UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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(Mark One) |
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QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) |
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For the quarterly period ended September 30, 2003 |
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OR |
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR |
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For the transition period from to
Commission File Number: 001-13891
HECTOR COMMUNICATIONS CORPORATION
(Exact name of registrant as specified in its charter)
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MINNESOTA |
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41-1666660 |
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(State or other jurisdiction of |
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(Federal Employer |
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211 South Main Street, Hector, MN |
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55342 |
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(Address of principal executive offices) |
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(Zip Code) |
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(320) 848-6611 |
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Registrant’s telephone number, including area code |
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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 a check mark whether the registrant is an accelerated filer (as defined by Rule 12b-2 of the Act). YES o NO ý
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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CLASS |
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Outstanding at October 31, 2003 |
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Common Stock, par value |
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3,504,989 |
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$.01 per share |
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Total Pages (27)
HECTOR COMMUNICATIONS CORPORATION AND SUBSIDIARIES
INDEX
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. Quantitative and Qualitative Disclosures About Market Risk |
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2
HECTOR COMMUNICATIONS CORPORATION AND SUBSIDIARIES
(unaudited)
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September 30 |
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December 31 |
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Assets: |
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Current assets: |
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Cash and cash equivalents |
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$ |
15,565,965 |
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$ |
12,020,186 |
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Construction fund |
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3,633,473 |
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662,232 |
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Accounts receivable, net |
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3,675,895 |
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4,819,174 |
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Materials, supplies and inventories |
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1,210,808 |
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1,175,587 |
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Other current assets |
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431,785 |
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231,685 |
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Total current assets |
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24,517,926 |
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18,908,864 |
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Property, plant and equipment |
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97,599,291 |
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115,546,596 |
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less accumulated depreciation |
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(53,587,902 |
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(58,880,798 |
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Net property, plant and equipment |
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44,011,389 |
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56,665,798 |
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Other assets: |
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Excess of cost over net assets acquired, net |
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31,691,927 |
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49,074,993 |
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Investment in Midwest Wireless Holdings, LLC |
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13,352,542 |
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16,232,707 |
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Investment in other unconsolidated affiliates |
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2,664,125 |
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4,373,597 |
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Other investments |
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6,444,798 |
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8,818,502 |
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Other assets |
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438,103 |
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411,499 |
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Total other assets |
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54,591,495 |
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78,911,298 |
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Total Assets |
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$ |
123,120,810 |
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$ |
154,485,960 |
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Liabilities and Stockholders’ Equity: |
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Current liabilities: |
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Notes payable and current portion of long-term debt |
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$ |
6,127,300 |
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$ |
7,364,600 |
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Accounts payable |
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1,644,320 |
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2,523,878 |
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Accrued expenses |
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2,609,823 |
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2,422,986 |
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Income taxes payable |
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714,263 |
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879,417 |
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Total current liabilities |
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11,095,706 |
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13,190,881 |
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Long-term debt, less current portion |
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59,640,204 |
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75,147,560 |
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Deferred investment tax credits |
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13,637 |
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27,554 |
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Deferred income taxes |
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4,989,225 |
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5,866,754 |
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Deferred compensation |
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651,389 |
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976,179 |
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Minority stockholders interest in Alliance Telecommunications Corp. |
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17,027,697 |
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Stockholders’ Equity |
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46,730,649 |
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42,249,335 |
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Total Liabilities and Stockholders’ Equity |
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$ |
123,120,810 |
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$ |
154,485,960 |
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See notes to consolidated financial statements.
3
HECTOR COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
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Three Months Ended September 30 |
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Nine Months Ended September 30 |
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2003 |
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2002 |
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2003 |
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2002 |
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Revenues from continuing operations: |
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Local network |
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$ |
1,575,132 |
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$ |
1,525,318 |
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$ |
4,585,055 |
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$ |
4,433,293 |
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Network access |
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3,999,965 |
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4,319,127 |
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12,088,907 |
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11,635,319 |
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Video services |
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860,123 |
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959,921 |
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2,733,620 |
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2,742,782 |
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Internet services |
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699,862 |
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502,956 |
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