UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K

 

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended December 31, 2001

 

Commission File Number:  0-13721

 

HICKORY TECH CORPORATION

 

 

Registrant’s telephone number, including area code:  800-326-5789

 

Securities registered pursuant to Section 12(b) of the Act:  None

 

Securities registered pursuant to Section 12(g) of the Act:

 

Common Stock, No Par Value

Preferred Stock Purchase Rights

Title of Class

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.

Yes  ý   No  o

 

Indicate by a check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  o

 

As of February 28, 2002, the aggregate market value of the common stock held by non-affiliates of the registrant was $215,856,156 based on the last sale price of $16.27 on The Nasdaq National Market.

 

The total number of shares of the registrant’s common stock outstanding as of February 28, 2002: 13,961,327.

 

Documents Incorporated by Reference:  Portions of the registrant’s definitive Proxy Statement for the Annual Meeting of Shareholders to be held on April 8, 2002 (“Proxy Statement”) are incorporated by reference in Part III of this Form 10-K.

 

PART I

Item 1. Business.

 

GENERAL

 

Hickory Tech Corporation (HickoryTech) is a diversified communications company headquartered in Mankato, Minnesota. HickoryTech has over a 100-year history in the local telephone exchange business. From those roots, it has expanded into five business segments and eight operating companies. HickoryTech’s core business is the operation of three incumbent local exchange carriers (ILECs). This business consists of connecting customers to the telephone network, providing switched service and dedicated private lines, connecting customers to long distance service providers and providing many other services commonly associated with ILECs. In addition in 1998, HickoryTech undertook business startup initiatives in long distance, internet access and competitive local exchange carrier (CLEC) businesses. This business takes advantage of HickoryTech’s telecommunications expertise and expands service into areas served by other ILECs. HickoryTech also provides wireless telecommunications services to customers in and in the area surrounding its ILEC service territory in Minnesota and also in an area surrounding Minneapolis/St. Paul. As additional lines of business, HickoryTech provides data processing services to the telecommunications industry and installs and maintains telephone systems.

 

The eight subsidiaries of HickoryTech and the business segments in which they operate are:

 

TELEPHONE SECTOR

•     Mankato Citizens Telephone Company (MCTC)

•     Mid-Communications, Inc. (Mid-Comm)

•     Heartland Telecommunications Company of Iowa (Heartland)

•     Cable Network, Inc. (CNI)

 

COMMUNICATIONS SERVICES SECTOR

•     Crystal Communications, Inc. (Crystal)

 

WIRELESS SERVICES SECTOR

•     Minnesota Southern Wireless Company (MSWC)

 

INFORMATION SOLUTIONS SECTOR

•     National Independent Billing, Inc. (NIBI)

 

ENTERPRISE SOLUTIONS SECTOR

•     Collins Communications Systems Co. (Collins)

 

HickoryTech and its subsidiaries are engaged in businesses that provide services to their customers for a fee. These services are repetitive and recurring, and, as a result, backlog orders and seasonality are not significant factors. Working capital requirements primarily involve the funding of the construction and maintenance of telephone landline and wireless fixed assets, the payroll costs of highly skilled labor and the inventory to service its telephone equipment customers.

 

The materials and supplies which are necessary for the operation of the businesses of HickoryTech and its subsidiaries are available from a variety of sources, and no future supply problems are anticipated. All of HickoryTech’s ILEC and CLEC central office switches and wireless switches, as well as a majority of HickoryTech’s equipment sold in its Enterprise Solutions Sector, are the Nortel brand. Nortel is a leading supplier of communications equipment, and HickoryTech’s dependence on this brand is not viewed as a significant risk.

 

As of December 31, 2001, HickoryTech had 502 full-time equivalent employees.

 

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ACQUISITIONS

 

On June 26, 2001, HickoryTech acquired two digital personal communications services (PCS) licenses from McLeodUSA Incorporated for $11,100,000 in cash.  The PCS licenses acquired by HickoryTech include the Minnesota Basic Trading Areas (BTAs) of Mankato-Fairmont and Rochester-Austin-Albert Lea, an area covering a population of approximately 493,000 people.  The acquisition was a purchase of the licenses only.  There were no customers, existing revenue stream or physical property and equipment included with this acquisition as the BTAs were undeveloped.  The operations of these PCS licenses are included in the Wireless Services Sector. FCC PCS licenses are forfeitable if minimum service coverage requirements are not met. The Mankato-Fairmont BTA license minimum buildout requirement was met in 2001. The Rochester-Austin-Albert Lea BTA license minimum buildout requirement deadline is June 27, 2002. Management anticipates completing the minimum buildout before the deadline.

