709) ----------- ----------- Net Cash Provided by Operating Activities 1,106,400 1,299,859 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Additions to Property, Plant & Equipment, Net (259,093) (134,769) Change in Notes Receivable 1,235 (1,612) Cellular Investments 171,765 62,511 Other, Net (1) (3,920) ----------- ----------- Net Cash Used in Investing Activities (86,094) (77,790) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Principal Payments of Long-Term Debt (91,666) (91,667) Change in Temporary Cash Investments 297,514 (300,000) Dividends Paid (346,491) (311,842) ----------- ----------- Net Cash Used in Financing Activities (140,643) (703,509) ----------- ----------- NET INCREASE (DECREASE) IN CASH 879,663 518,560 CASH AT BEGINNING OF PERIOD 906,716 617,870 ----------- ----------- CASH AT END OF PERIOD $ 1,786,379 $ 1,136,430 =========== ===========
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, 1998 and December 31, 1997 and the results of operations and changes in cash flows for the three months ended March 31, 1998 and 1997. 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, 1997 Annual Report to Shareholders. The results of operations for the period ending March 31, 1998 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 1998 and 1997 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: 1998 1997 -------- -------- Interest $ 65,191 $ 71,498 Income Taxes $175,000 $155,000 NEW ULM TELECOM, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS THREE MONTHS ENDED MARCH 31, 1998 COMPARED TO THE THREE M0NTHS ENDED MARCH 31, 1997 The increase in total operating revenues was $93,752 or 3.8%. Nonregulated revenue was the largest contributor to this increase. These revenues grew 34.6% over the revenues recorded for the first quarter ending March 31, 1997. The increase of $127,504 was due mainly to our success with cable television, Internet services, increased sales of customer premise equipment and increased market share of our long distance service, which was introduced during the third quarter of 1997. Local network saw a slight increase of 4.4%, which can be credited to an increase in Centrex service. Network Access decreased 3.2%, which can be attributed to a reduction in access charges charged to interexchange carriers. Total operating expenses increased by $127,000 or 9.1%. Other operating expenses were responsible for 67.1% of the increase in operating expenses. This increase is associated with the increased marketing efforts of our nonregulated services and an increase in cost of goods sold for customer premise equipment. Interest expense decreased by $6,308 due to a decrease in long-term debt outstanding. Interest income increased by $2,387 reflecting larger amounts of funds available for investment and favorable interest rates. The investment in Midwest Wireless continues to be a strong performer, which can be evidenced by the 121% or $161,575 increase. Net income increased by $78,717 or 11.1%. LIQUIDITY AND CAPITAL RESOURCES The Company had an increase in cash of $879,663 for the quarter resulting in a balance of $1,786,379 as of March 31, 1998. The Company is budgeting approximately $1,600,000 for 1998 plant additions. The Company intends to use internal funds for all of the 1998 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. 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, 1998. 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: May 11, 1998 By \s\ James P. Jensen James P. Jensen, President Dated: May 11, 1998 By \s\ Bill Otis Bill Otis, Executive Vice-President EX-27 2 FINANCIAL DATA SCHEDULE
5 3-MOS DEC-31-1998 MAR-31-1998 1,786,379 1,702,486 1,149,287 19,551 469,717 5,176,433 27,521,238 15,786,749 24,637,334 1,636,728 3,575,000 0 0 8,662,275 9,263,751 24,637,334 0 2,585,100 0 1,517,498 (340,426) 0 64,698 1,343,330 554,311 789,019 0 0 0 789,019 0.46 0.46
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