UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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FOR THE QUARTERLY PERIOD ENDED March 31, 2003 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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FOR THE TRANSITION PERIOD FROM TO |
Commission file number 0-13721
HICKORY TECH CORPORATION
(Exact name of registrant as specified in its charter)
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Minnesota |
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41-1524393 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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incorporation or organization) |
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Identification No.) |
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221 East Hickory Street |
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Mankato, Minnesota 56002-3248 |
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(Address of principal executive offices and zip code) |
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(800) 326-5789 |
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(Registrant’s telephone number, including area code) |
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(Former name, former address and former fiscal year, if changed since last report) |
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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 (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 ý No o
Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
The total number of shares of the registrant’s common stock outstanding as of March 31, 2003: 13,998,182.
HICKORY TECH CORPORATION
March 31, 2003
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
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For Three Months Ended |
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(In Thousands Except Per Share Amounts) |
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3/31/2003 |
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3/31/2002 |
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OPERATING REVENUES: |
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Telecom Sector |
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21,961 |
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20,717 |
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Information Solutions Sector |
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1,098 |
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1,034 |
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Enterprise Solutions Sector |
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3,911 |
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3,361 |
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TOTAL OPERATING REVENUES |
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26,970 |
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25,112 |
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COSTS AND EXPENSES: |
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Cost of Sales, Enterprise Solutions |
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2,519 |
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2,184 |
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Operating Expenses, excluding Depreciation and Amortization |
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14,436 |
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13,286 |
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Depreciation |
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4,162 |
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3,813 |
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Amortization of Intangibles |
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326 |
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361 |
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TOTAL COSTS AND EXPENSES |
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21,443 |
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19,644 |
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OPERATING INCOME |
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5,527 |
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5,468 |
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OTHER INCOME (EXPENSE): |
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Equity in Net Loss of Investees |
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(3 |
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(19 |
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Interest and Other Income |
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10 |
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43 |
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Interest Expense |
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(1,565 |
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(1,956 |
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TOTAL OTHER INCOME (EXPENSE) |
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(1,558 |
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(1,932 |
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INCOME BEFORE INCOME TAXES |
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3,969 |
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3,536 |
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INCOME TAXES |
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1,622 |
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1,446 |
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NET INCOME |
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$ |
2,347 |
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$ |
2,090 |
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Basic Earnings Per Share |
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$ |
0.17 |
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$ |
0.15 |
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Dividends Per Share |
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$ |
0.11 |
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$ |
0.11 |
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Weighted Average Common Shares Outstanding |
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13,994 |
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13,961 |
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Diluted Earnings Per Share |
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$ |
0.17 |
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$ |
0.15 |
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Weighted Average Common and Equivalent Shares Outstanding |
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14,007 |
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14,063 |
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The accompanying notes are an integral part of the consolidated financial statements.
1
HICKORY TECH CORPORATION
March 31, 2003
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
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(In Thousands Except Share and Per Share Amounts) |
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3/31/2003 |
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12/31/2002 |
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ASSETS |
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CURRENT ASSETS: |
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Cash and Cash Equivalents |
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$ |
2,111 |
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$ |
1,874 |
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Receivables, Net of Allowance for Doubtful Accounts of $1,263 and $1,358 |
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11,048 |
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11,056 |
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Income Taxes Receivable |
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— |
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3,222 |
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Costs in Excess of Billings on Contracts |
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1,687 |
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2,107 |
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Inventories |
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4,928 |
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5,059 |
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Deferred Income Taxes |
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951 |
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951 |
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Other |
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2,479 |
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2,840 |
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TOTAL CURRENT ASSETS |
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23,204 |
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27,109 |
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INVESTMENTS |
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6,742 |
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10,517 |
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PROPERTY, PLANT AND EQUIPMENT |
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248,969 |
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247,375 |
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Less ACCUMULATED DEPRECIATION |
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115,180 |
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111,101 |
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PROPERTY, PLANT AND EQUIPMENT, NET |
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133,789 |
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136,274 |
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OTHER ASSETS: |
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Goodwill |
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25,086 |
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25,086 |
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Intangible Assets, Net |
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34,608 |
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34,669 |
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Deferred Costs and Other |
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6,127 |
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6,556 |
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TOTAL OTHER ASSETS |
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65,821 |
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66,311 |
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TOTAL ASSETS |
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$ |
229,556 |
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$ |
240,211 |
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LIABILITIES & SHAREHOLDERS’ EQUITY |
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CURRENT LIABILITIES: |
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Accounts Payable |
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$ |
3,297 |
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$ |
4,543 |
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Accrued Expenses |
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3,211 |
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3,719 |
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Accrued Interest |
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479 |
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512 |
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Billings in Excess of Costs on Contracts |
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139 |
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80 |
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Advanced Billings and Deposits |
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3,738 |
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3,741 |
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Current Maturities of Long-Term Obligations |
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1,405 |
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1,441 |
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TOTAL CURRENT LIABILITIES |
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12,269 |
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14,036 |
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LONG-TERM OBLIGATIONS, Net of Current Maturities |
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147,740 |
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157,599 |
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DEFERRED INCOME TAXES |
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4,377 |
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4,377 |
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