 

On October 9, 2000, HickoryTech acquired the dial-up internet customer accounts of Internet Connections, a Mankato-based internet service provider. Internet Connections had approximately 5,000 internet customers in southern Minnesota. The operations of this internet services business are integrated with HickoryTech’s existing dial-up internet business in its Communications Services Sector.

 

DISPOSITIONS

 

On August 6, 2001, HickoryTech closed on the previously announced agreement to sell its local telephone exchange in Amana, Iowa to South Slope Cooperative Telephone Company, Inc. for $6,500,000 in cash. The Amana operation, known as Amana Colonies Telephone Company (ACTC), served approximately 1,500 access lines in the seven communities of the Amana Colonies in east central Iowa.  HickoryTech recorded a pre-tax gain on the sale of $1,015,000 ($566,000 net of tax).  HickoryTech used the proceeds from the sale to repay a portion of its outstanding debt. The operations of ACTC were included in the Telephone Sector.  For the years ended December 31, 2001, 2000 and 1999, ACTC generated revenues of $832,000, $1,467,000 and $1,461,000 and generated an operating income (loss) of ($13,000), $70,000 and $356,000, respectively.

 

INDUSTRY SEGMENTS FINANCIAL DATA

 

Financial information about HickoryTech’s industry segments is included on pages 12 to 16 and 32 of this Form 10-K.

 

INDUSTRY SEGMENTS

 

HickoryTech’s operations are conducted in the following five segments:

 

TELEPHONE SECTOR

 

MCTC, Mid-Comm and Heartland are ILECs and CNI is a fiber optic network company. Together they provide telephone-related services and collectively form HickoryTech’s Telephone Sector. The Telephone Sector also included the operations of ACTC, which was sold on August 6, 2001. None of the remaining companies in the Telephone Sector experienced major changes in scope or direction of their operations during the past year. MCTC owns and operates an independent telephone system serving the cities of Mankato and North Mankato and adjacent rural areas in Blue Earth and Nicollet Counties in south central Minnesota, approximately 75 miles south of Minneapolis/St. Paul. Mid-Comm provides telephone services to eleven rural communities adjacent to Mankato in south central Minnesota. Heartland provides service to eleven rural communities in northwest Iowa. CNI owns and operates fiber optic cable facilities in southern and central Minnesota, which are used to transport interexchange communications as a service to telephone exchange companies, primarily to MCTC and Mid-Comm.

 

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MCTC derives its principal revenues and income from local services charged to subscribers in its service area, from access services charged to interexchange carriers and from the operation of a toll tandem switching center in Mankato, Minnesota. Revenues and income for Mid-Comm are also derived from local service charges in its area of operation and from providing access to long distance services for its subscribers through the toll center in Mankato. Local and interexchange telephone access for the two companies are provided on an integrated basis. The local and interexchange telephone access for both telephone companies utilize the same facilities and equipment and are managed and maintained by a common work force. Heartland derives its principal revenues and income from local services charged to subscribers in its service area in Iowa and from providing interexchange access for its subscribers. Interexchange telephone access is provided by all three of HickoryTech’s telephone subsidiaries by connecting the communications networks of interexchange and cellular carriers with the equipment and facilities of end users by use of its switched networks or private lines.

