UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) |
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OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended March 31, 2005 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR |
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15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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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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incorporation or organization) |
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Identification No.) |
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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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Name of Exchange |
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Class |
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On Which Registered |
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Outstanding at April 30, 2005 |
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Common Stock, par value |
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American Stock Exchange |
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3,767,511 |
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HECTOR COMMUNICATIONS CORPORATION AND SUBSIDIARIES
INDEX
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Item 1. Financial Statements |
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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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March 31 |
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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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$ |
21,575,280 |
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$ |
19,980,506 |
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Construction fund |
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5,425,342 |
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3,944,684 |
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Accounts receivable, net |
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2,205,785 |
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3,017,569 |
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Materials, supplies and inventories |
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812,136 |
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820,081 |
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Other current assets |
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144,085 |
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250,276 |
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Total current assets |
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30,162,628 |
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28,013,116 |
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Property, plant and equipment |
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101,052,447 |
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100,921,511 |
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less accumulated depreciation |
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(62,499,398 |
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(60,881,018 |
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Net property, plant and equipment |
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38,553,049 |
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40,040,493 |
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Other assets: |
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Excess of cost over net assets acquired |
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30,921,094 |
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30,921,094 |
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Investment in Midwest Wireless Holdings, LLC |
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15,990,252 |
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15,380,543 |
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Investment in other unconsolidated affiliates |
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3,264,818 |
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3,304,726 |
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Other investments |
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7,581,441 |
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6,880,549 |
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Other assets |
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371,724 |
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382,322 |
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Total other assets |
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58,129,329 |
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56,869,234 |
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Total Assets |
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$ |
126,845,006 |
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$ |
124,922,843 |
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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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$ |
6,652,000 |
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$ |
6,352,000 |
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Accounts payable |
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1,835,557 |
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2,072,722 |
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Accrued expenses |
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1,994,566 |
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1,936,188 |
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Income taxes payable |
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850,323 |
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51,701 |
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Total current liabilities |
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11,332,446 |
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10,412,611 |
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Long-term debt, less current portion |
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53,842,643 |
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54,084,480 |
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Deferred investment tax credits |
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3,117 |
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3,340 |
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Deferred income taxes |
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5,455,303 |
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5,460,554 |
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Deferred compensation |
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746,200 |
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749,128 |
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Stockholders’ Equity |
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55,465,297 |
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54,212,730 |
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Total Liabilities and Stockholders’ Equity |
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$ |
126,845,006 |
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$ |
124,922,843 |
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See the notes to the consolidated financial statements.
3
HECTOR COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
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Three Months Ended March 31 |
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2005 |
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2004 |
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Revenues: |
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Local network |
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$ |
1,427,164 |
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$ |
1,492,851 |
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Network access |
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3,718,411 |
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4,013,613 |
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Nonregulated services: |
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Video services |
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782,943 |
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818,253 |
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Internet services |
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903,664 |
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741,148 |
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Other nonregulated services |
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816,815 |
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