UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED September 30, 2004
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO
Commission file number 0-13721
HICKORY TECH CORPORATION
(Exact name of registrant as specified in its charter)
|
Minnesota |
41-1524393 |
|
(State or other jurisdiction of |
(I.R.S. Employer |
|
incorporation or organization) |
Identification No.) |
221 East
Hickory Street
Mankato, Minnesota 56002-3248
(Address of principal executive offices and zip code)
(800) 326-5789
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
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 September 30, 2004: 13,012,133.
HICKORY TECH CORPORATION
September 30, 2004
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
|
For Three Months Ended |
|
For Nine Months Ended |
|
||||||||
|
(In Thousands Except Per Share Amounts) |
|
9/30/2004 |
|
9/30/2003 |
|
9/30/2004 |
|
9/30/2003 |
|
||||
|
OPERATING REVENUES: |
|
|
|
|
|
|
|
|
|
||||
|
Telecom Sector |
|
$ |
18,918 |
|
$ |
18,810 |
|
$ |
57,191 |
|
$ |
56,058 |
|
|
Information Solutions Sector |
|
574 |
|
702 |
|
2,219 |
|
2,609 |
|
||||
|
Enterprise Solutions Sector |
|
2,685 |
|
3,565 |
|
8,318 |
|
10,859 |
|
||||
|
TOTAL OPERATING REVENUES |
|
22,177 |
|
23,077 |
|
67,728 |
|
69,526 |
|
||||
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
||||
|
Cost of Products Sold, Enterprise Solutions |
|
1,855 |
|
2,606 |
|
5,660 |
|
7,675 |
|
||||
|
Cost of Services, excluding Depreciation and Amortization |
|
8,378 |
|
8,708 |
|
24,857 |
|
24,977 |
|
||||
|
Selling, General and Administrative Expenses, excluding Depreciation and Amortization |
|
3,490 |
|
2,767 |
|
10,772 |
|
10,263 |
|
||||
|
Depreciation |
|
3,912 |
|
3,780 |
|
11,669 |
|
11,013 |
|
||||
|
Amortization of Intangibles |
|
237 |
|
236 |
|
710 |
|
761 |
|
||||
|
TOTAL COSTS AND EXPENSES |
|
17,872 |
|
18,097 |
|
53,668 |
|
54,689 |
|
||||
|
OPERATING INCOME |
|
4,305 |
|
4,980 |
|
14,060 |
|
14,837 |
|
||||
|
OTHER INCOME/(EXPENSE): |
|
|
|
|
|
|
|
|
|
||||
|
Equity in Net Income/(Loss) of Investees |
|
— |
|
1 |
|
— |
|
(4 |
) |
||||
|
Interest and Other Income |
|
10 |
|
10 |
|
44 |
|
33 |
|
||||
|
Interest Expense |
|
(1,121 |
) |
(1,579 |
) |
(3,448 |
) |
(4,624 |
) |
||||
|
TOTAL OTHER INCOME/(EXPENSE) |
|
(1,111 |
) |
(1,568 |
) |
(3,404 |
) |
(4,595 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
INCOME BEFORE INCOME TAXES |
|
3,194 |
|
3,412 |
|
10,656 |
|
10,242 |
|
||||
|
INCOME TAX PROVISION |
|
1,292 |
|
1,395 |
|
4,310 |
|
4,186 |
|
||||
|
INCOME FROM CONTINUING OPERATIONS |
|
1,902 |
|
2,017 |
|
6,346 |
|
6,056 |
|
||||
|
DISCONTINUED OPERATIONS (Note 4) |
|
|
|
|
|
|
|
|
|
||||
|
Loss from Operations of Discontinued Component |
|
(26 |
) |
(24,873 |
) |
(125 |
) |
(23,487 |
) |
||||
|
Income Tax Benefit |
|
(11 |
) |
(2,783 |
) |
(51 |
) |
(2,215 |
) |
||||
|
LOSS FROM DISCONTINUED OPERATIONS |
|
(15 |
) |
(22,090 |
) |
(74 |
) |
(21,272 |
) |
||||
|
NET INCOME/(LOSS) |
|
$ |
1,887 |
|
$ |
(20,073 |
) |
$ |
6,272 |
|
$ |
(15,216 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic Earnings Per Share - Continuing Operations: |
|
$ |
0.15 |
|
$ |
0.14 |
|
$ |
0.49 |
|
$ |
0.43 |
|
|
Basic Earnings Per Share - Discontinued Operations: |
|
— |
|
(1.58 |
) |
(0.01 |
) |
(1.52 |
) |
||||
|
|
|
$ |
0.15 |
|
$ |
(1.44 |
) |
$ |
0.48 |
|
$ |
(1.09 |
) |
|
Dividends Per Share |
|
$ |
0.11 |
|
$ |
0.11 |
|
$ |
0.33 |
|
$ |
0.33 |
|
|
Basic Weighted Average Common Shares Outstanding |
|
12,991 |
|
13,974 |
|
12,978 |
|
13,973 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Diluted Earnings Per Share - Continuing Operations: |
|
$ |
0.15 |
|
$ |
0.14 |
|
$ |
0.49 |
|
$ |
0.43 |
|
|
Diluted Earnings Per Share - Discontinued Operations: |
|
— |
|
(1.58 |
) |
(0.01 |
) |
(1.52 |
) |
||||
|
|
|
$ |
0.15 |
|
$ |
(1.44 |
) |
$ |
0.48 |
|
$ |
(1.09 |
) |
|
Diluted Weighted Average Common and Equivalent Shares Outstanding |
|
13,016 |
|
14,024 |
|
13,008 |
|
14,031 |
|
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The accompanying notes are an integral part of the consolidated financial statements.
1
HICKORY TECH CORPORATION
September 30, 2004
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
|
(In Thousands Except Share and Per Share Amounts) |
|
9/30/2004 |
|
12/31/2003 |
|
||
|
ASSETS |
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