 

MCTC and Mid-Comm are Minnesota public utilities operating pursuant to indeterminate permits issued by the Minnesota Public Utilities Commission. Heartland is also a public utility, which operates pursuant to a certificate of public convenience and necessity issued by the Iowa Utilities Board. These state agencies regulate the services provided by MCTC, Mid-Comm and Heartland. None of CNI’s operations are subject to regulation by any state regulatory authority. Due to the size of MCTC, Mid-Comm and Heartland, neither the Minnesota Public Utilities Commission nor the Iowa Utilities Board regulates the rate of return or profits of each telephone company’s operations. Instead, the Minnesota Public Utilities Commission regulates the prices and services levels provided by MCTC and Mid-Comm because each company’s operations fall below the 50,000 access line minimum level for rate regulation in the state of Minnesota. In the state of Iowa, Heartland’s operations fall below the 15,000 access line minimum level for rate regulation by the Iowa Utilities Board. MCTC, Mid-Comm and Heartland are each required to file local service rates as tariffs with the applicable state public utilities commission. MCTC’s and Mid-Comm’s local service rates are below those of most Minnesota ILECs, which relieves these companies of substantial regulatory oversight. Regardless of whether a particular rate is subject to regulatory review, the ability of HickoryTech and its subsidiaries to change rates will be determined by various factors, including economic and competitive circumstances. Due to the rural nature of HickoryTech’s service territory and the relatively small size of HickoryTech’s service territory in each state, management does not expect individual state or federal regulation to materially impact HickoryTech’s operations in the near future.

 

As local exchange telephone companies, MCTC, Mid-Comm and Heartland provide end office switching and ancillary services to long distance interexchange carriers. These relationships allow HickoryTech’s telephone subscribers to place long distance telephone calls. By paying access charges on the long distance calls of all of the individual customers who use their service, the long distance interexchange carriers are significant customers of HickoryTech, but individually none of them represent more than ten percent of HickoryTech’s consolidated revenues.

 

Alternatives to HickoryTech service include customers leasing private line switched voice and data services in or adjacent to the territories served by HickoryTech, which permits the bypassing of local telephone facilities. In addition, microwave transmission services, wireless communications, fiber optic and coaxial cable deployment and other services permit bypass of the local exchange network. These alternatives to local exchange service represent a potential threat to HickoryTech’s long-term ability to provide local exchange service at economical rates.

 

In order to meet this competition, HickoryTech has deployed new technology for its local exchange network to increase operating efficiencies and to provide new services to its customers. These new technologies include the latest release of digital switching technology on all of HickoryTech’s switches, installation of over 500 miles of fiber optic cable and installation of SS7 (an out-of-band system) for all of its access lines. HickoryTech has also protected its interexchange network with fiber-ring (redundant route designs which allow traffic to re-route if trouble appears in the line), which allows HickoryTech to provide a very reliable level of service to its customers. The utility of the local network is also enhanced by the ability to offer high speed internet (digital subscriber line, or DSL) in over 70% of all HickoryTech territories, and over 95% of its largest exchange, Mankato.

 

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Competition in HickoryTech’s ILEC service area has developed in one of Heartland’s exchanges. In the city of Hawarden, Iowa, the municipal city government overbuilt the city’s telephone service infrastructure and is providing an alternative to HickoryTech’s telephone service. The Hawarden CLEC has acquired approximately 1,000 access lines or approximately 59% of that city’s business from HickoryTech. The impact of this competition is reflected in HickoryTech’s 2001, 2000 and 1999 financial results and HickoryTech management does not believe there will be significant further impact from competition in Hawarden. HickoryTech constantly responds to competitive changes with active programs to market products and to engineer its infrastructure for higher customer satisfaction.

 

Competition also exists for some of the services provided to interexchange carriers, such as customer billing services, dedicated private lines, and network switching. This competition comes primarily from the interexchange carriers themselves. The provision of these services is of a contractual nature and is primarily controlled by the interexchange carriers.  Other services, such as directory advertising, operator services and cellular communications, are open to competition. Competition is based primarily on service and experience.

 

COMMUNICATIONS SERVICES SECTOR

 

The passage of the Telecommunications Act created the opportunity for HickoryTech to offer communications service in territories served by other telephone companies, and Crystal began operations in January 1998 as a new start-up business. Crystal offers local service, long distance and dial-up internet access services on a competitive basis to customers in towns in southern Minnesota and Iowa not in HickoryTech’s Telephone Sector’s service area. This service offers alternatives to the incumbent telephone carrier in various communities and is offered under the trade name HickoryTech wireline service. These services are currently being offered to customers in eight rural communities in Minnesota, as well as six rural communities in Iowa. Crystal’s primary strategy is to provide service by overbuilding the ILEC with new telecommunications switching networks and telephone lines. The Communications Services Sector also provides the long distance service and dial-up internet access services to HickoryTech’s Telephone Sector’s subscribers.

 

Crystal is not subject to regulation by the public utilities commissions in the states it serves regarding rates and services. The CLEC activities of Crystal do require it to file for authority to operate with the appropriate public utilities commission in each state it enters. Crystal competes directly against existing ILECs in the areas in which Crystal operates. Crystal will continue to offer services to other markets and will require additional investment of assets to be competitive in those markets.

 

Crystal is not dependent upon any single customer or small group of customers. No one customer accounts for ten percent or more of HickoryTech’s consolidated revenues in the Communications Services Sector.

 

WIRELESS SERVICES SECTOR

 

HickoryTech, through its subsidiary MSWC, owns and operates cellular telephone businesses in south central Minnesota and in the Minneapolis/St. Paul area. In south central Minnesota, MSWC provides cellular service for Minnesota’s Rural Service Area (RSA) 10, under the trade name of HickoryTech Wireless. This business owns 100% of the  “A-side” FCC cellular license to operate in seven counties in south central Minnesota. The area overlaps and is larger than the telephone line service area of HickoryTech’s Minnesota ILEC and CLEC service areas and serves a population of approximately 230,000. This sector also owns the Minneapolis/St. Paul Metro A-2 (Metro A-2) cellular license, which was acquired on June 1, 1999. The Metro A-2 property surrounds the metropolitan Minneapolis/St. Paul area and is located in five Minnesota counties and in one Wisconsin county. Metro A-2 provides service to an area with a population of approximately 170,000. In addition, this sector also owns the newly acquired PCS licenses for the Minnesota BTAs of Mankato-Fairmont and Rochester-Austin-Albert Lea. The two BTAs are located in 16 Minnesota counties and one Iowa county and provide service to an area with a population of approximately 493,000, some of which coincide with the previously mentioned cellular RSA 10 population of 230,000.

 

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MSWC derives its principal revenues and income from providing cellular telephone service to the retail customers in seven counties in south central Minnesota and roaming traffic. MSWC also derives roaming revenue from the six counties surrounding the metropolitan Minneapolis/St. Paul Metro A-2 area and roaming revenues from the 17 counties which comprise the PCS service territory.

 

MSWC directly competes against local cellular and PCS companies in southern Minnesota and in the Minneapolis/St. Paul area. MSWC shares the market with other wireless providers and will require additional investment of assets to build the infrastructure to provide high quality service to this service area and to meet FCC mandates.

 

INFORMATION SOLUTIONS SECTOR

 

Through NIBI, HickoryTech’s Information Solutions Sector provides data processing and related services, principally for HickoryTech, other local exchange telephone companies, CLECs, interexchange network carriers, wireless companies, municipalities and utilities. The Information Solutions Sector’s principal activity is the provision of monthly batch processing of computerized data for HickoryTech as well as non-affiliated companies. Services for telephone company customers include the processing of long distance telephone calls from data sources and telephone switches, the preparation of the subscriber telephone bills, customer record keeping, carrier access bills and general accounting and payroll services. NIBI, under the trade name HickoryTech Information Solutions, also provides certain billing clearinghouse functions for interexchange carriers.

 

There are a number of companies engaged in supplying data processing services comparable to those furnished by NIBI. Competition is based primarily on price and service. There are some companies of much larger size that dominate certain aspects of the billing and data services business. There are many new market niches for telecommunications billing and data services, including ILECs, CLECs and wireless carriers. HickoryTech believes that NIBI is in a position to provide data processing services for these companies.

 

HickoryTech’s Information Solutions Sector has developed a new integrated billing and management system called SuiteSolution. For internal use, SuiteSolution enables HickoryTech to become a full-service billing provider for all aspects of the telecommunications industry on a fully integrated basis. For external use, SuiteSolution can provide wireline or wireless carriers the individual benefits of a billing platform, or to integrated service providers, such as HickoryTech, a total system.

 

ENTERPRISE SOLUTIONS SECTOR

 

HickoryTech’s Enterprise Solutions’ activities are focused on the sale, installation and service of business telephone systems and data communications equipment to companies based in metropolitan Minneapolis/St. Paul, Minnesota. This sector also supports the business telephone system service for HickoryTech ILEC and CLEC operations in southern Minnesota and in Iowa. The customers in the Enterprise Solutions Sector’s market are the individual business end users of telecommunications service with ongoing service needs. Products consist of telecommunication platforms such as Nortel and Octel on the voice side of the Enterprise Solutions’ business, and Cisco and Bay Networks (Nortel) equipment on the data side of its business. Enterprise Solutions specializes in the quality custom installation and maintenance of wide area networking, local networking and transport solutions in telecommunications for end user customers.

 

Revenues are primarily earned by the sales, installation and service of business telephone systems. Enterprise Solutions continues its commitment to service and support of its core product, Nortel, while identifying new opportunities such as call centers, computer telephone integration voice mail and interactive voice response systems.

 

HickoryTech’s Enterprise Solutions Sector is not dependent upon any single customer or small group of customers. No one customer accounts for ten percent or more of HickoryTech’s consolidated revenues in the Enterprise Solutions Sector.

 

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There are several companies competing in the communications products market in which Enterprise Solutions operates. Competition is based primarily on price and service. No one company is dominant in this field. Enterprise Solutions offers customer premises telephone equipment through well-trained and experienced market representatives with long-term customer relationships. HickoryTech believes that its Enterprise Solutions Sector enjoys a very strong reputation for quality service. Enterprise Solutions has built a strong base of customers with recurring telecommunications needs and it is Enterprise Solutions’ goal to derive 60-70% of its revenue from sales to its base.

 

OTHER REGULATION

 

HickoryTech does not anticipate any material effects on their earnings, capital expenditures or competitive position because of laws pertaining to the protection of the environment.

 

OTHER COMPETITION

 

Since the mid-1980’s, HickoryTech’s business strategy has been to position itself as a “one-stop” telecommunications services provider. Long-term business relationships with its customers have strengthened HickoryTech’s business position. HickoryTech believes that its customers value the fact that it is the “local company” whose goal is to meet the customers’ total communications needs. HickoryTech has several competitive advantages: its prices and costs are low; its service reputation is high; its investment in technology is strong and it has a direct billing relationship with almost all of the customers in its service territories.

 

The long-range effect of competition on the provision of telecommunications services and equipment will depend on technological advances, regulatory actions at both the state and federal levels, court decisions, and possible additional future state and federal legislation. The trend resulting from past legislation has been to expand competition in the telecommunications industry. It is imperative to HickoryTech that competition in this industry remain open on an equal basis to all providers. HickoryTech has chosen to participate in the competitive trend and enhance its growth by establishing its Communications Services Sector.

 

FORWARD-LOOKING STATEMENTS

 

This Form 10-K Annual Report, Management’s Discussion and Analysis and other sections of this Annual Report contain forward-looking statements that are based on current expectations, estimates and projections about the industry in which HickoryTech operates and management’s beliefs and assumptions. HickoryTech is developing several internal growth businesses, including its Communications Services Sector, its Wireless Services Sector and its SuiteSolution product in the Information Solutions Sector, and in this Form 10-K is making certain forward-looking statements about these growth businesses. Such forward-looking statements are subject to uncertainties that could cause HickoryTech’s future actual results to differ materially from such statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and probabilities, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements, whether as a result of new information, future events or otherwise.  Factors that might cause such a difference include, but are not limited to, those contained in this Item 1, “Management’s Discussion and Analysis” in Item 7 and Exhibit 99, which is incorporated herein by reference.  You are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date on which they were made. Except as otherwise required by law, HickoryTech undertakes no obligation to update any of its forward-looking statements for any reason.

 

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Item 2.       Properties.

 

HickoryTech’s business is primarily focused on the provision of services and its properties are used for administrative support and to store and safeguard equipment.  At December 31, 2001, HickoryTech’s gross property, plant and equipment of $231,675,000 consisted primarily of telephone switches, cable and network equipment. HickoryTech owns or leases the telephone property, plant and equipment which it utilizes to operate its telephone systems. The three telephone subsidiaries of HickoryTech in Minnesota and Iowa own central telephone offices with related real estate in all of the communities they serve. HickoryTech’s Telephone and Communications Services Sectors own the telephone network, including telephone outside plant, fiber-optic cable and central office equipment, over which they provide services to their customers. HickoryTech’s Wireless Services Sector owns the switches and cellular/PCS radio equipment which provides its unique wireless network. It is the opinion of HickoryTech’s management that the properties of HickoryTech are suitable and adequate to provide modern and effective telecommunications services within its service areas, including both local and long distance service. The capacity for furnishing these services both currently and in the future are under ongoing review by HickoryTech’s engineering staff. Facilities are placed in full use after installation and appropriate testing under the guidance associated with multi-year capital expenditure plans.

 

HickoryTech’s principal properties are the following:

 

(1)               MCTC’s general offices and principal central office exchange building are located in downtown Mankato, Minnesota.  This facility is owned by MCTC and is a three-level brick and stone building containing approximately 60,000 square feet of floor space.  Portions of this building are leased to HickoryTech for its general offices and to NIBI for its data processing equipment.

 

(2)               MCTC’s main warehouse is located in Mankato, Minnesota.  The warehouse, built in 1996, is owned by MCTC and is a two-story concrete building containing approximately 48,000 square feet.  The warehouse is used to store vehicles and supplies and is also used as office space for engineering and outside telephone personnel.

 

(3)               Heartland’s main central office equipment is located in a one-story brick structure owned by Heartland in Rock Rapids, Iowa containing approximately 1,500 square feet. Heartland also leases general office space in Rock Valley, Iowa.

 

(4)               Crystal leases office space in Mankato, Minnesota and West Des Moines, Iowa.

 

(5)               MSWC leases office space in Mankato, Minnesota for cellular switch equipment and administration. MSWC also leases and owns various cellular and PCS tower sites through southern Minnesota and the Minneapolis/St. Paul metropolitan area.

 

(6)               NIBI owns a three-story building in Mankato, Minnesota containing approximately 17,000 square feet.

 

(7)               Collins leases building and warehouse space in Roseville, Minnesota.

 

Item 3.       Legal Proceedings.

 

There is no material pending legal or governmental proceedings directly involving HickoryTech or its subsidiaries, other than ordinary routine litigation or ordinary routine utility matters, incidental to the business of HickoryTech and its subsidiaries.

 

Item 4.       Submission of Matters to a Vote of Security Holders.

 

No matters were submitted to a vote of security holders during the fourth quarter of the fiscal year covered by this 2001 Annual Report on Form 10-K.

 

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PART II

 

Item 5.       Market for Registrant’s Common Equity and Related Stockholder Matters.

 

The common stock of HickoryTech is traded on The Nasdaq National Market under the symbol “HTCO”.

 

The following table sets forth for the period indicated, the high and low closing sales price of the common stock.

 

					High				Low			End of Qtr.
	2001		4th Quarter		$		19.0000		$	14.8000		$	16.9500
			3rd Quarter		$		18.4000		$	14.5100		$	16.3000
			2nd Quarter		$		16.0000		$	13.5000		$	16.0000
			1st Quarter		$		20.8125		$	12.1875		$	14.8750
	2000		4th Quarter		$	23.0000			$	18.3750		$	20.5000
			3rd Quarter		$	22.2500			$	13.7500		$	22.2500
			2nd Quarter		$	15.5000			$	11.9375		$	12.1875
			1st Quarter		$	15.0000			$	12.9375		$	14.0000

 

As of February 28, 2002, there were approximately 3,339 holders of record of common stock, registered and in street name accounts.

 

HickoryTech has declared quarterly dividends on its common stock of $0.11 per share during the two years ended December 31, 2001. A quarterly cash dividend of $0.11 per share will be paid on March 5, 2002 to stockholders of record at the close of business on February 15, 2002.

 

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Item 6.       Selected Financial Data.

 

		2001			2000			1999			1998			1997
		(Dollars in Thousands, Except Per Share Amounts)
FOR THE YEAR:
Operating Revenues (A)
Telephone		$	55,167		$	52,662		$	49,178		$	47,934		$	42,982
Communications Services		11,197			7,944			4,170			2,094			–
Wireless Services		17,655			18,899			16,897			7,993			–
Information Solutions		4,085			4,287			4,368			7,962			9,474
Enterprise Solutions